01-0070R

RESOLUTION AUTHORIZING A REQUEST FOR HUD HOME FUNDS FOR THE 2001 PROGRAM YEAR AND AUTHORIZING CONTRACTS.

BY COUNCILOR GILBERT:

        WHEREAS, Regulation 24 CFR Part 91 issued by the U. S. department of housing and urban development (HUD) requires the city to submit and receive HUD approval of a five-year consolidated plan and an annual action plan as part of a HUD-approved five-year consolidated plan for the city of Duluth; and

        WHEREAS, City Council Resolution No. 01-0068, adopted January 29, 2001, approved the FY 2001-2005 Consolidated Plan and the FY 2001 Action Plan portion of the Duluth consolidated plan for housing and community development FY 2001-2005; and

        WHEREAS, the secretary of HUD is authorized to make grants to cities and/or counties to finance local community development programs, approved in accordance with the provisions of Title I of said act, as well as grants under the Cranston-Gonzales National Affordable Housing Act of 1990, as amended, (the HOME program) and the Stewart B. McKinney Homeless Assistance Act of 1987, as amended, (the emergency shelter grant - ESG - program); and

        WHEREAS, the city of Duluth desires to continue to carry out HUD-funded programs.

        NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to make and submit appropriate documentation to HUD for those projects and corresponding funding levels as set forth below.

        BE IT FURTHER RESOLVED, that the proper city officials are hereby authorized to make and submit appropriate documentation to HUD for those projects and corresponding funding levels, set forth below:
 

2001 HOME PROGRAM - FUND 260
NUMBER PROJECTS
H002 Substantial rehab - Young mothers supportive housing $120,000
H003 Other rehab - homeowner property rehab 394,156
H004 Acquisition - Habitat for Humanity 39,102
H008 Program Administration 82,600
H009 CHDO operating 37,000
  NCLT - $20,000
Life House - $17,000
H012 Homeownership Initiative 115,000
Total $847,858

        BE IT FURTHER RESOLVED, that the following are hereby designated as the financial resources for the above program:
 

Source of Funding
2001 HOME grant $826,000
1998 HOME grant 4,858
1999 HOME grant 6,000
2000 HOME grant 11,000
Total $847,858

        BE IT FURTHER RESOLVED, that the proper city officials are authorized to make the following transfers in prior year HOME accounts:
 

Account Project Orig. Mod. Revised
Year 1998 HOME Program - Fund 260
H011 Project specific assistance $ 4,858 - 4,858 -0-
Year 1999 HOME Program - Fund 260
H003 Other rehab $111,000 - 6,000 $105,000
Year 2000 HOME Program - Fund 260
H003 Other rehab $111,000 - 11,000 $100,000

        BE IT FURTHER RESOLVED, that the city of Duluth and its officials are authorized and directed to assume full responsibility for assuring that its community development program is carried out in full compliance with the provisions of the acts implementing the programs and all regulations of HUD issued pursuant thereto. This authorization shall also apply to existing programs with the city and HUD under the HUD CDBG, HOME and ESG programs.

        BE IT FURTHER RESOLVED, that the appropriate city officials are authorized to execute the appropriate agreements with these agencies upon receipt of approval of HUD funds.


STATEMENT OF PURPOSE:  This resolution reflects comments from organizations and citizens as related to funding for the Community Development Block Grant (CDBG) program. In addition to citizens and subcommittees, five neighborhood coalitions (NCs), the Neighborhood Advisory Council (NAC) and the Community Development Committee (CD Committee) each played a role in the recommendations contained in the resolution. There was also a 30-day public comment period from December 15, 2000 to January 15, 2001, on the draft FY 2001-2005 Consolidated Plan and draft 2001 annual Action Plan, which includes recommended funding for the 2001 CDBG, HOME and ESG programs. The CD Committee held a public hearing on January 17 to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on January 17, 2001.

The resolution, in addition to authorizing application for grant funds and administration of same when received, also takes the following actions:
        (a)    Allocates funds by project for the 2001 HOME program
        (b)    Authorizes contracts for the activities upon receipt of funding contract.

Contracts will have the appropriate addendums for affordability restrictions and recapture or resale provisions to ensure compliance with HUD regulations.

The following projects are recommended for funding in the FY 2001 HOME program:

The year one action plan will foster and maintain affordable housing through several HOME funded activities. HOME funded activities include the rehabilitation and/or purchase/rehabilitation/resale of 26 owner housing units; the creation of eight new owner housing units; and the creation of eight new small rental units. The five year goals for these activities are the rehabilitation and/or purchase/rehabilitation/resale of 750 owner housing units; the creation of 100 new owner housing units; and the creation of 17 new small rental housing units.

Project Name: Duluth Housing & Redevelopment Authority (HRA) Homeowner Property Rehabilitation
Project Summary: HRA will provide housing rehabilitation assistance to income eligible homeowners including single-family homes, duplexes or triplexes.
Location: Community wide
Goal: 21 Housing units (14% of one year goal)
Funding Amount: $394,156 Rehabilitation of owner-occupied housing

Project Name: Duluth Housing & Redevelopment Authority (HRA) MURL Program
Project Summary: HRA will purchase, renovate, and sell blighted and vacant single family properties to at-risk first time homebuyers
Location: Community wide
Goal: 5 Housing units (3.3% of one year goal)
Funding Amount: $115,000 Creation of new owner-occupied houses

Project Name: Habitat for Humanity's Property Acquisition Project
Project Summary: Habitat for Humanity will do project management and site preparation on lots where new homes will be constructed
Location: To be determined
Goal: 6 Housing units (60% of one year goal)
Funding Amount: $39,102 Construction of new owner-occupied houses

Project Name: Women's Transitional Housing Coalition's (WTHC) Development of Young Mothers Supportive Housing Program
Project Summary: A CHDO project, WTHC will develop for the YWCA new units of supportive housing for young homeless and/or very low income mothers
Location: 411 North 57th Avenue West
Goal: 6 Housing units (35.2% of one year goal)
Funding Amount: $120,000 Creation of new small rental housing

Project Name: Northern Communities Land Trust's (NCLT) Homes on the Hill
Project Summary: A CHDO project, NCLT will construct and sell to income qualified homebuyers two homes, each with ground floor apartments
Location: Central Hillside
Goal: 4 Housing units, 2 homeowner (20% of one year goal) 2 rental (11.7% of one year goal)
Funding Amount: $60,000 Construction of owner-occupied duplexes

Project Name: Northern Communities Land Trust's (NCLT) Project Development Grant
Project Summary: A CHDO project, NCLT will conduct pre-development activities for an 8 to 12 unit scattered-site new construction project
Location: Community wide
Goal: Increased housing development capacity
Funding Amount: $20,000 Pre-development assistance to CHDO

Project Name: Life House's Homeless Girls/Prostituted Juveniles & Mentally-Ill Youth Project
Project Summary: A CHDO project, Life House will conduct pre-development activities for a girls/prostituted juveniles housing project, and for an emergency shelter and transitional housing program for homeless mentally ill youth ages 16-21
Location: To be determined
Goal: Increased housing development capacity
Funding Amount: $17,000 Pre-development assistance to CHDO

Project Name: City of Duluth's HOME Program Administration
Project Summary: Administrative funding for HOME and Housing Tax Credit programs for FY 2001
Location: Community wide
Goal: 42 HOME assisted housing units, 69 Housing Tax Credit assisted units
Funding Amount: $82,600 Administration