DISCLAIMER

 

05-0866R


RESOLUTION AUTHORIZING A REQUEST FOR HUD HOME FUNDS FOR THE 2006 PROGRAM YEAR, AS WELL AS APPROVING THE REALLOCATION OF CERTAIN PRIOR HOME FUNDS AND AUTHORIZING CONTRACTS.

BY COUNCILOR GILBERT:

     WHEREAS, City Council Resolution No. 05-0854, adopted December 19, 2005, approved the FY 2006 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).

     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:

2006 HOME PROGRAM - FUND 260, PROJECT CD06HM

SUB

PROJECT

ACTIVITY

PROJECTS

AMOUNT

GN06

1734

MURL housing program - HRA

$ 92,460

GN06

2271

New construction - NCLT City Homes Phase V

$192,460

GN06

1735

Homeowner property rehabilitation - HRA/NCLT

$242,450

GN06

4143

Supportive housing development - ASI

$ 42,460

GNO6

AD01

Program administration

$ 76,600

CH06

2270

City Homes - Phase VI pre-development - NCLT

$ 16,000

CH06

1050

Technical assistance for CHDO - AICHO

$ 9,300

CH06

1226

San Marco Apartments - CCHC

$123,346

CH06

2805

Pre-development - WCDO

$ 13,000

 

 

Total

$808,076

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

Year 2006 HOME grant

$766,190

Program income - HOME

  41,886

Total

$808,076


     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 home investment partnerships program (HOME). 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 4, 2005, to December 5, 2005, on the 2006 annual action plan, which includes recommended funding for the 2006 CDBG, HOME, and ESG programs. The CD committee held a public hearing on December 6 to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 6, 2005, with the concurrence of the community development manager.


     Source of funds:

     $ 766,190 in new 2006 HUD HOME funds

         41,886  in program income

     $ 808,076


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 2006 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 2005 HOME program:


06-HM-01

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 who 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: 222 East 2nd Street

Goal: Purchase, rehab and resell 3 homes

Amount Recommended: $92,460



06-HM-02

Project Name: Duluth Property Rehabilitation Program

Project Summary: Duluth Housing & Redevelopment Authority (HRA) and Northern Communities Land Trust (NCLT) provide rehab loans and assistance to homeowners. The NCLT works with homebuyers in their Homeland program, and the HRA manages the rehab portion of that program. This program also received CDBG funding.

Location: 222 East 2nd Street

Goal: 15 single-family owner-occupied rehabs

Amount Recommended: $242,450



06-HM-04

Project Name: Minnesota Supportive Housing Development Project Summary: Accessible Space, Inc., will construct a 21 unit (one for an onsite employee) apartment building, 15 one bedroom and 6 two bedroom units. The building will be two story slab on grade with central elevator, and serve as an independent living facility for 20 persons with a variety of physical disabilities.

Location: Maple Grove Road (between Eklund & North Robin Avenue)

Goal:20 Households

Amount Recommended: $42,460



06-CD-01

Project Name: Project Development

Project Summary: American Indian Community Housing Organization (AICHO) will conduct pre-development activities directly leading to the creation of culturally specific permanent supportive housing for Native American families/individuals and provide for staff training to build organizational capacity.

Location: 419 North First Avenue West, Apartment C

Goal: 1 organization

Amount Recommended: $9,300



06-CD-02

Project Name: Project Development

Project Summary: Northern Communities Land Trust will conduct pre-development activities to continue to provide affordable housing for low/mod income households through the development of new housing units.

Location: 206 West 4th Street

Goal: 1 organization

Amount Recommended: $16,000



06-CD-03

Project Name: Affordable Housing Pre-Development

Project Summary: Pre-development funding for housing project planning, fundraising, site search and acquisition activities by the Women’s Community Development Organization. New project development is part of a strategic plan for self-sufficiency by the agency.

Location: 1401 East Second Street, Apartment A

Goal: Pre-development activities resulting in affordable housing project(s)

Amount Recommended: $13,000



06-CH-01

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

Project Summary: Center City Housing Corporation will construct 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: 2nd Avenue West and 3rd Street

Goal: 70 SRO housing units

Amount Recommended: $123,346



06-CH-02

Project Name: City Homes

Project Summary: Northern Communities Land Trust (NCLT) will construct 8 new housing units using $200,000 of HOME funds. The new units will be sold to income qualifying homebuyers. (NCLT will also construct 3 new housing units on the sites cleared through CDBG demolition activities.) The HOME funds will provide gap funds for the projects.

Location: 206 West 4th Street

Goal: 8 housing units

Amount Recommended: $192,460