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PR 22718: AUTHORIZATION TO APPLY FOR THE 2022 CDBG AND HOME APPLICATION TO THE DEPARTMENT OF URBAN DEVELOPMENT
EnerffY „.... 4, City of Cr 4,1 nrt rthitr /c t<r, www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: August 2, 2022 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Pamela Langford, Director of Development Services RE: P. R. #22718 Introduction: The intent of this Agenda Item is to seek the City Council's approval for the 2022 Community Development Block Grant and HOME application to the Department of Housing and Urban Development. Background: Pursuant to the Housing and Urban Development Act of 1974, as amended, Public Law 93-383, the City will submit to the United States Department of Housing and Urban Development (HUD) the 48TH (2022 Program Year) Consolidated Plan as an application for a grant in the amount of $1,082,136 Community Development Block Grant Funds (CDBG) and a grant for$317,978 in HOME funds. The Consolidated Plan is designed to help states and local jurisdictions to assess their affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions. The consolidated planning process serves as the framework for a community-wide dialogue to identify housing and community development priorities that align and focus funding from the CPD formula block grant programs: Community Development Block Grant(CDBG) Program, HOME Investment Partnerships(HOME) Program, Housing Trust Fund(HTF), Emergency Solutions Grants (ESG) Program, and Housing Opportunities for Persons With AIDS (HOPWA) Program. The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan. Grantees report on accomplishments and progress toward Consolidated Plan goals in the Consolidated Annual Performance and Evaluation Report (CAPER). Budget Impact: Community Development Block Grant is the funding source. Recommendation: It is recommended that City Council approve P. R. number 22718. P.R.22718 07/26/22-MEE-Grants Management THAT the City Manager is authorized to apply to the U.S. Department of Housing and Urban Development for a Community Development Block Grant for$1,082,136 and a grant in the amount of$317,978 in HOME funds. THAT the City Manager is authorized to execute the 2022 Consolidated Plan, which refers to a grant to be made by the United States Department of Housing and Urban Development for a Community Development Block Grant for One Million Eighty-Two Thousand One Hundred and Thirty-Six Dollars ($1,082,136) and for HOME funds for Three Hundred Seventeen Thousand Nine Hundred Seventy-Eight Dollars ($317,978) for the 2022 Program Year; and, THAT a copy of the Consolidated Plan is attached hereto in substantially the same form as Exhibit"A"; and, THAT the City Manager is designated to sign all documents in connection with the applications and grant agreements. 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 A.D., 2022 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR COUNCILMEMBERS: P.R.22718 07/26/22-MEE-Grants Management NOES: MAYOR ATTEST: SHERRI BELLARD CITY SECRETARY AP - 'OVED AS TO FORM: h VAL TIZEN CITY ATTORNEY APPROVED FOR ADMINISTRATION: RON BURTON CITY MANAGER PAMELA LANGFORD DEVELOPMENT SERVICES DIRECTOR S:\grants2\48th Year-FY 2022Utesolutions\PR22718 to approve 2022 Annual Plan.docx P.R.22718 07/26/22-MEE-Grants Management EXHIBIT "A" Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction The City of Port Arthur is the lead agency for overseeing the development of the annual Action Plan and the principal public agency responsible for administering programs covered by the Consolidated Plan. The Consolidated Plan sets forth the City of Port Arthur's long-term goals for community development, housing, non-housing, and homeless services.Through the City of Port Arthur's collaborative efforts, its citizens, nonprofit organizations, and service agencies, a five-year investment plan was derived in 2019. The Consolidated Plan establishes the City's five-year goals for providing decent housing, suitable living environments, and expanding economic opportunities for its citizens.These strategies will be achieved by allocating federal funds from the Community Development Block Grant(CDBG), Home Investment Partnership(HOME) programs, and other sources received. The 2022 Consolidated Action Plan summarizes Port Arthur's primary housing and community development needs of low-moderate income households.The program year begins on June 1 and ends on May 31.The 2022 allocations are as follows: • $1,082,136 in Community Development Block Grant (CDBG)funds • $ 317,978 in Home Investment Partnership(HOME)funds Port Arthur will focus on revitalizing its downtown area during this reporting period.The target area will cover Houston Avenue to Memorial Boulevard,4th Street, to Gulfway Drive.The revitalization activities will involve new home construction for low to moderate-income families, demolition/clearance activities, and street reconstruction.The City will also help citizens devastated by tropical storms with the rehabilitation or demolition and reconstruction of their owner-occupied homes.The City will utilize funding from its Federal CDBG, HOME, and HOME-ARP Programs, and funding from the Texas Department of Housing and Community Affairs HOME Investment Partnerships Disaster funds for Housing Assistance Programs and Homebuyers Assistance Program. The HOME Program will fund new home construction, down payment, closing costs assistance, homeowner rehabilitation/reconstruction and homebuyer acquisition, and rehabilitation activities.Ten percent (10%) of the HOME Program funds will be used for HOME Program administrative expenses.The CHDO will be provided a feasible and reasonable developers fee from the HOME Program. CDBG funds returned to the loan program are used for future eligible projects. Annual Action Plan 1 2022 OMB Control No:2506-0117(exp.09/30/2021) The Action Plan also serves as the City of Port Arthur's annual application to the Department of Housing and Urban Development (HUD).The objectives and activities funded in this plan also provide a framework for assessing the City's performance in achieving its overall community development goals. 2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan. The Annual Action Plan contains a range of goals,objectives, and outcomes formulated to address the needs identified in the 2019 Consolidated Plan for homelessness, other special needs, affordable housing, non-housing community development, barriers to affordable housing, lead-based paint hazards, institutional structures, and coordination. These objectives include: • Continue to Plan, Monitor, and Administer Entitlement Grant Programs and ensure compliance with Federal Regulations. • Improve the condition of housing for low-income homeowners. • Increase the Development of units and affordability of housing for homeownership. • Address community needs through community-based public service programs. • Address community needs through improvements and expansion of Public Facilities and Public infrastructure. 3. Evaluation of past performance This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. Port Arthur has a history of successful programs funded through the Community Development Block Grant and HOME Investment Partnership Program. Of particular importance to the City's health has been programs that address the housing stock condition. The City has successfully funded housing rehabilitation activities targeting lower-income and elderly households unable to properly maintain their homes. The City has worked actively with local homeless services providers to expand both the stock of units/beds available to homeless persons and services to help those persons find employment, housing, health care services, and educational opportunities. Past performance details can be found in the City's Consolidated Annual Performance and Evaluation Report (CAPER). Annual Action Plan 2 2022 OMB Control No:2506-0117(exp.09/30/2021) 4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan. To increase public participation in the Consolidated Plan process, the City of Port Arthur conducted two public hearings. The first hearing was held on November 18, 2021, at 6:00 p.m. on Zoom video conferencing. The second public hearing was held on June 28, 2022, at noon,via the Zoom conference toll-free telephone line. The purpose of the hearings was to inform the public of the Consolidated Planning process and solicit comments and suggestions on allocating funds. Notices for the hearings were published in the Port Arthur News and at www.portarthurtx.gov. 5. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. No written comments were received. 6. Summary of comments or views not accepted and the reasons for not accepting them No comments were rejected. 7. Summary This plan provides a framework through which Port Arthur manages its federal entitlement program related to community development and homeless assistance. The data was provided through HUD's eCon software system, utilizing American Community Survey data and other sources to construct the needs assessment. The City worked with local service providers and other concerned citizens to develop the annual action plan that addresses the city's needs as identified through the public participation process and needs assessment. Annual Action Plan 3 2022 OMB Control No:2506-0117(exp.09/30/2021) e kmy to — " C ° -,-- CO c o _o E q § t / C § / o C CU c >-u A f 0 _ © E °E c !WU- o $ \ #CO § 0 f o E E 2#'e / / ) 0 / \ o E o. E c » \ ' ƒ ft ° a) co ro C G a) s C 0 E / CI) \ § f k co a \ \ \ E _o - 3 2 - c 0 \ _ ` = 2 / Co / Co 0 C E k / I- L o > . k k co $ / ƒ k g c •a Cl.) o . 0[ k 2 f f cu $ m E k k 6 .- c k ( E / / . i ƒ c % _ a E `5 e _ S CO C « F 0 = E u c e e C 2 u t eTio e = U 2 E 2 % ƒ t \ $ f f .+7, % t e C nJ k E a CO a o — % c k cc 0_ o / j CO E " / 7 § cc cc cc j - 5 5 & U = 2 = m cu / U \ a) E o < in e > 0_ -o a) CC CC k a) (13 C - W § 3 3 = u o 2 C H H H o 2 » } / / R f O • 0 CL 2 2 0 \ / t / f al E \ < = ƒ / E Co 0. ^ { \ � \ k ƒ ƒ Co t & ° / o Co o E � / > \ § •• m 0 o oo % e ( E a E 3 2 / a _Q ' C a _ § J2 § " ° Co / t c ƒ / \ c 0 u 0 u 2 \ 0 — £ \ o c ° u § m § U) C> L / kcu » E k o f / ^ § © c . o = = E 2 C - / # e 5 a 2 f \ / % H . CU CU 2 4-' a # / ' gMO u t 00 00 > 'V c co c \ E < < Co / / k U / \ CO w £ c E E < f •- U ° o_ $ C \ > 2 CU tIO .- CO DO / \ k k E / / \ - Q co u u o Ce cDts/ / 5 / ? ? 2 i % M / \ \ C o Co 0 a 0 Z F- k H a) 3 < o c 19 a c O N u N U Q ON ro 7 C C a C 0 E .4 4.4 _C vl C 444 -0 N C < 0 O E > N U (13 0 Vrn O D X 0 o t.+ G a a v C c 0 a '' x .� O 0 TS y., Q1 U10' N X v 4.0oo • i i 00 x Z 'pw N t CO tel o .0 w Y t Ql a/ o VI Q Ol ( m co O ro O 2 • 0 E o AP-10 Consultation — 91.100, 91.200(b), 91.215(1) 1. Introduction Port Arthur worked with a wide variety of agencies, organizations, and service providers in an effort to bring various viewpoints to bear in the identification of local housing and community service needs. Port Arthur utilized outside organizations to focus on specific needs and targeted meetings to bring public input into the Annual Plan process. Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1)) The City has an ongoing relationship with several housing providers working on housing development activities. The Port Arthur Housing Authority works to utilize Section 8 vouchers from the federal government to address the City's low-income households' housing needs. Port Arthur maintains a relationship with mental health providers, homeless shelters and services providers, and other governmental agencies with specific responsibilities for homeless individuals and families through the Southeast Texas Coalition for the Homeless. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth)and persons at risk of homelessness. City staff consults with the Southeast Texas Coalition for the Homeless,the local umbrella for developing the Continuum of Care. In the past,the City has provided administrative support to supplement Continuum of Care initiatives and funding to the various agencies that make up the Southeast Texas Coalition for the Homeless. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS Staff from Port Arthur participates in the development of the Continuum of Care,working with area service providers to include City resources,to the extent possible, in the provision of services to homeless individuals and families in Port Arthur. Annual Action Plan 6 2022 OMB Control No:2506-0117(exp.09/30/2021) 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction's consultations with housing, social service agencies and other entities Annual Action Plan 7 2022 OMB Control No:2506-0117(exp.09/30/2021) N C N a - a 01 To — C L fU L L to L V a fo CO E COa Q ,c t N E a a c a) I— + N, C O A vi > C ? vi a ? 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U a C C C y O @ -4 H z CO C 0 N i a) o 0 LrtN .0 • 10 O = Z .0 t c • L< U in t co oaQ o N t' N u Q N (6 C N 0 (13 0 Cl E C ,.• a N V1 L •-1 t O f0 tO wE 0 Lin _ Ec •O O s- 0- a ; 00 u M 0.1 v° I • o Q a 0 1 Project Name Court Appointed Special Advocates Target Area CDBG Eligible Block Groups Goals Supported Public Service Objective 4- Health and Security Needs Addressed Domestic Violence/Child Abuse Funding CDBG: $12,500 Description Court Appointed Special Advocates of Southeast Texas, Inc. is a non- profit service organization that recruits, trains, and supervises a diverse group of community volunteers appointed by the courts to advocate for abused and neglected children. Grant funds will cover the salary of counselors that work with children living in the City of Port Arthur. Eligibility:570.201(e) National Objective: low to Moderate Limited Clientele. Target Date 5/31/23 Estimate the number Approximately five children will benefit from the proposed activity. and type of families that will benefit from the proposed activities Location Description Planned Activities Grant funds will be used for operating costs associated with caring for children in the Court Appointed Special Advocate (CASA) program. Eligibility: 570.201(e) National Objective: Low to Moderate Limited Clientele 2 Project Name Nutrition and services for seniors Target Area CDBG Eligible Block Groups Goals Supported Public Service Objective 5-Seniors Needs Addressed Senior Nutrition, Meals/Food Funding CDBG: $1,800,000 Description Nutrition and services for seniors deliver meals-on-wheels to house- bound senior citizens and prepare meals at dining sites for senior citizens of Port Arthur. Eligibility: 570.201(e) National Objective: Low to Moderate Limited clientele Target Date 5/31/23 Annual Action Plan 26 2022 OMB Control No:2506-0117(exp.09/30/2021) Estimate the number Approximately five seniors will benefit from the program. and type of families that will benefit from the proposed activities Location Description Planned Activities Nutrition and Services for Seniors will deliver meals-on-wheels to homebound senior citizens and the disabled. 3 Project Name IBN Sina Foundation Target Area CDBG Eligible Block Groups Goals Supported Public Service Objective 4- Health and Security Needs Addressed Health Services Funding CDBG: $8,000 Description IBN Sina will provide low Target Date 5/31/23 Estimate the number Approximately 100 individuals will benefit from the proposed activity. and type of families that will benefit from the proposed activities Location Description Planned Activities Provide low-cost healthcare services for uninsured low-income individuals and families. 4 Project Name Catholic Charities Target Area CDBG Eligible Block Groups Goals Supported Public Service Objective 4- Health and Security Needs Addressed Homeless Support Services, Transportation Funding CDBG: $30,000 Description Grant funds will be used to pay for utilities and the salary of a security officer at the Hospitality Center. The Hospitality Center is a soup kitchen that serves one hot meal daily to Port Arthur's homeless and low-income residents. Eligibility 570.201(e) National Objective: Low to Moderate Limited Clientele Presumed Low to Moderate Income benefit. Target Date Annual Action Plan 27 2022 OMB Control No:2506-0117(exp.09/30/2021) Estimate the number Approximately 1000 families will benefit from the meals served at the and type of families Hospitality Center. that will benefit from the proposed activities Location Description Planned Activities Hospitality Center is a soup kitchen that serves one hot meal daily to Port Arthur's homeless and low-income residents. Eligibility 570.201(e) National Objective: Low to Moderate Limited Clientele Presumed Low to Moderate Income benefit. 5 Project Name Tender Loving Care dpa Legacy CDC Target Area CDBG Eligible Block Groups Goals Supported Public Service Objective 1- Homebuyer Counseling Needs Addressed Homebuyer Counseling, Financial Literacy Funding CDBG: $15,000 Description Requesting CDBG funds for a homebuyer's counseling classes for low to moderate-income families. Eligibility: 570.201(e) National Objective: Low to Moderate Limited Clientele Target Date 5/31/23 Estimate the number Approximately five families will benefit from the activity. and type of families that will benefit from the proposed activities Location Description Planned Activities Requesting CDBG funds for homebuyers' counseling classes for low to moderate-income families. Eligibility: 570.201(e) National Objective: Low to Moderate Limited Clientele. 6 Project Name Gift of Life Target Area CDBG Eligible Block Groups Goals Supported Public Service Objective 6- Health Prevention Needs Addressed Health Services Funding CDBG: $10,000 Annual Action Plan 28 2022 OMB Control No:2506-0117(exp.09/30/2021) Description Grant funds will be used for operating expenses related to the Gift of Life cancer screening program. The screening program will target low and moderate-income families. Eligibility: 570.201(e) National Objective: Low to Moderate Limited Clientele Target Date 5/31/23 Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities Grant funds will be used for operating expenses related to the Gift of Life cancer screening program. The screening program will target low and moderate-income families. Eligibility:570.201(e) National Objective: Low to Moderate Limited Clientele 7 Project Name Grants Management Target Area CDBG Eligible Block Groups Goals Supported Administration Objective Needs Addressed Public and Community Facilities Parks and Recreation Facilities Senior Services Homebuyer Counseling, Financial Literacy Health Services Senior Nutrition, Meals/Food Funding CDBG: $70,000 Description Community Development Block Grant funds will be used to cover administrative expenses for the Grants Management staff.The U. S. Department of Housing and Urban Development notified the City of Port Arthur by letter, receipted on November 9, 2020, of an error in HUD"s initial formula allocation for fiscal year(FY) 2020 Community Development Block Grant (CDBG)and HOME Investment Partnerships (HOME) program grants. The original CDBG allocation was$1,152,703 and the adjusted CDBG allocation is$1,152,571. The$132 decrease will reduce the Grants Management budget from $80,000 to $79,868. Target Date 5/31/23 Annual Action Plan 29 2022 DMB Control No:2506-0117(exp.09/30/2021) Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities Community Development Block Grant funds will be used to cover administrative expenses for the Grants Management staff. 8 Project Name Willie Carter Community Outreach Target Area CDBG Eligible Block Groups Goals Supported Public Service Objective 6- Health Prevention Needs Addressed Health Services Funding CDBG: $12,000 Description Willie Carter Community Outreach will provide substance abuse counseling. Target Date 5/31/23 Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities 9 Project Name Housing Assistance Administration Target Area CDBG Eligible Block Groups Goals Supported Housing Objective 1- Minor Rehabilitation Housing Objective 2- Major Rehabilitation Needs Addressed Housing Assistance - Homeownership Housing Rehabilitation Housing Development and Reconstruction Funding CDBG: $218,800 Description Grant funds will be used for administrative expenses for the Housing Assistance Programs.Eligibility:570.202 (b)National Objective: Low to Moderate Housing Annual Action Plan 30 2022 OMB Control No:2506-0117(exp.09/30/2021) Target Date 5/31/23 Estimate the number A total of approximately nineteen low-moderate families will benefit and type of families from the housing projects. that will benefit 10 extremely low income, 5 low income and 4 moderate income families from the proposed will be assisted. A minimum of 10 families will be minority activities Location Description The location for the housing assistance programs will be City wide in CDBG targeted areas. Planned Activities Salaries for Housing staff to administer the Housing Assistance Programs. 10 Project Name City of Port Arthur Parks and Recreation Department Target Area CDBG Eligible Block Groups Goals Supported Public Facilities Objective 1-Streets Needs Addressed Public and Community Facilities Funding CDBG: $142,836 Description Grant funds will be used for park improvement projects in CDBG-eligible areas of the city. Eligibility: 570.201(c) National Objective: Low to Moderate Area Project location in one or more of the following Low/Moderate-income Census Areas: 51,53,54,55,56,61,63,64,66,67, and 101. Target Date 5/31/23 Annual Action Plan 31 2022 OMB Control No:2506-0117(exp.09/30/2021) Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities 11 Project Name Housing Assistance- Demolition and Reconstruction Target Area CDBG Eligible Block Groups Goals Supported Housing Objective 2- Major Rehabilitation Needs Addressed Fair Housing Outreach and Education Housing Development and Reconstruction Funding CDBG: $445,000 Description 570.202 (b) National Objective: Low to Moderate Housing Target Date 5/31/23 Estimate the number Approximately five low-moderate families will benefit from the housing and type of families projects. that will benefit 3 extremely low income, 2 low income and 4 moderate income families from the proposed will be assisted.A minimum of 2 families will be minority activities Location Description The projects will be City wide in eligible CDBG target areas. Annual Action Plan 32 2022 OMB Control No:2506-0117(exp.09/30/2021) Planned Activities Low and moderate income families will be assisted with the demolition and reconstruction of their homes on the same lot. 12 Project Name Housing Assistance for Emergency and Minor Rehabilitation Target Area CDBG Eligible Block Groups Goals Supported Housing Objective 1- Minor Rehabilitation Housing Objective 2 - Major Rehabilitation Needs Addressed Housing Rehabilitation Housing Development and Reconstruction Funding CDBG: $100,000 Description 570.202 (b) National Objective: Low to Moderate Housing Assistance will be provided on an emergency basis to alleviate immediate threats to the health and safety of low-and moderate-income families. Target Date 5/31/23 Estimate the number Approximately ten low-moderate families will benefit from the housing and type of families projects. that will benefit 4 extremely low income,4 low income and 2 moderate income families from the proposed will be assisted. A minimum of 2 families will be minority activities Location Description The housing assistance will be provided City wide in eligible CDBG target areas Annual Action Plan 33 2022 OMB Control No:2506-0117(exp.09/30/2021) Planned Activities Assistance will be provided on an emergency basis to alleviate immediate threats to the health and safety of low and moderate income families. A total of ten families will be assisted. Annual Action Plan 34 2022 OMB Control No:2506-0117(exp.09/30/2021) AP-50 Geographic Distribution — 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Much of the funding from the CDBG and HOME programs is available for use in any of the CDBG neighborhoods or citywide, depending on the specifics of the designated activities. Also, some funding is available according to individual benefit rather than area benefit. It is,therefore, challenging to provide reasonable projections of the distribution of funds by a target area. The numbers below are strictly estimates based on experience. Geographic Distribution Target Area _ Percentage of Funds CDBG Eligible Block Groups 100 Table 8-Geographic Distribution Rationale for the priorities for allocating investments geographically The proposed allocation of funds is based on federal funding requirements for each formula-allocated grant. Areas of low to moderate-income concentration and certain areas of high minority concentration are targeted. Areas of low homeownership and deteriorating housing conditions were also considered in the targeting process. Discussion The distribution of funds by target area is projected to be primarily citywide due to use of funds for administrative, non-profit support, and individual benefit-oriented programmatic uses of the funds. The remaining funds are estimated to be spread through smaller CDBG-eligible areas. Annual Action Plan 35 2022 OMB Control No:2506-0117(exp.09/30/2021) Affordable Housing AP-55 Affordable Housing— 91.220(g) Introduction The City's priority&objective is to continue to help provide affordable, decent&safe homes for eligible citizens and those that were impacted by Hurricane Harvey, and those living in substandard housing conditions. Assistance will help low/moderate-income homebuyers fulfill the American Dream of homeownership being a priority within the city. Housing assistance is provided for Homebuyers& homeowners utilizing HOME funds will require the initial purchase price of housing assisted not to exceed 95%of the ami cost for single-family housing, as is in accordance with 24 CFR 92.254(a)(2)(iii) & in the income guidelines provided by HUD. HOME funds will be used to assist buyers with down payment costs associated with purchasing homes as a direct benefit to the buyers. Federal CDBG & HOME funds will be used to assist with emergency rehabilitation or demo/reconstruction of homes.The City will convey property as needed to homeowners living on substandard lots. Port Arthur's one-year goal is to provide affordable housing to 14 non-homeless& special needs households with available funds to the jurisdiction. 10 of the 14 participants will be minorities. Down payment assistance will be up to$40K to purchase new homes &$14,995 to purchase existing homes. Annual Action Plan 36 2022 OMB Control No:2506-0117(exp.09/30/2021) One Year Goals for the Number of Households to be Supported Homeless 0 Non-Homeless 19 Special-Needs 0 Total 19 Table 9-One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 4 Rehab of Existing Units 15 Acquisition of Existing Units 0 Total 19 Table 10-One Year Goals for Affordable Housing by Support Type Discussion These figures relate to production targets specified in the annual goals for 2022. CDBG and HOME funding for these activities may target more households. Annual Action Plan 37 2022 OMB Control No:2506-0117(exp.09/30/2021) AP-60 Public Housing — 91.220(h) Introduction The Port Arthur Housing Authority operates a Section 8 and Project-Based Voucher Program. The Housing Authority manages the following Project-Based Voucher apartments: Edison Square-a newly constructed 78-unit Project-Based Voucher elderly site; Park Central apartments-a newly built 186-unit complex with 45-Project Based Voucher rental assisted units and 92 RAD Project-Based units. Under the Veterans Affairs Supportive Housing (VASH) Program, 21 veterans are being helped. These participants are in addition to the Housing Authority's Section 8 Housing Choice Voucher holders. The Housing Authority will continue to seek avenues to leverage private or other public funds to create additional housing opportunities and improve collaboration with community and national partners to assist homeless individuals. Actions planned during the next year to address the needs to public housing There are no actions planned for the use of CDBG or HOME in the coming year to address public housing needs. Actions to encourage public housing residents to become more involved in management and participate in homeownership The Port Arthur Housing Authority administers a homeownership program under the Section 8 Housing Choice Voucher Program with 11 homeowners. The goal is to provide or attract supportive services to improve assistance recipients' employability and increase independence for the elderly or families with disabilities, leading to a path of homeownership. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance The Port Arthur Housing Authority is not designated as troubled. The Port Arthur Housing Authority is rated as a High Performer. Discussion Annual Action Plan 38 2022 OMB Control No:2506-0117(exp.09/30/2021) AP-65 Homeless and Other Special Needs Activities— 91.220(i) Introduction The City of Port Arthur is active in the Southeast Texas Homeless Coalition, addressing issues related to homeless in the region. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The Southeast Texas Homeless Coalition is a coalition of local homeless service agencies that conduct annual surveys of homeless individuals, including unsheltered persons.These surveys help focus agency activities for the coming year and provide documentation in response to HUD program requirements. Addressing the emergency shelter and transitional housing needs of homeless persons The City of Port Arthur will use its HOME-ARP funding to work with service providers to address the needs of the homeless and other vulnerable populations. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again The City of Port Arthur will expend its HOME-ARP funding to work with service providers to address the needs of the homeless and other vulnerable populations. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, Annual Action Plan 39 2022 OMB Control No:2506-0117(exp.09/30/2021) employment, education, or youth needs. Homeless prevention is a significant focus of the Southeast Texas Homeless Coalition participants. Discussion The Southeast Texas Homeless Coalition participants work closely together to meet the needs of homeless individuals and families. Annual Action Plan 40 2022 OMB Control No:2506-0117(exp.09/30/2021) AP-75 Barriers to affordable housing — 91.220(j) Introduction: The City of Port Arthur has no policies in place that hinders the availability of affordable housing. Although no action or reform steps are required,the City will continue to seek resourceful and innovative ways to make affordable housing available to all residents. No public policies were identified that have negative effects on affordable housing development. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Port Arthur doesn't anticipate any negative effects of public policies that serve as a barrier to affordable housing. Discussion: Port Arthur has worked to reduce the effects of public policy on affordable housing development over the past few years. While there are a number of market forces at work that make affordable housing development difficult, as discussed in the Market Analysis, the impact of public policy is not a major factor. Annual Action Plan 41 2022 OMB Control No:2506-0117(exp.09/30/2021) AP-85 Other Actions— 91.220(k) Introduction: The City currently provides a variety of services to the residents of Port Arthur, some funded by CDBG and HOME allocations,with private,State, and City funding bringing additional assets to bear on these problems. Below are some of the actions currently performed by the City or under consideration for the future. Actions planned to address obstacles to meeting underserved needs The City will continue to look for new funding sources for programs to address underserved needs. Funding is the major obstacle in providing the services needed to focus on the vast variety of issues that prevent families from breaking out of poverty and from living in the best, most affordable housing possible. Actions planned to foster and maintain affordable housing The City will consider providing financial assistance for Tax Credit Projects for affordable housing development to expand multi-family rental development projects and homeownership opportunities when those projects are present for review. Additionally, acquisition, soft costs and site development funds will be used for affordable housing development. Consideration for additional funding will be given upon completion of the pre-development phase. Actions planned to reduce lead-based paint hazards • Continue to meet HUD lead-based paint abatement standards in housing rehabilitation programs. • Seek funding as it becomes available to provide testing and abatement of lead-based paint hazards in single-family housing where young children are present. • Expand the stock of lead safe housing units through housing initiatives. • Seek funding as it becomes available to provide for testing, abatement,training, and educational awareness. Actions planned to reduce the number of poverty-level families The City will continue its efforts with the Southeast Texas Homeless Coalition. The Coalition's mission is to reduce the number of poverty-level families by developing services needed to assist those families with educational opportunities,job growth, and life skills training through the various social service Annual Action Plan 42 2022 OMB Control No:2506-0117(exp.09/30/2021) agencies in the City. Actions planned to develop institutional structure • Work with non-profit organizations to address community needs and provide support to federal and non-federal funding initiatives. • Work with private industry to address important issues that hamper housing and community development efforts. • Identify opportunities to create private/public partnerships for project finance and development to leverage federal funds. Actions planned to enhance coordination between public and private housing and social service agencies The City will continue coordinating planning activities with private housing and social service agencies, including participation in the Southeast Texas Homeless Coalition meetings and enumeration of point-in- time and homeless surveys. City staff will also continue its involvement in other coalitions and study groups as the opportunity arises. Discussion: These actions are primarily the continuation of what the City is currently doing in various areas. No significant obstacles in the institutional structure have been identified that need to be addressed. The City is also satisfied with its efforts to coordinate with private housing and social agencies. Port Arthur has worked to reduce the effects of public policy on affordable housing development over the past few years. While there are a number of market forces at work that make affordable housing development difficult, as discussed in the Market Analysis, the impact of public policy is not a major factor. These actions are primarily the continuation of what the City is currently doing in various areas. No major obstacles in the institutional structure have been identified that need to be addressed. The City is also satisfied with its efforts to coordinate with private housing and social service agencies. Annual Action Plan 43 2022 OMB Control No:2506-0117(exp.09/30/2021) Program Specific Requirements AP-90 Program Specific Requirements — 91.220(I)(1,2,4) Introduction: The following provides details on program-specific requirements for each of the entitlement programs, Community Development Block Grant, and HOME Investment Partnership. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(1)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table.The following identifies program income that is available for use that is included in projects to be carried out. 1.The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2.The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0 3.The amount of surplus funds from urban renewal settlements 0 4.The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0 5.The amount of income from float-funded activities 0 Total Program Income: 0 Other CDBG Requirements 1. The amount of urgent need activities 0 2.The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit-A consecutive period of one,two or three years may be used to determine that a minimum overall benefit of 70%of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 80.00% HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(1)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: The City will continue to support the many efforts of the non-profits and social service provider Annual Action Plan 44 2022 OMB Control No:2506-0117(exp.09/30/2021) agencies in the community in their efforts to obtain funding from various sources for their programs. Many of these organizations receive private donations to sustain their programs,and most apply for funding on the federal, state, and local level. The availability of federal funds would enhance any of the listed programs and would mean that more services, and housing, could be provided. Because of the scarcity of any type of funding,the City has been working with various organizations to try to develop programs that would increase the leveraging capacity of federal funding mechanisms so that more money would be available for other needed endeavors. Better use of the existing resources is a main concern of everyone. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: The HOME Recapture Provisions are established §92.253(a) (5) (ii) and permits the original homebuyer to sell the property to any willing buyer during the period of affordability. The repayment conditions for the FTHB assistance stated previously outlines the shared market appreciation also referred to as the share of net proceeds. Recapture provisions are in effect for periods from thirty years from the date of each settlement. Recapture is enforced through deed restrictions to ensure that the entire amount of HOME assistance to homebuyers is recouped if the housing does not continue to be the principal residence of the family for the duration of the period of affordability. The Federal funds invested is secured by a Written Loan Agreement and a recorded Second Lien Deed of Trust and a Borrower Agreement Note of which the principal amount of the Note represents funds advanced by City to or for the borrowers benefit to assist them in paying part of the purchase price of the Property or the closing costs on the Property or both. On the same date as the date of the Note,the borrower will have entered into an agreement with City that the borrower will, among other things, continue to use the Property as their principal residence and will use the Property low income housing as defined in such agreement for a period of 10 years after the date of the Note. If for any reason the borrower default under any of the provisions of the Borrower Agreement,then the City will accelerate the maturity of the Note and recoup all or portion of the HOME assistance to the homebuyers if the housing does not continue to be the principal residence of the family for the duration of the period of affordability in compliance with 24 CFR 92.254(a)(5)(ii). The period of affordability is based on the total amount of HOME funds initially invested in the Annual Action Plan 45 2022 OMB Control No:2506-0117(exp.09/30/2021) housing. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds?See 24 CFR 92.254(a)(4) are as follows: Recapture Provisions will be utilized by the City of Port Arthur. The City of Port Arthur utilizes the HOME Recapture Provisions as established §92.253(a) (5) (ii)and permits the original homebuyer to sell the property to any willing buyer during the period of affordability. The repayment conditions for the FTHB assistance outlines the shared market appreciation also referred to as the share of net proceeds. The City is subject to the limitation that when the recapture requirements are triggered by a sale (voluntary or involuntary)of the housing unit, the amount recaptured cannot exceed the net proceeds, if any.The net proceeds are the sales price minus superior loan repayment(other than HOME funds)and any closing costs in compliance with 24 CFR 92.254(a)(5)(ii)(A). If, on the sale, lease, lease with an option to purchase,transfer or other disposition (including any contract for deed) of all or any interest in the Property, the Borrowers Agreement is still in effect and the borrower still owe amounts under the Note, Note Holder may require payment in full of sums owed hereunder as ore specifically provided by the Second Lien Deed of Trust (hereinafter defined) and the date upon which Note Holder requires such payment in full for any reason hereunder is called the maturity date. The borrower will make payments to the City of Port Arthur as Note Holder at a designated place or at a different place if required by the Note Holder. The indebtedness evidence by the Note, and any other financial obligation which may hereafter be imposed on borrower by the Lender, is subordinate to the indebtedness evidence by a note payable to a senior lender(Senior Lien Holder), which note is secured by a first deed of trust (the First Deed of Trust) dated of even date therewith encumbering certain real property located in Port Arthur, Texas. The period of affordability is based on the total amount of HOME funds initially invested in the housing. 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: The City does not intend to use HOME funds to refinance existing debt secured by multifamily housing that is being rehabilitated with HOME funds. In addition, the funds will not be used to refinance multifamily loans made or insured by any federal program.The City is aware that HOME Annual Action Plan 46 2022 OMB Control No:2506-0117(exp.09/30/2021) funds cannot be used to refinance multifamily loans made or insured by any federal program, including CDBG. The City strives to meet all program specific requirements as detailed in the enabling legislation and program guidelines.City staff work with subgrantees to ensure that these requirements are met and oversees internal operations towards the same goal. Annual Action Plan 47 2022 OMB Control No:2506-0117(exp.09/30/2021) Emergency Solutions Grant (ESG) Reference 91.220(1)(4) 1. Include written standards for providing ESG assistance (may include as attachment) The City does not receive ESG funding. 2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system. N/A 3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations). N/A 4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG. N/A 5. Describe performance standards for evaluating ESG. N/A Annual Action Plan 48 2022 OMB Control No:2506-0117(exp.09/30/2021)