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HomeMy WebLinkAboutPR 23909: REQUESTING AUTHORIZATION TO APPLY FOR A HUD PRO HOUSING GRANT P.R.23909 September 6,2024 BAF—Housing Page 1 „, -(44)'' ///:31) DEPARTMENT OF DEVELOPMENT SERVICES DIVISION OF HOUSING & NEIGHBORHOOD REVITALIZATION Date: September 6, 2024 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM, City Manager From: Beverly A. Freeman, Housing &Neighborhood Revitalization Manager RE: Proposed Resolution 23909—Requesting authorization to apply for a HUD PRO Housing Grant Nature of Request: It is recommended that the City Council adopt Proposed Resolution 23909 authorizing the City Manager to file an application with HUD for a PRO Housing Pathways to Removing Obstacles to Housing Grant. Staff Analysis, Consideration: HUD is issuing this second PRO Housing NOFO under the authority of the Consolidated Appropriations Act,2024(Public Law 118-12242, approved March 9,2024)(Appropriations Act), which appropriates $100 million for competitive grant funding for the identification and removal of barriers to affordable housing production and preservation. Congress has directed HUD to undertake a competition using the Community Development Block Grant (CDBG) statutory and regulatory framework. Under this NOFO, HUD will provide PRO Housing grants to identify and remove barriers to affordable housing production and preservation. Grantees may use awards for sustainable actions to further develop, evaluate, and implement housing policy plans, improve housing strategies, and facilitate affordable housing production and preservation. Eligible applicants are State and local governments, metropolitan planning organizations (MPOs), and multijurisdictional entities. The HUD PRO Housing Pathways to Removing Obstacles supports communities that are actively taking steps to remove barriers to affordable housing, such as: • Barriers caused by outdated zoning, land use policies, or regulations; S:Federal Program Housing Files\Documents\Reso.Ord.PRO Houssng Grant P.R.23909 September 6,2024 BAF—Housing Page 2 • Inefficient procedures; • Gaps in available resources for development; • Deteriorating or inadequate infrastructure; • Lack of neighborhood amenities; or • Challenges to preserving existing housing stock such as increasing threats from natural hazards, redevelopment pressures, or the expiration of affordability requirements. In collaboration with Legacy CDC, the City of Port Arthur desires to apply for a PRO Housing Grant due to a lack of affordable housing production and preservation to assist with meeting the increasing demand for accessible and available units in exceptionally high-opportunity areas. In addition, the awards can be used for sustainable actions to further develop, evaluate, and implement housing policy plans, improve housing strategies, address inadequate infrastructure, and facilitate affordable housing production and preservation and other eligible activities as may be desired by the City Manager. The application deadline is October 14, 2024. Budget Impact: The HUD Pro Housing Grant will provide all budgetary funding. Recommendation: It is recommended that the City Council adopt Proposed Resolution 23909 authorizing the City Manager to file an application with HUD for a PRO Housing Pathways to Removing Obstacles to Housing Grant. S:Federal Program Housing Files\Documents\Reso.Ord.PRO Houssng Grant P.R.23909 September 6,2024 BAF—Housing Page 3 RESOLUTION NUMBER A RESOLUTION AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FOR A PRO HOUSING PATHWAYS TO REMOVING OBSTACLES GRANT FUNDING. WHEREAS, the U. S. Department of Housing and Urban Development (HUD) has funding available for a PRO Housing Pathways to Removing Obstacles Grant for communities who are actively taking steps to remove barriers to affordable housing as delineated in Exhibit "A"; and WHEREAS, HUD is issuing this second PRO Housing NOFO under the authority of the Consolidated Appropriations Act, 2024 (Public Law 118-12242, approved March 9, 2024) (Appropriations Act), which appropriates $100 million for competitive grant funding for the identification and removal of barriers to affordable housing production and preservation. Congress has directed HUD to undertake a competition using the Community Development Block Grant (CDBG) statutory and regulatory framework. Under this NOFO, HUD will provide PRO Housing grants to identify and remove barriers to affordable housing production and preservation; and WHEREAS, successful Grantees may use awards for sustainable actions to further develop, evaluate, and implement housing policy plans, improve housing strategies, and facilitate affordable housing production and preservation; and WHEREAS, the HUD PRO Housing Pathways to Removing Obstacles Grant supports communities who are actively taking steps to remove barriers to affordable housing; and WHEREAS,it is recommended to apply for this grant due to a lack of affordable housing production and preservation,which is necessary to meet the increasing demand for accessible and available units in exceptionally high-opportunity areas. In addition, the awards can be used for sustainable actions to develop further, evaluate, and implement housing policy plans, improve S:Federal Program Housing Files\Documents\Reso.Ord.PRO Houssng Grant P.R.23909 September 6,2024 BAF—Housing Page 4 housing strategies, address inadequate infrastructure, and facilitate affordable housing production and preservation and other eligible activities as may be desired by the City Manager and authorized by the City Council; and WHEREAS,the application deadline is October 14, 2024; and WHEREAS, the City of Port Arthur, in collaboration with Legacy CDC, does wish to apply for a PRO Housing Grant; and WHEREAS,Ronald Burton, City Manager, is authorized to file an application with HUD for the PRO Housing Pathways to Removing Obstacles Grant; and WHEREAS, Ronald Burton, City Manager, is authorized to represent the City of Port Arthur, Texas, and also has signature authority to execute a Contract and grant agreement or other documents, as applicable, unless otherwise stated. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR; THAT,the facts and opinions in the preamble are true and correct. THAT,Ronald Burton, City Manager, is hereby authorized to submit application to HUD for the PRO Housing Pathways to Removing Obstacles Grant as delineated in Exhibit"A". THAT, Ronald Burton, City Manager, is authorized to represent the City of Port Arthur, Texas and also has signature authority to execute a Contract and grant agreement or other documents, as applicable, unless otherwise stated. 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 October, A. D., 2024, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers: S:Federal Program Housing Files\Documents\Reso.Ord.PRO Houssng Grant P.R.23909 September 6,2024 BAF—Housing Page 5 NOES: • Thurman B. Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: Roxann Cotroneo, City Attorney APPROVE ) FO ) INISTRATION: 1‘14fr- Ronald Burton, CP City Manager Beverly A. Fre an, Housing& Neighborhood Revitalization Manager S:Federal Program Housing Files\Documents\Reso.Ord.PRO Houssng Grant P.R.23909 September 6,2024 BAF—Housing Page 6 EXHIBIT 66 ,, PRO Housing Pathways to Removing Obstacles Grant Application S:Federal Program Housing Files\Documents\Reso.Ord.PRO Houssng Grant 1k_ PRO Pathways to Removing Obstacles Grant Application October 2024 144 t, ........„:„. City of 4 )4) ii % ort rthurc '�_ Texas City of Port Arthur P.O. Box 1089 Port Arthur, TX 77641 (409) 983-8251 Table of Contents Table of Contents 1 Executive Summary 2 NEED: DEMAND FOR AFFORDABILITY IN PORT ARTHUR 3 Progress and Commitment to Overcoming Local Barriers 3 Boundaries of NRSA Areas 3 Housing Rehabilitation Efforts 4 Disaster Recovery and Land Banking 4 Acute Demand for Affordable Housing 4 Regional Analysis and Economic Development 4 Infrastructure Investments 5 Key Barriers to Affordable Housing Production and Preservation 5 Demographics 6 Table 1: Population Changes 2010-2023 6 Table 2: Housing Affordability 6 Table 3: Housing Age and Conditions Area 3 7 Table 4: Cost Burden Households 7 Table 5: Brownfield Properties 8 SOUNDNESS OF APPROACH 8 Vision 8 PRO Housing Project 1: Remove Financial Obstacles to Affordable Housing Production 9 PRO Housing Project 2: Rehabilitation of 50 Owner-occupied Homes 9 PRO Housing Project 3: Create Homeownership Opportunities for 100 Low-to Moderate-Income Families (LMI) 9 PRO Housing Project 4: Educate 600 Families on Financial Literacy and Homeownership 10 PRO Housing Project 5:Analyze and Assess the Need for 200 Additional Affordable Units 10 Geographic Scope 10 Stakeholders 10 Strategy for Evaluating Stakeholder Engagement 12 Affirmatively Furthering Fair Housing (AFFH) 13 Budget and Timeline. 15 Capacity 16 LEVERAGE 18 LONG-TERM EFFECT 18 APPENDICES 21 A. Eligible Applicants Documentation 21 B. Evidence of Partnership Letters 21 C. Leverage Documentation 21 D. Application Certifications and Standard forms 21 City of Port Arthur PRO Housing Grant Application Page 1 Executive Summary Port Arthur stands at a crossroads,where the need for affordable, safe, and accessible housing has never been more urgent. Decades of aging infrastructure, rising housing costs,and double digit unemployment have left many residents struggling to find stable homes,particularly in the downtown and neighboring areas. The devastation of Hurricane Harvey in 2017 only intensified the city's housing crisis, flooding 80-90%of the city, and damaging or destroying 75-80%of homes,most of which belonged to low-and moderate-income families. Recovery has been slow, and many residents remain displaced or living in severely damaged homes. For the city's low-and moderate-income families (LMI), first-time homebuyers, and residents with disabilities,the dream of secure housing is often out of reach. Yet, in the face of these challenges, Port Arthur is determined to chart a new path forward—one where every resident has the chance to thrive in a home that meets their needs. Through the FY24 Pathways to Removing Obstacles to Housing(PRO Housing)grant,the City of Port Arthur aims to address these systemic barriers by implementing strategic initiatives designed to lower long-term housing costs, and create equitable access to affordable housing. The city will focus on streamlining housing development procedures, improving critical infrastructure,and addressing pressures caused by natural disasters such as hurricanes, flooding, and tornadoes. Additionally,the city recognizes the acute need for affordable housing among renters, especially those with extremely low incomes. Overcrowding and housing cost burdens are prevalent, as many households struggle to afford their housing expenses, affecting their overall quality of life. This grant will also focus on preserving and rehabilitating Port Arthur's aging housing stock, ensuring that current homes remain safe and viable for future generations. Port Arthur's housing challenges extend to its disabled population, which makes up 15.6%of the city's residents. The need for accessible housing is particularly pronounced among older residents, as 42.4%of individuals aged 65-74 and 56.2%of those over 75 have disabilities. By incorporating accessible design into new developments and rehabilitating existing homes,the city will ensure that people with disabilities have access to housing that meets their specific needs. Port Arthur's initiatives align with the core objectives of the PRO Housing program by empowering communities to remove barriers to affordable housing. Leveraging the resources of this grant will allow the city to foster a more inclusive housing environment that meet the needs of all residents. Our comprehensive strategies will increase the availability of affordable units, improve neighborhood amenities, and ensure long-term housing stability for underserved communities. With the PRO Housing grant, Port Arthur will continue making strides toward housing equity, ensuring that all residents—regardless of income, ability, or background-can access affordable, safe, and high-quality housing, now and in the future. City of Port Arthur PRO Housing Grant Application Page 2 NEED: DEMAND FOR AFFORDABILITY IN PORT ARTHUR Progress and Commitment to Overcoming Local Barriers The City of Port Arthur has made significant progress in addressing local barriers to affordable housing production and preservation. In recent years, we have actively reviewed and updated several zoning and land-use policies that previously restricted housing development. By streamlining approval processes and reducing administrative delays,we have cleared the path for new housing projects. This has allowed for the development of higher-density, mixed-use projects that support affordability and accessibility for residents of all income levels. Moreover, our leadership has focused on fostering public-private partnerships to ensure the preservation of affordable housing as existing units near the expiration of affordability requirements, ensuring a long-term commitment to housing equity. As part of the City's Five-Year 2024-2028 Consolidated Plan,we sought HUD approval to designate five local target areas as Neighborhood Revitalization Strategy Areas(NRSA). These areas have been identified for revitalization due to their high concentrations of low- and moderate-income (LMI) households and deteriorating infrastructure. In NRSA Area 4, 63%to 87%of the population across various census tracts are considered low-income, and NRSA Area 3 shows a similar trend,with low-income households comprising 51.9%to 90.4%of the population. Boundaries of NRSA Areas • NRSA Area 3: Bounded to the north by 19th Street, Lean to the south by Seawall/Lakeshore Drive along ,il ; ` �', Sabine Lake,with Woodworth Boulevard forming the ..-t-' '' eastern boundary and Houston Street marking the °-'.- . -! -` , . 6 west. : Arca-3 r__ 1 1 a ' ' :ass as , t y�� V ii Ili i It i r1 . a t , i I_(. ' 1.-y- I � • NRSA Area 4: Enclosed by Highway 73 to the north � y'"`t1 #- '' `---- and Lakeshore Drive to the south along Sabine Lake. n vtor The eastern boundary includes Twin City Highway, i Jefferson Drive, and Stadium Drive, with Memorial t "°E .f : +►;�„<+►,r;R„ Boulevard and Woodworth Boulevard marking the fi;3 r— tar WOst. 'J wry, roc*. .ir•-�4 PS rag/ faZ.`Ntifilliao 4 „ 1 " ils It illadour . ; re -.� City of Port Arthur PRO Housing Grant Application Page 3 Housing Rehabilitation Efforts To meet housing needs, Port Arthur utilized federal funds through the Community Development Block Grant(CDBG) and the HOME Investment Partnerships Program(HOME). These funds are critical for rehabilitating the city's older housing stock,much of which predates modern building codes. In NRSA Area 4, 26%of the housing stock was built between 1950 and 1959, with an additional 16%constructed in the 1960s. To mitigate the risks associated with aging infrastructure,the City has launched rehabilitation programs that provide forgivable loans for emergency repairs, full home rehabilitations, and new construction for homes beyond repair. This approach preserves existing affordable housing and ensures compliance with modern safety and environmental standards. Disaster Recovery and Land Banking Beyond rehabilitation, Port Arthur has prioritized disaster recovery,particularly in response to Hurricane Harvey,which severely impacted the region. Our efforts include upgrading homes for flood resilience and enhancing public infrastructure, such as stormwater management systems,to reduce future risks. Additionally,the City's land banking initiatives focus on acquiring vacant and abandoned properties,converting them into affordable housing units to address the housing shortage. Acute Demand for Affordable Housing Port Arthur faces significant demand for affordable housing,reflecting rising housing costs and stagnant income growth. In NRSA Area 4,the average sales price of single-family homes increased by 34%-from $120,124 in 2016 to $161,021 in 2023-while median household income rose by the same percentage, from$37,128 to $49,904 during the same period. This disparity has made homeownership increasingly unattainable for many residents. To afford a median-priced home, a household would need an income of$54,113, which exceeds the actual median income. Renters face similar challenges. In NRSA Area 4,the median rent has increased by 60%, from $634 in 2011 to $1,015 in 2021,with a median income requirement of$40,600 to afford this rent. In NRSA Area 3, 27.4%of renters spend more than 50%of their income on housing,well above the citywide average of 22.3%. The City actively tracks these issues through census data, housing market assessments, and community surveys to inform future planning. Regional Analysis and Economic Development Port Arthur's efforts to improve affordable housing are closely aligned with broader economic development strategies. Both NRSA Areas 3 and 4 have been designated as Opportunity Zones, enabling the City to leverage tax incentives and grants to attract private investment for housing and commercial projects. In NRSA Area 4,revitalization efforts are focused on key commercial corridors like Gulfway Drive, aiming to improve job proximity and business activity. Despite these efforts,the employee-to-resident ratio in NRSA Area 4 is 17 employees per 100 residents, compared to the citywide average of 40 employees per 100 residents, underscoring the need for further job creation. City of Port Arthur PRO Housing Grant Application Page 4 Infrastructure Investments To support housing development,the City is also investing in critical infrastructure upgrades, including utility systems and broadband internet, essential for attracting new residents and businesses. A key component of this effort is the Gifford Pond Project,which aims to develop single-family housing within the Gifford Pond subdivision by eliminating long-standing infrastructure barriers. These improvements,along with job creation incentives and housing production,form the cornerstone of Port Arthur's regional economic and housing development strategy. Key Barriers to Affordable Housing Production and Preservation Despite the City's concerted efforts, several significant barriers to affordable housing production and preservation remain. The aging housing stock is one of the most pressing issues. In NRSA Area 3, the median home was constructed in 1969, meaning many properties were built without modern flood protection or structural integrity standards. This leaves them particularly vulnerable to disasters such as hurricanes,which have historically impacted the region. While the City has made strides in launching rehabilitation programs,the scale of the issues is substantial,with many homes still needing extensive upgrades to meet current safety and building code standards. Rising housing costs present another challenge. Home prices and rents have surged in recent years, outpacing income growth. In NRSA Area 4, homes within the $35,000 to $75,000 income bracket, a significant portion of the population, have become increasingly scarce. This shortage has contributed to a housing affordability crisis making it difficult for families to purchase or rent homes within their financial means. Additionally, 50%of renters in NRSA Area 4 are cost-burdened, spending more than 30% of their income on housing,which places them at risk of housing instability. Employment and income disparities further compound the housing crisis. The unemployment rate in NRSA Area 3 is 13.2%, far above the state average of 4.1%, and labor force participation is low at 41.1%. These economic factors limit residents' ability to afford housing, exacerbating the affordability gap. Furthermore, the ongoing environmental vulnerability,particularly the persistent risk of flooding, presents a dual challenge to both the preservation of existing housing and the development of new, affordable units. These challenges underscore the urgent need for sustained investment in both affordable housing production and economic development initiatives to meet the growing demand for housing in Port Arthur. City of Port Arthur PRO Housing Grant Application Page 5 Demographics Table 1: Population Changes 2010-2023 ■Port Arthur U NRSA Area 3 NRSA Area 4 7,292 53,791 56,038 55,959 2010 2020 2023 Table 2: Housing Affordability Average Sales Price ...� Median Sales Price Median Household Income Income Needed to Afford a Home at the Average Sales Price $180,000.00 $161.021.00 $160,000.00 ..••••••$120,000.00 . $120,124.00 $100,000.0041.0.0 i10.61.0 *Mom $80,000.00 $60,000.00 $40,000.00 $49,904.00 $20,000.00 $37,128.00 $0.00 2016 2018 2020 202 2023 City of Port Arthur PRO Housing Grant Application Page 6 Table 3: Housing Age and Conditions Area 3 34 V l t� 6 R inifs / / Parcel 6as.el Table 4: Cost Burden Households 25.00% 20.00%t 15.00 c I Gross Rent 30-34.9ii of Gross Rent 35-39.9%of Gross Rent 40-49.9%of Gross Rent 50%+of Household Income i Household Income 1%1 Household Income(fib) Household Income(%) ■NRSA Area 4 ■Port Arthur City of Port Arthur PRO Housing Grant Application Page 7 Table 5: Brownfield Properties / WAS Brownfield Properties ': , ti`,.Y • ' . rt■r rasa ,r ? . ateitcatt~ttpuitm t +teas%or:aa0rt 3 tb Up' • • Fairs 47.i3s#ial.. Ptla3 i'aaa a..r411411a ■t .1G1e cJY A *MO,Nab Sara • SWAMI ias NArlimaAtir&iMiAtt glom • � • rr.•R 7iae } SOUNDNESS OF APPROACH Vision The City of Port Arthur's strategy reflects its recent enhancements in zoning, land-use, and permit acquisition processes,which have significantly improved the city's capacity to address affordable housing needs. These streamlined regulatory changes allow for a more efficient focus on affordable housing production and preservation without bureaucratic delays that previously hindered development. Additionally,this approach integrates with the city's climate resilience, transportation, and economic development strategies, ensuring long-term sustainability and equitable growth. Key goals are centered on increasing housing, stock,preventing displacement, fostering homeownership, and promoting energy-efficient development. Our comprehensive housing strategy includes the following five key projects and goals to meet the community's needs: Our Housing Affordability Strategy has the following goals: Goal 1: Remove financial obstacles to the availability of and increase the number of affordable new construction housing and acquisition/rehab approximately 100 units over the grant period. Goal 2: Rehabilitation of approximately 50 owner-occupied homes. Goal 3: Create homeownership opportunities for 100 low-to moderate income families. City of Port Arthur PRO Housing Grant Application Page 8 Goal 4: Educate 600 families and individuals on the basics of financial literacy and homeownership Goal 5: Analyze and assess the need for the development of approximately 200 affordable units for families at or below 80%of Area Median Income (AMI). PRO Housing Project 1: Remove Financial Obstacles to Affordable Housing Production • Project: Develop Over 100 Affordable Housing Units In partnership with Legacy Community Development Corporation(CDC),the city will develop over 100 affordable housing units during the grant period. This includes new construction and acquisition/rehab projects targeting families at 30%-50%AMI. This project will place vacant and foreclosed homes back on the tax rolls, reviving dormant neighborhoods. Energy-efficient, resilient homes will be developed through strategic acquisition of land and infrastructure improvements to ensure accessibility in non-impacted areas. Estimated Costs: $3,523,333.00 • Project: Affordable Housing Preservation Program Recognizing the city's aging housing stock, this initiative will rehabilitate existing affordable units in underserved areas, ensuring that LMI residents can remain in their homes while improving living conditions. This program aligns with recent-land-use reforms allowing for multi-family units and accessory dwelling units (ADUs), expanding affordable housing options throughout the city. PRO Housing Project 2: Rehabilitation of 50 Owner-occupied Homes • Project: Stabilization of Existing Neighborhoods-Owner-Occupied Rehabilitation Program In response to damage from Hurricane Harvey,the city will provide up to $25,000 per home for minor rehabilitation assistance to low-and moderate-income families. This program aims to stabilize neighborhoods and improve safety, affordability,and quality of life for current homeowners. Estimated Costs: $750,000.00 PRO Housing Project 3: Create Homeownership Opportunities for 100 Low-to Moderate-Income Families (LMI) • Project: Homeownership Assistance Program The city will implement a down payment assistance program in partnership with Legacy Community Development Corporation to help 100 LMI families to achieve homeownership,promoting generational wealth and community stability. Estimated Costs: $1,500,000.00 City of Port Arthur PRO Housing Grant Application Page 9 PRO Housing Project 4: Educate 600 Families on Financial Literacy and Homeownership • Project: Financial Literacy and Homeownership Education Legacy CDC, a HUD Certified Counseling Agency,will educate 600 families on the basics of homeownership and financial literacy. Certified counselors will guide families through credit repair, budgeting, savings, and securing mortgages, ensuring they are prepared for sustainable homeownership. PRO Housing Project 5: Analyze and Assess the Need for 200 Additional Affordable Units • Project: Affordable Housing Needs Assessment The city will use grant funds to develop an Affordable Housing Needs Assessment employing a scenario-based planning approach. This assessment will identify housing needs, recommend strategies for future housing development, and analyze market opportunities. The results will guide future affordable housing production and policy-making to ensure the city can meet the needs of families at or below 80%Area Median Income(AMI). Estimated Costs: $60,000.00 Sustainability and Resilience Focus All projects will incorporate energy-efficient and resilient building practices,reducing long-term utility costs for low-and moderate-income households and mitigating climate risks. This aligns with the city's commitment to sustainability ensuring new developments and rehabilitations meet climate resilience goals. Through these efforts,the City of Port Arthur aims to address the increasing need for affordable housing while fostering community resilience,preventing displacement, and creating pathways to homeownership for low-and moderate-income residents. By leveraging recent improvements in zoning and land-use policies,this comprehensive strategy will create lasting,positive impacts on the city's housing landscape. Geographic Scope Our proposal targets both high-opportunity areas and underserved neighborhoods across Port Arthur. By focusing on mixed-income developments in high-opportunity areas,we will expand housing choice for LMI residents,while housing preservation and rehabilitation efforts will ensure that current residents in lower-income neighborhoods can stay in their homes. This balanced approach maximizes geographic impact and ensures the benefits of affordable housing are distributed equitably throughout the city. Stakeholders The City of Port Arthur has established robust partnerships with a broad array of stakeholders to address the city's affordable housing, infrastructure,and community development needs. These partners include nonprofit housing developers, community-based organizations,public agencies, City of Port Arthur PRO Housing Grant Application Page 10 and persons with unmet housing needs. Our consistent collaboration underscores the city's ongoing commitment to advancing equitable housing opportunities, as outlined in the 2023 Annual Action Plan and the 2019 Consolidated Plan. Key Stakeholders and Their Roles in Proposal Development The following chart highlights the key stakeholders involved in Port Arthur's housing efforts, their roles, and the specific areas they support within our housing initiatives: Stakehuldcr Role Contribution Catholic Charities Essential services and Offers social services,housing support,and resources for LMI housing stability families. Economic Economic growth and Drives economic development initiatives that align with housing Development infrastructure development and infrastructure growth. Corporation Julie Rogers Gift of Community health and Provides life-saving services and support to underserved Life support services populations,contributing to the overall well-being of the community. Lamar State College Educational and workforce Strengthens educational opportunities and workforce Port Arthur development development,supporting housing stability through employment. Legacy Community Affordable Housing Specializes in the development of affordable housing and the Development Corp. Development provision of financial counseling. Corporate partner Renovating two major buildings to establish their headquarters. Motiva Enterprises supporting downtown contributing to downtown economic revitalization. revitalization Nutrition and Services for elderly and Ensures that seniors and vulnerable populations have access to Services for Seniors vulnerable populations nutritious meals and social services. Port Arthur Housing Public housing and Supports the development and management of affordable Authority affordable housing housing units. development Port Arthur ISD and Provides educational resources that improve the economic Education and community Woodrow Wilson stability of families and contribute to long-term housing Early College support stability. Port Arthur News Serves as the emergency management headquarters during Press Building Emergency management natural disasters,providing essential coordination for housing recovery efforts. Southeast Texas Advocacy for homeless Provides services and advocacy for homeless individuals and Homeless Coalition populations families. City of Port Arthur PRO Housing Grant Application Page 11 Stakeholder Engagement in Developing This Proposal The City has consistently involved these stakeholders in the planning and implementation of housing strategies, drawing from public forums, focus groups, and consultations conducted as part of the 2019 Consolidated Plan. Public hearings and outreach events have allowed community members and organizations to contribute meaningful input,which has been instrumental in shaping housing priorities such as land acquisition, new home construction, infrastructure improvements, and housing rehabilitation. This input has played a critical role in addressing the housing infrastructure challenges facing the city, ensuring the proposal aligns with the community's broader needs. Continued Engagement During the Grant's Performance Period To ensure sustained stakeholder involvement,the City of Port Arthur will maintain a strategy of continuous engagement throughout the grant's performance period. This will include: • Regular community meetings to provide updates on housing projects. • Enhanced communication through the city's website and social media channels. • Ongoing collaboration with nonprofit housing developers,public agencies,and social service organizations to address emerging housing needs. We will also leverage our existing partnerships to expand outreach to residents of public and affordable housing units, as well as those affected by housing instability. Incorporating Stakeholder Input Into the Proposal The proposed activities in this grant reflect the feedback gathered from stakeholders during the Consolidated Plan process. This input directly shaped priority actions such as: • Infrastructure development at Gifford Pond. • City-wide land acquisition for affordable housing. • Capacity-building initiatives for community-based organizations. • Down payment assistance and owner-occupied rehabilitation programs. These activities align with the community's desire for improved housing options, infrastructure development,and long-term housing stability for low-and moderate-income households. Strategy for Evaluating Stakeholder Engagement To ensure transparency and accountability,the City of Port Arthur will implement a comprehensive evaluation process to assess stakeholder engagement throughout the grant period. This will include: • Tracking progress on housing initiatives and adjusting strategies as needed. • Monitoring how feedback from housing providers,community members, and advocacy groups is incorporated into the ongoing housing efforts. • Regularly reviewing outcomes to ensure the city's housing projects meet the needs of low-and moderate-income residents. By continuing to build on the collaborative relationships established through the Annual Action Plan and Consolidated Plan,the City of Port Arthur's PRO Housing Grant proposal reflects the community's priorities and ensures the successful implementation of proposed housing initiatives. City of Port Arthur PRO Housing Grant Application Page 12 Affirmatively Furthering Fair Housing(AFFH) The City of Port Arthur is dedicated to affirmatively furthering fair housing by promoting inclusive housing opportunities through its housing and development initiatives. These efforts are in full compliance with the PRO Housing Grant requirements and build on the goals outlined in the city's 2023 Annual Action Plan and the 2019-2024 Consolidated Plan. Through these programs,the city seeks to address historical housing inequities, dismantle segregations, and foster a more inclusive, equitable community. Removing Barriers to Affordable Housing in Areas of Opportunity Port Arthur's strategy to improve infrastructure at Gifford Pond, acquire land across the city, and enhance public facilities directly addresses barriers to affordable housing in the downtown and surrounding areas. By focusing on infrastructure improvements,the city aims to make underdeveloped neighborhoods more accessible for affordable housing,particularly in areas that have historically lacked such opportunities. This strategy aligns with the city's 2019-2024 Consolidated Plan, which highlights the importance of expanding housing availability in areas with greater access to education, employment, and essential services. These efforts will primarily benefit Black and Hispanic households,which, as identified in the city's Analysis of Impediments to Fair Housing Choice, face a disproportionate need for affordable housing. By creating housing options in more affluent areas the city seeks to bridge the racial and economic gap,promoting integration and providing underserved communities with improved access to opportunity. Promoting Desegregation Port Arthur's development initiatives prioritize reducing racial and ethnic segregation by encouraging affordable housing in high-opportunity areas. The city's Analysis of Impediments to Fair Housing points to the need to diversify income levels in communities that have historically been concentrated with subsidized housing. The Downtown Housing Target Area initiative, as detailed in the 2019-2024 Consolidated Plan, aims to attract a mix of income groups, fostering mixed-income communities and encouraging racial and economic integration. Avoiding Concentration of Affordable Housing To prevent the further concentration of affordable housing in low-opportunity areas, Port Arthur has adopted a strategic approach that promotes a balanced distribution of affordable housing across multiple neighborhoods This proactive measure ensures that affordable housing is not isolated in specific communities but rather spread across the city, increasing housing choice and fostering greater equity among neighborhoods. Addressing the Housing Needs of Protected Classes The City of Port Arthur is committed to addressing the specific housing needs of protected classes, including persons with disabilities, families with children, and underserved communities City of Port Arthur PRO Housing Grant Application Page 13 of color. The city's Analysis of Impediments highlights the disproportionate housing challenges faced by African American and Hispanic households, as well as the lack of accessible housing for individuals with disabilities. The proposed infrastructure improvements will prioritize the inclusion of Americans with Disabilities Act(ADA)-compliant units, ensuring proximity to public services, healthcare, and transportation, allowing these individuals to live independently while staying connected to essential community resources. Addressing Issues in the Fair Housing Plan Although this specific PRO Housing Grant proposal is not explicitly mentioned in the 2023 Annual Action Plan or the 2019-2024 Consolidated Plan,these documents provide a strategic framework that supports the city's efforts to expand affordable housing and address fair housing issues. The city's land acquisition, infrastructure development, and homeownership assistance programs align with the overarching goals of these plans reinforcing its commitment to equitable housing opportunities. Preventing Displacement To minimize displacement risks,the city has prioritized the development of affordable housing on vacant lots and in areas with robust infrastructure. This focus on enhancing existing neighborhoods will improve the overall housing stock while ensuring that current residents are not displaced. The city also plans to implement anti-displacement measures, such as giving tenants the right of first refusal and ensuring that any affordable units lost during redevelopment are replaced. Supporting Accessibility and Independent Living Port Arthur remains committed to increasing accessible housing options by ensuring that all new developments meet ADA and Fair Housing Act standards. Proximity to public transportation, healthcare, and supportive services will be prioritized, enabling individuals with disabilities to maintain independence while being fully integrated into the community. Promoting Equity and Diversity in Business Engagement As part of its broader commitment to promoting racial and economic equity,the city actively engages minority-,women,- and veteran-owned businesses in housing production efforts. This ensures that the benefits of housing developments are shared across diverse sectors of the community, further contributing to economic growth and inclusion. Evaluation and Tracking Progress To track progress toward its fair housing goals, Port Arthur will implement a comprehensive monitoring system throughout the grant's performance period. This will include tracking the racial and economic diversity of residents in new housing developments,monitoring demographic shifts in key neighborhoods, and ensuring that the city's efforts to expand affordable housing are reaching all communities equitably. City of Port Arthur PRO Housing Grant Application Page 14 Affirmative Marketing and Outreach Port Arthur will implement an affirmative marketing plan to ensure that the housing opportunities created through this grant are accessible to all demographic groups,particularly those least likely to apply. This includes targeted outreach to minority communities, families with children, and individuals with disabilities. The city will leverage multiple media outlets and community partners to ensure that housing opportunities are widely and inclusively promoted. By affirming its commitment to fair housing,the City of Port Arthur demonstrates a clear focus on fostering diverse, inclusive communities, expanding housing choice, and addressing the housing needs of all residents particularly those who have been historically underserved. Budget and Timeline: Projects Estimated Costs Project Number PRO Housing Project Estimated Costs 1 Affordable Housing Assessment $60,000.00 Development of Affordable Housing Citywide Infrastructure, Site Prep and Development$1,000,000.00 2 Gifford Pond Citywide Infrastructure and Site $3,523,333.00 Prep $1,523,333.00 CHDO Capacity Building(Construction Revolving Line of Credit) $1,000,000.00 3 Owner-occupied Rehabilitation (Rescue and $750,000.00 Restore) Homeownership Program 4 Housing Counseling and Down Payment $1,500,000.00 Assistance 5 Administration $1.166.667.00 Total $7,000,000.00 City of Port Arthur PRO Housing Grant Application Page 15 Projects Estimated Timeline Project PRO Housing Project Project Start Months to completion Project End Number Affordable Housing 1 January 2025 6 June 2025 Assessment Affordable Housing 2 Development/CHDO January 2025 36 November 2028 Capacity Building Owner-Occupied November 3 Rehab Program January 2025 24 2027 (Rescue and Restore) 4 Homeownership November January 2025 36 Program 2027 Administration/Grant 5 January 2025 60 March 2030 Closeout Capacity Organizational Structure and Key Management: The City of Port Arthur is well-positioned to lead the proposed PRO Housing activities, supported by an experienced and dedicated team. The Housing Department will serve as the lead agency for the implementation of these activities. The Housing Department's key management team includes: Employee Job Title Pamela Langford Assistant City Manager-Operations-Director of Development Larry Badon Planning&Development Services Manager Lynda Baswell Finance Director Clifton Williams Purchasing Manager I Mary Essex Grants Manager Development Services I Beverly Freeman Housing&Neighborhood Revitalization Manager Christina Gutierrez Grant Program Specialist I We currently have seven full-time staff dedicated to managing housing activities, including financial management, project oversight, and community engagement. The structure is designed to ensure smooth coordination between leadership and operational staff. Any vacancies or new City of Port Arthur PRO Housing Grant Application Page 16 positions required will be filled promptly upon award of funds to ensure immediate action on the grant. Agency Leadership and Management Capacity: The Housing Department will lead the implementation of the proposed PRO Housing activities, building on its strong track record of managing federal grants, including HUD programs such as the Cares Act Funding, Community Development Block Grant, Community Housing Development Organizations (CHDOs) and the HOME Investment Partnerships Program. Our leadership team has experience managing housing projects,known for its accountability, financial integrity, and ability to deliver results. Rather than hiring additional staff,the City of Port Arthur intends to partner with local nonprofits to enhance their capacity and ensure the efficient execution of the project. These partnerships will allow us to leverage the expertise and resources of established organizations without expanding our internal team, aligning with our commitment to community collaboration. Project Management and Launch Capacity: The City of Port Arthur is well-prepared to launch and implement this project swiftly and effectively. Our team has demonstrated capabilities in project management, quality assurance, financial oversight, and procurement through years of managing federal grants. We also have robust internal controls to ensure compliance with federal requirements and monitor project implementation. To further strengthen our project management structure, we will onboard nonprofit and for-profit partners who bring specialized expertise in affordable housing development and preservation. Our leadership team is empowered with the legal authority to make timely decisions to implement proposed activities, ensuring swift execution. Collaboration with other city departments, including Planning and Zoning, Legal, and Public Works,will be formalized through agreements and regular interdepartmental coordination. Partner Capacities and Coordination: Our proposal includes collaboration with several key partners, each providing specialized knowledge and services: • Local Housing Nonprofits: These organizations have extensive experience in affordable housing development and provide direct services such as housing counseling,tenant advocacy, and navigation for low-income residents. Their involvement is crucial for engaging vulnerable populations and ensuring housing opportunities are accessible to those most in need. • Private developers: We have established relationships with developers who are committed to producing affordable units. These partnerships will be key in addressing housing shortages and bringing new projects to fruition. • Financial Institutions: Local banks and credit unions will support financing mechanisms to maintain affordability, such as offering low-interest loans for housing development projects. City of Port Arthur PRO Housing Grant Application Page 17 Our capacity to eliminate barriers to affordable housing is bolstered by these partnerships, each with a clearly defined role in the project plan. The City of Port Arthur has significant experience coordinating with both public and private partners, ensuring all stakeholders are aligned with the project's goals. Experience with Civil Rights and Fair Housing Issues: The Housing Department and its partners have extensive experience addressing civil rights and fair housing challenges. By leveraging HUD data,we have successfully analyzed racial and economic disparities in housing access, informing policy decisions to reduce these disparities. We will continue applying this expertise to ensure equitable access to housing for all residents, particularly communities of color,through the implementation of this grant. Application Development Coordination: This grant application was developed by City of Port Arthur staff, led by Christina Gutierrez, Grant Program Specialist. The city's staff provided local data,helped define the scope of the project, and ensured that the application aligns with the city's strategic vision. Pass-Through Entity Capacity: The City of Port Arthur intends to operate a subgrant program as part of this initiative,partnering with local nonprofits and other organizations. Our experience with subrecipients through previous HUD programs and our internal controls provide a solid foundation for evaluating and managing subgrantees. We are confident in our capacity to ensure that subgrantees can effectively implement their respective components of this project. LEVERAGE The City of Port Arthur is actively leveraging multiple funding sources and non-financial contributions to support its affordable housing initiatives. Key financial resources include the Federal Home Investment Partnership Program (HOME)and the Community Development Block Grant(CDBG),which are integral to funding housing rehabilitation,new construction, and disaster recovery efforts. In addition to these federal programs,the City has allocated funds from its own budget to further enhance the scope and impact of its housing programs. Beyond financial contributions,the City leverages strong partnerships with local developers, community organizations, and non-profits to maximize the effectiveness of these funds. These collaborations provide in-kind support, including technical expertise,volunteer labor, and services that help streamline the development and rehabilitation processes. By combining federal funding with local resources and community-driven efforts, Port Arthur is able to amplify its impact and address the housing needs of its low-and moderate-income residents more efficiently. LONG-TERM EFFECT While zoning restrictions have been recently updated,they have historically posed significant challenges to the production and preservation of affordable housing in Port Arthur. Our proposal City of Port Arthur PRO Housing Grant Application Page 18 seeks to address these past zoning barriers, alongside other persistent obstacles such as high development costs and limited community resources. By implementing targeted strategies, we aim to foster permanent, sustainable solutions that extend beyond the grant's period of performance. The measurable outcomes and long-term impacts of these efforts are outlined below. Sustained Production and Preservation of Affordable Housing By removing the barriers that have historically impeded affordable housing development, our project will lay the foundation for ongoing production and preservation of housing units. Specifically: • Long-Term Preservation Initiatives: In collaboration with local, nonprofit and for profit organizations &developers,we will establish long-term affordable housing agreements, ensuring that newly constructed units remain affordable for at least 30 years. This aRproach will preserve affordability for low-income families and prevent displacement due to rising housing costs. • Sustained Community Investment: Ensure that the infrastructure improvements and housing developments initiated under the grant contribute to long-term community resilience and economic stability. • Leveraging Public-Private Partnerships: Strengthen relationships with local organizations and developers to create a pipeline for future affordable housing projects. • Preventing Displacement: Implement measures that safeguard existing residents from being displaced by rising housing costs, focusing on long-term affordability in the downtown and neighboring areas. Achieving Permanent Change Upon completion of the grant-funded activities,we will have achieved the following: • New Affordable Housing Units: We anticipate the construction of at least 100 new affordable housing units over the course of this grant addressing both the current demand and laying the groundwork for sustained housing production. • Establishment of a Housing Development Fund: The creation of a revolving housing development fund will ensure that financial resources are available to continue affordable housing projects after the grant period. This fund, seeded with$1 million in leveraged funds, will be replenished through developer contributions and public-private partnerships. A Model for Other Communities Our proposal represents a replicable model for other communities facing similar challenges. The strategies we are implementing—such as leveraging non-financial contributions like donated land, and fostering public-private partnerships—can be scaled and adapted to meet the needs of various jurisdictions. We will develop a toolkit based on our experiences, including policy recommendations, templates for community benefit agreements, and best practices for leveraging resources, which can be shared with other municipalities. City of Port Arthur PRO Housing Grant Application Page 19 Success Beyond the Grant Period We define success as the sustained, measurable increase in the production and preservation of affordable housing units long after the grant's period of performance. Specifically,we expect to achieve: • Increase in Affordable Housing Stock: Over the next 5 years,we aim to produce an additional 50 affordable housing units in our jurisdiction, which will directly address the identified need for low-income housing. • Improved Access to Well-Resourced Neighborhoods: By expanding the areas zoned for affordable multifamily housing,we will increase access to high-opportunity neighborhoods for vulnerable populations, reducing segregation and promoting equity. • Enhanced Support for First-Time Homebuyers: Develop targeted programs, such as down payment assistance and financial literacy initiatives,to help low-and moderate-income families achieve homeownership, fostering long-term housing stability. • Ongoing Collaboration with Housing Partners: Establish permanent partnerships with local developers, nonprofits, and financial institutions to continuously fund and support affordable housing projects, ensuring sustained progress in meeting the community's housing needs. Metrics and Target Outcomes To measure the success of our activities,we will track the following metrics: • Increase in Affordable Housing Permits: Target a 20%annual increase in the total number of affordable housing units constructed or rehabilitated over the next five years. • Aim to rehabilitate at least 10 homes annually,ensuring they meet current safety and environmental standards, including flood resilience. • Sustained Affordability: 100%of newly developed units will have affordability agreements that ensure they remain affordable for at least 20 years. • Support 20 low-to moderate-income households per year in purchasing homes through down payment assistance programs and affordable homeownership initiatives. • Increase public-private partnerships,with a goal of securing additional funding for affordable housing developments and infrastructure improvements over the next five years. Impact on Vulnerable Populations Our proposal not only addresses the immediate need for affordable housing but also integrates sustainable development practices that prioritize environmental responsibility, energy efficiency, and long-term cost savings for residents. By incorporating these practices,we will ensure that newly developed housing is not only affordable but also sustainable,providing long-term benefits for both residents and the environment. Additionally, by investing in critical infrastructure improvements and ensuring affordable housing is built in well-resourced neighborhoods, we will strengthen the community's resilience. This will help protect vulnerable populations from future economic downturns, displacement, and impacts of natural disasters, fostering a more stable and inclusive community. In summary, our proposal will create lasting, systemic change in how affordable housing is produced and preserved in our community. By addressing the root causes of housing barriers, implementing sustainable development practices, and ensuring continued production,we will provide long-term solutions that benefit current and future generations. This proposal aligns City of Port Arthur PRO Housing Grant Application Page 20 with state and federal housing initiatives aimed at reducing poverty,promoting equity, and increasing housing affordability,allowing us to contribute to broader efforts to build more equitable and inclusive communities on both a regional and national scale. APPENDICES A. Eligible Applicants Documentation B. Evidence of Partnership Letters C. Leverage Documentation D. Application Certifications and Standard forms City of Port Arthur PRO Housing Grant Application Page 21