Consideration of Resolution No. 2012-38: A resolution authorizing the submission of an Owner Occupied Housing Rehabilitation grant application to the Arizona Department of Housing for $____ in State Housing Funds and, if awarded, delegating the acceptance.

Adoption of Resolution No. 2012-38 will authorize the submission of a grant application to the Arizona Department of Housing (ADOH) for State Housing Funds for the Owner Occupied Housing Rehabilitation (OOHR) program. If awarded funding, approval of the resolution will also delegate the acceptance of the grant award to the City Manager.

Subsidiary Decisions Points: None

• Application for ADOH funding is based on the maximum amount of investment per home multiplied by the minimum number of homes to be served. Currently the City has a wait list of seven (7) households.
• If the maximum investment per home is $55,000, the City is able to apply for $423,500 ($55,000 in (maximum) investment multiplied by 7 homes plus 10% for grant administration)
• If the maximum investment per home is $35,000, the City is able to apply for $269,500 ($35,000 in (maximum) investment multiplied by 7 homes plus 10% for grant administration)
• To strengthen the grant application, the City has the option to list leveraged funding. The application leverages a total of $200,000 from Community Development Block Grant (CDBG) funding. These CDBG funds have already been awarded and approved by City Council for this use.

Livability through good neighborhoods, affordable housing and varied recreational activities

Through the use of State Housing Funds, leveraged with federal CDBG funds, the OOHR Program furthers both neighborhood revitalization and affordable housing in Flagstaff.

There have been no previous Council decisions on this application.

A) Adopt Resolution No. 2012-38.
B) Do not Apply for State Housing Funds and decrease the funding and scope of the OOHR Program.
C) Increase future CDBG funding for OOHR to match the community need for this program.

For the last four (4) years the City of Flagstaff has been a successful recipient of State Housing Funds. Most recently, the City was awarded $330,000 in State Housing Funds in January 2012 and anticipates assisting 12 households with that funding upon completion of the contract.

To be eligible for the Owner Occupied Housing Rehabilitation program homes must be owned by low income homeowners within the city limits of Flagstaff, and earning no greater than 80% of the U.S. Department of Housing and Urban Development (HUD) Area Median Income (AMI), or currently $50,350 for a family of four (4). The program provides assistance utilizing a non-interest bearing loan secured by deed of trust and promissory note. The primary objectives of the OOHR program are as follows: 1) elimination of health and safety hazards in the home; 2) financial stabilization of low income households through the elimination of constant home repair and reduction in utility costs; 3) preservation of the affordable housing stock; 4) revitalization of low income neighborhoods.

The City of Flagstaff has successfully administered the Owner Occupied Housing Rehabilitation Program for the last sixteen (16) years and State Housing Funds for the last four (4) years and has the capacity, both in community need and staffing, to continue this program. If granted, this funding leveraged with CDBG funding, would allow for a minimum of seven (7) low income owner-occupied housing rehabilitations. Due to a philosophy of scope minimization the funding is anticipated to provide more than seven (7) rehabilitations.

Continuing the OOHR Program will assist in sustaining and preserving the most abundant stock of affordable housing in Flagstaff, currently owned by low income residents. It is also the only program of this type that can provide accessibility modifications for low income disabled Flagstaff residents.

INVOLVE: The need for the OOHR program is well documented in the City of Flagstaff’s FY 2011-2015 Consolidated Plan and the 2012/2013 Annual Action Plan, both adopted by Council and approved by HUD. As a CDBG entitlement community, the City’s Housing Section conducts at least three (3) public hearings per year to solicit public input and to discuss both housing and community development needs.

A) Approve Resolution No. 2012-38 - Approval of the resolution will allow the City to apply for additional funding for the Owner Occupied Housing Rehabilitation Program. Additional funding will enable the City to serve more Flagstaff households with home rehabilitation assistance.

B) Do not Apply for State Housing Funds and decrease the funding and scope of the OOHR Program - Not applying for ADOH funding will limit the program funding to CDBG funds only and will decrease the amount of assistance the City is able to provide to the community.

C) Increase future CDBG funding for OOHR to match the community need for this program - Council could increase future CDBG allocations to help meet the need for rehabilitation assistance in Flagstaff.

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