Loading...
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 0 Z W O W Z J > Q O1 OH wcn < Z w U 0 0 5 • Q Z < W U E LL U O m < cc 0 CL a. u_ Q0)z LLa— H Z W 10 W 0 a w 0 • • 1 1Lu CD CO • C CI CO • .c � m w E z a0 o= y E M } o NOiQ T LL N 0 d i to C �.... W E o Q -v U • 2 = 2 co o d ? U CY LL Y.e TON: } 1 2j + > / °i! + it o ,. I O-ct-T m } ♦ I. I �/ + 4°oQ; �/+ 7- J % ♦ m%7+ i Fo',../ ----+ //' \ L _ y T T \ O+b-\ \N+ '\ oma/ i• \Od f cg-/; NOIVW ) ��dbj/if 4 /y NIA1V a10 ♦ ( i,1 1/ ▪ � II II I ,,'',F- '% O j �z At. D} of gl >I u~it Qj z w; 41. • I �' + �pk�'#Y } I i ♦ • ♦ w�wj ��w� QI - - - # f z m *g _ , - — — ll — — - + + o 1 0O 7w j D * T + ri, Q I _j ' `� j , I I L11.1 ' L_m I I SNbb313n — t f I 1� ---* 41-I- f 4 +I. t 4 1 — -- j\ Z 'ik- - r I I Q ! ' SONI2idS ,lllOH - i-- -- .\ j — �\ I SONIHdS lOH NNV Allflf I SIIIIN 30V11IA I VONll Community Development Block Grant Projected Use of PY 2014 Funds and Prior Year Re -allocations 44 oF. N cc MI Ci _O L U v .....0 �a O a` CD 0 p $20,000 $77,259 $71,684 m cNi N ^ r,^ nj 03 ` LIZ ...43;‘ $o $77,259* (PY '12) _ MON a $145,262* N "! 1.41. iA- nt .`IN s N 73 Y u _N a a o O N to o O p C t ,� Ocm O oo O tDLo _ M 0 e14 l i CO N AA- $62,758 1 a H eff iiVQ 01 -People: 62 01 -People: 62 01 - People: 1,037 01 -People: 3,733 01 -People: 15 O1 -People: 4,785 Z 01 -People: 4,847 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 Q N O L L .--1 (0 CD aJ 4--+ O CD c- i N O f0 L CO 0 - a n 03 aJ (0C E D C O 0 E v cU c aJ E3 U c u o o L c u L dQJ (0 fd a) y, C L O --0 cu a (o o >- aai O L @ (_0 L U L - OOu, C 0 Lil ro c wlc ru E C j • cr'C C 0 f0 L 7 CO W , - v v 4, T C 0 Lr) a--+ cn i C_ o C L N Hr0 f0 t • C to 4 L a o a U ro z a>iQ i C c — -0 Ln O (0 C O aJ 00 aJ .0 , v E a,v 0 0 ("C5E t C • d -o • O "'• 3 >-'N C , , aJ i+ Q m0 E (o u O N ,-, O (0 (0 LL N ▪ L 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]