As a recipient of CDBG and HOME funds, the City of Billings is required to affirmatively further fair housing in our community. Staff expects HUD to release a notice of funding application for the Fair Housing Initiatives Program (FHIP), which supports local fair housing education and outreach activities. The FHIP grant also provides an opportunity for non-profit organizations to access federal funds to assist the City in facilitating HUD’s long-term strategic goal for equal opportunity in housing. In previous years, the City has been awarded nearly $293,000 in FHIP funding which provided funding for education and outreach activities.

In response to Council direction to fund fair housing activities through a competitive allocation process, staff issued a Request for Proposals (RFP) to identify partners for this year’s FHIP application. Partnering organizations include non-profit agencies and past sub-recipients included the Interfaith Hospitality Network, Yellowstone County Council on Aging, the Billings Partners for American Indian Home Ownership and the Community Housing Resource Board.

The City will be applying for the maximum award, which in previous years has been capped at $100,000. The anticipated program period will be the 12 month period starting January 1, 2011. The grant application may be due in June 2010 and would fund educational and outreach activities in the Billings community. Staff requests flexibility in preparing the grant application in order to request the maximum allowed award and will design the program period for activities according to HUD’s recommended standards.

If unable to pursue this grant, the City would not have additional funding to augment fair housing education and outreach activities for a comprehensive plan to address identified impediments to fair housing choice.

City Council approval would allow the City of Billings to assist in grant preparation and administration of funded activities. The grant requires identification of leveraged funding sources, including in-kind and donated services. The City is not required to identify additional cash resources for this application.

Staff recommends that the City Council authorize the submission of the FHIP grant and authorize City staff to negotiate and finalize the grant, if awarded.