DISCLAIMER

06-0839R


RESOLUTION AUTHORIZING A REQUEST FOR HUD HOME FUNDS FOR THE 2007 PROGRAM YEAR, AS WELL AS APPROVING THE REALLOCATION OF CERTAIN PRIOR HOME FUNDS AND AUTHORIZING CONTRACTS.

BY COUNCILOR GILBERT:

     WHEREAS, City Council Resolution No. 06-0837, adopted December 18, 2006, approved the FY 2007 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

     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:

2007 HOME PROGRAM - FUND 260, PROJECT CD07HM

SUB PROJECT

ACTIVITY

PROJECTS

AMOUNT

GN07

1734

Substantial housing rehab - HRA and/or NCLT

$170,000

GN07

2271

City home decon/recon - NCLT

$250,000

GN07

1735

Homeowner property rehab - HRA and/or NCLT

$100,000

GN07

1736

Homeless rental asst. Program (TBRA)- HRA

$ 68,000

GNO7

1737

TBRA administration - HRA

$ 6,000

GN07

AD01

Program administration

$ 76,000

CH07

2270

City Homes-Phase VII pre-development - NCLT

$ 20,000

CH07

1050

Supportive housing - AICHO

$ 75,000

CH07

1226

Memorial Park Apts. - CCHC

$100,000

CH07

2805

Pre-development - WCDO

$ 18,000

CH07

2806

Permanent rental housing - WCDO

$ 56,768

 

 

Total

$939,768

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

Year 2007

HOME grant

$764,000

Year 2004

HOME grant

$ 23,675

Year 2005

Program income

$152,093

Total

$939,768


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

 

Original budget

Amount of change

Revised budget

2004 CD04HM

CH04-2804

WCDO-pre-development

$ 9,000

-$ 675

$ 8,325

CH04-2239

NHS Fourth Street project

$ 23,000

-$ 23,000

  -0-

Bal. Sh. 2220

Lien repayments

$152,093

-$152,093

  -0-

$175,768 - Total amount reprogrammed


     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, 2006, to December 5, 2006, on the 2007 annual action plan, which includes recommended funding for the 2007 CDBG, HOME, and ESG programs. The CD committee held a public hearing on December 5 to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 5, 2006, with the concurrence of the community development manager.


     Source of Funds:

     $ 764,000 in new 2007 HUD HOME funds

        175,768  in program income and reprogrammed funds

     $ 939,768


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 2007 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 2007 HOME Program:


07-HM-01

Project Name: Homeless Rental Assistance Program (TBRA) - HRA

Project Description: The HRA of Duluth established a “Homeless Rental Assistance Program” with previous HOME funds, which provides rental assistance to homeless families. The program functions under Section 8 guidelines, however the homeless applicant has immediate access to a voucher until funds are committed. The HRA proposes to continue this successful and necessary program with 2007 HOME funds.

Location: Citywide

Goal: 18 housing units

Amount Recommended: $74,000


07-HM-03

Project Name: Substantial Rehab Program - HRA and/or NCLT

Project Description: A program through the Minnesota Housing Finance Agency (MHFA) – known as the Minnesota Urban and Rural Homesteading Program (MURL). Provides homeownership opportunities to “at risk” homebuyers who will assist in stabilizing declining neighborhoods.

Location: Citywide

Goal: 7 housing units

Amount Recommended: $170,000


07-HS-03 / 07-HM-04

Project Name: Duluth Property Rehabilitation Program

Project Description: HRA will provide rehabilitation assistance to rental property owners and eligible homeowners of properties within the City of Duluth. This program provides necessary improvements, revitalizes neighborhoods, maintains quality housing stock, and promotes employment and economic stimulus to the community.

Location: Citywide - Preference for housing in 1) At Home in Duluth focus areas, 2) CDBG eligible areas, and 3) the balance of the City of Duluth

Goal: 5 housing units

Amount Recommended: $100,000


07-CD-01

Project Name: NCLT – City Homes Phase VII

Project Description: This is a request to pay for staffing costs from April 1, 2007 – March 31, 2008, associated with project pre-development activity for the construction of 8-10 affordable new homes in scattered sites in the city of Duluth during 2008-2009.

Location: 206 West Fourth Street

Goal: 1 organization

Amount Recommended: $20,000


07-CD-02

Project Name: Predevelopment - WCDO

Project Description: Women’s Community Development Organization, Inc. (WCDO) is requesting funds to do the preliminary work of project planning, fundraising, site search and acquisition for future affordable rental projects in core neighborhoods of Duluth that will serve low-income singles and families.

Location: 1401 East Second Street, Apt. A

Goal: 1 organization

Amount Recommended: $18,000


07-CH-01

Project Name: City Homes Deconstruction/Reconstruction - NCLT

Project Description: Northern Communities Land Trust (NCLT) will use HOME funds to deconstruct 2 blighted homes as well as to lower the purchase prices of 8 newly built affordable, owner-occupied homes, which will be sold to households earning 80% or less of Duluth Median Income (DMI).

Location: Community wide

Goal: 10 housing units

Amount Recommended: $250,000


07-CH-02

Project Name: Supportive Housing – AICHO

Project Description: Gimaajii-Mino-Bimaadiziyaan (Gimaajii) will provide 26 units of affordable housing consisting of 0, 1, 2 and 3 bedroom apartments. This housing will serve low income persons who have been or are at risk of becoming homeless.

Location: 202 West Second Street

Goal: 11 housing units

Amount Recommended: $75,000


07-CH-03

Project Name: Memorial Park Apartments – Center City Housing Corp.

Project Description: Center City Housing will serve as the developer and/or sponsor and is seeking funding for capital improvements required to stabilize the operations of Memorial Park Apartments for eventual ownership by a qualified non-profit. The HRA will administer these rehab funds.

Location: 605 North Central Avenue

Goal: 7 housing units

Amount Recommended: $100,000


07-CH-04

Project Name: Permanent Rental Housing – WCDO

Project Description: Women’s Community Development Organization, Inc. (WCDO) is requesting funds to acquire a building that will provide 10 units of affordable rental housing in a core neighborhood of Duluth to serve low-income households who are homeless or at-risk of homelessness.

Location: To be determined

Goal: 10 housing units

Amount Recommended: $56,768