HOME Program ConsortiumCITY OF DUBUQUE, IOWA
MEMORANDUM
February 17, 2000
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT:
HOME Program Consortium
Housing Services Manager David Harris is recommending approval of submission of a letter
of intent to the U.S. Department of Housing and Urban Development signifying the City's
intent to form a consortium with Dubuque County, Jackson County and municipalities
within these counties, for purposes of receiving entitlement funding status under the HOME
Investment Partnership Program.
With the anticipated entitlement funds, the Housing Services Department will have
significantly greater resources with which to promote existing and new programs of
housing rehabilitation and homeowners hip assistance. We will have more flexibility in
directing funds to address local housing needs. Program planning will be enhanced as an
annual entitlement allocation will be "guaranteed". CDBG funds currently allocated by the
Council for some Housing Department programs will be made available for other community
development initiatives. And additional assistance can be made to local non-profit
organizations for promotion of housing revitalization activities.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/dd
Attachment
cc:
Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
CITY OF DUBUQUE, IOWA
MEMORANDUM
8 February 00
To: Mike Van Milligen, City Manager
From: David Harris, Housing Services Department
Re: HOME Program Consortium
Introduction
The purpose of this memorandum is to request the City Council's approval of submission of a
letter of intent to the HUD-Omaha field office, signifying the City of Dubuque's intent to form a
consortium with Dubuque County, Jackson County and municipalities within those counties,
for purposes of entitlement funding status under the HOME Investment Partnership Program.
Background
In June 99 the Housing Department submitted an application to the HUD-Omaha field office for
approval to form a HOME Program consortium, comprised of the City, Dubuque County and
twelve small cities within the County. The purpose of formation of this consortium was to
qualify as a "participating jurisdiction" under the HOME Program, in order to receive funds from
HUD annually, as an entitlement.
In December we were notified by HUD that our consortium had not qualified for funding, due to
an insufficient need for assistance. As HUD had allocated more than $1.5 billion to the HOME
Program for fiscal year 2000, the "threshold requirement" for new jurisdictions was set at
$750 000. The Dubuque consortium qualified for a formula amount of $385 000. (In years in
which the federal allocation is less than $1.5 billion, new jurisdictions must qualify only for a
formula amount of $500 000.)
Discussion
The "formula" used by HUD is essentially a weighted scoring of a number of distress
indicators. These include the following:
rental unit heads of household eaming less than federal poverty level income
rental unit vacancies
rental unit characteristics including overcrowding, inadequate plumbing and
excessive rents
pre-1950 rental units occupied by poor families
area cost of producing rental housing
number of families in the general population earning less than poverty level income
per capita income of the general population
This data is derived from the 1990 Census.
As it has been determined that a Dubuque and Dubuque County consortium does not qualify
for HOME entitlement assistance, a necessary strategy is to include other local governments
into the consortium which would increase the distress score and qualify for the minimum
formula allocation. Locally, the appropriate additional partner is Jackson County. Because of
that county's relatively low per capita income, it is assumed that inclusion into the consortium
would favorably weight a revised application.
ECIA has agreed to approach the Jackson County Board of Supervisors to introduce this
proposal. If the Board is receptive, Maquoketa and other small Jackson County cities will also
be invited to join.
HUD's deadline requires notification of intent to apply for consortium status by 1 March.
Subsequent submission of an approved consortium cooperation agreement must be made by
30 June, certified by each participating consortium member. The Council will be requested to
approve that agreement, pending a decision by potential Jackson County member
governments. If successful, we will be notified by HUD of funding award in early 2001.
Recommendation
It is recommended that the Council authorize the Housing Department to form a HOME
Program consortium with Dubuque County, Jackson County and other municipalities within
those counties. With the anticipated entitlement funds, the Housing Services Department will
have significantly greater resources with which to promote existing and new programs of
housing rehabilitation and homeownership assistance. We will have more flexibility in
directing funds to address local housing needs. Program planning will be enhanced as an
annual entitlement allocation will be "guaranteed." CDBG funds currently allocated by the
Council for some Housing Department programs will be made available for other community
development initiatives. And additional assistance can be made to local non-profit
organizations for promotion of housing revitalization activities.
Action Step
The action requested of the City Council is to approve submission of a letter of intent to the
HUD-Omaha field office, signifying the City of Dubuque's intent to form a consortium with
Dubuque County, Jackson County and other participating small cities within those counties for
purposes of entitlement funding status under the HOME Investment Partnership Program.
Attached is a copy of the June 99 Council memorandum, providing additional background
information on last year's consortium application.
cc:
Barry Lindahl, Corporation Counsel
att
CITY OF DUBUQUE, IOWA
MEMORANDUM
10 June 99
To: Mike Van Milligen, City Manager
From: David Harris, Housing Services Department
Re: HOME Program Consortium
Introduction
The purpose of this memorandum is to request the City Council's approval of the attached
resolution, authorizing a consortium agreement between the City of Dubuque, Dubuque County
and certain cities within the County, for purposes of entitlement eligibility for HOME Program
funds.
Discussion
The City of Dubuque annually receives Community Development Block Grant funds, from the US
Department of Housing and Urban Development, as an entitlement jurisdiction. Approximately
$1.4 million is awarded to Dubuque, based on a formula allocation of HUD resources.
The HOME Program was established in 1992 to complement the CDBG Program by providing
funds to municipalities to administer rehabilitation and home purchase activities for the benefit of
low- and moderate-income persons and families. Unlike the Block Grant Program, however,
fewer cities are "entitled" to these funds. In Iowa, Dubuque is the largest non-entitlement city; all
larger municipalities do receive HOME funds on an entitlement basis. Since 1992, the Housing
Services Department has made four successful applications for HOME awards, to the Iowa
Department of Economic Development, which administers the program in Iowa for HUD. To-
date, we have received approximately $1 million to support our rental rehabilitation programs.
However, the potential exists for eligibility for a significantly higher level of HOME Program
subsidy for our housing revitalization efforts. Although Dubuque does not qualify, according to
HUD indicators, for entitlement status, we have determined that formation of a "consortium" with
Dubuque County would likely satisfy HUD's requirements. This means that the consortium would
annually receive as much as $700 000, for Program-eligible activities.
We have filed a letter of intent with the HUD-Omaha field office in April. Subsequently, we have
been invited by HUD to submit qualification documents. These consist of the following:
1. written certification from all govemmental entities forming the consortium that the
consortium will direct its activities to the alleviation of housing problems within
Dubuque County; and
2. a consortium cooperation agreement executed by all members
Members of the consortium, as planned to-date, will consist of the City of Dubuque and Dubuque
County. In addition, through the efforts of the East Centrallntergovemmental Association
(ECIA), all incorporated cities within the County will be offered the opportunity to join the
consortium.
As planned, the City of Dubuque will act as the lead entity for all member units of local
government in the consortium. Under CPD Notice 99-05 issued in May 99, the lead entity must
assume overall responsibility for ensuring that the consortium's HOME Program is carried out in
compliance with HUD regulations at 24 CFR Parts 92 and 91, including the requirement to revise
our Consolidated Plan to reflect the operations of the consortium.
Typically, the HOME formula allocation to the consortium is allocated internally on a per-capita
basis to members. This means that the City of Dubuque would receive approximately two-thirds
of the annual entitlement, or from $335 000 to $470 000. Of this, ten percent may be used for
administrative costs; in addition, up to fifteen percent must be made available for award to
eligible local "community housing development organizations," or CHDO's. In Dubuque,
Gateways to Home is currently the only eligible CHDO entity.
Submission of qualification documents to the HUD-Omaha office must be made by 30 June.
HUD will d~signate the consortium by the end of the federal fiscal year; if successful, funding will
be made available to the consortium by early 2000.
In the Agreement as proposed, the City and Dubuque County will split the administrative
revenues according to the per-capita formula, with two-thirds allocated to the City. With these
fees, sufficient revenues will be available to fund a position in the Housing Services Department
to administer the annual HOME entitlement program. With expected access to the funds in early
2000, it is anticipated that a FYOO budget amendment request will be prepared at that time for
Council review and approval of the additional staffing.
With their one-third administrative share, it is expected that Dubuque County will utilize the
services of ECIA to administer the County-wide HOME entitlement program.
Recommendation
It is recommended that the Council authorize a HOME Program consortium agreement with
Dubuque County and other municipalities within the County executing the agreement. With the
anticipated entitlement funds, the Housing Services Department will have significantly greater
resources with which to promote existing and new programs of housing rehabilitation and
homeownership assistance. We will have more flexibility in directing funds to address local
housing needs. Program planning will be enhanced as an annual entitlement allocation will be
"guaranteed." CDBG funds currently allocated by the Council for some Housing Department
programs will be made available for other community development initiatives. And additional
assistance can be made to local non-profit organizations for promotion of housing revitalization
activities.
One caution, however, must be noted. According to the Department of Development (IDED), an
entitlement jurisdiction must provide a twenty-five percent (25%) match for any HOME Program
application submitted by any other development entity. This means that, should a private
developer submit an application to IDED for HOME funds - under the State's competitive grants
program - the Dubuque consortium would have the obligation to provide a 25% match to any
IDED HOME award to that developer. This obligation would apply even if all the consortium's
HOME entitlement funds were otherwise committed for that program year. The match, however,
may be provided by means other than the consortium's HOME entitlement funds.
Action Step
The action requested of the City Council is to authorize the Mayor's execution of the attached
resolution approving a HOME Program consortium cooperation agreement between the City of
Dubuque, Dubuque County and other municipalities within the County joining the consortium; and
to authorize the Mayor's execution of the attached HOME Investment Partnership Program
Consortium Cooperation Agreement.
cc:
Barry Lindahl, Corporation Counsel