R-2014-058 2014-06-09RESOLUTION NO. R2014-58
A Resolution of the City Council of the City of Pearland, Texas,
approving the U. S. Department of Housing and Urban Development
Community Development Block Grant Program Projects for program
year 2014 and fiscal year 2015.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Projects for the Community Development Block Grant
Program Annual Action Plan, attached hereto as Exhibit "A", are hereby authorized and
approved.
PASSED, APPROVED and ADOPTED this the 9th day of June, A.D., 2014.
ATTEST:
APPROVED AS TO FORM:
%
DARRIN M. COKER
CITY ATTORNEY
Ta40
TOM REID
MAYOR
AGENDA REQUEST
BUSINESS OF THE CITY COUNCIL
CITY OF PEARLAND, TEXAS
AGENDA OF: June 9, 2014 ITEM NO.: Resolution No. R2014-58
DATE SUBMITTED: May 21, 2014 DEPT. OF ORIGIN: Finance
PREPARED BY: Joel Hardy PRESENTOR: Joel Hardy
REVIEWED BY: Clay Pearson REVIEW DATE: 6/5/14
SUBJECT: CDBG Plan Year 2014-2015 Projects — Allocation Recommendations
EXHIBITS: A. HUD CDBG PY14 Allocations
B. City-wide map of eligible area -benefit census block groups and projects
C. Code enforcement activity map
D. Map of proposed AC Waterline replacements
E. Table of Proposed CDBG PY 2014 Projects and Activities
F. Local Housing Concerns — Pictures
G. Code Enforcement/Housing Rehab Draft Table of Guidelines
H. Title 24 CFR 570-202: Eligible Activities
I. R2014-58
FUNDING: Grant ■Developer/Other •Cash
•Bonds To Be Sold •Bonds- Sold ■ L/P — Sold ■ L/P — To Be Sold
EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: $313,794
AMOUNT AVAILABLE: $459,056 PROJECT NO.:
ACCOUNT NO.: Fund 112 and Re -allocations from Fund 110
ADDITIONAL APPROPRIATION REQUIRED: Yes
ACCOUNT NO.:
PROJECT NO.:
To be completed by Department:
X Finance X Legal Ordinance X Resolution
EXECUTIVE SUMMARY
BACKGROUND
The City has been allocated $313,794 from U.S. Department of Housing & Urban
Development — Community Planning and Development (CPD) for the Community
Development Block Grant program for FY 2014-2015; CPD Program Year 2014. This is
$19,459 lower than the current year's allocation amount of $333,253. CDBG funding
allocation amounts are formula -based and determining factors include population, income
levels, and other demographics.
HUD restricts the use of these funds, allowing up to 15% of the total for social services
programs and no more than 20% for planning and administration, leaving the remainder for
infrastructure, public facilities, code enforcement and/or housing. However, it is not required
that budgets meet these caps, only that they not be exceeded in the areas of public
services and program administration.
Local agencies submitted applications requesting FY 2015 CDBG funding in May of this year
and City staff assessed the eligibility and feasibility of several capital improvements based
on the requirement that they be located in areas that serve low -moderate income Pearland
residents based on Census data and income levels.
The Pearland Neighborhood Center and Forgotten Angels Foundation submitted requests
for funding in the public services and infrastructure/improvements categories, respectively.
PNC requested $20,000 for continuation of its emergency rental/utility assistance program
and Forgotten Angels has requested $58,000 for the purchase of a new transportation
vehicle for its clients.
City departments are proposing to utilize a share of the funding for code enforcement in
eligible low -moderate income census block groups and minor rehabilitation and repairs of
single family owner -occupied residences of low -moderate income citizens in Pearland. A
total of $145,262 from prior years' unspent funds is being recommended for re -allocation to
increase capacity of the proposed single family housing rehab program, as well as to replace
approximately 2,200 linear feet of AC Waterlines in low -moderate income census block
groups in Pearland.
Staff also recommends that the City continue to budget for the use of the 20% allowable
portion of the allocation amount for program administration ($62,758) with the remaining for
the following infrastructure/facility improvement projects:
RECOMMENDATIONS
The planning team for developing recommendations for presentation to the City's
management team consisted of directors and staff from Public Works, Finance, Capital
Projects & Engineering, Community Development, Parks & Recreation, and
Health/Environmental Services. Application reviews, cost -analyses, feasibility, scope of
work, and eligibility assessments were conducted by the group during the month of April, and
program/project priorities presented to the City Manager on May 19th. The following priorities
are being recommended for approval by Council, and would subsequently appear in the
City's 8th Annual Action Plan to be submitted to HUD in August.
• $62,758 for Administration of the CDBG Program
• $20,000 for local public services activities (Pearland Neighborhood Center)
• $49,039 for time and effort (staff) associated with code enforcement activities
• $21,016 for time and effort (staff) associated with single family housing rehab
program activities
• $160,981 for single family housing rehab direct costs (housing rehab activities)
Total of $313,794 FY2014-2015 Plann Allocation
The City will also re -allocate prior year funding from CDBG Program Year 2012 to
accomplish the following activities:
• $77,259 to replace approximately 2,200 linear feet of AC Waterlines in Old Townsite
area
• $68,003 for additional capacity for single family housing rehab direct costs (housing
rehab activities)
In total, the expenditure of PY 2014 allocations of $313,794 and PY 2012 re -allocation of
$145,262 will give the City a total of $459,056 for the aforementioned projects.
A Public Hearing will be conducted in the month of June during the required 30 -day public
comment period scheduled to begin on June 17th and end July 18th. The PY'14 CDBG
Action Plan will be submitted to Council for final approval, and must be submitted to HUD
no Tater than August 15, 2014.
SCOPE OF CONTRACT/AGREEMENT
The CDBG PY 2014 contract between the City and HUD will be for one year beginning
October 1, 2014 and ending September 30, 2015, and will only restrict the use of program
administration and public services funds for that period of performance.
Infrastructure/improvement monies unspent for code enforcement and single family housing
rehab activities, as well as those associated with the replacement of AC Waterlines, may be
carried over and used in following years as such projects may take longer to complete or all
rehabilitation activities may not meet available funding.
BID AND AWARD
The award/allocation from HUD will be $313,794 for PY 2014 and will be issued to the City
upon the successful completion, and subsequent HUD approval, of the City's Annual Action
Plan. This plan will include overall objectives for administrative, public services and
infrastructure activities, including our efforts to continue affirmatively furthering fair housing.
The plans are due to HUD on August 15, 2014 and are on the proper course and timeline
for completion, Council approval, and submission to HUD.
POLICY/GOAL CONSIDERATION
HUD National Objectives to serve low -moderate income communities and reduce poverty
are met by completing these projects. The City's citizens benefit by having improved public
services, infrastructure, and efforts that affirmatively further fair housing.
PLANNING ACTIVITIES
While the traditional elements of the CDBG Program were planned for in the same manner
prior year activities and expenditures were proposed, the new Code Enforcement and
Single Family Housing Rehabilitation Program (SFHRP) elements of the CDBG Program
were approached more comprehensively. Staff representatives from Community
Development, Finance, Capital Projects, and Public Works, with Parks/Recreation and
Engineering being informed as updates warranted the need to do so, put forth efforts to
investigate other surrounding cities' practices, researched HUD policies and procedures,
and assessed the successes and challenges other communities faced delivering these
types of services.
Community Development and Finance Department staff visited Missouri City and met with
their program management team to discuss their approaches to delivering Code
Enforcement and SFHRP activities with CDBG funding. City of Pearland CDBG consultant
Peg Purser of MKP Consulting was present at the meeting, as she also represents Missouri
City in a similar capacity. The group walked away with sample policies and procedures and
an improved grasp of the pros and cons associated with the program.
Staff is currently engaged in the development of the City's 8th CDBG Annual Action Plan
and has conducted several internal meetings with all relevant departments to gather the
expertise needed to shape Pearland's Code Enforcement and SFHRP program. The results
include a draft of policies and procedures, a proper schedule of allocation amounts and
program delivery costs, and 50% completion of the public/citizen participation process
required to obtain HUD approval for the proposed expenditure plan.
Six planning meetings, one on-site visit to a neighboring jurisdiction, completing a draft of
the program policies and procedures, three "desk reviews" of other surrounding cities'
programs (Baytown, Pasadena, Waco), a "windshield inspection" of homes in the City that
represent a clear need for rehabilitation/improvement, and regular engagement with HUD
officials and our contract consultant for technical assistance with the program design, have
all been conducted to -date and used to establish the basic elements of our program
parameters. Ultimately, directors from Community Development, Finance, Capital Projects,
and Public Works, with leadership from the Assistant City Managers Jon Branson and Mike
Hodge, were able to propose recommended program elements to City Manager Clay
Pearson and with the intent to present them to Council for approval.
The remaining 50% of activities needed to finalize local and HUD approval for these
projects will involve Council's approval to move forward with the inclusion of these projects
in the City's Action Plan, completion of the Action Plan, hosting a second public hearing and
30 day comment period, bringing the final version of the City's Action Plan back to Council
for approval in late -July, and finally submitting the City's 8th CDBG Annual Action Plan to
HUD prior to August 15tH
GUIDELINES
A table has been provided that provides a draft overview of the Code Enforcement and
Single Family Housing Rehabilitation Program guidelines (Attachment G). These come from
staff reviews of generally -accepted program characteristics as described by HUD,
surrounding jurisdiction's programs, and some elements of our own experiences as a
recipient and overseer of CDBG Local Entitlement Jurisdiction Program funding. As Council
acts on this current request, the planning team will continue to make improvements and
adjustments to the design so as to complete the full scope of policies and procedures
needed to implement the program in the second quarter of fiscal year 2015. Applications,
certifications, contracts and other documents that will be used to administer the program
can be further developed for completion following Council's approval for taking the CDBG
program in this proposed new direction. According to these Guidelines, rehabilitation
activities can be provided at a maximum amount of $15,000 per home, but with higher
amounts available for properties that are in an emergency state or that are uninhabitable or
unsuitable for living conditions.
The overall City of Pearland CDBG Program would continue to be administered through the
Finance Department, but the specific activities involving Code Enforcement and Single
Family Housing Rehabilitation Program would be handled day-to-day by the Community
Development Department through the proposed "Community Revitalization Program
Coordinator." Training, technical assistance, and overall professional development needed
to grow staff experience in handling this type of venture can be accessed via HUD, National
Community Development Association, MKP Consulting, surrounding cities, and other
entities that provide such assistance/expertise. The City's Grants Coordinator has provided
substantive program oversight for the past five years and has a strong grasp of the
regulatory, financial management, and programmatic requirements of the Community
Development Block Grant program.
While Section 3 of the Housing and Community Development Act is applicable (hiring local
low -moderate income workers when needed to perform construction) to the Single Family
Housing Rehabilitation Program, Davis -Bacon Act, Contract Work Hours Safety Standards
Act, and others are expected to be excluded from our obligations to HUD.
ATTACHMENTS
In addition to the Agenda Request, the backup documentation for this agenda item includes:
1. HUD's published local entitlement jurisdiction funding allocations for Pearland, and
surrounding areas for information purposes only.
2. A city-wide map of the sections of Pearland that are eligible for locating area -benefit
projects such as code enforcement, housing rehabilitation, drainage, sidewalk, and
other infrastructure improvements.
3. A map of recent code enforcement activity that demonstrates the potential coverage
area for the CDBG-funded code enforcement efforts and single housing
rehabilitation activities.
4. A map locating the segment of AC Waterlines being proposed for replacement with
Program Year 2012 CDBG funds.
5. A table with the list of projects and activities being proposed for implementation in
Program Year 2014, with funds from PY 2014 and re -allocated funds from PY 2012.
6. Local Housing Concerns — Pictures.
7. Code Enforcement/Housing Rehab Draft Table of Guidelines.
8. Title 24 CFR 570-202: Eligible Activities.
RECOMMENDED ACTION
Council consideration and approval of a resolution approving these projects presented
herein to be included in the CDBG PY14/FY15 Annual Action Plan for the City of Pearland.
Community Planning and Development Program Formula Allocations for FY 2014 Page 1 of 2
HUD > Program Offices > Community Planning and Development > About > CPD Appropriations Budget > Community Planning and Development Program
Formula Allocations for FY 2014
Community Planning and
Development Program Formula
Allocations for FY 2014
The Fiscal Year (FY) 2014 budget for the Department of
Housing and Urban Development has been enacted. These
spreadsheets provide full -year allocations for the Office of
Community Planning and Development's (CPD) formula
programs: Community Development Block Grants (CDBG);
HOME Investment Partnerships (HOME), Housing
Opportunities for Persons with AIDS (HOPWA); and
Emergency Solutions Grants (ESG).
The allocations reflect the level of funding approved for
these programs in your community. The amounts also
reflect approved grant reductions and include any
reallocated funds for the CDBG and HOME programs. Under
the CDBG program, some metropolitan cities have a joint
grant agreement with an urban county to administer their
CDBG grant. The urban county amounts shown in this table
do not include the funds allocated to any metropolitan city.
The metropolitan city and urban county amounts are shown
separately. The HOPWA allocations reflect an adjustment
made on April 14th, 2014 to account for minor changes to
the national data set of cumulative AIDS cases, along with
incidence data, received from the Centers for Disease
Control and Prevention (CDC).
Please note: If you do not have Microsoft Excel available to
view these worksheets, you may download the free Excel
viewer from Microsoft.
http://portal.hud.gov/hudportal/HUD?src=/program offices/comm planning/about/budget/... 5/30/2014
TX-FY14 Allocations
KEY CNSRTKEY NAME STA CDBG14
483612
484068
484080
485202
485346
489039
Missouri City
Pasadena
Pearland
Sugar Land
Texas City
Brazoria County
TX
TX
TX
TX
TX
TX
$330,211
$1,645,056
$313,794
$301,641
$372,450
$1,626,004
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CDBG
Project Projects
Code
Pearland Neighborhood Center's
05Q Emergency Assistance (LMC) - 2335
N. Texas Avenue
Subtotal
033 Water/Sewer Improvements
(Old Townsite AC Waterlines)
Code Enforcement & Rehabilitation
Program Coordination
Single Family Housing Rehab
Subtotal
21 Contract consultants and in-house
A - E staff & expenses
Subtotal
Teal CDBG Expenditures
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CITY OF PEARLAND CDBG COMMUNITY DEVELOPMENT - CODE ENFORCEMENT/HOUSING REHAB DRAFT GUIDELINES
These draft guidelines are the result of the City's review of surrounding tlties' housing rehab and code enforcement programs. Missouri City, Baytown, Pasadena, and Waco Texas were all reviewed, in
conjunction with consultation from CDBG expert Margaret Purser (MKP Consulting) to provide the basic elements of how staffing, application review, eligible activities, and funding allocations occur.
Area
Activity
Methos of Delivery
Funding
Eligibility Conditions
Terms
Timeline
CDBG Community
Development
Activities
Code Enforcement
Community Revitalization Program
Coordinator will administer the Code
$ 49,039
CDBG Matrix Code 15
Oct 2014 - Sept 2015
Single Family Housing Rehab
Enforcement and Single Family
Housing Rehab programs, under the
supervision of the Health &
Environmental Code Enforcement
Officer and Community
Development Director,
$ 21,017
CDBG Matrix Code 14A
519.3556 -
$21.8889/hour
($40,260 -$51,893
per year)
Oct 2014 - Sept 2015
Funding
CDBG
$ 227,355
24 CFR 570.202
CDBG Timely
Spending and
Annual Allocations
Oct -14
Disbursement of
Single Family
Housing Rehab
Funding to Eligible
Households
Providing review and assessments
of applications for Single Family
Housing Rehab Program and
determing award or denial of
funding.Committee structure with
consensus decision-making ability
for allocations below $50,000.
Additional allocation amounts
require Council approval.
Committee will meet during
application review period and
periodically for other purposes.
Community Development Advisory
Committee
N/A
N/A
2 year terms for
non -staff members
and elected
officials
Oct - Nov 2014
Oct- Nov 2014
Oct- Nov 2014
Oct - Nov 2014
Oct- Nov 2014
Oct - Nov 2014
Oct - Nov 2014
Allocations of
Community
Development
Funds
Category 91: Owner/Occupant
Low -Mod Income
Limited Conditional Grant
$4'999 or
less
80% MSA
(max J
1 -Year Depreciable
Lien
Jan 2015 - Sep 2015
Conditional Grant
$5,000 -
$9,999
(max 80% MSA)
Annual income
Inspection w/ 3
Year Depreciable
Jan 2015 - Sep 2015
Forgivable Loan
510,000 -
515,000
(max 80% MSA)Inspection
Annual Income
w/ 5
Year Depreciable
Lien
Jan 2015 - Sep 2015
Category 92: Owner w/ Life
Tenancy Occupied
Forgivable Loan w/ Special
Conditions
Up to
$15,000
Owner must be low/mod
income and 51% of
tenants must be
low/mod income
Jan 2015 - Sep 2015
Category #3: Unsuitable Living
Conditions(Fire
Forgivable Loan
$ 150,000
max 80% MSA w/
Repayment conditions
Sprinkler required
also)
10 -Year
Depreciable Lien
Jan 2015 - Sep 2015
Sewer Hookup Program Category
#1 (short)
Limited Conditional Grant
5200 -
$1,999
max 80% MSA w/
Repayment conditions
No Lien
Jan 2015 - Sep 2015
Sewer Hookup Program Category
#2 Ion
(long)
Conditional Grant
$2,000 -
$5,000
max 80% MSA w/
Repayment conditions
2 Year Depreciable
Lien
Jan 2015 - Sep 2015
Housing Rehab
Labor and Materials for Repairs
option si: lvon-pront oudrecipient
such as 5th Ward Community
oe, ,,,,el,...,..e.,r r,.... l inn n....., c...�
Included in
the cost of
Qualifications,
CompetitiveContract
Bid, Eligible
g' lb
non- r
Agenrepairscy ( P ofit with
experience)
and/or
Subrecipient
Agreement
Jan 2015 - Sep 2015
and Design/Construction
Competitive Bid for Construction or
Home Repair Contractors
§ 570.202 Eligible rehabilitation and preservation activities.
(a) Types of buildings and improvements eligible for rehabilitation assistance. CDBG funds may be used to
finance the rehabilitation of:
(1) Privately owned buildings and improvements for residential purposes; improvements to a single-family
residential property which is also used as a place of business, which are required in order to operate the
business, need not be considered to be rehabilitation of a commercial or industrial building, if the
improvements also provide general benefit to the residential occupants of the building;
(2) Low-income public housing and other publicly owned residential buildings and improvements;
(3) Publicly or privately owned commercial or industrial buildings, except that the rehabilitation of such
buildings owned by a private for-profit business is limited to improvement to the exterior of the building,
abatement of asbestos hazards, lead-based paint hazard evaluation and reduction, and the correction of code
violations;
(4) Nonprofit -owned nonresidential buildings and improvements not eligible under § 570.201(c); and
(5) Manufactured housing when such housing constitutes part of the community's permanent housing stock.
(b) Types of assistance. CDBG funds may be used to fmance the following types of rehabilitation activities,
and related costs, either singly, or in combination, through the use of grants, loans, loan guarantees, interest
supplements, or other means for buildings and improvements described in paragraph (a) of this section, except
that rehabilitation of commercial or industrial buildings is limited as described in paragraph (a)(3) of this
section.
(1) Assistance to private individuals and entities, including profit making and nonprofit organizations, to
acquire for the purpose of rehabilitation, and to rehabilitate properties, for use or resale for residential
purposes;
(2) Labor, materials, and other costs of rehabilitation of properties, including repair directed toward an
accumulation of deferred maintenance, replacement of principal fixtures and components of existing
structures, installation of security devices, including smoke detectors and dead bolt locks, and renovation
through alterations, additions to, or enhancement of existing structures and improvements, abatement of
asbestos hazards (and other contaminants) in buildings and improvements that may be undertaken singly, or in
combination;
(3) Loans for refinancing existing indebtedness secured by a property being rehabilitated with CDBG funds if
such financing is determined by the recipient to be necessary or appropriate to achieve the locality's
community development objectives;
(4) Improvements to increase the efficient use of energy in structures through such means as installation of
storm windows and doors, siding, wall and attic insulation, and conversion, modification, or replacement of
heating and cooling equipment, including the use of solar energy equipment;
(5) Improvements to increase the efficient use of water through such means as water savings faucets and
shower heads and repair of water leaks;
(6) Connection of residential structures to water distribution lines or local sewer collection lines;
(7) For rehabilitation carried out with CDBG funds, costs of:
(i) Initial homeowner warranty premiums;
(ii) Hazard insurance premiums, except where assistance is provided in the form of a grant; and
(iii) Flood insurance premiums for properties covered by the Flood Disaster Protection Act of 1973, pursuant
to § 570.605.
(8) Costs of acquiring tools to be lent to owners, tenants, and others who will use such tools to carry out
rehabilitation;
(9) Rehabilitation services, such as rehabilitation counseling, energy auditing, preparation of work
specifications, loan processing, inspections, and other services related to assisting owners, tenants, contractors,
and other entities, participating or seeking to participate in rehabilitation activities authorized under this
section, under section 312 of the Housing Act of 1964, as amended, under section 810 of the Act, or under
section 17 of the United States Housing Act of 1937;
(10) Assistance for the rehabilitation of housing under section 17 of the United States Housing Act of 1937;
and
(11) Improvements designed to remove material and architectural barriers that restrict the mobility and
accessibility of elderly or severely disabled persons to buildings and improvements eligible for assistance
under paragraph (a) of this section.
(c) Code enforcement Costs incurred for inspection for code violations and enforcement of codes (e.g.,
salaries and related expenses of code enforcement inspectors and legal proceedings, but not including the cost
of correcting the violations) in deteriorating or deteriorated areas when such enforcement together with public
or private improvements, rehabilitation, or services to be provided may be expected to arrest the decline of the
area.
(d) Historic preservation. CDBG funds may be used for the rehabilitation, preservation or restoration of
historic properties, whether publicly or privately owned. Historic properties are those sites or structures that are
either listed in or eligible to be listed in the National Register of Historic Places, listed in a State or local
inventory of historic places, or designated as a State or local landmark or historic district by appropriate law or
ordinance. Historic preservation, however, is not authorized for buildings for the general conduct of
government.
(e) Renovation of closed buildings. CDBG funds may be used to renovate closed buildings, such as closed
school buildings, for use as an eligible public facility or to rehabilitate such buildings for housing.
(f) Lead-based paint activities. Lead-based paint activities pursuant to § 570.608.
[53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 60 FR 1944, Jan. 5, 1995; 60 FR
56911, Nov. 9, 1995; 64 FR 50225, Sept. 15, 1999; 71 FR 30035, May 24, 2006]