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HomeMy WebLinkAboutItem 14 Fiscal Year 2014-2015 One-Year Action Plan of the Eugene-Springfield Consolidated Plan for Housing and Community Development (City of Springfield Section) AGENDA ITEM SUMMARY Meeting Date: 5/5/2014 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 2014-2015 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 FY2014-2015 One-Year Action Plan 2. Modify if appropriate and by motion adopt/not adopt the Springfield section of the FY2014-2015 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 fifth and final One-Year Action Plan under the 2010 Consolidated Plan, and covers the period beginning July 1, 2014 and ending June 30, 2015. ATTACHMENTS: 1. FY2014-2015 Action Plan Executive Summary 2. FY2014-2015 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 7, 2014, to review and consider proposed CDBG and HOME funding allocations. Council approved four projects for CDBG funding and one project for HOME funding. Council also approved allocations for grant administration, public services, program and project delivery, and planning. The FY2014-2015 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 7, 2014. 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 5, 2014. 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, 2014 for review and acceptance. FY2014-15 One-Year Action Plan, Executive Summary 1 City of Springfield Process 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 NEDCO, 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. FY2014/15 Allocation Process Requests for Proposals were issued on January 17, 2014. $198,119 of HOME funds and $137,494 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 10, 2014. The City received five requests for funding totaling $331,921. All applications were forwarded to the CDAC for review and consideration. The CDAC held a public hearing on March 20, 2014 to hear testimony, review proposals and develop funding recommendations. Several members of the public and city staff attended the public hearing, with nine 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 FY2014/15 One-Year Action Plan opened on April 1, 2014 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 7, 2014 and held a public hearing on the CDBG and HOME funding recommendations for FY2014/15. Applicants, supporters and CDAC members attended the public hearing and five 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 Attachment 1, Page 1 of 3 FY2014-15 One-Year Action Plan, Executive Summary 2 closed on May 5, 2014. No written testimony or comments were received. The FY2014/15 One-Year Action Plan (Springfield section) was presented to the City Council for consideration and approval at a public hearing on May 5, 2014. The City Council voted 6-0 to approve the FY2014/15 One-Year Action Plan. Highlights – City of Springfield Non-Profit Capital Projects The Emerald Empire Art Association (EEAA) is receiving $8,000 of CDBG funds to assist with renovation of the commercial storefront at the Emerald Art Center. Located at 500 Main Street, the Emerald Art Center is in the heart of downtown. The CDBG funds will be used to install front window lighting and display structures to highlight the Art Center and provide a more attractive, welcoming environment to downtown visitors. The new LED lighting will replace existing halogen lights, and add additional lighting to enhance the evening and nighttime façade of the Art Center. The new LED fixtures will last longer and be a cost and energy saving improvement to the facility. Currently, the four large windows facing Main Street are mainly unlit and it is often difficult to determine if the Art Center is open for business. The Art Center is a key stopping point during the 2nd Friday Art Walk which occurs each month in downtown, typically attracting 100-200 visitors. Catholic Community Services (CCS) is receiving $27,615 in CDBG funding to purchase a walk-in freezer/refrigerator combination, to be installed at the Springfield Community Service Center at 1025 G Street. CCS operates a food box distribution program from this facility, and the freezer/refrigerator will allow the program to better store and distribute frozen and perishable food items to its low and very-low income clientele. This activity is part of a larger renovation being undertaken by CCS to expand their food box distribution service and better accommodate the growing numbers of individuals and families that use the program. The permanently installed unit will provide 250 cubic feet of freezer space and 250 cubic feet of refrigerator space. Affordable Rental Housing HACSA, in partnership with Cornerstone Community Housing (formerly Metropolitan Affordable Housing) is receiving $186,306 of HOME funding to support the development of Glenwood Place, a multi-family mixed-use development located in Glenwood. When completed, the development will consist of 130 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 is projected to be a catalyst for new economic activity along the Franklin Blvd. corridor, and is consistent with the goals of the Glenwood Refinement Plan. Attachment 1, Page 2 of 3 FY2014-15 One-Year Action Plan, Executive Summary 3 Economic Development and Job Creation The Neighborhood Economic Development Corporation (NEDCO) is receiving $66,879 of CDBG funds to provide business incubator services through the Hatch Program and through a cooperative agreement with Huerto de la Familia. The agency plans to use $64,500 to serve 30 clients through its Hatch Business Incubator Program and 3 clients through services delivered by Huerto de la Familia. Services will include workshops and classes, ongoing coaching, business planning and development, access to financial management tools, and outreach with a focus on the Latino community. NEDCO is planning to use $7,500 of its allocation to provide up to 150 hours of Retail Business Incubator assistance to up to five existing downtown businesses. Services include merchandising assistance, secret shopper services and other retail specific training and support. $3,000 of CDBG is earmarked for outreach and marketing support. These services and activities are eligible under the Slums and Blight (S/B) national objective. Downtown Redevelopment The Springfield Renaissance Development Corporation (SRDC) is receiving $35,000 of CDBG funds to assist with the renovation of a downtown property. Located at 331-335 Main Street, the property is an existing single story structure with three store fronts. Renovation activities include façade improvements, awnings, electrical and lighting improvements, interior renovations and painting. The project will demonstrate how relatively small capital investments in existing downtown structures can dramatically improve the business potential of these buildings, benefit adjacent businesses, increase the tax-base and add to the revitalization of the downtown commercial core. Other Activities and Housing Programs • Housing Rehabilitation Programs - $70,000 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 - $14,979 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 - $67,671 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 Womenspace. Attachment 1, Page 3 of 3 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 1 City of Springfield CDBG Program 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 2014/2015 (FY 2014/15) CDBG allocation will be $451,142. This is a 6.0% decrease from FY2013. 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 FY 2014/15 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 $300,000 of FY 2014/15 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 $27,615 of CDBG funds to assist with the purchase of a walk-in freezer/refrigerator unit to be installed in the newly renovated food distribution area of the Community Center. Attachment 2, Page 1 of 53 2 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan 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. It is also one of two Springfield sites for the Egan Warming Centers. Business and Community Development on A Street. NEDCO will utilize $56,379 of CDBG funds to provide business incubator services through the Hatch Program and through a cooperative agreement with Huerto de la Familia. The agency plans to serve 30 clients through its Hatch Business Incubator Program and 3 clients through services delivered by Huerto de la Familia. These services will be provided by NEDCO from its three downtown locations: the Sprout! Regional Food Hub at 418 A Street, the Hatch Business Development Center at 212 Main Street and at 405 A Street, an existing building that NEDCO is leasing across the street from Sprout! NEDCO will be leasing the building from its current owner. This is a service activity, and the total project cost reflects the total anticipated annual cost of administering the Local Works suite of programs, which includes the Hatch Business Incubator Program. NEDCO is a leader and active proponent of downtown revitalization, and has partnered with the City on several important downtown projects, including the Sprout! Food Hub, the NEDCO Building and the Springfield Farmers’ Market. 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 first year in the three-year aggregate. Attachment 2, Page 2 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 3 Downtown Retail Business Incubator Assistance. NEDCO will utilize $10,500 of CDBG funds to provide up to 150 hours of Retail Business Incubator assistance to existing downtown businesses. NEDCO will provide technical assistance to the existing businesses, including such services as secret shopper testing, façade evaluation, retail layout and circulation and accessibility. This is a service activity, and the total project cost reflects the total anticipated annual cost of administering the Local Works suite of programs, which includes the Hatch Business Incubator Program. SRDC Demonstration Project. The Springfield Renaissance Development Corporation (SRDC) will utilize $35,000 of CDBG funds to assist with the renovation of a downtown property. Located at 331-335 Main Street, the property is an existing single story structure with three store fronts. Renovation activities include façade improvements, awnings, electrical and lighting improvements, interior renovations and painting. The project will demonstrate how relatively small capital investments in existing downtown structures can dramatically improve the business potential of these buildings, benefit adjacent businesses and add to the revitalization of the downtown commercial core. Emerald Art Center Window Lighting and Display. The Emerald Empire Art Association (EEAA) is requesting $8,000 of CDBG funds to assist with renovation of the commercial storefront at the Emerald Art Center. Located at 500 Main Street, the Emerald Art Center is in the heart of downtown. The CDBG funds will be used to install front window lighting and display structures to highlight the Art Center and provide a more attractive, welcoming environment to downtown visitors. The four large windows facing Main Street are currently unlit and it is often difficult to determine if the Art Center is open for business. The Art Center is a key stopping point during the 2nd Friday Art Walk which occurs each month in downtown, typically attracting 100-200 visitors. Admission to the Art Center is free to the public, and is often visited by students and persons of low and moderate incomes. Improving the Main Street façade of the Emerald Art Center will further enhance the pedestrian environment of downtown, and will complement the streetlight improvements currently planned for downtown. 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 shown in the table was also approved by the Council at the public hearing on April 7, 2014. 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 CDBG program funding. Current and past CDBG projects that serve this diverse target population are: • Non-profit owned facility improvements that benefit homeless and special needs populations. Agencies assisted include Pearl Buck Center, Full Access and Oregon Supported Living, Alvord-Taylor, Shankle Safe Haven and the Springfield Community Service Center. Attachment 2, Page 3 of 53 4 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan • Transitional housing for homeless and at-risk families. (NEDCO, SVDP) • Group homes for developmentally disabled persons. (Alvord-Taylor) • Security deposit assistance for homeless and at-risk households. (City Program) • Service enriched rental housing for special needs individuals, including low-income seniors and developmentally disabled adults. (Sheltercare, Mainstream Housing) • Emergency rental assistance for very low-income households. (City Program) • Dedicated housing for low-income seniors. (SVDP) • Food box programs, energy assistance (Springfield Community Service Center) • Emergency Housing and support services for DV victims. (Womenspace) In addition to these CDBG activities, the City of Springfield supports other non-federally funded activities that provide critical assistance to homeless and at risk populations: • Overnight Parking Program • Egan Warming Centers • Interfaith Emergency Shelter System Continuum of Care Service System The enormous diversity of individual and families who are homeless and the unique problems and specific needs of each subgroup require highly complex service systems. The need to provide specialized services for different sub-populations means that some services or programs may be appropriate for some groups but not others. In addition, a single person or household may need the assistance of numerous mainstream services beyond housing. These may include health care, cash benefits, food, employment, and substance abuse treatment. Community-wide planning and coordination among homeless service providers and mainstream service providers is important if individuals and families are to get the help they need and eventually leave homelessness. As described in the FY2012-13 One Year Action Plan, the primary strategy for reducing and ending homelessness in the Eugene/Springfield metropolitan area is the design and implementation of a continuum of care strategic plan for the delivery of services for homeless and at-risk persons. The cities of Eugene and Springfield, in partnership with Lane County participate in the Intergovernmental Human Services Commission (HSC) to address complex anti-poverty and homeless issues through a Continuum of Care (CoC) service delivery system that is designed to stimulate communitywide planning and coordination of programs for individuals and families who are homeless or at-risk. While the HSC has an existing CoC Attachment 2, Page 4 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 5 strategy in place, the recent HEARTH Act amendments to the McKinney-Vento Homeless Assistance Act have prompted the HSC to formalize the role and function of the CoC. The CoC is a strategic plan for addressing homeless in the community. It is designed to: • Promote a communitywide commitment to the goal of ending homelessness • Provide funding for efforts for rapidly rehousing homeless individuals and families • Promote access to and effective use of mainstream programs • Optimize self-sufficiency among individuals and families experiencing homelessness Two critical components of the Eugene/Springfield/Lane County CoC are the One-Night Homeless Count (ONHC) and the Homeless Management Information System (HMIS). The ONHC is an annual, countywide undertaking that seeks out unsheltered homeless persons and collects important demographic data. From this intensive outreach effort we get a snapshot of the homeless population in our area, a general assessment of their needs and disabling conditions, and a basis for allocating resources. All personal information collected from the ONHC will remain confidential. The HMIS is a point of entry identification system for individuals and households accessing homeless and supportive services through participating agencies. With the HMIS, an individual or household completes an intake form upon entry into the system. Client information is accessible by other HMIS agencies, needs assessments can be made and multiple services can be provided. The HMIS ensures that each client receives the care and assistance needed while reducing the potential for duplication or omission of critical services. Once entered into the HMIS, clients may access food services, emergency shelter, transitional and permanent housing, health care and other services under the CoC. The more robust Continuum of Care strategic plan that is being developed and implemented will enhance outreach and assessment efforts of homeless and at-risk persons. It will allow agencies to provide coordinated supportive services to homeless persons that address their individualized need for shelter and rapid rehousing, healthcare, food and benefits. Most importantly, it will help direct local, state and federal resources to better address the emergency shelter, transitional and permanent housing needs of homeless and at-risk individuals and households in the Eugene/Springfield community. City of Springfield CDBG Funded Housing Programs • 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 $70,000 from its new CDBG grant for this purpose. Attachment 2, Page 5 of 53 6 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan • Emergency assistance to very low-income renters is made available through Springfield’s Emergency Rental Assistance Program (ERAP). This program provides single episode 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. Attachment 2, Page 6 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 7 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 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 Attachment 2, Page 7 of 53 8 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan 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 – The availability to all Springfield residents of a fair housing consultant and a 24-hour fair housing hotline is a key component in Springfield’s ongoing commitment to affirmatively further fair housing. The fair housing hot-liine 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). The Fair Housing Council of Oregon provides these services for the Eugene-Springfield area and supports Springfield’s certification to affirmatively further fair housing. 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 community and other minority populations. 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 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 Attachment 2, Page 8 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 9 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. HUD Fair Housing posters in Spanish language are posted in the Development and Public Works offices. 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 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) The health risks to young children posed by lead-based paint in residential dwellings remain an important issue. Progress in research and technology 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 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. Attachment 2, Page 9 of 53 10 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan 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 the 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. 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. Attachment 2, Page 10 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 11 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 Consolidated Plan is necessary 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 Attachment 2, Page 11 of 53 12 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan 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 compliance period 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. 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”. Attachment 2, Page 12 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 13 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. 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 five-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. Attachment 2, Page 13 of 53 14 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan For other subrecipients, 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 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 Attachment 2, Page 14 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 15 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 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. CDBG funding for four CDBG projects, grant administration, project/program delivery, Human Services Commission and housing program allocations were approved for funding at a public hearing before the Springfield City Council on April 7, 2014 and are included in this One-Year Attachment 2, Page 15 of 53 16 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan 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, Page 16 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 17 City of Springfield FY 2014/15 CDBG Funding Allocations Funding Amounts: New Grant Funds $451,142 Prior Years $ 0 TOTAL AVAILABLE $451,142 Applicant Project Amount New Funds Prior Years Emerald Empire Art Association Emerald Art Center, Window Lighting and Display $8,000 $0 Catholic Community Services Springfield Service Center, Built-in Refrigerator and Freezer $27,615 $0 NEDCO, part 1 Business and Community Development on A Street $56,379 $0 NEDCO, part 2 Business and Community Development, Retail Assistance on Main Street $10,500 $0 Springfield Renaissance Development Corp. Downtown Demonstration Project $35,000 $0 City Housing Programs $70,000 $0 Project/Program Delivery $85,749 $0 Human Services Commission $61,671 $0 Grant Administration $90,228 $0 Unallocated funds $0 $0 GRAND TOTAL $451,142 $0 Attachment 2, Page 17 of 53 18 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan City of Springfield Summary of FY2014/15 CDBG Proposals and Approved Funding Amounts 1. Project: Window Lighting and Display Location: 500 Main Street, Springfield Developer: Emerald Empire Art Association Approved: $8,000 CDBG Grant (S/B Area) Total Proj. Cost: $8,780 The Emerald Empire Art Association (EEAA) is receiving $8,000 of CDBG funds to assist with renovation of the commercial storefront at the Emerald Art Center. Located at 500 Main Street, the Emerald Art Center is in the heart of downtown. The CDBG funds will be used to install front window lighting and display structures to highlight the Art Center and provide a more attractive, welcoming environment to downtown visitors. The four large windows facing Main Street are currently unlit and it is often difficult to determine if the Art Center is open for business. The Art Center is a key stopping point during the 2nd Friday Art Walk which occurs each month in downtown, typically attracting 100-200 visitors. Admission to the Art Center is free to the public, and is often visited by students and persons of low and moderate incomes. Improving the Main Street façade of the Emerald Art Center will further enhance the pedestrian environment of downtown, and will complement the streetlight improvements currently planned for downtown. The mission of the Emerald Empire Art Association is to promote, teach and display art for the benefit of the local community. The EEAA has been in existence for over 50 years. CDBG has been used in the past to complete a major renovation of the art center, and more recently to make repairs to its exterior stucco. The Emerald Art Center was the first use of CDBG funds for downtown revitalization. 2. Project: Community Service Center, Walk-in Freezer/Refrigerator Location: 1025 G Street, Springfield Developer: Catholic Community Services (CCS) Approved: $27,615 CDBG Grant (LMI Limited Clientele) Total Proj. Cost: $149,625 Attachment 2, Page 18 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 19 Catholic Community Services (CCS) is receiving $27,615 in CDBG funding to purchase a walk- in freezer/refrigerator combination, to be installed at the Springfield Community Service Center at 1025 G Street. CCS operated a food box distribution program from this facility, and the freezer/refrigerator will allow the program to better store and distribute frozen and perishable food items to its low and very-low income clientele. This activity is part of a larger renovation being undertaken by CCS to expand their food box distribution service and better accommodate the growing numbers of individuals and families that use the program. The existing space is cramped and can only handle a few people at a time. People needing this service are required to wait in line for extended periods of time in order to get their food box. CCS is in the process of renovating the former sanctuary space to be its new food distribution area. The new area will be more spacious and efficient, and will greatly improve the ability of CCS to meet the growing needs of the community. The permanently installed unit will provide 250 cubic feet of freezer space and 250 cubic feet of refrigerator space. CCS is the largest distributor of emergency food in Springfield. Last year the agency distributed over 375 tons of food, benefiting over 12,000 persons. In addition to the food distribution program, CCS also distributes free clothing, hygiene and household items to those in need. CCS proves many other needed services from its Springfield facility including, utility assistance, assistance with prescription medication, a location for the Egan Warming Center, and participation in the Overnight Parking program. 3. Project: Business and Community Development on A Street Location: 405 A Street, Springfield Developer: Neighborhood Economic Development Corporation (NEDCO) Approved: $56,379 CDBG Grant (LMI-Microenterprise) Total Proj. Cost: $828,125 NEDCO is receiving $56,379 to serve 30 clients through its Hatch Business Incubator Program and 3 clients through services delivered by Huerto de la Familia. Services will include workshops and classes, ongoing coaching, business planning and development, access to financial management tools, and outreach with a focus on the Latino community. These services are eligible under the CDBG Low and Moderate-Income (LMI) national objective, and will be provided by NEDCO from its three downtown locations: the Sprout! Regional Food Hub at 418 A Street, the Hatch Business Development Center at 212 Main Street, and at an existing building located at 405 A Street, across the street from Sprout! NEDCO will be leasing the building from its current owner. This is a service activity, and the total project cost reflects the total anticipated annual cost of administering the Local Works suite of programs, which includes the Hatch Business Incubator Attachment 2, Page 19 of 53 20 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan Program. NEDCO is a leader and active proponent of downtown revitalization, and has partnered with the City on several important downtown projects, including the Sprout! Food Hub, the NEDCO Building and the Springfield Farmers’ Market. 4. Project: Retail Assistance on Main Street Location: 212 Main Street, Springfield Developer: Neighborhood Economic Development Corporation (NEDCO) Approved: $10,500 CDBG Grant (S/B Area) Total Proj. Cost: $828,125 NEDCO is also planning to use $7,500 of CDBG to provide up to 150 hours of Retail Business Incubator assistance to up to five existing downtown businesses. Services include merchandising assistance, secret shopper services and other retail specific training and support. $3,000 of CDBG is earmarked for outreach and marketing support. These services and activities are eligible under the Slums and Blight (S/B) national objective. This is a service activity, and the total project cost reflects the total anticipated annual cost of administering the Local Works suite of programs, which includes the Hatch Business Incubator Program. NEDCO is a leader and active proponent of downtown revitalization, and has partnered with the City on several important downtown projects, including the Sprout! Food Hub, the NEDCO Building and the Springfield Farmers’ Market. 5. Project: SRDC Downtown Demonstration Project Location: 331-335 Main Street, Springfield Developer: Springfield Renaissance Development Corporation Request: $35,000 CDBG Grant (S/B Area) Total Proj. Cost: $35,000 The Springfield Renaissance Development Corporation (SRDC) is requesting $35,000 of CDBG funds to assist with the renovation of a downtown property. Located at 331-335 Main Street, the property is an existing single story structure with three store fronts. Renovation activities include façade improvements, awnings, electrical and lighting improvements, interior renovations and painting. The project will demonstrate how relatively small capital investments in existing downtown structures can dramatically improve the business potential Attachment 2, Page 20 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 21 of these buildings, benefit adjacent businesses and add to the revitalization of the downtown commercial core. The SRDC board is made up of a group of civic-minded volunteers who are committed to improving Springfield downtown. The agency was the developer and driving force behind the Wildish Theater reconstruction. Completed in 2007 the Wildish Theater is a major benchmark in the growing downtown revitalization effort. Attachment 2, Page 21 of 53 22 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan Springfield 2014/15 CDBG Table 3C Non-Profit Capital Improvements Project/Local ID: 0001 Project Name: EEAA – Emerald Art Center Window Lighting Project Project Location: 500 Main Street, Springfield Project Description: Install new window lighting to improve Main Street visibility and increase visitorship Project Explanation: Window lighting improvements to increase visibility and attract visitors to Art Center. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $8,000 Matrix Code/Title: 14E – Rehab; publicly or privately owned commercial building Priority Need: Businesses Eligibility Citation: 570.202 National Objective SBA – 570.208(b)(1) – Slums and Blight Area Accomplishment Type/Goal: Businesses/1 Performance Measures Objective Suitable Living Environment Outcome Accessibility Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 22 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 23 Springfield 2014/15 CDBG Table 3C Non-Profit Capital Improvements Project/Local ID: 0002 Project Name: Catholic Community Services – Community Service Center Food Room Improvement Project Location: 1025 G Street, Springfield Project Description: Purchase of a built-in commercial refrigerator/freezer unit for food room Project Explanation: Improve efficiency and capacity of food room to expand services for LMI persons Start/Completion Dates: 7/01/2014 – 9/30/2015 Funding Source: CDBG $27,615 Matrix Code/Title: 14E Rehab; Publicly or Privately Owned Commercial or Industrial Buildings Priority Need: Public Facilities Eligibility Citation: 570.201(c) National Objective LMC – 570.208(a)(2) – Low / Mod Clientele Accomplishment Type/Goal: Public Facilities - 1 Performance Measures Objective Suitable Living Environment Outcome Sustainability Project Primary Purpose Help the Homeless Yes Help Persons with HIV/AIDS No Help Persons with Disabilities Yes Address Public Housing Needs No Attachment 2, Page 23 of 53 24 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan Springfield 2014/15 CDBG Table 3C Micro-Enterprise Assistance Project/Local ID: 0003 Project Name: NEDCO – Business Development on A Street Project Location: 405 A Street, Springfield, OR 97477 Project Description: Provide micro-business technical assistance and program support to 30 microenterprises through the Hatch Business Incubator Program and Huerto de la Familia. Project Explanation: Provide assistance to 30 emerging and growing micro-businesses through the Hatch Business Incubator Program Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $56,379 Matrix Code/Title: 18C – Micro-Enterprise Assistance Priority Need: Micro-Enterprise Assistance Eligibility Citation: 570.201(o) National Objective LMI-Limited Income – 570.208(a)(2)(i)(B) and (C) Limited Clientele Accomplishment Type/Goal: Micro-Businesses assisted – 30 Performance Measures Objective Economic Opportunity Outcome Accessibility Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 24 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 25 Springfield 2014/15 CDBG Table 3C Non-Profit Capital Improvements Project/Local ID: 0004 Project Name: NEDCO – Retail Assistance on Main Street Project Location: Downtown Main Street, Springfield, OR 97477 Project Description: Provide technical assistance and support to existing Main Street retail businesses, to help them improve and attract new customers. Project Explanation: Provide assistance to 5 existing retail businesses through the Hatch Business Incubator Program Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $10,500 Matrix Code/Title: 18B – ED Technical Assistance Priority Need: Businesses Eligibility Citation: 570.203(b) National Objective SBA – 570.208(b)(1) – Slums and Blight Area Accomplishment Type/Goal: Businesses assisted – 5 Performance Measures Objective Economic Opportunity Outcome Sustainability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 25 of 53 26 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan Springfield 2014/15 CDBG Table 3C Non-Profit Capital Improvements Project/Local ID: 0005 Project Name: SRDC – Downtown Demonstration Project Project Location: 331-335 Main Street, Springfield Project Description: Make small capital investments to improve three commercial spaces. Activity will demonstrate the effectiveness even small investments can have on the vitality of downtown. Project Explanation: Commercial space improvement to enhance and increase marketability and utility of space. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $35,000 Matrix Code/Title: 14E – Rehab; publicly or privately owned commercial building Priority Need: Businesses Eligibility Citation: 570.202 National Objective SBA – 570.208(b)(1) – Slums and Blight Area Accomplishment Type/Goal: Businesses/3 Performance Measures Objective Suitable Living Environment Outcome Sustainability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 26 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 27 Springfield 2014/15 CDBG Table 3C Housing Rehabilitation Program/Single Unit Project/Local ID: 0006 Project Name: Housing Rehab Program/single Unit Project Location: City-wide, Springfield, OR Project Description: Rehabilitation of housing for low-income households. Project Explanation: Rehabilitation loans and emergency repair grants/loans for eligible homeowners, and accessibility improvements for low and moderate-income tenants. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $70,000 Matrix Code/Title: 14A Rehab; Single-unit Residential Priority Need: Housing Eligibility Citation: 570.202 National Objective LMH – 570.208(a)(3) – low/Mod Housing Accomplishment Type/Goal: Housing Units/90 Performance Measures Objective Decent Housing Outcome Sustainability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 27 of 53 28 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan Springfield 2014/15 CDBG Table 3C Public Services – Human Services Commission Project/Local ID: 0007 Project Name: Human Services Commission (HSC) – Social Service Funding Project Location: 125 E. 8th Ave, Eugene, OR 97401 Project Description: Social Services for low and moderate-income persons. Project Explanation: Social services provided by local, non-profit agencies funded by the City of Eugene, City of Springfield and Lane County as a collaborative effort through the HSC. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $67,671 Matrix Code/Title: 05 - Public Services (General) Priority Need: Public Services Eligibility Citation: 570.201(e) National Objective LMC – 570.208(a)(2) – Low/Mod Clientele Accomplishment Type/Goal: Various Performance Measures Objective Suitable Living Environment Outcome Sustainability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 28 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 29 Springfield 2014/15 CDBG Table 3C Public Services – Catholic Community Services Project/Local ID: 0007 Project Name: HSC/Catholic Community Services – Community Service Center Project Location: 1025 G Street, Springfield, OR 97477 Project Description: Social Services for low and moderate-income persons. Project Explanation: Social service agency providing services and emergency shelter for homeless families. Funded by the City of Eugene, City of Springfield and Lane County as a collaborative effort through the HSC. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $ 31,158 Matrix Code/Title: 03T Operating Costs of Homeless/AIDS Priority Need: Public Services Eligibility Citation: 570.201(e) National Objective LMC – 570.208(a)(2) – Low/Mod Clientele Accomplishment Type/Goal: People / 11,000 Performance Measures Objective Suitable Living Environments Outcome Sustainability Project Primary Purpose Help the Homeless Yes Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 29 of 53 30 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan Springfield 2014/15 CDBG Table 3C Public Services – Food for Lane County, Food Distribution Project/Local ID: 0007 Project Name: HSC/Food for Lane County – Food Distribution Project Location: 770 Bailey Hill Road, Eugene, OR 97402 Project Description: Social Services for low and moderate-income persons. Project Explanation: Social service agency providing collection and distribution of food to other agencies for inclusion in food boxes. Funded by the City of Eugene, City of Springfield and Lane County as a collaborative effort through the HSC. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $ 14,237 Matrix Code/Title: 05 - Public Services (General) Priority Need: Public Services Eligibility Citation: 570.201(e) National Objective LMC – 570.208(a)(2) – Low/Mod Clientele Accomplishment Type/Goal: People / 12,500 Performance Measures Objective Suitable Living Environment Outcome Sustainability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 30 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 31 Springfield 2014/15 CDBG Table 3C Public Services – Womenspace Project/Local ID: 0007 Project Name: HSC/Womenspace – DV services Project Location: 577 Pearl St., Eugene, OR 97401 Project Description: Services and emergency shelter for victims of domestic violence and abuse. Project Explanation: Social service agency providing services to victims of domestic violence and their children. Funded by the City of Eugene, City of Springfield, and Lane County as a collaborative effort through the Human Services Commission (HSC). Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $ 8,029 Matrix Code/Title: 05G Battered and Abused Spouses Priority Need: Public Services Eligibility Citation: 570.201(e) National Objective LMC – 570.208(a)(2) – Low / Mod Clientele Accomplishment Type/Goal: People / 115 Performance Measures Objective Suitable Living Environments Outcome Sustainability Project Primary Purpose Help the Homeless Yes Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 31 of 53 32 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan Springfield 2014/15 CDBG Table 3C Public Services – Relief Nursery Project/Local ID: 0007 Project Name: HSC/Relief Nursery – Therapeutic Preschool Project Location: 71720 West 25th Ave., Eugene, OR 97405 Project Description: Social Services for low and moderate-income persons. Project Explanation: Social service agency providing therapeutic preschool services and parent training activities for families who are at high risk of child abuse. Funded by the City of Eugene, City of Springfield and Lane County as a collaborative effort through the HSC. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $14,247 Matrix Code/Title: 05N – Abused and Neglected Children Priority Need: Public Services Eligibility Citation: 570.201(e) National Objective LMC – 570.208(a)(2) – Low/Mod Clientele Accomplishment Type/Goal: People / 42 Performance Measures Objective Suitable Living Environment Outcome Sustainability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 32 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 33 Springfield 2014/15 CDBG Table 3C Program Administration Project/Local ID: 0008 Project Name: CDBG Program Administration/General Project Location: 225 Fifth Street, Springfield, OR 97477 Project Description: General management, oversight and coordination of CDBG Program. Project Explanation: Supports eligible CDBG administrative costs. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Source: CDBG $90,228 Matrix Code/Title: 21A - General Program Administration Priority Need: Planning and Administration Eligibility Citation: 570.206 National Objective n/a Accomplishment Type/Goal: n/a Performance Measures Objective n/a Outcome n/a Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 33 of 53 34 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan Springfield 2014/15 HOME Table 3C Housing Development – Permanent Multi-Family Project/Local ID: 0009 Project Name: Metropolitan Housing and HACSA – Glenwood Place Project Location: Franklin Blvd., Glenwood/Springfield, OR 97403 Project Description: Acquisition and development of 150 unit mixed-use affordable housing complex in Glenwood. Project Explanation: Acquisition and development costs associated with the Glenwood Place mixed- use complex, commercial and 150 units of workforce housing. Start/Completion Dates: 3/01/2015– 12/31/2016 Funding Sources: HOME - $186,306 Matrix Code/Title: Construction of Housing Priority Need: Housing Eligibility Citation: 92.206(a) National Objective LMI-Housing Accomplishment Type/Goal: 130 units, 11 HOME units Performance Measures Objective Decent Housing Outcome Affordability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs Yes Attachment 2, Page 34 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield CDBG Program 35 Springfield 2014/15 HOME Table 3C Springfield Home Ownership Program Project/Local ID: 0010 Project Name: Springfield Home Ownership Program (SHOP) Project Location: City-wide, Springfield Project Description: Downpayment assistance for low- and moderate-income homebuyers. Project Explanation: Downpayment assistance loans of up to $7,000 to low- and moderate-income homebuyers. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Sources: HOME $100,000 Matrix Code/Title: Direct Homeownership Assistance Priority Need: Housing Eligibility Citation: 92.206(c) National Objective Accomplishment Type/Goal: 15 units Performance Measures Objective Decent Housing Outcome Affordability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 35 of 53 36 City of Springfield CDBG Program Eugene-Springfield 2014/15 One Year Action Plan Springfield 2014/15 HOME Table 3C HOME Grant Administration Project/Local ID: 0011 Project Name: HOME Grant Administration Project Location: 225 5th St., Springfield, OR 97477 Project Description: General management, oversight and coordination of Springfield HOME grant program. Project Explanation: Supports eligible HOME administrative costs. Amount shown includes utilizing 10% of projected Program Income for FY14-15 Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Sources: HOME $29,957 Matrix Code/Title: HOME Admin/Planning Costs of PJ Priority Need: Housing Eligibility Citation: 92.207 National Objective Accomplishment Type/Goal: n/a Performance Measures Objective n/a Outcome n/a Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 36 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield HOME Investment Partnerships Program 37 City of Springfield HOME Investment Partnerships Program 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 2014/2015 (FY 2014/15) allocation of HOME funds is expected to be $299,575. This is a slight increase from the previous year’s allocation, and will help to mitigate the reduction to the City’s allocation of CDBG funds. 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 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 Attachment 2, Page 37 of 53 38 City of Springfield HOME Investment Partnerships Program Eugene-Springfield 2014/15 One Year Action Plan 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. • Vertical Housing Development Zone Tax Exemption. In October 2004, the City of Springfield received a Vertical Housing Development Zone (VHDZ) designation from Attachment 2, Page 38 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield HOME Investment Partnerships Program 39 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. 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. Attachment 2, Page 39 of 53 40 City of Springfield HOME Investment Partnerships Program Eugene-Springfield 2014/15 One Year Action Plan HOME Assisted Housing Developments • 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 130 units of affordable workforce housing and a commercial component fronting Franklin Blvd. HACSA will be receiving $186,306 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. HOME Funded Housing Programs • The Springfield Home Ownership Program (SHOP) provides downpayment assistance to low-income first-time homebuyers. The maximum SHOP assistance has been reduced 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 FY13 and the program is expected to fully expend its available funds before the end of the fiscal year, assisting 14 first-time homebuyers. We expect demand for the program to remain high in FY14, and with little change 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 559 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, Attachment 2, Page 40 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield HOME Investment Partnerships Program 41 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 in 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 Attachment 2, Page 41 of 53 42 City of Springfield HOME Investment Partnerships Program Eugene-Springfield 2014/15 One Year Action Plan 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. 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 Attachment 2, Page 42 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield HOME Investment Partnerships Program 43 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. Other Actions In addition to the homeless and special needs activities described above, 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. • Down payment 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. Attachment 2, Page 43 of 53 44 City of Springfield HOME Investment Partnerships Program Eugene-Springfield 2014/15 One Year Action Plan 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 down payment 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. One HOME project, grant administration, program/project delivery costs, CHDO operating support and housing program allocations were approved for funding at a Public Hearing before the Springfield City Council on April 7, 2014 and are included in this One-Year Action Plan. A table of Springfield’s HOME 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 Attachment 2, Page 44 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield HOME Investment Partnerships Program 45 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-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 Attachment 2, Page 45 of 53 46 City of Springfield HOME Investment Partnerships Program Eugene-Springfield 2014/15 One Year Action Plan 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 down payment 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 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 Attachment 2, Page 46 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield HOME Investment Partnerships Program 47 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 Consortium. Springfield participates in an annual monitoring conducted by the City of Eugene as lead agency. Attachment 2, Page 47 of 53 48 City of Springfield HOME Investment Partnerships Program Eugene-Springfield 2014/15 One Year Action Plan • 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. • Program Income – In addition to its FY2013/14 HOME entitlement, the City of Springfield is allocating an estimated $53,235 of HOME Program Income (PI) received in FY12/13 to projects and activities. Springfield anticipates receiving approximately $90,000 of PI in FY13/14. Ten percent of the PI received will be used for HOME program administration. The remainder will be carried forward, and will be allocated in the following program year. Attachment 2, Page 48 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield HOME Investment Partnerships Program 49 City of Springfield Springfield FY 2014/15 HOME Funding Allocations Funding Amounts: New Grant Funds $ 299,575 Program Income (est.) $ 99,010 Previous Year $ 3,486 TOTAL AVAILABLE $ 402,071 Applicant Project HOME Amount New Funds Previous Year Carryover, PI HACSA, Metropolitan Housing Development of Glenwood Place mixed-use development $ 83,810 $102,496 Grant Administration* $ 29,958 - Program/Project Delivery $59,016 City Housing Programs $100,000 - CHDO Operating $ 14,979 - Unallocated amount (carry forward to next year) $ 11,813 - Subtotal $299,575 $102,496 GRAND TOTAL $402,071 Attachment 2, Page 49 of 53 50 City of Springfield HOME Investment Partnerships Program Eugene-Springfield 2014/15 One Year Action Plan 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: $186,306 HOME Grant Total Proj. Cost: $11,445,684 (Phase 1) HACSA, in partnership with Metropolitan Affordable Housing is receiving $186,306 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 130 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 completed. HACSA received a HOME grant of $96,500 in FY2012 for predevelopment costs associated with Glenwood Place. In FY2013, HACSA received allocations of CDBG and HOME funds totaling $291,750 to assist with the development of the project. Attachment 2, Page 50 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield HOME Investment Partnerships Program 51 2 Springfield 2014/15 HOME Table 3C Housing Development – Permanent Multi-Family Project/Local ID: 0012 Project Name: Metropolitan Housing and HACSA – Glenwood Place Project Location: Franklin Blvd., Glenwood/Springfield, OR 97403 Project Description: Acquisition and development of 130 unit mixed-use affordable housing complex in Glenwood. Project Explanation: Acquisition and development costs associated with the Glenwood Place mixed-use complex, commercial and 150 units of workforce housing. Start/Completion Dates: 3/01/2015– 12/31/2016 Funding Sources: HOME - $186,306 Matrix Code/Title: Construction of Housing Priority Need: Housing Eligibility Citation: 92.206(a) National Objective LMI-Housing Accomplishment Type/Goal: 130 units, 11 HOME units Performance Measures Objective Decent Housing Outcome Affordability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs Yes Attachment 2, Page 51 of 53 52 City of Springfield HOME Investment Partnerships Program Eugene-Springfield 2014/15 One Year Action Plan Springfield 2014/15 HOME Table 3C Springfield Home Ownership Program Project/Local ID: 0013 Project Name: Springfield Home Ownership Program (SHOP) Project Location: City-wide, Springfield Project Description: Downpayment assistance for low- and moderate-income homebuyers. Project Explanation: Downpayment assistance loans of up to $7,000 to low- and moderate-income homebuyers. Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Sources: HOME $100,000 Matrix Code/Title: Direct Homeownership Assistance Priority Need: Housing Eligibility Citation: 92.206(c) National Objective Accomplishment Type/Goal: 15 units Performance Measures Objective Decent Housing Outcome Affordability Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 52 of 53 Eugene-Springfield 2014/15 One Year Action Plan City of Springfield HOME Investment Partnerships Program 53 Springfield 2014/15 HOME Table 3C HOME Grant Administration Project/Local ID: 0014 Project Name: HOME Grant Administration Project Location: 225 5th St., Springfield, OR 97477 Project Description: General management, oversight and coordination of Springfield HOME grant program. Project Explanation: Supports eligible HOME administrative costs. Amount shown includes utilizing 10% of projected Program Income for FY14-15 Start/Completion Dates: 7/01/2014 – 6/30/2015 Funding Sources: HOME $29,957 Matrix Code/Title: HOME Admin/Planning Costs of PJ Priority Need: Housing Eligibility Citation: 92.207 National Objective Accomplishment Type/Goal: n/a Performance Measures Objective n/a Outcome n/a Project Primary Purpose Help the Homeless No Help Persons with HIV/AIDS No Help Persons with Disabilities No Address Public Housing Needs No Attachment 2, Page 53 of 53