HOU-1.03 - Authorize Action Plan for FY 2015-16 - Community Development Block Grant, HOME Investment Partnership, Emergency Solutions Grant, and HUD Program

AUTHORIZE ACTION PLAN FOR FY 2015-16 - COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIP, EMERGENCY SOLUTIONS GRANT, AND HUD PROGRAM

Binding City Policy

BCP-HOU-1.03

PURPOSE 

Section 1. The Council finds that:

1. The City of Portland, as a local government, is eligible to receive four federal housing and community development entitlement grants from the U.S. Department of Housing and Urban Development (HUD):

a.  Community Development Block Grant, pursuant to Title I of the Housing and Community Development Act of 1974, as amended;

b.  HOME Investment Partnership grant, for the development of affordable housing for low- and moderate-income households, as authorized by The HOME Investment Partnership Act, as amended;

c.  Emergency Solutions Act grant, pursuant to Title VI of McKinney-Vento Homeless Assistance Act of 1987 (P.L.100‑71, 416 (b)), as amended; and

d.  Housing Opportunities for Persons with AIDS (HOPWA) grant, pursuant to the AIDS Housing Opportunity Act [42 U.S.C. 12901], as amended.

2. Since 1995, the U.S. Department of Housing and Urban Development (HUD) has required a single consolidated submission for the planning and applications aspects of the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), HOME Investment Partnerships, and Housing Opportunities for Persons with Aids (HOPWA) formula programs. The multi-year Consolidated Plan and annual Action Plans have replaced the Comprehensive Housing Affordability Strategy (CHAS), the HOME program description, the Community Development plan and CDBG final statement, and the ESG and HOPWA applications.

3. The CDBG program regulations provide that jurisdictions may create a consortium for the purpose of applying for formula grants through the submission of a multi-year Consolidated Plan and annual Action Plans. The City of Portland has formed a Consolidated Plan Consortium with the City of Gresham and Multnomah County, Oregon, for this purpose each year since 1991. The City of Portland is the lead jurisdiction in the Consolidated Plan Consortium. The most recent Consortium agreements were executed for FY14-15.

4. The HOME program regulations provide that jurisdictions may create a consortium for the purpose of receiving and administering their HOME grants. The City of Portland has formed a HOME Consortium with the City of Gresham and Multnomah County, Oregon, for this purpose each year since 1991. The City of Portland is the lead jurisdiction in the HOME Consortium. The most recent HOME Consortium agreements are in place through FY 2015-2016 and new agreements will be executed by June 2015.

5. The City of Portland has been designated by HUD as the lead applicant for the HOPWA grant on behalf of Clackamas, Clark, Columbia, Multnomah, Skamania, Washington, and Yamhill Counties. These counties make up the Eligible Metropolitan Statistical Area (EMSA). City staff plans for the allocation of these funds with representatives from the seven counties.

6. Matching funds estimated to equal $ 699,728 are required for the HOME program. The members of the HOME consortium will each contribute their pro rata share of match. Key sources of match are expected to include local Tax Increment funds; local General Funds; grant funds from the State Housing Trust Fund, value of below market financing using the Oregon Affordable Housing Tax Credit; value of donated property and donated labor; the value of property tax exemptions for low- and moderate-income home ownership properties developed in distressed neighborhoods; the value of property tax exemptions for low‑ and moderate-income rental housing owned by charitable non‑profits and rented to income-qualified tenants; the value of property tax exemptions for low- and moderate-income housing developed under the New Multi-Unit Housing program; the value of building permit fee waivers and system development charge waivers; and the value of contributions from charitable and corporate sources. Although General Fund match may be available, federal regulations do not require a General Fund match for the HOME grant.

7. Dollar-for-dollar matching funds are required for the ESG program. The source for the $ 708,283 match is expected to be General Fund allocated in the Portland Housing Bureau (PHB) FY 15-16 budget to Housing Access and Stabilization programs benefitting people experiencing homelessness.

8. Federal regulations do not require a local match for the CDBG and HOPWA grants.

9. HUD has notified the City of Portland that, with its partners in the Consolidated Plan Consortium, the HOME Consortium and the HOPWA EMSA, it is entitled to funding for FY15-16 in the following amounts:

10. The City of Portland, as the lead jurisdiction in the Consolidated Plan Consortium, has complied with public notice and hearing requirements set forth in the Consolidated Plan regulations and the Consortium’s duly adopted Citizen Participation Plan (included in the Consolidated Plan as Appendix A), as amended.

11. Council has been fully apprised of the provisions of, and has reviewed the FY 2015-16 Action Plan submission “Section Four” of, the Consolidated Plan and the one-year budget included in it.

12. The annual Action Plan for FY 2015-16, and the applications and the certifications for the aforementioned plans are due to be submitted to HUD on or before May 15, 2015. While the City has made a request to have the deadline extended to July 15, 2015, the City plans to submit the plan on May 15th.

13. It is appropriate and in the public interest that the Mayor be authorized to apply for and receive these formula grant funds from HUD for the City of Portland and its inter-jurisdictional partners.

Section 2. The Council also finds that:

1. HUD requires each local government to submit a certification with its annual Action Plan that it is Affirmatively Furthering Fair Housing (AFFH) (24 CFR 91).

2. The City of Portland has complied with public notice and hearing requirements set forth in the Consolidated Plan regulations, the Consortium’s duly adopted Citizen Participation Plan. Signed certifications that the City of Portland, City of Gresham, and Multnomah County are Affirmatively Furthering Fair Housing and other certifications are included in the annual one year Action Plan 2015-16.

POLICY 

NOW, THEREFORE, the Council directs:

a. That the City adopt the Portland Action Plan FY 2015-16 as outlined in a form substantially in conformance with the document attached as Exhibit A;

b. The Mayor is authorized to apply to the U.S. Department of Housing and Urban Development for the formula grants in the amounts specified Section 1.10 and on behalf of the City of Portland and all other participating jurisdictions.

c. The Mayor is authorized to provide such assurances and information to the Department of Housing and Urban Development as may be required for application and orderly management of the grants.

d. This ordinance is binding City policy.

Link to Exhibit A (PDF Document, 8 MB)

HISTORY

Ordinance No. 187140, passed by City Council May 27, 2015 and effective June 26, 2015.