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HomeMy WebLinkAbout71-09 RESOLUTIONRESOLUTION NO. 71-09 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENT FOR 2009 IN THE ESTIMATED AMOUNT OF $635,930.00. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor to execute the Community Development Block Grant (CDBG) Agreement in the estimated amount of $635,930.00.00 for 2009, with allocation proposed as follows: Administration Housing Rehabilitation Fayetteville Public Library LifeSource NWAEDD Ozark Guidance Peace at Home YRCC (Services) Taxi Program Transportation Program Code Compliance YouCan! Youth Bridge YRCC (Facilities) PASSED and APPROVED this 7'h day of April, 2009. APPROVED: By: ATTEST: $121,359 $279,998 $3,000 $11,248 $7,604 $5,000 $14,915 $28,233 $11,000 $9,000 $44,573 $15,501 $62,651 $21,848 By: 9t?nd24 SONDRA E. SMITH, City Clerk/Treasurer llll 1111P/fin ):GSYpc•Gp�' • •- ;2.FAYETTEV!LLE' ':,..NGTON °.. ' ,x,,,111111111\\ Yolanda Fields Submitted By City of Fayetteville Staff Review Form April 7 2009 City Council Meeting Date Agenda Items Only Community Services Division Action Required: Development Services Department Approval of Mayor's authority to execute the 2009 Community Development Block Grant (CDBG) Agreement upon receipt. Cost of this request Account Number Project Number Budgeted Item x Category / Project Budget Program Category / Project Name Funds Used to Date Program / Project Category Name Remaining Balance Fund Name Budget Adjustment Attached Finance and Internal Services Director I i f o Staff u.. Mayor 3 - 23 -oq Date sate Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office 4,:cEeFa 301 1 Comments:Staff recommends approval of Mayor's authority to execute the 2009 CDBG agreement. Revised January 15, 2009 CITY COUNCIL AGENDA MEMO To: Mayor and Council Thru: Jeremy Pate, Director of Development Services 6 From: Yolanda Fields, CS Dire Date: March 19, 2009 Subject: 2009 Community Development Block Grant (CDBG) RECOMMENDATION Staff recommends authority be given to the Mayor to execute the 2009 Community Development Block Grant Agreement upon receipt. BACKGROUND Fayetteville has been a Community Development Block Grant (CDBG) Entitlement city since 1975. Funding is based on a formula allocation that takes into account such factors as population, percent of low/moderate income persons, and the number of housing units. This process sets aside CDBG for the City of Fayetteville each year the Community Resources Division submits an annual "Action Plan" outlining the proposed used for the funds to the U.S. Department of Housing & Urban Development (HUD) for CDBG funding. If the Action Plan meets HUD requirements an agreement is received. This agreement must be executed, returned to the HUD field office in Little Rock then sent to Washington D.C. for the release of funds. Grant amounts vary each year dependent upon funding levels authorized by Congress through the annual federal budget process. The estimated award for 2009 is $635,930.00 Grant funding detail: Administration $121,359 .1liousing Rehabilitation $279,998 tiza yetteville Public Library $ 3,000 ItifeSource $ 11,248 NWAEDD $ 7,604 Ozark Guidance . $ 5,000 Peace at Home $ 14,915 Parks & Recreation(YRCC) $ 28,233 Taxi Program $ 11,000 4$ T nsportation Program 9,000 de Compliance $ 44,573 ouCan! $ 15,501 Youth Bridge $ 62,651 Parks & Recreation(YRCC) $ 21,848 Grant Total $635,930 DISCUSSION The timeliness in returning the CDBG agreement will reduce the waiting time in starting the both internal and external program to assist the low-to-moderate income residents of our community. Any change in the funding amount will be presented to Council. BUDGET IMPACT 2009 estimated grant revenue - $635,930. RESOLUTION NO. A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENT FOR 2009 IN THE ESTIMATED AMOUNT OF $635,930.00. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS• Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor to execute the Community Development Block Grant (CDBG) Agreement in the estimated amount of $635,930.00.00 for 2009, with allocation proposed as follows: ➢ Administration $121,359 ➢ Housing Rehabilitation $279,998 ➢ Fayetteville Public Library $3,000 ➢ LifeSource $11,248 ➢ NWAEDD $7,604 ➢ Ozark Guidance $5,000 ➢ Peace at Home $14,915 ➢ YRCC (Services) $28,233 ➢ Taxi Program $11,000 ➢ Transportation Program $9,000 ➢ Code Compliance $44,573 ➢ YouCan! $15,501 ➢ Youth Bridge $62,651 ➢ YRCC (Facilities) $21,848 PASSED and APPROVED this 7th day of April, 2009. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer Wttev!lle. Community Development Block Grant 2009 Action Plan Community Resources Division Helping to Build a Better Community Community Re'sourccsiDivislon • GF.M': • ei:4% • ommumly He^o:rrcos',recto: Mountain Sime! • C yottovile Arkansas 12101 ijPhone 479 575 8260 Fax 479 444 3445 community_resources @ci.fayetteville.ar.us Table of Contents 1.111tar Form 424 Introduction 1 Consolidated Action Plan 2 Community profile 5 Housing I Community Development Needs 6 Available Resources 11 Public Access Participation 11 Analysis of Impediments to Fair Housing 12 One -Year Action Plan 13 Administration 14 Housing Services 14 Redevelopment Program 14 Public Services 15 Public Facilities 16 Monitoring Program 17 . Appendices A: Certification B: Public Hearing Announcement C: Citizen Participation Plan D: Listing of Projects E: Maps F: Comments G: Tables 2009 Consolidated Action Plan I Introduction This document serves as the City of Fayetteville's Consolidated Plan Submission of the 2009 One -Year Action Plan for the use of the Community Development Block Grant (CDBG) Program funds. The Action II Plan describes how the City will address the priority needs and specific objectives identified in the Five - Year strategy of the City of Fayetteville's 2005-2009 Consolidated Plan. The One -Year Action Plan is a component of the Consolidated Plan that is updated annually to reflect resource allocation changes. The planning process for the development of this One -Year Action Plan began on July 22, July 25, and July 27, 2008, with published notice providing notification that the City was accepting applications for 2009 CDBG program funding. This notice of funding, in combination with the public hearing held on Oc- tober 2, 2008, allowed agencies and interested citizens the opportunity to express concerns and com- munity needs. The public hearing announcement is included in Appendix B of this document. Following the application submission period, 17 funding requests were received and reviewed by staff and the members of the selection committee. Applications were reviewed for compliance application requirements. Council adopted local community development objectives and consistency with the priori- ties and objectives contained in the 2005-2009 Consolidated Plan. CDBG funded activities must qualify by meeting one of the three national objectives: benefit low -and -moderate income individuals, prevent or eliminate blight and slums or meet urgent community development that pose a serious and immediate threat to the health or welfare of the community. In addition, each application was assessed for project readiness, financial leverage and other relevant concerns. A summary of the proposed uses of CDBG funds recommended by staff was published in The North- west Arkansas Times on September 24 and 28, 2008. This public notice marked the start of the 30 -day public comment period. In addition, the public notice advised the general public of three locations that the proposed 2009 One -Year Action Plan was available for their review. The draft One -Year Action Plan was then discussed at a public hearing held on October 2, 2008. Page 1 2009 Consolidated Action Plan In order to receive its annual CDBG funding, the City of Fayetteville must develop and submit to the De- partment of Housing and Urban Development (HUD) its Consolidated Plan. This plan is the City's com- prehensive planning document and application. In the Consolidated Plan, the City identifies its goals for CDBG programs, which also serve as the crite- ria against which HUD will evaluate the City's performance in carrying out its goals. The Consolidated Plan promotes a comprehensive approach to local decisions by requiring cities to pull together all local residents interested in community development to help identify the needs of the community and formu- late strategies for addressing those needs. The concept behind the Consolidated Plan is to: • Enable a community to view HUD programs not as isolated tools to solve narrow functional prob- lems, but rather as an invitation to embrace a comprehensive vision of housing and community de- velopment; • Create a comprehensive vision which includes affordable housing, fair housing, transportation, eco- nomic development, community rehabilitation; • Enable communities to apply this comprehensive approach in helping the homeless in a continuum of care, a comprehensive system for moving individuals and families from homeless to permanent housing; • Improve program accountability and support results -oriented management by establishing clear pri- ority needs and goals; providing more timely and readable information on needs, goals, and pro- posed projects to citizens; providing measurable indicators of progress; and reporting on progress against these measures; • Facilitate citizen involvement and commitment in the planning process by increased community out- reach; • Partner with the local Public Housing Authority in comprehensive planning efforts to revitalize dis- tressed neighborhoods and help low-income residents; • Integrate efforts to identify and take measures to overcome impediments to fair housing, which is an integral part of comprehensive planning efforts. The programs covered by the Consolidated Plan all have in common the characteristic that expenditures must primarily benefit extremely low (0 to 30 percent of median income), very low (31 percent to 50 percent of median income), and low-income (51 percent to 80 percent of median income) persons and households. Page 2 2009 Consolidated Action Plan 111 In addition, they are intended to meet the following three federal statutory objectives: PROVIDE DECENT HOUSING 1 which includes: assisting homeless persons obtain affordable housing; assisting persons at risk of becoming homeless; retention of affordable housing stock; increase the availability of affordable permanent housing in stan- dard condition to low income and moderate income families, particularly to members of disadvantaged minorities without discrimination on the basis of race, color, religion, sex, national origin, familial status, or disability; increasing the supply of supportive housing which includes structural features and services to enable persons with special needs (including persons with HIV/AIDS) to live in dignity and independ- ence; and providing affordable housing that is accessible to job opportunities. PROVIDE A SUITABLE LIVING ENVIRONMENT 1 which includes: improving the safety and livability of neighborhoods; increasing access to quality public and private facili- ties and services; reducing the isolation of income groups within areas through spatial de -concentration of housing opportunities for lower income persons and the revitalization of deteriorating neighborhoods; 1 restoring and preserving properties of special historic, architectural, or aesthetic value; and conservation of energy resources. EXPAND ECONOMIC OPPORTUNITIES 1 which includes: job creation and retention; establishment, stabilization and expansion of small businesses (including mi- cro businesses); the provision of public services concerned with employment; the provision of jobs to low-income persons living in areas affected by those programs and activities, or jobs resulting from car- rying out activities under programs covered by the plan; availability of mortgage financing for low income persons at reasonable rates using non discriminatory lending practices; access to capital and credit for development activities that promote the long term economic and social viability of the community; and empowerment and self sufficiency for low income persons to reduce generational poverty in federally assisted housing and public housing. Page 3 2009 Consolidated Action Plan Institutional Structure & Coordination 1 INSTITUTIONAL STRUCTURE and COORDINATION Federal regulations require recipients to establish a common program year and identify a single lead agency to prepare and submit the Plan. The task of preparing this Plan is assigned to the City of Fa- yetteville's Community Resources Division (CRD). Annually, CRD prepares the One -Year Action Plan as an update to the Five -Year Consolidated Plan. The division addresses the various housing needs and strategies of the City of Fayetteville and administers the City's CDBG Program. It also functions as a program and services delivery -unit to help address the community's needs for decent housing, a suit- able living environment, and sustained economic health. The Community Resources Division has been in contact with an extensive network of governmental and non-profit agencies in preparation for the writing of this plan Notices of funding availability were pub- lished in the local newspaper. The delivery and financing of affordable/attainable housing involves organizations and participants from public agencies, businesses and private institutions, non -profits and community based organizations. The roles and responsibilities of the participants will vary depending on the project, required resources, leadership, and levels of commitment, capacity, productivity and understanding of the issue. The Com- munity Resources Division plans to continue working with the various organizations as it implements the provisions of the 2009 One -Year Action Plan and the 2005-2009 Consolidated Plan. Staff also maintains relationships with state and federal partners and agencies to better link services to I our targeted population. CRD staff has assumed leadership and support roles with the Northwest Ar- kansas Housing Coalition, League of United'Latin American Citizens, New Arkansas Resource Network Advisory Committee, and the City of Fayetteville Housing Task Force. Page 4 2009 Consolidated Action Plan Community Profile Mir rw- COMMUNITY PROFILE The City of Fayetteville, county seat of Washington County, is located in the northwestern part of Arkan- sas. Washington County is the second most populous county in Arkansas and one of the fastest grow- ing. Fayetteville is situated at the foothills of the Ozark Mountains. Fayetteville is the southernmost city in metropolitan Northwest Arkansas and is located approximately 185 miles northwest of Little Rock, Arkansas, 125 miles east of Tulsa Oklahoma, 350 miles northeast of Dallas, Texas, and 210 miles south of Kansas City, Missouri. Fayetteville and the Northwest Arkansas region have gained a national reputation as one of the best places in the country to live and raise a family. The City and the region are experiencing rapid population growth and an increasing number of visitors. Fayetteville's population has increased from approximately 20,000 in 1960 to 58,047 according to the 2000 census. A special census completed in June of 2006 showed the population to be 67,158. The city is the third most populous in Arkansas, and currently encompasses 34,153 acres. As of the 2000 census, there were 58,047 people, 23,789 households, and 12,136 families residing within the city. The population density was 1,336.6/mi. There were 25,467 housing units at an average density of 586.4/mi. The racial makeup of the city was 86.50% White, 5.11% African American, 1.26% Native American, 2.56% Asian, 0.16% Pacific Islander, 1.99% from other races, 2.42% from two or more • races and 4.86% Hispanic or Latino of any race. In the city the population was spread out with 19.9% under the age of 18, 25.7% from 18 to 24, 29.9% from 25 to 44, 15.8% from 45 to 64, and 8.7% were 65 years of age or older. The median income for a household in the city was $31,345, and the median income for a family was $45,074. The per capita income for the city was $18,311. 19.9% of the population and 11.4% of families were below the poverty line. Page 5 2009 Consolidated Action Plan Housing & Community Development Needs HOUSING & COMMUNITY DEVELOPMENT NEEDS HOUSING The City of Fayetteville is committed to the development of programs which address the need for housing for Low and Moderate Income (LMI) persons and families. In response to priority needs revealed during the development of the City's five year Consolidated Plan in 2005, the City has focused on developing community partnerships with local entities with expertise in specialized housing activities. This cooperation will further the Attainable Housing effort in the City of Fayetteville. Attainable housing has become a topic of great concern for this division. Housing costs in Northwest Arkansas have increased at a considerable rate throughout the past 10 years according to the latest information from the 2000 Census. The cost of the median mortgage payment in the City of Fayetteville remains the highest in Northwest Arkansas at $916, an increase of 45 percent. It is the highest median mortgage payment of any city in Northwest Ar- kansas and 24 percent higher than the state median, of $737. This home received housing rehabilitation with Community Development Block Grant funds. The moderate rehabilitation consisted of an upgrade in electrical, plumbing, and installation of new HVAC unit; removal and replacement of windows and doors; removal and replacement of all rotting and damaged soffit and fascia; replacement of porch ceiling; addressing of all lead-based paint issues; and painting of exterior surface. REHABILITATION The City of Fayetteville has been helping homeowners with rehabilitation of their homes for approximately 30 years. The funding has allowed homeowners to stay in their homes, and the improvements to their homes have acted as a catalyst for other, high quality renovations and new construction of housing in the project area. The majority of recipients have been very low income and or elderly households. These owners have little or no funds available to repay the loan and typically have the greatest amount of de- ferred maintenance. The chart below reflects the income levels from January 2008 - September 2008. Page 6 2009 Consolidated Action Plan Housing & Community Development Needs 9 8 7 6 5 4 3 2 1 0 Housing Projects Completed 1 Income Limits 0-30% 30-50% 50-60% 60-80% According to the U.S. Census Bureau approximately 7,722 homes were built prior to 1978 in the City of Fayetteville. Any rehabilitation activities on homes constructed prior to 1978 will have lead hazards iden- tified and actions taken to remove the hazard. Lead-based paint hazards consist of any condition that causes exposure to lead. In 2008, the program conducted 8 Lead -Based Paint tests and removed haz- ards from the homes that tested positive. Along with the Lead Based Paint need the U.S. Census Bureau reports that there are approximately 5,038 residents over the age of 65 in the City of Fayetteville. These homeowners are generally on a fixed income and cannot afford to make any repairs on their homes or address making their homes energy effi- cient. The program addresses both Lead -Based Paint issues and making the home energy efficient to allow the homeowners to remain in their homes for up to 10 years longer than expected. The charts be- low reflect the statistics on the participants that have been assisted in the past nine months of 2008. We have provided rehabilitation to 21 homes from January—September 2008. 12 10 Housing Projects Completed 1 Head of Household Sing elNonfderly Bderly/fit+ RelaledlSingle Parent Related/Tvo Parents clher Page 7 2009 Consolidated Action Plan Housing & Community Development Needs 111 11 10.8 10.6 10.4 10.2 10 9.8 9.6 9.4 • Housing Projects Completed 1 Sex of Household Male PUBLIC SERVICES Female Utilization of CDBG funds for the provision of public services, which serve LMI groups, has been, and continues to be a focus of the Community Development Program. The Taxi Voucher program provides subsidized cab fare for our city's elder citizens, allowing an inexpensive transportation choice for many who would not have transportation available otherwise. This simple, cost effective program receives unwavering support from those who use it to go shopping, to the doctor, post office, church, out to eat, or any number of other destinations. The program is hugely successful in providing our elders opportu- nity to participate in community life and to live independently. PUBLIC FACILITIES CDBG has historically supported community services facilities projects in Fayetteville. CDBG dollars have assisted construction, renovation and development of facilities for local non-profit organizations such as Seven Hills Homeless Center, Head Start, Yvonne Richardson Center, YouCan!, and Peace at Home Family Shelter, as well as renovations and improvements to streets, sidewalks and other infra- structure located in the designated target area. Page 8 2009 Consolidated Action Plan Housing & Community Development Needs REDEVELOPMENT In 1992, a neighborhood within a low -to -moderate -income area of Fayetteville was designated as the Target Area. Prior to the creation of the program, Code Compliance efforts were placing an additional economic strain on the low -to -moderate income Homeowners in the Target Area who are physically or financially unable to correct code violations. Thus in 2004, the Redevelopment Program was estab- lished for the Target Area to assist in cleaning and revitalizing the deteriorating neighborhood. According to the Community Sourcebook of Zip Code Demographics, 37.2% of the population makes less than $25,000; 26.0% make $25,000 to $49,000; 24.3% make $50,000 to $99,000; 8.0% make $100,000 to $149,000; and 4.6% make $150,000 or more. The Target Area is located within the 72701 zip code area which is comprised of mainly low -to -moderate -income residents. With a great percentage making less than $25,000 a year it is evident that residents will not have the resources to correct code violations on their property. Currently there are 41 active cases and 56 ser- vice requests in the Target Area Without the assistance of the Redevelopment Program, residents would be placed under more economic strain. From January 2008 - September 2008, we have successfully assisted eight households. The charts below demonstrate the statistics on the participants that were assisted. 5 4.5 4 35 3 2.5 2 1.5 Redevelopment Projects Completed 1 Income Limits 30% E tremely Low 50% Very Low 80"/ Low -Moderate 100% Median Page 9 111 tE 2009 Consolidated Action Plan Housing & Community Development Needs Redevelopment Projects Completed I Head of Household a7 3.5 73 2.5 2 / 1.5 1 0.5� 0 Single / Non - elderly • Elderly / 62 & Related / Single above parent Related / Tw o parent Other Redevelopment Projects Completed I Work Performed o Oat back tree limbs ■ Removed junk and debris ❑ Mowed grass and w eeds o Other As a way to reach out to more residents in the Target Area, the Redevelopment Program took a turn and changed its tactics to educate the residents of the Target Area The Redevelopment Officer is now dedi- cating three days a week to meet with residents and local organizations. The goal is to not only to edu- cate the public on the city ordinances and the program, but also to develop more relationships to further the efforts of the program. Page 10 ' Ins 2009 Consolidated Action Plan Available Resources & Public Access 1 Participation AVAILABLE RESOURCES FEDERAL I STATE The City is the recipient of a formula grant program, the Community Development Block Grant. Private non-profit organizations in Fayetteville are funded through competitive state and fed- eral allocations, the local United Way campaign, private foundation grants, other special competitive grants, and private donations including fund-raising activities. The City anticipates the CDBG formula allo- cation in 2009 will be approximately $635,930. MUNICIPAL GOVERNMENT The City's Street Division has estimated $366,346 for street overlay and repair of streets located in the designated Community Development Target Area The City's Budget Divi- sion has budgeted a balance of $0.00 for the maintenance of city -owned buildings occupied by area non- profit agencies performing public service activities. PUBLIC ACCESS & PARTICIPATION CDBG Activities are designed and carried out based on local needs. Through public meetings, consulta- tion with area public and non-profit service agencies, informal discussion with citizens, studies, city staff, and special purpose committees, input from community stakeholders and resource holders are integrated to designate action priorities. One formal public hearing was held to present and discuss proposed CDBG activities for fiscal year 2009. Non-profit agency representatives and others attended the meeting. Community Development staff have been active in the presentation of program information. In addition, the development of a quarterly newsletter serves to inform the community of current and future projects Program literature in Spanish is also available in the office. Staff continues to be very active in : the Northwest Arkansas Housing Coalition. In accordance with Fayetteville's Citizen Participation Plan, the 2009 Consolidated Action Plan is submit- ted for a 30 day citizen review period. Page 11 liglas 2009 Consolidated Action Plan Analysis of Impediments to Further Fair Housing ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING The Analysis of Impediments to Fair Housing (Al) was updated in 2005. CDBG Program regulations require recipient jurisdictions to "affirmatively further fair housing," required by Section 808 of the Fair Housing Act. The Al is conceived as an effort to affirmatively further fair housing choice by identifying all impediments to fair housing choice which presently exist in the community, and to develop strategies and actions de- signed to reduce or eliminate the identified impediments. Further, the Al will foster the collaboration of stakeholders and resource providers in the public, non-profit, and private sectors, thereby promoting relationship -building and consensus on fair housing issues. The Al process will help describe a clearer picture of housing conditions for LMI households in Fayetteville, and aid us in defining current and future housing directions. The current Al identified three areas of action: • Further development of the Attainable Housing Element that provides methods of enhancing attain- able housing by providing a multi -faceted policy. • Encouragement of continuing education/outreach in the realtor/developer community, and local newspapers and other publications on fair housing. • Enhancement of local fair housing ordinance. Action development in these areas will be the purview of the administration program. Page 12 2009 One Year Action Plan ONE-YEAR ACTION PLAN 2009 SUMMARY I USE OF FUNDS The One -Year Action Plan for the 2009 program year illustrates the various programs, listings of projects and descriptions that will be implemented and funded under the CDBG federal program. Comments regarding the 2009 Action Plan can be sent to: City of Fayetteville Community Resources Division 113 W. Mountain Street Fayetteville, AR 72701 Attention: Yolanda Fields Title I of the Housing and Community Development Act of 1974 (Public Law 93-383) created the CDBG Program. Re -authorized in 1990 as part of the Cranston -Gonzalez National Affordable Housing Act, local communities can use the resources of the CDBG Program to develop flexible, locally designed community development strategies to address the program's national objectives of: 1. Providing benefits to low and moderate income persons; 2. Eliminating slums and blight; and 3. Meeting an urgent community need. Within the framework of these national objectives, the City of Fayetteville has also established the fol- lowing local community development objectives: 1. Housing and neighborhood preservation; • 2. Economic development through job enhancement; 3. Public facilities and improvements limited to the support of objectives 1 and 2; 4. Elimination of blight and blighting elements limited to the support of objectives 1 and 2; and 5. Special programs offering significant community benefit and in direct support of 1 and 2. Page 13