HomeMy WebLinkAboutItem 08 Fiscal Year 2013-2014 One Year Action Plan of the Eugene-Springfield Consolidated Plan for Housing and Community Development AGENDA ITEM SUMMARY Meeting Date: 5/6/2013
Meeting Type: Regular Meeting
Staff Contact/Dept.: Kevin Ko/DPW
Staff Phone No: 541-726-2302
Estimated Time: 10 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Encourage Economic
Development and
Revitalization through
Community Partnerships
ITEM TITLE: FISCAL YEAR 2013-2014 ONE-YEAR ACTION PLAN OF THE EUGENE-
SPRINGFIELD CONSOLIDATED PLAN FOR HOUSING AND COMMUNITY
DEVELOPMENT (CITY OF SPRINGFIELD SECTION)
ACTION
REQUESTED:
1. Conduct a Public Hearing to receive testimony regarding the City of
Springfield section of the FY2013-2014 One-Year Action Plan
2. Modify if appropriate and by motion adopt/not adopt the Springfield section of
the FY2013-2014 One-Year Action Plan
ISSUE
STATEMENT:
One-Year Action Plans must be submitted to HUD prior to the beginning of each
fiscal year as amendments to the five-year Eugene-Springfield Consolidated Plan.
The purpose of the annual action plan is to indicate how the cities intend to use
federal Community Development Block Grant (CDBG) and HOME Investment
Partnerships Program (HOME) funds to fulfill the priorities established in the
Consolidated Plan. This is the fourth One-Year Action Plan under the 2010
Consolidated Plan.
ATTACHMENTS: 1. FY2013-2014 Action Plan Executive Summary
2. FY2013-2014 One-Year Action Plan (City of Springfield section)
DISCUSSION/
FINANCIAL
IMPACT:
The City of Springfield receives CDBG funds as an entitlement community and
HOME funds as a participant in a HOME consortium agreement with the City of
Eugene. CDBG funds are awarded to communities who carry out community
development activities directed towards neighborhood revitalization, economic
development, and the provision of improved community facilities and services.
HOME funding is a housing block grant program allocated to communities to be
used for housing rehabilitation, new construction, acquisition and tenant based
rental assistance activities. A public hearing was held on April 15, 2013, to review
and consider applications for CDBG and HOME funding. Council approved four
projects for CDBG funding, one project for HOME funding, and one project for
both CDBG and HOME funding. Council also approved changing the
recommendation for the Catholic Community Services proposal from a loan to a
conditional grant.
The FY2013-2014 One Year Action Plan includes the CDBG and HOME funding
allocations for projects and activities, and is consistent with the Council’s actions of
April 15, 2013. The plan must be approved by both the City of Springfield and City
of Eugene prior to submission to HUD. In addition to the approved projects, a
description of other activities that may be initiated is included in both the CDBG
and HOME sections of the Action Plan. The public comment period for the City of
Springfield section of the document concludes with the public hearing on May 6,
2013. The City of Eugene section of the Action Plan is being adopted separately by
the Eugene City Council. The combined Eugene-Springfield One-Year Action Plan
will be submitted to HUD on or before May 15, 2013 for review and acceptance.
FY2013-14 One-Year Action Plan, Executive Summary 1
FY2013/14 One-Year Action Plan
Executive Summary
Citizen Participation Process, Outreach and Technical Assistance
Community Development Block Grant (CDBG) and HOME Investment Partnerships
Program (HOME) funds are allocated through a competitive application process.
Applications are solicited from area non-profit agencies and from private for-profit entities.
The City of Springfield has been very successful in its outreach efforts to minorities, persons
with disabilities and other underserved populations. Notices of funds availability,
committee meetings and public hearings are widely distributed to area social service
agencies and housing providers, including agencies that serve minorities and persons with
physical and developmental disabilities. These include Sheltercare, Mainstream Housing,
Alvord Taylor Supported Living, Full Access and Oregon Supported Living, Pearl Buck
Center and the Arc of Lane County. The public hearings to receive input for the annual
action plans are well attended and often include persons with disabilities and minorities. A
significant portion of our Federal entitlements have gone to agencies that serve persons
with physical and developmental disabilities.
Technical Assistance is provided individually to applicants during a required pre-submittal
meeting with CDBG and HOME staff. Applicants are informed of local and federal rules
and requirements that govern the CDBG and HOME programs. These include Davis-
Bacon, environmental requirements, zoning and land use issues and program eligibility.
Eligible applications are forwarded to the Springfield Community Development Advisory
Committee (CDAC) for review.
FY2013/14 Allocation Process
Requests for Proposals were issued on January 24, 2013. $240,420 of HOME funds and
$199,433 of CDBG funds were made available in the RFP. Selected projects and services
will provide decent, safe and affordable housing for persons of low income, create or
sustain a suitable living environment and provide economic opportunities for persons of
low and moderate income. The deadline for receiving completed proposals from all
applicants was March 15,
2013. The City received six requests for funding totaling
$580,500. All applications were forwarded to the CDAC for review and consideration. The
CDAC held a public hearing on April 4, 2013 to hear testimony, review proposals and
develop funding recommendations. Nine persons attended the public hearing, with five
persons providing testimony to the CDAC. After deliberation, the CDAC recommended all
projects for CDBG or HOME funding. Recommendations for funding were forwarded to the
Springfield City Council. The 30-day public comment period for the FY2013/14 One-Year
Action Plan opened on April 5, 2013 with the publication of a combined notice of public
hearing in the Register Guard and distribution of the notice to interested parties.
The Springfield City Council met on April 15, 2013 and held a public hearing on the CDBG
and HOME funding recommendations for FY2012/13. Applicants, supporters and CDAC
members attended the public hearing and ten people testified in support of the CDAC’s
recommendations. The Council considered testimony and discussed the individual
projects and community goals. The Council voted 6-0 to approve CDBG and HOME
funding as recommended. The 30-day comment period for the One-Year Action Plan will
Attachment 1-1
FY2013-14 One-Year Action Plan, Executive Summary 2
close on May 6, 2013. The FY2013/14 One-Year Action Plan (Springfield section) will be
presented to the City Council for consideration and approval at a public hearing on May
6, 2013.
Highlights – City of Springfield
Non-Profit Capital Projects
The Neighborhood Economic Development Corporation (NEDCO) is receiving $23,353 to
assist with landscape and exterior improvements to the Sprout! Regional Food Hub. The
improvements to the facility will allow it to better function as an outdoor marketplace and
home of the seasonal Springfield Farmers’ Market. The food hub is located in the former
Springfield Christian Church at 4th
and A Streets in downtown Springfield. The Sprout! food
hub received $153,577 in CDBG funding for acquisition of the site in 2011, and $58,000 of
CDBG in 2012 to assist with the purchase of commercial kitchen equipment.
Catholic Community Services (CCS) owns and operates the Springfield Community
Service Center at 1025 G Street. CCS will receive approximately $17,500 of CDBG funds to
assist with the renovation of the center. Activities include redesigning and repurposing the
intake and resource distribution areas, and making improvements to the deteriorated
parking lot. The Community Service Center is the largest distributor of emergency food in
Springfield, distributing approximately 475 tons to over 12,000 low-income families and
individuals in 2012. It is also one of two Springfield sites for the Egan Warming Centers.
Affordable Rental Housing
The Housing Authority and Community Services Agency (HACSA) and Metropolitan
Affordable Housing (Metro) will be receiving approximately $81,580 of CDBG funds to assist
with the acquisition and development of the commercial portion of Glenwood Place. The
project has also been allocated approximately $210,170 of HOME funds for development
of the housing component. When completed, the workforce housing within the
development will consist of studio, one-bedroom and two-bedroom apartments set at
rent levels affordable to individuals and families earning 30-60% of median area income.
HACSA received a HOME grant of $96,500 in FY2012 for predevelopment costs associated
with Glenwood Place.
Affordable Homeownership Housing
Springfield-Eugene Habitat for Humanity (HfH) will receive approximately $30,250 of HOME
funds to assist with infrastructure development on a site the agency owns on R Street in
Springfield. When completed, the project will consist of seven single-family homes that will
provide affordable homeownership opportunities for low and very low-income
households. HfH uses a successful national model of homeownership development,
utilizing volunteer labor and donations to reduce the cost of homeownership. HfH is
nearing completion of the Meyer Estates subdivision, which received HOME funding in
previous years.
Economic Development and Job Creation
NEDCO is receiving $30,000 in CDBG funding to assist 20 low-income Springfield
microbusiness owners through their Hatch Business Incubator: Microenterprise
Attachment 1-2
FY2013-14 One-Year Action Plan, Executive Summary 3
Development Program. CDBG funds will be used to offer direct scholarships that will offset
the $1,800 annual subscription cost to the clients for participation and to build program
capacity. The services provided to Hatch participants include on-site and off-site
technical small business assistance, classes and workshops, and a series of entrepreneurial
boot camps directed at specific industry clusters including food and social enterprise.
Hatch is based on proven microenterprise and community development principles
wherein businesses receiving services gain skills not only to build their own business, but to
reinvest in their community. NEDCO has received past CDBG funding for Hatch in 2009,
2010 and 2012.
Downtown Redevelopment
The Springfield Economic Development Corporation (SEDA) is receiving $50,000 of CDBG
to assist with the acquisition of a downtown property at 138 Main Street. The property is at
the location of the planned downtown Mill Plaza, this acquisition is consistent with the
adopted Downtown Urban Design Plan. Existing commercial tenants will be allowed to
continue their current lease arrangements. As other adjacent properties are acquired
and redeveloped over the next several years, SEDA will make plans to clear and
redevelop the site as a public plaza. Relocation assistance, if necessary, will be provided
to the commercial tenants prior to redevelopment. SEDA is a government agency and
was created in 2004 by the City of Springfield and Lane County, for the purpose of
eliminating blight in areas within the Agency’s jurisdiction in ways which will foster a
business climate, improve quality of life and encourage private investment in our
community. This is SEDA’s first CDBG application.
Other Activities and Housing Programs
•
Housing Rehabilitation Programs - $80,000 in CDBG will be used by the City of
Springfield to support two housing rehabilitation programs. These programs provide
assistance to low and very low-income homeowners faced with major rehabilitation
needs and emergency home repairs.
•
Home Ownership Program - $100,000 in HOME funds will be used by the City of
Springfield to support its Springfield Home Owner Program (SHOP). The SHOP will
provide up to $7,000 to low-income homebuyers for downpayment assistance and
other closing costs.
• Community Housing Development Organizations - $13,995 of HOME funds will go to
support four Community Housing Development Organizations (CHDO). Called CHDO
Operating Funds, the funds will be divided equally among Mainstream Housing, Inc.,
Metropolitan Affordable Housing Corporation, Neighborhood Economic Development
Corporation and St. Vincent de Paul Society of Lane County.
• Public Services - $64,485 in CDBG will go to the Human Services Commission to support
public services for low and very low-income persons. Funded agencies include Food
for Lane County, the Relief Nursery, Catholic Community Services, and St. Vincent de
Paul.
Attachment 1-3
FY2013/14 One-Year Action Plan 1
City of Springfield
One-Year Action Plan for FY2013/14
Community Development Block Grant Program
Description
The City of Springfield receives an annual allocation of Community Development Block
Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD).
The City of Springfield's fiscal year 2013/2014 (FY2013/14) CDBG allocation is projected to be
approximately $429,897. This is a 5.0% reduction from FY2012, which itself was a reduction of
18% from the previous year. If this projection is accurate, this will be the lowest level of CDBG
funding for the City since 1990. When HUD informs the City of its actual FY2013/14 CDBG
allocation, project allocations will be adjusted as necessary.
The Community Development Advisory Committee (CDAC) was established by the City of
Springfield to make recommendations concerning program policy and project selection to
the City Council. Springfield allocates CDBG funds annually through a competitive Request
for Proposals (RFP) process. One of the funding criteria for project selection is the efficient use
of the CDBG dollars. This is demonstrated in a proposal by the amount of additional
resources leveraged by the CDBG commitment. Although this funding criterion is weighed
against other funding criteria, it has been a significant factor in bringing much needed
resources into the community. The CDAC also determined that projects nearing completion
should receive additional consideration for funding, as these projects have the potential of
providing immediate benefit to the community.
It is anticipated that the FY2013/14 CDBG allocation will leverage other resources that will
include but are not limited to the following: Springfield General Fund, other Federal
resources, State funds, urban renewal, local assessments for public improvements, private
donations, in-kind contributions, and contributions provided by the applicant agency.
Activities Benefiting Low- and Moderate-Income Persons
Generally, Springfield's CDBG-funded programs and projects are provided to benefit low-
income residents living within the city limits of Springfield. Individuals participating in a CDBG-
funded program are required to meet HUD Income Guidelines. In order to meet the CDBG
National Objective of Benefit to Low and Moderate-Income Persons, CDBG-funded projects
must either serve a specific low-income area, or provide tangible benefit to low- and
moderate-income clientele (services, economic opportunities, housing). Funded programs
and projects undergo periodic staff monitoring to ensure compliance with CDBG regulations.
It is estimated that no less than $273,565 of FY13/14 CDBG funds will be spent on activities
that benefit primarily low- and moderate-income persons.
Springfield Community Service Center Renovation. Catholic Community Services (CCS) owns
and operates the Springfield Community Service Center at 1025 G Street. CCS will receive
Attachment 2-1
FY2013/14 One-Year Action Plan 2
approximately $17,500 of CDBG funds to assist with the renovation of the center. Activities
include redesigning and repurposing the intake and resource distribution areas, and
improving the deteriorated parking lot.
The Community Service Center is the largest distributor of emergency food in Springfield,
distributing approximately 475 tons to over 12,000 low-income families and individuals in 2012.
Persons in need may also receive clothing hygiene and personal items, household items,
utility assistance, LTD bus passes and other necessary assistance. The center hosts the
Soaring Hope meal program and day center for homeless persons and families. It is also one
of two Springfield sites for the Egan Warming Centers.
Glenwood Place. The Housing and Community Services Agency of Lane County (HACSA) is
partnering with Metropolitan Affordable Housing (Metro) to develop a 150 unit affordable
housing/commercial complex in Glenwood. HACSA will be receiving approximately $81,580
of CDBG funds to assist with the acquisition and development of the commercial portion of
the project. The project has also been allocated approximately $210,170 of HOME funds for
development of the housing component. When completed, the workforce housing within
the development will consist of studio, one-bedroom and two-bedroom apartments set at
rent levels affordable to individuals and families earning 30-60% of median area income. The
development will also include community spaces and meeting rooms, open areas, and
parking for the commercial and residential tenants.
Glenwood is located in a transit-rich area, positioned between Eugene and Springfield, with
easy access to the U of O, LCC, Peace Health Medical Center, and both downtowns. The
development will be a catalyst for new economic activity along the Franklin Blvd. corridor,
and is consistent with the goals of the Glenwood Refinement Plan. HACSA received a HOME
grant of $96,500 in FY2012 for predevelopment costs associated with Glenwood Place.
Hatch Microenterprise Development Program. The Neighborhood Economic Development
Corporation (NEDCO) will receive approximately $30,000 in CDBG funding to assist 20 low-
income Springfield microbusiness owners through their Hatch Business incubator -
Microenterprise Development Program. CDBG funds will be used to offer direct scholarships
to eligible low-income microbusiness owners, and will offset some of the enrollment and
program costs for participation and to build program capacity. The services provided to
Hatch participants include on-site and off-site technical small business assistance, classes
and workshops, and a series of entrepreneurial boot camps directed at specific industry
clusters including food and social enterprise. Hatch Business Incubator sites are located at
the NEDCO building on Main Street, at the SPROUT! Regional Food Hub, and at 18th
Street
and Mohawk Blvd.
Hatch serves three levels of business from concept to established and growing businesses:
Activator (pre-launch phase); Incubator (operating business); and Accelerator (established
businesses). An extensive menu of services which includes training, financial assistance,
networking and access to physical infrastructure has been developed for each level. Hatch
generates positive economic activity, especially in downtown Springfield. Hatch is based on
proven microenterprise and community development principles wherein businesses receiving
Attachment 2-2
FY2013/14 One-Year Action Plan 3
services gain skills not only to build their own business, but to reinvest in their community.
NEDCO has received past CDBG funding for Hatch in 2009, 2010 and 2012.
Activities for the Prevention or Elimination of Slum and
Blighted Conditions
Another national objective of the CDBG program is the prevention or elimination of slums
and blighted conditions in neighborhoods and communities, either by designating a specific
area or by addressing conditions on a spot basis. The City of Springfield conducted a
thorough inventory of structures in the downtown corridor to determine if the area would
meet the CDBG qualifications as a Blighted Area. A total of 116 structures were inventoried
and a visual inspection was made of the exterior of each structure. 68 structures were
determined to have conditions of decay and deterioration. At a public hearing on
December 1, 2003, the City Council approved amendments to the 2000 Eugene-Springfield
Consolidated Plan to designate a Springfield Downtown Redevelopment Area, in
compliance with CDBG regulations. The Downtown Redevelopment Area has boundaries of
Mill Street (west boundary), South A Street (south boundary), 10th
Street (east boundary) and B
Street (north boundary), excluding the residential areas on the south side of B Street between
8th and 10th Streets, and on the north side of A Street between 9th
and 10th
Streets. The
amendments to the Consolidated Plan also included provisions for reserving a portion of the
City’s annual CDBG allocation for projects that specifically address the problems of blight in
the Downtown Redevelopment Area.
The City of Springfield aggregates CDBG public benefit over three consecutive plan years.
This Action Plan covers activities for the third year in the three-year aggregate.
Downtown Property Acquisition. The Springfield Economic Development Agency (SEDA) has
been approved for $50,000 of CDBG funds to assist with the acquisition of a commercial
downtown property at the location of the planned Mill Plaza. The Mill Plaza is a major
component of the Downtown Urban Design Plan, adopted by the Springfield City Council in
September 2010. Located on Main Street between Pioneer Parkway East and West, the Mill
Plaza is visioned to be the central public gathering place in downtown.
Although the development of the Plaza is still several years away, acquisition of the
properties making up the plaza site needs to occur as properties become available on the
real estate market. The property identified in this proposal is being offered for sale by its
owner. There are currently two commercial tenants in the building occupying the property. It
is anticipated that the tenants will be allowed to remain in the building until such a time that
the premises need to be vacated for redevelopment. Relocation services and assistance will
be offered to the tenants at that time, if necessary. The buildings in the vicinity of the
proposed Mill Plaza are of low-value, underperforming economically and lack the density
and multi-use functionality required to meet the long-term objective of the Downtown Urban
Design Plan. This activity is eligible under the CDBG “slums and blight” national objective.
Attachment 2-3
FY2013/14 One-Year Action Plan 4
Marketplace@Sprout! NEDCO is receiving approximately $20,353 of CDBG funds to assist with
Phase 3 of the Sprout! Regional Food Hub project, which consists of improvements to the
grounds and exterior of the Sprout! facility to allow it to better function as an outdoor
marketplace and home of the seasonal Springfield Farmers’ Market. The food hub is located
in the former Springfield Christian Church at 4th
and A Streets in downtown Springfield. Food
entrepreneurs and micro-businesses have access to the fully equipped commercial kitchen
to prepare their wares and build their businesses. The CDBG funds will provide durable
hardscaping, way finding components, and functional landscaping to allow the seasonal
market to generate high levels of attendance. This activity is eligible under the CDBG “slums
and blight” national objective as site improvements to a public facility. Pre-Award Costs: As
NEDCO prepares Sprout! for the summer market season, they may elect to start the work on
the exterior of the facility prior to HUD’s approval of this action plan. This is called “pre-
awards costs” and is allowed under the CDBG program. Activities occurring after the date
of approval by the Springfield City Council of this action plan are eligible for reimbursement
from FY13/14 CDBG funds. Reimbursement can only occur after HUD’s approval of the
action plan, and the execution of the CDBG Agreement between the City and NEDCO.
The Sprout! food hub received $153,577 in CDBG funding for acquisition of the site in 2011,
and $58,000 of CDBG in 2012 to assist with the purchase of commercial kitchen equipment.
---
An allocation table and summaries of each approved project can be found at the end of
this section. Funding for grant administration and planning, public services and housing
programs in the amounts shown in the table was also approved by the Council at the public
hearing on April 15, 2013.
Anti-Poverty and Homeless Housing Continuum of Care
Service System
The City of Springfield works with its partners in local government, the City of Eugene and
Lane County, in a collaborative effort to address anti-poverty and homeless issues. The
intergovernmental Human Services Commission (HSC), composed of elected officials and
appointed members from these jurisdictions, allocates funding to address these issues. The
HSC is administering a work program that encompasses the following areas:
• Crisis Access & Stabilization Service System
• Short-Term Basic Needs Services
• Transitional Housing Services
• Permanent Supportive Housing Services
Attachment 2-4
FY2013/14 One-Year Action Plan 5
The Continuum of Care approach provides for multi-point access to services and linkages
among settings and services providers. Not all at-risk or homeless families and individuals will
need access to all four components.
It should be noted that the current economic crisis is having a significant impact on the HSC
agencies. Funding sources for vital services are being cut or eliminated, while at the same
time, the number of individuals and households in need of assistance is growing dramatically.
While the City will do what it can to assist the agencies and their clients, it is very clear that
the upcoming year will be very challenging for all service providers. The HSC will receive an
allocation of approximately $64,485 in CDBG funds from the City of Springfield, which is
equivalent to 15% of the City’s anticipated FY13/14 allocation. This is a reduction from last
year, and continues a trend of reduced funding that began in FY05.
To further incorporate the Continuum of Care philosophy into its delivery of services,
Springfield’s Housing Program manages an array of services that benefit very low and low-
income persons. The five programs being administered by the housing programs staff
address homeless prevention and housing assistance, repair to dwellings owned by low and
very low-income households and homeownership through the SHOP. These programs are
described more fully in the following narratives (the SHOP narrative will be found in the HOME
program section).
City of Springfield CDBG Funded Housing Programs
• The City of Springfield continues to manage the successful CHORE program, one of five
City-run housing programs. This program is designed to provide assistance to very low-
income, primarily elderly or disabled homeowners in Springfield, and provides basic lawn
care services and exterior home maintenance. By helping to maintain the appearance
of their property, the CHORE program helps to keep the property and occupants from
being identified as “easy” targets of crime and vandalism based on their age and/or
disability. In addition to the benefit to the property owner, this activity also benefits the
surrounding neighborhood. The City hopes to continue the CHORE program by using
CDBG program income, if available, (not to exceed the 15% cap for public services) to
provide services to homeowners who are unable to perform these services on their own.
The program allows up to $250 annually to an eligible household for these activities.
• The City of Springfield will continue to provide assistance to qualified low-income
homeowners through its Emergency Minor Home Repair Program and the Springfield
Home Improvement Program (SHIP). These programs are funded from CDBG program
income generated through SHIP loan repayments (when available) and an allocation
from the new CDBG grant. The City will allocate $80,000 from its new CDBG grant for this
purpose.
• Emergency assistance to very low-income renters is made available through Springfield’s
Emergency Rental Assistance Program (ERAP). This program provides single episode
Attachment 2-5
FY2013/14 One-Year Action Plan 6
assistance to qualified renters. Strict household and property eligibility requirements help
to protect this program against abuse or misuse. The severe reduction to the FY2012/13
CDBG allocation forced the City of Springfield to suspend this vital program. This program
is not expected to be revived until funding levels increase.
Coordination
Coordination efforts between public assisted housing providers and private and government
health, mental health and service agencies is an extremely important activity. It is important,
particularly now, when a number of housing providers are including within their programs
service components for the residents of their housing projects. Staff also works closely with
other resource providers coordinating efforts with the Springfield Utility Board for energy
assistance and weatherization, the Lane County Senior and Disabled Services, and the
United Way.
The Housing Policy Board (HPB) is an intergovernmental body formed by representatives from
Eugene, Springfield, Lane County, and the Housing and Community Service Agency (HACSA)
to develop countywide housing priorities. The HPB’s mission is “...to increase the availability of
decent, affordable housing for low- and very low-income families and individuals in Lane
County.”
The HPB meets on a monthly basis. The meetings are regularly attended by HACSA, the HSC,
Eugene and Springfield staff, non-profit providers, and developers. The agenda topics and
information shared at the meetings allows for a formal method of communication to occur
on a regular basis. The housing and service groups have established coordination and
integration of the total housing delivery system (capital needs and service needs).
Fair Housing Plan (CDBG and HOME Programs)
Eugene and Springfield have a long history of cooperation as they work together to address
increasing the supply of low-income housing and furthering fair housing choices. The two
jurisdictions formed a consortium to receive federal HOME funds. Elected officials from both
jurisdictions serve on the Intergovernmental Housing Policy Board. The Consolidated Plan is
another example of the jurisdictions working together.
The federal Fair Housing Act requires the Secretary of HUD “to administer the Department’s
housing and community development programs in a manner to affirmatively further fair
housing.” The Housing and Community Development Act of 1974 and the National
Affordable Housing Act, as amended, govern the administration of CDBG and HOME
funding and require participating jurisdictions to certify that they will affirmatively further fair
housing.
In order to uphold its commitment to affirmatively further fair housing and meet its federal
obligation to engage in fair housing planning, Eugene and Springfield have collaborated on
Attachment 2-6
FY2013/14 One-Year Action Plan 7
an “Assessment of the Impediments to Fair Housing and Fair Housing Plan Strategies” that
identifies road blocks or “impediments” that affect fair housing choice.
In addition to the issues and actions that are described in the Eugene-Springfield Fair Housing
Plan, the following are some of the strategies and programs that the City of Springfield is
using to affirmatively further fair housing:
Continue to identify areas in Springfield’s Land Use Policies that may unintentionally restrict,
inhibit or otherwise impede the development of affordable housing - A primary goal of the
federal Fair Housing Act and its amendments is to provide housing choice for everyone;
everyone should be able to live where they choose, if they can find housing in the area of
their preference that they can afford. The 2010 Eugene-Springfield Fair Housing Plan
identified a number of impediments to Fair Housing, including several that can be addressed
in part through land use policies, such as: an inadequate supply of affordable housing;
market conditions that increase housing cost or decrease housing choice; and that suitable
sites for future affordable housing construction can be difficult to find, expensive to acquire,
and may have constraints that limit development opportunities. Because economic needs,
regional and local demographics, technological advancements, and other factors that
affect housing development are ever changing, evaluation of and development of
measures to address land use impediments to housing choice and affordability are ongoing
activities at the City of Springfield.
Specific policies were incorporated in the Residential Land Use and Housing Element of the
Springfield 2030 Refinement Plan to ensure that residential development will occur with
housing types, mixes, and densities sufficient to accommodate the City’s projected 20-year
housing needs. This document includes policies to plan for growth and needed housing; to
foster housing choice and affordability; and to encourage housing diversity and quality
neighborhoods. Implementation of these policies includes actions that will, in part, address
some of the aforementioned impediments to Fair Housing.
A number of these policies will be implemented through the neighborhood-specific
Glenwood Refinement Plan, which was adopted in 2012. For example, the updated
Glenwood Refinement Plan re-designates over 30 gross acres of land for high density
residential mixed use, which increases development opportunities for a diversity of quality
higher density housing types, including affordable housing, in a location served by existing
frequent transit service and with access to employment centers, shopping, and recreational
opportunities. The Glenwood Refinement Plan also includes policies developed to
encourage and facilitate the development of high density housing in this mixed use transit
oriented development area, including increasing the density minimum, allowing for density
averaging on development sites, eliminating density maximums, increasing building heights,
and providing financial incentives for the development of new high-density housing units
through local, state, and federally-funded housing and community development programs.
In addition, transportation policies and associated development and design standards seek
ways to reduce development impediments to more efficient utilization of the residential land
supply through street widths, parking requirements, and parking management strategies.
Fair Housing Hotline - Our contract for a fair housing consultant and operator of a 24-hour fair
Attachment 2-7
FY2013/14 One-Year Action Plan 8
housing hotline is a key component in Springfield’s ongoing commitment to affirmatively
further fair housing. The fair housing consultant provides is a valuable resource to people who
feel that their rights to housing in Springfield have been violated. The consultant is also a
valuable resource for property managers and landlords whether or not they are the focus of
fair housing complaints. The fair housing consultant is able to educate and train them in the
current state of fair housing law, answer questions they may have regarding their
enforcement and eviction practices, and mediate tenant landlord disputes. By providing
timely and accurate information to tenants, landlords, and property managers, the
consultant is able to assist in the resolution of many housing related complaints, before they
escalate. The City of Springfield’s AI states under “Rental Practices” that the lack of fair
housing training being provided to rental managers and landlords may contribute to the
higher incidents of complaints in the rental market (relative to the ownership market). Our
contract with the fair housing consultant addresses this impediment, and supports
Springfield’s certification to affirmatively further fair housing. The City of Springfield is
contracting with the Fair Housing Council of Oregon to provide these services for FY2012/13.
Emergency Rental Assistance – In response to requests and queries from area housing
providers, the City of Springfield designed and implemented the Emergency Rental
Assistance Program (ERAP) in 2003. The providers identified a need for one-time assistance to
help households who are facing eviction for non-payment of rent, due to extraordinary or
catastrophic circumstances. The program will pay 60% of the past-due rent (up to $400).
Strict programmatic requirements help to ensure that assistance is provided where the need
is greatest, and where the probability of long-term benefit is evident. By curing evictions and
helping people remain in their homes, this activity supports the City of Springfield’s
certification to affirmatively further fair housing. This program is being suspended in FY13 as a
result of the drastic reduction of CDBG funding.
Springfield Home Ownership Program - The City of Springfield continues to administer the very
successful Springfield Homeownership Program (SHOP). The SHOP provides downpayment
assistance for low-and very low-income households. SHOP brochures and posters have been
printed in both English and Spanish language versions. The cities of Eugene and Springfield
combine efforts to provide ongoing lender and realtor training. In addition Springfield staff
avail themselves regularly to agencies and organizations to provide SHOP training to their
employees, associates and clients. Springfield staff continues to work to build relationships
with lenders and realtors to increase outreach to the Hispanic population.
Housing for Special Needs Populations - The Springfield City Council continues to support the
development of housing to meet the needs of developmentally disabled, physically disabled
and aging populations. The recently constructed Afiya Apartments are located at 10th
Street
and Main Street and provides affordable service enriched housing for adults with
developmental and psychiatric disabilities. Alvord Taylor Supported Living has used an
allocation of FY12 HOME funds to renovate a home for adults with developmental as well as
severe physical disabilities. And the Aster Apartments were recently completed with the
Attachment 2-8
FY2013/14 One-Year Action Plan 9
assistance of Springfield HOME funds, and now provides safe and affordable housing for
seniors. These are a few of the many ways that the City is working to increase and diversify
affordable housing opportunities as a way to affirmatively further fair housing in Springfield.
Language as an Impediment to Fair Housing – The City of Springfield has taken great strides to
mitigate the impact of language as an impediment to fair housing opportunities. The City’s
Housing Planner is fluent in Spanish and will be available to interpret for clients and translate
related housing documents. In addition, all of the various housing program brochures have
been printed in Spanish, and several employees who work in City Hall are bi-lingual and bi-
cultural and are available to assist with client communication. As mentioned earlier, the City
also sponsors the “The ABCs of Homebuying” classes in Spanish. We will continue to develop
our outreach capabilities as a means of providing fair housing opportunities. As an additional
resource, the Fair Housing Council of Oregon provides all of their hotline, information,
outreach and enforcement services in Spanish and English.
Housing Outreach - Housing Programs Staff routinely participates in many community
outreach events to inform low and moderate-income persons of the opportunities that are
available to them through the City’s housing programs. The City has been fortunate to be
able work closely with the Neighborhood Economic Development Corporation (NEDCO) in
their role as the Homeownership Center of Lane County. Located in an historic building three
blocks from City Hall, NEDCO provides a comprehensive array of services that together help
families achieve their goal of homeownership. The services include providing information on
first time homebuyer programs, providing homeownership education and counseling through
the Threshold Homeownership Education and Counseling Program and the ABC's of
Homebuying class, working with lenders and real estate professionals who have a mission to
help first time homebuyers. Through the Regional Housing Center staff has had numerous
opportunities to participate in Mortgage Broker/Lender and Realtor training as well as the
Oregon Real Estate Symposium. Most recently, NEDCO has been at the forefront with
foreclosure counseling services provided from their downtown offices. The City will continue
to partner with NEDCO to provide important and timely services to Springfield residents, and
help the community meet its diverse housing needs.
Reduction of Lead-Based Paint Hazard (CDBG and HOME
Programs)
Background
The health risks to young children posed by lead-based paint in residential dwellings remain
an important issue. Progress in research and technology during the past 25 years has
improved the understanding of how children are poisoned and our knowledge of how to
better protect them, yet lead-based paint risks to children is still a significant problem
nationally. In an effort to address this problem, HUD published its Final Rule to Title X of the
1992 Housing and Community Development Act in September 1999. This rule, referred to as
the Lead Safe Housing Regulation, requires certain prescribed actions by HUD grantees to
Attachment 2-9
FY2013/14 One-Year Action Plan 10
identify, stabilize, or remove lead-based paint hazards in housing receiving HUD assistance.
The scope of activities required by HUD is largely dependent upon the type of housing
affected and the amount of Federal assistance provided, with rehabilitation activities using
in excess of $25,000 of HUD funds requiring the highest level of treatment. Initially, all HUD
grantees were required to be in compliance with the rule by September 2000. The rule only
affects residential structures built before 1978. Currently, there is no plan for HUD or another
section of the Federal government to provide funding to jurisdictions to help pay for the cost
of implementing the lead-based paint regulations.
City Administered Housing Rehabilitation Programs
It is estimated that, in the cities of Eugene and Springfield, approximately 55,000 units of
housing were built prior to 1978, and may contain lead-based paint. This represents nearly
70% of all housing units in the metropolitan area. Since the vast majority of the homes
assisted through each City’s homeowner rehabilitation programs (including emergency
minor home repair) are in this age category, it is clear that dealing with the issue of lead-
based paint will have a significant impact on these programs. Many facets of each
jurisdiction’s housing programs will be affected:
• Costs associated with lead paint testing and treatment will increase the total costs of
many small projects, meaning either an increased budget or a reduction in the
number of units assisted.
• Temporary relocation of residents while treatment/abatement activities are taking
place will add to the project cost, and make higher demands on the assigned staff.
• Because lead-hazard abatement may be cost-prohibitive, clients are being strategic
on what they choose to repair or replace, and typically limit their requests to items
that normally will not trigger the lead paint rules. These include items such as
replacing roofing, water heaters, attic and crawlspace insulation, and electrical and
plumbing repairs when the repairs do not disturb painted surfaces.
City Administered Homeownership Programs
The homeownership downpayment assistance programs currently being administered by
each City is also affected by the Lead Safe Housing Regulation, though not to the extent of
the rehabilitation programs. Compliance means visually identifying deteriorated paint and
stabilizing the affected areas using safe work practices. The unit must then be cleared by a
certified lead-based paint inspector. Therefore, it is incumbent on the seller and listing realtor
to take the necessary steps to present a “clean” unit upon initial inspection to avoid costs
and delays associated with testing, stabilization, and clearance activities. When a home
shows visual signs of deteriorated paint surfaces, sellers and buyers often choose to forego
using the downpayment assistance programs if compliance with the lead-based paint rule is
perceived as being overly burdensome.
Attachment 2-10
FY2013/14 One-Year Action Plan 11
Non-Profit Housing Rehabilitation Projects
Acquisition and rehabilitation activities of older structures undertaken by area non-profit
housing providers receiving HUD funds must also comply with the lead-hazard rule. Since
these projects often require HUD subsidies exceeding $25,000 per unit, the cost of treating
lead-based paint may add significantly to the overall cost of the project. Additional funds
may be required to offset the increase in cost, with the probable result of fewer units being
rehabilitated. Non-profit housing providers have become acutely aware of the impacts of
the lead-hazard rule on their projects, and will typically avoid using CDBG or HOME funds to
acquire or rehabilitate a property that may have significant lead paint issues.
Other Activities
Purchase of Distressed, Undervalued or Beneficial Properties
Occasionally, the City of Springfield is made aware of an opportunity to purchase property
that is distressed or undervalued, or whose location and features are such that its acquisition
by the City may be beneficial to the community. In the past, the City could not use CDBG
and/or HOME funds to assist with the acquisition of such properties because that activity was
not included in the current Consolidated Plan. When an opportunity presented itself, the City
would, a) pass the opportunity to acquire the property on to area non-profit housing
providers, b) allow the market to determine the property’s disposition, or c) in the case of
distressed properties, let the property lapse into foreclosure. With the rapid increase of land
values in Springfield, the City may want to consider acquiring such properties with HOME or
CDBG funds, and make them available in the future for purchase and/or development of an
eligible project that would benefit the Springfield community. Examples of how this provision
could be used:
• Purchase of residential properties prior to foreclosure to be made available for
affordable homeownership housing.
• Purchase of vacant land for future use as affordable housing or neighborhood
development.
• Purchase of distressed downtown properties for redevelopment.
• Purchase of properties in Glenwood for redevelopment.
Approval by the City Council will be required prior to acquiring any properties. Due to the
scarcity of available CDBG and HOME funds, it is anticipated that this provision will be used
very sparingly. However, inclusion of this provision in the Five-year Consolidated Plan is
Attachment 2-11
FY2013/14 One-Year Action Plan 12
necessary in order for the City to consider acquisition with CDBG or HOME funds as an
option.
Relocation Assistance
At a work session on April 21, 2008, the Springfield City Council directed staff to investigate
the viability of using CDBG and HOME funds to provide limited relocation assistance to
mobile home park residents facing forced eviction. Although there are currently no plans for
any mobile home park closures in Springfield, the growth and redevelopment of much of the
urban core of the city seems to make MH park closures a certainty in the future. The Council
felt that it is in the community’s best interest to begin discussing and analyzing the options
and resources available. Under most circumstances relocation assistance by the City will be
provided on a voluntary basis, and not as a required action under the Uniform Relocation
Act, CDBG or HOME statutes. This activity was included in the FY2010 One-year Action Plan
as an amendment to the current Consolidated Plan. It is unclear how and in what capacity
CDBG and/or HOME funds will be used to assist with relocation, but general relocation
assistance as a possible activity will continue to be included in the Consolidated Plan.
Contingency Funding and Contract Amendments
It is the nature of CDBG and HOME projects that funding usually comes from a variety of
different sources having different requirements. CDBG and HOME funds are often used as
leverage by project developers to secure additional funding from foundations, state and
local programs and from private donors. CDBG and HOME funds may be one of the earliest
funding commitments for projects, and the amounts and terms of these commitments may
need to be modified from time to time as the project evolves. Contingency funding during
project development and contract amendments during the operating cycle are ways that
help to ensure continued public benefit for CDBG and HOME projects. Contingency funding
allows the City to invest additional funds into a developing project without the requirement
of a full public process, as long as the amount does not exceed 30% of the original
allocation. This method is generally preferred over adding a contingency amount at the
front end of project development because it doesn’t tie up CDBG or HOME funds
unnecessarily. Contingency funding is reported in IDIS and is reflected in the Consolidated
Annual Performance and Evaluation Report (CAPER).
Although regulations allow CDBG and HOME allocations to be outright grants to eligible
projects, the City of Springfield has taken a more individualized approach and creates its
CDBG and HOME contracts to fit the needs of the particular project. When proforma
operating budgets suggest that projected cash flows will support a loan, funds are loaned
instead of granted. Particularly with HOME projects where housing affordability is the
primary goal, conditions may occur that make it difficult or impossible for a project to make
its HOME loan payments as stipulated in the contract. Allowing staff to amend the terms
and/or conditions of the contract to meet the needs of the project will help affordable
housing providers stay in compliance with federal affordability requirements. In doing so,
projects are able to provide continued public benefit. This is also pertinent to CDBG Business
Development Loans, which is a new program that the City started this fiscal year. All
Attachment 2-12
FY2013/14 One-Year Action Plan 13
amendments to CDBG or HOME contracts shall maintain compliance with CDBG or HOME
programmatic requirements.
Downtown Redevelopment Area
With the designation of the Springfield Downtown Redevelopment Area in 2004, the City of
Springfield took a major step toward reversing the decades of disinvestment and decay that
has plagued the city’s central business area. The City Council has committed CDBG funds to
assist two capital projects in the downtown core, and identified a third project for future
CDBG funding. These projects are described in the section “Activities for the Prevention or
Elimination of Slum and Blighted Conditions”.
Monitoring
CDBG-funded projects meeting the Low and Moderate Income benefit (LMI) national
objective must either serve a specific low-income area or target population. Individuals
participating in a CDBG-funded program or receiving direct benefit from CDBG funded
activities are required to meet HUD income guidelines. Funded programs and projects
undergo regular monitoring by staff to ensure compliance with CDBG regulations.
Attachment 2-13
FY2013/14 One-Year Action Plan 14
Five-Year Goals
Performance goals are established for Springfield over the five-year period covered by the
2010 Consolidated Plan. Actual outcomes will be compared to the annual and 5-year goals
and will be reported in the Consolidated Annual Performance and Evaluation Report.
Subrecipient Monitoring
Local non-profit social service providers sign contracts that set goals, scope of work, and
identify the budget for use of CDBG funds. These contracts are administered by Lane County.
Quarterly progress reports are submitted. Annually, staff from the Cities of Springfield and
Eugene and staff from Lane County conduct a “risk assessment” of each agency’s
performance. A letter is then sent to the agency with any follow-up issues or concerns. These
issues are addressed in an on-site follow-up monitoring of selected agencies. For other sub-
recipients, City staff reviews the status of the contract regularly and works directly with the
agency to review compliance.
City Single Audit
The City of Springfield’s external auditors annually review the City’s federal grants, including
CDBG.
Project Management
CDBG and HOME projects are managed by City staff trained in federal grant administration.
Compliance with federal, state and local regulations is monitored throughout the
implementation period. Project contracts include a scope of work, timeline, budget and all
regulatory requirements (use of minority business enterprises, environmental requirements,
mitigation efforts, record keeping, etc.).
Summary of Other Resources
The following is a list of Federal and non- federal public and private funding sources which
can reasonably be expected to be available for project development (the City of
Springfield does not receive Section 8 funds or McKinney-Vento Homeless Assistance
program funds):
• Oregon Housing Trust Fund. Administered by the State of Oregon. Eligible activities
include acquisition, construction and rehabilitation, and pre-development costs
associated with low- and moderate-income housing development. The full amount of
Oregon Trust Funds invested into the project is eligible as HOME match.
• Oregon Affordable Housing Tax Credit Program. Formerly called the Oregon Lender’s
Tax Credit Program; administered by the State of Oregon; provides below-market
Attachment 2-14
FY2013/14 One-Year Action Plan 15
interest rates for low- and moderate-income housing projects. Maximum interest rate
reduction is 4% below market, for a maximum term of twenty years. HOME match is
calculated by applying the present discounted cash value to the total yield forgone
by the lender.
• Economic Development Initiative (EDI) Special Projects Grants. The City of Springfield
has been successful in the past in securing EDI grants for downtown redevelopment.
EDI grants are project-specific awards by HUD to support and stimulate economic
development. The Wildish Community Theater was the most recent recipient of an
EDI-Special Projects grant from HUD. Although Congress did not provide funding for
the EDI program in the Federal FY12 budget, it is likely that the EDI program may be
resurrected in future budget years.
• Low-Income Housing Tax Credits (LIHTC). This is a federal program that can provide
large infusions of capital to affordable housing projects. Tax credits are awarded to a
project over a 10 year period. These tax credits are then sold or “syndicated” to
private businesses or organizations at less than face value to offset their tax liability.
The Royal Building project is the most recent recipient of an LIHTC award.
• Section 108 Loan Program. Springfield received its first Section 108 loan in 2009. The
loan of $450,000 was to assist NEDCO with the purchase of a downtown building in
which to relocate their offices and classroom. The historic building also includes 4
residential rental units on the second floor and a ground floor retail space on Main
Street. Section 108 funds are treated as CDBG funds, and projects are subject to the
same national objectives and eligibility requirements.
• Volunteer Labor. Area non-profit housing developers have been successful in utilizing
volunteer labor in their developments. The Lane Community College Construction
Technologies Department has contributed student labor for all phases of housing
development. Architects, attorneys, and other professionals have also contributed
their services to non-profit housing developments in Springfield. Volunteer labor is
eligible as HOME match and is calculated at a flat rate of $10.00 per hour.
• State Loan Guarantee Program. Although this is not a “true source” of funds, this
program serves to enhance a loan by providing a warranty as security for up to 25% of
the loan value. Used as a tool by housing developers, it can allow lenders to increase
their loan amount, and/or decrease the interest rate of the loan at little or no
additional risk to the lender. Not eligible for HOME match.
• Property Tax Exemptions. Exemptions from City property taxes have been allowed for
qualified non-profit housing developers on a project-by-project basis to low- and
moderate-income housing developments. Generally based on the benefits provided
to the community and the duration of the low- and moderate-income housing
Attachment 2-15
FY2013/14 One-Year Action Plan 16
commitment, property tax exemptions are eligible as HOME match. The amount of
match credit is calculated as the current discounted cash value of the tax exemption.
• Vertical Housing Development Zone Tax Exemption. In October 2004, the City of
Springfield received a Vertical Housing Development Zone (VHDZ) designation from
the State of Oregon. The VHDZ program allows partial property tax exemption for
qualified new housing that is built over street level commercial space. An eligible
project can receive 20% of tax exemption per floor of housing up to a total of 80%.
This program can provide valuable incentives to develop new housing in Springfield’s
downtown corridor, which in turn will help support commercial growth and
revitalization activities.
• Private Contributions. Cash and materials have been contributed in the past by
private businesses, corporations, and foundations to assist in the development of low-
income housing in Springfield. It is expected that future contributions from private
sources will continue to provide needed assistance. Private contributions are eligible
as HOME match.
Five CDBG projects, grant administration, Human Services Commission and housing program
allocations were approved for funding at a public hearing before the Springfield City Council
on April 15, 2013 and are included in this One-Year Action Plan. A table of Springfield’s CDBG
activities and programs, and summary descriptions of Springfield’s approved CDBG projects
follow this narrative section.
Attachment 2-16
FY2013/14 One-Year Action Plan 17
City of Springfield
FY2013/14 CDBG Funding Allocations
Funding Amounts:
New Grant Funds $429,897
Prior Years $ 0
TOTAL AVAILABLE $429,897
Applicant
Project
Amount
New
Funds
Prior
Years
Catholic Community
Services
Renovation of the Springfield
Community Service Center and parking
lot
$17,500 $0
Springfield Economic
Development
Corporation
Purchase of downtown property for
future development of downtown Mill
Plaza
$50,000 $0
HACSA, Metropolitan
Affordable Housing
Acquisition and development of
Glenwood Place mixed-use
development
$81,580 $0
NEDCO, Hatch
Microbusiness assistance for 20 low-
income Springfield businesses through
the Hatch Business Incubator Program.
$30,000
$0
NEDCO, Sprout! Exterior improvements to Sprout!
Regional Food Hub $20,353 $0
City Housing Programs $80,000 $0
Human Services Commission $64,485 $0
Grant Administration $85,979 $0
Unallocated funds $0 $0
GRAND TOTAL $429,897 $0
Attachment 2-17
FY2013/14 One-Year Action Plan 18
City of Springfield
Summary of FY2013/14 CDBG Proposals and Approved
Funding Amounts
1. Project: Springfield Service Center Renovation
Location: 1025 G Street, Springfield
Developer: Catholic Community Services
Approved: $17,500 CDBG Grant
Total Proj. Cost: $165,000
Catholic Community Services is receiving $17,500 of CDBG funds to assist with the renovation
of the Springfield Community Service Center at 1025 G Street. Renovation activities include
the intake, waiting and resource distribution areas, and the replacing the deteriorated
parking lot.
The Springfield Community Service Center is the largest distributor of emergency food in
Springfield. Approximately 375 tons of food was dispensed last year, serving more than
12,000 individuals. Persons in need may also receive clothing, hygiene and household items,
assistance with utility bills, bus passes and other necessary assistance. The center hosts the
Soaring Hope meal program and day center for homeless persons and families. It is also one
of two Springfield sites for the Egan Warming Centers.
2. Project: Acquisition of Downtown Property (Mill Plaza)
Location: 138 Main Street, Springfield
Developer: Springfield Economic Development Corporation
Approved: $50,000 CDBG Loan
Total Proj. Cost: $750,000
The Springfield Economic Development Corporation (SEDA) is receiving $50,000 of CDBG to
assist with the acquisition of a downtown property at 138 Main Street. The property is at the
location of the planned downtown Mill Plaza, this acquisition is consistent with the adopted
Downtown Urban Design Plan. There is a commercial building currently on the site, occupied
by two commercial tenants. There are no residential units on the site. Although development
of the Mill Plaza will not occur for several years, the opportunity to purchase this key piece of
property is immediate. Upon acquisition, SEDA and the City will partner to manage and
operate the building with no anticipated changes in use. Current tenants will be allowed to
continue their current lease arrangements. As other adjacent properties are acquired and
redeveloped over the next several years, SEDA will make plans to clear and redevelop the
site as a public plaza. Relocation assistance, if necessary, will be provided to the
commercial tenants prior to redevelopment.
Attachment 2-18
FY2013/14 One-Year Action Plan 19
The Mill Plaza is envisioned as the City’s “living room”, creating the needed civic gathering
place identified in the Urban Design Plan. It is considered a catalyst project, and an
important step in the redevelopment of downtown as a whole.
SEDA is a government agency and was created in 2004 by the City of Springfield and Lane
County, for the purpose of eliminating blight in areas within the Agency’s jurisdiction in ways
which will foster a business climate, improve quality of life and encourage private investment
in our community. This is SEDA’s first CDBG application.
3. Project: Glenwood Place Mixed-Use Development
Location: 4224 Franklin Blvd., Glenwood
Developer: Housing and Community Services Agency of Lane County
Approved: $81,580 CDBG Grant
Total Proj. Cost: $22,665,550
HACSA, in partnership with Metropolitan Affordable Housing is receiving $81,580 of CDBG
and $210,170 of HOME funds to support the development of Glenwood Place, a multi-family
mixed used development located in Glenwood. When completed, the development will
consist of 149 affordable workforce housing units and ground floor commercial space
fronting Franklin Blvd. Glenwood is located in a transit-rich area, positioned between Eugene
and Springfield, with easy access to the U of O, LCC, Peace Health Medical Center, and
both downtowns.
The workforce housing within the development will consist of studio, one-bedroom and two-
bedroom apartments set at rent levels affordable to individuals and families earning 30-60%
of median area income. The development will include community spaces and meeting
rooms, open areas, and parking for the commercial and residential tenants. The
development will be a catalyst for new economic activity along the Franklin Blvd. corridor,
and is consistent with the goals of the Glenwood Refinement Plan.
If awarded, these funds may not be used by the developers until the site has received
environmental clearance, and has been annexed to the City of Springfield. The annexation
process has been initiated. HACSA received a HOME grant of $96,500 in FY2012 for
predevelopment costs associated with Glenwood Place.
4. Project: Hatch Microenterprise Development Program
Locations: 418 A St., 216 Main St., 1488 18th
St., Springfield
Developer: Neighborhood Economic Development Corp.
Approved: $30,000 CDBG Grant
Total Proj. Cost: $190,505
NEDCO is receiving $30,000 in CDBG funding to assist 20 low-income Springfield microbusiness
owners through their Hatch Business Incubator: Microenterprise Development Program.
Attachment 2-19
FY2013/14 One-Year Action Plan 20
CDBG funds will be used to offer direct scholarships that will offset the $1,800 annual
subscription cost to the clients for participation and to build program capacity. The services
provided to Hatch participants include on-site and off-site technical small business
assistance, classes and workshops, and a series of entrepreneurial boot camps directed at
specific industry clusters including food and social enterprise. Hatch Business Incubator sites
are located at the NEDCO building on Main Street, at the SPROUT! Regional Food Hub and
at 18th
Street and Mohawk Blvd.
Hatch serves three levels of business from concept to established and growing businesses:
Activator (pre-launch phase); Incubator (operating business); and Accelerator (established
businesses). An extensive menu of services which includes training, financial assistance,
networking and access to physical infrastructure has been developed for each level. Hatch
generates positive economic activity, especially in downtown Springfield. Hatch is based on
proven microenterprise and community development principles wherein businesses receiving
services gain skills not only to build their own business, but to reinvest in their community.
NEDCO has received past CDBG funding for Hatch in 2009, 2010 and 2012.
5. Project: Marketplace@Sprout! Exterior Improvements
Location: 418 A Street, Springfield
Developer: NEDCO
Approved: $20,353 CDBG Grant
Total Proj. Cost: $80,000
The Neighborhood Economic Development Corporation (NEDCO) is receiving $20,353 of
CDBG funds to assist with Phase 3 of the Sprout! Regional Food Hub project, which consists of
improvements to the grounds and exterior of the Sprout! facility to allow it to better function
as an outdoor marketplace and home of the seasonal Springfield Farmers’ Market . The
food hub is located in the former Springfield Christian Church at 4th
and A Streets in
downtown Springfield. Food entrepreneurs and micro-businesses have access to the fully
equipped commercial kitchen to prepare their wares and build their businesses. The CDBG
funds will provide durable hardscaping, way finding components, and functional
landscaping to allow the seasonal market to generate high levels of attendance.
The Sprout! food hub received $153,577 in CDBG funding for acquisition of the site in 2011,
and $58,000 of CDBG in 2012 to assist with the purchase of commercial kitchen equipment.
Attachment 2-20
FY2013/14 One-Year Action Plan 21
City of Springfield
One-Year Action Plan for FY2013/14
HOME Investment Partnerships Program
Description
HOME Investment Partnerships Program (HOME) funds are received from the U.S. Department
of Housing and Urban Development (HUD) and administered by the Eugene-Springfield
Consortium for the metropolitan area. The primary purpose of the HOME program is to
expand the supply of decent, safe, sanitary, and affordable housing, with primary attention
to rental housing, for low- and moderate-income families. HOME funds can be used for new
construction or rehabilitation of housing projects which will be affordable to low- and
moderate-income households, for the acquisition of eligible properties by for-profit and non-
profit developers, for tenant-based rental assistance programs, and for first-time homebuyer
programs. HOME funds can be provided to the project as a grant or as a loan, and the loan
can be set up in various ways; low- or no interest, amortized, deferred or forgiven according
to the needs of the project. Springfield’s Fiscal Year 2013/2014 (FY2013/14) allocation of
HOME funds will be $279,910. This is a marked reduction from previous allocations, and
continues a downward trend in federal grant funding for the city. When HUD informs the City
of its actual FY2013/14 HOME allocation, project allocations will be adjusted as necessary.
The HOME Agreement is a document entered into by the City of Springfield and the recipient
of HOME funds. The Agreement fixes the amount of the allocation, determines the terms of
repayment, defines the performance and monitoring parameters of the project, and certifies
acceptance and compliance with all applicable Federal, State, and local regulations.
Attachments to the HOME Agreement include a statement of work, HOME affordability
requirements, recipient's certification of governmental assistance, a Declaration of Restrictive
Covenants and the HOME Allocation Agreement, which determines the allocation of
proceeds from the sale of a HOME-assisted project, should the sale occur prior to the
expiration of the mandatory compliance period.
A Community Housing Development Organization (CHDO) is a special designation given to
non-profit housing developers that meet certain specific requirements pertaining to the
formation and stated purpose of the non-profit. A CHDO must have among its purposes the
provision of decent housing that is affordable to low- and moderate-income persons. In
addition, a CHDO must have representation of low-income community residents on its
governing board and must have a defined geographic service area. The complete
definition can be found in 24 CFR §92.2. A minimum of 15% of the HOME funds must be
reserved for use by CHDOs.
The Community Development Advisory Committee (CDAC) was established by the City of
Springfield to make recommendations concerning program policy and project selection to
Attachment 2-21
FY2013/14 One-Year Action Plan 22
the City Council. The goals of the committee are: 1) To allocate HOME funds in a manner
which will serve to expand and preserve the supply of decent, safe and affordable housing
for low- and moderate-income residents of Springfield, and 2) To ensure the long term
viability of Springfield’s Housing Programs through the efficient use, and return of investment
of HOME funds. It is the City’s preference to award HOME funds as a loan, with interest rates
and repayment provisions matched closely with the needs of each individual project.
Other Resources
The following is a list of non-federal public and private funding sources which can reasonably
be expected to be available for project development:
• Oregon Housing Trust Fund. Administered by the State of Oregon. Eligible activities
include acquisition, construction and rehabilitation, and pre-development costs
associated with low- and moderate-income housing development. The full amount of
Oregon Trust Funds invested into the project is eligible as HOME match.
• Oregon Affordable Housing Tax Credit Program. Formerly called the Oregon Lender’s
Tax Credit Program; administered by the State of Oregon; provides below-market
interest rates for low- and moderate-income housing projects. Maximum interest rate
reduction is 4% below market, for a maximum term of twenty years. HOME match is
calculated by applying the present discounted cash value to the total yield forgone
by the lender.
• Volunteer Labor. Area non-profit housing developers have been successful in utilizing
volunteer labor in their developments. The Lane Community College Construction
Technologies Department has contributed student labor for all phases of housing
development. Architects, attorneys, and other professionals have also contributed
their services to non-profit housing developments in Springfield. Volunteer labor is
eligible as HOME match and is calculated at a flat rate of $10.00 per hour.
• State Loan Guarantee Program. Although this is not a “true source” of funds, this
program serves to enhance a loan by providing a warranty as security for up to 25% of
the loan value. Used as a tool by housing developers, it can allow lenders to increase
their loan amount, and/or decrease the interest rate of the loan at little or no
additional risk to the lender. Not eligible for HOME match.
• Property Tax Exemptions. Exemptions from City property taxes have been allowed for
qualified non-profit housing developers on a project-by-project basis to low- and
moderate-income housing developments. Generally based on the benefits provided
to the community and the duration of the low- and moderate-income housing
commitment, property tax exemptions are eligible as HOME match. The amount of
match credit is calculated as the current discounted cash value of the tax exemption.
Attachment 2-22
FY2013/14 One-Year Action Plan 23
• Vertical Housing Development Zone Tax Exemption. In October 2004, the City of
Springfield received a Vertical Housing Development Zone (VHDZ) designation from
the State of Oregon. The VHDZ program allows partial property tax exemption for
qualified new housing that is built over street level commercial space. An eligible
project can receive 20% of tax exemption per floor of housing, up to a total of 80%.
This program can provide valuable incentives to develop new housing in Springfield’s
downtown corridor, which in turn will help support commercial growth and
revitalization activities.
• Private Contributions. Cash and materials have been contributed in the past by
private businesses, corporations, and foundations to assist in the development of low-
income housing in Springfield. It is expected that future contributions from private
sources will continue to provide needed assistance. Private contributions are eligible
as HOME match.
Leveraging Federal Funds
The City of Springfield allocates HOME funds through a competitive Request for Proposal
(RFP) process. The current housing and supportive services needs of the city are outlined in
the RFP packet. Housing activities are categorized and prioritized by community need and
fund allotments are made by category. Also outlined in the packet are the City’s criteria for
ranking projects. One criterion is efficiency of use of Federal funds, which can be
demonstrated by documenting the status and maximizing the amount of other funding
sources. Thus, the most competitive projects will have maximized the funds leveraged by
Federal dollars. The City has not had to impose any threshold percentages for leveraged or
matched funds; the RFP process has been self-regulating in this respect. The City of
Springfield tracks HOME matching contributions on a continual basis to ensure compliance
with applicable HOME program regulations, which requires a minimum 25% matching
contribution.
• Low-Income Housing Tax Credits (LIHTC). This is a federal program that can provide
large infusions of capital to affordable housing projects. Tax credits are awarded to a
project over a 10 year period. These tax credits are then sold or “syndicated” to
private businesses or organizations at less than face value to offset their tax liability.
The Royal Building project is the most recent recipient of an LIHTC award.
The Springfield HOME Agreement contains a Subsidy Layering Certification which identifies all
sources of project funding. If additional Federal funds are being utilized or applied for, the
HOME recipient is required to notify the City. This allows the City to monitor all current and
future sources of funds, and to evaluate the project’s need for HOME funds. The City will
conduct an additional review of subsidy layering at the time that the HOME agreement is
put in to place. The City will only contribute HOME funds to projects in the amount that is
necessary to provide affordable housing.
HOME Assisted Housing Activities
Attachment 2-23
FY2013/14 One-Year Action Plan 24
• Glenwood Place is a mixed-use development proposed by HACSA in partnership with
Metropolitan Affordable Housing. The development will be located in Glenwood, on
property that is being annexed to the City of Springfield. When completed, Glenwood
Place will provide 150 units of affordable workforce housing and a commercial
component fronting Franklin Blvd. HACSA will be receiving approximately $210,170 of
HOME funds for development of the housing component. The project has also been
allocated approximately $81,580 of CDBG funds to assist with the acquisition and
development of the commercial portion of the project. When completed, the
workforce housing within the development will consist of studio, one-bedroom and
two-bedroom apartments set at rent levels affordable to individuals and families
earning 30-60% of median area income. The development will also include
community spaces and meeting rooms, open areas, and parking for the commercial
and residential tenants.
Glenwood is located in a transit-rich area, positioned between Eugene and
Springfield, with easy access to the U of O, LCC, Peace Health Medical Center, and
both downtowns. The development will be a catalyst for new economic activity
along the Franklin Blvd. corridor, and is consistent with the goals of the Glenwood
Refinement Plan. HACSA received a HOME grant of $96,500 in FY2012 for
predevelopment costs associated with Glenwood Place.
• Habitat for Humanity R Street Subdivision. The Springfield-Eugene chapter of Habitat
for Humanity (HfH) will receive approximately $30,250 of HOME funds to assist with
infrastructure development on a site the agency owns on R Street in Springfield. When
completed, the project will consist of seven single-family homes that will provide
affordable homeownership opportunities for low and very low-income households.
HfH uses a successful national model of homeownership development, utilizing
volunteer labor and donations to reduce the cost of homeownership. Prospective HfH
homeowners must contribute a proportional amount of sweat equity as part of the
selection and qualification process.
HfH is nearing completion of the Meyer Estates subdivision, which received HOME
funding in previous years.
HOME Funded Housing Programs
• The Springfield Home Ownership Program (SHOP) provides downpayment assistance
to low-income first-time homebuyers. The maximum SHOP assistance was reduced last
year from $10,000 to a maximum of $7,000 per home. This reduction is in response to
the overall reduction of funding to the HOME program, and the acknowledgement
that current interest rates and the slowly recovering housing market in the area has
made home ownership more affordable. The SHOP funds are to be used by the buyer
to assist with downpayment and associated closing costs. Demand for SHOP
assistance was moderately-high in FY12 and the program is expected to fully expend
its available funds before the end of the fiscal year, assisting 14 first-time homebuyers.
Some of this increased demand can be attributed to falling home prices and lowered
Attachment 2-24
FY2013/14 One-Year Action Plan 25
interest rates resulting from the current economic crisis. Although lending has
tightened significantly, people are finding homes more affordable than in recent
years. We expect demand for the program to remain high in FY13, and with the
reduction to the HOME allocation, the city anticipates that SHOP funding will again be
fully expended before the end of the fiscal year. Since its inception, the SHOP has
helped approximately 545 first time homebuyers purchase homes in Springfield.
Other Activities
• HOME Funds for Interim Financing. The City of Springfield has successfully utilized
HOME funds for short term, interim financing of HOME eligible projects. Interim
financing takes advantage of HOME funds which have been awarded to a project,
but have not yet been expended for that purpose. These funds can be used for
bridge, construction or other short term financing needs of other projects. The
developer who applies for HOME interim financing must provide documentation of
sufficient backup financing, and must sign a loan agreement that provides for
immediate repayment of the HOME funds when requested by the City. Because of
the immediacy of the need for interim financing, application for the funds is a non-
competitive, administrative review process. Utilizing HOME funds for interim financing
of projects multiplies the community benefit of the HOME program.
• Purchase of Distressed, Undervalued or Beneficial Properties. With the rapid increase
of land values in Springfield, the City may want to consider acquiring such properties
with HOME or CDBG funds, and make them available in the future for purchase
and/or development of an eligible project that would benefit the Springfield
community. Inclusion of this provision in the five-year Consolidated Plan is necessary in
order for the City to consider acquisition with CDBG or HOME funds as an option. (See
“Activities to be Undertaken” in the Springfield CDBG Section for an expanded
narrative)
• Relocation Assistance. At a work session on April 21, 2008, the Springfield City Council
directed staff to investigate the viability of using CDBG and HOME funds to provide
limited relocation assistance to mobile home park residents facing forced eviction.
Although there are currently no plans for any mobile home park closures in Springfield,
the growth and redevelopment of much of the urban core of the city seems to make
MH park closures a certainty in the future. The Council felt that it is in the community’s
best interest to begin discussing and analyzing the options and resources available.
Under most circumstances relocation assistance by the City will be provided on a
voluntary basis, and not as a required action under the Uniform Relocation Act, CDBG
or HOME statutes. This activity was included in the FY2010 One-year Action Plan as an
amendment to the current Consolidated Plan. It is unclear how and in what capacity
CDBG and/or HOME funds will be used to assist with relocation, but general relocation
assistance as a possible activity will continue to be included in the Consolidated Plan.
Attachment 2-25
FY2013/14 One-Year Action Plan 26
• Contingency Funding and Contract Amendments. It is the nature of CDBG and HOME
projects that funding usually comes from a variety of different sources having different
requirements. CDBG and HOME funds are often used as leverage by project
developers to secure additional funding from foundations, state and local programs
and from private donors. CDBG and HOME funds may be one of the earliest funding
commitments for projects, and the amounts and terms of these commitments may
need to be modified from time to time as the project evolves. Contingency funding
during project development and contract amendments during the operating cycle
are ways that help to ensure continued public benefit for CDBG and HOME projects.
Contingency funding allows the City to invest additional funds into a developing
project without the requirement of a full public process, as long as the amount does
not exceed 30% of the original allocation. This method is generally preferred over
adding a contingency amount at the front end of project development because it
doesn’t tie up CDBG or HOME funds unnecessarily. Contingency funding is reported in
IDIS and is reflected in the Consolidated Annual Performance and Evaluation Report
(CAPER).
Although regulations allow CDBG and HOME allocations to be outright grants to
eligible projects, the City of Springfield has taken a more individualized approach and
creates its CDBG and HOME contracts to fit the needs of the particular project. When
proforma operating budgets suggest that projected cash flows will support a loan,
funds are loaned instead of granted. Particularly with HOME projects where housing
affordability is the primary goal, conditions may occur that make it difficult or
impossible for a project to make its HOME loan payments as stipulated in the contract.
Allowing staff to amend the terms and/or conditions of the contract to meet the
needs of the project will help affordable housing providers stay in compliance with
federal affordability requirements. In doing so, projects are able to provide continued
public benefit. This is also pertinent to CDBG Business Development Loans, which is a
new program that the City started this fiscal year. All amendments to CDBG or HOME
contracts shall maintain compliance with CDBG or HOME programmatic
requirements.
Geographic Distribution
A dwelling must be located within Springfield’s city limits in order to be eligible for assistance
through the City’s housing programs. Proposed housing development projects must be
located within Springfield’s Urban Growth Boundary (UGB) to be considered for funding, and
the project site must be annexed into the city limits before HOME funds may be expended
for site development.
With the designation of the Downtown Redevelopment Area, the Springfield City Council
and local business leaders have made redevelopment of the core downtown area a priority.
Creating a place where people work and live is vital to maintaining a thriving downtown.
Attachment 2-26
FY2013/14 One-Year Action Plan 27
Minority Concentrations
New data from the 2010 Census has identified five census tracts with the highest reported
percentage of Hispanic or Latino persons and five census tracts with the highest reported
percentage of non-white persons. Cross-referencing this information, three census tracts in
the City of Springfield have been identified that exhibit both high Hispanic and high minority
populations, relative to the other census tracts. Census Tract 19.02 is located in mid-
Springfield. Its boundaries are roughly described by I-105 on the north, 42nd
Street on the
east, the Union Pacific RR tracks on the south and 28th
Street on the west. This census tract
reports 11.84% Hispanic and 6.90% non-white. Census Tract 21.01 is in north Springfield. Its
boundaries are roughly described by the UGB on the north, 5th
Street on the east, I-105 on the
south and MLK Blvd. on the west. This census tract reports 12.30% Hispanic and 8.10% non-
white. Census Tract 32.01 is located on the western edge of Springfield. Its boundaries are
roughly described by I-105 on the north, Pioneer Parkway on the east, Centennial Blvd. on
the south and I-5 on the west. This census tract reports 12.0% Hispanic and 6.90% non-white.
The data also shows that Census Tract 33.01 located in mid-Springfield has the second
highest percentage (12.27%) of Hispanic persons while reporting a non-white percentage of
6.47%, and that Census Tract 21.02 located in west Springfield has the highest reported non-
white percentage (8.91%), while reporting a Hispanic percentage of 11.42%.
Homeless and Special Needs Activities
The City of Springfield plans to continue to provide support for homeless and special needs
activities through the utilization of HOME program funding.
Current and past HOME projects that serve this diverse target population are:
• Permanent and transitional housing units for low and very low-income individuals.
• Transitional housing for homeless families.
• Group homes for developmentally disabled persons.
• Security deposit assistance for homeless and at-risk households.
• Service enriched rental housing for special needs individuals, including low-income
seniors and developmentally disabled adults.
• Emergency rental assistance for very low-income households.
• Dedicated housing for low-income seniors
The Consortium provides CHDO operating assistance for local non-profit agencies, two of
which serve homeless populations in Springfield through counseling, case management, and
other services.
Attachment 2-27
FY2013/14 One-Year Action Plan 28
Other Actions
In addition to the homeless and special needs activities described above, the City of
Springfield plans to allocate HOME funds to support the following activities in the coming
year:
• New construction of affordable work-force housing.
• Rehabilitation of existing housing stock to be used for very low-income rental housing
for persons with disabilities.
• Downpayment assistance for low-income first-time homebuyers.
• New construction of homeownership units.
In addition, a local non-profit agency also provides homeownership counseling and
education to low and moderate-income families in Springfield.
Specific HOME Program Requirements
The City of Springfield currently provides assistance to homebuyers through two programs.
Each program has its own resale and recapture provisions.
• Springfield Homeownership Program (SHOP). This program provides downpayment
assistance to low- and moderate-income first-time homebuyers. The current
maximum amount of assistance is $7,000. The HOME funds are provided to the
qualified buyer as a no interest deferred loan which is recorded as a lien against the
HOME-assisted property. The lien is repaid in full to the City upon the subsequent
resale of the property. There is no expiration date for the lien. Successful completion
of a homeownership preparation course conducted by a participating lender or an
equivalent program conducted by a participating CHDO is a prerequisite to
qualifying for this program. All low- and moderate-income households who have not
owned a home in the past three years are eligible for the SHOP.
In addition to the assistance provided to first time homebuyers purchasing market rate
homes, the Consortium has elected to provide assistance to homebuyers purchasing
homes in housing developments and/or subdivisions constructed or rehabilitated
specifically to provide housing for low-income homebuyers an increased subsidy
amount up to double the customary SHOP subsidy. The City of Springfield is also
allowing a doubling of SHOP assistance for eligible homeownership opportunities in its
downtown. All other terms and conditions of the SHOP will remain the same.
Two HOME projects, grant administration, CHDO operating support and housing program
allocations were approved for funding at a Public Hearing before the Springfield City Council
on April 16, 2012 and are included in this One-Year Action Plan. A table of Springfield’s HOME
Attachment 2-28
FY2013/14 One-Year Action Plan 29
activities and programs, and summary descriptions of Springfield’s approved HOME projects
follow this narrative section.
City of Springfield: HOME Recapture Provisions for
Homeownership Projects
The HOME Program requires that a jurisdiction must impose either resale or a recapture
provisions when providing HOME assistance to homeownership projects, including homes
acquired with SHOP downpayment assistance. In order to ensure affordability, the City of
Springfield is imposing HOME recapture provisions on all homeownership projects and
programs which include a “homebuyer subsidy” as described in 24CFR §92.254(a)(5)(ii).
Under this recapture provisions, the HOME period of affordability is based on the total
amount of homebuyer subsidy per unit:
HOME Affordability Table
Homebuyer Subsidy Less than $15,000 $15,000 to $40,000 Over $40,000
Period of Affordability Five Years Ten Years Fifteen Years
Homebuyer subsidy is the amount of the HOME assistance that enabled the homebuyer to
buy the dwelling, and is the amount that is subject to recapture. This amount includes SHOP
downpayment assistance, purchase financing (silent mortgages) and assistance with closing
costs. It doesn’t include any “development subsidy” which is the amount of HOME
assistance provided to the housing developer that bridges the gap between the cost of
producing the unit and its fair market value. HOME recapture provisions ensure that if the
housing does not continue to be the principal residence of the family for the period of
affordability, then all or a portion of the homebuyer subsidy shall be recaptured.
Net Proceeds Limitation
Under the recapture provisions, the homebuyer must repay to the City of Springfield the full
amount of the homebuyer subsidy whenever the housing unit does not continue to be the
principal residence of the family for the duration of the period of affordability. However, if
the recapture requirement is triggered by the sale (voluntary or involuntary) of the housing
unit, and there are no net proceeds or the net proceeds are insufficient to repay the entire
homebuyer subsidy amount, the City may only recapture the net proceeds, if any. HOME
affordability requirements will end upon recapture of the homebuyer subsidy. Any
recaptured funds will be deposited into the consortium HOME account and will provide
assistance to future HOME projects.
NEDCO and St. Vincent de Paul Homeownership Housing
This section clarifies how the HOME recapture provisions will be applied to NEDCO and St.
Vincent de Paul (SVDP) HOME assisted housing. In their loan agreement with the
homebuyer, both NEDCO and SVDP divide the purchase price into two or more parts. The
intent of dividing the purchase price into separate parts is to make the purchase more
affordable to the homebuyer and to prevent the homebuyer from profiting from the non-
Attachment 2-29
FY2013/14 One-Year Action Plan 30
profit status of each agency and its programs by immediately selling the property at a profit.
The parts are:
• Part A is the first mortgage between the borrower and the agency. This part is not
subject to the HOME recapture provisions.
• Part B is a “silent mortgage” between the borrower, the agency and the City of
Springfield. This is considered to be direct assistance to the homebuyer, and the full
amount is subject to the HOME recapture provisions. If the property is no longer the
primary residence of the borrower at any time during the period of affordability, the
recapture provisions will take effect and the borrower will be required to repay the full
amount of Part B to the City of Springfield. However, if the recapture provisions are
triggered by sale or foreclosure of the property, the amount that the borrower will be
required to repay to the City of Springfield will be subject to the net proceeds
limitation previously described.
• Other parts may be incorporated in the loan agreements that include grants, loans
and other financing assistance provided by other sources. These parts are not subject
to the HOME recapture provisions.
• NEDCO and SVDP will often encourage its homebuyers to use the SHOP program to
provide downpayment assistance during the purchase. SHOP assistance is also
regarded as a direct homebuyer subsidy and is, therefore, subject to the HOME
recapture provisions including the net proceeds limitation. For these properties, the
full amount subject to recapture is the sum of Part B and the SHOP assistance.
Habitat for Humanity Homeownership Housing
This section clarifies how the HOME recapture provisions will be applied to HOME assisted
housing produced by the Springfield-Eugene chapter of Habitat for Humanity (HfH). In its
Note and Loan Agreement with the homebuyer, HfH divides the purchase price into three
parts. The intent of dividing the purchase price into three parts is to prevent the borrower
from profiting from the non-profit status of HfH and its programs by immediately selling the
property at a profit. The three parts are:
• Part A is the first mortgage between the borrower and HfH. This part is not subject to
the HOME recapture provisions.
• Part B is a “silent second mortgage” between the borrower, HfH and the City of
Springfield. This is the full amount of the direct HOME assistance to the homebuyer,
and is the amount subject to the HOME recapture provisions. If the property is no
longer the primary residence of the borrower at any time during the period of
affordability, the recapture provisions will take effect and the borrower will be required
to repay the full amount of Part B to the City of Springfield. However, if the recapture
provisions are triggered by sale or foreclosure of the property, the amount that the
borrower will be required to repay to the City of Springfield will be subject to the net
proceeds limitation previously described.
• Part C is a “silent third mortgage” between the borrower and HfH and is not subject to
the HOME recapture provisions.
Optional Assumption of HOME Affordability Obligations
Springfield is making an additional provision available only to NEDCO, SVDP and HfH
homeownership projects. Springfield will permit a subsequent low-income purchaser of a
Attachment 2-30
FY2013/14 One-Year Action Plan 31
NEDCO, SVDP or HfH HOME assisted unit to assume the HOME loan and recapture obligation
entered into by the original buyer. This includes any SHOP downpayment assistance. The
new homeowner will also assume the remaining period of affordability. This provision will give
these agencies the opportunity to prolong the affordability of its homes in keeping with their
missions. This consideration is optional and does not limit or eliminate the original buyer’s right
to sell the home to a willing buyer at any income level.
Extended Affordability, Occupancy and Repayment Requirements
The HOME affordability requirements and recapture provisions will expire at the end of the
mandated periods shown in the HOME Affordability Table. However, many homeownership
programs extend affordability, occupancy and repayment requirements beyond the HOME
mandated periods. For instance, most SHOP loans have a five-year HOME period of
affordability. However, the loan made by the City to the homebuyer does not expire, and
repayment is required upon sale or transfer, or whenever the unit is no longer the principle
residence of the homebuyer. If a SHOP homebuyer sells his home ten years after the date of
purchase, the HOME recapture provisions will have expired and repayment is not subject to
the net proceeds limitation. The homebuyer must repay the full amount of the SHOP loan.
Homeownership loan agreements by NEDCO, SVDP and HfH may include affordability,
occupancy and repayment terms that continue beyond the HOME mandated period of
affordability and after the HOME recapture provisions expire. When repayment occurs after
the HOME mandated period of affordability, the repayment is considered program income
and will be returned to the HOME Consortium account to be used to support future HOME
activities.
If the HOME assistance is only used for the development subsidy and therefore not subject to
recapture, the resale provision described in 24CFR §92.254(a)(5)(i) must be used. The City of
Springfield does not anticipate participating in a homeownership project where only a
development subsidy is provided, therefore, a resale provision is not included in this section.
Monitoring
Regulations state that the One-Year Action Plan must describe the standards and
procedures that the jurisdiction will use to monitor activities carried out in furtherance of the
Plan and to ensure that long-term compliance with requirements of the programs involved.
• HOME Project Monitoring – Client income certification sheets are submitted annually by
developers of HOME-funded projects and are placed in the project file. Review of
income and other eligibility documentation are completed on-site. Physical inspections
of HOME-assisted units are conducted on a one-, two-, and three-year cycle based on
the number of HOME units. The inspector summarizes the findings and any follow-up work
required. These inspection forms are filed in the project files.
• Consortium Monitoring – The cities of Eugene and Springfield recently entered into a
Memorandum of Understanding which states the program responsibilities of the
Attachment 2-31
FY2013/14 One-Year Action Plan 32
Consortium. Springfield participates in an annual monitoring conducted by the City of
Eugene as lead agency.
• City Single Audit – The Federal HOME program is reviewed by the City’s external auditors
annually.
• Project Management – Each project is managed by Springfield HOME program staff. The
project manager reviews projects for compliance throughout the implementation of the
project. Project contracts include a scope of work, timeline, and budget as well as
regulatory requirements – use of minority business enterprises, environmental
requirements, mitigation efforts, record keeping, etc.
• Affirmative Marketing – Both cities have a joint Affirmative Marketing Policy that complies
with 24CFR §92.351. The City of Springfield periodically reviews the marketing plans for all
affordable housing developments in Springfield. The housing providers have active plans
in place and are diligent in their work to seek out and provide housing to our minority
communities. NEDCO provides homebuyer outreach and marketing activities in Spanish.
Attachment 2-32
FY2013/14 One-Year Action Plan 33
FY 2013/14 HOME Funding Allocations
Funding Amounts:
New Grant Funds $ 279,910
Previous Year $ 102,496
TOTAL AVAILABLE $ 382,406
Applicant
Project
HOME Amount
New Funds Previous
Year
Carryover
HACSA, Metropolitan
Housing
Acquisition and development of
Glenwood Place mixed-use
development
$ 107,674 $102,496
Habitat for Humanity Infrastructure development of R
Street subdivision $ 30,250 -
Grant Administration* $ 27,991 -
City Housing Programs $100,000 -
CHDO Operating $ 13,995 -
Unallocated amount (carry
forward to next year) $0 -
Subtotal $297,910 $102,496
GRAND TOTAL $382,406
*In addition, Springfield will continue to assign10% of all program income received within the
program year to HOME Grant Administration
Attachment 2-33
FY2013/14 One-Year Action Plan 34
City of Springfield
Summary of FY2013/14 HOME Proposals and Approved
Funding Amounts
1. Project: Glenwood Place
Location: 4224 Franklin Blvd, Glenwood
Developer: HACSA, Metropolitan Affordable Housing
Approved: $210,170
Total Proj. Cost: $22,665,550
HACSA, in partnership with Metropolitan Affordable Housing is receiving $210,170,000 of
HOME funding to support the development of Glenwood Place, a multi-family mixed used
development located in Glenwood. When completed, the development will consist of 150
affordable workforce housing units and ground floor commercial space fronting Franklin Blvd.
Glenwood is located in a transit-rich area, positioned between Eugene and Springfield, with
easy access to the U of O, LCC, Peace Health Medical Center, and both downtowns.
The workforce housing within the development will consist of studio, one-bedroom and two-
bedroom apartments set at rent levels affordable to individuals and families earning 30-60%
of median area income. The development will include community spaces and meeting
rooms, open areas, and parking for the commercial and residential tenants. The
development will be a catalyst for new economic activity along the Franklin Blvd. corridor,
and is consistent with the goals of the Glenwood Refinement Plan.
If awarded, these funds may not be used by the developers until the site has received
environmental clearance, and has been annexed to the City of Springfield. The annexation
process has been initiated. HACSA received a HOME grant of $96,500 in FY2012 for
predevelopment costs associated with Glenwood Place.
2. Project: R Street Development
Location: R Street (south side) just east of 11th
Place
Developer: Springfield-Eugene Habitat for Humanity
Approved: $30,250
Total Proj. Cost: $893,175
The Springfield/Eugene Habitat for Humanity is requesting $60,500 of HOME funds for private
infrastructure development to support seven single family homes on a lot owned by HfH at R
Street near 11th
Place. The funds will be used to pay surveying and platting services and fees,
architectural and engineering costs, planning and permit fees, utility and infrastructure
development costs, and site development.
Attachment 2-34
FY2013/14 One-Year Action Plan 35
While no particular design for the homes has been selected, the homes will be Energy Star
certified and flexible enough to serve families needing 2, 3 or 4 bedrooms. This is a new
construction housing project that will provide affordable homeownership for families
between 30% and 60% of the area median income.
HfH is nearing the completing of the 10 unit Meyer Estates subdivision. The City contributed
$245,000 of HOME funds to Meyer Estates over four funding cycles.
Attachment 2-35