2012 2:00:00 PM

Monday, September 24, 2012 2:00 PM
Sparks Legislative Building, 745 4th Street, Sparks, NV 89431

Public Hearing and Action Items Unrelated to Planning and Zoning: 7.1

Title: Public hearing and possible approval of the Consolidated Plan Annual Performance and Evaluation Report (CAPER) for Program Year 2011-12 for the City of Sparks to the U.S. Department of Housing and Urban Development (HUD)

Petitioner/Presenter: Community Services Department/Armando Ornelas, City Planner

Recommendation: Staff recommends that the City Council approve submission of the CAPER for Program Year 2011-12 to the U.S. Department of Housing and Urban Development

Financial Impact: None

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: The CAPER is a report on how the City of Sparks, along with the City of Reno and Washoe County, expended HUD funding (CDBG, HOME) and the jurisdictions’ community development and affordable housing activities during the 2011 program year (2011-12 local government fiscal year).

Background: Attached is a draft copy of the Program Year (PY) 2011-12 Consolidated Plan Annual Performance and Evaluation Report (CAPER) for the City of Sparks. Each year, the City of Sparks must prepare and submit a CAPER to the U.S. Department of Housing and Urban Development (HUD). Submission of the CAPER is a condition of receiving federal Community Development Block Grant (CDBG) and HOME program funding (Sparks receives the latter as a member of the Washoe County HOME Consortium). The City of Sparks must conduct a 15-day public comment period, hold at least one public hearing and submit this report to HUD by September 30. The CAPER provides an overview of how Sparks, Reno, and Washoe County expended HUD funding (CDBG, HOME) and of the jurisdictions’ community development and affordable housing accomplishments during the 2011-12 program year. More specifically, the document is intended to provide a brief description of the jurisdictions’ HUD funded programs, including a listing of the projects undertaken during the last year, the amount of funding expended, a review of the accomplishments achieved using grant and other funds, and serve generally as an assessment of progress made toward the jurisdictions’ goals as specified in the Consolidated Plan. The CAPER is a programmatic review and done in addition to the City’s annual financial audit.

Analysis: The City of Sparks committed the maximum of 15%, or $84,976, of its PY 2011-12 CDBG allocation to fund the provision of services for the homeless at the Community Assistance Center located in Reno. The CAC includes shelters for men, women and families as well as a resource center. Total annual funding for the CAC provided by Reno, Sparks and Washoe County is approximately $1.5 million. In PY 2011-12, the City allocated $160,000 of CDBG funding for its Single Familiy, Owner-Occupied Housing Rehabilitation Home Loan and Emergency Grant programs. A total of $136,791 was expended during PY 2011 for program administration and to provide loans and grants to a total of thirteen (13) households assisted through these programs: five (5) with Single Family Owner-Occupied Housing Rehabilitation loans and eight (8) with Emergency Grants. The region’s housing market remained a challenge in PY 2011-12 with values substantially below the “peak “ at which many homes were purchased or refinanced. This has made it difficult for many households interested in the City’s loan program to qualify as they lack sufficient equity in their homes to meet the program’s loan-to-value standard, which the City has had to raise. There is, however, strong interest in the City’s Emergency Grants. The maximum grant allowable under this program is $2,500 per household. The applicant must meet the income requirement of 60% or less of area median income. These grants may only be obtained when conditions in the home affect health and safety. The City allocated CDBG funds in the amount of $275,816 toward pedestrian improvements. Of this amount, $242,757 was expended during PY 2011-12. The project undertaken during PY 2011 was on 7th Street between Prater Way and Victorian Avenue and on the directly adjacent side street blocks to the east and west. The work performed under this activity primarily consisted of removing and replacing concrete curb, gutter and sidewalks, installing accessibility ramps, driveway approaches, and street repairs as necessary. The project has largely been completed with the balance of the funds being held to install heat-sensitive landscaping (i.e., trees) during cooler weather this coming Fall. CDBG planning and administration funds in the amount of $7,952 were provided in support of the Reno Area Alliance for the Homeless (RAAH) work for the homeless Continuum of Care planning and funding process. Also, $15,000 in administrative funding was provided to Silver State Fair Housing Council to further Fair Housing efforts throughout the community, which is a HUD requirement. The City of Sparks, Washoe County and Reno collectively comprise the Washoe County HOME Consortium, which uses HOME funds from HUD as well as other affordable housing funding sources to foster the development of affordable rental and for-sale housing. Highlights of the Consortium’s activities during PY 2011 include the following: The construction of the 55 unit River Senior Apartments, located at 895 Kuenzli in Reno, was completed in July 2011. This project was allocated $850,989 and added an additional 11 HOME units targeting households at or below 45% of Area Median Income (AMI). The construction of Silver Sage Senior Apartments at 3870 Neil Road in Reno was completed in November 2011. This 58 unit project was allocated $392,500 and added an additional 12 HOME units targeting households at or below 40% AMI. Construction began on the Virginia Lake Senior Apartments in Reno. It is anticipated that construction will be complete in April 2013. This 66 unit project will serve households at or below 45% AMI , includes 11 HOME units and was allocated $1,200,000 in HOME funding. WestCare Veteran’s Housing acquisition/rehabilitation, a transitional housing project for veterans at or below 50% of AMI and experiencing homeless, was completed in 2012. It provides 16 units of affordable housing, six (6) of which will be HOME-assisted units. This program was funded by $350,000 in Low Income Housing Trust Funds (LIHTF) from the State of Nevada. This property is located at 316 and 340 Maine Street in Reno. Bristlecone Transitional Housing, allocated $392,500 in LIHTF, is an acquisition rehabilitation project with eight (8) HOME-assisted transitional units. This project began May 2012 and construction is estimated to be complete in 2013. The property is located at 712 and 704 Mill Street and 120 and 196 S. Wells Avenue in Reno. For FY2011-2012, NNCHRB was allocated $80,000 in pre-development funds to develop a new 44 unit multi-family project. The resulting project will be Aspen Village, located at 1410 Sullivan Lane in Sparks. Construction is scheduled to begin in late 2012 with completion in 2013. The project includes 11 home units at or below 40% AMI. CDBG regulations require a minimum 15 day public comment period for the CAPER, and the City’s HUD-approved Citizen Participation Plan requires a public hearing. A notice announcing the availability of the CAPER was published on September 7th in the Reno Gazette-Journal. The public comment period began on September 7 and will close on September 24; any public comment received at this hearing and during that time frame will be taken into consideration in the final CAPER.

Alternatives: The City Council may provide direction on changes to the CAPER. The CAPER must be submitted by September 30th, however, as it is a condition of receiving CDBG funding.

Recommended Motion: I move to approve submittal of the Consolidated Annual Performance and Evaluation Report for Program Year 2011-12 for the City of Sparks to HUD.

Attached Files:

PY2011-12 CAPER draft 9-6-11.pdf

PR 26 - CDBG Financial Summary Report-090412.pdf

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