HomeMy WebLinkAboutPR 15317: PUBLIC HEARING FOR NEIGHBORHOOD STABILIZATION PLAN - 2 APPLICATION
To: City Council and Steve Fitzgibbons, City Manager
From: Colleen Russell, Planning Department
Date: 6/12/2009
Re: A Public Hearing for NSP 2 (Neighborhood Stabilization Plan-2) Application
REQUEST:
The NSP 2 (Neighborhood Stabilization Plan-2) application will be submitted for $10,000,000 as many
areas were not applicable or pursued more funding. A public hearing is requested with proposed
resolution (PR)15317
BACKGROUND:
The application proposed is considered part of the HERA (Housing and Economic Recovery Act) to
revitalize cities with housing activities as set forth in the application criteria. For example, land banks,
demolition anal redevelopment are some programs expected to be implemented under this
reimbursement grant. Due to the cau for transparency, public forums or hearings need to be executed
along with the creation of partnerships.
RECOMMENDATION:
The Planning Department is requesting the public hearing at the City Council meeting on June 30, 2009,
so that there is sufficient time for comment and feedback prior to the application deadline July 17, 2009.
BUDGETARY/FISCAL EFFECT:
Funds will be from NSP-2 allocations
STAFFING/EIVIPLOYEE EFFECT:
Temporary help will be hired ,but paid via otherfunding sources
• Page 1
SUMMARY:
The public hearing will albw for citizen participation as well as more awareness of the programs criteria
and make known the decision for the selected areas.
C. Russell, Planning Director
• Page 2
RPCnar tfi ~Ilv
P.R. No. 15317
06/12/2009 CWR
RESOLUTION NO.
A RESOLUTION CALLING FOR A PUBLIC HEARING
REGARDING THE CITY FILING FOR AN APPLICATION
IN REGARDS TO THE NEIGHBORHOOD STABLIZATION
PLAN-ROUND TWO (2). THIS AREA WILL BE BOUNDED
BY HIGHWAY 347(TWIN CITY/JEFFERSON DRIVE) TO
THE EAST, HIGHWAY 87 (GULFWAY) NORTHBOUBND,
LAKESHORE DRIVE TO THE SOUTH AND ALL AREAS
NOT COVERED BY ROUND ONE WEST THAT LIES
BETWEEN DEQUEEN AND MARTIN LUTHER KING
JUNIOR DRIVE WESTBOUND IN PORT ARTHUR,
JEFFERSON COUNTY,TEXAS
WHEREAS, in keeping with the American Recovery and Reinvestment Act of 2009, and for
the Department of Housing and Urban Development -the HERA (Housing and Economic
Recovery Act); the City of Port Arthur ,Texas is eligible for $10,000,000 dollars of financial
assistance for housing activities such as acquisition, demolition, rehabilitation and redevelopment
in the areas as outlined in Exhibit "A" ;and
WHEREAS, a public hearing is requested by HUD (Department of Housing and Urban
Development) in order to obtain public participation.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT the Planning Director or said designee is hereby authorized to file an electronic
application as well as send documents to HUD in keeping with the request for funding following
the outline for scoring set in the NOFA (Notice of Funding Availability) for Neighborhood
Stabilization Plan -Round (2) (a copy of which is attached hereto as Exhibit "B").
THAT the City Manager or his designee hereby is authorized to be the lead contact person .
THAT the City recognizes that the grant is a reimbursement program and that 5% of the total
allocation is eligible for administrative and activity delivery/soft costs. The City will comply with
P.R. NO. 15317
06/12/2009
Page 2 of 5
all the required standards set forth in the CFR 24 regarding design accessibility, energy systems
and other cost saving and factors considered "green improvements."
THAT the deadline to file the application is July 17, 2009.
THAT the City Council authorizes a public hearing on June 30, 2009 in keeping with the
criteria of the application and Chapter 211 of the Texas Local Government Codes which requires
publication for public hearings.
THAT notice of public hearing shall be published at least 15 days prior to the hearing in the
local newspaper publication shall be in accordance with the fifteen days publication notice
required by City Codes.
THAT a copy of the caption of this Resolution be spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED this day of June, A.D. 2009, at a Regular
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES:
MAYOR
COUNCILMEMBERS:
NOES:
mayor
P.R. NO.15317
06/12/2009
Page 3 of 5
ATTEST:
City Secretary
APPROVED AS TO FORM:
~~~ ~ -~
City Attorney
APPROVED FOR ADMINISTRATION:
City Manager
Director of
irector of Finance
P.R. NO. 15317
06/12/2009
Page 4 of 5
EXHIBIT "A"
(APPLICATION CRITERIA)
tV ,gppfication Review Information
A, Criteria
1. Factor l: Need/Extent of the Problem (4(? points}
a, 'T`arget geography. (10 points; also a threshold factor)
You must identify the specific geography in which you will carry out your NSP2
program, by census tracts, showing each area's two neighborhood stabilization index scores.
(T'his must be the. same geography used. under threshold factor L1.B.8. above.} This list may be
submitted. as an appendix that will not count towards the page Ii.mit.
You must provide a narrative describing the nature and extent of need for neighborhood.
stabilization in ,your target geography, based on quality data. At a minimum, your narrative for
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this factor must address local housing market, credit, and employment needs that are contributing
to decline of the targeted geography, including a discussion of how these factors relate to each
other.
b. Market conditions and demand factors (30 points)
You must identify using quality data from an identified source and address in your
narrative:
(1) A reasonable projection of the extent to which the market(s) in your target geography
is likely to absorb abandoned and foreclosed properties through increased housing demand
during the next three years, if you do not receive this funding. This may be based, for example,
on projected job growth and in-migration or the opposite. (For purposes of this notice, market
absorption rate is the rate at which abandoned or foreclosed. homes in a market will sell or be
lawfully reoccupied in a given period of time. This rate is often expressed as sales or re-
occupancy per month. Total inventory of abandoned and foreclosed homes divided by the
absorption rate for such homes equals the total months of inventory.)
(2) The extent to which over-building of housing units, over-valuation of housing, or loss
of employment is a critical factor, or the most critical factor, causing abandonment and
foreclosure in the target geography.
(3) The income characteristics of households in your target geography and information on
housing cost burden for households at the 50 percent, 80 percent, and 120 percent of area median
income levels.
(4) Any relevant social, governmental, educational, or economic factors contributing to
local market conditions and contributing to neighborhood decline or instability within the target
geography.
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(S) A narrative describing which NSP2 activity categories are most likely to stabilize the
target geography and why, based on the information in the above paragraphs. For example,
HUD would expect that a community with a very low projected absorption rate for foreclosed
property over the next three years might identify demolition and clearance as an appropriate
stabilization strategy. A neighborhood in a community with a higher absorption rate but a very
large number of properties now might need to help first-time homebuyers to afford available
units. A neighborhood with a large number of abandoned properties might identify code
enforcement, acquisition, and rehabilitation as the most likely to stabilize the target geography.
2. Rating Factor 2: Demonstrated Capacity of the Applicant and Relevant Organizational
Staff (40 points)
a. Past Experience of the applicant. (30 points)
Provide examples of recent experience (within the last 24 months) managing
neighborhood stabilization activities similar to the ones covered under this notice. Examples
should. include a discussion of the tasks undertaken, actual results achieved, and the specific
skills and resources applied to each task. Describe concisely your experience in the specific
activity categories identified above as the most likely to achieve neighborhood stabilization in
the target geography, including experience with, as applicable:
(1) City and regional planning,
(2) Acquisition and disposition of foreclosed real estate,
(3) Rehabilitation of housing,
(4) Redevelopment of vacant property,
(S) Program marketing and management of waiting lists for potential residents,
(6) Accessing operating and investment capital,
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(7) Working productively with other organizations.
b. Management structure (10 points)
(1) You must provide a description of your management structure, including an
organizational chart that identifies all key management positions and the names and positions of
staff managing NSP2. You must also describe your key staff and their specific roles and
responsibilities for the day-to-day management of your proposed activities. If you are a
consortium or applying with afor-profit partner, provide this information for each organization
and also describe the management structure of the consortium or partnership(s) and the role of
each entity. Do not include individuals' Social Security Numbers in your application.
(2) References. You should include at least two references for recent work similar to the
programs covered under this NOFA and undertaken by you. References should only include a
contact name, address, phone number and email address so HUD may verify the information.
Alternatively, a reference may include one brief newspaper or journal article, program
evaluation, or a transcript from a reputable independent source other than you. No video or audio
recordings may be submitted.
3. Rating Factor 3: Soundness of approach (45 points)
a. Proposed Activities (15 points)
(1) Briefly describe the overall neighborhood stabilization program you propose to
undertake, including any coordinated components that will not be directly funded with NSP.
Address specifically whether you are proposing to expand an existing effort, including the
sources of funding for that existing effort. Address specifically how and when your program will
result in stabilization of the housing market in the target geography and achieve long-term
economic benefits.
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(2) Uses of funds and firm commitments
(a) Indicate how you will use NSP2 funds by providing a list or table showing the amount
of funds budgeted for each eligible use and CDBG eligible activity (see Appendix 1, paragraph
H for these uses and activities). Indicate the responsible entity for each use and activity. These
proposed activities must be among the activities described as most likely to stabilize the target
geography in Rating Factor paragraph 1.b.5. above.
(b) Briefly describe the proposed. activities in a narrative, including the range of interest
rates (if any); duration or term of assistance; tenure of beneficiaries (e.g., rental or
homeownership; and location or address information.
(c) Identify whether the other funds are firmly committed (legally obligated to a specific
activity or under your control and budgeted for a specific activity) or not. See II.A.S and Rating
Factor 4.
(d) Demolition and preservation.
(i) Your narrative must address why, based on market conditions, you. chose the proposed
mix of demolition of housing units versus preservation of housing units.
(ii) If you are proposing to demolish or convert any low- and moderate-income dwelling
units as a result ofNSP2-assisted activities, you must identify all information required in
Appendix l ,paragraph K. l . in an appendix to your application.
(iii) If you believe the market conditions in your target geography warrant an exception to
the limitation that no more than l 0 percent of NSP2 funds may assist demolition activities,
request the exception and justify your choice. Such an exception request must be clearly labeled
as such and is not subject to the application page limits.
b. Project completion schedule. (5 points)
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Briefly describe the project completion schedule, including milestones in each month for
the critical management actions for you, including each consortium member or partner, start and
end dates of each NSP-assisted activity, and your expected metrics and results. The schedule
must show how you will comply with the deadlines imposed by the Recovery Act and included
in Appendix 1, paragraphs O and M.
c. Income targeting for 120 percent and 50 percent of median (5 points)
All NSP2 funds must provide benefit to persons whose income does not exceed 120
percent of area median income. Also, 25 percent of each grant must be used for the purchase and
redevelopment of abandoned or foreclosed upon homes or residential properties that will be used
to house individuals or families whose incomes do not exceed 50 percent of area median income.
Describe specifically how your proposed NSP2 activities will meet these requirements.
d. Continued affordability (5 points)
The minimum requirements for continued affordability are described in Appendix 1,
paragraph B.2. Describe how you will ensure, to the maximum extent practicable and for the
longest feasible term, that all NSP2-assisted properties will remain affordable to persons whose
income do not exceed:
(1) 120 percent of area median income, and
(2) 50 percent of area median income, as applicable.
e. Consultation, outreach, communications (5 points)
Ensuring transparency is a requirement for all the Recovery Act programs.
(1) Describe how you have consulted with units of local government and states with
jurisdiction over your target geography, especially those that received. NSP1 funding, in
developing your proposal and how you will continue to consult during program implementation
26
if you are funded.
(2) Describe your proposed outreach and affirmative marketing actions and how you will
ensure that you have qualified families available as NSP2-assisted units become available.
(:3) Describe how you will continually communicate program design, progress,
opportunities and results; process any complaints in a timely manner (respond within 15 working
days, if feasible); and ensure that local citizens and other interested parties are informed about
program policies.
f. Performance and monitoring (10 points)
CDBG grantees must have a plan for monitoring all program activities and ensuring
performance. In addition to this, NSP2 recipients must also have an internal audit function. If
you are a consortium, the internal auditor must be explicitly authorized in each consortium
agreement to carry out internal audits of any NSP2-assisted activity. An internal audit function
is not the same as the required annual Single Audit. An internal audit function will continually
examine potentially risky areas of program operations and management and provide regular and
valuable feedback to program managers and to those who hold them accountable. This feedback
will include identification of risky management practices and missing or ineffective internal
controls, areas that are not in compliance with program requirements, and ineffective
implementation. of established policies. To receive points for this factor, you must:
(1) Describe your monitoring plan.
(2) Describe how you will meet the internal audit requirement. Specifically identify the
position(s) and agency responsible for internal audit.
4. Rating Factor 4: Leveraging other funds, or removal of substantial negative effects (10
points;-
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Provide measures of leveraged investments or removal of destabilizing influences that will result
from use of your NSP2 award. This factor is quantitative; HUD will rank order applicant
responses for subparagraph a separately from those for subparagraph b below. Those
applications whose responses rate in the highest third of responders for either subparagraph will
receive the maximum number of points. From the remaining applications, those whose
responses rate in the second third for either subparagraph will receive 5 points. The remaining
applications, those with scores in the lowest third for both subparagraphs, will not receive points
for this factor.
a. Leverage. Leverage is expressed as the ratio of the value of firmly committed
leveraged resources divided by the amount of NSP2 funds for which you are applying. Provide
evidence of firm commitments of specific amounts of non-NSP, non-CDBG, and non-federal
resources for investment in your NSP2 program (not including mortgages resulting from NSP2
down payment assistance to individual homebuyers) from state, local, private nonprofit, or
private for-profit sources. A firm commitment means a written agreement under which you or
another entity agree to perform services or provide resources for an activity specified in your
application. Firm commitments in the form of cash funding (e.g., grants or loans), in-kind
contributions, donated land and construction materials, and donated services will count as
leverage. Leveraging does not include the dollar value of sweat equity and. volunteer labor for
your proposed activities. Leveraging does not include mortgage financing provided to
homebuyers. Leveraged resources or services must be committed in writing and include your
organization's name, the contributing organization's name (including designation as a federal,
state, local, or private source), the proposed type of commitment, and the dollar value of the
commitment as it relates to your proposed NSP2-assisted activities. Each letter of commitment
28
must be signed by an official of the organization legally able to make the commitment on behalf
of the organization. Letters of commitment must be included as an appendix to your application,
and do not count toward the page limitation; or
b. Calculate the value (using the HUD-provided rubric in Appendix 3 and providing
documentation of your calculation, including citation of the data sources) of any destabilizing
influences (such as blighted homes) you propose to remove as part of your NSP2 program.
5. Rating Factor 5: Energy efficiency improvement and sustainable development factors
(10 points)
Describe how you will incorporate specific energy efficient, environmentally friendly or
other sustainable or green elements in some or all of your NSP2 activities.
a. Transit accessibility. HUD will award up to 4 points for this factor for NSP target areas that
are currently transit accessible or that you certify will be made transit accessible during the term
of your NSP2 grant. Transit accessible is defined as being in a census tract with convenient bus
service (local bus service every 20 minutes during rush hour or an express commuter bus); or
being or bordering a census tract with a passenger rail stop or station (including, for example,
commuter rail, subway, light rail, and streetcars). You will receive maximum points for clearly
demonstrating both bus and rail service to all or most of your target geography. You may be
awarded 1 or 2 points if you can demonstrate that all or most of your target geography has good
access to transit or access to regional employment centers that does not require daily private
automobile usage for commuting.
b. Green building standards. HUD will award up to 3 points for applications that comply with the
required NSP2 rehabilitation standards and also demonstrate that new construction and gut
rehabilitation activities will be required to exceed the Energy Star for New Homes standard and.
29
that moderate rehabilitation or energy retrofits will purchase only Energy Star products and
appliances. If you will require NSP2 homes to achieve an established environmental or energy
efficiency standard such as Green Communities or equivalent, you do not need to provide the
entire standard in detail, but you must provide HUD enough information to locate and reference
the standard.
c. Re-use of cleared sites. HUD will award one point if the application demonstrates that all
demolition sites will be re-used within the term of your NSP2 grant as replacement housing, for
use as a community resource, or to provide an environmental function. Examples include
community gardens, pocket parks, or floodplain impoundment areas.
d. Deconstruction. HUD will award one point if you will use deconstruction techniques for your
NSP2 demolition activities. Deconstruction means salvaging and re-using materials resulting
from demolition activities.
e. HUD may award one point for other sustainable development practices you describe and
propose to incorporate into your NSP2 activities. Green practices recommended by HUD as part
of the HOME Investment Partnerships program are included in Appendix 2 as a reference.
6. Rating Factor 6: Neighborhood transformation and economic opportunity (5 points)
HlJD will award the points under this factor if you:
(1) certify that your proposed NSP activities are part of or consistent with an established
comprehensive, regional, or multi jurisdiction plan, such as a transportation, sustainable
development, economic revitalization, or floodplain management plan (you should not submit
the plan, but provide a web address or sufficient information so that HUD may otherwise obtain
a copy of the plan from the authoring agency), and.
(2) describe how your proposed NSP2 activities relate to and increase the effectiveness of
P.R NO. 15317
06/12/2009
Page 5 of 5
EXHIBIT "B"
(AREA SHOWING OUR HIGHEST RATE OF HOUSING
"VACANCY" AND "FORECLOSURE")
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