Loading...
Six Month Report on Housing Committee Activities CITY OF DUBUQUE, IOWA MEMORANDUM September 11, 2000 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Six-Month Report on Housing Committee Activities Housing Services Manager David Harris is transmitting the Annual Performance Report of the Housing Services Department. ~l~L Michael C. Van Milligen MCVM/dd Attachment cc: Barry Lindahl, Corporation Counsel Tim Moerman, Assistant City Manager David Harris, Housing Services Manager .,_.\(\ "-<\\,,,,'> r\ lr"\""\'l'.\ ".'\ i'\~J t\ \:::n ,I ,',. '''\j \ (~':' 9':S\\() ,-, '.~~ \)\J \\\ c. ,1\ \\~ \ S . /0-;";'(:\ cS~i\\j-.J ~ SEPTEMBER 2000 ANNUAL PERFORMANCE REPORT OF THE HOUSING SERVICES DEPARTMENT DETAILING THE EXPENDITURE OF STATE AND FEDERAL FUNDS IN ADMINISTRATION OF HOUSING PROGRAMS PROMOTING A BETTER QUALITY OF LIFE FOR DUBUQUE'S LOW- AND MODERATE-INCOME CITIZENS (SUBMITIED AS PART OF THE COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT'S ANNUAL CONSOLIDATED PERFORMANCE AND EVALUATION REPORT TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT) Affordable Housing The City's Housing Services Department provides funding assistance and services in five primary activities: 1) rental assistance programs; 2) housing rehabilitation-loan programs (both for homeowners and rental units); 3) home purchase assistance programs; 4) housing code enforcement; and 5) lead paint hazard reduction in both homeowner and rental units. SECTION 8 RENTAL ASSISTANCE The primary means of directly providing affordable rental housing is available through HUD's Section 8 Program, which offers rental assistance to lower-income families. The City provides approximately $2.8 million annually, with funds received from HUD, directly to area landlords, to subsidize rents for 993 tenant households. This program has been operational in Dubuque since 1976 and operates at capacity. However, because of budget-tightening decisions made by Congress in recent years, new Section 8 funds have become increasingly scarce. Since FY93 HUD offered no opportunity for application for incremental Section 8 housing vouchers or certificates. Family Unification Program certificates were made available in FY97, in national competition, for which the City of Dubuque's application was denied; and Mainstream Program housing vouchers, for disabled households, were offered during FY98. An award of 40 Mainstream vouchers was made to the City in 1999. However, incremental housing vouchers were funded by Congress in FYOO. The Housing Department made application for 40 new vouchers, as well as 20 additional Mainstream Program units, during the fiscal year. These applications are pending. HOME PURCHASE ASSISTANCE The Housing Department has shifted efforts in recent years to place more emphasis on assistance to first-time homebuyers. In FYOO, 29 homes were financed with CDBG funds, for first-time purchasers, and totaled $145,000 in City investment. To meet the increasing need for homebuyer assistance, the Housing Department has sought assistance from other funding sources. The Iowa Department of Economic Development's Local Housing Assistance Program awarded $150,000, for a moderate income First-Time Homebuyer Loan Program, to the City, in 1998. This Program design includes assistance to homebuyers earning 80-100% of area median income who purchase housing located in certain downtown census tracts. This Program became operational in FY99, and has closed 12 loans totaling $101,685 to date. Area lenders and buyer funds totaled $1,122,204. Program boundaries were expanded during FY99, to increase participation. The Housing Department was also awarded a homebuyer assistance grant, in the amount of $350,000, from the Des Moines Federal Home Loan Bank's Affordable Housing Program in FY99, in partnership with six area lenders. 38 loans totaling $350,000 in grant funds, matched by $1,909,897 in private lending and $238,123 in owner funds, were approved within six months of the 1999 award. Due to the success of this program, another applicati~n was submitted during FYOO, and funded in the amount of $230 000. Operations will commence in early FYOl. The new grant will provide purchase and rehabilitation assistance to families earning no more than 50% of area median income. Total private investment match for all homebuyer programs - from the buyer families, Federal Home Loan Bank, state funds, and area lenders - equaled $4,769,021 during the:fiscal year. REHABILITATION We continued administration of a number of housing rehabilitation-loan programs, for both owner- occupied housing and rental units. 43 apartments and 36 SRO rooming units were completed or in the process of rehabilitation, using $485,420 in City funds, matched by $1,012,588 in owner/lender financing. These loans include the following programs: Lead Paint Abatement, Moderate Income Rental Rehab, Emergency Repair, Accessibility Rehab Program, Single Room Occupancy Rehab and Rental Rehab (HOME). The City investment sources were Block Grant funds, the Iowa Department of Economic Development's HOME Program and BUD Special Purpose Grant funds. The Housing Departments $220,000 HOME Program grant, received in FY99, continued rental unit rehabilitation activities for landlords renting to low- and moderate-income tenants. 11 loans totaling $107,809 in City funds and matched by $269,061 in private lending, were closed during the:fiscal year, for 28 units and 240 SRO units. The $3.69 million lillD program for Lead Paint Hazard Reduction activities completed its third year of operations. 340 units have been inspected under the program. Grants to date have been made to owners of 231 rental units and 14 homeowner properties. Program expenses for lead paint removal and associated activities totaled $567,207 for the:fiscal year. The contract with BUD was approved for renewal for the fourth program year. CDBG-funded rehabilitation assistance was provided to 61 low-moderate income homeowners, using a combination of City programs. These included The Homeowner Rehab Program, providing long- term, low-interest loans; Sanitary Sewer Program, a program designed for repair and connection to City sewer; Operation Paintbrush, providing small grants for paint for exterior improvements; and Operation Up-Keep, a program used only in downtown census tracts for homes identified as badly in need of exterior repairs. Up-Keep makes $2,000 grants available to the lowest-income homeowners. Lead paint hazard reduction grants and loans were also made, in the sixth year of operation of Dubuque's Childhood Lead Paint Poisoning Prevention Program. In all, the City invested $597,785 in 91 homeowner improvement projects in FY2000. ADDITIONAL PROGRAM ACTIVITIES The Housing Department continued to work in partnership with area non-profit agencies, including contracting with Alternative Services and Four Oaks in administration of the Family Self-Sufficiency Program in support of 45 participating Section 8 Program families. As a result of a BUD Family Self Sufficiency Program Coordinator grant award received in the amount of $30,642, the FSS Program was continued for a seventh year. The Housing Trust Fund Committee made $100,000 in grants to three non-profit agencies: Maria House, for transitional housing; Dubuque Food Pantry, for two rental units; and the YWCA Domestic Violence Shelter, for general remodeling. The Crime Free-Multi Housing Program, jointly sponsored by the Housing, Police, Legal and Human Rights Departments, was again offered to landlords in FYOO. Another Local Housing Assistance Program (LHAP) application was awarded to the Housing Department, by the Iowa Department of Economic Development (IDED). This grant, for $400,000, was in turn awarded by the Housing Trust Fund Committee to two high-priority projects. The first was for the conversion of the former St. Mary's convent into a transitional housing facility for women and children, for 18 occupants. This facility, named Maria House and operated by Opening Doors Inc., was expected to become operational in September, 2000. The construction cost, of$600,000, was subsidized with the Housing Department's LHAP award and additional City grants totaling $54,698 from the CDBG and Lead Paint programs. Another significant funding source was the Des Moines Federal Home Loan Bank's Affordable Housing Program, which awarded $291,5000 to the project. With the remaining $200,000 in LHAP funds, the Trust Fund Committee awarded a grant to a private developer of single room occupancy housing, at a site on Garfield Avenue, for 18 SRO units. At fiscal year end, this project was pending, awaiting designation as an urban revitalization district by the City Council. Another LHAP grant application was submitted to IDED, in the amount of$150,000. $100,000 was requested to continue lending under the moderate income First Time Homebuyer Program. The balance of$50,000 was proposed to assist in slum building clearance and construction offive affordable condominium homes at a site on West Eighth Street. This application remained pending at fiscal year end. Renovation of the Iowa Inn remains pending. A third application for Housing Tax Credits, to the Iowa Finance Authority, was denied. As a result, the Housing Department facilitated transfer of ownership of the property to a Minnesota developer - Metro Plains - for preparation of a revised application. This was submitted in August. The City's $700,000 commitment remains in place for this $3.5 million project. The Housing Services Department re-submitted a HOME Program consortium application to HUD (the FY99 application was denied.) Ifapproved, the City, working under an inter-governmental agreement with Dubuque County and twelve other small cities located throughout the County, will be designated as a HOME Program entitlement jurisdiction. This will result in receipt of$400-700,000 in HOME funds annually, to be used for rehabilitation, home purchase assistance and other housing improvement programs. The City of Dubuque will serve as lead entity for the consortium oflocal governments. The Housing Department's original customer services survey project, initiated in late-1998, culminated in a "Housing Action Conference," held in February, to develop a consensus strategy for delivery of housing and supportive services as part of development of the Year 2000-2005 HUD Consolidated Plan. This ambitious two-year citizen participation project was recognized by the National Association of Housing and Redevelopment Officials (NAHRO) with an award of merit. As well, this effort was recommended by the regional HUD office for a national Best Practices Award and was one of 12 Iowa projects nominated. CITY OF DUBUQUE ANNUAL PERFORMANCE REPORT FY2000 HOUSEHOLDS AND PERSONS ASSISTED WITH HOUSING PERCENTAGES 0-30% 31-50% 51-80% 81-100% TOTAL area median area median area median area median income income income income RENTERS 43 43 OWNERS 0 19 88 14 121 EMERGENCY CODE REPAIR WANS 10 SINGLE ROOM 36 OCCUPANCY FACn.ITIES TOTAL 210 CITY OF DUBUQUE HOUSING SERVICES DEPARTMENT Annual Action Plan Annual Performance Report: Reporting Period 1 July 99 - 30 June 00 Prioritv/ Needs / Actions Results 1. Improve Affordability of Rental Housing Apply for additional Section 8 funds, as available Application was made to HUD for Section 8 "Mainstream Program" funds in the amount of $400,000, to fund 20 vouchers for one bedroom disabled households; and for 40 housing vouchers, in the amount of$950,000. Applications pending at fiscal year-end. Utilize existing vacant or under-utilized buildings to create affordable housing FYOO - $5.500 CDBG expended for maintenance ofIowa Inn. 2. Improve Affordability of Housing for Low Income Homeowners and First-Time Home Buyers Continue Homeowner Rehab Loan Programs, completing 51 homes 61 51 $395.937 $403.452 Loans approved Homes completed CDBG committed CDBG expended Continue DREAMS Program, purchasing derelict housing, performing necessary repairs to stabilize further deterioration and marketing to lower- income families. 1 Home sold Continue/expand First-Time Homebuyer Program, assisting 29 first-time buyers 29 Purchase Loans approved $ 145.000 CDBG committed $ 145.000 CDBG expended $1.498.797 Lender/Owner match 3. Assist Non-Profit Organizations to Provide Permanently Affordable Renter and Owner- Occupied Housing. Utilize Housing Trust Fund for development of non-profit owned units; focus non-profit activity on specific housing development not being met by local government Provide administrative/technical assistance to non- profit housing providers. An award was received from the Des Moines Federal Home Loan Bank's Affordable Housing Program for $230,000 to assist qualifying 1 st time buyer families. This application was made in conjunction with 8 local lenders and sponsored by American Trust. Awarded in July 00. Performance results of the previous year ($350,000) FHLB Homebuyer Program. 9 Loans approved $ 50.000 AHP committed $ 160.000 AHP expended $3.086.994 Lender/Owner match Additional loans for home purchase assistance were made from the Iowa Department of Economic Development's 1998 Local Housing Assistance Program (LHAP) award of$150,000 to the City of Dubuque. 14 14 $ 120.100 $ 689.655 Loans approved LHAP committed LHAP expended Lender/Owner match Award was received from IDED for additional Local Housing Assistance Program (LHAP) funds in the amount of $400,000, to assist Single Room Occupancy (SRO) and Transitional Housing projects. Trust Fund Awards were made in the amount of $100,120 to three local non-profit agencies, for transitional housing, affordable rental units and renovation ofthe Domestic Violence Shelter. Total projects cost: $743.527. Housing Department staff serve on boards and committees of Gateways to Home, Heartland Housing Initiative and Habitat for Humanity; and help staff the Dubuque County Stakeholders Housing Sub-Committee. 4. Develop Increased Public Awareness of Housing Problems in the Community; Develop Possible Solutions A fourth year "Crime-Free Multi Housing Program." workshop was organized and presented by the Housing and Police Departments, for area landlords, utilizing CDBG and Law Enforcement Block Grant funds. A fourth annual City-wide Rental Unit survey was completed, under contract with the Loras College Center for Business and Social Research. $5.500 CDBG expended 5. Concentrate Housing Rehabilitation Efforts, for Renter- and Owner-Occupied Housing, in DowntownlNorth End Census Tracts Continue/expand use of the following rehab assistance programs using HOME Rental Rehab Program, completing 8 units. 8 $ 191.975 $ 105.603 $ 269.061 Units completed HOME committed to 30 projects HOME expended Owner/Lender match Emergency Code Enforcement Loan Program. 10 Units assisted assisting 10 units and 13 rooming units. $ 113.837 CDBG committed $ 59.191 CDBG expended Operation Paintbrush Program, completing 9 9 Homes painted homes $ 1.512 CDBG expended Operation Up-Keep Program, providing 10 Homes approved $2,000 grants to lower-income homeowners in 10 Homes completed target census tracts, for exterior home $ 19.852 CDBG committed repairs, completing 10 homes. $ 18.473 CDBG expended Sanitary Sewer Installation! 7 Loans approved Replacement Program. for homeowners 7 Homes completed $ 24.348 CDBG committed $ 24.348 CDBG expended Accessibility Program, providing assistance to 3 Units approved landlords installing unit improvements for disabled 2 Units completed tenants, completing 2 units. $ 14.739 CDBG committed $ 9.119 CDBG expended Moderate Income Rental Rehab Program, providing loans to owners renting to tenants with moderate (up to 80% of area median) income, completing 3 units. Concentrate Housing Code Enforcement in downtown census tracts, completing 524 inspections and managing 30 "problem properties" Lead-Based Paint Hazard Reduction Program, completing 16 units, as part of housing rehabilitation program activities. Childhood Lead Paint Poisoning Prevention Program, reducing lead hazards for both low-moderate income tenants and homeowners. Included in activities under this program was a series of 40-hour trainings for certification for lead contractors and workers. 6. Prevent the Increase of Homelessness for At-Risk Individuals and Families Continue and expand the Family Self-Sufficiency Program. 6 3 $ 64.749 $ 47.845 $ 28.000 524 871 1.265 1342 30 13 16 6 $140.000 $107.810 55 91 $464.746 $ 21.563 94 Loans approved Units completed CDBG committed CDBG expended Lender/Owner match Inspections Re-inspections Violation notices issued Violations corrected Vacant houses monitored Loans approved Units completed SRO'S completed CDBG committed CDBG expended Residential units inspected Residential units completed HUD grant funds expended Iowa Dept. of Public Health funds expended. Contractors, workers and homeowners trained and re-certified A second 3 year HUD Lead Hazard Reduction Grant was applied for, in Round 8 competition, in the amount of$2,719,719. A HUD "Healthy Homes Initiative" Grant was applied for, in partnership with the Health Services Deptartment and the Visiting Nurses Association, in the amount of $1,146,490. An award was received from HUD, of $30,642 under the Family Self-Sufficiency Coordinator Program. Using these funds, the Housing Department continued a contract with Alternative Services, Inc., to provide case management services, expanding the number of participating families from 33 to 45. $15,000 in City CDBG funds is used to provide additional subsidy of program expenses. Continuum of Care In FYOO, for the first time a Dubuque Consortium made application to HUD for ''Continuum of Care" funds. The Housing Department organized a series of strategic planning sessions with a number of local non-profit agencies, working in partnership with the City Community Development Department and the County Department of Human Services (DHS). A "Gaps Analysis" was conducted: Consensus was met regarding the need for a "one-stop" intake and referral point of entry for homeless individuals and farniles; and for staffing assistance for Maria House, the new transitional housing facility. Project Concern Inc. and Opening Doors, respectively, prepared individual applications for these programs, in the combined amount of $305,000. The Housing Department submitted the application package to IDED in May, who in turn ranked it according to all other applications received, state-wide. The proposal for staffing Maria House was included in the State's recommendations for HUD funding and was forwarded to Washington. This application remained pending at fiscal year-end. Other Actions 1. Public Policies Barriers to affordable housing exist in Dubuque. These barriers have been identified by various reports and studies performed by or on behalf of the City of Dubuque. One such study was the 1991 report ofthe Affordable Housing Task Force which identified some of the barriers as follows: . Increasing opposition by property owners to proposals for development of affordable housing in their neighborhoods. . The necessity of subsidy in order to make projects feasible, as affordable rents cannot pay the costs of new developments. . Decreasing availability of federal housing assistance. . Increasing prevalence of service sector jobs, resulting in reduced real income growth. Nationally, young households (aged 18-34) had lower real income in 1989 than in 1974. (State of Nation's Housing. 1991 ). In Dubuque, adjusted per-employee earnings actually decreased 11 % during the 1980-1990 period. . Opposition by the City to directly providing publicly owned housing. . A strong real estate economy, pushing up home prices and making upper-end housing construction a demand market. . The age of Dubuque's housing (45% built pre-1940) resulting in increased maintenance and operating costs. 2. Actions The DREAMS (Dubuque Reaches Out with Efficient, Affordable Means of Shelter) Program continued. Under this program, the City purchases abandoned houses and makes them available to lower-income, first-time buyer families who participate in a homeownership skills training program. The City subsidizes the program through write-offs of acquisition costs, as necessary. However, only one home sold and none were purchased during this year. 3. Institutional Strudures The Housing Department works cooperatively with a number of other agencies participating in the housing delivery system in Dubuque. The Department is represented on a sub-committee of Heartland Housing Initiative, on Alternative Services' Family Self-Sufficiency Task Force and on the area Homeless Coordinating Board. The Department Manager serves on the City's Section 504/ ADA Advisory Committee, which oversees compliance activities relative to accessibility of City facilities and programs. Two staffserve on board of he State-wide Iowa Association of Housing Officials (IARO) organization. 4. Intergovernmental Cooperation The City works cooperatively with other governmental entities participating in the housing delivery system. As a member of the Family Self-Sufficiency Task Force, the Housing Department participates with the Eastern Iowa Regional Housing Authority (EIRHA) in administration of Section 8 programming. Alternative Services, Inc. has contracted with the City for case management services in connection with the Family Self-Sufficiency program. Forty-five families are currently being served. And, as part ofthe delivery system for Family Self-Sufficiency, the Housing Department coordinates activities with the Workforce Development Center Office, under the State ofIowa's Family Investment Program (FIP). The City's Housing Department enjoys positive working relationships with a number of State-wide housing providers, including: the HUD Area Office in Des Moines; the Iowa Finance Authority; the State Department of Economic Development (DED), which administers the HOME Investment Partnership Program; the Des Moines Federal Home Loan Bank, which administers the Affordable Housing Program for the district; and the Iowa Coalition for Housing and Homeless. 5. Lead-Based Paint Hazard Redudion The Housing Department and the Health Services Division worked closely with the Iowa Department of Public Health (DPH) in the sixth year of Dubuque's Childhood Lead Paint Poisoning Prevention Program, monitoring the incidence oflead paint in dwellings occupied by children identified with elevated blood levels (EBL's). All rental units with young children are tested and lead paint removal is required as a condition of participation in the City's rehab loan programs. In addition, a $3.69 million HUD Round 4 Hazard Reduction Program Grant was awarded to the City in FY97; activities continued under this program during FYOO. A fourth program year extension was approved by HOD. 6. Affirmatively Furthering Fair Housing The City conducted a fair housing impediments analysis in 1993 and incorporated its findings in the five year CRAS. In addition, the City independently investigates discrimination complaints, having been designated by HOD as a substantially equivalent human rights agency. A Fair Housing Analysis was conducted for the City, under contract with the John Marshall Law School Legal Support Center, and published in February, 1996. See Section lb. for additional information. A request for proposals to conduct an up-dated study was released by the City Human Rights Department in August. Assessment The assessment of the City's reporting period efforts to assist in affordable housing development is as follows: The most recent application for housing vouchers - for 40 one-bedroom units for disabled households - was awarded in 1999. Two additional voucher applications are now pending for 60 units. Since 1993, the goal of providing additional rental assistance for low-income households, however, has not otherwise been achieved. The City's difficulty in obtaining new Section 8 rental assistance, according to HUD, has to do with the relative needs of other applicant jurisdictions within the district (Iowa and Nebraska). HUD's position has been that Dubuque's need - according to Census data - has been met relative to the needs of other cities competing for these limited funds. In addition, budget reductions and rescissions have further reduced availability of incremental Section 8 tenant- based assistance. The First-Time Homebuyer Program - providing $5,000 downpayment loans - was continued. This effort was successfully supplemented by another award from the Federal Home Loan Bank for low-income homebuyer grants in the amount of $230,000. Total FHLB assistance received during the past two years was $580,000, reflecting the Bank's support ofthe Housing Department's partnership with area lenders. Key to the City's strategy in provision of assistance to homeless individuals and families is the developing of relationships with neighborhood-based and/or non-profit agencies, to form partnerships for delivery of services. The Housing Department's goal remains the establishing of additional facilities serving the homeless, whether they be single room occupancy, transitional housing or other special needs - type housing. The City's role is to provide technical assistance, grant preparation and sponsorship and some funding match for capital costs. This strategy proved successful in FY2000, as Opening Doors was established to own and operate the Maria House. As well, the first consortium application for HUD Continuum of Care funds was facilitated by the City. The City's policy, as currently defined, is not to own or operate housing, nor to provide on-going operational subsidies (other than rental assistance). This places the responsibility for carrying out these functions on the private and/or non-profit sectors. The City will continue to develop these partnerships and solicit interest in ventures to meet homeless/special needs housing objectives. The following table identifies this past year's housing activity leverage from various sources. City: Total Expenditures - FYOO IDED Local Housing Assistance "LHAP" Federal Home Loan Bank "PATH" CDBG lIDD Special Purpose Grant HOME Iowa Dept. Of Public Health Section 8 Rental Assistance lIDD Lead Hazard Reduction Program FSS Coordinator Total City Investment: PrivateILender Match: Total Housing Investment $ 101,685 $ 160,000 $1,260,915 $ 0 $ 66,000 $ 21,563 $2,799,624 $ 507,207 $ 24,799 $ 5,001,793 $ 6,316,034 $11,317,827 Housine Department Proeram Fundin& Sources Section 8 Housing Vouchers Section 8 Mainstream Program Federal Home Loan Bank Affordable Housing Program FY99 IDED Local Housing Assistance Program FYOO IDED Local Housing Assistance Program FYOO Family Self-Sufficiency Coordinator Round 8 lIDD Lead Paint Hazard Reduction Program BUD Healthy Homes Initiative Iowa Dept. of Public Heahh CLPPP Grant lIDD Continuum of Care HOME Entitlement Designation A~plications $ 950,000 $ 400,000 $ 230,000 $ 500,000 $ 150,000 $ 30,642 $2,719,719 $1,146,490 $ 21,563 $ 305,057 Received Pending Pending $230,000 $400,000 Pending $ 30,642 Pending Pending $ 21,563 Pending Pending