Loading...
HomeMy WebLinkAboutItem 05 Request to Allocate Contingency Funds to the St. Vincent DePaul (SVDP) Project , I AGENDA ITEM SUMMARY Meeting Date: Meeting Type: Department: Staff Contact: Staff Phone No: Estimated Time: January 14,2007 Work Session ~ Development Service Jodi Peterson and Bill Gri1e 4.1\ \ 726-3799 and 726-3619 . 't::).W 10 minutes SPRINGFIELD CITY COUNCIL ITEM TITLE: REQUEST TO ALLOCATE CONTINGENCY FUNDS TO THE ST. VINCENT DE PAUL (SVDP) PROJECT Staff is requesting that the $330,000 HOME Investment Partnership contract between the City and St. Vincent de Paul be amended to allow up to $99,000 in BUD allowable contingency funding to close a funding gap for the $6.2 million HUn 202, Senior Housing project. The City has partnered with SVDP in the effort to provide affordable housing to very low-income seniors in our community since 2003 when SVDP proposed to construct a 55 unit, three story affordable housing facility in Springfield using HUD 202 funds. In 2003 the City awarded $330,000 in Community Development Block Grant (CDBG) funds to SVDP to purchase the site at 3rd and S Streets. The BUD 202 funds are awarded through a competitive application process. Site control is key to a successful application. With the City making the first commitment and investment in the project, SVDP aggressively pursued the BUD 202 funding. Three funding rounds, years aild applications later, SVDP received an award of$5,181,000 in BUD 202 funding in November 2006. ACTION REQUESTED: ISSUE STATEMENT: SVDP immediately encountered a funding gap for the $6.2 million dollar project. The gap was attributed to the loss of future Lane County Road Funds designated for affordable housing projects and additional City requirements for sewer and storm water when developing the site (due in part to the seller not disclosing certain issues with developing the property and changes in the requirements for storm water and sewer since the purchase in 2003). In funding year 2007 SVDP applied for and was awarded $330,000 in HOME Investment Partnership funding" At this point, the City has committed $660,000, total, to the project. Once SVDP received the award from the City they began the plan review process and the documents required by BUD to release the BUD 202 funds. Late in that process SVDP discovered that approximately $111,000 in Willamalane SDCs were due as part of the permitting fee. These charges were not communicated to SVDP, and thus were not part of the original budget process and original request for HOME funds. Staff is reviewing internal procedures to ensure that this situation is avoided in the future. SVDP staff recently indicated that fmal paperwork required for release of the grant is due to BUD by January 25th. SVDP stressed that it cannot proceed with BUD'S' process if there is a funding gap and it stands to lose the $5,181,000 BUD 202 funding with a known shortfall. ATTACHMENTS: Staff is certain that had SVDP known of the additional project costs at the time of the second application' for funding, it would have requested additional funding at that time. Staff also acknowledges some responsibili~ for the shortfall as we could have recognized the issue earlier. 1. Portion of the Consolidated Plan Addressing the Contingency Allowance of30% or Less Change In a Project' Although it is customary for projects of this size to have a contingency budget, the Federal funds do not allow funds to be' awarded for the sole purpose of anticipating the unexpected. Instead, HOD allows the City to allocate additional funding to a project while it is still underway. There are HOME contingency funds available to cover the SVDP shortfall. A contingency funding award of $99,000 to this project would adequately meet SVDP's needs and not deplete the fund or preclude the City from assisting other non-profits. DISCUSSION/ FINANCIAL IMPACT: Awarding contingency funds of up to 30% of the project award is a routine matter and is part of the City's Consolidated Plan and has been approved by the City Council. This action can be taken administratively by staff without going through the public process. The importance of the, project and the dollar amount requested prompts to seek Council guidance here. Staff would draft the amendment to allow for only enough funding to fill the project gap. SVDP has indicated that they can use other grant funds to cover the $12,000 difference between a HOME contingency award and the actual Willamalane SDCs fee. If they are required to wait until the next funding round to request additional funding the project will be idled and a construction season will be lost. Without HOME funds to close the gap SVDP may lose the $5,181,000 award from HUD. ! , Approved by City Council On May 2, 2005 as part of a public hearing City of Springfield Consolidated Plan 2005 Community Development Block Grant Program HOME Investment Partnerships Program Citizen Participation Plan Citizen Participation The Community Development Advisory Committee (CDAC) is a City advisory committee that reviews and makes funding recommendations for the Community Development Block Grant (CDBG) program and the HOME Investment Partnerships Program. The CDAC is made up of eight members: One from the Springfield City Council, one from the Springfield Planning Commission, and six at large members from the Springfield community. Members may serve two 4-year terms. Appointments are ratified by the Springfield City Council. The intergovernmental Housing Policy Board serves in an advisory capacity to the City Council on the use of CDBG and HOME funds as they relate to housing issues. This board is comprised of elected officials; City Councilors from Eugene and Springfield and a Lane County Commissioner and at-large members, including low-income housing advocates and a low-income representative. At-large members may serve up to three 2-year terms. Appointments are made by the elected officials. Allocation Process Springfield typically holds its CDBGIHOME allocation process in the winter-spring to allocate funds which will become available from HUD at the start of the next fiscal year. During the allocation process, the CDAC will hold two to three public hearings. The first meeting is a public hearing to hear testimony regarding community needs, funding preferences and priorities. It is also a planning session to set an outline and timetable for the CDBG and HOME allocation process. The second public hearing is to hear testimony regarding the specific proposals for funding that the City receives. The CDAC will deliberate and make recommendations for funding based on the testimony received, community needs and priorities. The funding, recommendations are then forwarded to the City Council, which will conduct a public hearing to hear testimony regarding the CDAC's funding recommendations. The City Council will approve, reject or modify the recommendations as necessary prior to, final approval. Amendments to the Consolidated Plan Activities funded in the One-Year Action Plans are based on goals set in the five year Consolidated Plan. An amendment is required whenever there is a change in projects or ,priorities, such a new project not described in the current Consolidated Plan or One-Year Action Plan or ifthere is a change to the purpose, location, beneficiaries of a project, or more change in scope or increase in budget of more that.30%. " . When an amendment to the Consolidated Plan is required, a 30 day written public comment period when be advertised in the Register-Guard newspaper. The appropriate citizen advisory , committee, depending on program area, will conduct a public hearing on the proposed action and will make a recommendation. The City Council will take final action on the proposed amendment. Meetin!! Notice Meetings are announced through mailings to interested parties and through the Springfield News, a newspaper of general circulation. In addition, public hearings and 30-day written comment periods are announced by legal advertisements in the Springfield News. Meetin!! Locations/Accommodations Meeting locations are wheelchair accessible. For the hearing impaired, an interpreter can be provided with 48 hours notice prior to the meeting. For the sight impaired, a reader can be made available prior to the meeting time to review the agenda and minutes. For non-English speaking residents, the services of a foreign language interpreter can be provided with 72 hours notice prior to the meeting. To arrange for any of these services, contact the Community Planning and Revitalization Division at 726-2358. MaHin!! List The City maintains a mailing list of persons and organizations interested in the Community Development Block Grant and HOME Programs. Names are added UpOll request. The list is periodically reviewed by the advisory boards and committees and City staff. Packets are generally mailed to the public the week prior to a regular meeting. Technical Assistance Technical assistance is provided by City staff for each program area. The Community Planning and Revitalization Division provides assistance relating to housing and public facilities, including housing rehabilitation and downpayment assistance. Division staff also provides assistance to developers of affordable housing projects on an ongoing basis. The Public Works Department staff work with neighbors to identifY capital improvement needs. Lane County Health and Human Services staff work closely with local social service providers who receive funding through the Human Services Commission. Response to Written Complaints/Grievances The City will respond to written comments, including complaints, from residents regarding the City's CDBG and HOME programs. The City will provide timely and substantive responses in writing to all written complaints by residents. Written responses to written complaints will be provided within 15 working days, where practicable. Access to Records The Consolidated Plan, One-Year Action Plans, amendments to the Consolidated Plan, meeting packets, minutes and other information relating to the Community Developmen~ Block Grant and HOME Investment Partnerships Program are available for review from 8 AM - 5 PM, Monday through Friday, at the Development Services Department located in Springfield City Hall, 225 Fifth Street, Springfield, Oregon 97477.