OVERVIEW
The Department of Planning Building and Development's HUD Community Resources Division manages the federal funds the City receives from the US Department of Housing and Urban Development (HUD). Our activities include:
- Budget / Plan Development
- Contract Development/Administration
- Project Monitoring
- Reporting
- Technical Assistance
- Administration of City Housing Programs
Roanoke is an entitlement community under HUD program guidelines. This means that HUD funds are allocated to the City every year using a formula based on our population, income levels, and other factors. The amount the City receives depends upon how much Congress appropriates for the entire nation.
For the FY 2013-2014 period, the City of Roanoke anticipates receiving about $2.0 million in new funds from HUD in three (3)grants:
- Community Development Block Grant (CDBG),
- HOME Investment Partnerships (HOME), and
- Emergency Solutions Grant (ESG)
CITY OF ROANOKE
HUD ENTITLEMENT GRANTS
FY 2013-2014 ANNUAL PLAN
Overview
The City of Roanoke anticipates receiving about $1.7 million or more in new funds annually from the U.S. Department of Housing and Urban Development (HUD) in three grants: Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Solutions Grant (ESG). Roanoke is an entitlement community under these HUD programs. This means that HUD funds are allocated to the City every year using a formula based on population, income levels, and other factors. The amount that the City receives then depends on how much Congress appropriates for the entire nation. HUD entitlement funding is also subject to the 5% reduction due to sequestration for the next Congressional Appropriation, which would be in addition to any cuts to HUD that Congress sees fit.
CDBG
CDBG funds have been allocated to the City since 1975 and can be used for activities ranging from housing to economic development and from job training to construction projects. For the 2013-2014 program year, the City estimates receiving $1.2 million in new CDBG funds. Preliminary allocations for FY 2013-14 reflect a reduction of current year CDBG funds by $220,481, a 15% decrease. However, with carry-over and program income, the City estimates that a total of $2.0 million in CDBG funds will be available. CDBG funds are primarily intended to benefit low- and moderate-income persons and areas, though a limited amount can also be used for reducing slums and blight. The amount of funds that can be used for administration, planning and human services is also limited by regulation.
HOME
The HOME program is exclusively for housing to benefit those of low or moderate income, including rehabilitation, new construction, homeownership assistance and improvements to rental housing. The City has been receiving HOME funds since 1992. For the 2013-2014 program year, the City estimates receiving $352,500 in new HOME funds. This represents a reduction of 20% ($88,131) from current year allocations. Including carry-over and program income, the City estimates that a total of $792,250 in HOME funds will be available. HOME funds require a 12.5% match. At least 15% of each annual HOME grant must be invested in qualifying projects conducted by Community Housing Development Organizations (“CHDOs”).
ESG
The HUD priorities for the Emergency Solutions Grants have changed from the former Emergency Shelter Grants that the city had previously received. The emphasis for use of these funds has shifted from providing for activities that assist homeless individuals and families to early intervention and prevention of homelessness. HUD has issued new rules for the distribution of these funds by entitlement communities, which are being assessed by city staff and the Roanoke Valley Council of Community Services. Total funding in FY 2013-2014 is expected to decrease to $130,257 from the FY 2011-12 entitlement of $144,729, a decrease of 10%.
Available Funding for 2013-2014 Program Year:
The total funding anticipated for Fiscal Year 2013-2014 from CDBG, HOME and ESG sources is $2,923,381, but relies heavily on prior year uncommitted or available funds of $1.1 million.
Allocation of Funding for 2013-2014 Program Year (Pending City Counci and HUD Approval):
The City’s 2013-2014 Annual Update outlines the use of approximately $2.9 million in CDBG, HOME and ESG funds, including carry-over and anticipated program income. These funds will support an array of housing, homeless prevention, public services, and neighborhood and economic development activities, and planning and administrative costs associated with these activities.
• Economic Development – No economic development projects were submitted. The Hotel Roanoke Section 108 Loan final payment will be made in April 2013, but one final payment of program income will be generated and applied to available revenue for 2013-2014.
• Homeless Services -- $123,900 for homeless prevention and rapid re-housing through Emergency Solutions Grants for programming to be determined by the City’s Continuum of Care Committee and HUD staff.
• Housing Development -- $2,082,250 for new construction and housing rehabilitation for homeownership, downpayment and closing costs assistance, and the rehabilitation of owner- and renter-occupied homes.
• Human Services -- $251,750 for services such as social services, after-school educational development, and other youth and family programs.
• Neighborhood Development – $83,997 which includes $8,997 for grants to two (2) neighborhood organizations for small community improvement projects not otherwise categorized and $75,000 for infrastructure improvements targeted in the West End NRSA. Many neighborhood organizations submitted applications for training and capacity building. These costs will be covered as a planning function and paid from administrative funds to better comply with HUD regulations.
• Planning and Administration -- $381,484 for historic and other environmental review costs, costs to prepare an Analysis of Impediments to Fair Housing Choice and conduct fair housing outreach and education and staffing and operating costs incurred by the City to administer the CDBG, HOME and ESG funds.
Distribution of Housing Funds:
For 2013-2014, the City estimates its CDBG and HOME housing funds will be allocated as follows:
• $557,500 for activities encouraging and facilitating the repair, maintenance, improvement or re-use of existing owner-occupied or rental housing.
• $767,750 for activities encouraging and facilitating new homeownership.
Project Locations:
While some of the projects in the 2013-14 Annual Plan affect areas throughout the City of Roanoke, the City will be in the second year of a multi-year targeting of HUD resources to projects serving the West End Target Area and designated areas such as the City’s Conservation Areas and Rehabilitation Districts.
Lead Agencies:
The HUD Community Resources Division of the City’s Department of Planning, Building and Development is the lead organization for developing and administering the Consolidated Plan and the Annual Updates. Numerous City offices and departments and other public, nonprofit and community organizations conduct projects funded in whole or in part with CDBG, HOME or ESG funds. The specific projects, agencies and funding recommended for the 2013-2014 period are given in the following section.
2013-2014 Recommended Projects, Agencies and Funding:
• African American Studies in Contemporary Issues (TAP) Funds to administer and monitor this program which targets freshman African American male students at William Fleming High School who are at risk of not completing high school. Students remain in the program throughout the school year. Funding provides staffing and program costs associated with the curriculum to those targeted students. (Requested $25,000. Recommended: $24,000).
• Aspire Connect Program – Aspire 2016 Rites of Passage Program (Apple Ridge Farm, Inc.) Funding will provide for staffing to assist 100 students from five elementary schools, and tracked from the third grade, with the academic competencies, interpersonal skills and resources needed to be successful in middle school and achieve graduation from high school in June 2016. (Requested. $26,500 Recommended: $26,250)
• Brain Injury Services Case Management (BISSWVA) Funds requested to provide case management services to city residents who have disabling brain injuries. Program seeks to provide support to qualifying individuals for home health care, rehabilitation services and job skills training. (Requested: $45,000. Recommended: $29,000)
• Bridging the Gap to Unemployment (Goodwill Industries of the Roanoke Valley) Program proposed to provide job training and job retention support services to low-moderate income workers within the city. Also provide clinical wrap-around services such as short term child care, work clothing, transportation, emergency housing and utility payments, and financial literacy training to promote family and individual economic stability and self-sufficiency. (Requested $80,000; Recommended $0)
• Code Enforcement (Dept. of Planning, Bldg and Dev.) Funds a portion of staff and other operating costs for City enforcement of the building maintenance and other codes in low-to-moderate income neighborhoods. (Current Year Funding $100,000. Recommended: $100,000)
• Community Based Prevention Services (Department of Social Services) Funds for staff and out-stationing costs to increase the accessibility and use of child abuse and neglect prevention services and reduce the necessity of foster care placements. (Current Year Funding: $98,500. Recommended: $98,500)
• Community Housing Resource Center (Council of Community Services) Provide homeless prevention services in the form of assistance with rental payments and/or security deposits to extremely low income families to prevent the family from becoming homeless. The CHRC will also provide rapid re-housing services in the form of assistance with first month’s rent and/or security deposits targeted for chronically homeless families. (Requested $68,750; Recommended $55,000)
• Demolition (Dept. of Planning, Bldg and Dev.) Funds to demolish vacant condemned structures in an advanced state of deterioration. (Current Year Funding: $50,000. Recommended $32,250)
• Down Payment Assistance Program (Dept. of Planning, Bldg and Dev.) Funds for staffing and operating costs and project funds to provide 5-year forgivable, 0% interest loans of up to $8,000 for down payment and closing costs to assist low/mod-income families to buy homes in the City. Despite success and meeting target goals, proposed funding to be cut due to reduced HUD funds. However, refocus efforts in 2013-2014 to target 25% of funds to West End Target Area as opposed to city-wide. (Current Year Funding $290,000. Recommended: $257,000)
• Emergency Home Repair Program (Total Action Against Poverty) Limited and emergency repairs and weatherization services to low/mod-income owner-occupied single-family homes. Program requests to target 17 owner-occupied homes for emergency repairs, with 10 of these homes also receiving weatherization services. (Requested: $125,000 Recommended: $46,500)
• Empowering Individuals with Disabilities (Blue Ridge Independent Living Center) Install special needs home improvements such as ramps and grab bars for 40 extremely low to low income homeowners with disabilities to meet independent living needs. (Requested: $106,000. Recommended: $81,250)
• Energy Efficient Home Rehabilitation Program (Dept. of Planning, Bldg and Dev.) Funds for staffing and operating costs and project funds to provide loans of up to $46,000 for owner-occupied housing rehabilitation in West End Target Area. This program will be a market rate initiative with a repayment of 0% loans for rehabilitation. This program will ultimately produce program income and become self-sustainable over time. (Current Year Funding: $250,000. Recommended: $250,000).
• Environmental Review Services (Dept. of Planning, Bldg and Dev.) Contracted environmental review services required by federal regulations prior to altering the appearance of housing or other structures with CDBG/HOME assistance. The costs of these services will be incorporated into the delivery services of applicable agency projects or through the Community Resources planning and administration account. (Current Year Funding: $10,000. Recommended: $0).
• Fair Housing Outreach and Education (Dept. of Planning, Bldg and Dev.) Funds for fair housing outreach and education activities to build community awareness of the fair housing laws related to home sales, rentals and accommodations. Funds include a percentage of staffing costs to support the Fair Housing Board, but will be incorporated into Community Resources planning and administration account. (Current Year Funding: $15,000. Recommended: $0)
• Family Advocates Program (Children’s Trust) Funding to provide support services to the non-offending caregivers in cases of alleged child abuse, resulting in the greater protection and support for the alleged child victim. (Requested: $27,000. Recommended $27,000.)
• Family Promise of Greater Roanoke (formerly Roanoke Valley Interfaith Hospitality Network) Essential services and maintenance/operation of the shelter; fuel and maintenance of the program’s van; purchase of cots and bedding; client assistance funds; and housing security deposits. (Requested: $26,500. Recommended: $22,400)
• FHLB Set-Aside Program (Freedom First Credit Union) Funds used to partially fund administrative costs to administer Federal Home Loan Bank of Atlanta (FHLB) Set-aside program for low to moderate income homeowners and homebuyers for down payment assistance, homeowner rehab for energy efficiency or rehabilitation for accessibility. (Requested $75,000; Recommended $0).
• Historic Review Services (Dept. of Planning, Bldg and Dev.) Contracted historic review services required by federal regulations prior to altering the appearance of housing or other structures with CDBG/HOME assistance. The costs of these services will be incorporated into the delivery services of applicable agency projects or through the Community Resources planning and administration account. (Current Year Funding: $10,000. Recommended: $0)
• Hotel Roanoke Section 108 Loan Repayment (Department of Finance) The City will pay forward the last of the 20 annual payments by close of FY 12-13, reducing our liability in 2013-2014. However, program income generated from the Hotel for debt service will be paid for a final time in 2013-2014 so program income is still available for the year to fund other programs. (Current Year Funding: $502,203. Recommended: $0)
• Housing Stabilization for Families in Need (Council of Community Services/Community Housing Resource Center). Funds to partially replace Homelessness Prevention and Rapid Re-Housing Program previously funded with ARRA grants. The program will use the CDBG funds to leverage additional resources to assist with homeless prevention and re-housing activities. (Requested: $50,000. Recommended $47,000)
• HUD Administrative Funds (Dept. of Planning, Bldg and Dev.) Staffing and other operating costs associated with the general administration of the City’s CDBG, HOME and ESG funds. Limits for each program are 20% for CDBG, 10% for HOME and 7.5% for ESG, although only 5% of administrative costs will be applied in 2013-2014. The maximum allowance is budgeted due to many planning and administrative activities previously separated out will be charged to this account to satisfy HUD reporting requirements (Current Year Funding: $272,000. Recommended: $381,484)
• Infrastructure Improvements (City of Roanoke) CDBG funds used for public infrastructure improvements in West End Target Area, such as sidewalks, curb and gutters, storm water management, and streetscape improvements. (Current Year Funding: $0. Recommended $75,000).
• Neighborhood Development Grant Program (Dept. of Planning, Bldg and Dev.) Provides for grants of up to $25,000 to neighborhood organizations in predominantly low-mod-income neighborhoods for eligible projects such as housing, crime prevention and public facilities and infrastructure projects. Activities related to training and capacity development of eligible neighborhood associations will be paid from HUD planning and administrative accounts. (Current Year Funding: $45,455. Recommended: $8,987) Applications were received from the following organizations:
o Belmont Neighborhood Association
o Fairland Civic Association
o Loudon-Melrose Neighborhood Organization
o Melrose-Rugby Neighborhood Forum
o Northwest Neighborhood Environmental Organization
o Northwest Neighborhood Improvement Council
o Old Southwest Inc.
o SE Action Forum
• Property and Loan Portfolio Management (Roanoke Redevelopment and Housing Authority) Provides funding for the RRHA staffing, legal and other costs associated with disposing of properties and managing the portfolio of loans made with CDBG, HOME and other public funds received from the City. Services include maintaining vacant lots owned by RRHA intended for home site development (Current Year Funding: $5,000. Recommended: $0)
• Roanoke Housing Partners Proposal (Habitat for Humanity, Rebuilding Together Roanoke, RRHA and TAP) Multi-agency collaboration to assist housing in the West End Target Area in first year of a multi-year approach (Requested: $1,805,880. Recommended: $1,067,750; as detailed below)
• Owner-Occupied Rehabilitation (RTR) Basic rehabilitation services utilizing volunteer labor to address “safe, warm and dry” homeowner needs for low-income persons. Proposed goal of 10 homes in West End Target Area. (Requested: $85,000. Recommended $85,000)
• Targeted Housing Preservation and Beautification Project (TAP) Program designed to assist low-income homeowners in West End Target Area with exterior improvements such as clearing overgrown lots, removal of trash and debris and demolition of dilapidated outbuildings. Intended to lessen adverse effects on surrounding properties, encourage new homeowner investment in target area and improve overall neighborhood appearance. Target of 15 homes. (Requested: $155,148. Recommended $0)
• Consortium Outreach and Intake Specialist (TAP) Proposal to support wages for part-time personnel to serve as a liaison between West End Target Area residents and designated service providers of the Partnership, market opportunities to neighborhood groups, and determine eligibility for services. The part-time person would be under the supervision of full-time TAP staff to provide in-kind match. (Requested: $21,007. Recommended $0)
• Rental Rehabilitation Loan Project (TAP) Funds to provide rehabilitation assistance to landlords within the West End Target Area, concentration on rental units of 5 or less per property. The program structure requires a 50% match for materials and labor for rehab work in exchange for one-year rent freeze. (Requested $427,725. Recommended: $90,000)
• Homeownership Housing Development (Habitat) Funds for developing at least 8 single-family homes for sale through new construction or existing home rehabilitation, which may include lease-purchase. (Requested $1,117,000. Recommended $767,750)
• West End Target Area Property Acquisition/Demolition (Habitat) Funds to acquire derelict structures in West End Target Area for rehabilitation by Habitat for new homeowner opportunities (includes 15% CHDO Reserves). (Requested 200,000. Recommended $125,000)
• Roanoke Single Family Rehabilitation Program (Community Housing Partners) Acquisition, rehabilitation and resale of 5 foreclosed, abandoned, dilapidated or otherwise distressed homes in targeted neighborhoods, with the goal to convert below standard, vacant or rental housing units into newly renovated, energy efficient owner-occupied residences. (Requested $575,000; Recommended $0).
• Strategic and Business Planning (Council of Community Services) Strategic planning services for development of an annual business plan for the Blue Ridge Continuum of Care and Interagency Advisory Council on Homelessness. (Requested $5,000; Recommended $0)
• Summer 2013 Youth Rehab Program (Rebuilding Together Roanoke.) Funds for the 2013 summer youth activities, such as but not limited to World Changers, to provide limited repairs to the homes of low-and moderate-income households outside of the target area. (Current Year Funding: $75,000. Recommended: $75,000)
• Target Area Enhanced Bike Patrol Program (Roanoke City Police Department) Provides funding to deploy police officers on bicycles to respond to concerns of the residents and add to public safety and quality of life issues within the targeted West End Target Area neighborhoods. (Current Year Funding: $25,000. Recommended: $0)
• Transitional Living Center (Total Action Against Poverty) Essential services and maintenance/operation of the shelter; building maintenance; furniture; equipment replacement and repair; transportation; resident healthcare and substance abuse prevention. (Requested $30,000. Recommended: $19,100)
• TRUST House (TRUST, Roanoke Valley Trouble Center) Essential services and maintenance/operation of the shelter; property insurance; furnishings; drug testing; food; prescriptions and bus passes. (Requested: $35,000. Recommended: $27,400)
• West End Center Youth Program (West End Center) Expansion of current social skills development program offered by West End Center to include counseling, mentoring and service learning. (Requested $25,000; Recommended $0)
• West End Energy Efficient Rental Rehabilitation (Community Housing Partners) Program to perform energy audits and retrofits to improve efficiency and performance of 10 rental units in West End Target Area. (Requested $72,500; Recommended $72,500)
• West End Residential Façade Program (Dept. of Planning, Building & Development) Provides 50% match up to $7,500 for façade improvements in West End Target Area. Current year program limits the pilot project to a small portion of target area, but program to be expanded throughout all of West End for 2013-2014. This is a market rate program that is not limited to low-moderate income homeowners, and may be used on rental properties as well with owner match. (Current Year Funding $75,000; Recommended $100,000)
FOR FURTHER INFORMATION, CONTACT:
Keith Holland, HUD Community Resources Division, 853-6404