NSP3 Application Instructions Draft 11/5/2010 Page i

Transcription

1 Neighborhood Stabilization Program 3 City of Kissimmee Draft Substantial Amendment to the PY Consolidated Plan and the PY Action Plan 11/5/2010 Page i

2 1. NSP3 Grantee Information NSP3 Program Administrator Contact Information Name (Last, First) Carbajal, Amy Address Phone Number ; fax Mailing Address 101 N. Church Street, Kissimmee, FL Areas of Greatest Need Map Submission The map generated at the HUD NSP3 Mapping Tool for Preparing Action Plan website is included as an attachment. Data Sources Used to Determine Areas of Greatest Need Describe the data sources used to determine the areas of greatest need. Response: NSP3 Mapping Tool Core Logic Auction, Foreclosure and Pre Foreclosure Data LISC Foreclosure Risk Score Determination of Areas of Greatest Need Describe how the areas of greatest need were established. Response: The first step taken was the NSP3 mapping tool. Once it was determined that the area met the minimum requirements. NSP3 Mapping tool data shows the following: Neighborhood NSP3 Score: State Minimum Threshold NSP3 Score: 17 Total Housing Units in Neighborhood: 1824 Area Benefit Eligibility Percent Persons Less than 120% AMI: Percent Persons Less than 80% AMI: That information was compared to data obtained from Core Logic. This data included the number and locations of Auctions, Pre foreclosures and Foreclosures. Core Logic s data mirrored the data obtained from the NSP3 mapping tool. Finally, staff reviewed data available from the LISC site. The LISC Foreclosure Risk Score for the 2 zip codes included in the target area were as follows: 11/5/2010 Page ii

3 34741 = = 50.5 Selection Although when reviewing the maps it appears that the northwest section of Kissimmee is experiencing a high number of foreclosures, many of those units are new condominium units and the stability of the property and overall property management is questionable. The City determined that it would be irresponsible to place income limited households in a situation with unstable communities and uncertain condo association dues. Therefore, the City of Kissimmee eliminated this area from the selection process. According to Core Logic, within the 3 City zip codes that cover most of the City Limits, there were 2749 Subprime Mortgages issued that will reset in the next 12 months. The NSP3 Target Area covers large portions of 2 of these zip codes. Those two zip codes include 1570 of those subprime mortgages. This represents more than half of the subprime mortgages in the City Limits. This area is also the oldest section of the City. The foreclosure crisis affected this area later than the newer neighborhoods that were addressed with NSP1 funds. As newer neighborhoods become very popular to purchase during the real estate boom, the escalating prices forced lower income families to search for homes in older more affordable neighborhoods. Foreclosure on these homes will affect the largest number of low and moderate income families forcing them to look for affordable rental communities. The Central Kissimmee area will also have the largest effect on the City when these mortgages foreclose as it is in the heart of the City. It surrounds all of the commercial corridors and will result in an overall blighted and deserted core for our community. 3. Definitions and Descriptions Definitions Term Blighted Structure Affordable Rents Definition A structure is blighted when it exhibits objectively determinable signs of deterioration. Examples of determinable signs include, but are not limited to peeling paint, rotting wood, failing roof structure, failing foundation, broken windows, and general lack of maintenance sufficient to constitute a threat to human health, safety, and public welfare. Rents that are subject to controls designed to ensure that payments are reasonable for very low income families. For the purpose of the NSP grant, affordable rents shall not exceed Fair Market Rents for household size for the Orlando MSA as published by the HUD Office of Policy Development and Research. Descriptions Term Definition 11/5/2010 Page iii

4 Long Term Affordability Homebuyer Activities: The City of Kissimmee will require that all single family residential properties sold to qualified buyers and subsidized with NSP funds execute a deed restriction and second mortgage at closing. The nonamortizing second mortgage and deed restriction affordability term will be applied according to the chart below. If the property changes ownership or ceases to be owner-occupied, the principal amount of the loan provided shall be due and payable. The second mortgage will be forgiven and the deed restriction lifted after the affordability term has expired. Rental Activities: For the redevelopment of property to rental housing for the very low income population, a non-amortizing second mortgage and deed restriction will be used to ensure long term affordability for each property. Rents will remain affordable, according to the Affordable Rents definition herein, for each property for a period of 15 years. Housing Rehabilitation Standards <$15,000 $15,000 - $40,000 >$40,000 5 years 10 years 15 years Replacement of obsolete products and appliances shall meet Energy Star labeled products. Water efficient toilets, showers, and faucets such as those with WaterSense label, must be installed. Improvements shall mitigate the impact of disasters. Minimum construction standards shall comply with the Florida Building Code, latest edition. Rehabilitation shall also include compliance with Lead based paint abatement. All gut rehabilitation of residential buildings up to three stories shall be designed to meet the standard for Energy Star Qualified Homes. All gut rehabilitation or new construction of mid or high rise multifamily housing will be designed to meet American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) Standard , Appendix G plus 20 percent. Vicinity Hiring Rental Housing Preferences The developer that is chosen through the RFQ process will be required to make every attempt to hire workers from within the target area. City staff will require the developer to meet with the local Workforce Florida office and advertise employment opportunities in local newspapers and on the city s government television network, Access Osceola. Per the activity description below, Staff will pursue the purchase of an eligible property to rehab for multifamily rental housing. The RFQ will be awarded through a selection criteria that follows review procedures with regard to the multi family property chosen. The project must meet the following criteria: Large enough to have an impact on the target area 11/5/2010 Page iv

5 Small enough to obtain funds and complete within the NSP3 timeframe Free from environmental hazards that would push redevelopment costs beyond the funding obtained and timeframe allowed Have access to public transportation 4. Low Income Targeting Low Income Set Aside Amount Enter the low income set aside percentage in the first field. The field for total funds set aside will populate based on the percentage entered in the first field and the total NSP3 grant. Identify the estimated amount of funds appropriated or otherwise made available under the NSP3 to be used to provide housing for individuals or families whose incomes do not exceed 50 percent of area median income. Response: Total low income set aside percentage (must be no less than 25 percent): 25.00% Total funds set aside for low income individuals = $260,575 Meeting Low Income Target Provide a summary that describes the manner in which the low income targeting goals will be met. Response: Where NSP3 funds are utilized to provide multi family units, a minimum of 25% of the units will be set aside for persons whose incomes do not exceed 50 percent of area median income. Should 25% of the units expenditures fall short of $260,575, then additional units will be set aside to meet until the full set aside funds are expended. Where NSP3 funds are utilized to construct new single family homes or rehab single family homes, 25% of the dwelling units will be set aside for persons whose incomes do not exceed 50 percent of area median income. Should 25% of the units expenditures fall short of $260,575, then additional units will be set aside to meet until the full set aside funds are expended. When the units become available, an application process, which includes income certification, will be conducted to ensure that the end user meets the requirements of the program. A deed restriction and zero interest deferred mortgage will be executed to ensure long term affordability. 5. Acquisition and Relocation Demolition or Conversion of LMI Units Does the grantee intend to demolish or convert any low and moderate income dwelling units (i.e., 80% of area median income)? No 11/5/2010 Page v

6 If yes, fill in the table below. Question The number of low and moderate income dwelling units i.e., 80% of area median income reasonably expected to be demolished or converted as a direct result of NSP assisted activities. The number of NSP affordable housing units made available to low, moderate, and middle income households i.e., 120% of area median income reasonably expected to be produced by activity and income level as provided for in DRGR, by each NSP activity providing such housing (including a proposed time schedule for commencement and completion). The number of dwelling units reasonably expected to be made available for households whose income does not exceed 50 percent of area median income. Number of Units 6. Public Comment Citizen Participation Plan Briefly describe how the grantee followed its citizen participation plan regarding this proposed substantial amendment or abbreviated plan. Response: A working link to the draft plan was placed on the main webpage for the City of Kissimmee with instructions for making comments. Copies of the draft plan were also made available in the Development Services Department and the City Clerk s office. The public was given 15 days to review the draft plan prior to submission to HUD. Notice of these available hard copies was also placed on the main webpage. Summary of Public Comments Received. The summary of public comments received is included as an attachment. 7. NSP Information by Activity Enter each activity name and fill in the corresponding information. If you have fewer than seven activities, please delete any extra activity fields. (For example, if you have three activities, you should delete the tables labeled Activity Number 4, Activity Number 5, Activity Number 6, and Activity Number 7. If you are unsure how to delete a table, see the instructions above. The field labeled Total Budget for Activity will populate based on the figures entered in the fields above it. Consult the NSP3 Program Design Guidebook for guidance on completing the Performance Measures component of the activity tables below. Activity Name Uses Activity Number 1 Multi family rehabilitation Select all that apply: 11/5/2010 Page vi

7 CDBG Activity or Activities National Objective Activity Description Eligible Use A: Financing Mechanisms Eligible Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment 24CFR (a) Acquisition; (b) Disposition; 24CFR rehabilitation; Redevelopment of vacant properties LMMH; LH25 Low Mod Housing Activities. To provide permanent residential structures will be occupied by LMI households. At least 51% of the units will be occupied by LMMI households. And at least 25% will be occupied by persons whose income is less than 50% of the area median income (LH25). In the heart of our community stands a number of abandoned and foreclosed structures that once existed as the support hotel/motel industry for surrounding theme parks. As these hotels and motels lose their stronghold on the tourism market, many have fallen into disrepair and some are a danger to the community. And the hotels and motels that are still operational? Unfortunately they house a large number of families who have lost their homes due to the foreclosure crisis. Many of the Osceola County School District s children are living in these hotels unable to find affordable housing in the City. The City would like to partner with a developer and rehabilitate a foreclosed hotel and provide affordable rental units for the neediest families in Osceola County. The City would like to issue a Request for Qualifications and ask developers to submit a plan to renovate one of these hotels or motels utilizing the entire NSP3 allocation. Once a developer is selected, they will be given a period of time to secure the additional funding needed to complete the project. If they are able secure this funding, they will be formally awarded the full allocation to conduct the acquisition and rehabilitation of the property. Because the City will only be providing partial funding for the project, not all units will be required to remain affordable. In the context of sustainable development, the City will require a mixture of income levels. This will enable the developer to sustain the project for the duration of the affordability period. This will help to ensure a stable inventory of affordable rental units in our community for 15 years. Where NSP3 funds are utilized to provide multi family units, a minimum of 25% of the units will be set aside for persons whose incomes do not exceed 50 percent of area median income. Should 25% of the units expenditures fall short of $260,575, then additional units will be set aside to meet until the full set aside funds are expended. The City intends to address the surrounding housing market conditions by providing funds that will rehabilitate a nuisance property and establish a sustainable mixed income residential multi family project. This will act as a catalyst project and help spur similar redevelopment projects. 11/5/2010 Page vii

8 There is no range of interest rates. The developer will execute a zero interest deferred mortgage that will be forgiven at the end of the affordability period. The duration of assistance will be 20 years, secured by the zero interest deferred mortgage and a deed restriction. Tenure of beneficiaries: rental Affordable rental units located close to public transportation is the expected benefit for the income qualified households. By securing the affordability of assisted units with the mortgage and deed restriction, and allowing the developer to mix in other income levels, the activity is designed to remain sustainable and affordable for the community for 20 years. The developer that is chosen through the RFQ process will be required to make every attempt to hire workers from within the target area. City staff will require the developer to meet with the local Workforce Florida office and advertise employment opportunities in local newspapers and on the city s government television network, Access Osceola. The RFQ will be awarded through a selection criteria that follows review procedures with regard to the multi family property chosen. The project must meet the following criteria: Large enough to have an impact on the target area Small enough to obtain funds and complete within the NSP3 timeframe Free from environmental hazards that would push redevelopment costs beyond the funding obtained and timeframe allowed Have access to public transportation If the developer is unable to secure funding within the timeframe given, the City will expend the funds on Activity 2. Acquisition, rehab and resell is an activity conducted under the NSP1 program and the City is adept at completing these projects in a timely manner. Location Description Central Kissimmee (see map attached) Source of Funding Dollar Amount Budget NSP3 $938, To be determined by developer $ (Other funding source) $ Total Budget for Activity $938, Performance Measures 10+ dwelling units Projected Start Date May 1, 2011 Projected End Date December 1, 2013 Responsible Name City of Kissimmee/Amy Carbajal 11/5/2010 Page viii

9 Organization Location 101 N Church Street, Kissimmee, FL Administrator Contact Info acarbaja@kissimmee.org Activity Name Use CDBG Activity or Activities National Objective Activity Number 2 Acquisition, Rehab and Resell Select all that apply: Eligible Use A: Financing Mechanisms Eligible Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment 24CFR (a) Acquisition; (b) Disposition; 24CFR rehabilitation; Redevelopment of vacant properties LMMH; LH25 THIS IS PLAN B. The City would like to have this activity approved by HUD in advance in the event Activity 1 fails. This will enable staff to move quickly to expend the NSP3 funds. The City acquired 4 vacant lots through the CDBG Land Acquisition program. A Request for Proposals will be advertised to solicit a developer to build single family homes on these 4 lots. Staff is aware that both CDBG and NSP3 requirements must be met. These lots are located within the NSP3 Target Area. Activity Description During the construction of the homes applications will be accepted for potential home owners. Income eligible home owners will be required to meet the housing counseling requirements prior to closing. A deed restriction will be placed on the property to ensure long term affordability. Purchase assistance will be made available and a zero interest deferred loan will be executed to protect that investment. Remaining funds will be used in the Central Kissimmee Target Area to acquire, rehab and resell foreclosed homes to income eligible households. This activity will address the local housing market by adding newly constructed homes and rehabbed homes in declining neighborhoods, thereby raising all homes value. There is no range of interest rates. The buyer will execute a zero interest deferred mortgage that will be forgiven at the end of the affordability period. Tenure of beneficiaries: owner Affordable home ownership opportunities is the expected benefit for the income qualified households. 11/5/2010 Page ix

10 By securing the affordability of the homes with the mortgage and deed restriction the activity is designed to remain sustainable and affordable for the community for up to 15 years. The developer that is chosen through the RFQ process will be required to make every attempt to hire workers from within the target area. City staff will require the developer to meet with the local Workforce Florida office and advertise employment opportunities in local newspapers and on the city s government television network, Access Osceola. A budget is not allocated to this activity at this time. If it is determined that we will pursue this activity, staff will make necessary plan adjustments. Location Description Central Kissimmee (see map attached) Source of Funding Dollar Amount Budget NSP3 $none at this time (Other funding source) $ (Other funding source) $ Total Budget for Activity $0.00 Performance Measures 6 single family units Projected Start Date May 1, 2011 Projected End Date December 1, 2013 Name City of Kissimmee/Amy Carbajal Responsible Organization Location 101 N Church Street, Kissimmee, FL Administrator Contact Info ; acarbaja@kissimmee.org Activity Number 3 Activity Name Program Administration Select all that apply: Eligible Use A: Financing Mechanisms Use Eligible Use B: Acquisition and Rehabilitation Eligible Use C: Land Banking Eligible Use D: Demolition Eligible Use E: Redevelopment CDBG Activity or Activities Administration CFR National Objective N/A Activity Description Program Administration Location Description N/A Source of Funding Dollar Amount Budget NSP3 $104, (Other funding source) $ (Other funding source) $ Total Budget for Activity $104, /5/2010 Page x

11 Performance Measures N/A Projected Start Date May 1, 2011 Projected End Date December 1, 2013 Name Responsible Location Organization Administrator Contact Info City of Kissimmee/Amy Carbajal 101 N Church Street, Kissimmee, FL ; acarbaja@kissimmee.org 8. Certifications Certifications for State and Entitlement Communities (1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify 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 the analysis and actions in this regard. (2) Anti displacement and relocation plan. The applicant certifies that it has in effect and is following a residential anti displacement and relocation assistance plan. (3) Anti lobbying. The jurisdiction must submit a certification with regard to compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (4) Authority of jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated plan, as applicable, is authorized under state and local law (as applicable) and that the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (5) Consistency with plan. The jurisdiction certifies that the housing activities to be undertaken with NSP funds are consistent with its consolidated plan or abbreviated plan, as applicable. (6) Acquisition and relocation. The jurisdiction certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the notice for the NSP program published by HUD. (7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135. (8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR or , as modified by NSP requirements. (9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or 11/5/2010 Page xi

12 Comprehensive Housing Affordability Strategy) that has been approved by HUD. [Only States and entitlement jurisdictions use this certification.] (10) Use of funds. The jurisdiction certifies that it will comply with the Dodd Frank Wall Street Reform and Consumer Protection Act and Title XII of Division A of the American Recovery and Reinvestment Act of 2009 by spending 50 percent of its grant funds within 2 years, and spending 100 percent within 3 years, of receipt of the grant. (11) The jurisdiction certifies: a. that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income; and b. The jurisdiction 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 NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP 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. In addition, with respect to properties owned and occupied by moderate income (but not low income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment. (12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing: a. 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 b. A policy of enforcing applicable state and local laws against physically barring entrance to, or exit from, a facility or location that is the subject of such nonviolent civil rights demonstrations within its jurisdiction. (13) Compliance with anti discrimination laws. The jurisdiction certifies that the NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C ), and implementing regulations. (14) Compliance with lead based paint procedures. The jurisdiction certifies that its activities concerning lead based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws. (16) Vicinity hiring. The jurisdiction certifies that it will, to the maximum extent feasible, provide for hiring of employees that reside in the vicinity of NSP3 funded projects or contract with small businesses that are owned and operated by persons residing in the vicinity of NSP3 projects. 11/5/2010 Page xii

13 (17) Development of affordable rental housing. The jurisdiction certifies that it will be abide by the procedures described in its NSP3 Abbreviated Plan to create preferences for the development of affordable rental housing for properties assisted with NSP3 funds. Mike Steigerwald Date City Manager Title 11/5/2010 Page xiii

14 Appendix: NSP3 Action Plan Contents Checklist The checklist below is an optional tool for NSP3 grantees to help to ensure that all required elements of the NSP3 Substantial Amendment or the Abbreviated Plan are submitted to HUD. This checklist only includes the minimum required elements that must be included in the NSP3 Action Plan and grantees may want to add additional details. This document must be protected, as described above, in order to use the checkboxes in this checklist. 1. NSP3 Grantee Information Did you include the Program Administrator s name, address, phone, and address? Yes 2. Areas of Greatest Need Does the narrative description describe how funds will give priority emphasis to areas of greatest need? Does the narrative description specifically address how the funds will give priority emphasis to those areas: With the highest percentage of home foreclosures? With the highest percentage of homes financed by subprime mortgage related loan?; and Identified by the grantee as likely to face a significant rise in the rate of home foreclosures? Did you create the area of greatest needs map at Did you include the map as an attachment to your Action Plan? ONLY Applicable for States: Did you include the needs of all entitlement communities in the State? Yes 3. Definitions and Descriptions Are the following definitions and topics included in your substantial amendment?: Blighted structure in context of state or local law, Yes 11/5/2010 Page xiv

15 Affordable rents, Ensuring long term affordability for all NSP funded housing projects, Applicable housing rehabilitation standards for NSP funded projects 4. Low Income Targeting Yes Did you identify the estimated amount of funds appropriated to provide housing that meets the low income set aside target? Did you provide a summary describing how your jurisdiction will meet its low income set aside goals? 5. Acquisition & Relocation Yes For all acquisitions that will result in displacement did you specify: The planned activity, The number of units that will result in displacement, The manner in which the grantee will comply with URA for those residents? 6. Public Comment Yes Did you provide your draft of the NSP3 substantial amendment for a minimum of 15 days for public comment? Did you include the public comments you received on the NSP3 substantial amendment in your plan? 7. NSP Information by Activity Did you include a description of all eligible NSP3 activities you plan to implement with your NSP3 award? For each eligible NSP3 activity you plan to implement did you include: Check all that apply 11/5/2010 Page xv

16 Eligible use or uses? Correlated eligible CDBG activity or activities? Associated national objective? How the activity will address local market conditions? Range of interest rates (if any)? Duration or term of assistance? Tenure of beneficiaries (e.g. rental or homeowner)? If the activity produces housing, how the design of the activity will ensure continued affordability? How you will, to the maximum extent possible, provide for vicinity hiring? Procedures used to create affordable rental housing preferences? Areas of greatest need addressed by the activity or activities? Amount of funds budgeted for the activity? Appropriate performance measures for the activity (e.g. units of housing to be acquired, rehabilitated, or demolished for the income levels represented in DRGR)? Expected start and end dates of the activity? Name and location of the entity that will carry out the activity? 8. Certifications Did you sign and submit the certification form applicable to your jurisdiction? Yes 9. Additional Documentation Did you include a signed SF 424? Yes 11/5/2010 Page xvi

17 Neighborhood Stabilization Program 3 Program Budget Activity: Budget Acquisition, Rehabilitation of Multi Family Structure: $938, Acquisition, Rehabilitation and Resell Single Family: $0.00 Administration: $104, Total: $1,042, /5/2010 Page xvii

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