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HomeMy WebLinkAbout2000 Resolution No. 095• RF.i:0.l,UTION NO.~ SICRIES OF 2000 A RESOLUTION BY THE CITY OF ENGLEWOOD AUThORIZING THE CITY OF ENGLEWOOD, COLORADO TO FILE AN APPLICATION WITH ARAPAHOE COUNTY FOR A 2001 COMMUNITY DEVELOPMENT BLOCK GRANT. WHEREAS, Englewood City Council has approved CDBG a pplications since 1977 and approved the e:-cecution of an Intergovernmental Agreement with the passage of Ordinance No. 37, Series of 1991 ccvering •.:1e City's participation in the Arapahoe County CDBG Entitlement Program for funding years 1992 through 1994 ; and WHEREAS , the Englewood City Council approved passage of Ordinance No . 39, Series of 1994 , authorizing the execution of an Intergovernmental Agreement between the City of Englewood and Arapahoe County covering participation in the Arapahoe County CDBG Entitlement Program as extended by Amendment No. 2, for funding years 2001 through 2003; and WHEREAS , the Arapahoe County Community !':·,c_1opment Block Grant Program provides grants to participating municipalities to meet hc..using and community development needs; and WHEREAS , to compete in the Arapahoe County Community Development Block Grant Program, loc,,l · vernments must submit an appltcatfon; and WHERE/.S, the City of Englewood has received a notice of fund availability; and WHERl:AS, the City of Englewood, Colorado desires to apply for these funds through the Arapahoe Co·.,,ty 200 1 Community Development Block Grant to fund the Housing Rehabilitation Program, to assist with th, funding for the Family Self Sufficiency Program , to &Hist with funding for a Senior Services Coordinator for Simon Ce nter and Orchard Place tenants, to assist with ftu~ding for the Homeless Prevention Program . to assist with funding for the Circulator Shuttle, to assist with funding for th ,: Thomas Skerritt House renovation, and to assist with funding with funding for the Famil} Re source Center; NOW, THEREFORE . BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO , THAT : ~-The City of Englewood. Colo rado is herebi authorized to file an application for on Arapahoe County 2001 Community Deve lopm ent Bl ock Grant . ~-The Mayor and City Clerk are authorized to aian and attest all neceeaary forms, documents, aaaurance ■ and certifications for the Community Development Block Grant for and on behalf of the City Council and the City of Englewood. ADOPTED AND APPROVED this 4th of December, 2000 . I, Loucriahia A. Elli■, City Clerk forA!lo 0ity of Englaw above ia a true copy of Resolution No ._n Series of 2000. •• • COUNCIL COMMUNICATION rl" I "' Dat11 Agenda Item DecAmber 4, 2000 10c i Subject: A Raoolutton Approving FY2001 Community Develcpment Block Grant ilppllcatton INmATED BY: Community Development I STAFF SOURCE: Janet Grimmett, Housing Finance Specialist COUNCIL GOAL AND PREVIOUS OOUN<'IL ACTION Housing and Community Development Previous Action: City Council has approved resolutions to file Community Development Block Grant (CDBG) applications annually since 19TT. The City Manager has approved participation ir, :he Arapahoe County CDBG Entitlement Program for funding years 2001 through 2001 ~, 1he execution cf Amendment Number Two that extended the Intergovernmental Ordinance #39, Series of 1994 approved by the City Council. RECOMMENDED ACTION Staff recommends that Council approve a resolutio •, authorizing staff to apply for fiscal year 2001 Community Development Block Grant (C DBG) funds using Its own set-aside alloc~(ion and CDBG Pool funds . BACKGROUND, ANAL SIS, AND ALTERNATIVES IDENTIFIED The Federal CDBG Enti:lement Program ;,rovides grants to units of local government and urban counties to meet housing and community development needs. The objective of the program is to develop viablP. urban commun ,1 ies by providing : • dece nt, safe , affordable housing, for example, housing rehabilitation; • imp roved public s3rvlces , for example , circulator shuttle , homeless prevention, Family Res idential Resource Center . and a senior services coordinator, • economic opportunities primarily for persons of low and moderate income, for example , Family Sett Sufficiency program ; • preservation of historic places, for example. Skerritt House renovation . The Federal Program objectiv~s ~,e achieved through projec ts developed by the local government that are des igned to give priority to th ose activities that benefit low and moderate rl Income families or that 11ld In prevendng or ellminating slum or blight. The request for funds may also Include activities that are designed to meet other urgent developmeni needs in the community that pose a serious and immediate threat t~e '1 ealth or welfare of the community if other financial resources ar-, not av~ilable. Lr -:al governments de'.ermine the activities that best serve the objectives of the ~rogra'll. Funds are appropriated annually by the Congress for this program and are allocated by statutory formula to each entitlement area. Arapahoe County is an approved entitlement are~•. The grant funds are '1islributed on a formula basis to participating cities wtthln Arap,1hoe County that Incorporates each jurisdiction 's total population with Its low/mJderale income population . The City of Englewood must submit an application(s) in order to receive funds from the FY2001 Ar.;p:ihoe County CDBG Program . Since the local program is noncompetitive, the County will evaluate th~ applications based on compllance with the National Objectives. Funding levels for FY2001 are anticipated to be $225,000 . The FY2001 Local Program consists of six possible projects that meet current housing and neighborhood needs . Beginning with FY2002 funds, CDBG projects will Implement the Housi~g and Neighborhood Plan being drafted by Community Development staff for review by the Planning Commission and City Council . This plan will be an amendment to the City of Englewood's Comprehensive Plan that will identify housing and community development needs and their possible solutions. All proje·•s are subject to additional review by City staff, Arapahoe County CDBG administrators and the County Commissioners. The listed projects and funding levels may change . FY2001 CDBG funds are beir.g requested for the following projects : 1) $85,000 for the Housing Rehabilitation Project that provides loans lo homeowners to finance the costs of major housel'Old repairs and improvements; 2) $10,000 for the Englewood Housing Authority's Fam •., Self-Sufficiency Project that provides comprehensive case managemer,: and support services to participants to become self sufficient within five years ; 3) $50,000 for the circulator shuttle that will provide transportation services from the Englewood light rail station to the Swedish/Craig Hospital areas ; 4) $10,000 for the Englewood Housing Authority's Homeless Prevention Assistance Program that provides loans to low income families to pravent evictions and foreclosures that could re sult in homelessness ; 5) $5 ,000 for the Englewood Housing Authority's senior services coordinator that provides services to the residents of Simon Center and Orchard Place ; and , 6) $25,000 to support the Western Arapahoe County Homeless Alliance 's (WACHA) Family Resource Center to be located at Arapahoe House ; Is • 7) $40,000 for renovating the Skerritt House . CDBG funds proviue part of the required local match for Colorado Historical Society's grant funds. An additional joint application will be made by the City of Englewood and WACHA to the Arapahoe County Community Development Advisory Committee for $25,000 of CDBG Pool funds to provide additional adminisirative services for the Family Resource Center. This application is separe.te and outside of the City's allocation of FY2001 funds . The Committee consists of representatives from each of the six urban county jurisdictions and rece ives its own funding set-aside for projects serving two or more jurisdictions . FINANCIAL IMPACT Existing C~mmunity Development staff administers the proposed projects. Staff salaries and benefits represent the City's participation in the projects . Englewood budgets approximately $10 ,000 of CDBG fun ,fog to offset salaries and benefits . UST OF ATTACHMENTS Proposed Resolution 2001 Arapahoe County Community Development Block Grant Application I. Project name:_ Housing Rehabilitation Project ___________________ _ Project address:_ Owner/occupied single family residential units yet to be detennined ______ _ Application priority (if more than one application su bmined):_XXX _____ _ Amount of CDBG funds requested :_$85,000.00 ______ _ 2. Applicant(s):_ City of Englewood _____________________ _ Chief official of applicant:_ Thomas J. Bum s _______ Title:_ Ma"or ______ _ Complete mailing address:_1000 Englewood Parkway , Englewood, CO 80110-2373 ______ _ Phone number:_(303) 762-2311 ______ Fax number : ___________ _ 3. Contact person for this application:_Janet Grimmett. _________________ _ Complete mailing address:_1000 Englewood Parkway, Englewood, CO 80110-2373 ______ _ • E-mail Phone number:_303-762-2349 ________ Fax number:_303-783-6895 _____ _ address:_jgrimmen @ci .englewood.co .us ______________________ _ 4. Agency tax ID number:_ 84-6000583 ______ _ Fiscal y~ar :_ 1/1 to 12/31 _____ _ 5. Type of orga ni zation:_ Municipal Government __________________ _ 6. Provide a brief summary of the proposed project in the :e below: The Housing Rehabilitation Project provides affordable home rehabilitation loans to low and moderate-income homeowners scanered throug hout the City of Englewood. CDBG funds are !cveraged and blended with monies pro vided by a bank co ns onium through a line of credit to the City of Englewood to provide below market interest rate loans that average under a 4.0% interest rate for a maximum 20-}ear term. The interest rate could be as low as zero percent depending upon the income of the family . The program enables low and moderate income families to live in safe , sanit ary and decent housing unit s that meet or exceed th e Section 8 Existi ng Housing Quality Standards set by HUD . 7. Proje ct category , including subgro up :_ Renabilitation : Single Family Residential _______ _ 8. Natio nai objective, includin g benefit type:_ Low/moderate income benefit for limited clientele ___ _ ' 9. Complete project description (additional sheets may be attached): .e Housing Rehubilitation Project began in 1977 to preserve the existing housing stock in Englewood, and to ~ddress the problem s of low-income families with th e financing of major household repairs. The additional funding received from this application will serve to continue the existing program. Policies and procedures are already in place and existing staff will handle the project. No subcontracts or other entities will be involved. General advertising for the project will be done to encourage the participation of minority and women-owned business enterprises. Even though a waiting list currently exists, articles and news stories will be placed in the local Englewood Herald newspaper and the Englewood Citizen newsletter advertising the availability of the project. Rehab loans will be available to finance necessary home improvement work items The terms of the loan will vary from a zero percent deferred loan to a blended rate loan averagi ng under a 4.0% interest rate amortized up to a maximum of 20 years. All loans will be secured by a lien filed on the property. Loan-to- Va lue ratio s will be at a maximum 90 % level , but the ratio can be exceeded by approva l of the Loan Committee on a case-by-case basi s. All units wil! meet the Section 8 Existing Housing Quality Standards upon completion of the rehabilitation. The following is the work priority orde r: I) life threatening or safety problems; 2) handicap retrofitting ; 3) energy conservation measures; 4) elimination of potential code problems: and 5) general prope11y improvements (GPI). GP! cannot be financed with CDBG funds. Applications will be taken on a first-come, first-served basis with priority given to emergency situations . Initial eligibility and work specifications will be determined and prepared by existing housing rehab staff. The Rehab Loan Committee (RLC) will approve all non-emergency rehab loans . The staff will approve emergency loans that will be ratified at the next RLC meeting. The director of Community Development, the bank consonium , and the Mayor appoint the 1hree members of the Loan Committee . Staff will follow genera lly approved lendin g practices for loa n closing and co nstruction monitoring . Construction funds will be disbursed from individual construction A,row accounts held at Vectra Bank. The homeowner will have an approved work contract with an eligible .ntr~ctor following normal contract procedures . The homeowner may act as their own contractor with approval of the Loan Committee. No funds are advanced to the contractor. The program will not release more than 80 % of the funds approved for work items during the construction period . Final payment on the contrac t ?rice will be made only after a final inspection and acceptance of all the work to be done by the Contractor and the Contractor has furnished satisfactory releases of liens. Monthly payments are made at Englewood City Hall with existin g staff handling the loan servicing. 10. What factors indicate community need for this project ? (additional sheets may be attached) In 1979 the Building Dept. completed a windshield survey of the City of Englewood 's entire housing stock. Over 2.400 homes were found to be substandard at that time exhibiting various problems ranging from sagging roofs to inadequate electrical wiring. The Building Dept. concluded that 98% of the substandard units were candidate; for rehabilitation . In addition over 5,000 unit s representing 40 % of the housing stock within the City were built prior to 1950 which is al so prior to any housing codes being adopted. The Hou sing Rehabilitation Proje ct is the onl y program available within the City of Englewood to assist low and moderate-in co me families with the financing of their maj or hou se hold repairs. The program has rehabbed over 675 substandard housin g un its avera[ing S13.000 per unit si nce its inception. but that is addressing onl y 25% of the identified need throughout the City . Currently 35 low and modera te-in co me families arc on the waiting li st for rehab loan assistance . 'fhe s1u1emen1s and duta in 1his applica1ior, arc correcl and 1rue to lhe besl of my knowledge, and its submission has been au1horized by the governing bod;1 of 1he applicant With this submission , the applican1 agency also agrees to follow all applicable rcgula1iom and guidelines governing Community Develo;,meni Block Gram funding . _Thomas J. Burns _________ _ Name (lypcd or primed) Required Exhibits: Projecl budget Projec1 timeline Required Attachments: Ta, sta1us cenificalion (non-profit agencies only) Lisi of board of direc1ors (non-profit agencies only) __ Mayor, City of Englewood. _____ _ Title _December 5, 2000 ________ _ Dale illc/ude board appoi111me111 and ten11 expira tion dates, wliom eacli board member represems Agency brochure or narraiive ou1Iining services available (non-profit agencies only) 4. Curren! agency or depanmenl budge1 (a ll agencies) 5.Aie map and/or pho1ographs (optional/ 6~uers of suppon ( optional) 7. Any 01her rclc va nl documenlalion (optional/