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HomeMy WebLinkAboutres2000-045WHATCOM COUNTY COUNCIL AGENDA BILL NO. 2000 -362 CLEARANCES 1nRial Date R inC — A ends Date Assi nuln: siginator. KG 10/9 \ire S TIT OCT 1 0 2000 1��u I1y n° 15 ^''r yT, A CO�ys GOUN I V COUNCIL, „ 10 /10 /00 Introduction Division Head: 10124100 Hearing Dept Head: Prosecutor PurcRasing/BUdgea EgeenRve: ),C�y w / / /,/ SUBJECT: Public hearing for possible Community Development Block Grant (CDBG) application. ATTACHMENTS: Grant Possibility Concept FactSheet SEPA review required? ( ) Yes (1g NO SEPA review completed? ( ) Yes (X) NO Should Clerk schedule a hearing? (X) Yes ( ) NO Requested Date: 10114100 SUMMARYSTATEMENT Required public hearing to explore possibility of applying for Community Development Block Grant (CDBG) funds to provide affordable homeownership using the community land trust approach. RECOMMENDED ACTION: A nova[ or ursuit o CDBG PP f f P grant. Distribution Request Indicate those who should recene a copy after Council action. List specific names to the right. ADS Fadlides Management ADS Finance ADSHumau Resources ADS Info Services Assessor Auditor Cooperative Extension District Court Ereatdve Kathleen Greenbaum Hewk Nearing Fxamener jail COUNCIL ACTION TAKEN: 2000 -362 10/10/2000: Introduced 10/ 242000: Council voted to support the grant application 7- Related County Contract #: JYVenile Parks reasoning Prosecutor Public Works Sheriff Superior Conn Treasurer Other Related File Numbers: Ordinance or Resolu ' (this item): n Number • Community Development Block Grant SPONSORED BY: County executive 10/24/2000 - PROPOSED BY: County Executive INTRODUCTION DATE: RESOLUTION N0. 2000 -045 APPLICATION FOR A COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) WHEREAS, Whatcom County is applying to the State Office of Community Development for funding assistance; and WHEREAS, it is necessary that certain conditions be met as part of the application requirements; and WHEREAS, County Executive Pete Kremen is authorized to submit this application to the State of Washington on behalf of Whatcom County; NOW, THEREFORE, BE IT RESOLVED that the Whatcom County Council authorizes submission of this application to the state Office of Community Development to request $750,000 to provide affordable homeownership using the community land trust approach, and certifies that if funded, it: Will comply with applicable provisions of Title I of the Housing and Community Development Act of 1974, as amended, and other applicable state and federal laws; and Has provided opportunities for citizen participation comparable to the state's requirements (those described in Section 104(a)(2)(3) of the Housing and Community Development Act of 1974, as amended); has complied with all public hearing requirements and provided citizens, especially low- and moderate - income persons, with reasonable Page 1 Will provide, upon request, and prior to any obligation of funds being made, a complete and accurate CDBG Federal Funds Disclosure Report detailing the required applicant / grantee information, and as appropriate other government assistance provided or applied for, interested parties and expected sources, and uses of funds. Whatcom County designates Pete Kremer, County Executive, as the authorized Chief Administrative Official and authorized representative to act in all official matters in connection with this application and Whatcom County's participation in the Washington State CDBG Program. APPROVEDthis 24thdayof October 2000. ATTEST: CROWN " =41 > APPROVED AS TO FORM: WHATCOM COUNTY COUNCIL WHATCOM COUNTY, WASHINGTON Marlene Dawson, Council Chair advance notice of, and the opportunity to present their views during the assessment of community development and housing needs, during the review of available funding and eligible activities, and on the proposed activities; and Has provided technical assistance to citizens and groups representative of low and moderate income persons that request assistance in developing proposals; and Will provide opportunities for citizens to review and comment on proposed changes in the funded project and program performance; and Will not use assessments against properties owned and occupied by low and moderate income persons or charge user fees to recover the capital costs of CDBG- funded public improvements from low and moderate income owner - occupants; and Will establish a plan to minimize displacement as a result of activities assisted with CDBG funds; and assist persons actually displaced as a result of such activities, as provided in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended; and Will conduct and administer its program in conformance with Title VI of the Civil Rights Act of 1964 and the Fair Housing Act, and will affirmatively further fair housing, (Title VIII of the Civil Rights Act of 1968); and Has adopted and enforce a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and has adopted and implement 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 nonviolent civil rights demonstration within its jurisdiction, in accordance with Section 104(1) of the Title I of the Housing and Community development Act of 1974, as amended; and Page 2 PUBLIC HEARING HANDOUT Community Development Block Grant (CDBG) Program . - -.... Introduction: The Washington State Small Cities CDBG Program is designed to fund local housing, public and community facilities, economic development, and planning projects which principally benefit low- and moderate - income households. All local projects must meet at least one of three national objectives of this federal- funded program (Title 1, Housing and Community Development Act of 1974, as amended), which are to: • Principally benefit persons of low- income • Prevent or eliminate slums or blight; or • Meet urgent community development needs which pose a serious and immediate threat to public health or safety. Eligible applicants for the Washington State Small Cities CDBG Program are cities and towns with less than 50,000 in populations or counties with less than 200,000 in populations provided the cities, towns, and counties do not participate as members of HUD Urban County Consortiums. Indian tribes and special purpose organizations such as public housing authorities, port districts, community action agencies, and economic development councils, are not eligible to apply directly to the CDBG Program for funding. However, eligible jurisdictions may choose to involve Indian tribes within their jurisdiction or to involve other organizations in activities funded by a grant. Available General Purpose Grants $8,000,000 Grants: The General Purpose Program is one of several CDBG programs that award funds to eligible jurisdictions. It is operated on an annual grant cycle during which eligible applicants may request up to $750,000 for local housing, public facilities, community facilities, or economic development projects principally benefiting low- and moderate - income persons. Important Dates: Application Workshops: September 6 and 7, 2000 Applications Due Date: November 16, 2000 Awards Announced: February 2001 For more information about CDBG Programs, call (360) 725 -3020. PUBLIC HEARING HANDOUT Federal Citizen Participation Requirements for Local Government Applicants to the State CDBG Program Federal Regulations 24 CFR 570.486 (a) (a) Citizen participation requirements of a unit of general local government. Each unit of general local government shall meet the following requirements as required by the state at Sec. 91.115(e) of this title. (1) Provide for and encourage citizen participation, particularly by low and moderate income persons who reside in slum or blighted areas and areas in which CDBG funds are proposed to be used; (2) Ensure that citizens will be given reasonable and timely access to local meetings, information, and records relating to the unit of local government's proposed and actual use of CDBG funds; (3) Furnish citizens information, including but not limited to: (i) The amount of CDBG funds expected to be made available for the current fiscal year (including the grant and anticipated program income); (ii) The range of activities that may be undertaken with the CDBG funds; (iii) The estimated amount of the CDBG funds proposed to be used for activities that will meet the national objective of benefit to low and moderate income persons; and (iv) The proposed CDBG activities likely to result in displacement and the unit of general local government's anti - displacement and relocation plans required under Sec. 570.488. (4) Provide technical assistance to groups representative of persons of low and moderate income that request assistance in developing proposals in accordance with the procedures developed by the state. Such assistance need not include providing funds to such groups; (5) Provide for a minimum of two public hearings, each at a different stage of the program, for the purpose of obtaining citizens' views and responding to proposals and questions. Together the hearings must cover community development and housing needs, development of proposed activities and a review of program performance. The public hearings to cover community development and housing needs must be held before submission of an application to the state. There must be reasonable notice of the hearings and they must be hold at times and locations convenient to potential or actual beneficiaries, with accommodations for the handicapped. Public hearings shall be conducted in a manner to meet the needs of non - English speaking residents where a significant number of non - English speaking residents can reasonable be expected to participate; - (6) Provide citizens with reasonable advance notice of, and opportunity to comment on, proposed activities in an application to the state and, for grants already made, activities which are proposed to be added, deleted or substantially changed from the unit of general local government's application to the state. Substantially changed means changes made in terms of purpose, scope, location or beneficiaries as defined by criteria established by the state. (7) Provide citizens the address, phone number, and Imes for submitting complaints and grievances, and provide timely written answers to written complaints and grievances, within 15 working days where practicable. October 9, 2000 Grant Concept FactSheet Affordable homeownership using the community land trust approach Grant program: Community Development Block Grant (CDBG) General Purpose Grant Program, a state -wide competition using federal CDBG funds Grantor. State of Washington Office of Community Development Maximum CDBG grant: Up to $750,000 per municipality per application round Grant restrictions: Projects must principally benefit low- to moderate - income and special needs Project Overview: populations and, as a result, benefit the entire community. Low- and moderate- income (LMI) is defined by US HUD as annual income at or below 80% of the area median income adjusted for family size. Eligible applicants: Counties and cities that do not receive an annual CDBG allocation from HUD. Nonprofits may propose projects but must apply through an eligible applicant. CDBG projects with .Many jurisdictions secure CDBGs and pass the grant funds through to project nonprofit sponsors: sponsors, called subrecipients in CDBG parlance. Whatcom County's With Whatoom Self Help Homes as subrecipient, $500,000 for affordable recent CDBG projects: housing land acquisition for buildable lots near Femdale. CDBG was recaptured to create a revolving fund for future affordable housing projects. With the Opportunity Council and Housing Authority, $24,000 for affordable housing planning and feasibility analysis. Project quantified the scarcity of affordable housing. Identified three priority LMI needs: homeownership options, affordable rentals, and farts labor housing. CDBG application Applications must be submitted by November 17, 2000, if authorized by a process: County Council Resolution to be adopted after a Public Hearing. Grant awards will be announced in early 2001. Proposed project: Kulshan Community Land Trust Scattered -site Homebuyer -driven Program Project sponsor. Kulshan Community Land Trust, a local nonprofit created to use the community land trust approach to affordable housing and homeownership Project Overview: Kulshan Community Land Trust has announced its first affordable homeownership project for LMI homebuyers. KCLT will assist eligible households with the costs of purchasing existing homes in Whatoom County by closing the gap between the cost of a starter home, and the price that household can afford in a mortgage plus downpayment. KCLT will work with area lenders so that homebuyers may use conventional mortgages and downpayment assistance programs to keep housing costs at 30% of household income. At closing, the homeowner gains title to the improvements and enters into a 99 -year landlease, using the Fannie Mae Uniform Community Land Trust Ground Lease Rider or a similar instrument. A resale formula in the landlease assures the homebuyer that upon resale, s /he will recapture downpayment and a fair share of equity while keeping the resale price affordable for the next LMI buyer without additional subsidy. Page 1 of 2 Page 2 of 2 Grant Concept FactSheet Affordable homeownership using the community land trust approach (continued) Project Overview: The State of Vermont pioneered this innovative scattered site approach to (continued) homeownership, now being replicated in many locations around the US with the encouragement and support of major banking institutions, US HUD and Fannie Mae. This approach to affordable homeownership creates perpetually affordable homes in spite of escalating real estate market prices. Proposed Use of Home purchase gap funding, expected to range from $20,000 per home to CDBG funds: $40,000 typically, for LMI households purchasing a home More about As a recently incorporated, local nonprofit using the community land trust Kulshan Community approach to create affordable housing, Kulshan CLT looks forward to Land Trust: collaborating with the County, the housing industry and other local organizations to address the need for affordable homeownership. Whatcom's mix of affordable housing programs will be enhanced by adding the CLT approach to the good work already being done by the Housing Authorities, Whatcom Self Help Homes, Habitat for Humanity, the Opportunity Council and others. Like other community land trusts, Kulshan CLT is a nonprofit corporation created to acquire and hold land for the benefit of the community and to provide secure, affordable access to land and housing for community residents. Today, over 100 CLTs across the US work to meet the needs of residents least served by the prevailing market. CLTs avoid speculation and absentee ownership of land and housing, promote ecologically sound land - use practices, and preserve the long -term affordability of housing. Kulshan CLT recently launched its public educationfoutreach campaign to introduce the CLT concepts to the community. The campaign focuses on two primary audiences: potential homebuyers who may be otherwise priced out of the homeownership market and, just as importantly, lenders, Realtors and employers whose involvement can be a vital part of Kulshan CLTs success. Implications for In the short-term, applying for and securing a major CDBG grant award will Whatcom County: require coordination through the County Executive's Office to schedule a Public Hearing, prepare a Resolution, prepare the application and meet the submittal deadline. Much of the work of preparing the CDBG application can be shared with the Kulshan CLT as project sponsor. If successful, the County would enter into a CDBG Contract much like the recent Whatcom Self Help Homes project, with grant requirements dearly defined and the subrecipient, Kulshan CLT, responsible for documenting grant compliance and measurable results. Al the end of 18 months, the County would conduct a second Public Hearing to receive comment on the outcomes and overall use of the CDBG. Over the longer -term, Whatcom County would be accountable to the State of ' Washington for assuring that the CDBG funds will benefit LMI households for 10 years. In the proposed Kulshan CLT project, CDBG funds would be locked into the value of the land, and lease agreements will assure the long -term affordability of the homes. For more info: • Contact Paul Schissler, Kulshan CLT volunteer, (360) 671 -5600 Page 2 of 2