HomeMy WebLinkAboutItem 11 Fiscal Year 2008-2009 One-Year Action Plan of the Eugene-Springfield Consolidated Plan for Housing and Community Development (City of Springfield Section).
AGENDA ITEM SUMMARY Meeting Date: May 5, 2008
Meeting Type: Public Hearing
Department: Developmen~ervice~
Staff Contact: Kevin Ko \ ' tf f
S P R I N G FIE L D Staff Phone No: 726-2302 .%j
C I T Y C 0 U N C I L Estimated Time: 15 minutes dP"
ITEM TITLE: FISCAL YEAR 2008-2009 ONE-YEAR ACTION PLAN OF THE EUGENE-SPRINGFIELD
CONSOLIDA TED 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
FY2008-2009 One-Year Action Plan
2. Approve/not approve the Springfield section of the FY2008-2009 One-Year Action Plan
ISSUE
STATEMENT:
. In May of 2005, the Cities of Eugene and Springfield submitted to HOD a five-year Consolidated
Plan for Housing and Community Development, effective July 1, 2005 and expiring June 30, 2010.
One-Year Action Plans must be submitted to HOD prior to the beginning of each fiscal year as
amendments to the five-year Consolidated Plan, and are designed to indicate how communities
intend to fulfill the priorities established in the Consolidated Plan. This is the fourth One-Year
Action Plan under the current Consolidated Plan.
ATTACHMENT:
1. FY2008-2009 One-Year Action Plan (City of Springfield section)
DISCUSSION/
FINANCIAL
IMPACT:
The City of Springfield receives Community Development Block Grant (CDBG) funds as an
entitlement community and HOME Investment Partnerships Program (HOME) funds as a participant
in a HOME. consortium agreement with the City of Eugene. CDBG funds are awarded to
com,munities 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 21, 2008, to hear testimony on nine applications for CDBG or
HOME funding. Council approved funding for all nine projects.
At a work session on April 21, 2008, 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 closure in
Springfield, the growth and redevelopment of much of the urban core of the city seems to make
mobile home 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. At this time, 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 is being included in this Action Plan as an
amendment to the current Consolidated Plan.
The FY2008-2009 One Year Action Plan includes the CDBG and HOME funding allocations for
projects and activities and must be approved by both the City of Springfield and City of Eugene
prior to submission to HOD. The City of Springfield section of the document (less final fund
allocations) was available for a thirty-day review and comment period ending May 5, 2008. As of
,April 23rd, no written comments have been received. Oral testimony may be provided at a public
hearing before the Council on May 5, 2008. The City of Eugene section of the Plan is being adopted
separately by the Eugene City Council. The combined Eugene-Springfield One-Year Action Plan is
due to HUD on May 15,2008.
City of Springfield
One-Year Action Plan for FY2008/09
Summary of the One-Year Action Plan Process
-Reauirement
The Consolidated Plan is a requirement of the 1990 National Affordable Housing Act and the
Community Development Plan. The Consolidated Plan is required of entitlement communities
that receive funds under U.S. Department of Housing and Urban Development (HUD) housing
and service programs related to the needs of low- and moderate-income persons, including the
Community Development Slock Grant (CDSG) program, the.HOME Investment Partnerships
Program (HOME), the Emergency Shelter Grant (ESG), and Housing Opportunities for Persons
with AIDS (HOPWA). The One-Year Action Plan for CDSG and HOME is to be submitted
annually as updates and implementation strategies of the Consolidated Plan. ESG and HOPW A
programs, which are not entitlement programs, are not included in this document.
Timeline
The One-Year Action Plan must be submitted to HUD 45 days prior to the beginning of the
entitlement fiscal year. A citizen participation plan element of the Consolidated Plan requires
that interested parties have a 30-day opportunity to review and comment on the funding
proposals and that at least one public hearing be held. Information received from the public
hearing and during the comment period is to be attached to the document in summary form
when submitted to HUD. This One-Year Action Plan combines information and strategies for the
City of Eugene and the City of Springfield, under HUD rules that require consortiums of cities to
create consolidated documents for the purpose of CDSG and HOME funding.
The content of the One-Year Action Plan is mandated by rules and regulations formulated by
HUD. The submission of this One-Year Action Plan is the fourth annual action plan to the
Eugene-Springfield Consolidated Plan 2005.
City of Sprinafield Process
The Springfield Community Development Advisory Committee (CDAC) held a public hearing on
April 3, 2008 to review nine CDSG and HOME proposals. There were 26 citizens in attendance.
The CDAG heard testimony from 18 people who spoke in support of the proposed projects.
After hearing testimony, the CDAC deliberated for approximately one hour before formalizing a
recommendation for funding. Recommendations for funding were forwarded to the Springfield
City Council.
The Springfield City Council met on April 21, 2008 and held a public hearing on the CDSG and
HOME funding recommendations for FY2008/09. 16 citizens attended the public hearing and 13
testified in support of the COAC's recommendations. The Council considered t~stimony and
discussed the individual projects and community goals. After the public hearing, council voted 6-
o to approve the CDAC funding recommendations for CDSG and HOME projects as presented.
Attachment 1, page 1
WebsitelWhere to Obtain Cooies of the Plan
The Eugene-Springfield Consolidated Plan 2005 and the current One-Year Action Plan are
available on the Internet at:
http://www.euaene-or.aov/development
&
http://www.ci.sprinafield.or.us/dsd/housina/housina.forms.htm
Copies of the Eugene-Springfield Consolidated Plan 2005 and the current One-Year Action Plan
are also available at the following locations:
City of Eugene
Planning and Development Dep1.
99 W. 10th Ave.
Eugene, OR 97401
City of Springfield
Development Services Dep1.
225 5th S1.
Springfield, OR 97477
Attachment 1, page 2
Cityof Springfield
One-Year Action Plan for FY2008/09
Community Development Block Grant Program
Description
The City of Springfield receives an annual allocation of Community Development Block Grant
(CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The City
of Springfield's fiscal year 2008/2009 (FY2008/09) CDBG allocation is $605,018.
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 criteria 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 FY2008/09 CDBG allocation will leverage other resources that will
include but are not limited to the following: Springfield General Fund, other Federal resources,
State funds, Lane County Road Tax funds, local assessments for public improvements, private
donations, in-kind contributions, and contributions provided by the applicant agency.
Activities Benefitina Low- and Moderate-Income Persons
Generally, Springfield's CDBG-funded programs and projects are provided to low-income
re'sidents 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 a/')d 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). Funded programs and projects undergo periodic
staff monitoring to ensure compliance with CDBG regulations. '
Activities for the Prevention or Elimination of Slum and Bliahted 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. Beginning in the fall of 2003, the City of Springfield
began an 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
Attachment 1, page 3
- ,
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 COBG allocation for projects that
specifically address the problems of blight in the Downtown Redevelopment Area. The
amendments were sent to HUD for review and approval. The City received approval of the
amendments from HUO on February 12, 2004.
An' allocation table and summaries of each approved project can be found atthe end of this
section. Funding for grant administration and planning, public services and housing programs
was also approved by the Council.
Anti-Povertv and Homeless Housina Continuum of Care Service System
The City of Springfield works with its partners in local government, the City of Eugene and Lane
County, in a collaborative effort to address anti-poverty and homeless issues. The
intergovernmental Human Services Commission (HSC), composed of elected officials and
appointed members from these jurisdictions, allocates funding to address these issues. The
HSC is developing a work program that encompasses the following areas:
1. Crisis Access & Stabilization Service System.
2. Short-Term Basic Needs Services.
3. Transitional Housing Services.
4. Permanent Supportive Housing Services.
The Continuum of Care approach provides for multi-point access to services and linkages
among settings and services providers. Not all at-risk or homeless families and individuals will
need access to all four components. The HSC will receive an allocation of $90,753 in COBG
funds from the City of Springfield, which is equivalent to 15% of the City's FYOB/09 allocation.
To further incorporate the Continuum of Care philosophy into its delivery of servi.ces,
Springfield's Housing Programs manages an array of services that benefit very low and low-
income persons. The five programs being administered by the housing,programs staff address
homeless prevention and housing assistance, repair to dwellings owned by low and very low-
income households and homeownership through the SHOP. These programs are described
more fully in the following narratives (the SHOP narrative will be found in the HOME program
section).
The City of Springfield also partnered with the City of Eugene, Lane County and local non-profit
service providers to create Project Homeless Connect. Springfield provided staff and funding
and was represented on the'steering committee of this highly successful pilot project. The event
was attended by over 1,000 homeless in our community. This project will continue on an annual
or semi-annual basis.
City of SDrinafield COBG Funded Housina Proarams
· The City of Springfield continues to manage the successful CHORE program, one of five
City-run housing programs. This program is designed to provide assistance to very low-
income, primarily elderly or disabled homeowners in Springfield, and provides basic lawn
care services and exterior home maintenance. By helping to maintain the appearance of
their property, the CHORE program helps to keep the property and occupants from being
identified as "easy" targets of crime and vandalism based on their age and/or disability. In
addition to the benefit to the property owner, this activity also benefits the surrounding
neighborhood. The City plans to continue the CHORE program and is using approximately
Attachment 1, page 4
$5,000 of CDBG program income, if available, (not to exceed the 150/0 cap for public
services) to provide services to homeowners who are unable to perform these services on
their own. The program allows up to $250 annually to an eligible household for these
activities.
. The City of Springfield will continue to provide assistance to qualified low-income
homeowners through its Emergency Minor Home Repair Program and the Springfield Home
Improvement Program (SHIP). These programs are funded from CDBG program income
generated through SHIP loan repayments (when available) and an allocation from the new
CDBG grant. The City will allocate $120,000 from its new CDBG grant for this purpose.
· Emergency assistance to very low-income renters is 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. Funds are very limited and are available on a
first-come, first-served basis. '
Coordination
Coordination efforts between public assisted housing providers and private and government
health, and 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 meetingsallows 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 Housina Plan (CDBG and HOME Proarams)
The City of Springfield crafted a Fair ~ousing Plan in 1998 as part of its FY98/99 One-Year
Action Plan. The Fair Housing Plan was revised and updated in 2005 for inclusion in the
Eugene-Springfield Consolidated Plan 2005. A summary of strategies to address impediments
to fair housing opportunities, responsible agencies and a timetable of activities is included as
part of Springfield's Fair Housing Plan. The following are some of the strategies and programs
that the City of Springfield is using to affirmatively further fair housing:
Identifv areas of the Sprinafield Development Code that may unintentionallv restrict.
inhibit or otherwise impede the development of affordable housina - A primary goal of
Attachment 1, page 5
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. This strategy seeks to address impediments to housing
choice and affordability that may be contained in the Development Code. Staff from the
Planning Division is reviewing the Development Code for consistency and clarity, and is
making plan revisions where conflicting language exists. A clear and consistent code will
assist developers in creating and submitting complete and accurate plans and documents for
review, with the goals being less time and money spent by architects and engineers on
revisions and re-submittals and shorter review/approval times by City staff. This will result in
lower project costs and lower prices to homebuyers and renters. Staff is also reviewing
sections of the Development Code that, because of requirements or restrictions, may
inadvertently limit the range and diversity of housing developed in Springfield.
. Residential Lands - In 2006, the City of Springfield began work on a Residential Lands
Study (RLS), which includes both an inventory and needs analysis of resideritialland in
Springfield. The RLS addresses Statewide Planning Goal 1 0, which includes requirements
for addressing affordable housing needs. Goal 1 0 requires cities to adopt policies that
encourage housing at price ranges cqmmensurate with all income levels, including low
income housing needs. '
The RLS includes an analysis of existing land use policies in Springfield, also referred to as
"efficiency measures." These efficiency measures guide development in Springfield through
Code requirements that dictate density ranges, housing types, etc. This project is likely to
result in new or revised land use policies that further address affordable housing in
Springfield. Some examples include: increase density requirements; encourage transit
oriented development; allow more accessory dwellings units and duplexes; etc. While
Springfield currently has many land use policies that that help address affordable housing
needs, the City is looking at ways to improve. New or revised policies that result from the
RLS will likely increase the efficiency of land use in Springfield, which in turn will help
address rising housing costs in Springfield. By keeping abreast of housing needs, the City of
Springfield can better ensure the availability of housing opportunities for all of its citizens.
· Fair Housina Hotline - Our contract for a fair housing consultant and operator of a 24-hour
fair housing hotline is a key component in Springfield's ongoing commitment to affirmatively .
further fair housing. The fair housing consultant provides is a valuable resource to people
who feel that their rights to housing in Springfield have been violated. The consultant is also
a valuable resource for property managers and landlords whether or not they are the focus of
fair housing complaints. The fair housing consultant is able to educate and train them in the
current state of fair housing law, answer questions they may have regarding their
enforcement and eviction practices, and mediate tenant landlord disputes.. By providing
timely and accurate information to tenants, landlords, and property managers, the consultant
is able to assist in the resolution of many housing related complaints, before they escalate.
The City of Springfield's AI states under "Rental Practices" that the lack of fair housing
training being provided to rental managers and landlords may contribute to the higher
incidents of complaints in the rental market (relative to the ownership market). Our contract
with the fair housing consultant addresses this impediment, and supports Springfield's
certification to affirmatively further fair housing. The City of Springfield is contracting with the
Fair Housing Council of Oregon to provide these services for FY2008/09.
· Emeraencv Rental Assistance - In response to requests and queries from area housing
providers, the City of Springfield designed and implemented the Emergency Rental
Assistance Program (ERAP) in 2003. The providers identified a need for one-time
Attachment 1, page 6
assistance to help households who are facing eviction for non-payment of rent, due to
extraordinary or catastrophic circumstances. The program will pay 60% of the past-due rent
(up to $400). Strict programmatic requirements help to ensure that assistance is provided
where the need is greatest, and where the probability of long-term benefit is evident. By
curing evictions and helping people remain in their homes, this activity supports the City of
Springfield's certification to affirmatively further fair housing.
. Sprinafield Home Ownership Proaram - 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. Since it began in 1993, the SHOP
has assisted 391 low-income households to become first-time homeowners.
In FY95/96 the SHOP assistance was increased to $4,000 with a requirement that the buyer
contribute $1,500 of their own funds towards the purchase of the home. At that time the
average home purchased using-the SHOP sold for $64,700. In July of 2005 Housing
, Programs staff gained approval to increase the SHOP assistance to $6,000. The average
sales price for a HOME purchased using the SHOP was $123,000, a 900/0 increase in price
from the homes purchased in 1995. In first six months of the current fiscal year, only eight
homes were purchased using the SHOP with an average purchase price of $158,000. Not
only has the price range of affordable homes increased nearly 30% but 2/3 fewer SHOP
loans were processed in that period of time than in past years.
In 2007, the City of Springfield increased the maximum downpayment assistance to $10,000.
Through information gathered at counseling sessions with the Home Ownership Center of
Lane County, City staff has confirmed three very important issues facing first time home
buyers in our area. These issues were fnfluential in our decision to increase in the available
assistance:
Many first time homebuyers are buying their homes using lending instruments that
are higher risk in order to make up a deficit of upfront funding such as interest only
loans and 80/20 loans (two loans at different interest rates that make up 1000/0 of the
purchase price). The SHOP cannot be combined with either loan type but, if
increased, would provide additional funding at the point of sale to enable a buyer to
qualify for a more stable loan type.
Some lenders/brokers are unwilling to do the "extra work" required so that their
borrower can access the SHOP funds. An increase to $10,000 would make the
SHOP more attractive to those lenders and brokers and be enough of an incentive
for the borrower to shop around for a lender/broker willing to use the SHOP.
Young families looking to buy their first home are finding more affordable housing
in outlying areas lik~ Veneta, Creswell, Cottage Grove and Oakridge. The additional
down payment assistance provided by the SHOP may enable families to purchase
somewhat more expensive homes in Springfield, allowing them to live closer to jobs
and schools.
Springfield staff continues to work to build relationships with lenders and realtors to increase
outreach to the Hispanic population. Housing staff participated in an all Spanish speaking
Attachment 1, page 7
homeownership event in November of 2006. In the first nine months of 2008, 270/0 of the
SHOP loans have been to assist minority households in becoming first time homebuyers.
Since its inception in 1993, 170/0 of the households assisted with the SHOP have been
minority households, and 27%) were female-headed households. This activity addresses the
specific areas of "Sales Practices" and "Lender Practices" in Springfield's AI, and supports
the City of Springfield's certification to affirmatively further fair housing.
Homeownership in Downtown - At a public hearing on April 3, 2008, the CDAC approved
staff request to allow up to '$20,000 of SHOP assistance to eligible households for the
purchase of a home in the Downtown Redevelopment Area. The purpose of this action is to
encourage the development of affordable homeownership units in the downtown by creating
purchase incentives to assist potential buyers.
· Lanauaae as an Impediment to Fair Housina - The City of Springfield has taken great
strides to mitigate the impact of language as an impediment to fair housing opportunities. A
recent addition to the Housing Division, the City's Housing Planner is flue'nt in Spanish and
will be available to interpret for clients and translate related housing documents. All of the
current housing staff for the City of Springfield have participated voluntarily in a Beginning
Spanish class offered to City employees. One staff member took two semesters of college
level Spanish and is called on to assist with Spanish speaking citizens that visit City Hall. In
addition, all of the various housing program brochures have been printed in Spanish, and our
Fair Housing provider is fluent in Spanish. 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 in English.
· Housina 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. Beginning this funding year the City
has been fortunate enough to work closely with the Neighborhood Economic Development
Corporation (NEDCO) in their role as the Homeownership Center of Lane County. They
provide a comprehensive array of services that together help families achieve their goal of
homeownership. The services include providing information on first time homebuyer
programs, providinghomeownership education and counseling through the Threshold
Homeownership Education and Counseling Program and the ABC's of, Homebuying class,
working with lenders and real state 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. In July of 2006 the City was the host site for the Homeownership Center
of Lane County's Hispanic Homeownership and Financial Fair.
· 2008 Proiect Homeless Connect for Lane Countv- The City of Springfield was an active
supporter and participant in the first Project Homeless Connect for Lane County. Held at the
Lane Convention Center, the event drew nearly 1200 homeless and at-risk persons and over
800 community volunteers and staff provided -food, medical, housing and other services.
Springfield plans to continue to be involved with this event in the future. A link to the final
Report for the 2008 Project Homeless Connect for Lane County can be found on the
Housing and Community Development website at:
http://www.ci.sprinofield.or.us/dsd/Housino/housino.home.htm
Attachment 1, page 8
Reduction of Lead-Based Paint Hazard (COBG and HOME Proarams)
. Backaround - The health risks to young children posed by lead-based paint in residential
dwellings remains an important issue. Progress in research and technology during the past
25 years has improved the understanding of how children are poisoned and our knowledge
of how to better protect them, yet lead-based paint risks to children is still a significant
problem nationally. In an effort to address this problem, HUD published its Final Rule to
Title'X of the 1992 Housing and Community Development Act in September 1999. This rule,
referred to as the Lead Safe Housing Regulation, requires certain prescribed actions by HUD
grantees to 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. Because
of the insufficient numbers of qualified lead hazard contractors, an extension for compliance
was given until April 2001. The rule only affects residential structures built before 1978.
Currently, there is no plan for HUD or another section of the Federal government to provide
funding to jurisdictions to help pay for the cost of implementing the lead-based paint
regulations.
· City Administered Housina Rehabilitation Proarams - 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 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.
· Contractors who can provide the services required for paint stabilization and/or
abatement will need to be identified. Contractors who currently participate in city housing
programs will need to be made aware of the new requirements.
· City Administered Homeownership Proarams - The homeownership downpayment
assistance programs currently being administered by each City will also be affected by the
Lead Safe Housing Regulation, though not to the extent of the rehabilitation programs.
Compliance with the new requirements will mean 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. It will be 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. Sellers and buyers
may also choose to forego using downpayment assistance, if compliance with the lead-
based paint rule is perceived as being to burdensome.
· Non-Profit Housina Rehabilitation Proiects - Acquisition and rehabilitation activities of
older structures undert~ken by area non-profit housing providers receiving HUD funds will
also be affected. Since these projects often require HUD subsidies exceeding $25,000 per
Attachment 1 , page 9
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. Key staff of non-profits will need to be trained on the
lead-based paint rules, specifically project design, and administration and oversight.
Ultimate responsibility for project compliance will fall on the local jurisdiction that provided the
HUD funding to the project.
Other Activities to be Undertaken
Neiahborhood Revitalization Strateav Area (NRSA) - CDBG and HOME program staff
continue to research the viability of obtaining a Neighborhood Revitalization Strategy Area
(NRSA) designation from HUD for the neighborhood adjacent to and including downtown. More
specifically, the area is bounded on the south by South A Street, on the east by 10th Street, on the
north by Centennial Blvd. and on the westby Water St. and Kelly Blvd.
Creating a NRSA would provide the City with additional flexibility in the used of CDBG funds for
community development activities. Certain activities that currently would need to be considered
as activities "to eliminate conditions of slums and blight" could be considered as a "low-moderate
income area benefit" activity if done in conjunction with a NRSA. This is an important distinction,
because slum and blight activities address a secondary CDBG purpose and are subject to a 300/0
expenditure cap. Low-moderate income (LMI) benefit activities address the primary purpose of
the CDBG program, and are not subject to any expenditure cap. A NRSA designation would also
provide additional flexibility with neighborhood housing rehabilitation activities, by allowing the
aggregation of housing units to meet the 51 % public benefit standard required by the CDBG
program.
Staff introduced the NRSA to the Community Development Advisory Committee (CDAC) at a
meeting on January 24, 2008 and provided updated information to the CDAC on April 3, 2008.
The CDAC supports staff's continued pursuit of a NRSA designation. The City plans to have a
series of neighborhood and stakeholder meetings to better understand what the neighborhood
needs are, and what strategies can be used to address the identified needs. The City plans to
have completed the NRSA process in time to include it on the 2010 5-Year Consolidated Plan.
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 maybe
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 CDSG 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.
Attachment 1, page 10
. Purchase of properties in Glenwood for redevelopment.
Approval by the City Council will be required prior to acquiring any properties. Due to the
scarcity of available CDBG and HOME funds, it is anticipated that this provision will be used very
sparingly. However, inclusion of this provision in the Five-year Consolidated Plan is necessary
in order for the City to consider acquisition with CDBG or HOME funds as an option.
Relocation Assistance - At a work session on April 21, 2008, the Springfield City Council
di~ected 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 closure 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 interestto 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. At this time 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 is being included in this Action Plan as an
amendment to the current Consolidated Plan.
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 for three consecutive fiscal years to assist with capital
improvement and redevelopment projects in the downtown core. Projects will need to meet the
CDBG criteria for area "slum and blight" activities. FY07 -08 is the third and final year of the
original three-year set-aside. Upon the recommendation of the Community Development
Advisory Committee, the Springfield City Council approved an extension the downtown CDBG
set-aside through FY2008/09.
Attachment 1, page 11
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:
. 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
40/0 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.
· Brownfields Economic Development Initiative grant. The City of Springfield has a
pending application for a 2007 Brownfields Economic Development Initiative (BEDI) grant.
BED I grants are awarded through a competitive application process. Springfield has applied
for a BEDI grant of $1 ,000,000 to assist with the redevelopment of properties within and
adjacent to its downtown. BEDI funds must be used in conjunction with Section 108 funds
for economic redevelopment projects. If Springfield is successful in its BEDI application, an
application for $3,140,500 of Section 108 funds will be made to assist BED I projects.
Application for Section 108 funds is not competitive in nature. As this plan goes to print, the
City of Springfield is still awaiting national notification of BEDI awards for the 2007 year.
· . 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.
· 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 L1HTC award.
· Section 108 Loan Program. Springfield continues to review the possibility of applying to
HUD fora Section 108 loan to help with the development of CDBG eligible projects,
including projects which address issues of blight in the downtown section of the city.
Approval to move ahead with an application for Section 108 funding must be by Council
action and requires public notification and an opportunity for comment. If approval is
received, the City will be eligible to apply for up to five times its annual CDBG allocation.
Section 108 funds are treated as CDBG funds, and projects are subject to the same national
objectives and eligibility requirements. The City has a pending BED I application with HUD,
and if successful a Section 108 Loan application will be made to assist with the development
of potential capital projects_in and around the downtown district.
· Local Permit and Fee Waivers. The City of Springfield, has in the past, allocated funds for
the assumption of building permits, plan check fees, and system development charges for
Attachment 1, page 12
non-profit sponsored low- and moderate-income housing projects. The full amount of this
contribution is eligible as HOME match. Due to recent budget constraints, this program is
currently on hold and is expected to resume at a later date.
. 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 200/0
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.
A chart of the CDBG actiyiti~~9Pproved by the Springfield City Council on May 7, 2007 can be
. found on page A summa of Springfield's CDBG-funded
projects can be found on pages Activities were approved for
funding at a public hearing before the Springfield City Council.
Attachment 1, page 13
City of ~pringfield
FY2008/09 COBG Funding Allocations
Funding Amounts:
New Grant Funds $605,018
Prior Years $45,866
TOTAL AVAILABLE $650,884
Applicant Project Amount
New Prior
Funds Years
Head Start Facility acquisition for school and offices $50,884 $36,616
ShelterCare Interior renovation to increase safety and $35,000 0
Shankle Safe Haven functionality of existing facility
Springfield School District Installation of subsurface drainage system $9,250 $9,250
at Brattain playground
Lane Micro Business Micro-enterprise training and outreach $15,000 0
activities
Pearl Buck Center Facility improvements - HV AC system $26,657 0
Springfield Public Works Installation of accessibility ramps $53,000 0
City Housing Programs $120,000 0
Human Services Commission $90,753 0
Grant Administration $121,004 0
Unallocated funds $83,470 0
.
GRAND TOTAL $605,018 $45,866
Attachment 1, page 14
City of Springfield
Summary of FY2008/09 CDBG Proposals and Approved Funding Amounts
1. Project:
Location:
Developer:
Amount:
Total Proj. Cost:
Head Start Facility
1250 Main, Springfield
Head Start of Lane County
$ 87,500
$388,000
Head Start of Lane County is requesting $87,500 to assist the acquisition and rehab of the site
at 1250 Main Street. Head Start is currently leasing the site which had been a long vacant used
car lot. The site had become an attractive nuisance before Head Start began leasing the
property. They have invested $50,000 in the property in interior repairs, installation of ADA
accessible bathrooms, children's wash rooms and lighting, flooring and shelving.
The plans for fully renovating the property includes developing and outdoor play area, expanding
the facility to include meeting spaces for families and staff, and the addition of other modular
facilities for classroom space.
Head Start serves families with children 3-5 years old that meet income eligibility requirements
related to the Federal Poverty line. Homeless and foster children automatically qualify for the
program. The agency currently serves 863 children (61 % of the 1400 eligible children in the
County). Of those families 307 are in Springfield. There are 211 children currently on the wait
list, 90 of those are in Springfield.
Last year Head Start received State expansion dollars which allowed them to serve 75 additional
children in Lane County, 36 of those children reside, in Springfield. Many of the 36 children to be
served live in neighborhoods close to the 1250 Main street site.
The primary goals for Head Start are 1) to provide access and comprehensive services to
eligible children and their families and to 2) be a leader in family and child development
promoting quality early care and education. Head Start believes that purchasing this facility will
help them achieve their goals and provide the opportunity to be a part of community and
neighborhood pride by providing an attractive facility and a stable environment for children to
learn and play.
2. Project:
Location:
Developer:
Amount:
Total Proj. Cost:
Improvements to the Play Area at Brattain Elementary
Brattain Elementary - 425 10th Street, Springfield
Springfield School District
$ 9,250
$12,500
The Springfield School District is requesting $9,250 to assist with the renovation of the
neighborhood playground at Brattain Elementary School. This application is for the fourth and
final phase of the project. The project includes removal and replacement of the curbs to ensure
maximum use of the play area, add additional curbs to contain the play area, replace basketball
hoops and provide drainage improvements that will enhance the performance and durability of
- Attachment 1, page 15
the jogging/walking trail. Since 2003 this project has received $104,976 in CDBG funding.
The approval of funding for this multi-phased project promotes a healthy, accessible play
environment that balances fun, fitness, and outdoor learning throughout the year. Community
partners and neighbors will have a place for recreation and gathering at the comm'unity school
nestled in the heart of Springfield. The playground is available to members of the community
and will serve the area children and their families. This project is located in a low-mod income
area. The most recent Census information shows that 750/0 of the area households are of low-
mod income levels.
3. Project:
Location:
Developer:
Amount:
Total Proj. Cost:
Lane Micro Business -Micro Enterprise Training
1445 Willamette St, Eugene
Lane Micro Business
$15,000
$30,000
Lane Micro Business is requesting $15,000 to assist with the business development services to
15 to 20 low and moderate-income Springfield citizens. An Oregon IDA initiative account will
provide an additional $20,000 to assist with the training. The grant also proposes to provide
training in Spanish for the growing population of Latinos in ,the community. This service will
provide loan funds and a variety of training from peer group meetings 'to one on one
consultation, technical support, and intensive business training in a classroom setting, advocacy
and community outreach. The service will be free to income eligible clients.
A micro-enterprise is a small business with five or fewer employees that have capital needs of
less than $25,000 and whose owner is financially and/or socially/physically/educationally
disadvantaged. Lane Micro Business has been established since late 1998. In that time they
have provided counseling, resources, referrals, education, micro-loans, and access to markets
to hundreds of people. Lane Mfcro Business has been awarded funding to grow businesses in
Springfield since 2001.
4. Project:
Location:
Developer:
Amount:
Total Proj. Cost:
Pearl Buck Center Facility Improvements
3690 West 1st Ave, Eugene OR 97402
Pearl Buck Center Inc.
$26,657
$42,995
Pearl Buck Center is requesting $26,657 in CDBG funding to assist with the replacement of the
rooftop HV AC unit. Pearl Buck Center recently purchased the facility at 3690 West 1 st in order to
consolidate operations. The new site doubles their capacity to serve clients in the three
programs they operate; working for a better life vocational skills program, families with special
needs and the life enhancing activities program. Although the facility is located in Eugene at
least 62%) of the clients served live in Springfield.
The project funding gap will be closed with $16,338 in funding from Pearl Buck and $2,950 in
EWEB energy rebates. The Pearl Buck Center has not requested any assistance from the City
in the past.
Attachment 1, page 16
5. Project:
Location:
Developer:
Amount:
Total Proj. Cost:
Shankle Safe Haven Facility
1545 South Brooklyn Ave (Glenwood)
ShelterCare
$35,000
$83,800
ShelterCare is requesting an allocation of $35,000 to assist with the renovations of the food
service area in order to increase the level of safety, security, and sanitation for the growing
number of clients served at the site. The project is further described as including sinks,
counters, cabinets, kitchen expansion, increasing electrical capacity, commercial sprayer and
sanitary hand washing area. In the past ShelterCare has received aCDBG allocation of $5,024
for the replacement of the HV AC system, $8,891 for replacement of heating units and air
systems and $3,539 to expand the residential area of at the Shankle Facility and $15,000 to
provide wheelchair accessibility and safety measures for the homeless individuals they serve.
Shankle Safe Haven provides shelter and services to speCial needs homeless adults. The
program opened in 1997 and provides up to two years of transitional housing for up to 16
individuals who have been chronically homeless and are diagnosed with a severe, persistent
mental illness in its residential wing. In the other half of the building, daily activities, meals,
laundry and showers are available for a larger pool of clients (up to 40). A day activity center for
residents promotes success at independent living, increased skill level and income, and greater
self-determination.
6. Project:
Location:
Developer:
Amount:
Total Proj. Cost:
Downtown Accessibility Ramps
A Street and 4th Street - Justice Center vicinity
City of Springfield Public Works
$53,000
$626,000
The City of Springfield Public Works Department is requesting $53,000 to assist with the
installation of ADA standard curb ramps on A Street from Mill Street to 5th Street and 4th Street
from Main Street to C Street. ,The existing sidewalks are in good condition and will not be
replaced, but the current ramp configuration is not in compliance with ADA standards. This area
is adjacent to the new Justice Center and on the pedestrian route between the Lane Transit
District transfer station, the Justice Genter and downtown. The ramps will be extensively used as
the area continues to improve. CDSG funds will only be used for to install the required
pedestrian access ramps.
Attachment 1, page 17
City of Springfield
One-Year Action Plan for FY2008/09
HOME Investment Partnerships Program
Description
HOME Investment Partnerships Program (HOME) funds are received from the U.S. Department
of Housing and Urban Development (HUD) and administered by the Eugene-Springfield
Consortium for the metropolitan area. The primary purpose of the HOME program is to expand
the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental
housing, for low- and moderate-income families. HOME funds can be used for new construction
or rehabilitation of housing projects which will be affordable to low- and moderate-income
households, for the acquisition of eligible properties by for-profit and non-profit developers, for
tenant-based rental assistance programs, and for first-time homebuyer programs. HOME funds
can be provided to the project as a grant or as a loan, and the loan can be set up in various
ways; low- or no interest, amortized, deferred or forgiven according to the needs of the project.
Springfield's Fiscal Year 2008/2009 (FY2008/09) allocation of HOME funds is $421,298 and a
special allocation of $3,297 in American Dream Downpayment Incentive (ADDI) funding to
enhance the downpayment assistance program. In addition, $150,000 in program income is
also available, for a grand total of $574,595.
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 992.2.
A minimum of 150/0 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 for low- and moderate-income
residents of Springfield. '
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.
Attachment 1, page 18
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
40/0 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.
· Local Permit and Fee Waivers. The City of Springfield, has in the past, allocated funds for
the assumption of building permits, plan check fees, and system development charges for
non-profit sponsored low- and moderate-income housing projects. The full amount of this
contribution is eligible as HOME match. Due to recent budget constraints, this program is
currently on hold and is expected to resume at a later date.
· 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 250/0 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 200/0
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.
Attachment 1, page 19
. 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.
Leveraaina Federal Funds
The City of Springfield allocates HOME funds through a competitive Request for Proposal (RFP)
process. The current housing and supportive services needs of the city are outlined in the RFP
packet. Housing activities are categorized and prioritized by community need and fund
allotments are made by category. Also outlined in the packet are the City's criteria for ranking
projects. One criterion is efficiency of use of Federal funds, which can be demonstrated by
documenting the status and maximizing the amount of other funding sources. Thus, the most
competitive projects will have maximized the funds leveraged by Federal dollars. The City has
not had to impose any threshold percentages for leveraged or matched funds; the RFP process
has been self-regulating in this respect. The City of Springfield tracks HOME matching
contributions on a continual basis to ensure compliance with applicable HOME program
regulations, which requires a minimum 250/0 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 L1HTC award.
The Springfield HOME Agreement contains a Subsidy Layering Certification which identifies all
sources of project funding, and if additional Federal funds are being utilized or applied for
requires notification to the City be given by the HOME recipient. 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 contr~bute HOME funds to projects in the amount that is
necessary to provide affordable housing.
Activities to be Undertaken
HOME Funds for Interim Financina - the City of Springfield has successfully utilized HOME
funds for short term, interim financing of HOME eligible projects. Interim financing takes
advantage of HOME funds which have been awarded to a project, but have not yet been
expended for that purpose. These funds can be used for bridge, construction or other short term
financing needs of other projects. The developer who applies for HOME interim financing must
provide documentation of sufficient backup financing, and must sign a loan agreement that
provides for immediate repayment of the HOME funds when requested by the City. Because of
the immediacy of the need for interim financing, application for the funds is a non-competitive,
administrative review process. Utilizing HOME funds for interim financing of projects multiplies
the community benefit of the HOME program. Most recently, $200,000 of HOME interim
financing was used to assist with the construction of the Office condominiums in downtown
Springfield.
Purchase of Distressed, Undervalued or Beneficial Properties - With the rapid increase of
Attachment 1, page 20
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 COBG Section
for an expanded narrative)
Relocation Assistance - At a work session on April 21, 2008, the Springfield City Council
directed staff to investigate the viability of using COBG 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 closure 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. Undermost circumstances
relocation assistance by the City will be provided on a voluntary basis, and not as a required
action under the Uniform Relocation Act, COBG or HOME statutes. At this time it is unclear how
and in what capacity COBG and/or HOME funds will be used to assist with relocation, but
general relocation assistance as a possible activity is being included in this Action Plan as an
amendment to the current Consolidated Plan.
Geoaraphic Distribution
A project must be located within the Springfield city limits in order to be eligible for assistance
through the City's housing programs. The City has developed a Springfield Community Housing
Plan to identify areas of need within the city and to develop assistance programs that target
these needs. Need is generally based upon income levels, public safety issues, and physical
deterioration. The rationale behind such targeted assistance is to provide decent housing and a
suitable living environment principally for low- and moderate-income persons. Such assistance
may take the form of any activity described in this Plan. These areas will be limited in size to
)
generally not larger than a census block group. Though assistance will not be limited to the
targeted areas, it is anticipated that more comprehensive efforts will be directed at the targeted
areas.
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. The City
invested HOME funds in the development of the Royal Building apartments in the heart of
downtown. The project provides commercial space on the ground floor and 33 affordable one
bedroom rental units on floors 2-5. The HOME and CDBG funds invested in the project
leveraged nearly 5 million dollars in other funding. '
Minoritv Concentrations - Data from the 2000 Census shows that Springfield has three census
block groups that have moderate concentrations of minority/ethnic households. Census tract
21.01, block group 2 is located north of 1-105, south of Hayden Bridge Road, east of Pioneer
Parkway and west of 5th Street. Census tract 32.02, block group 2 is located to the west of
Pioneer Parkway and east of Kelly Butte and is more commonly referred to as the Meadow Park
neighborhood. Census tract 33, block group 6 is located north of Centennial Road, south of 1-
105, east of Pioneer Parkway and west of 10th Street. All three block groups have 150/0 or higher
minority households and 10% or higher Latino/Hispanic households. Please note that some of
the households may have self reported in both categories. All three of these block groups have
a high number of modestly priced apartment units and a majority of low- and moderate-income
Attachment 1, page 21
households.
Homeless and Soecial Needs Activities
The City of Springfield plans to continue to provide support for homeless and special needs
activities through the utilization of the HOME program funding.
Current and past HOME projects that serve this diverse target population are:
. Housing units for transitional and very low-income individuals.
. Transitional housing for homeless families.
. Group homes for developmentally disabled persons.
. Security deposit assistance for homeless families exiting shelter.
. Service enriched rental housing for special needs individuals.
. 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, the City of Springfield
plans to allocate HOME funds to support the following activities in the coming year:
· Acquisition and Rehabilitation of existing housing stock for low-income homeownership. .
· Rehabilitation of existing housing stock to be used for very low-income rental housing for
persons with disabilities.
· Downpayment assistance for low-income first-time homebuyers.
. - New construction of rental housing.
· 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.
Soecific HOMEProaram Reauirements
The City of Springfield currently provides assistance to homebuyers through two programs.
Each program has its own resale and recapture provisions.
· Sorinafield Homeownershio Proaram (SHOP) - This program provides down payment
assistance to low- and moderate-income first-time homebuyers. The current maximum
amount of assistance is $10,000. 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
Attachment 1, page 22
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 rehabbed 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.
· Lease/Ownership Proaram - This homeownership program is operated by local non-profit
agencies. The agency assists low-income families by preparing them for homeownership
through a series of classes. In addition, a portion of their rent each month is set-aside to
assist with the eventual purchase of the home. The HOME investment that is subject to
recapture in this program is the amount of HOME assistance that enabled the homebuyer to
purchase the dwelling unit. This recaptured amount is repaid to either the HOME
Consortium Trust fund or the CHDO which developed the housing and is to be used for
housing activities benefiting low-income households in Springfield. Recapture provisions
mayor may not include language to allow the participating jurisdiction to share in the built up
equity in the project. Terms and conditions of the recapture provisions are described in the
HOME Agreement for each project.
A chart of Sprin field's HOME activities approved by the Springfield City Council follows on page
Springfield's HOME projects are summarized on pages
,r Three HOME projects, grant administration, CHDO operating
support and housing program allocations were approved for funding at a Public Hearing before
the Springfield City Council on April 21, 2008 and are included in this One-Year Action Plan.
Attachment 1, page 23
Euaene-Sorinafield Consortium
Homeownershio Period of Affordabilitv-HOME Recaoture Provision
The required HOME period of affordability for homeownership projects is based on the amount
of HOME funds per unit: under $15,000 - five years, $15,000 to $40,000 - ten years, and over
$40,000 - fifteen years. In order to ensure affordability, either resale or recapture requirements
must be imposed. '
The HOME Consortium, consisting of the Cities of Eugene and Springfield, has selected the
recapture option for all homeownership projects and programs, as described in 24CFR
992.254(a)(5)(ii). The amount subject to recapture is based on the HOME assistance that
enabled the homebuyer to buy the dwelling. This amount is referred to as the "homebuyer
subsidy" and includes downpayment assistance. It doesn't include the amount of HOME
assistance between the cost of producing the unit and its fair market value. This is referred to
as the "development subsidy". HOME recapture provisions ensure that if; (a) 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 HOME assistance be shall be recaptured.
When the HOME assistance includes the homebuyer subsidy, the Cities have chosen to
recapture the full amount of the HOME subsidy whenever the initial owner sells the house.
HOME affordability requirements will end upon recapture of the HOME subsidy. The recaptured
funds will be deposited into the consortium HOME account and will provide assistance to future
HOME projects. If the HOME assistance is only used for the development subsidy and therefore
not subject to recapture, the resale option described in 24CFR 992.254(a)(5)(i) must be used.
For many new yonstruction projects, a substantial amount of HOME funds are granted on a
single unit. A "silent second" loan will be recorded against the property representing these
HOME funds. This will allow the mortgage amount to be affordable to a family or individual.
This amount would be repaid into the local HOME account at the time of sale by the initial
homeowner. This recapture scenario assumes appreciation in the real estate market. If the full
amount is not available, either due to market conditions or foreclosure, the cities will recapture
the net proceeds available from the sale.
Sprinofield HOME Allocation Aoreement
In addition to the provisions described above, the City of Springfield includes in its HOME
Agreement with for-profit developers an Allocation Agreement that describes the sharing of
equity in a project proportional to each party's investment. This Allocation Agreement comes
into effect only if the for-profit developer sells or otherwise transfers title to the property prior to
the expiration of the HOME compliance period. All proceeds allocated to the City by this
Agreement will be deposited into the HOME Trust Account, to be used for future HOME-eligible
housing projects. The primary purpose of the Allocation Agreement is to protect the integrity of
the HOME program by guarding against the taking of excess profits or windfall from the sale of a
HOME-assisted project by a for-profit developer.
Attachment 1, page 24
Monitorina
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 Proiect Monitorina - Client income certification sheets are submitted annually by
developers of HOME-funded projects and are placed in the project file. On-site monitorings
of income documentation are completed. Housing Quality Standards 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 Monitorina - 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.
· City Sinale Audit - The Federal HOME program is reviewed by the City's external auditors
annually.
· Proiect Manaaement - A project manager is assigned to each project. 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.
Attachment 1 , page 25
FY 2008/09 HOME Funding Allocations
Funding Amounts:
New Grant Funds
Previous Years
ADDI Funding
TOTAL AVAILABLE
$ 421,298
$ 150,000
$ 3,297
$ 574,595
. Applicant Project HOME Amount
New Funds Program ADDI
Income
Opportunity fund to acquire
NEDCO land for affordable $43,000 $150,000 0
homeownership
opportunities
HUD-811 Project funding
Brethren for the provision of
Community affordable housing for $215,000 0 0
Services people with severe
persistent mental illness.
Construction of five units in
Habitat for the 1 O-unit Meyer $100,000 0 0
Humanity Subdivision on 49th and A
streets
Grant Administration $42,130 0 0
City Housing Programs $103 0 $3,297
CHDO Operating $21,065 0 0
Subtotal $421,298 . $150,000 $3,297
GRAND TOTAL $574,595
Attachment 1, page 26
City of Springfield
Summary of FY2008/09 HOME Proposals and Approved Funding Amounts
1.
Project:
Location:
Developer:
Amount:
Total Proj. Cost:
Home Ownership Opportunity Fund
Scattered Sites, Springfield
Neighborhood Economic Development Corporation (NEDCO)
$250,000
$815,600
The Neighborhood Economic Development Corporation (NEDCO) is requesting $250,000 to create
. an opportunity fund that will allow them to act quickly to acquire land for the construction of five
homes in Springfield.
Given the current unstable real estate market land prices can fluctuate and opportunities present
themselves in short order. Having the fund would mean that NEDCO would pay fewer loan fees,
less interest on bank loans and the ability to respond to the market quickly. Once the land is
purchased, NEDCO will begin the process of building affordable housing on the lots.
The homes would be sold to low-income first time homebuyers that have gone through and
extensive home ownership training program, Threshold Program, through NEDCO. NEDCO
received funding in 2007 and completed one home and are near completion on two homes moved
and rehabbed on two lots on H Street.
2.
Project:
Location:
Developer:
Amount:
Total Proj. Cost:
Meyer Park Phase II
North A Street (west of 49th), Springfield
Habitat for Humanity
$100,000
$534,310
Habitat for Humanity is requesting $100,000 to assist with five units in the ten unit Meyer Park
subdivision located on North A Street just west of 49th Street in Springfield. In last year's funding
round they received an allocation of $60,000 to assist with three units for Phase I of the project.
Habitat has already completed several major components of Phase I including development of the
street connection and sidewalks to North A Street and service connections to all ten lots have been
installed. In addition, the construction required a bioswale for surface water/storm water collection
which has also been completed. Foundations for the first three lots have been prepared. They are
still awaiting final plat approval from the City and hope to begin construction in early April. The
houses will be two story 2 to 4 bedroom units (depending upon family size).
Habitat for Humanity serves and works in partnership with low-income individuals and families with
incomes from 30-6001<> of the area median. The families are selected based on need, willingness to
partner and ability to pay. Habitat currently has three qualified families waiting for the Meyer Park
homes. Two of the three families have already completed the required 200 hours of sweat equity
necessary before their house can be started. The third family is nearing the 200 hour mark and will
be complete when the third house in Phase I is set to begin construction.
Attachment 1, page 27
3.
Project:
Location:
Developer:
Amount:
Total Proj. Cost:
HUD 811- Project - Special Needs Housing
1082 Main Street, Springfield.
Brethren Community Services/Shelter Care
$215,000
$2,900,000
Brethren Community Services/Shelter Care has been awarded $215,000 in HOME funds to assist
with the construction of a 21 unit affordable rental housing complex for very low-income persons
with psychiatric disabilities. THE HOME funds will be used as gap funding for this HUD-811
project. The housing complex will be part of a mixed use urban village, of which the HUD-811
housing will be phase I, the master plan for the site will include community service facilities,
affordable housing, emergency services and commercial space.
The project will help residents transition to independent living. Supportive services will be provided
to promote interpersonal skills, income-generating skills, and greater self determination in affecting
constructive life changes all towards the goal of successful independent living.
Brethren Community Services owns the project site. Brethren housing has served 10 homeless
persons with severe persistent mental illness in transitional housing, with a homeless community
outreach facility, and retail outlet on this site for the past twenty years. Shelter Care serves over
1,300 individuals each year including; over 600 people with severe persistent mental illness; 38
survivors of traumatic head injury; and approximately 100 homeless families.
In previous years the City's CDBG and HOME funds have assisted with projects at the Brethren
site as well as ShelterCare's Shankle Safe Haven facility.
Attachment 1, page 28