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Home My WebLink AboutPR 18313: APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR A BLOCK GRANT P. R. 18313 05/05/14 ME -Grants Management RESOLUTION NUMBER A RESOLUTON AUTHORIZING THE CITY MANAGER TO MAKE APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR A COMMUNITY DEVELOPMENT BLOCK GRANT FOR AN AMOUNT OF $1,043,729.00 AND A GRANT OF AN AMOUNT FOR $233,391.00 IN HOME FUNDS AND AUTHORIZING THE CITY MANGER TO EXECUTE THE CITY OF PORT ARTHUR'S 2014 CONSOLIDATED ANNUAL PLAN. THE CONSOLIDATED PLAN WILL BE SUBMITTED TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, 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 40 (2014 Program Year) Consolidated Plan as an application for a grant in the amount for $1,043,729 Community Development Block Grant Funds (CDBG) and a grant for an amount for $233,391.00 in HOME funds; and, WHEREAS, the 40 Year Consolidated Plan will include a proposed list of Projects for the 2014 Program Year and certifications and included within the Plan is the CDBG budget (see Exhibit A); and, WHEREAS, the citizens have been given an opportunity to express their ideas as to projects, which should be included in the 2014 Community Development Block Grant Program at the public hearings; and, WHEREAS, the City Council, is required to designate an official to sign all documents in connection with the Applications and Grant Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: THAT the Consolidated Plan refers to a grant to be made by the United States Department of Housing and Urban Development for a Community Development Block Grant of an estimated One Million Forty Three Thousand Seven Hundred Twenty Nine Dollars ($1,043,729) and for HOME funds for Two Hundred Thirty Three Thousand Three Hundred Ninety One Dollars ($233,391.00) for the 2014 Program Year; and, THAT a copy of the Consolidated Plan is attached hereto in substantially the same form as Exhibit "A "; and, 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., 2014 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR COUNCILMEMBERS NOES: MAYOR ATTEST: SHERRI BELLARD CITY SECRETARY APPROVED AS TO FORM: 14.7 d/l/J.A/70 VAL TIZENO CITY ATTORNEY APPROVED FOR ADMINISTRATION: JOHN A.COMEAUX, P.E. INTERIM CITY MANAGER APPROVED AS TO AVAILABILITY OF FUNDS: $ 414t449- DEBORAH E HOLS DIRECTOR OF FINANCE EXHIBIT "A" EXHIBIT A * Illli *Third Program Year WIN! &qNacvoQ Action Plan The CPMP Third Annual Action Plan includes the SF 424 and Narrative Responses to Action Plan questions that CDBG, HOME, HOPWA, and ESG grantees must respond to each year in order to be compliant with the Consolidated Planning Regulations. The Executive Summary narratives are optional. F424 Complete the fillable fields (blue cells) in the table below. The other items are pre - filled with values from the Grantee Information Worksheet. 5 -17 -2013 Type of Submission Application Pre - application ❑ Construction ❑ Construction ® Non Construction ❑ Non Construction Applicant Information Jurisdiction TX484248 PORT ARTHUR 444 4th Street 13- 7134909 P. 0. Box 1089 City of Port Arthur Port Arthur Texas 0 77640 Country U.S.A. Grants Management Employer Identification Number (EIN): Jefferson 74- 6001885 6/1 Applicant Type: Specify Other Type if necessary: Local Government: Township Specify Other Type U.S. Department of Program Funding Housing and Urban Development Catalogue of Federal Domestic Assistance Numbers; Descriptive Title of Applicant Project(s); Areas Affected by Project(s) (cities, Counties, localities etc.); Estimated Funding Community Development Block Grant 14.218 Entitlement Grant Consolidated Plan - CDBG Entitlement City Wide $1,043,729 $27,300 Program Income $ $ $ $ Home Investment Partnerships Program 14.239 HOME Consolidated Plan - HOME Entitlement Description of Areas Affected by HOME Project(s) Third Program Year Action Plan 1 Version 1.3 Jurisdiction $233,391 $295,558 Program Income $ $ $ $ $ Other (Describe) Total Funds Leveraged for HOME -based Project(s) Housing Opportunities for People with 14.241 HOPWA AIDS $ $ $ $ $ $ Emergency Shelter Grants Program 14.231 ESG $ $ $ $ $ $ Congressional Districts of: Is application subject to review by state 14th 1 14th Executive Order 12372 Process? Is the applicant delinquent on any federal ❑ Yes This application was made available to debt? If "Yes" please include an additional the state EO 12372 process for review document explaining the situation. on DATE ® No Program is not covered by EO 12372 ['Yes ® No ❑ N/A Program has not been selected by the state for review Third Program Year Action Plan 2 Version 1.3 Person to be contacted regarding this application ohn A. Comeaux Interim City Manager 409 - 983 - 8101 409 - 982 - 6743 latoshia.williams ©portarthur.n www.portarthur.net Other Contact et Signature of Authorized Representative Date Signed l ooS NIT © 42 0 t I1 I i I IL CPMP Non -State Grantee Ce ■ r t�■ Certifications 49qN °EvF�"' Many elements of this document may be completed electronically, however a signature must be manually applied and the document must be submitted in paper form to the Field Office. ❑ This certification does not apply. ® This certification is applicable. NON -STATE GOVERNMENT CERTIFICATIONS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti - displacement and Relocation Plan -- It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace -- It will or will continue to provide a drug -free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug -free awareness program to inform employees about - a. The dangers of drug abuse in the workplace; b. The grantee's policy of maintaining a drug -free workplace; c. Any available drug counseling, rehabilitation, and employee assistance programs; and d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will - a. Abide by the terms of the statement; and b. Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification numbers) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted - a. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. CPMP Non -State Grantee Certifications 1 Version 1.3 Jurisdiction Anti - Lobbying -- To the best of the jurisdiction's knowledge and belief: 8. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 9. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 10. It will require that the language of paragraph 1 and 2 of this anti - lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction -- The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. 05/9/2014 Signature /Authorized Official Date John A. Comeaux, P. E. Name Interim City Manager Title P. O. Box 1089 Address Port Arthur, Texas 77640 City /State /Zip 409 - 983 -8101 Telephone Number CPMP Non -State Grantee Certifications 2 Version 1.3 Jurisdiction ❑ This certification does not apply. ® This certification is applicable. Specific CDBG Certifications The Entitlement Community certifies that: Citizen Participation -- It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan -- Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long -term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds -- It has complied with the following criteria: 11. Maximum Feasible Priority - With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); 12. Overall Benefit - The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) 2014, 2015, 2016, (a period specified by the grantee consisting of one, two, or three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; 13. Special Assessments - It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate - income (not low- income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force -- It has adopted and is enforcing: 14. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non - violent civil rights demonstrations; and 15. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non - violent civil rights demonstrations within its jurisdiction; CPMP Non -State Grantee Certifications 3 Version 1.3 Jurisdiction Compliance With Anti - discrimination laws -- The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601 - 3619), and implementing regulations. Lead -Based Paint -- Its activities concerning lead -based paint will comply with the requirements of part 35, subparts A, B, 3, K and R, of title 24; Compliance with Laws -- It will comply with applicable laws. 05/09/14 Signature /Authorized Official Date John A. Comeaux, P. E. Name Interim City Manager Title P. O. Box 1090 Address Port Arthur, Texas 77640 City /State /Zip 409 - 983 -8101 Telephone Number CPMP Non -State Grantee Certifications 4 Version 1.3 Jurisdiction ® This certification does not apply. ❑ This certification is applicable. OPTIONAL CERTIFICATION CDBG Submit the following certification only when one or more of the activities in the action plan are designed to meet other community development needs having a particular urgency as specified in 24 CFR 570.208(c): The grantee hereby certifies that the Annual Plan includes one or more specifically identified CDBG- assisted activities, which are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community and other financial resources are not available to meet such needs. Signature /Authorized Official Date Name Title Address City /State /Zip Telephone Number CPMP Non -State Grantee Certifications 5 Version 1.3 Jurisdiction ❑ This certification does not apply. ® This certification is applicable. Specific HOME Certifications The HOME participating jurisdiction certifies that: Tenant Based Rental Assistance -- If the participating jurisdiction intends to provide tenant -based rental assistance: The use of HOME funds for tenant -based rental assistance is an essential element of the participating jurisdiction's consolidated plan for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing. Eligible Activities and Costs -- it is using and will use HOME funds for eligible activities and costs, as described in 24 CFR § 92.205 through 92.209 and that it is not using and will not use HOME funds for prohibited activities, as described in § 92.214. Appropriate Financial Assistance -- before committing any funds to a project, it will evaluate the project in accordance with the guidelines that it adopts for this purpose and will not invest any more HOME funds in combination with other Federal assistance than is necessary to provide affordable housing; 05/09/2014 Signature /Authorized Official Date John A. Comeaux, P. E. Name Interim City Manager Title P. O. Box 1089 Address Port Arthur, Texas 77640 City /State /Zip 409 - 983 -8101 Telephone Number CPMP Non -State Grantee Certifications 6 Version 1.3 Jurisdiction ® This certification does not apply. ❑ This certification is applicable. HOPWA Certifications The HOPWA grantee certifies that: Activities -- Activities funded under the program will meet urgent needs that are not being met by available public and private sources. Building -- Any building or structure assisted under that program shall be operated for the purpose specified in the plan: 1. For at least 10 years in the case of assistance involving new construction, substantial rehabilitation, or acquisition of a facility, 2. For at least 3 years in the case of assistance involving non - substantial rehabilitation or repair of a building or structure. Signature /Authorized Official Date Name Title Address City /State /Zip Telephone Number CPMP Non -State Grantee Certifications 7 Version 1.3 Jurisdiction ® This certification does not apply. E This certification is applicable. ESG Certifications I, , Chief Executive Officer of Error! Not a valid link., certify that the local government will ensure the provision of the matching supplemental funds required by the regulation at 24 CFR 576.51. I have attached to this certification a description of the sources and amounts of such supplemental funds. I further certify that the local government will comply with: 1. The requirements of 24 CFR 576.53 concerning the continued use of buildings for which Emergency Shelter Grants are used for rehabilitation or conversion of buildings for use as emergency shelters for the homeless; or when funds are used solely for operating costs or essential services. 2. The building standards requirement of 24 CFR 576.55. 3. The requirements of 24 CFR 576.56, concerning assurances on services and other assistance to the homeless. 4. The requirements of 24 CFR 576.57, other appropriate provisions of 24 CFR Part 576, and other applicable federal laws concerning nondiscrimination and equal opportunity. 5. The requirements of 24 CFR 576.59(b) concerning the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. 6. The requirement of 24 CFR 576.59 concerning minimizing the displacement of persons as a result of a project assisted with these funds. 7. The requirements of 24 CFR Part 24 concerning the Drug Free Workplace Act of 1988. 8. The requirements of 24 CFR 576.56(a) and 576.65(b) that grantees develop and implement procedures to ensure the confidentiality of records pertaining to any individual provided family violence prevention or treatment services under any project assisted with ESG funds and that the address or location of any family violence shelter project will not be made public, except with written authorization of the person or persons responsible for the operation of such shelter. 9. The requirement that recipients involve themselves, to the maximum extent practicable and where appropriate, homeless individuals and families in policymaking, renovating, maintaining, and operating facilities assisted under the ESG program, and in providing services for occupants of these facilities as provided by 24 CFR 76.56. 10. The requirements of 24 CFR 576.57(e) dealing with the provisions of, and regulations and procedures applicable with respect to the environmental review responsibilities under the National Environmental Policy Act of 1969 and related CPMP Non -State Grantee Certifications 8 Version 1.3 Jurisdiction authorities as specified in 24 CFR Part 58. 11. The requirements of 24 CFR 576.21(a)(4) providing that the funding of homeless prevention activities for families that have received eviction notices or notices of termination of utility services will meet the requirements that: (A) the inability of the family to make the required payments must be the result of a sudden reduction in income; (B) the assistance must be necessary to avoid eviction of the family or termination of the services to the family; (C) there must be a reasonable prospect that the family will be able to resume payments within a reasonable period of time; and (D) the assistance must not supplant funding for preexisting homeless prevention activities from any other source. 12. The new requirement of the McKinney -Vento Act (42 USC 11362) to develop and implement, to the maximum extent practicable and where appropriate, policies and protocols for the discharge of persons from publicly funded institutions or systems of care (such as health care facilities, foster care or other youth facilities, or correction programs and institutions) in order to prevent such discharge from immediately resulting in homelessness for such persons. I further understand that state and local governments are primarily responsible for the care of these individuals, and that ESG funds are not to be used to assist such persons in place of state and local resources. 13. HUD's standards for participation in a local Homeless Management Information System (HMIS) and the collection and reporting of client -level information. I further certify that the submission of a completed and approved Consolidated Plan with its certifications, which act as the application for an Emergency Shelter Grant, is authorized under state and /or local law, and that the local government possesses legal authority to carry out grant activities in accordance with the applicable laws and regulations of the U. S. Department of Housing and Urban Development. Signature /Authorized Official Date Name Title Address City /State /Zip Telephone Number CPMP Non -State Grantee Certifications 9 Version 1.3 Jurisdiction ❑ This certification does not apply. ® This certification is applicable. APPENDIX TO CERTIFICATIONS Instructions Concerning Lobbying and Drug -Free Workplace Requirements Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Drug -Free Workplace Certification 1. By signing and /or submitting this application or grant agreement, the grantee is providing the certification. 2. The certification is a material representation of fact upon which reliance is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug -Free Workplace Act, HUD, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug -Free Workplace Act. 3. Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee's drug -free workplace requirements. 4. Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio stations). 5. If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the workplaces in question (see paragraph three). 6. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) Check if there are workplaces on file that are not identified here. The certification with regard to the drug -free workplace is required by 24 CFR part 21. Place Name Street City County State Zip 7. Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug -Free Workplace common rule apply to this certification. Grantees' attention is called, in particular, to the following definitions from these rules: "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non - Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any CPMP Non -State Grantee Certifications 10 Version 1.3 Jurisdiction controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: a. All "direct charge" employees; b. all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and c. temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee's payroll; or employees of subrecipients or subcontractors in covered workplaces). Note that by signing these certifications, certain documents must completed, in use, and on file for verification. These documents include: 1. Analysis of Impediments to Fair Housing 2. Citizen Participation Plan 3. Anti - displacement and Relocation Plan 05/09/2014 Signature /Authorized Official Date John A. Comeaux, P. E. Name Interim City Manager Title P. O. Box 1089 Address Port Arthur, Texas 77640 City /State /Zip 409 - 983 -8101 Telephone Number CPMP Non -State Grantee Certifications 11 Version 1.3 Jurisdiction Barriers to Affordable Housing 1. Describe the actions that will take place during the next year to remove barriers to affordable housing. Program Year 3 Action Plan Barriers to Affordable Housing response: Barriers to Affordable Housing The City of Port Arthur has no policies in place that hinders the availability of affordable housing. Although no action nor reform steps are required, the City will continue to seek resourceful and innovative ways to make affordable housing available to all residents. HOME/ American Dream Down payment Initiative (ADDI) 1. Describe other forms of investment not described in § 92.205(b). 2. If the participating jurisdiction (P3) will use HOME or ADDI funds for homebuyers, it must state the guidelines for resale or recapture, as required in § 92.254 of the HOME rule. 3. If the PJ will use HOME funds to refinance existing debt secured by multifamily housing that is that is being rehabilitated with HOME funds, it must state its refinancing guidelines required under § 92.206(b). The guidelines shall describe the conditions under which the PJ will refinance existing debt. At a minimum these guidelines must: a. Demonstrate that rehabilitation is the primary eligible activity and ensure that this requirement is met by establishing a minimum level of rehabilitation per unit or a required ratio between rehabilitation and refinancing. b. Require a review of management practices to demonstrate that disinvestments in the property has not occurred; that the long -term needs of the project can be met; and that the feasibility of serving the targeted population over an extended affordability period can be demonstrated. c. State whether the new investment is being made to maintain current affordable units, create additional affordable units, or both. d. Specify the required period of affordability, whether it is the minimum 15 years or longer. e. Specify whether the investment of HOME funds may be jurisdiction -wide or limited to a specific geographic area, such as a neighborhood identified in a neighborhood revitalization strategy under 24 CFR 91.215(e)(2) or a Federally designated Empowerment Zone or Enterprise Community. f. State that HOME funds cannot be used to refinance multifamily loans made or insured by any federal program, including CDBG. 4. If the P3 is going to receive American Dream Down payment Initiative (ADDI) funds, please complete the following narratives: a. Describe the planned use of the ADDI funds. Third Program Year Action Plan 11 Version 1.3 Jurisdiction b. Describe the PJ's plan for conducting targeted outreach to residents and tenants of public housing and manufactured housing and to other families assisted by public housing agencies, for the purposes of ensuring that the ADDI funds are used to provide down payment assistance for such residents, tenants, and families. c. Describe the actions to be taken to ensure the suitability of families receiving ADDI funds to undertake and maintain homeownership, such as provision of housing counseling to homebuyers. Program Year 3 Action Plan HOME /ADDI response: PROGRAM SPECIFIC REQUIREMENTS HOME Program RESALE /RECAPTURE PROVISIONS 2012 - 2013 Consolidated Plan The City of Port Arthur intends to use its Federal HOME allocation for a Owner Occupied Rehabilitationand Reconstruction of Housing Program and a First Time Homebuyer Assistance Program. The Owner Occupied Rehabilitation and Reconstruction of Housing Program is to assist low and moderate income property owners in maintaining their home, eliminate housing code violations and upgrade neighborhoods. Through this program, the City will help provide decent, safe and sanitary housing for eligible citizens of the city. In order to insure that housing remains affordable to low and moderate income households, the City will provide deferred forgivable loans to purchase land for the construction of a new home. The City will also provide funds to assist with down payments, pay closing costs and buy down interest rates or prepaids for new construction and existing home purchase. Under the First Time Homebuyer's — New Construction and Existing Home Purchase Programs, the eligible person /family will secure permanent loans from participating lenders and provide $500 to $1,000 of their own funds toward closing costs. The Federal funds invested is secured by 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 as "low income housing" as defined in such agreement (the "Borrower Agreement ") for a period of ten (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 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). Third Program Year Action Plan 12 Version 1.3 Jurisdiction 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 Borrower's 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 not 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 "Property ") . Minority Households Outreach The City propose to assist a minimum of five (5) minority households in becoming homeowners. The actions taken to establish and oversee a minority outreach program within our jurisdiction are as follows: • Advertise the First Time Homebuyers Program by brochures and flyers in Spanish, Vietnamese and English monthly. • Conduct homebuyer seminars monthly; inform and educate minority homebuyers as well as all low and moderate income homebuyers on credit, debt management, budgeting, money management and saving, insurance and the entire homebuying process. • Collaborate the City's efforts with public housing authorities, banks, mortgage companies, non profit organizations, real estate agents contractors, local business, churches and other community housing agencies in outreach as well as advertisement to the entire golden triangle about Home buying opportunities. • Annually a Fair Housing Conference is conducted with partners of the Golden Triangle to inform and educate the minority and all citizens about Equal and Fair Housing opportunities by distributing information relative to the city's Housing Programs. Section 3 The City of Port Arthur's Housing & Neighborhood Revitalization Department will incorporate Section 3 in its existing Procurement Policy and adopt a Section 3 Contracting Policy and Procedure to be included in all procurements generated for use with HUD funding. The policy and procedures contain goal requirements for awarding contracts to Section 3 Business Concerns. Third Program Year Action Plan 13 Version 1.3 Jurisdiction All contractors /businesses will be required to seek Section 3 preference before submitting bids /proposals to the City of Port Arthur's Purchasing Department & Housing & Neighborhood Revitalization Department and will be required to complete certifications, as appropriate, as acknowledgement of the Section 3 contracting and employment provisions required by this section. Such certifications shall be adequately supported with appropriate documentation as referenced in the form. Program Participant Responsibilities • Written procedures governing notification to eligible residents about employment and training opportunities generated by Section 3 covered assistance 24 CFR 135.32 (a) requires that HUD grantees must provide adequate notification to all potential Section 3 eligible about possible Section 3 employment and training opportunities. The Housing Division will certify Section 3 program participants who reside in the City of Port Arthur and who are seeking preference in training and employment by completing and attaching adequate proof of Section 3 eligibility, as required. • Whenever the City of Port Arthur holds a public hearing, whether for an Annual Action Plan, CAPER, or Consolidated Plan, participants will be informed of the City's Section 3 efforts; • All persons living in the City who meet the Section 3 eligibility guidelines can, by appointment, visit with the Housing & Neighborhood Revitalization Director, Mike Mason and the Purchasing Manager, Shawna Tubbs, to complete a job readiness assessment. • Once this assessment is complete, the Housing & Neighborhood Revitalization Director, Mike Mason and the Purchasing Manager, Shawna Tubbs, will determine if the individual meets the eligibility requirements and is job ready. • If the individual is deemed eligible for Section 3 participation and deemed not ready for employment, a referral will be made to other agencies that are better equipped to address the individual's needs, i.e., substance abuse providers, etc. • The Section 3 job readiness component is a part of the City of Port Arthur's commitment to provide economic opportunities and training to residents /eligible participants to become gainfully employed. • Twice a year, public housing residents will be notified of Section 3 possibilities for training and employment in an insert mailed with their monthly rent statements. The Housing Division will coordinate this marketing through the Division of Tenant Resources. • Written procedures governing notification to Section 3 business concerns about contracting opportunities generated by Section 3 covered assistance 24 CFR 135.32 (b) requires that HUD grantees must provide adequate notification to all potential Section 3 business concerns about contract opportunities generated by Section 3 covered assistance. The Housing Division will use the following methods to notify and contract with Section 3 business concerns when contracting opportunities exist. Third Program Year Action Plan 14 Version 1.3 Jurisdiction • Whenever the Housing Division holds a public hearing, whether for an Annual Action, Plan, CAPER, or Consolidated Plan, participants, including businesses and contractors, will be informed of the City's Section 3 efforts; • Advertise contracting opportunities via newspaper, mailings, posting notices that provide general information about the work to be contracted and where to obtain additional information. • Whenever an existing HPD Contract is signed or renewed, all subrecipients and contractors will receive copies of the HUD Section 3 brochure (HUD- 1476 -FHEO Rev 2 )for themselves and to distribute to subcontractors they might use. • Provide written notice of contracting opportunities to all known Section 3 business concerns. The written notice will be provided in sufficient time to enable business concerns the opportunity to respond to the bid invitation. • Coordinate pre -bid meetings at which the Section 3 business concerns would be informed of upcoming contracting opportunities in advance. • Conduct workshops on Housing Division contracting procedures to include bonding, insurance, and other pertinent requirements, in a timely manner in an effort to allow Section 3 business concerns the opportunity to take advantage of any upcoming contracting opportunities. • Contact the City of Port Arthur's Business Development Department, business assistance agencies, Minority and Women's Business Enterprise (M /WBE) contractor associations and community organizations to inform them of contracting opportunities and to request their assistance in identifying Section 3 businesses. • Establish relationships with the Small Business Administration (SBA), Minority and Women's Business Enterprise M /WBE association, Community Development Corporations, and other sources as necessary to assist SPHA with educating and mentoring residents with a desire to start their own businesses. • Seek out referral sources in order to ensure job readiness for public housing residents through on- the -job- training (OJT) and mentoring to obtain necessary skills that will transfer into the external labor market. • Develop resources or seek out training to assist residents interested in starting their own businesses to learn to prepare contracts, prepare taxes, and obtain licenses, bonding, and insurance. • The establishment of and fulfillment of numerical goals for employment and training opportunities for residents and contracting employees for Section 3 business concerns LEAD -BASED PAINT HAZARDS Third Program Year Action Plan 15 Version 1.3 Jurisdiction The City of Port Arthur has incorporated HUD lead -based paint guidelines into its Housing Assistance Program Guidelines. According to 24 CFR Part 35, HUD requires that purchasers and tenants of HUD associated housing constructed prior to 1978 shall be notified: that the property was constructed prior to 1978; That the property may contain lead -based paint; Of the hazards of lead -based paint; Of the symptoms and treatment of lead -based paint; Of the precautions to be taken to avoid lead - based paint poisoning. Also, our applicants sign certification that they have been informed and made aware of LBP and its hazards and they are given LBP brochures. The certification document provide information regarding the jobs requiring lead - based paint hazard reduction, the Programs require homeowners be protected. This means that occupants may not enter the work site during lead hazard reduction activities. Re -entry is permitted only after work which may create lead hazards (by disturbing the lead -based paint) has been completed and the unit has passed a clearance examination. If repair /rehabilitation is extensive, homeowners must be temporarily relocated. Furniture and other belongings must be covered and sealed with protective plastic sheeting. Storage of major furniture and removal of all small furnishings during the hazardous materials reduction work may sometimes be necessary. Homeowners are responsible for carefully packing all breakables and removing all clothing from closets. The Homeowner then agrees to cooperate with the City in protecting their belongings and removing temporarily if required. The agree not to re -enter the home or move belongings back until the City has authorized re- occupancy and provided a Re- Occupancy Notice -Lead Hazards Form. MONITORING The City of Port Arthur shall meet all requirements set forth by the Office of Management and Budget and shall comply with the requirements and standards of OMB Circular A -87 and A -133, and with the applicable sections of 24 CFR Part 85. An independent audit is conducted annually to ensure that CDBG funds are used in accordance with program requirements. HOME Tenant -Based Rental Assistance The City of Port Arthur doesn't use HOME funds for tenant -based rental assistance. Forms of Investment The City of Port Arthur will use its HOME funds only in areas of assistance as described in 24 CFR 92.205. Affirmative Marketing Third Program Year Action Plan 16 Version 1.3 Jurisdiction The City of Port Arthur homebuyer's program is primarily done on scattered sites. There are no current plans for projects of five or more units. The City currently advertises in the local newspaper and always uses the Equal Housing Opportunity logo on all advertisements. Minority /Women's Business Outreach The City of Port Arthur's Housing Division advertises for minority and women's businesses in the local newspaper and in local minority newspapers and radio stations. Refinancing The City of Port Arthur doesn't intend to use HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with home funds. Fair Housing The City of Port Arthur completed it Analysis of Impediments in 2011 and is taking appropriate actions to overcome the effects of any impediments identified through the analysis, and the City maintains records reflecting the analysis and actions in this regard. Annually the Cities of Port Arthur, Beaumont, Orange, Bridge City, the respective housing authorities, non profit partners and the South East Texas Regional Planning Commission conduct a Fair Housing Conference. The Conference is open to the public with special invitations given to public housing residents and low to moderate - income families. The Conference allows the privilege to inform, educate and empower the citizens of our communities about Equal & Fair Housing for all, regardless of sexual orientation, race, religion, gender identity or marital status. Monitoring The City will monitor each subrecipient by reviewing reimbursement requests as well as conducting on -site monitoring visits. The subrecipient will be required to submit monthly performance reports. Monitoring sub grantees provides a basis for assessing program operations and identifying problems. A secondary goal of monitoring is to obtain ongoing data for use in determining program achievement. Evaluations will summarize monitoring findings, program goals and measure progress toward those goals during the provision of services. The City has responsibility for overall HOME Program performance and Consolidated Plan compliance, including the performance of its sub grantees. Clear record keeping requirements for sub grantees are essential for grant accountability. Responsibility for maintaining many of the records is assigned to the sub recipient. This includes responsibility for documenting activities with special requirements, such as necessary determinations and income verification. The City shall meet all HUD requirements for Consolidated Plan compliance and will review all relevant funding proposals for consistency with Consolidated Plan strategies. Third Program Year Action Plan 17 Version 1.3 Jurisdiction Housing projects and activities are monitored with on -site inspections on a day to day basis as follows to ensure compliance with Federal, State, Local codes, ordinances, regulations and standards: 1. On -site inspections and monitoring of construction activities are conducted on a day to day basis, by certified and qualified City staff to ensure homes are developed and provided in compliance with Builidng the following Codes: NEC 2002, IRC 2006, IBC 2006, IPC 2006, IMC 2006, IECC 2006, HQS and locally adopted property standards. 2. Written documentation of construction progress, including pictures of the phases of construction are required. 3. Critical inspections are conducted as follows: a. Footings, Termite Treatments & Foundations b. Framing c. Roofing d. Plumbing e. Electrical f. Mechanical g. Sheetrocking h. Painting & Trim Installation of exterior siding (or brick veneer), j. Installation of cabinets and flooring k. Landscaping 4. Funds are not disbursed until phases of construction are inspected by Certified Inspectors, authorized representatives from the department, the Homeowner, with the contractor attendance. 5. Subrecipient, Contractors and Vendors performance are evaluated and reviewed prior to execution of agreements and annually. 6. Other inspections are provided as required AT ry^,; Y L ..p 3 1 y � F SY� 1 ,,< W � �n _ .te �� ., � .. �36� 'WW Specific Homeless Prevention Elements *Please also refer to the Homeless Needs Table in the Needs.xls workbook. 1. Sources of Funds — Identify the private and public resources that the jurisdiction expects to receive during the next year to address homeless needs and to prevent homelessness. These include the McKinney -Vento Homeless Assistance Act programs, other special federal, state and local and private funds targeted to homeless individuals and families with children, especially the chronically homeless, the HUD formula programs, and any publicly -owned land or property. Please describe, briefly, the jurisdiction's plan for the investment and use of funds directed toward homelessness. Third Program Year Action Plan 18 Version 1.3 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 major 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 collaborative efforts of the City of Port Arthur, its citizens, nonprofit organizations and service agencies, a five -year investment plan was derived. The Consolidated Plan establishes the City's goals for providing decent housing, suitable living environments and expanding economic opportunities for its citizens. These strategies will be achieved through the allocation of federal funds from the Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) programs and other sources received. The 2014 Consolidated Action Plan summarizes the major housing and community development needs of low- moderate income households in Port Arthur. The program year begins on June 1 and ends on May 31. The 2014 allocations are as follows: • $1,043,729 in Community Development Block Grant (CDBG) funds • $ 233,391 in Home Investment Partnership (HOME) funds The City of Port Arthur anticipates generating $27,300 in CDBG program income and $295,558 in HOME program income during the 2014 program year. The primary sources of program income are loan repayments through CDBG and HOME housing programs and demolition repayments. Program income from the HOME program will fund new home construction and rehabilitation /reconstruction activities. CDBG funds returned to the loan program are used for future lending. The Action Plan also serves as the City of Port Arthur's annual application to HUD for these funds. 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. Annual Action Plan 1 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) Specific Housing Objectives /Strategic Housing Plan of the City of Port Arthur Housing Policy: City of Port Arthur Annual Consolidated Action Plan Plan (5 -year plan) Specific Housing Objectives /Strategic Housing Plan of the City of Port Arthur Housing Programs The overall objective of the Housing Programs is the development of viable communities, fostering neighborhood revitalization by providing affordable housing, promoting a suitable living environment, and expanding economic opportunities primarily for low and moderate income persons and families of the City of Port Arthur. The Housing Assistance Division has developed a Housing Policy to provide guidance to the City Council and the community, which provides the framework for the development of a multiyear strategy and annual action plans to address and meet the needs of affordable housing. The following housing goals, objectives and proposed programs for the years 2010 — 2014 are incorporated in the Housing policy and the Comprehensive Plan. PRIORITY Non - Housing Community Development Needs The City of Port Arthur has identified the following priority non - housing community development needs eligible for assistance by CDBG: 1. Elimination of slums and blight and the prevention of blighting influences that adversely affect the welfare of the community, principally persons of low and moderate income. 2. Elimination of conditions which are detrimental to health, safety and public welfare, through code enforcement, demolition, residential rehabilitation assistance, and related activities. 3. Conservation and expansion of the City's housing stock in order to provide a decent home and a suitable living environment for all persons, but principally those of low and moderate - income. 4. Expansion and improvement of the quantity and quality of community services, principally for persons of low and moderate - income, which are essential for sound community development and for the development of a viable urban community. 5. A more rational utilization of land and other natural resources within CDBG eligible areas. 6. The restoration and preservation of properties of special value for historic, architectural, or esthetic reasons. Annual Action Plan 2 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) 7. The alleviation of physical and economic distress through the stimulation of private investment and community revitalization. 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 administered the Community Development Block Grant for over thirty years and HOME Investment for over 10 years. The City of Port Arthur shall meet all requirements set forth by the Office of Management and Budget and shall comply with the requirements and standards of OMB Circular A -87 and A -133, and with the applicable sections of 24 CFR Part 85. An independent audit is conducted annually to ensure that CDBG funds are used in accordance with program requirements. The City has satisfied all HUD requirements for Consolidated Plan compliance including maintaining IDIS data information and environmental reviews for CDBG and HOME projects and conducting annual audits by independent auditors. 4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan. CITIZEN PARTICIPATION PROCESS In an effort to increase public participation in the Consolidated Plan process, the City of Port Arthur conducted two public hearings. The first public hearing was on November 18, 2013 at Robert "Bob" Civic Center at 3401 Cultrural Center Drive. The second public hearing was held on May 6, 2014 on the fifth floor of city hall. The purpose of the hearings was to inform the public of the consolidated planning process and to solicit comments and suggestions on the allocation of funds. Notices for the hearings were published in the Port Arthur News. The agencies that were notified by mail to solicit input and participation are listed below: • Catholic Charities • Program of Health Excellence • Love at Work • Port Arthur Neighborhood Action Council • South East Texas Regional Planning Commission Annual Action Plan 3 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) • James Hope Center • Port Arthur YMCA • Port Cities Rescue Mission • Port Arthur Flyers Track Club • Southeast Texas Camp Fire • Community Retirement Home • Lamar State College — Port Arthur • Gift of Life Program • Nutrition and Services for Seniors 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. Citizens were given an opportunity to provide comments during the two public hearings as well as submit written comments. Comments during the public hearings included questions about the City's Housing Assistance Programs, the Hurricane Ike Disaster funding available for families whose homes were damaged in Hurricane Ike, and the Community Development Block process. 6. Summary of comments or views not accepted and the reasons for not accepting them All comments were accepted. 7. Summary The 2014 Consolidated Action Plan summarizes the major housing and community development needs of low- moderate income households in Port Arthur. The program year begins on June 1 and ends on May 31. The 2014 allocations are as follows: • $1,043,729 in Community Development Block Grant (CDBG) funds • $ 233,391 in Home Investment Partnership (HOME) funds The City of Port Arthur anticipates generating $25,000 in CDBG program income and $276,000 in HOME program income during the 2014 program year. The primary sources of program income are loan repayments through CDBG and HOME housing programs and demolition repayments. Program income from the HOME program will fund new home construction and rehabilitation /reconstruction activities. CDBG funds returned to the loan program are used for future lending. Annual Action Plan 4 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) The Action Plan also serves as the City of Port Arthur's annual application to HUD for these funds. 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. CITIZEN PARTICIPATION PROCESS In an effort to increase public participation in the Consolidated Plan process, the City of Port Arthur conducted two public hearings. The first public hearing was on November 18, 2013 at Robert "Bob" Bowers Civic Center at 3401 Cultural Center Drive.. The second public hearing was held on May 6, 2014 on the fifth floor of city hall. The purpose of the hearings was to inform the public of the consolidated planning process and to solicit comments and suggestions on the allocation of funds. Notices for the hearings were published in the Port Arthur News. The agencies that were notified by mail to solicit input and participation are listed below: • Catholic Charities • Program of Health Excellence • Love at Work • Port Arthur Neighborhood Action Council • South East Texas Regional Planning Commission • James Hope Center • Port Arthur YMCA • Port Cities Rescue Mission • Port Arthur Flyers Track Club • Southeast Texas Camp Fire • Community Retirement Home • Lamar State College — Port Arthur • Gift of Life Program • Nutrition and Services for Seniors Annual Action Plan 5 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) +., o c o c a, (a E tin ` ) °' L c E 0 CO a.) v aJ O E > E U ✓ 0 Q O 4J C cu C aJ _C > O L 4— cu t- - i 4- O Co o c co vi v O (1) C 4J MO 4— t.0 ra CU (5 • v - i . V c N E U ° v .> a -. - c as L ,_ _0 0 co CU 4- • Q C 7 C Q cu ro ID L L L U Q (a Q Q ° L of CU > O 0 0 E d d a) C O 2 4- 0 to p `n ai !n � 4-' C �-% O ra L •0 U (U a) c O O CL C CO o (o E N u (a L f0 • N O j ED Y O O. 0 0 ° CU V, ° o 0 n3 c cu ° c° Q E . 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W W c us N .E a4 _c 3 'E U c a O tla U ' Q. i Q - c (6 C m O � o _ 'a C E O 0.0 ca O + , X N RI cu t C a Q a c - t Q- a) c B CD a o J b.° 4-. co < Q V o '- 0 1— c CID v co N z Q Q Q Q Q > >� 0 v i c Q 'a w o LA L l L 0 Ur LLI 0 •� O (1) 'a p .O w o 9 S.) on 7 : 3 pp ° a L U U . v n aJ w i U `^ p v 0 0 0 L aJ E a L Q> C co 1:' d r i 10 n 0 2 2 2 co H ( te a H vi . E v 0 0 2 o N C cti C- C o U O Q N CO 7 C C Q M I N ti L 00 0 O M CO 00 in m N 0 C71 00 4-, C 0 00 C y ci MI X -0 0, s 0 E c , E v o 0 CO i N L CIA L Z L Q O 7 a.) a Q z O L CL t O E tri Q t 7 v c C a Z v + c� co x '^ co 0 a H u- E 0 AP -10 Consultation — 91.100, 91.200(b), 91.215(1) 1. Introduction In an effort to increase public participation in the Consolidated Plan process, the City of Port Arthur conducted two public hearings. The first public hearing was on November 18, 2013 at Robert "Bob" Bowers Civic Center. The second public hearing was held on March on the fifth floor of city hall. The purpose of the hearings was to inform the public of the consolidated planning process and to solicit comments and suggestions on the allocation of funds. Notices for the hearings were published in the Port Arthur News. 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)) Port Arthur consulted with the Port Arthur Housing Authority, the Southeast Texas Regional Planning Commission Continuum of Care organization and several non - profit groups to develop the 2014 Annual Plan. 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. Port Cities Rescue Mission and the Hospitality Center are the only homeless shelter and soup kitchen in the city that addresses the needs of 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 Consultation with the Continuum of Care concerning allocating ESG funds was not required since Port Arthur isn't an Emergency Shelter Grant fund recipient. 2. 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CU ff) c 'E aJ v O 0 0 0 0 0 O . 7. c H v 4- CU 0 o 0 . o . 0 . 0. O . O . C O }' E . o Q. 17. U . v u 7: v . v . v O (� N . of H L t .c L o u fA a) fa a) ca a) fa a) as a) as a) 4 . cu N — 0) Z H Z O Z O Z O Z O 2 O Z D L v >- o a) .0 +, Q fa fa (a 113 fa fa fa fa CO CO fa (a co 0° ( c O O O O O O O O O O O O co - o o C7 C7 C7 C7 C7 C7 C7 C7 C7 C7 C7 C7 O - 73 E m 0 r-1 O N M Cr (A N W CD 2 E 2 o AP -35 Projects — 91.220(d) Introduction Attached are the 2014 CDBG projects as approved by City Council. The City of Port Arthur anticipates receiving $1,043,729 of Community Development Block Grant funds for the 2014 program year. 15% of the grant funds, $156,550, has been allocated for public service organizations. The City of Port Arthur anticipates receiving CDBG Program Income from loan repayments in the amount of $27,300 that will be used for affordable housing projects. Annual HOME Allocation -- $233,391 10% Administration -- $20,681 15% Setaside for CHDO Activities -- $31,022 5% CHDO Operating -- $1,551 Balance will be used for Rehab /Demo & Reconstruction Projects -- $153,555 The City of Port Arthur anticipates Program Income in the amount of $295,558 from HOME Program loan repayments and the sell of new construction homes, and will be used for affordable housing projects. # Project Name 1 Program of Health Excellence 2 Love at Work Academy 3 Nutritional and Services for Seniors 4 Port Arthur American Little League 5 Triangle Aids Network 6 Community Retirement Home 7 Experience Corp 8 Port Arthur Neighborhood Action Council (PANAC) 10 Jefferson County Adult Day Center 11 Catholic Charities - Hospitality Center 12 YMCA 13 Heritage Life Center 14 Texas Recyclers Association 15 Tender Loving Care dpa Legacy CDC 16 Inspire, Encourage, Achieve 17 Gift of Life Program 18 Port Arthur Flyers Track Club Annual Action Plan 18 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) # Project Name 19 City of Port Arthur Health Department 20 Grants Management 21 City of Port Arthur Environmental Health Officer 22 City of Port Arthur Housing Assistance Administration 23 City of Port Arthur Public Works Dept. - Street Reconstruction 24 HOME Activities 25 Housing Rehabilitation Table 7 — Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The city doesn't anticipate any obstacles to addressing underserved needs. 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C {A L 4, Q _ a-' u @ 0 Z � i 0 H w J O d u R 0 0 4- _ L O N E m O m t m L C fp H O E cu O 4- CU ul Q, .0 in ea c a o 4 • 4 , 4- , o U �-+ 74 1.- 5 .- < O N 0 — N C Y = co O v c1 0 C cu C m i Q V CZ C C D C C — O 0 Q as m o 0 w- to co +, a a co t O 4J 0 t _c v O >- ,c O OD t/? C C N ti E 4J • � .N — V E -C ,--1 ■ 7 7 CD O m 2 2 U V E 1i - 1 'O v ri i 3 0 N. 4) +' 0 c 0 (3 L cu 41 N c h S . i+ c a� � 5 o C C. L = s 'C 0 vs 0 +� G O 0 Q 3 Q f+ Q w 4- w H 0 Q N ui 0 N C .- O w- +' • r C Z is w " pp E v a) '? 0 c 0 OL ny O G1 = GL1 fa y T d V 0 f6 = a H C7 Z LL CI F - w +.e 03 J a 0 0 N 0 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 GEOGRAPHIC DISTRIBUTION The City of Port Arthur will operate its HUD programs in predetermined eligible target areas based on need. Because low- income, elderly, disabled and special needs homeowners reside throughout the city, housing assistance is available citywide. Homeless persons and those faced with potential homelessness, also residing throughout the city, making the need for sheltering and housing a citywide activity. Assistance for special needs populations (elderly, disabled, persons with drug /alcohol additions, persons with HIV /AIDS) is provided citywide as these populations exist throughout the city. Public Services are also not limited geographically. The city recognizes the need that exists within the target areas. However, the city reserves the right to provide assistance to any area where a demonstrated need exist. Geographic Distribution Target Area Percentage of Funds City Wide 95 Environmental Inspector Area 5 Table 8 - Geographic Distribution Rationale for the priorities for allocating investments geographically Area wide benefit allows the city to assist low- income homeowners city -wide and to provide services for low to moderate - income throughout the city. Discussion None Annual Action Plan 34 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) Affordable Housing AP -55 Affordable Housing — 91.220(g) Introduction The City of Port Arthur's priority and objective is to continue to help provide affordable, decent and safe homes for citizens that were impacted by Hurricanes RITA and IKE and those living in substandard housing conditions. Qualifying and providing assistance to low and moderate income homebuyers is also a priority within the city. HOME funds will be used to assist Homebuyers with down payment and closing costs associated with the purchase of homes. The financial assistance will be provided as a direct benefit to the eligible homebuyer. Federal HOME and CDBG Program funds will be used in the emergency rehabilitation or demolition and reconstruction of identified eligible homeowners. The City of Port Arthur will convey property, on an as needed basis to homeowners that live on substandard lots. CDBG funds will be used to assist eligible homeowners with emergency repairs to help eliminate immediate threats to the health and safety of the owners and their families. Port Arthur's one year goal is to provide affordable housing units to eighteen (18) non - homeless and special needs households and using funds made available to the jurisdiction. Two (2) new homes will be constructed for homebuyers. A total of five (5) families will be provided down payment and closing costs assistance as a direct benefit. The City does not participate in multifamily housing projects and will not use HOME Program funds to refinance existing debt secured by multifamily housing that is being rehabilitated with HOME funds. Forms of Investments The City provides deferred forgivable below market rate loans to eligible homeowners. Down payment and closing costs assistance is provided to eligible homebuyers as a direct benefit to assist with costs associated with the purchase of homes. Eligible applicants receive up to $30,000 to assist with purchasing a new construction home and those purchasing existing homes receive $10,500. One Year Goals for the Number of Households to be Supported Homeless 0 Non - Homeless 18 Annual Action Plan 35 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) One Year Goals for the Number of Households to be Supported Special -Needs 2 Total 20 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 2 Rehab of Existing Units 18 Acquisition of Existing Units 0 Total 20 Table 10 - One Year Goals for Affordable Housing by Support Type Discussion HOME Program: The City propose to assist a minimum of three (3) minority households in becoming homeowners. The actions taken to establish and oversee a minority outreach program within our jurisdiction are as follows: • Advertise the First Time Homebuyers Program by brochures and flyers in Spanish, Vietnamese and English monthly. Conduct homebuyer seminars monthly; inform and educate minority homebuyers as well as all low and moderate income homebuyers on credit, debt management, budgeting, money management and saving, insurance and the entire homebuying process. Collaborate the City's efforts with public housing authorities, banks, mortgage companies, non profit organizations, real estate agents contractors, local business, churches and other community housing agencies in outreach as well as advertisement to the entire golden triangle about Home buying opportunities. Annually a Fair Housing Conference is conducted with partners of the Golden Triangle to inform and educate the minority and all citizens about Equal and Fair Housing opportunities by distributing information relative to the city's Housing Programs and other economic opportunities. Annual Action Plan 36 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) AP -60 Public Housing — 91.220(h) Introduction The Port Arthur Housing Authority currently owns and maintains 86 Public Housing units located within the City of Port Arthur. Eighty -six (86) units make -up Lakeview Palms located at 5200 Gulfway Drive on the east side of town and twelve (12) single family homes make up the public housing scattered site program. Actions planned during the next year to address the needs to public housing The Housing Authority also provides rental assistance for 2,849 Section 8 Housing Choice Vouchers for low to moderate - income families throughout the local community, Texas and neighboring states. The Port Arthur Housing Authority currently has a public housing low rent waiting list consisting of 1,372 names on the Public Housing list and 2,600 names on the Section 8 Housing Choice Voucher waiting list. Carver Terrace Apartments are fifty plus years old and deteriorating. Over the past ten years different repairs have taken place at Carver Terrace. Examples of repairs are central air conditioning and heating units were installed, new roofs installed, stairwells and staircases were replaced, and exterior and interior painting has been completed. However, the complexes are still in a deteriorating state. The Port Arthur Housing Authority Board of Commissioners has voted to dispose of the two sites and have received approval from the U.S. Department of Housing and Urban Development for permission to dispose of the sites. The Housing Authority has collaborated with its developer to create a redevelopment plan at multiple off -site locations for over 300 units of a combination of family and elderly housing. The estimated total cost of the project is at $39.5 Million with $20.5 Million expected to be funded with CDBG disaster funds. The construction of single family homes, approximately 48 are also planned for future development sites, including housing authority owned properties, with locations and quantities to be determined continent upon availability of additional funding. The PHA has applied and has received approval to designate a number of public housing for occupancy only by the elderly families 62 or older as provided by section 7 of the U.S. Housing Act of 1937 (42 U.S.C. 1437e). The Redevelopment Plan is subject to refinement, with one property financial closing in March 2014 and the other to close by fall of 2014. Actions to encourage public housing residents to become more involved in management and participate in homeownership The Port Arthur Housing Authority is committed to encouraging public housing residents to become more involved in management and participate in homeownership activities. During the past year, the Housing Authority formally adopted a Section 3 Policy and filled a Section 3 Coordinator position which will promote the highest preferences are awarded to public housing residents for open management positions within the Agency for qualified public housing residents. Additional outreach will also occur to insure public housing residents are notified of position openings within the Agency. As part of the Annual Action Plan 37 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) Section 3 Policy, the Port Arthur Housing Authority has established a goal of hiring at least 30% of the aggregate number of full -time new hires by the PAHA and its contractors to be Section 3 residents, with a preference for residents at the development where the work is being performed. With a concerted effort on Section 3 efforts, the Port Arthur Housing Authority expects more public housing residents to become part of its management team and become more involved in management operations. In the upcoming year, the Port Arthur Housing Authority also intends to explore more opportunities for potential homeownership for public housing residents. The Agency has received grant funds from the Department of Housing and Urban Development to provide staffing to hire a Resident Opportunity Self Sufficiency Coordinator. 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 isn't designated as troubled. Discussion None Annual Action Plan 38 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) AP -65 Homeless and Other Special Needs Activities — 91.220(i) Introduction The City of Port Arthur completed its Homelessness Prevention and Rapid Re- Housing, HPRP, funding in 2012 and doesn't anticipate receiving any other private or public resources to address homeless needs and to prevent homelessness. Port Arthur will work with the South East Texas Regional Planning Commission's Homeless Coalition to address chronic homelessness, homelessness prevention and to develop and implement a discharge coordination policy. 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 Port Arthur will continue to fund the Hospitality Center, a soup kitchen, that serves daily meals to the homeless and very low income. Addressing the emergency shelter and transitional housing needs of homeless persons Port Arthur has one homeless shelter that provides emergency shelter and transitional housing services for homeless persons. 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 Port Cities Rescue Mission is the only homeless shelter is Port Arthur that assists with helping homeless persons to make the transition to permanent housing and independent living. 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, employment, education, or youth needs. Annual Action Plan 39 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) Port Arthur's housing assistance programs assist low income families with housing needs as well as the Port Arthur Public Housing Authority. Discussion none One year goals for the number of households to be provided housing through the use of HOPWA for: Short -term rent, mortgage, and utility assistance to prevent homelessness of the individual or family Tenant -based rental assistance Units provided in housing facilities (transitional or permanent) that are being developed, leased, or operated Units provided in transitional short -term housing facilities developed, leased, or operated with HOPWA funds Total Annual Action Plan 40 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) 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. 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 none Annual Action Plan 41 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) AP -85 Other Actions — 91.220(k) Introduction Actions planned to address obstacles to meeting underserved needs The City of Port Arthur has no policies in place that hinders the availability of affordable housing. Although no action nor reform steps are required, the City will continue to seek resourceful and innovative ways to make affordable housing available to all residents. Actions planned to foster and maintain affordable housing The City of Port Arthur has no policies in place that hinders the availability of affordable housing. Although no action nor reform steps are required, the City will continue to seek resourceful and innovative ways to make affordable housing available to all residents. Actions planned to reduce lead - based paint hazards LEAD -BASED PAINT HAZARDS The City of Port Arthur has incorporated HUD lead -based paint guidelines into its Housing Assistance Program Guidelines. According to 24 CFR Part 35, HUD requires that purchasers and tenants of HUD associated housing constructed prior to 1978 shall be notified: that the property was constructed prior to 1978; That the property may contain lead -based paint; Of the hazards of lead -based paint; Of the symptoms and treatment of lead -based paint; Of the precautions to be taken to avoid lead -based paint poisoning. Also, our applicants sign certification that they have been informed and made aware of LBP and its hazards and they are given LBP brochures. The certification document provide information regarding the jobs requiring lead -based paint hazard reduction, the Programs require homeowners be protected. This means that occupants may not enter the work site during lead hazard reduction activities. Re -entry is permitted only after work which may create lead hazards (by disturbing the lead -based paint) has been completed and the unit has passed a clearance examination. If repair /rehabilitation is extensive, homeowners must be temporarily relocated. Furniture and other belongings must be covered and sealed with protective plastic sheeting. Storage of major furniture and removal of all small furnishings during the hazardous materials reduction work may sometimes be necessary. Homeowners are responsible for carefully packing all breakables and Annual Action Plan 42 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) removing all clothing from closets. The Homeowner then agrees to cooperate with the City in protecting their belongings and removing temporarily if required. The agree not to re -enter the home or move belongings back until the City has authorized re- occupancy and provided a Re- Occupancy Notice -Lead Hazards Form. Actions planned to reduce the number of poverty - level families Antipoverty Strategy Lamar State College — Port Arthur. In other efforts to raise families out of poverty, the City's Lamar State College — Port Arthur (LSCPA) Scholarship Program continues to assist residents in receiving a college education. The Program is designed to lower the cost of education making it affordable to anyone desiring to receive either a vocational /technical certificate or complete the first two years of academic college courses. The City by way of CDBG funds provides qualified students with tuition, fees, and cost of books. Eligible applicants for the Lamar State College Port Arthur scholarship are defined as person who meet the following requirements: • Family income of 80% or less of the median income for the Port Arthur MSA: • Does not qualify for a federal Pell Grant as determined by the U. S. Department of Education or any acceptable methodology (e. g., Electron Need Analysis System) that determines Pell eligibility approved by the U. S. Department of Education; • Is a resident of Port Arthur according to the criteria established by the State of Texas as applied to the City of Port Arthur; • Meets the entrance requirements for Lamar State College Port Arthur and adheres to LSCPA's published application guidelines; • Is not in default on student loans and does not owe on a federal grant; • Agrees to abide by program rules and provide certain information and statistical data necessary to evaluate program effectiveness; • Has established a degree plan with LSCPA; and • Maintains a 2.0 (equivalent to a C) grade point average for all course work attempted except that: Students with no prior college credit must maintain a 2.0 (equivalent to a C) grade point Annual Action Plan 43 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) average for all course work attempted after receiving initial assistance to participate in the program; and Students with prior college course work must have a minimum 2.0 grade point average for all course work attempted after receiving assistance to participate in the program. Actions planned to develop institutional structure The Consolidated Plan process was a collaborative effort between the City departments, citizen's comments, the local housing authority and information gathered from non - profit agencies and public institutions. The organizational relationship between the City of Port Arthur and the Housing Authority of the City of Port Arthur is based on a Cooperative Agreement that was originally executed in 1949. This agreement remains in full force today and covers such things as fire, police, health protection and services, public streets, sidewalks, sewer and water system, garbage and trash collection. The Port Arthur Housing Authority is a separate entity from the City of Port Arthur. The Mayor of Port Arthur appoints the Board of Commissioners. The Housing Authority performs all other activities such as hiring, contracting and procurement. Actions planned to enhance coordination between public and private housing and social service agencies The city will continue to invite citizens and other public entities to participate in the CDBG process. Discussion MONITORING The City of Port Arthur shall meet all requirements set forth by the Office of Management and Budget and shall comply with the requirements and standards of OMB Circular A -87 and A -133, and with the applicable sections of 24 CFR Part 85. An independent audit is conducted annually to ensure that CDBG funds are used in accordance with program requirements. Subrecipient Monitoring Monitoring subgrantees provides a basis for assessing program operations and identifying problems. A secondary goal of monitoring is to obtain ongoing data for use in determining program achievement. Evaluations will summarize monitoring findings, program goals and measure progress toward those goals during the provision of services. The City has responsibility for overall CDBG performance and Consolidated Plan compliance, including the performance of its subgrantees. Clear record keeping requirements for subgrantees are essential Annual Action Plan 44 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) for grant accountability. Responsibility for maintaining many of the records is assigned to the subrecipient. This includes responsibility for documenting activities with special requirements, such as necessary determinations and income verification. The City shall meet all HUD requirements for Consolidated Plan compliance including ensuring timeliness of expenditures and reviewing all relevant funding proposals for consistency with Consolidated Plan strategies. The City will monitor each subrecipient by reviewing reimbursement requests as well as conducting on- site monitoring visits. The subrecipient will be required to submit monthly performance reports. Monitoring sub grantees provides a basis for assessing program operations and identifying problems. A secondary goal of monitoring is to obtain ongoing data for use in determining program achievement. Evaluations will summarize monitoring findings, program goals and measure progress toward those goals during the provision of services. The City has responsibility for overall HOME Program performance and Consolidated Plan compliance, including the performance of its sub grantees. Clear record keeping requirements for sub grantees are essential for grant accountability. Responsibility for maintaining many of the records is assigned to the sub recipient. This includes responsibility for documenting activities with special requirements, such as necessary determinations and income verification. The City shall meet all HUD requirements for Consolidated Plan compliance and will review all relevant funding proposals for consistency with Consolidated Plan strategies. Housing projects and activities are monitored with on -site inspections on a day to day to ensure compliance with Federal, State, Local codes, ordinances, regulations and standards. Annual Action Plan 45 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) Program Specific Requirements AP -90 Program Specific Requirements — 91.220(1)(1,2,4) Annual Action Plan 46 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) Introduction Resale /Recapture Provisions: 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 as a 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 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.AAAAA 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 HolderAAAAA ), which note is secured by a first deed of trust (the First Deed of TrustAAAAA ) dated of even date therewith encumbering certain real property located in Port Arthur, Texas. 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 Annual Action Plan 47 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) 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. 70.00% 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: City general funds will be used to supplement staff salaries for implementation of the Federal HOME and CDBG Programs. Annual Action Plan 48 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) 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: Homes acquired with HOME program funds have to satisfy the affordability requirements as identified in the City's " Recaputre Provisions" for a time no less than the applicable period as indicated the table that follows, beginning after a project has been completed. During the affordability period, the following rules related to the buyers investment and the HOME program funds are applicable: • The dwelling acquired with the HOME subsidy will be the principal residence of the participant and will not be rented or used for other purposes. • The participant will not engage the property to obtain a mortgage, gift, sell or exchange the property without the written consent of the Municipality of the City of Port Arthur, Texas. • The Municipality will inspect the property to assure that the participant is in compliance with these requirements during the affordability period of the property. • The non - compliance with the terms and condition mentioned in this provision will obligate the participant to reimburse the total amount of the subsidy to the Municipality. • The affordability period of the property will be as follows: 10 years for an amount up to $30,000 and 5 years for an amount up to $10,500. If the participant sells the property within the affordability periods and net proceeds are sufficient to repay HOME Program Funds invested and homeowner investment, the Municipality will recover the full amount of HOME investment only. The participant will recover any amount for investments and apply the following formula for distribution of surplus net proceeds. If the participant sells the property within any of the affordability periods, but net proceeds are insufficient to repay HOME and homeowner investment, the Municipality will allow the participant to recover its whole investment before recapturing HOME investments. The participant will allow that the HOME subsidy constitute a second mortgage to their property. In addition to the recapture restrictions to be incorporated in the deed of sale and promissory note, other provisions will be established to guarantee that the units remain affordable for subsequent homebuyers. In the implementation of the Homeownership Program, the Department will comply and will require recipients to comply with the provisions of 24 CFR 92.217, Income targeting Homeownership and 24 CFR 92.254, Qualifications as affordable housing. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired Annual Action Plan 49 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015) with HOME funds? See 24 CFR 92.254(a)(4) are as follows: Homes acquired with HOME program funds have to satisfy the affordability requirements as identified in the City's " Recapuure Provisions" for a time no less than the applicable period as indicated the table that follows, beginning after a project has been completed. During the affordability period, the following rules related to the buyers investment and the HOME program funds are applicable: The dwelling acquired with the HOME subsidy will be the principal residence of the participant and will not be rented or used for other purposes. The participant will not engage the property to obtain a mortgage, gift, sell or exchange the property without the written consent of the Municipality of the City of PortA Arthur, Texas. The Municipality will inspect the property to assure that the participant is in compliance with these requirements during the affordability period of the property. The non - compliance with the terms and condition mentioned in this provision will obligate the participant to reimburse the total amount of the subsidy to the Municipality. The affordability period of the property will be as follows: 10 years for an amount up to $30,000 and 5 years for an amount up to $10,500. If the participant sells the property within the affordability periods and net proceeds are sufficient to repay HOME Program Funds invested and homeowner investment, the Municipality will recover the full amount of HOME investment only. The participant will recover any amount for investments and apply the following formula for distribution of surplus net proceeds. If the participant sells the property within any of the affordability periods, but net proceeds are insufficient to repay HOME and homeowner investment, the Municipality will allow the participant to recover its whole investment before recapturing HOME investments. The participant will allow that the HOME subsidy constitute a second mortgage to their property. In addition to the recapture restrictions to be incorporated in the deed of sale and promissory note, other provisions will be established to guarantee that the units remain affordable for subsequent homebuyers. In the implementation of the Homeownership Program, the Department will comply and will require recipients to comply with the provisions of 24 CFR 92.217, Income targeting Homeownership and 24 CFR 92.254, Qualifications as affordable housing. Annual Action Plan 50 2014 OMB Control No 2506 -0117 (exp. 07/31/2015) 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 participate in multifamily housing projects and will not use HOME funds to refinance existing debt secured by multifamily housing that is being rehabilitated with HOME funds. Discussion In the implementation of fulfilling the Fair Housing Requirements in accordance with 24 CFR 91.220(1), all developers responsible for building new construction housing (through CDBG and HOME) will be informed of new construction requriements of both the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973. The City will conduct site and neighborhood standards reviews prior to construction, as applicable. Annual Action Plan 51 2014 OMB Control No: 2506 -0117 (exp. 07/31/2015)