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HomeMy WebLinkAbout05-12 RESOLUTIONRESOLUTION NO. 05-12 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENT FOR 2012 WHEN RECEIVED 11\1 THE ESTIMATED AMOUNT OF $589,066.00. 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 $589,066.00 for 2012 when received, with allocation proposed as follows: ➢ Administration $109,757 ➢ Housing Rehabilitation $320,101 ➢ Redevelopment $43,208 ➢ CASA of NWA $10,000 ➢ Community Clinic -St. Francis $10,000 ➢ LifeSource $20,000 ➢ Washington Reg. Med. Foundation $5,000 ➢ Transportation $26,000 ➢ Life Styles $30,000 ➢ YRCC $15,000 PASSED and APPROVED this 3`a day of January, 2012. APPROVED: ATTEST: 6.611441-- SONDRA E. SMITH, City Clerk/Treasurer ��►`��C'\;�� Y Cid= :r(��y',. • ▪ [j• • n • FAYETT EVI I_LE s ° if' ,Nn ; 6 Yolanda Fields Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 1/3/2012 City Council Meeting Date Agenda Items Only Community Services Division Action Required: Development Services Department Approval of the 2012 Action Plan and the Mayor's authority to execute the 2012 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 Community Services Remaining Balance Fund Name Budget Adjustment Attached .tjL cam• Vie -1N Department Director Date Date Finance and Internal Services Director Date Date /1.r0f Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office Ulf Eia Received in Mayor's Office Staff recommends approval of the 2012 Action Plan and the Mayor's authority to execute the 2012 CDBG Agreement upon reciept. Revised January 15, 2009 adv e idle THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE ARKANSAS www.accessfayetteville.org CITY COUNCIL AGENDA MEMO To: City Council Thru: Jeremy Pate, Dir. Community Development 3 From: Yolanda Fields, Dir. Community Sery Date: December 7, 2011 Subject: 2012 Community Development Block Grant (CDBG) PROPOSAL: 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 formula allocation process awards CDBG funding to the City of Fayetteville. Each year the Community Services Division submits a Consolidated Action Plan to the U.S. Department and Urban Development (HUD) outlining the proposed uses of CDBG funding. If HUD approves the Action Plan a CDBG Agreement for that year is received. This Agreement must be executed, returned to the HUD Field Office in Little Rock and then sent to HUD in Washington D.C. for the release of funds. Grant amounts vary each year dependent upon the funding levels authorized by Congress through the annual federal budget process. The estimated award for 2012 is $589,066. The grant funding detail submitted to HUD in the 2012 Consolidated Action Plan is: Administration $109,757 Housing Rehabilitation $320,101 Redevelopment $ 43,208 CASA bf NWA $ 10,000 Community Clinic — St Francis $ 10,000 LifeSource $ 20,000 Wash. Reg. Med. Foundation $ 5,000 Transportation $ 26,000 Life Styles $ 30,000 YRCC $ 15,000 $589,066 THE CITY OF FAYETTEVILLE, ARKANSAS Approving the 2012 Action Plan and the Mayor's authority to execute the 2012 CDBG Agreement upon receipt will reduce the waiting time for HUD to release the funds. This will allow for quicker start up of both internal and external programs to assist low and moderate income residents in Fayetteville. Any change in the awarded funding amount will be presented to the Council. RECOMMENDATION: Staff recommends that the 2012 Action Plan be approved and that authority be given to the Mayor to execute the 2012 Community Development Block Grant (CDBG) Agreement upon receipt. BUDGET IMPACT: 2012 estimated CDBG grant revenue - $589,066. RESOLUTION NO. A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENT FOR 2012 WHEN RECEIVED IN THE ESTIMATED AMOUNT OF $589,066.00. 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 $589,066.00 for 2012 when received, with allocation proposed as follows: > Administration $109,757 > Housing Rehabilitation $320,101 ➢ Redevelopment $43,208 > CASA of NWA $10,000 > Community Clinic -St. Francis $10,000 > LifeSource $20,000 > Washington Reg. Med. Foundation $5,000 ➢ Transportation $26,000 > Life Styles $30,000 ➢ YRCC $15,000 PASSED and APPROVED this 3rd day of January, 2012. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer aye evllle Community Development Block Grant 2012 Action Plan Community Services Division Helping to Build a Better Community Community Services Division rM 008:. rector fl Street file Arkansas 72701 z.., ' Phone 479 575 8260 Fax 479 444 3445 community_resources@ci.fayettevilie.ar.us Table of Contents Form 424 Introduction 1 Consolidated Action Plan 2 Institutional Structure and Coordination 4 Community Profile 5 Housing 1 Community Development Needs 6 Available Resources 11 Public Access 1 Participation ............ 11 Analysis of Impediments to Fair Housing 12 Section 3 12 One -Year Action Plan 13 Administration 14 Housing Services 14 Redevelopment Program 14 Public Services 15 Public Facilities 16 Monitoring 17 Appendices A: Certifications B: Published Notices C: Citizen Participation Plan D: Project Listing E: Maps F: Comments G: Tables OMB Number: 4040-0004 Expiration Date: 03/31/2012 Application for Federal Assistance SF -424 *1. Type of Submission: Preapplication Application * 2. Type of Application: " If Revision, select appropriate letter(s): 43 New " Other (Specify) la Application Continuation Ell Changed/Corrected El Revision ' 3. Date Received: 4. Applicant Identifier: B -12 -MC -0001 5a. Federal Entity Identifier: * 5b. Federal Award Identifier: State Use Only: 6. Date Received by 7. State Application Identifier: State: 8. APPLICANT INFORMATION: * a. Legal Name: City of Fayetteville * b. Employer/Taxpayer Identification Number (EIN/TIN): 71-6018462 * c. Organizational DUNS: 141-310578 d. Address: • Streets: Street2: ' City: County: ' State: Province: 'Country: ' Zip / Postal Code: 113 W Mountain Fayetteville Washington AR USA: UNITED STATES 72701 e. Organizational Unit: Department Name: Division Name: Development Services Department Community Services Division f. Name and contact information of person to be contacted on matters involving this application: Prefix: Middle Name: * Last Name: Suffix: Ms. * First Name: Yolanda Fields Title: [Community Services Director Organizational Affiliation: * Telephone Number:479-575-8290 Fax Number: 479444-3445 * Email: yfields@ci.fayetteville.ar.us Application for Federal Assistance SF -424 9. Type of Applicant 1: Select Applicant Type: C. City or Township Government Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: " Other (specify): * 10. Name of Federal Agency: U.S. Department of Housing and Urban Development 11. Catalog of Federal Domestic Assistance Number: 14.218 CFDA Title: Community Development Block Grant/Entitlement Grant " 12. Funding Opportunity Number: 1 • Title: 13. Competition Identification Number: Title: 14. Areas Affected by Protect (Cities, Counties, States, etc.): Fayetteville AR " 15. Descriptive Title of Applicant's Project: Community Development Block Grant/Entitlement City Attach supporting documents as specified in agency instructions. Application for Federal Assistance SF -424 16. Congressional " a. Applicant Districts Of: AR -003 * b. Program/Project AR -003 Attach an additional list of Program/Project Congressional Districts if needed. 17. Proposed a. Start Date' Project: 01/01/2012 " b. End Date: 12/31/2012 18. Estimated Funding ($): ' a. Federal $ 589,066.00 ' b. Applicant - c. State • d. Local • e. Other ' f. Program Income ' g. TOTAL $ 589,066.00 * 19. Is Application a. This application Subject to Review By State Under Executive Order 12372 Process? was made available to the State under the Executive Order 12372 Process for review on is subject to E.O. 12372 but has not been selected by the State for review. is not covered by E.O. 12372. • b. Program 0 c. Program * 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes", provide explanation.) Applicant Federal Debt Delinquency Explanation Yes / No 21. *By signing herein are true, comply with any subject me to this application, I certify (1) to the statements contained In the list of certifications** and (2) that the statements complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may criminal, civil, or administrative penalties. (U.S. Code, Title 218, Section 1001) and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency i ** I AGREE ** The list of certifications specific instructions. Authorized Representative: Prefix: Middle Name: * Last Name: Suffix: Mr *First Name: Lioneld [Jordan ` Title: Mayor * Telephone Number: 479-575-8331 Fax Number: 479-444-3445 ' Emit: Ijordan(nici.fayetteville.ar.us * Signature of Authorized Representative: �� - *Date Signed: /0. 6 %/ Application for Federal Assistance SF -424 * Applicant Federal Debt Delinquency Explanation The following field should contain an explanation if the Applicant organization is delinquent on any Federal Debt. Maximum number of characters that can be entered is 4,000. Try and avoid extra spaces and carriage returns to maximize the availability of space. 2012 Action Plan 1 Introduction This document serves as the City of Fayetteville's One -Year Consolidated Action Plan Submission for the use of 2012 Community Development Block Grant (CDBG) Program funds. The Action Plan describes how the City will address the priority needs and specific objectives identified in the five-year strategy outlined in the City of Fayetteville's 2011-2015 Five -Year Consolidated Plan. The One -Year Action Plan is a component of the Five -Year 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 27th and 31st 2011 with published notices that the City was holding a mandatory subrecipient grant application workshop and accepting applications for GY2012 CDBG program funding. This notice of funding, in combination with the public hearing held on October 6, 2011, allowed agencies and interested citizens the opportunity to express concerns and share community needs. The public hearing announcement is included in Appendix B of this document. Following the application submission period, 19 funding requests were received and reviewed by staff and the members of the grant prioritization committee. Applications were reviewed for compliance with application requirements. Proposed projects were also evaluated for fit with City Council adopted local community development objectives and consistency with the priorities and objectives contained in the 2011-2015 Consolidated Plan. CDBG funded activities must qualify by meeting at least one of the three national objectives: benefit low- and moderate -income individuals, prevent or eliminate blight and slums or meet urgent community development needs 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 Northwest Arkansas Times on September 21 and 25, 2011. It was also published in the weekly papers The Fayetteville Free Weekly and La Prensa Libre (in Spanish) for the week of September 26, 2011. These public notices provided the start and end dates of the 30 -day public comment period; as well as the date, time and location for the public hearing. In addition, the public notices advised the general public of two locations that the proposed 2012 One -Year Action Plan was available for their review and comments. In addition to the public notices, Community Services issued a press release and published an announcement on City's website (www.accessfayetteville.org) newsfeed including a link to the Action Plan draft. The draft One -Year Action Plan was then discussed at a public hearing held on October 6, 2011. Page 1 2012 Action Plan In order to receive its annual CDBG funding, the City of Fayetteville must develop and submit to the Department of Housing and Urban Development (HUD) its Consolidated Action Plan. This plan is the City's comprehensive planning document and application. In the Consolidated Action Plan, the City identifies its goals for CDBG programs, which also serve as the criteria 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 include all local residents interested in community development to help identify the needs of the community and formulate strategies for addressing those needs. The concept behind the Consolidated Action Plan is to: • Enable a community to view HUD programs not as isolated tools to solve narrow functional problems, but rather as an invitation to embrace a comprehensive vision of housing and community development; • Create a comprehensive vision which includes affordable housing, fair housing, transportation, economic development and 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 homelessness to permanent housing; • Improve program accountability and support results oriented management by establishing clear priority needs and goals; providing more timely and readable information on needs, goals and proposed 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 outreach; • Partner with the local Public Housing Authority in comprehensive planning efforts to revitalize distressed 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 (51 percent to 80 percent of median income) income persons and households. Page 2 2012 Action Plan In addition, the goals are intended to meet the following three federal statutory objectives: PROVIDE DECENT HOUSING I 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 standard 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 independence; 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 facilities 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; 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 micro 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 carrying 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 2012 Action Plan Institutional Structure & Coordination INSTITUTIONAL STRUCTURE and COORDINATION Federal regulations require CDBG recipients to establish a common program year and identify a single lead agency to prepare and submit the Consolidated Action Plan. The task of preparing this Plan is assigned to the City of Fayetteville's Community Services Division. Annually, Community Services 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 suitable living environment, and sustained economic health. The Community Services Division has been in contact with an extensive network of governmental and non-profit agencies in developing this plan. Notices of funding availability were published 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, levels of commitment, capacity, productivity and understanding of the issue. The Community Services Division will continue working with the various organizations as it implements the provisions of the 2012 One -Year Action Plan. Staff also maintains relationships with state and federal partners and agencies to better link services to our targeted population. Community Services staff has assumed leadership and support roles with the Northwest Arkansas Housing Coalition, League of United Latin American Citizens and the Hispanic Women's Organization. Community Services has also developed strong ties with the University of Arkansas including the following departments: Off Campus Connections, the Multicultural Center and the office of International Students and Scholars. Page 4 2012 Action Plan Community Profile COMMUNITY PROFILE The City of Fayetteville is the county seat of Washington County and is located in the northwestern part of Arkansas. Washington County is the third most populous county in Arkansas and one of the fastest growing. 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 73,580 according to the 2010 census. The city is the third most populous in Arkansas and currently encompasses 35,454 acres (55.39 square miles). The 2010 census found that there were 73,580 people, 30,726 households and 7,076 families with children residing within the city. The 2010 census numbers reflect increases from the 2000 census. They show a 21 % increase in the number of people, 23% increase in households and a 8% increase in the number of families with children. There are 36,188 housing units; this is an increase in housing units of 30% between the 2000 census and the 2010 census. The racial makeup of the city is 83.8% White, 6% African American, 1.1% American Indian/Alaska Native, 3.1 % Asian, 0.2% Native Hawaiian/Pacific Islander, 2.8% Other, 3% Identified by two or more races. The 2010 census showed that 6.4% of the community was Hispanic or Latino. The age distribution in the City was 18.5% under the age of 18, 26.1% from 18 to 24, 34.6% from 25 to 49, 12.8% from 50 to 64, and 8% were 65 years of age or older. The 2010 census did not update the median income information therefore the following is utilizing information from the 2010 American Community Survey 1 -Year Estimates. The median income for a household in the city is $32,908, and the median income for a family was $52,158. The per capita income for the city was $22,501. 28.6% of the population and 14.4% of families were below the poverty line. Page 5 2012 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 continues to be a topic of great concern for this division. Housing costs in Northwest Arkansas have increased at a consider- able 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 Arkansas 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 installing a wheel- chair ramp with concrete landing, new siding, replacing flood damaged drywall in the utility room, replace damaged water spigot and repair of a leaking HVAC unit. REHABILITATION The City of Fayetteville has been helping homeowners with rehabilitation of their homes for approximately 32 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 a loan and typically have the greatest amount of deferred maintenance. The chart on the following page reflects the income levels of program participants from January 2011 - September 2011. Page 6 2012 Action Plan Housing & Community Development Needs Housing Projects Completed 1 Income Limits According to the U.S. Census Bureau approximately 7,722 homes were built prior to 1978 in the City of Fayetteville. Any rehabilitation activities of more than $5,000 on homes constructed prior to 1978 will have Lead -Based Paint (LBP) testing done and actions taken to remove any identified hazards. Lead- based paint hazards consist of any condition that causes exposure to lead. To date in 2011, the program identified no homes in the housing rehabilitation program with LBP concerns. Anytime that homes are identified as having LBP issues those hazards are corrected. The 2010 Census reported 5,752 residents over the age of 65 in the City of Fayetteville. Homeowners in this age group are generally on a fixed income and often cannot afford to make any repairs on their homes or address making their homes energy efficient. The housing rehab program addresses both Lead -Based Paint issues and making the home energy efficient which can allow the homeowners to remain in the home longer than expected. The races of the households are 7 (78%) White, 1 (11%) African American and 1 (11%) American Indian. The following charts reflect the statistics on the participants that have been assisted in the first nine months of 2011. We have provided rehabilitation to 9 homes from January - September 2011. Housing Projects Completed 1 Head of Household SinglelNonElderly Elderly/62+ Related/Single Parent Related/Two Parents Ohm' Page 7 1 2012 Action Plan Housing & Community Development Needs 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Housing Projects Completed I Sex of Household Male Female PUBLIC SERVICES 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 Transportation Program has two components and provides assistance to LMI, disabled and/or elderly members of our community. The Transit Program provides qualifying LMI residents with bus passes through a partnership with Ozark Regional Transit to supplement their ability to get to appointments, jobs, etc. The Taxi Program provides supplemental transportation for elderly and/or disabled residents of Fayetteville in hopes of allowing them greater self-sufficiency. The Public Services component also includes the CDBG Subrecipient Grant Program which allows local nonprofits to apply for funding through a competitive grant application process. PUBLIC FACILITIES CDBG has historically supported Community Services Public Facilities projects in Fayetteville. CDBG dollars have assisted with construction, renovation and development of facilities for local non-profit organizations such as Fayetteville Public Library, Life Styles, LifeSource International and the Yvonne Richardson Community Center Page 8 2012 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- and moderate -income homeowners in the Target Area who are physically or financially unable to correct code violations. Thus, in 2004, the Redevelopment Program was established for the Target Area to assist in cleaning and revitalizing the deteriorating neighborhood. According to the 2010 American Community Survey 1 -Year Estimates, 15.4% of the population makes less than $10,000; 9.1 % make $10,000 to $14,999; 17.4% make $15,000 to $24,999; 11.2% make $25,000 to $34,999; 11% make $35,000 to $49,999; 13.4% make $50,000 to $74,999; 8% make $75,000 to $99,999; 8.6% make $100,000 to $149,999; 3.4% make $150,000 to $199,999 and 2.4% make $200,000 or more. The Target Area is located in southeast Fayetteville which continues to be comprised of mainly low- and moderate -income residents. With a high percentage making less than $25,000 a year, it is evident that residents will often not have the resources to correct code violations on their property. Currently there are 23 active cases in the Target Area. The Redevelopment Program assists residents with correcting code violations without creating additional economic strain. From January 2011 - September 2011, we have successfully assisted 4 households. The following charts provide statistics on the participants that were assisted. Redevelopment Projects Completed 1 Income Limits Page 9