DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Verónica R. Soto, Director
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Program Policies for HUD-Funded Affordable Housing Activities
SUMMARY:
Approval of the updated Program Policies for HUD-Funded Affordable Housing Activities
BACKGROUND INFORMATION:
The City of San Antonio (the City) receives federal funding from the U.S. Department of Housing and Urban Development (HUD) to include the Community Development Block Grant, HOME Investment Partnerships Program and Neighborhood Stabilization Program (one time award) Funding. This funding is intended to assist low to moderate income households through community development and affordable housing activities. As such, the City has developed Program Policies for HUD-Funded Affordable Housing Activities (Program Policies) to allocate and oversee the funding listed below:
Community Development Block Grant (CDBG)
The Community Development Block Grant has been in existence since 1974. The primary objective of the CDBG program is to improve communities by providing decent housing, providing a suitable living environment, and expanding economic opportunities. The primary beneficiary of CDBG funds must benefit low to moderate-income persons, aid in the prevention or elimination of slums or blight, or meet an urgent need. In FY 2018, the City was awarded $11.6 million in CDBG funding, which was allocated to eligible activities through the Annual Action Plan/Budget process approved by City Council on August 3, 2017.
HOME Investment Partnerships Program (HOME)
The HOME Investment Partnership Program has been in existence since 1990. The goals of the HOME program are to provide decent affordable housing to lower-income households, expand the capacity of nonprofit housing providers, strengthen the ability of state and local governments to provide housing, and leverage private sector participation. HOME funds may be utilized for rental activities, homebuyer activities, and homeowner rehabilitation activities. All HOME funds must benefit persons of low and moderate income. In FY 2018, the City was awarded $3.9 million in HOME funding, which was allocated to eligible activities through the Annual Action Plan/Budget process approved by City Council on August 3, 2017.
Neighborhood Stabilization Program (NSP)
The Neighborhood Stabilization Program was authorized under Division B, Title III of the Housing and Economic Recovery Act of 2008 (HERA) to help communities recover from the effects of foreclosures, abandoned properties, and declining property values. The City received an NSP allocation of $8,635,899 to be utilized in six NSP target areas. Currently, the city is overseeing activities funded with program income generated from activities funded with the original award.
The last version of the Program Policies (formerly known as the Affordable Housing Policy) was approved by City Council on December 10, 2015.
ISSUE:
The City initiated a review and update to the Program Policies in order to:
• Ensure that the City’s policies are comprehensive and in compliance with HUD regulations including the 2013 HOME Investment Partnerships Program Final Rule and other applicable HUD guidance that has been issued to grantees since the last update;
• Provide streamlined, consistent guidelines for federally funded affordable housing activities;
• Allow for more flexibility in the implementation of these activities;
• Allow for an applicant waiver and appeal process; and
• Ensure that the public and affordable housing providers have the opportunity to provide input and feedback on the City’s Program Policies for HUD-Funded Affordable Housing Activities in accordance with HUD’s citizen participation process.
While there were no major changes to the Program Policies, some notable updates include additional loan term options for Community Housing Development Organizations to conduct multi-family housing activities and expanding third party underwriting requirements to single-family new construction and CDBG-funded multi-family housing rehabilitation activities.
A public notice was published on November 22, 2017 in the San Antonio Express News to obtain citizen input. A public input session will be held at 6pm on Wednesday, December 13, 2017 at City of San Antonio’s Neighborhood and Housing Services Department, 1400 S. Flores, San Antonio, Texas 78204. The end of the public comment period is December 13, 2017. This item will be considered at City Council on January 11, 2018.
ALTERNATIVES:
The alternative to approving the updated Program Policies would be to continue to utilizing the existing Program Policies, but these policies are not as comprehensive as needed to ensure compliance with HUD regulations.
FISCAL IMPACT:
This action does not have a direct or indirect fiscal impact to the General Fund.
RECOMMENDATION:
Staff recommends the Comprehensive Plan Committee forward to the full City Council the updated Program Policies for HUD-Funded Affordable Housing Activities.