88-442� WHITE - CITV CLERK
PINK - FINANCE COUnCII
� CANARV- DEPARTMENT G I TY- O SA I NT PAU L File NO. �—��
BLUE - MAVOR
�
PED - Community Development COUnC •` �es�`u�i�n
. Presented By
Referred To Committee: Date
Out of Committee By Date
RESOL[RION IDEN?IFYI G THE NEEK OF APBII. 2 — �PRIL 9, 1988
AS NATION COl�MUl1ITY DEVELOPMEMT YEEB
iiHEREAS, the Community D velopment Block Grant (CDBG) Program has
operated since 1974 to provide local governments with flexible resources to
meet the needs of low and mode ate income persons; and
N�BEAS, the CDBG Progr has provided the City of Saint Pa 1 with over
150 million which has been use for basic neighborhood revitalization; and
YHEFEAS, the CDBG Progra continues to be the largest single souree of
federal financing provided to aint Paul to assist low and moderate income
persons; and
HEIEaEAS, the CDBG Progra provides financing for many of Saint Paul's
nationally recognized programs, including the Single Family and Rental
Rehabilitation Loan Programs, he Neighborhood Partnership Program and the
Citizen Participation Process; and
YEIEBEAS, the United Stat s Congress and the Nation has often overlooked
the critical value of the CDBG Program and the significant number of
organizations that rely on its funds for support; and
W9ExEAS, the City of sai t Paul intends to join with other
municipalities nationwide to r affirm the significance and importance of the
CDBG Pro�ram and its efforts t assist low and moderate income persons;
NOW, THEREFORE BE IT
�ESOLVED, that upon the ecommendation of the Mayor, the Council of the
City of Saint Paul does hereby proelaim the week of April 2 — April 9, 1988 as
National Co�unity Developmen Week; and be it
FllxTHER �ESOLVED, that he Council does hereby encourage the citizens of
Saint Paul and the Minnesota legation to the U.S. Congress to actively
su port the oals and objecti es of the CDBG Program.
COUNCILMEN Requested by Department of:
Yeas D].mOnd Nays
Goswitz � [n Favo P annin and Economic Develo ment
Long / • `�
Scheibel � — Against BY Z ��'�o''� /f`- �
Sonnen
Wi130ri MAR 3� 1� Form Approve City Attorn
Adopted by Council: Date �
/
Certified Pas by uncil t BY
By
t\pprov y �Vlavor: Date �- �R � � Approv y May for u m ion to Council
,
By
PI�USHED Ar'n 9198g
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- N° 0-13172 :
�P_.�"C�Atytuw irY �D. DEPARTMENT � - - - - - -
�aQ�,��, CONTACT
PHONE �
3 z� S+, DATE
AS FOR ROUTING ORDER: (See everse sida.)
Departmeat Director '� Mayor (or Assistant)
_ Finance and Management Services Dir tor City Clerk
Budget Director � __� ��( ���
_„3, City Attorne� _
TOTAL NUMBER OF SIGNATURE PAGES: . .� ( lip all locations for signature.)
il V D B T C H C ? (Purpose/Rationale)
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(Iiayor's signature not required if under $10,000.)
Tqtal Amount of Trans�ction: /� Activity Number:
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Funding Source:
ATTACHMENTS: (List and number all attac ents.)
�,. ��e.�c,se� C�.K�i� RESo �-�no�t
ADMINIfiTRATIVE PROCEDURES
_Yes N�No Rules, Regulations, Pro edures, or Budget Amendment required?
_Yes No If yes, are they or tim table attached7
DEPARTMENT REVIEW �TY ATTORNEY REVIEW
Yes No Council resolution requir d? Resolution required? Yes No
_Yes��No Insurance required? Insurance sufficient?: �es _No
_Yes _No Insurance attached?
�/��'`���
Coalition on
Low-Imcome
NEWSLETTE Communit
March, 19 8 y
NATIONAL CDBG WEEK -- ril 2-9 1988 Development
1000 wsconsin Avenue N.W.
April 2-9, the Congress'onal Easter/Passover W�}""gton,D.G z000�
(202) sa�sa
Recess, has been designated Na ional Community Develop-
ment Week. Efforts are on acr ss the country to
publicize CDBG Week with press releases, informational
materials, and local media eve ts. Activities will be
targeted to both the public at large and local members
of Congress. Public support f om local politicians
and residents is key to contin ation, refinement, and
adequate financial support of is program.
In some locations, acti ities around National
CDBG week are being coordinate by the local government
agency that has responsibility for implementing CDBG.
Where that is the case, effort can be targeted to
assisting and enhancing those ctivities. In areas
where little or no attention i being paid, community
based organizations will have o schedule activities
that draw media attention and 1 re elected officials.
Proclamations, tours, large pu lic gatherings are all
good ways to bring attention t a program which, for
the vast majority, is little u erstood or supported.
CL-ICD CONTINUES TO SEEK EX LES OF DISPLACEMENT
The Coalition on Low-Inc me Community Development
(CL-ICD) is collecting examples of direct or indirect
displacement caused by the use f CDBG or UDAG money.
We are looking for specific, recent examples of
displacement of lower income pe ple. Please send in any
written material, newspaper cli pings, letters, studies
and testimonies relating to the displacement.
The materials are needed for hearings which
will be held on the anti-displa ement provisions which
were won in the Housing and Com unity Development Act
of 1987 which are described in he February Newsletter.
Please call or write as oon as you can to: Ed
Gramlich, Center for Community hange, 1000 Wisconsin
Avenue, N.W. , Washington, D.C. 20007, (202) 342-0567.
CL-ICD REGULATIONS SUBCOMMITTEE MEMBERS MET WITH HUD
Members of the CL-ICD Re ulations Subcommittee,
Ed Gramlich, Bud Kanitz, Belind Mayo (Co-Chair Steering
Committee) , and Barry Zigas met with 16 HUD staff inember
to ensure that CL-ICD has a rol as HUD begins the
process of writing regulations or the CDBG Amendments
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that CL-ICD sought in the Housing and Community Development Act of 1987.
HUD limited the discussions to the anti-displacement and citizen partici-
pation portions of the new law (see February issue of Newsletter for
details on those amendments) . HUD representatives were reluctant to meet
with the Subcommittee, having already met with organizations representing
local officials. But discussions lasted three hours and let HUD know
attention that CL-ICD intends to be in this for the long haul and to
monitor implementation of the amendments we fought so hard to see enacted.
Areas which came in for the greatest discussion included: narrowing
the definition of a "community" to a neighborhood, not the entire jurisdic-
tion; defining a "comparable" repla�ement dwelling; defining "afrordable"
as 30% of income for a family at 80% of inedian income; determining what
methods of monitoring should be used. For the citizen participation
amendment, areas which came up for discussion included: what a "reasonable
and timely" period for access to information should be; what "adequate
notice" is for public hearings; and what specific efforts need to be made
to allow non-English speaking residents to participate.
REP. JOSEPH KENNEDY INTRODUCES COMMUNITY HOUSING PARTNERSHIP ACT
Included in this Newsletter is a summary, prepared by the Low
Income Housing Information Service, of the Gommunity Housing Partnership
Act (HR 3891) . HR 3891 was recently introduced by Congressman Joseph
Kennedy and is designed to provide $500 million for housing projects and
$10 million in ongoing capacity-building funds through state and local
government and directly to nonprofit groups. These funds can be used as
either grants or loans to cover operational expenses, and expenses for
training, technical, legal, engineering, and other assistance. CL-ICD's
Legislative Subcommittee assisted in drafting portions of this proposal.
Congressman Kennedy does not realistically expect that this Bill will
pass before a new President is inaugurated, but he intends to push it as
his number one priority at the beginning of a new administration.
EXPANDING SUPPORT FOR THE COALITION ON LOW-INCOME
COMMLJNITY DEVELOPMENT
CL-ICD is continuing its efforts to expand its support and its
core base of active, community-based participants. Those interested in
working with the Coalition who attended the recent National Low Income
Housing Coalition Conference in Washington, were invited to make sugges-
tions and recommendations to Steering Committee members. Surveys were
circulated at the Conference and will be circulated at other upcoming
national conferences.
We have also included the survey with this month' s Newsletter.
Please take a moment, if you have not done so already, to answer the
questions and return it to us. We hope to have sufficient response to be
able to report on the findings in the April Newsletter.
. . � _ ���z
CL-I D Surve
1. Is the CDBG program impo tant to your organization or your
constituents?
Why?
2. Is CDBG policy a topic o discussion at membership or board
of directors meetings? If yes, under what
circumstances?
If not, why not?
3. Have you ever gotten in ouch with your elected officials
concerning national CDBG policy?
Have you encouraged them to support the proposals put forth
by the CL-ICD? If you have, who were they and
what issue(s) were you s eking support for?
If not, why not?
Would you consider doing it in the future?
Under what circumstances
4. What national issues wou d be of most concern to you and
your organization?
Targeting?
Displacement?
Fighting CD cuts?
Increased resources? � For what activities?
Preference for funding p ograms run
by community-based organ zations?
Direct funding for commu ity groups?
Requiring economic devel pment
directly benefit low inc me people?
Other issues?
5. Would you like to come t Washington for meetings on this
issue? Would y u be able to come?
What are the constraints
What other suggestions would you have for giving member
organizations a feeling of "ownership" of CL-ICD?
6. Are you interested in developing greater concern in your
own organization on this issue? How would you
go about doing that?
7. What assistance from outside your community would help you
develop a local constituency for this issue?
8. Would you take a few minutes to jot down additional
suggestions you might have on the work of CL-ICD and the
issue of CDBG reform?
Do you and your organization wish to continue receiving this
newsletter?
Do you wish to participate actively in CL-ICD?
If so, how?
Would your organization be willing to pay dues to CL-ICD as a
part of an overall fundraising strategy? How much?
What other organizations might like to participate? (names,
addresses, phone numbers, please)
Your name
Organization
Street address
Phone number
Please return this form to:
Coalition on Low Income Community Development
1000 Wisconsin Avenue, NW.
Washington, DC. 20007 (202/342-0594) .
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COMMUNITY HOUSI G PARTNERSHIP ACT - H.R. 3891
Summary
Title I-- CBpacityBuilding
,
Title I of H.R. 3891 is designed to provide$10 illion in ongoing capacity-building funds to be administered
by HUD both through state and local govermm �ts and directly to nonprofit groups. These funds can be used
as either grants or loans to cover operational e penses, and expenses for training,technical, legal,
engineering and other assistance to boards of irectors, staff and members of nonprofit sponsors. Crants may
also be made for administering p�ograms to ed cate, counsel and organize tenants and homeowners who are
eligible to participate in the grant programs co tained in Title II.
Funds under Title I cannot be used to support ctivities di�ectly related to development activities supported
by grants in Title II. They are designed instead o provide capacity building,which will prepare nonprofit
organizations to qualify for development gran .
Title II--Development Grsnts
Title 11 of the bill contains$500 million in annu I authorizations for grants to subsidize the development of
affordable rental housing for low-and very-lo income households, and homeownership opportunities for
families with incomes below 115 percent of ar a median.
Grant funds would be split three ways: 60 per ent would be allocated to metropolitan cities and urban
counties, and 30 percent to states. The remain ng 10 percentwould be administered directly by HUD.
The city, urban county, and state funds would e allocated using the Community Development Biock Crant
formula. Cities and urban counties wouid hav to be ailocated at least�250,000 through this procedure to
receive a direct grant. Those not allocated at I ast that much from the formula distribution would have to
apply to either the state or HUD for funds on a discretionary basis. This parallels the allocation system now
being used in the Rental Rehabilitation Crant p ogram,where a100,000 is the minimum amount for direct
participation by cities and counties.
HUD's allocation would be available for direct rants to nonprofit sponsors where the city or state is either
unwilling or unable to obtain funds directly;w ere the city or state is unable to provide required matching
funds; or where the sponsor proposes"an inno ative housing development."
Pr jects and Sponsors
Once funds are allocated to cities, counties an states, they have to be used for grants, loans or other forms
of assistance to qualified nonprofit sponsors fo the development or rehabilitation of affordable housing for
low income people.
Eligible sponsors include any not-for-profit cor oration that is organized under state law, is qualified under
Section 501(c)(3) of the Internal Revenue Cod , and has as one of its purposes the preservation and
p�oduction of affordable housing. Nonprofit c operative corporations also are eligible, as are so-called
"nonprofit sponsor partnerships,"which are de ined as limited partnerships in which the nonprofit organization
is a controlling general pattner.
Eligible rental housing projects must meet the Ilowing minimum criteria:
1. contain at least four independent welling units(including limited equity cooperatives), or, if a
Single Room Occupancy(SRO) bu Iding, have at least a four-person capacity.
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2. have either 40 percent of the units occupied or availabie to households with incomes below 60
percent of the area median,or at least 20 percent of the units occupied by or available to
households with incomes below 50 percent of the area median income. In either case, the income
limits must be adjusted up or down for family size. (These are the same criteria used under the
Low Income Housing Tax Credit.)
3. Rents for any households in the property with incomes below 80 percent of the area median must
be restricted to no more than 30 percent of adjusted income.
Community Housing Partnership funds may be used onl to reduce the cost of units serving households with
incomes below 80 percent of the area median, adjusted for family size. This means that while funds may be
used in mixed-income projects,the federal funds could only be used to bring down the cost of units serving
those below 80 percent of inedian.
Sponsors receiving assist�r�ce nn�!�t agree t��rr�3�tain L?�e rmi�i��aer�e s�-asides and rent limitations for
households below 80 percent of inedian in perpetuity. Any subsequent conveyance of the property must
require the new owner to also comply with these provisions.
Sponsors are required to limit the aggregate rental income from the property to an amount not greater than
the real cost of operations(including debt service, utilities, �eserves, etc.) plus a 6 percent return on any
equity investment. Any profits received by the sponsor must be used solely for the purpose of providing low
and moderate income housing.
Homeownership Assistance
Homeownership units developed for sale under this act must comply with local codes or,where none exist, a
recognized national building code. Units covered by a mutual housing association are eligible for assistance
under the homeownership section.
Purchasers of homeownership units must have incomes of(ess than 115 percent of the greater of the area or
state-wide median for a family of four. Only households that have not owned a home in the p�evious three
years are eligible buyers.
Purchase prices for homeownership units cannot exceed the cost of construction plus a 10 percent
development fee. Such fees must be used by nonprofit sponsors for carrying out programs to preserve,
develop, manage or provide tenant counseling services in low-and moderate-income housing. Buyers of units
assisted with these funds must agree to(imit their appreciation on resale. Housing cooperatives which
participate;n the program r�iust ais�agree irr a��rrs�i�d equity fori�r of ownership.
Federal Match
The funds in H.R. 3891 require that nonprofit sponsors generate at least three dollars to match each federal
dollar received. The match can come from state or local funds or from philanthropic contributions or equity.
Section 8 Assistance
Units developed with Community Housing Partnership funds may be assisted with Section S as well. The bill
would permit housing authorities to allocate Section 8 assistance to eligible projects in order to assure their
viability. The bill also would exclude projects developed with these funds from the passive loss restrictions
imposed in the Tax Reform Act of 1986, and qualify these projects for the full development Low Income
Housing Tax Credit despite the presence of other federal subsidies. (The 1986 Tax Act restricted the higher
value development credit only to projects not receiving other forms of federal assistance.)
(Tiris summary was prepa�ed by tl�e Low/ncome Housing lnformation Se�vice, February 1988.)
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