01-0878R

RESOLUTION AUTHORIZING A REQUEST FOR HUD HOME FUNDS FOR THE 2002 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 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. 01-0876, adopted December 17, 2001, approved the FY 2002 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:
 

2002 HOME PROGRAM - FUND 260
NUMBER PROJECTS
H001 Homeowner new construction 274,100
   Habitat                                                                                               77,000
NCLT                  197,100
H002 Permanent supportive housing - WTHC 102,000
H003 Homeowner property rehabilitation - HRA 283,000
H008 Administration                   82,600
H009 CHDO operating                   41,300
    WTHC                   17,400
NCLT                   17,400
Life House                     6,500
H012 Homeownership assistance - SVCNDA 45,000
    Total $828,000

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

Source of Funding
HOME grant $828,000

        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 HUD HOME program. In addition to citizens and subcommittees, five neighborhood planning districts, the Duluth housing commission 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 November 2, 2001, to December 2, 2001, on the draft 2002 annual action plan, which includes recommended funding for the 2002 CDBG, HOME and ESG programs. The CD committee held a public hearing on December 4, 2001, to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 4, 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 2002 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 2002 HOME program:

The Year Two 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 15 owner housing units; the creation of 13 new owner housing units; and the rehabilitation of 5 new small rental units; and provide five households with downpayment and closing cost assistance in purchasing homes. 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: Northern Communities Land Trust's (NCLT) City Homes Project
Project Summary: CHDO project, NCLT will construct nine homes and sell them to income qualified homebuyers.
Location: Lincoln Park, Central Hillside, and West Duluth
Goal: 9 Housing units
Funding Amount: $197,100 Construction of owner-occupied housing units.

Project Name: Northern Communities Land Trust's (NCLT) Project Development
Project Summary: A CHDO project, NCLT will conduct pre-development activities to increase the number of affordable housing opportunities it creates for low/moderate income households in 2003.
Location: Community wide
Goal: Increased housing development production
Funding Amount: $17,400 Pre-development assistance to CHDO

Project Name: Life House Circle of Safety Project
Project Summary: A CHDO project, Life House will continue pre-development activities to provide a six-bed transitional supportive housing program for prostituted/exploited youth.
Location: To be determined
Goal: Increased housing development production
Funding Amount: $6,500 Pre-development assistance to CHDO

Project Name: Women's Transitional Housing Coalition's (WTHC) Project Development
Project Summary: A CHDO project, WTHC will conduct pre-development activities to six new units of affordable permanent housing to homeless families. Supportive services will be provided on-site.
Location: To be determined
Goal: Increased housing development production
Funding Amount: $17,400 Pre-development assistance to CHDO

Project Name: Women's Transitional Housing Coalition's (WTHC) Permanent Housing with Supportive Services Program
Project Summary: A CHDO project, WTHC will develop six new units of affordable supportive, permanent housing to homeless families.
Location: 1804 E. First Street
Goal: 6 Housing units
Funding Amount: $102,000 Creation of new rental housing

Project Name: SVCNDA (Spirit Valley Citizens Neighborhood Development Association) Ramsey Village/West Duluth Affordable Housing Assistance Program
Project Summary: SVCNDA will provide down payment and closing cost assistance to low- to moderate-income families purchasing homes in the West Duluth service area. Priority will be given to households purchasing new units in the Ramsey Village.
Location: To be determined
Goal: 5 Housing units
Funding Amount: $45,000 Home Buyer Assistance

Project Name: Duluth Housing & Redevelopment Authority (HRA) Single Family Property Rehabilitation Program
Project Summary: HRA will provide housing rehabilitation assistance to income eligible homeowners of single-family homes. Priority to properties located in At Home and CDBG target areas.
Location: Community wide
Goal: 15 Housing units
Funding Amount: $283,000 Rehabilitation of owner-occupied housing

Project Name: Habitat for Humanity Home Construction and Site Prep Project
Project Summary: Habitat for Humanity will do site preparation and construction management of six affordable, new housing units.
Location: To be determined
Goal: 4 Housing units
Funding Amount: $77,000 site preparation and construction management

Project Name: City of Duluth's HOME Program Administration
Project Summary: Administrative funding for HOME and Housing Tax Credit programs for FY 2002
Location: Community wide
Goal: 41 HOME assisted housing units, 19 Housing Tax Credit assisted units
Funding Amount: $82,600 Administration