Consideration of Amendments: Standards for the Housing Rehabilitation Program (SHRP)

Decide on the maximum per house investment and approve the amendments to the SHRP with the amount included

As described in the Work Session presentation on October 9th, the SHRP are being amended to include:

• The maximum amount per house of either $35,000 or, to be consistent with the Arizona Department of Housing (ADOH), $55,000, and
• Funding agency requirements regarding minimum scope of services (specifically, in this case, the ADOH weatherization standards) and other required technical and conforming changes. Changes include:
  • Language necessary for incorporation of the ADOH Weatherization Standards (required for ADOH),
  • Language directly stating the general philosophy of scope minimization as directed by City Council (not required for ADOH),
  • Language allowing the City, through the procurement process, to require general contractors be able to access the available rebates in order to save the City and the homeowner funds (not required for ADOH),
  • Language allowing the funding source to dictate the retention percentages when they are more stringent than City policy (required for ADOH),
  • Language requiring the receipt of the lien waiver prior to final release of retention per ADOH policy (required for ADOH).

Amending the SHRP will change the program guidelines and allow the City to compete for ADOH funds in the November 2012 grant cycle. Not amending the SHRP would prevent the City from pursuing the funds.






 

Amending the SHRP will allow the City to pursue grant funds from ADOH.  No City of Flagstaff General Fund dollars are impacted.  The decision regarding the per house maximum will impact the amount of grant funding the City is eligible to apply for, and thus may also impact the overall number of homes the funds could be stretched to serve.   Staff will still pursue scope minimization with either project maximum in place unless Council directs otherwise.

Livability through good neighborhoods, affordable housing and varied recreational activities.

 

• The SHRP was originally adopted 1/20/2004
• Revisions were adopted 5/18/2004
• Administrative revisions were adopted 6/3/2005
• Revisions were adopted 1/16/2007
• Revisions were adopted 1/3/12

1) Amend the SHRP to include the ADOH Weatherization Standards, the technical and conforming changes, and to have a project maximum of $55,000. 
2) Amend the SHRP to include the ADOH Weatherization Standards, the technical and conforming changes, and to have a project maximum of $35,000. 
3) Amend the SHRP to include specific changes, but keep the maximum investment per house at the current level of $24,999, or choose not to incorporate the ADOH Weatherization Standards. 
4) Not amend the SHRP. 

The City has provided an OOHRP since 1996.  The SHRP was first adopted in January of 2004 and has been updated as needed for funding agency compliance or to improve the program.  The OOHRP serves low income clients throughout the community, but predominantly in four target neighborhoods, with health, safety, code compliance, accessibility and other repairs through zero interest, no payment loans. 

The program goals as outlined by the SHRP and funding agencies are to:

• Improve the living conditions of low income city residents,
• Assist with housing repairs and improvements designed to eliminate health and safety hazards and address significant code violations,
• Incorporate age-in-place and accessibility features to allow elderly and disabled people to remain in their homes safely and comfortably,
• To financially stabilize low income households by reducing the need for constant maintenance and lowering utility costs,
• To increase pride of ownership and catalyze neighborhood revitalization,
• To improve and preserve the overall quality and appearance of the housing stock,
• To support community sustainability goals.   

The Arizona Department of Housing has released a Notice of Funding Availability (NOFA) that the City would be eligible to apply for with certain modifications to the SHRP including: amending the maximum investment per project, incorporating the ADOH Weatherization Standards, and other technical and conforming changes.  The NOFA requires the changes to the SHRP in order for a community to be eligible.  The NOFA bases potential funding awards on the amount of a community's maximum investment per project multiplied by the number of houses on the wait list.  ADOH has minimum thresholds for building condition and performance after the work has been completed which must be accomplished with each house.  However, regardless of the project maximum in the SHRP, projects will be designed to address all immediate health and safety hazards identified, to comply with all funding agency requirements, and to provide the work necessary to the household's needs, but where discretion is available staff will offer less comprehensive improvements in order to spread the resources to more households.

Amending the SHRP is necessary for the pursuit of available ADOH grant funds.

• If the project maximum is $55,000, the City is eligible for $423,500 in ADOH funds for the current NOFA,
• If the project maximum is $35,000, the City is eligible for $269,500 in ADOH funds for the current NOFA,
• The minimum number of projects anticipated using ADOH funds is seven (7); however if the higher maximum is selected it is anticipated that more households could be served,
• If the project maximum is not changed from $24,999 the City could still provide OOHRP services at a reduced level and exclusively with CDBG funds,
• Amending the SHRP as presented allows the most comprehensive funding source requirements to govern in each distinct project.  This is intended to comply with ADOH funding requirements while maintaining flexibility with less restricted funding sources such as CDBG.

The OOHRP provides health and safety repairs and improves the living conditions of low income home owners in Flagstaff.  Over half those served in recent years have been seniors.  Many clients maintained their homes well for years before decreased income and ability to self-perform led to gradual deterioration and home system failure.  Clients represent broad diversity within the community.  


Receipt of the ADOH award would allow tax dollars to flow back into the community to:

• Assist in maintaining the health and well being of the community's low income residents,
• Assist in financially stabilizing low income residents through addressing needed home repairs and reducing utility costs, 
• Preserve the already affordable housing stock,
• Provide work for small contractors in the community,
• Stimulate neighborhood revitalization.

Consult - Numerous stakeholders were involved and consulted regarding the potential revisions to the SHRP.  These consultations were generally one on one.

1) Amend the SHRP to include the ADOH Weatherization Standards, the technical and conforming changes, and to have a project maximum of $55,000. This would allow the City to apply for $423,500 from ADOH and to use the funds to perform a minimum of seven housing rehabilitation projects, but with the larger cap potentially more.

2) Amend the SHRP to include the ADOH Weatherization Standards, the technical and conforming changes, and to have a project maximum of $35,000. This would allow the City to apply for $269,500 and to use the funds to perform seven rehabilitation projects.

3) Amend the SHRP to include specific changes, but keep the maximum investment per house at the current level of $24,999, or choose not to incorporate the ADOH Weatherization Standards. This would prevent the City from pursuing the ADOH grant funds. The Owner Occupied Housing Rehabilitation Program (OOHRP) could continue at a smaller scale based on Community Development Block Grant (CDBG) funds exclusively.

4) Not amend the SHRP. This will prevent the City from pursuing the ADOH grant funds and continue the program based on CDBG funds exclusively.     

11/06/2012 - EAB - @$55,000