Cover Sheet. City of Lakewood, Division of Community Development. Address Detroit Avenue, Lakewood, OH Phone

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1 Cover Sheet Organization Organization Type City of Lakewood, Division of Community Development Municipal Government Address Detroit Avenue, Lakewood, OH Contact Person & Title Mary Leigh, Programs Manager Phone Department Director Bryce Sylvester Federal Tax ID # DUNS # Project/Program Name Affordable Housing Programs Total Project Budget $225,000 CDBG Funding Requests Property Revitalization Program $100,000 Home Improvement Grant Program $40,000 HOME Activity Delivery $20,000 $160,000 1

2 Abstract Department/Division: Division of Community Development City of Lakewood Detroit Avenue Lakewood, OH Mission: Programs: Provide high quality housing for all Lakewood Residents Home Improvement Grant Program This program provides rebates to low and moderate income owner occupants who have completed eligible improvements and brought the exterior of their home into compliance with the Division of Housing and Building. Participating homeowner self-fund their repairs. Property Reinvestment Through this program the City acquires and rehabilitates vacant and foreclosed homes. Completed homes are sold to low and moderate income first time homebuyers. HOME Activity Delivery The HOME Activity Delivery funds allow the City to cover administrative costs not covered by the HOME Program. The City of Lakewood through the Cuyahoga Housing Consortium receives annual allocations to own, develop or sponsor affordable housing projects. Traditionally the City has used these funds for first time homebuyer down payment assistance, to build new single family homes or rehab existing properties for sale to low and moderate income homebuyers. Community Needs Addressed: Community Development seeks to address a variety of community housings needs including affordability, rehabilitation and home ownership. We assist low-moderate income households, provide programming specific to seniors and the disabled, and encourage infill development which is complementary to the scale and character of surrounding residential uses. Target Population: Low and Moderate Income homeowners and tenants. Anticipated Outcomes & Beneficiaries: Using the requested funds we anticipate completing nine (9) rebates (average rebate is $4,250) and the rehab and sale of a City owned single family home on Lauderdale Avenue. The HOME Activity Delivery Funds will fund administrative costs associated with the First Time Homebuyer s Downpayment Assistance Program (8 anticipated projects) and completion of the two new construction single family homes in Birdtown. Project Costs $140,000 Administrative Costs $20,000 Total $160,000 2

3 City of Lakewood Division of Community Development Affordable Housing Programs CDBG Eligibility Criteria The City of Lakewood Division of Community Development s Property Revitalization (PRP), Home Improvement Grant (HIG), and HOME Delivery activities satisfy the following CDBG eligibility criteria and are therefore suitable for CDBG funding consideration. CDBG National Objective Low-Moderate Income Housing (LMH): Activities including acquisition and rehabilitation that provide or improve permanent residential owner- or renter-occupied, single- or multi-family structures which, upon completion, will be occupied by low-moderate income households. CDBG-Eligible Activity Categories PRP & HIG Housing Rehabilitation (Residential): The acquisition, repair, rehabilitation, and reconstruction, of single- and multi-family owner- and renter-occupied housing to be occupied by low-moderate income persons including bringing property up to local codes and standards; energy efficiency/weatherization; handicapped accessibility/visitability; and emergency repair programs. HOME Activity Delivery Housing Services: CDBG funds may be used to pay for administration of the HOME program. HUD-Designated Performance Objective Provide Decent Affordable Housing HUD-Designated Performance Outcome Affordability 3

4 Applicant Narrative Lakewood Division of Community Development 1. Mission Providing high quality housing for all Lakewood Residents 2. Geographic Target Areas Entire City 3. Target Population Low and Moderate Income homeowners and renters 4. Programs & Services The Division of Community Development provides programs and service to both residential and commercial property owners and tenants. These programs include the Low Interest Home Improvement Loan, Home Improvement Grant, RAMP, Nuisance Rehab and Demolition, Storefront Renovation and First Time Homebuyer Downpayment Assistance Programs. Additionally the City uses both CDBG and HOME funds to acquire property for renovation or new construction and sale to low and moderate income homebuyers. 5. Number & Demographic Profile of Households Served (FY16) Project Total L/M units Owner Renter Vacant Program Cost Units assisted Units Units Units Nuisance Rehab $89, Weatherization $5, RAMP $51, Low Interest Loan $133, Home Improvement Grant $16, TOTAL $296, Qualifications to Implement Proposed Project For over 30 years, the Division of Community Development has provided a variety of programs using federal funds to assist low and moderate income property owners and tenants in addition to administering the Storefront Renovation Program. Current staff has extensive training and expertise in federal programs, identifying residential safety concerns and managing financial resources. 4

5 7. Budget Housing Program Expenses (CDBG Only) Revenue Sources (top 3) Expenditure Type Amount % Budget Salaries & Fringe Benefits $ 70, % Operating Costs $ 8, % Capital Costs $ 230, % Indirect Costs $ 24, % Total Annual Budget $ 332, % # Source Amount % Budget 1 CDBG Housing Programs $332, CDBG Storefront Renovation $331, HOME $300, Total $963, % 8. Additional Information or Data That Will Assist Lakewood s Citizens Advisory Committee and City Staff in Evaluating this Funding Request The Division of Community Development regularly analyses market conditions to ensure that programs continue to meet the needs of the City s low and moderate income households. Current trends show that housing values and rents have increased, interest rates are still at historical low levels and unemployment is low. This correlates to increased access to home equity and low interest rate financing options are available for existing homeowners. First time buyers are having difficulty finding entry level homes nationally and in Lakewood. Demand has outpaced supply. Understanding these trends have focused our efforts on preserving the availability of affordable single family homes by acquiring and rehabbing vacant properties or building new affordable infill homes. Many of these properties come to the City s land bank following a tax foreclosure. For existing property owners, the City has focused its marketing of programs like the Home Improvement Grant where income eligible homeowners can receive rebates for exterior home improvements that bring the property into exterior compliance. We also offer low interest home improvement loans to low and moderate income homeowners unable to obtain financing through traditional lenders and those who for a variety reasons require additional assistance completing home improvements. The loan program is self-funding. As existing loans repay, the City is able to finance new loans. 5

6 1. Unmet Community Needs & Service Gaps Addressed Project Narrative Ensuring that low and moderate income homeowners have access to needed financial resources to maintain and improve their homes. 2. Target Population & Outreach Efforts to Potential Beneficiaries Low and moderate income homeowners with special financing for seniors and permanently disabled homeowners. Targeted mailings to homeowners who have been cited by the Division of Building and Housing or who have pulled permits to complete eligible repairs. 3. Geographic Service Area City of Lakewood 4. Primary Goals & Objectives Create and preserve affordable housing opportunities for low and moderate income households Preserve historic character of residential homes Ensure residential homes are decent, safe and sanitary 5. Activities Undertaken/Services Provided & Delivery Strategy The Division of Community Development assists low and moderate income homeowner unable to obtain financing through conventional lenders. Homeowners who bring the exterior of their homes into compliance with local code using personal resources may receive rebates so long as they are income qualified. Programs also support the preservation and development of affordable housing. 6. Program Design (emphasize uniqueness and/or innovation) In 2017, utilizing building code violation and permit data, Community Development targeted its marketing efforts to homeowners likely to qualify for programs and who were identified as having homes that were in need or had completed repairs to their homes. 7. Staff Responsible for Program Administration & Implementation Hours/Week Job Title Devoted to Program % CDBG Funded Brief Summary of Responsibilities Programs Manager 90% Program oversight and management; application review Program Coordinator 70% Inspection, contractor payments, application review 6

7 8. Project Implementation Schedule Milestone Completion Deadline Applications accepted and processed year round 12/31/ Beneficiaries (January 1 December 31, 2018) Unduplicated Households Served 25 Unduplicated Low-Moderate Income Households Served Program Evaluation & Outcome Measurement Outcomes are measured based on the number of housing units rehabilitated, the number of low and moderate income households assisted and/or costs associated with programs benefitting low and moderate income households. 11. Strategy for Coordination with Other City Departments & Community Partners Community Development collaborates with programs offered or facilitated through organizations like Lakewood Alive and the Cuyahoga County Board of Health to maximize resources available to homeowners. As an example residents are able to receive a paint or lead remediation grant (from Lakewood Alive or the Board of Health respectively) and then receive low interest loan funding from the City to assist with payment of costs not covered by grant funding. 7