RESOLUTION NO. R17-09
A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE ENTERING INTO OF A SUBRECIPIENT CONTRACT WITH HABITAT FOR HUMANITY CENTRAL ARIZONA FOR EMERGENCY REPAIR PROGRAM AND RATIFYING THE EXPENDITURE OF FUNDS IN THE AMOUNT OF $23,898.32.
Staff Contact: Elaine Adamczyk, Interim Director, Community Services
Purpose and Recommended Action
Recommendation [enter the recommendation here]
This is a request for City Council to waive reading beyond the title and adopt a resolution authorizing the City Manager to enter into a new contract for FY 2015-16 Community Development Block Grant (CDBG) to be retroactive effective September 19, 2016, and ratify the expenditures of funds with Habitat for Humanity Central Arizona in the amount of $23,898.32 that have occurred since September 19, 2016.
Background
Annually, the City of Glendale is awarded CDBG funds by the U.S. Department of Housing and Urban Development (HUD) to be used for eligible activities. The City Council through the CDBG grant process allocated funding for the Glendale Emergency Home Repair Program, which is a critical component for the City’s Single Family Rehabilitation Program administer offered by Community Revitalization.
For FY 2015-16, the Community Development Advisory Committee (CDAC) conducted a formal HUD grants allocation process and made funding recommendations to the Mayor and Council. The City Council subsequently approved these recommendations as part of the City’s Annual Action Plan on May 12, 2015. As part of this process Glendale’s Emergency Home Repair Program was allocated $425,000 in CDBG funds to prove emergency repair services to income-qualified homeowners located within the city limits of Glendale. Subsequent to this action, Contract C-10400 was approved and executed with Habitat for Humanity Central Arizona to administer this program.
This contract expired on September 19, 2016, and the agency had a remaining balance of $1,744.32 in CDBG funds available for the program at the time. Because of high temperatures which extended into October, the agency continued to receive a large number of emergency repair requests from Glendale residents, which in total exceeded the remaining balance under the contract by $22,154. Habitat for Humanity Central Arizona has requested reimbursement for these expenditures. Because of this, it is necessary to increase the available FY 2015-16 CDBG funds for this program by $22,154, and enter into a new contract effective September 19, 2016 through March 19, 2017, for a total amount of $23,898.32. It is necessary to make the contract retroactive in order to be in compliance with federal regulations.
If approved, the additional funds will be reprogrammed from the existing funding for the Single Family Rehabilitation Program account to pay for these unexpected expenditures. This will not impact the operations of the Community Revitalization Division.
Analysis
During FY 2015-16, Habitat assisted over 169 homeowners with emergency repairs utilizing its $425,000 allocation of CDBG funds. The extension of this contract is necessary for the City to adequately reimburse Habitat for additional expenses related to the provision of this program to the city’s most vulnerable residents.
It is important to note that each applicant whose assistance exceeds $1,000 has a five year lien placed against their house for the amount of CDBG funds spent on the project. Each year, one-fifth of the amount of the lien is forgiven and after 5 years the lien is released. If the homeowner were to sell their home before the end of the five year period, the remaining balance will be paid back to the city upon sale of the house. Should this occur, these funds are considered “program income” and are returned to the CDBG program to serve additional residents.
Previous Related Council Action
The City Council authorized the execution of the contract with Habitat for Humanity, Glendale Emergency Home Repair Program, for the FY 2015-16 funding at its May 12, 2015, meeting.
Community Benefit/Public Involvement
The Glendale Emergency Home Repair Program is one component of the City’s Residential Rehabilitation programs. This program helps stabilize neighborhoods and provide sustainability for low to moderate-income residents. To date, thousands of residents have received emergency assistance to address emergency issues such as, replacement of a broken water heater, repair of malfunctioning electric panels, and repair of their heating or cooling system. The program provides a means for homeowners, especially seniors and the disabled, to improve their quality of life, and increase their ability to remain in their homes. This item was recommended for funding by the Community Development Advisory Committee at a public meeting held December 11, 2014.
Budget and Financial Impacts
Since this is a federally funded program, there is no fiscal impact on the city. No General Funds will be used for this contract. Funding is available in the Community Services CDBG FY2015-16 operating budget as shown below. Annual budget appropriation thereafter is contingent upon council approval through the budget review process.
|
Cost |
Fund-Department-Account |
|
$22,154 |
1320-31098-518200, CDBG Emergency HOME Repair Program Professional Contractual |
|
$1,744.32 |
1320-31098-518200, CDBG Emergency HOME Repair Program Professional Contractual |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from? NA