04-0827R


RESOLUTION AUTHORIZING A REQUEST FOR HUD HOME FUNDS FOR THE 2005 PROGRAM YEAR, AS WELL AS APPROVING THE REALLOCATION OF CERTAIN PRIOR HOME FUNDS, 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. 04-0825, adopted December 20, 2004, approved the FY 2005 action plan portion of the Duluth consolidated plan for housing and community development FY 2005-2009; 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:

2005 HOME PROGRAM - FUND 260, PROJECT CD05HM

SUB PROJECT

ACTIVITY

PROJECTS

AMOUNT

GN05

1734

MURL housing - HRA

    $100,000

CH05

2271

New construction - NCLT city homes Phase IV

    $150,000

GN05

1735

Homeowner property rehabilitation - HRA/NCLT

    $330,000

CH05

2239

Fourth Street revitalization

    $ 30,000

GNO5

AD01

Program administration

    $ 69,600

CH05

2270

City Homes V - pre-development - NCLT

    $ 15,000

GN05

2239

Homebuyer downpayment assistance - NHS

    $ 40,000

GN05

1736

Tenant-based rental assistance - HRA

    $ 70,000

GN05

1737

Tenant-based rental assistance (administration) - HRA

    $ 5,000

CH05

1226

San Marco Apartments - CCHC

    $ 18,525

CH05

2805

Predevelopment - WTHC

    $ 9,000

TOTAL

    $837,125

 

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

Year 2005 HOME grant

$746,000

Year 2002 HOME grant

     125

Program income - HOME

  91,000

Total

$837,125

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

2002

Original

Modified

Revised

2621 h001 New construction - Habitat

$77,000

$125

$76,875

     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, the Neighborhood Forums 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 1, 2004 to December 1, 2004, on the 2005-2009 draft Consolidated Plan and the 2005 annual Action Plan, which includes recommended funding for the 2005 CDBG, HOME, and ESG programs. The CD Committee held a public hearing on December 7th to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 7th, 2004, with the concurrence of the Community Development Manager.


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 2005 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.


This resolution also pre-commits FY 2006 HOME funds in the amount of $75,600 for the San Marco Apartments project.


The following projects are recommended for funding in the FY 2005 HOME Program:


Project Name: MURL Program Matching Funds - Duluth HRA

Project Summary: HRA purchases vacant condemned and blighted homes, completes major rehabs of the properties, and sells them to income eligible homebuyers that don’t qualify for a bank financed mortgage using a Contract for Deed. Target areas are the CDBG eligible neighborhoods. Homeowner payments are paid into a fund used to buy and rehab additional blighted properties.

Location: Communitywide

Goal: Purchase, rehab and resell 3 homes

Funding Amount: $100,000


Project Name: Duluth Property Rehabilitation Program - Duluth Housing & Redevelopment Authority (HRA) and Northern Communities Land Trust (NCLT)

Project Summary: See Summary under CDBG application.

Location: Communitywide

Goal: 17 single-family owner-occupied rehabs

Funding Amount: $330,000


Project Name: Neighborhood Housing Services (NHS) Homebuyer Down Payment Assistance

Project Summary: NHS will use HOME funds to provide down payment assistance directly to low-income homebuyers purchasing homes in the NHS service area. These funds would be an additional source of financing for our successful HIP-HOP down payment assistance program. NHS will provide homebuyers with counseling and educational services.

Location: CTs 12, 13, 14, 16, 17, 18, 19, 20, 24, 25, 26 and 28

Goal:10 Households

Funding Amount: $40,000


Project Name: Supplemental Voucher Program - Duluth HRA

Project Summary: Provide Housing Choice Vouchers (Section 8) for 20 households for one year. Funds will be used for Tenant-Based Rental Assistance under the HOME program. Recipients will be families on the HRA’s waiting list.

Location: Communitywide

Goal: 17 households receiving rental vouchers

Funding Amount: $70,000


Project Name: Supplemental Voucher Program - Duluth HRA

Project Summary: Administrative funds for the program listed above.

Location: Communitywide

Goal: 1 organization

Funding Amount: $5,000


Project Name: Northern Communities Land Trust (NCLT) CHDO Operation / Pre-Development

Project Summary: NCLT will conduct pre-development activities associated with the construction of 10-15 affordable new homes in scattered sites in the City of Duluth during 2006-2007.

Location: Communitywide

Goal:Pre-development activities

Funding Amount:  $15,000


Project Name: WTHC Development and Project Planning - Women’s Transitional Housing Coalition

Project Summary: Pre-development funding for housing project planning, fundraising, site search and acquisition activities by WTHC staff, as well as training. New project development is part of a strategic plan for self-sufficiency by the agency within the next 10 years.

Location: Communitywide

Goal: Pre-development activities resulting in 18 units of affordable housing

Funding Amount: $9,000


Project Name: New San Marco Apartments - Center City Housing Corporation

Project Summary: New construction of 70 single-room occupancy housing units. Thirty of the units will be for permanent supportive housing for chronically alcoholic individuals, and 40 will replace units currently in the Gardner Hotel. Location: 3rd Avenue West and 3rd Street

Goal: 70 SRO housing units

Funding Amount: $18,525


Project Name: Northern Communities Land Trust (NCLT) City Homes - Phase V

Project Summary: NCLT, a Community Housing Development Organization (CHDO), will construct six affordable new homes. Two will be in-fill construction in Gary-New Duluth, two will be in the HRA Hawks Ridge development, and two will be built on sites yet to be determined.

Location: Communitywide

Goal:6 Housing units

Funding Amount:  $150,000


Project Name: Neighborhood Housing Services (NHS) 4th Street Revitalization

Project Summary: NHS will provide rehabilitation of one unit in an existing two unit building as part of the 4th Street Revitalization program. This is a purchase / rehabilitation / resale project; both units will be sold to income qualifying households.

Location: Lake Avenue and East Fourth Street

Goal: 2 Housing Units

Funding Amount:  $30,000


The above noted grant/loan contracts will have a positive impact on the property tax base.