Loading...
12/11/2012 NEIGHBORHOOD &AFFORDABLE HOUSING ADVISORY BOARD MEETING MINUTES CITY OF CLEARWATER December 11, 2012 Present: Peggy M. Cutkomp Chair Laurel E. Braswell Vice-Chair Linda Kemp Board Member Michael Potts Board Member Vacant Seat Board Member Absent: Lisa Hughes Board Member Kip Corriveau Board Member Also Present: Michael Holmes Housing Manager Patricia O. Sullivan Board Reporter The Chair called the meeting to order at 9:00 a.m. at City Hall. 3—Approval of Minutes— November 13, 2012 Member Kemp moved to approve the minutes of the regular Neighborhood &Affordable Housing Advisory Board meeting of November 13, 2012, as recorded and submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 4—Approval of FY 11-12 Consolidated Annual Performance & Evaluation Report See Exhibit: FY 2011/12 CAPER 2012-12-11 Housing Manager Michael Holmes provided a PowerPoint presentation on FY (Fiscal Year) 2011/12 CAPER (Consolidated Annual Performance and Evaluation Report) highlights. In response to a question, Mr. Holmes said the Country Club Townhomes' developer allowed purchasers to move in shortly before closing, scheduled for this week. Member Braswell moved to recommend approval of the FY 2011/12 Consolidated Annual Performance and Evaluation Report. The motion was duly seconded and carried unanimously. Jerry Spilatro, of CSF (Community Service Foundation), thanked Mr. Holmes and his team on the great job they did compiling the CAPER. He reported CSF had exceeded its goal, established in response to the City funding amount, to help 72 people and helped 80. 5— Next Meeting—January 8, 2013 6 -Adjourn / The -= ing adjourned -t 9:23 a.m. ` '� /�� Attest: / ` %w i��T#1% Chair, gc-i-; o ood &Affordable J dvisory Board Beard Reporter Neighborhood &Affordable Housing 2012-12-11 1 EXHIBIT: FY 2011/12 CAPER 2012-12-11 First Program Year CAPER The City of Clearwater, Florida FY 2011-12 CPMP First Consolidated Annual Performance and Evaluation Report includes Narrative Responses to CAPER questions that CDBG, CDBG-R, HOME, NSP3, HOPWA, and ESG grantees must respond to each year in order to be compliant with the Consolidated Planning Regulations. The Executive Summary narratives are optional. The grantee must submit an updated Financial Summary Report (PR26). 1. EXECUTIVE SUMMARY The overall purpose of the community planning and development programs as stated in Section 91 of the Housing and Community Development Act, as amended, with programs funded through the Community Development Block Grant Program and the HOME Investment Partnership Program is to develop viable urban communities by providing decent housing, a suitable living environment and expanding economic opportunities principally for low to moderate-income persons. The primary means toward this end is to extend and strengthen partnerships among all levels of government and the private sector, including for profit and non-profit organizations, in the production and operation of affordable housing. The main purpose of these programs is to provide decent housing. Decent housing includes assisting homeless individuals and families, retaining the existing housing stock by rehabilitating existing housing units and increasing the availability of permanent affordable housing by building new affordable rental and owner-occupied units and providing down payment assistance. The second purpose includes increasing public services and public facilities to improve the safety and livability of neighborhoods as a suitable living environment. The third purpose is to expand economic opportunities to low to moderate-income individuals by creating or retaining jobs or creating and/or expanding businesses in low to moderate-income neighborhoods. The Consolidated Annual Performance and Evaluation Report (CAPER) is the principal administrative report to document how effective the City has been in expending CDBG and HOME funds to meet the objectives listed above. It serves as the basis for program monitoring for compliance and for financial audits. It provides HUD with necessary information for the Department to meet its requirement to assess each grantee’s ability to carry out relevant Community Planning Development (CPD) programs in compliance with all applicable rules and regulations. It provides information necessary for HUD’s Annual Report to the U. S. Congress and provides grantees an opportunity to describe to citizens their successes in revitalization of deteriorated neighborhoods and meeting objectives stipulated in our Consolidated Plan. The City’s FY 2011-12 CAPER contains information on the City’s assessment of activities as they relate to the five-year goals and objectives, affirmatively furthering fair housing, affordable housing, continuum of care, leveraging resources, citizen participation, and self-evaluation. First Program Year CAPER 1 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Please note that this CAPER is included under the goals and objectives identified in the FY 2011-2016 Five-Year Consolidated Planning Period. 2. ASSESSMENT OF THE ONE YEAR GOALS AND OBJECTIVES In June 2011, the City of Clearwater approved the FY 2011-2016 Consolidated Plan for funding from the Community Development Block Grant Program (CDBG), HOME Investment Partnership Program (HOME), and State Housing Initiatives Partnership Program (SHIP). In September 2011, the City’s Consolidated Plan was approved by the United States Department of Housing and Urban Development (HUD). The Five- Year Consolidated Plan includes two key activities; provide decent, safe, and affordable housing and increase public services and facilities to improve the safety of the neighborhoods. The City's mission is to assist residents in achieving self-sufficiency through decent housing, a suitable living environment and the expansion of economic opportunities. The goals for community development include promoting community self investment in low/moderate-income areas, providing facilities/services to address critical social services needs, providing facilities/services for seniors, children and persons with special needs, and expanding economic opportunities. The goals for housing and the homeless include revitalizing older housing and demolishing unsafe structures, producing high-quality affordable housing, providing housing assistance, and providing services/housing for the homeless. The City of Clearwater focuses on three (3) basic areas for assisting in the provision of decent, safe and affordable housing. The focus consists of: 1.Homeowner rehabilitation - which include emergency repairs and disabled retrofitting 2.Down payment and closing cost assistance for homebuyers 3.Acquisition/rehabilitation/new construction To preserve the existing housing stock, the five-year goal is to rehabilitate 75 units owned by low-income households. The City will preserve the housing stock by funding the acquisition and rehabilitation of 50 existing units for new low-income owner households over the five-year period. To encourage new homebuyers, the five-year goal is to provide direct down payment/closing cost assistance to 100 low and moderate-income homebuyers. The City has proposed to construct 80 new affordable, for sale, infill housing units to support the City's ongoing revitalization/redevelopment efforts. To encourage participation in the City's homebuyer’s activities, the five-year goal is to provide credit counseling and homeownership training assistance to 80 prospective low-income homebuyers. During FY 2011-12 funding year, the City implemented its Housing Pool primarily with SHIP and HOME monies and used the funds for down payment and closing cost assistance, lot acquisition, rehabilitation and new construction. For larger developments, a non-profit and/or for-profit organization may be allocated funds in a First Program Year CAPER 2 EXHIBIT: FY 2011/12 CAPER 2012-12-11 line of credit format. This allows for the development of small infill projects, as well as the acquisition of several single existing units for rehabilitation and resale. Clearwater’s Economic Development and Housing Department - Housing Division oversees the activities of its subrecipient participants and administers the City’s rehabilitation and emergency repair program using CDBG, HOME and SHIP funds. The Housing Pool participants submit a client case for approval for down payment and/or closing cost assistance. Once approved, the City encumbers those funds. Upon home closing, the Housing Pool participant will request reimbursement of the funds they expended and their loan processing fee(s). The loan processing fee(s) are not funded until we review the client file and have determined that all necessary documentation has been obtained to verify household income and assets and to substantiate any rehabilitation that may have been done on the home that was purchased. The Housing Pool continues to be one of the most effective ways for our housing partners to access funding for income-eligible clients. The City has identified five general strategies to provide affordable housing over the Consolidated Plan period. They are to provide decent, adequate and affordable housing in safe and desirable environments for: a) renters, b) homeowners, c) homebuyers, d) homeless and e) non-homeless with special needs. a. Rental Strategy The strategy for rental activities includes maintaining the existing rental housing stock through rehabilitation, new construction, conversion, and providing additional funding for acquisition/rehabilitation to very-low income households to ensure that housing costs, including utilities, does not exceed 30% of their gross monthly income. The priorities listed in the current five-year strategy calls for providing decent, adequate and affordable housing in a safe and desirable community for renters. To fulfill this strategy, the City facilitated meetings with developers and discussed potential funding for renovations of existing rental properties and/or new construction projects. Five projects (Covert Apartments, Pine Berry Apartments, Abilities of Morningside I, Abilities of Morningside II and Homeless Emergency Project – Veterans Apartments) funded during the last reporting period were either completed or leased up during this year. They include the following: 1)Covert Apartments (Jerry Howe Apartments) On June 8, 2009, Boley Centers, Inc., a private non-profit psychosocial rehabilitation and housing agency established in 1970, presented an application of funding for construction costs to rehabilitate a thirteen-unit apartment complex (Covert Apartments). Boley Centers has developed and operates 15 apartment complexes that provide 150 units of permanent, supportive housing for people with severe and persistent mental illness in Pinellas County. The total cost to renovate the Covert Apartments was $620,950 with the City’s contribution being $128,198. Other funding for this project included $117,752 from the Veterans Administration and $375,000 from Boley Centers, Inc. First Program Year CAPER 3 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Covert Apartments is located at 1447 and 1451 Gulf to Bay Boulevard in the East Gateway Neighborhood Revitalization Strategy Area. This is a commercial sector that is burdened with a declining business base, deteriorated infrastructure, various building uses and vacant storefronts. The rehabilitation of the Covert Apartments is consistent with the goals and objectives of the City’s Consolidated Plan because it improved the appearance of the site and addressed homelessness in the area. The apartment complex is comprised of eight two-bedroom units, four one-bedroom units and one efficiency apartment. All of the prior tenants’ incomes were at or below 50% of area median income. The renovation did not result in any permanent relocation for the tenants. However, the tenants might have moved within the complex while their units were being renovated. The scope of the renovation included a new roof on the north building, replacement of windows, countertops and kitchen appliances, carpeting, interior and exterior painting, and making one two-bedroom unit accessible for persons with physical disabilities. The rents for the units are $750 for the two-bedroom units and $500 for the one- bedroom units. However, the tenants will only pay 30% of their adjusted income for rent projected at approximately $202 after utility allowances. The architect for the renovation was Wedding and Stephenson Architects, Inc. and the contractor was General Home Development, Inc. The project was presented and approved by the Neighborhood and Affordable Housing Advisory Board in July 2009. The project was completed September 2011. During FY 11-12, the project was 100% leased. 2)Pine Berry Apartments Pine Berry Senior Apartments, located at 1225 Highland Avenue, made an application for funding to develop apartments for seniors. The amount requested was a $545,000, three percent 30-year loan. The new apartment complex provides 80 affordable multi-family units for the elderly. The project comprises 40 one- bedroom/one-bathroom units and 40 two-bedroom/one-bathroom units. The one- bedroom units are 625 square feet and the two-bedroom units are 780 square feet. The rents are set at 60% of the area median income or lower, based on the requirements of the City. The project site is approximately 3.02 acres and is located on a former bowling alley site. The purchase price of the Pine Berry property was $1.7 million. The cost for the project was $15,859,959. Funding for Pine Berry included $545,000 from the City with $200,000 in funds utilized from the State Housing Initiative Partnership Program and $345,000 in funds utilized from HOME, $9,240,872 was funded through the Federal Low-Income Housing Tax Credit Program, $5,590,341 from the Tax Credit Assistance Program, and $483,746 from the owner’s equity. The Development is equipped with an amenity package that includes emergency call service in each unit, a community center, a picnic area, a computer lab, laundry facilities with full size washers and dryers, and a library. RLI Beneficial Development 7, LLC was the Developer of the apartments. RLI has engaged a management company since the project is now complete. First Program Year CAPER 4 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The Partnership submitted a LIHTC Application to the Florida Housing Finance Agency on April 10, 2008. The Partnership obtained their tax credits and architectural drawings in July 2008. The project was completed in July 2011. During FY 11-12, the project was 100% leased. 3) Abilities of Morningside I On September 24, 2010, Abilities of Morningside I submitted an application for funding in the amount of $216,000 to renovate rental housing units located at 2500 Harn Blvd., Units B-2, E-3, F-11, F-14, J-2 and J-8. Abilities at Morningside I is an affiliate of Abilities Inc. of Florida. Funding for this project includes $162,000 from the HOME Investment Partnership Program and $54,000 match from the Pinellas County Housing Trust Program. This project will preserve the existing housing stock for low to moderate-income individuals and families with disabilities. The property renovations included the replacement of windows, HVAC systems, cabinets, doors, flooring, appliances, water heaters, insulation and paint. Household incomes will be limited to 50% of area median income. The existing tenants will remain in the units. The project was completed in July 2012 and the units have been leased to eligible families. 4) Abilities of Morningside II On October 8, 2009, Abilities Inc. of Florida submitted an application to the City in the amount of $86,000 to acquire real property and make renovations to rental housing units located at 2500 Harn Blvd., Units A-8, D-4 and E-12 and 2501 Harn Blvd., Units J-6, J-7, D-9, D-10 and H-24. The total project costs were estimated at $1,283,000. On September 2, 2010, the application for this project was amended to $200,000. The loan was approved by the City as a zero percent, 30-year loan with a five-year deferment. The funding for the project includes $150,000 from the HOME Investment Partnership Program and a $50,000 match from the Pinellas County Housing Trust Fund Program. Abilities Inc. of Florida is a not-for-profit corporation organized in 1959 principally for the purpose of providing vocational evaluation, case management, job training, and employment services for persons with disabilities. The parent corporation includes several affiliate not-for-profit corporations including Abilities at Morningside II, which is the latest expansion of the housing programs sponsored by Abilities Inc. of Florida. The Abilities at Morningside II Project will provide residential units that are scattered throughout the existing condominium complex. The units will be fully wheelchair accessible on the first floor and retrofitted for sensory disabilities for units located on the second floor. The tenant portion of the rents will not exceed 30% of the adjusted gross income for the household, with the balance of the monthly rent being provided by HUD through a Project Rental Assistance Contract. First Program Year CAPER 5 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The renovations were interior upgrades including new cabinets, ceramic tile, showers, marble window sills, toilet and bath accessories, minor plumbing modifications, HVAC, minor electrical work, new vanities and integral oval sinks, minor drywall patch, painting and finish trim and were completed in June 2012. The units are 100% leased. 5) Homeless Emergency Project, Inc. – HEP West Apartments Project Another project funding in prior years that was not complete during this reporting period is Homeless Emergency Project, Inc. – Veteran Housing Development Project. On May 3, 2010, the Homeless Emergency Project (HEP) submitted an application to the City in the amount of $100,000 to acquire vacant real property located at 1250 Palmetto Street. The property was previously owned by the Pinellas County School Board. HEP is a 501(c) (3) non-profit organization that was founded in 1986 to meet the needs of a growing number of homeless individuals and families. HEP provides emergency shelter, transitional housing, and family rental units for the homeless population. In addition to housing, the agency provides food, intensive case management, clinical services, free dental care, child care and other supportive services to the homeless. The vacant land will be used to develop transitional housing for homeless veterans and individuals. The sale price was undetermined at the time of the application; however, a February 10, 2010 appraisal listed the value of the land at $558,000. The subject property is 2.9 acres. On August 3, 2010, HEP submitted an amended application for the acquisition and construction costs in the amount of $365,000, the sales price the owner had agreed to sell the property for and an application in the amount of $302,000 for a portion of the development costs for the construction of 32 fully-furnished, single occupancy apartment for male and female veterans. The total development cost for the project is $3,497,144. The sources include the City contributing an additional $725,000 (in addition to the $372,340 provided for land acquisition), Pinellas County contributing $1,800,000, and the agency providing $599,804. The City’s commitment for the development project was presented and approved by the Neighborhood and Housing Advisory Board on November 22, 2011. The Clearwater City Council approved the project on December 1, 2011. The Ribbon Cutting Ceremony took place on October 25, 2012. NEW RENTAL PROJECTS During this reporting period, the City provided funding to three new projects and modified the terms of an existing housing project to ensure its performance. The three new projects include the following: 6) Prospect Towers of Clearwater, Inc. On April 4, 2012, Prospect Towers of Clearwater, Inc. submitted an application to the City in the amount of $800,000 to renovate Prospect Towers located at 801 Chestnut First Program Year CAPER 6 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Street. The renovations will include replacing the water tanks, air handlers, pipe insulation, modernize the elevators, and other eligible improvements. Prospect Towers is a 208-unit apartment building that is comprised of 96 efficiency units and 112 one-bedroom units. The property includes a seventeen-story building and parking lot. The features include utilities (Electric, Gas, Water and Sewer) in the rent, 24/7 on-site Desk Clerks, Emergency Call Buttons, Community Library, and an on-site Wellness Center. Prospect Towers was originally funded through HUD’s Section 231 Mortgage Insurance Rental Housing for the Elderly Program, which required the project to remain an affordable housing development. The Section 231 Program was designed to increase the supply of rental housing specifically for the use and occupancy of elderly persons and/or persons with disabilities. Prospect Towers’ residents must be at least 62 years of age or have a disability and the capability to care for the apartment in which they reside. Recently, Prospect Towers repaid the loan to HUD, which no longer obligates Prospect Towers to remain affordable. By approving this 30-year loan with a five-year defined repayment at $6,000 payable for year one and $12,000 payable for years two through five and an amortized 25- year loan on the remaining balance at one percent interest rate per annum, the City will ensure that the housing units remain affordable over the next thirty years. The City will require Prospect Towers to enter into a land use restrictive agreement for a 30-year affordability period on the HOME-assisted units (total of 20 units). As with the original obligation, Prospect Towers has indicated their intent is to keep not only the HOME-assisted units affordable, but all units affordable. The Articles of Incorporation state in Article Third the purposes of the corporation including "to provide for elderly families and elderly persons on a non-profit below cost basis rental housing....". Similar language is found in the Bylaws, Article II, Section 1(a). The City of Clearwater will base affordability upon rents being at or below the Fair Market Rent level, as adjusted annually by HUD and will monitor the loan on a yearly basis. The Prospect Towers Board of Directors unanimously approved the term sheet at their meeting on May 22, 2012. The agency is currently renovating the units with completion expected in the next reporting period. 7) Boley Centers, INC. – Sunset Point Apartments Development Project In September 2011, the City of Clearwater placed a Notice of Funding Availability for development of rental housing projects funded through the Neighborhood Stabilization Program 3. Boley Centers, Inc. submitted an application on September 26, 2011 for the Sunset Point Apartments Acquisition/Development Project and Catholic Charities submitted an application for the San Remo Apartments Acquisition/Renovation Project. After careful deliberation, Boley Centers, Inc. was awarded $180,000 on November 3, 2011. On March 27, 2012, Boley Centers, Inc. submitted a request for an additional $166,451 for additional construction costs and impact fees associated with the project. The total requested for the project was $346,451. First Program Year CAPER 7 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The Sunset Point Apartments is a proposed fourteen-unit development that will be financed largely with a Section 811 Capital Advance Grant from the U. S. Department of Housing and Urban Development. The HUD 811 grant will pay for a large portion of the construction of the development. Additionally, the HUD 811 comes with a Project Rental Assistance Contract which provides a project based rental subsidy. Boley Centers, Inc.’s proposal was for the cost of the land at $175,000 and closing costs estimated at $5,000. Boley Centers, Inc. estimated that the HUD 811 award would be for $1,787,263. Boley Centers, Inc. would provide an additional $10,000 as the initial capital advance. The total project cost is estimated at $1,975,687. Boley Centers, Inc. has acquired the vacant land with a bridge loan from the Bessie Boley Foundation. The bridge loan allows Boley Centers, Inc. the ability to acquire property in advance of the HUD application process, but must be repaid in order to allow the foundation to continue providing such advances. The project, located at 1401 and 1443 Sunset Point Road, consists of one eight-unit building and one six-unit building with a two story design. All units are one bedroom for individuals who are very low-income and are diagnosed with a mental illness. Each one-bedroom unit is approximately 540 square feet with all common areas handicap accessible. Two of the units will be designed for accessibility and adaptability for various types of disabilities, including wheelchair usage. An additional unit will be designed for an individual with a sight and/or hearing impairment. The units will be designed to implement Green initiatives. The proposed development is shovel-ready. The plans and specifications have been submitted for permitting, the site plan has been approved by the City, the SWFWMD permit has been issued, and a contractor has been chosen and provided a bid. The bid has been reviewed by a certified HUD-approved estimator and a Phase One Environmental Site Assessment has been completed. The assessment deemed the property environmentally clean. The project is scheduled to commence in January 2013. The housing provided through this project is intended solely for adults with a chronic and persistent mental illness who have very low-income (most will have less than 35% AMI). All of the units will be provided to individuals whose income is 50% of AMI or below. Their primary diagnoses are schizophrenia or major mood disorder. Most have a long history of psychiatric hospitalization. Many also have had substance abuse problems. The development of permanent, independent housing units provides opportunities for clients who desire and need restrictive housing options than they would have in group homes or supervised apartments. Boley Centers, Inc. is the leading provider of residential services in Pinellas County for adults with a severe and persistent mental illness and the only provider for the non-elderly. Boley Centers, Inc. currently has 275 supported housing beds with 23 under development. There are currently 557 individuals on Boley Centers, Inc’s waiting list for HUD 811 housing. There are 317 people on the Boley Centers, Inc’s tenant based rental housing vouchers waiting list. 8) Pinellas County Housing Authority – Norton Apartments First Program Year CAPER 8 EXHIBIT: FY 2011/12 CAPER 2012-12-11 On September 14, 2012, Pinellas County Housing Authority, Inc. (PCHA) submitted an application for funding to renovate Norton Apartments. The requested funds of $304,466 will be used for roofing, flooring, kitchen & bathroom cabinets with counter replacements, and energy efficient fixtures to include hot water heaters, new lighting, and ceiling fans as all of these items have reached or are beyond their useful life. These improvements will benefit the residents whose income is at or below 50% of AMI, both in energy efficiency and improved living standards. Norton Apartments is a HUD-subsidized, project-based Section 8 property located at 1450 South Martin Luther King, Jr. Avenue. The property consists of 48 units serving residents at or below 50% AMI (currently 87% of the residents are extremely low- income at or below 30% AMI). PCHA acquired the property on March 15, 2011. The previous property owner filed bankruptcy and during their ownership, HUD had threatened termination of the Housing Assistance Payments contract on the property due to three failed REAC inspections. PCHA has secured a 20-year Housing Assistance Payments contract to ensure the units remain HUD-subsidized. PCHA has infused over $3.4 million into the acquisition and rehab of Norton Apartments. Further improvements are needed to finish the needed rehab. No. of Buildings: 6 residential plus 1 community space Unit mix: Bedroom No. of One or Sq Ft Rents* Size Units of Two No. of This Type Story Baths 1 1 556 $725 8 1 2 1 784 $899 15 1 3 2 1,065 $984 16 1 1/2 4 2 1,284 $1,120 6 2 ADA 1 784 $899 3 1 *Rents are subject to HUD-approved annual renewal amounts PCHA has the capacity and resources to see this project to completion. Construction will commence on October 1, 2012 with a scheduled completion date of April 30, 2013. HOMEOWNER REHABILITATION PROGRAM FY 11-12 9) Palmetto Park Apartments Loan Restructuring In this reporting period, the City modified the terms of the mortgage provided to Palmetto Park Apartments to maintain its affordability. On December 31, 2001, the City of Clearwater City Council approved a $700,000 loan to Greenwood Apartments, LLC c/o Banc of America Community Development Corporation (BACDC) to purchase/renovate Palmetto Park Apartments (formerly known as Greenwood Apartments). Palmetto Park Apartments is a 192-unit rental housing complex originally built in the 1950’s. The property is located at 1001 North Martin Luther King, Jr. Avenue. The original loan included an eighteen-year term with a 10-year deferment or twenty-four months of positive cash flow after the Developer’s fee, whichever came first, and a three percent interest rate from year eleven through year eighteen. First Program Year CAPER 9 EXHIBIT: FY 2011/12 CAPER 2012-12-11 At the time of renovation, the project costs were estimated at $13 million. First mortgage financing was through Pinellas County Housing Finance Agency bonds in the amount of $6,500,000; other sources of funding included City of Clearwater SHIP funds at $700,000, Pinellas County SHIP funds at $300,000, tax credit equity at $3,900,000, Neighborhood Reinvestment Corporation (through Clearwater Neighborhood Housing Services, Inc.) at $200,000, a Brownfields grant at $21,000, Banc of America Equity at $1,100,000, and a deferred developer fee at $1,100,000. The City injected an additional $300,000 on March 20, 2003 to bring its total loan amount to $1,000,000 for the acquisition/renovation project. It was anticipated the City would receive approximately $1.25 million in return for its investment through the loan repayment with interest. Due to prior problems with lease-up, high vacancy rates, and low rents, the project did not generate enough positive cash flow to pay the City loan (in second position). The property was encumbered by over $9.4 million of debt and was estimated to be valued between $1.3 and $1.5 million in 2012. The amount due to the City, including interest, is $1,185,153. In order to improve the project’s status, BACDC sold its’ interest to HallKeeen Management, Inc (Hallkeen). As part of the contract with HallKeen, BACDC paid off the existing $3.4 million first mortgage. In addition, another $1.8 million of BACDC loan was eliminated thereby lowering the property debt to $4.2 million. Hallkeen is a for-profit professional real estate management and investment company with a focus on quality affordable housing communities. Hallkeen manages over 65 properties and 6,500 units of housing along the east coast and takes great pride in its experience and reputation as a strong community partner in planned development and redevelopment initiatives that serve a mix of uses and populations while promoting economic development, affordable housing, smart growth, adaptive reuse and historic preservation principals. Hallkeen is an investor in about 60% of the communities it manages. The City of Clearwater modified its loan from 18 years to a new 30-year, 3% interest loan, starting on the closing date; increased the loan amount to include accrued interest to date of closing; restructured cash flow priorities; and extended the Land Use Restriction Agreement. This restructure allows the project to remain solvent and allowed HKM to reduce project debt. In addition, the City will begin to receive an annual return on its investment beginning at an estimated amount of $52,533 in 2012, increasing to $78,998 in 2017, and elevating until the loan is repaid. The increase in net operating income would allow Hallkeen to invest in community projects at the complex. b. Homeowner Strategy The strategies for homeownership activities are listed as follows: 1.Increase homeownership within the City of Clearwater; 2.Bring housing up to standard (and modernize when possible); 3.Remove architectural barriers; 4.Demolish units that prove economically unfeasible to rehabilitate and provide relocation benefits; First Program Year CAPER 10 EXHIBIT: FY 2011/12 CAPER 2012-12-11 5.Ensure housing costs are in the general range of 30% of household income, and; 6.Promote energy efficiency and prevent loss of homes. Sixty-seven percent of the housing units in Clearwater are over 20 years of age. To assist homeowners who need rehabilitation, the City offers loans through the Housing Division and through the approved housing non-profits participating in the City’s Housing Pool. The loans are available to owner-occupied households with incomes that are very-low to moderate, with a priority on very-low and low income households. During FY 2011-12, the City made a total of fourteen (14) owner-occupied rehabilitation loans with CDBG and SHIP Program funds. One (1) SHIP-only loan was provided to a low to moderate-income family with income of less than 50% of area median income. An additional combination of CDBG and SHIP loans were provided to thirteen (13) low to moderate-income families. Of those loans, two (2) were provided to families with income less than 50% of area median income and eleven (11) loans were provided to families with income between 50-80% of area median income. Homeowner rehabilitation produced $244,329 in expenditures from the CDBG Program with an additional $78,249 in SHIP funds. The total expenditures from all funds were $322,578. HOMEOWNER REHABILITATION PROGRAM FY 11-12 Program Less than 50-80% Over Total 50% AMI AMI 80% Units AMI CDBG Program 2 9 0 11 SHIP Program 1 2 0 3 Total 3 11 0 14 In addition, the City worked on the following homeownership new construction projects: 1) Pinellas County Habitat for Humanity Community Housing Development Corporation, Inc. A Community Housing Development Organization is a private non-profit, community- based service organization whose primary purpose is to provide and develop decent, affordable housing for the community it serves. To assist in achieving these purposes, the City of Clearwater, under the HOME Investment Partnership (HOME) Program, must reserve not less than 15% of their HOME allocations for investment in housing to be developed, sponsored, or owned by Community Housing Development Organizations (CHDOs). First Program Year CAPER 11 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Pinellas County Habitat for Humanity Community Housing Development Organization, Inc. (PC Habitat for Humanity CHDO) is a Florida not-for-profit corporation established in August 2010 to provide decent housing that is affordable to low to moderate-income families and to further the affordable housing mission of Habitat for Humanity of Pinellas County, Inc. On September 11, 2011, PC Habitat for Humanity CHDO applied for a designation as one of the City’s eligible CHDOs and for funding to develop affordable housing. On December 20, 2011, the City entered into a CHDO agreement with PC Habitat for Humanity CHDO to provide funding in the amount of $225,808.36 to develop affordable housing. The funding provided were through the FY 2007, 2009 and 2010 HOME Program CHDO set-aside allocations of $52,697.26, $88,352.85, and $84,758.25, respectively. The CHDO agreement had a one-year effective term from October 1, 2011 through September 30, 2012. Due to delays outside the scope of the organization, the agency was unable to meet its obligations. The agency has obtained the necessary approvals and is now ready to move forward with the project. The agency has requested to enter into a new two-year agreement to purchase three vacant parcels in the Stevens Creek Subdivision to build new single family homes and to recertify the agency as a CHDO for an additional year. HOME Program regulations require grantees to recertify CHDOs annually or each time they receive additional set-aside funds. 2) Pinellas County Habitat for Humanity – Stevens Creek Housing Development Project Habitat for Humanity of Pinellas County, Inc. (Habitat) originally submitted an application on December 19, 2008 for funding in the amount of $600,000 to acquire real property that will be used to build single family homes for low to moderate- income families. The funding was approved through the Pinellas County housing Trust Fund in the form of a deferred payment loan with no interest. The funds will be repaid when each home is sold to an eligible homebuyer. After purchase, Habitat obtained a $124,000 grant from the City through CDBG funds to demolish the structures. The said property is located at 1884 Betty Lane and contains approximately 8.81 acres of land. The site is the former Homer Villas, a rental community previously owned by the Clearwater Housing Authority. The acquisition is subject to Habitat building affordable housing units for mixed income families. A minimum of 50 units must be for families whose income is less than 80% of median income. The property acquisition cost was $1,189,350 which equals $20,158 per unit acquisition cost. Other investments in the acquisition/development process included financing from Pinellas County and Neighborhood Lending Partners of West Florida, Inc. On September 29, 2008, Pinellas County provided a HOME Investment Partnership Program loan in the amount of $1.425 million to Habitat for a portion of the acquisition costs and site improvements. Other Pinellas County investments in the development of the housing units included $730,000 in funding through the Neighborhood Stabilization Program 2 on July 29, 2011. First Program Year CAPER 12 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Also on July 29, 2011, Neighborhood Lending Partners of West Florida, Inc. provided a revolving line of credit in the initial amount of $500,000 with a maximum principal indebtedness, including future advances of $1 million. To facilitate funding for the completion of 25 units in the subdivision, Habitat requested funding from the City through its Neighborhood Stabilization Program 3 for construction financing. 3) SP Country Club Homes, LLC – Housing Development Project On March 17, 2008, SP Country Club Homes, LLC (the Borrower) entered into a contract with the City of Clearwater to purchase a 2.07 acre parcel to construct and sell a 31-unit townhouse project named “Country Club Homes”. The units would vary from two to three bedroom units and would be sold between $142,000 and $156,000 to eligible homebuyers whose income is less than 120% of area median income. The funding involves an initial commitment from the City utilizing Community Development Block Grant Program in the amount of $700,000. An additional funding commitment from the Suncoast Partnership with funding through the Neighborhood Stabilization Program 2 was also required. This included funding though Pinellas County and Neighborhood Lending Partners. To stimulate construction and home sales, the Borrower requested additional funding to build a four-unit building. The City reviewed the Borrower’s request to build the units located at 1281, 1283, 1285, and 1287 Sawgrass Street with the City providing conditional approval as follows: A loan in the amount of $475,770 through the Neighborhood  Stabilization Program 3 for the development of four town home housing units referenced above. The loan amount of $475,770 will be provided to SP Country Club, LLC upon the satisfactory completion of the construction work as identified in the Developer Agreement. The loan will be provided as a zero-percent (0%) 24-month loan. The  construction loan is a 24-month deferred payment loan with no payment required during the 24-month construction period. Should the Borrower default on the loan during the construction period, the entire amount of the loan will become due and payable. Once the four units are built, the loan will be satisfied as each unit is sold to an eligible homebuyer. The amount for the loan will be repaid through the sales proceeds. The City may leave an amount behind in each sale through a developer subsidy or affordability subsidy for down payment and closing cost assistance to the homebuyer. The homebuyer must enter into land use restrictive covenant for a thirty-year affordability period. Default conditions will be outlined in the mortgage and note. c. Homebuyer Strategy The strategies for homebuyers include housing counseling programs that address pre-ownership issues, credit counseling, budgeting and foreclosure prevention to the very-low, low and moderate-income households. The 2012 Median Income for a family of four (4) in the Tampa/St. Petersburg/Clearwater Area is $56,400. The low- First Program Year CAPER 13 EXHIBIT: FY 2011/12 CAPER 2012-12-11 income threshold is $45,100 for households at 80% of area median income and $28,200 for households at 50% of area median income. Other strategies include easy access to affordable homeownership opportunities by providing larger subsidies to the very-low income credit-ready households and those purchasing homes within the City’s target areas. The homebuyer strategy also provides a means to finance the cost of rehabilitation as part of acquisition, providing additional affordable housing units to very-low and low-income households, upgrade neighborhoods and encourage activities to promote safer neighborhoods. The City offers several programs that assist in making housing more affordable to very-low to moderate-income homebuyers. The City’s Homeownership Program lends funds to purchase land, provide down payment assistance, pay impact fees, pay disposition costs, pay closing costs and build new homes for income eligible homebuyers. Funds in this program are also available to approved non-profit agencies financing their clients home ownership needs. Currently these agencies include: 1.Clearwater Neighborhood Housing Services, Inc. 2.Habitat for Humanity 3.Largo Area Housing Development Corporation 4.Tampa Bay Community Development Corporation The funds will be leveraged against private sector financing to provide affordable housing. The five-year goal for homebuyers calls for assisting 100 homebuyers with down payment and closing cost assistance and providing 80 homebuyers with educational services in regards to purchasing a home. The City did not budget funding for housing counseling as a single project. Instead, housing counseling services was provided to homebuyers who purchased homes with HOME Program funding. Thirteen (13) individuals/families took part in the education/counseling services during this reporting period. Eleven (11) participated in both TBCDC Programs (Homeownership Counseling and Homebuyer Education Programs) and two (2) participated through Clearwater Neighborhood Housing Services, Inc. Housing Education/Counseling Programs. Other activities supported by the City included providing funding for the acquisition of vacant land and building single family homes, providing funding to purchase existing homes and rehabilitating them and providing down payment and closing cost assistance to purchase new and existing homes. In this reporting period, $1,198 in CHDO HOME funds was expended by Clearwater Neighborhood Housing Services. These funds were used to complete a project that began in a prior year. The City’s Down Payment and Closing Cost Program provided new homebuyer opportunities to fourteen (14) families. All of the families assisted had incomes between 50-80% of area median. The average purchase price of the homes was First Program Year CAPER 14 EXHIBIT: FY 2011/12 CAPER 2012-12-11 $100,021. HOME BUYER PROGRAM FY 11-12 Program Less than 50-80% Over Total 50% AMI AMI 80% Units AMI Home Program 0 0 0 0 HOME/SHIP Program 0 12 0 12 HOME/SHIP/ PCHTF Program 0 2 0 2 Total 0 14 0 14 Note: HOME Program funds require a local match, unless it is a CHDO Project. SHIP Program funds do not require a local match. A total of $147,787 in HOME funds, $11,250 in Pinellas County Housing Trust Program funds and $38,013 in SHIP funds were provided to make homeownership possible. This public investment of $197,050 resulted in $1,272,884 in private capital being placed in the City’s economy. d. Homeless Strategy Policy Direction The Homeless Leadership Board (HLB) was created on February 1, 2012, through the merger of the Pinellas County Coalition for the Homeless, Inc. and the Homeless Leadership Network. Its mission is to prevent, reduce, and end homelessness in Pinellas County. The HLB was created by an Interlocal Agreement among: Pinellas County; the Cities of Clearwater, Largo, Pinellas Park, St. Petersburg, and Tarpon Springs; the School Board of Pinellas County; the Pinellas-Pasco Public Defender’s Office; and the JWB/Children’s Services Board. The HLB has a maximum of 21 members, of which seven are elected officials. The remaining members represent business, service providers, the faith-based community, a developer, hospitals/medical care, community leaders, and a homeless/formerly homeless person. The roles and responsibilities of the Homeless Leadership Board are: Policy: Set and implement policies for the homeless services system and o ensure the system and its parts adhere to them. System Planning: Plan, implement, and advocate for design and critical o activities of the Pinellas system of services. Oversight: Monitor and report on system and provider performance o towards adopted community-wide goals/outcomes Accountability: Design, track, and report on outcomes and accountability o measures to ensure resources are used effectively and homeless persons gain stable housing. First Program Year CAPER 15 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Operations: Perform all ‘Lead Agency’ responsibilities for federal and state o homeless funding, such as the HUD Continuum of Care and the state’s homeless grants. Financial: Administer funding from federal, state, and local public and o private resources for homeless services, provide strategic alignment of local funding to best meet the county-wide service system needs, and secure additional resources. Coordination: Coordinate planning, funding, and activities with existing o bodies as much as possible, such as Juvenile Welfare Board, the Low Income Housing and Health/Behavioral Health Networks, HUD-funded County and City Emergency Solutions Grants and CDBG funds, Pinellas County Health & Human Services, the Public Housing Authorities, etc. Advocacy: Advocate for effective homeless/at-risk services at the local, o state, and federal levels. There are two major Councils under the HLB with very specific roles. The Providers Council (made up of public and private homeless and at-risk service providers) develops recommendations to the HLB to improve the homeless services system, create policies, and address gaps in services. The Funders Council (soon to be created, composed of representatives of public and private funders of homeless/at- risk services) will develop recommendations to the HLB on how funds controlled by the HLB are distributed, and how all homeless funding in the County can be better coordinated. The main focus areas for the HLB for the next fiscal year are: 1.Re-Design of Homeless/At-Risk Services System a.Create a homeless services system that emphasizes moving people from homelessness to permanent housing with wrap-around services more rapidly, while making it easier for the homeless/at-risk persons and families to get help. b.Create and implement Coordinated Access and Assessment process that is the same across all related programs and systems, starting with one for families with children who are homeless or about to lose housing. c.Implement some Rapid Re-Housing programming this year as funding becomes available, starting with families with children. d.Make other changes that move people into permanent housing more rapidly, including reviewing all currently-funded programs for continuing need and effectiveness. e.Complete long-term/strategic planning for system re-design, including ongoing quality improvement. f.Ensure that infrastructure (staff and TBIN) is sufficiently funded. 2.Secure Funding for Services, Short and Long-Term a.Secure funding by top priority target populations and services needed for them (families with children, unaccompanied youth, and chronic homeless). b.Prioritize ongoing funding for Safe Harbor and Pinellas Hope. c.Secure needed funds to expand portals/emergency shelters for families with children and unaccompanied youth. d.Pool resources with partners. First Program Year CAPER 16 EXHIBIT: FY 2011/12 CAPER 2012-12-11 3.Design and Implement the Performance Outcome System and Goals a.Complete the design of the performance outcomes system in this year, and implement as soon as possible. Outcomes will include new HUD- required goals as well those determined to be important locally b.Define expected community-wide outcomes for the whole system as well as individual providers, and by target populations such as families and unaccompanied youth. 4.Plan and Implement an Advocacy and Education Program for Business, Elected Officials, and Community a.Educate local community and its component parts on the causes and effective responses to homeless issues for various target populations, to garner support and possible additional targeted funding, b.Advocate for better understanding of homeless issues and need for support at the state and federal levels and with elected officials. 5.Update 10-Year Plan to End Homelessness and Set Numerical Goals That Can Be Tracked a.Make this part of the long-term/strategic planning process. b.Set specific goals by target populations, including families with children, chronic homeless, unaccompanied youth, others. c.Include evaluation measures in all goals. The City has embarked on a new effort to address the condition of homelessness in our community. We have initiated a comprehensive, holistic approach in an effort to reduce the number of homeless individuals and families in Clearwater by placing the homeless into programming that will assist them in getting off the street. On a yearly basis, nearly 700,000 people will experience homelessness across the country. According to the 2011 Point-In-Time count of the homeless population in Pinellas County, the total Pinellas County homeless count was 5,887. The majority of unsheltered homeless persons were single male, and the most common reason for current homelessness was financial problems (alcohol/drug/mental health problems was the second most common reason). There has been a long-standing myth that communities cannot do much to reduce homelessness. Yet many communities around the United States have been able to dramatically reduce homelessness in a holistic way. Ron Powers, a Pulitzer Prize- winning journalist, said that “if you always do what you always did, you will always get what you always got”. If we continue to address homelessness in the same manner that we have been doing so for decades, we should then expect to see the same results. The national best practice has proven the key is to move from an “enablement model” to a comprehensive system of “engagement”. In Clearwater, there are three programs that engage homeless individuals and families: HEP (Homeless Emergency Project), RCS (Religious Community Services) and The Salvation Army Transitional Living Center. We need to dramatically expand on the success of these three agencies by engaging each and every homeless individual in our community. Additionally, Pinellas Safe Harbor and Pinellas Hope are two temporary shelters that serve the homeless population of Pinellas County. In addition to providing shelter First Program Year CAPER 17 EXHIBIT: FY 2011/12 CAPER 2012-12-11 and food which meet a homeless person’s basic needs, all these programs also provide life-skill classes, transportation for employment, job training, mental health and other services. For FY 2012-2013, the City of Clearwater, through its General Fund, has committed to contribute $100,000 to Pinellas Safe Harbor, $50,000 to HEP, $25,000 to the Homeless Leadership Board, $25,000 to Pinellas Hope, $25,000 to RCS, and $25,000 to The Salvation Army of Upper Pinellas. Operational Support The City provided CDBG funding to two agencies assisting the homeless in this reporting period - Religious Community Services, Inc. and Westcare Gulfcoast Florida. The chart below illustrates the non-housing homeless allocations and expenditures for FY 2011-12 and prior funds expended in this reporting year. These allocations resulted in many homeless individual/families being provided a place to live and obtain other essential services. FY 11/12 Budget FY 11/12 Expended Westcare of Florida$12,000 $12,000 RCS – The Havens $50,000 $19,350 TOTAL $62,000 $31,350 Homeless Housing Actions Public Services and Facilities The City provided funding in the amount of $12,000 to WestCare GulfCoast Florida, Inc. for salary support to operate the Turning Point overnight shelter. The shelter provides an overnight facility for homeless persons under the influence of drugs and/or alcohol. It operates as an inebriate receiving and intervention program that provides for a 24-hour sobering up area, intensive case management, and placement service. The agency’s goal was to serve 150 homeless Clearwater individuals. The agency expended $12,000 and assisted 225 homeless Clearwater individuals. The City provided funding in the amount of $50,000 to Religious Community Services, Inc. for planning and design costs to develop an office building for the Havens of RCS. The Havens of RCS is a facility that offers housing and supportive services for victims of domestic abuse. The agency’s goal was to serve 15,139 domestic violence victims (women and children). The agency expended $19,350 and assisted 10,495 families. Housing 1)Covert Apartments (Jerry Howe Apartments) First Program Year CAPER 18 EXHIBIT: FY 2011/12 CAPER 2012-12-11 On June 8, 2009, Boley Centers, Inc., a private non-profit psychosocial rehabilitation and housing agency established in 1970, presented an application of funding for construction costs to rehabilitate a thirteen-unit apartment complex (Covert Apartments). Boley Centers has developed and operates fifteen (15) apartment complexes that provide 150 units of permanent, supportive housing for people with severe and persistent mental illness in Pinellas County. The total cost to renovate the Covert Apartments was $620,950 with the City’s contribution being $128,198. Other funding for this project included $117,752 from the Veterans Administration and $375,000 from Boley Centers, Inc. Covert Apartments is located at 1447 and 1451 Gulf to Bay Boulevard in the East Gateway Neighborhood Revitalization Strategy Area. This is a commercial sector that is burdened with a declining business base, deteriorated infrastructure, various building uses and vacant storefronts. The rehabilitation of the Covert Apartments is consistent with the goals and objectives of the City’s Consolidated Plan because it improved the appearance of the site and addressed homelessness in the area. The apartment complex is comprised of eight two-bedroom units, four one-bedroom units and one efficiency apartment. All of the prior tenants’ incomes were at or below 50% of area median income. The renovation did not result in any permanent relocation for the tenants. However, the tenants might have moved within the complex while their units were being renovated. The scope of the renovation included a new roof on the north building, replacement of windows, countertops and kitchen appliances, carpeting, interior and exterior painting, and making one two-bedroom unit accessible for persons with physical disabilities. The rents for the units are $750 for the two-bedroom units and $500 for the one- bedroom units. However, the tenants will only pay 30% of their adjusted income for rent projected at approximately $202 after utility allowances. The architect for the renovation was Wedding and Stephenson Architects, Inc. and the contractor is General Home Development, Inc. The project was presented and approved by the Neighborhood and Housing Advisory Board in July 2009. The project was completed in August 2011. 2)HEP Veterans Housing On May 3, 2010, the Homeless Emergency Project (HEP) submitted an application to the City in the amount of $100,000 to acquire vacant real property located at 1250 Palmetto Street. The property was previously owned by the Pinellas County School Board. HEP is a 501(c) (3) non-profit organization that was founded in 1986 to meet the needs of a growing number of homeless individuals and families. HEP provides emergency shelter, transitional housing, and family rental units for the homeless population. In addition to housing, the agency provides food, intensive case management, clinical services, free dental care, child care and other supportive services to the homeless. First Program Year CAPER 19 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The vacant land will be used to develop transitional housing for homeless veterans and individuals. The sale price was undetermined at the time of the application; however, a February 10, 2010 appraisal listed the value of the land at $558,000. The subject property is 2.9 acres. On August 3, 2010, HEP submitted an amended application for the acquisition and construction costs in the amount of $365,000, the sales price the owner had agreed to sell the property for and an application in the amount of $302,000 for a portion of the development costs for the construction of 32 fully-furnished, single occupancy apartment for male and female veterans. The total development cost for the project is $3,497,144. The sources include the City contributing an additional $725,000 (in addition to the $372,340 provided for land acquisition), Pinellas County contributing $1,800,000, and the agency providing $599,804. The City’s commitment for the development project was presented and approved by the Neighborhood and Housing Advisory Board on November 22, 2011. The Clearwater City Council approved the project on December 1, 2011. The Ribbon Cutting Ceremony took place on October 25, 2012. e. Non-Homeless Special Needs Strategy Public Services and Facilities CDBG funds were provided in the amount of $30,000 to Pinellas Opportunity Council to administer their Chore Services Program. Through this program, various chore services were provided to sixty-three (63) elderly, frail elderly, developmentally- disabled and physically-disabled individuals to assist them in remaining in their home. The City provided funding in the amount of $3,500 to Personal Enrichment through Mental Health Services, Inc. for salary support to operate their Family Emergency Treatment Center. The center provides assessment, crisis intervention counseling, individual and/or group support counseling, substance abuse assessment and intervention, medication evaluation and administration, service and treatment planning, referrals and other related services. The agency’s goal was to serve 163 residents of Clearwater. The agency expended $3,304 and assisted 213 Clearwater residents. The City provided funding in the amount of $55,000 to Directions for Mental Health, Inc. aka Directions for Living for renovations to the adult services section of the building. The renovations included demolition, concrete work, millwork, doors, walls, ceiling, plumbing, HVAC and other building improvements. Directions offer a wide array of services including outpatient therapy and substance abuse treatment to adults, children or families with an identified mental health disability, resource coordination for those who have a diagnosed mental health disability and other related services. The agency’s goal was to assist 2,000 individuals and families. Housing 1) Abilities of Morningside I First Program Year CAPER 20 EXHIBIT: FY 2011/12 CAPER 2012-12-11 On September 24, 2010, Abilities of Morningside I submitted an application for funding in the amount of $216,000 to renovate rental housing units located at 2500 Harn Blvd., Units B-2, E-3, F-11, F-14, J-2 and J-8. Abilities at Morningside I is an affiliate of Abilities Inc. of Florida. Funding for this project includes $162,000 from the HOME Investment Partnership Program and $54,000 from the Pinellas County Housing Trust Program. This project will preserve the existing housing stock for low to moderate-income individuals and families with disabilities. The property renovations will include the replacement of windows, HVAC systems, cabinets, doors, flooring, appliances, water heaters, insulation and paint. Household incomes will be limited to 50% of area median income. The existing tenants will remain in the units. The project is complete and the units have been leased to eligible families. 2) Abilities of Morningside II On October 8, 2009, Abilities Inc. of Florida submitted an application to the City in the amount of $86,000 to acquire real property and make renovations to rental housing units located at 2500 Harn Blvd., Units A-8, D-4 and E-12 and 2501 Harn Blvd., Units J-6, J-7, D-9, D-10 and H-24. The total project costs were estimated at $1,283,000. On September 2, 2010, the application for this project was amended to $200,000. The loan was approved by the City as a zero percent, 30-year loan with a five year deferment. The funding for the project includes $150,000 from the HOME Investment Partnership Program and a $50,000 match from the Pinellas County Housing Trust Fund Program. Abilities Inc. of Florida is a not-for-profit corporation organized in 1959 principally for the purpose of providing vocational evaluation, case management, job training, and employment services for persons with disabilities. The parent corporation includes several affiliate not-for-profit corporations including Abilities at Morningside II, which is the latest expansion of the housing programs sponsored by Abilities Inc. of Florida. The Abilities at Morningside II Project will provide residential units that are scattered throughout the existing condominium complex. The units will be fully wheelchair accessible on the first floor and retrofitted for sensory disabilities for units located on the second floor. The tenant portion of the rents will not exceed 30% of the adjusted gross income for the household, with the balance of the monthly rent being provided by HUD through a Project Rental Assistance Contract. The renovations are now complete and the units are 100% leased. 3. AFFIRMATIVELY FURTHERING FAIR HOUSING The City of Clearwater is no longer directly enforcing fair housing laws. The responsibility has been assigned to the Pinellas County Human Relations Department since their office investigates and makes recommendations on all Fair Housing issues for other areas of Pinellas County with the exception of the City of St. Petersburg. First Program Year CAPER 21 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The City plays an active role in affirmatively furthering Fair Housing by adhering to the Human Rights Ordinance that Pinellas County adopted in 1984. Pinellas County maintains an Interlocal Agreement with the City of St. Petersburg for the enforcement of the ordinance. The City of St. Petersburg handles enforcement south of Ulmerton Road and Pinellas County enforces north of Ulmerton Road. In 2002, the City of Clearwater, along with the cities of St. Petersburg and Largo, and Pinellas County formed a Fair Housing Partnership to coordinate efforts countywide to support and expand the availability of housing to all, regardless of familial status, national origin, race, accessibility, and disability. The partnership’s tools for furthering this effort are educational programs, training, testing, assessments, and enforcement through the appropriate channels. The partnership meets periodically to review programs and to set and review goals. The City remains active in the provision of affordable and accessible housing and promotion of home ownership. The City provides information concerning home ownership, home financing, and home repairs in printed matter and has worked with our Public Communications Department to provide information in a variety of other mediums On April 13, 2012, the City partnered with the Bay Area Apartment Association, Bay Area Legal Services, the cities of Largo, St. Petersburg and Tampa, Greater Tampa Association of Board of Realtors, Gulf Coast Legal Services, Hillsborough County Equal Opportunity Administration and Pinellas County Office of Human Rights (Tampa Bay Fair Housing Consortium) to sponsor an Annual Fair Housing Certificate Program. The City provided sponsorship for programs providing workshops on Fair Housing, Accessible Home Design, Landlord-Tenant Rights and Responsibilities, and Real Estate Sales and Rentals. a. Sale or Rental of Housing Fair Housing complaints received by the City’s Equity Services Department and Pinellas County Office on Human Rights/Human Relations indicate that discrimination in the sale or rental of housing and provision of housing brokerage services does occur. The City hopes to partner with other local government agencies and conduct a study to determine the level of discrimination. b. Public Policies The high percentage of build-out in the City affects the availability of suitable land for multi-family and affordable single-family development. The City’s Community Development Code, design standards, adequate public facility (concurrency) ordinance and building code requirements influence the feasibility of affordable housing projects. Development regulations can limit the potential use of small or irregular infill parcels for affordable housing or increase costs associated with site development and construction. c. Administrative Policies Administrative policies generally support Fair Housing. These include: 1.Marketing housing programs in targeted areas. First Program Year CAPER 22 EXHIBIT: FY 2011/12 CAPER 2012-12-11 2.Providing citywide homebuyers’ assistance and education. 3.Placing educational material on the Housing Division’s webpage. 4.Carefully reviewing where affordable housing developments will be located. 5.Avoiding a concentration of very-low to moderate-income households in multi-family developments. d. Actions Taken To Overcome Impediments In 1995, the U.S. Department of Housing and Urban Development (HUD) announced that entitlement communities, communities receiving direct federal funding from Community Development Block Grant, HOME Investment Partnership and Emergency Shelter Grant programs, must conduct a study of existing barriers to housing choice. This required study is referred to as the Analysis of Impediments (AI) and is part of entitlement communities consolidated planning process. The purpose of the AI is to examine how state and local laws, private, public and non-profit sector regulations, administrative policies, procedures, and practices are impacting the location, availability, and accessibility of housing in a given area. The AI is not a Fair Housing Plan rather it is an analysis of the current state of fair housing choices in Clearwater and identifies specific barriers that need to be addressed if future fair housing initiatives are to be successful. Each jurisdiction receiving federal funds must certify that it is affirmatively furthering fair housing. The certification specifically requires jurisdictions to conduct an analysis of impediments to fair housing choice within the state or local jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. Evaluating fair housing impediments is a complex process involving diverse and wide-ranging considerations. The role of economics, housing patterns, and personal choice are important to consider when examining fair housing choice. Clearwater has relatively few impediments to fair housing. However, some issues were identified. On July 22, 2010, the cities of St. Petersburg, Largo and Clearwater and Pinellas County procured the services of J-Quad Planning Group, a fair housing consultant, to conduct an analysis of impediment to fair housing choice for each entity. The result of that analysis is listed below. The analysis of fair housing choice in the City has resulted in the identification of impediments, identified through a study methodology that included conducting focus group sessions, the construction of a demographic analysis resulting in a community profile and fair housing index, analysis of the Home Mortgage Disclosure Act (HMDA) data for the City and Pinellas County and a fair housing law and public policy and program review. The City’s commitment to furthering affordable housing through planning and CDBG/HOME program design and implementation is noteworthy. These efforts will continue to help maintain stability and strengthen its older and lower-income areas. The City and its nonprofit partners are encouraged to expand these efforts into other neighborhoods as a primary means of expanding fair housing choice. First Program Year CAPER 23 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Banking, Finance, Insurance and Other Industry Related Impediments Impediment: Impacts of the Sub-prime Mortgage Lending Crises and increased Foreclosures. Remedial Action: Continue to work with the State, National Non-Profit Housing Intermediaries, Federal Home Loan Bank, other lenders and HUD to evaluate programs and identify funding that can help reduces the mortgage default rate and foreclosure rates among low and moderate-income home buyers and existing home owners. Impediment: Low number of loan applications from minorities and low origination rates for minority applicants. Remedial Action: Continue homebuyer outreach and education efforts. Expand homeownership and credit counseling classes as part of a high school curriculum in order to help prevent credit problems later in life. Impediment: Predatory lending and other industry practices. Remedial Action: Continue to encourage financial institutions to assist low to moderate-income persons by establishing or reestablishing checking, saving, and credit accounts for residents that commonly utilize check cashing services through bank initiated “fresh start programs” for those with poor credit and previous non- compliant bank account practices. Socio-Economic Impediments Impediment: Poverty and low-income among minority populations. Remedial Action: Continue to work on expanding job opportunities through the recruitment of corporations, the provision of incentives for local corporations seeking expansion opportunities, and the assistance with the preparation of small business loan applications. Support agencies that provide workforce development programs and continuing education courses to increase the educational level and job skills of residents. Neighborhood Conditions Related Impediments Impediment: Limited resources to assist lower income, elderly and indigent homeowners maintain their homes and stability in neighborhoods. Remedial Action: Continue to support and expand program of Self-Help Initiatives based on volunteers providing housing assistance to designated elderly and indigent property owners and assist them in complying with municipal housing codes. Involve volunteers, community and religious organizations/institutions and businesses as a means of supplementing financial resources for housing repair and neighborhood cleanups. Public Policy Related Impediments There were no Public Policy Related Impediments. First Program Year CAPER 24 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The City funds programs that offer free classes for persons desiring to become homeowners. The Pinellas Realtor Organization subscribes to the Voluntary Affirmative Marketing Agreement (VAMA) and works to educate its members about Fair Housing. Training and marketing materials have been videotaped and translated into American Sign Language and Spanish. The City promotes home ownership and education at various homebuyer fairs and expositions. The City also provides funding to Community Service Foundation to provide Fair Housing Education. In addition to the Human Relations Department, the City is working with Pinellas County Realtors through the VAMA Program to further fair housing opportunities in real estate transactions. To further these efforts of the VAMA, the Pinellas County Board of Realtors enlisted the services of the Community Housing Resource Board to focus on the federal, state and local enforcement agencies, housing industry groups and volunteer community groups working together to promote fair housing practices. These efforts include: Providing public information on fair housing  Assessing community fair housing needs and identifying local problems and  issues that impede equal housing opportunity Evaluating performance and effectiveness of the VAMA  Expanding minority involvement in the real estate industry  Expanding public awareness of housing opportunities in the community  Developing cooperative solutions to problems associated with the  implementation of the VAMA Other actions during FY 2011-12 include: Continued support of Pinellas County Human Relations Department, Pinellas  County Board of Realtors, and the Community Housing Resource Board Continued to work with the local committee of American with Disabilities to  view housing related issues for homeowners, renters, or homebuyers with disabilities Provided HOME and SHIP funding in the amount of $660 to Tampa Bay  Community Development Corporation and $60 to Clearwater Neighborhood Housing Service to implement homebuyers training programs, fair housing education and assistance, and default-foreclosure prevention and counseling services Provided funding in the amount of $27,256 to Gulf Coast Legal Services to  implement a fair housing program that offers counseling services, initial needs assessment, rental eviction intervention, and marketing of fair housing programs. The agency assisted 162 individuals Provided funding in the amount of $8,000 to Community Service Foundation  to administer a fair housing program. The agency assisted 80 individuals The Pinellas County anti-discrimination effort focuses on public information and enforcement of fair housing regulations and the County’s Human Rights Ordinance. The County publishes a Housing Resource Directory that includes an overview of fair housing law, information about reasonable accommodation and accessibility, and a list of state and local enforcement agencies. The County produces a brochure entitled, Fair Housing in Pinellas County, and distributes approximately 5,000 copies annually. Below market rate mortgages, down payment and closing cost assistance are readily available through the County’s Housing Finance Authority and through First Program Year CAPER 25 EXHIBIT: FY 2011/12 CAPER 2012-12-11 other agencies. The County is also active in providing and promoting affordable housing, providing low-cost funds for home purchase or repair, and modifications to homes to make them accessible to persons with disabilities. The City directs significant resources to expand the supply of affordable rental housing and partners with a variety of for-profit and non-profit developers and the Housing Finance Authority of Pinellas County. The City also assists developers with a variety of incentives aimed at reducing development costs, impact fees, and regulatory impediments (including providing bonus densities for creating affordable housing). The City encourages mixed-income, multi-family developments to develop affordable housing in areas that are not predominantly low to moderate-income areas as part of a continuing effort to deconcentrate poverty. Funding is denied to developers who do not provide mixed-income housing where the effect could be to racially or economically segregate low-income households. 4. LEVERAGING RESOURCES The City’s efforts to provide affordable housing and other services to very low to moderate-income families have resulted in leveraging a great amount of additional resources. Through the Infill Housing and Down Payment Assistance Programs, the City continues to work closely with the lending and housing non-profits in the community to leverage private investment in home ownership. (Please see Homebuyers Section for accomplishments). In addition, the City works with Community Service Foundation, Tampa Bay Community Development Corporation, and Clearwater Neighborhood Housing Service, Inc. to provide homeownership counseling to support our housing programs. The City’s Down Payment and Closing Cost Program provided new homebuyer opportunities to fourteen (14) families. All of the families assisted had incomes between 50-80% of area median. The average purchase price of the homes was $100,021. A total of $147,787 in HOME funds, $11,250 in Pinellas County Housing Trust Program funds and $38,013 in SHIP funds were provided to make homeownership possible. This public investment of $197,050 resulted in $1,272,884 in private capital being placed in the City’s economy. FY 2011-2012 HOUSING PROGRAMS LEVERAGE RATIOS ACTIVITY TYPEPRIVATE EXPENDITURE PUBLIC EXPENDITURERATIO Downpayment Assistance$1,272,884$197,050 TOTAL$1,272,884$197,050$6.45 to 1 First Program Year CAPER 26 EXHIBIT: FY 2011/12 CAPER 2012-12-11 FY 2011-2012 COMMITTED/APPROVED HOUSING PROJECTS LEVERAGE RATIOS ACTIVITY TYPEPUBLIC/PRIVATE EXPENDITURE CITY EXPENDITURERATIO Owner-Housing Development$4,962,800$2,324,770$2.13 to 1 Habitat for Humanity $2,655,000$1,149,000 Country Club Townhomes$2,307,800$1,175,770 Rental Housing Rehabilitation$7,384,064$2,548,217$2.90 to 1 Norton Apartments$3,354,984$304,466 HEP Veterans Housing$2,399,844$1,097,300 Prospect Apartments$0$800,000 Sunset Point Apartments$1,629,236$346,451 TOTAL$12,346,864$4,872,987$2.53 to 1 5. CONTINUUM OF CARE NARRATIVE The City works closely with the Pinellas County Coalition for the Homeless and various other homeless services providers in addressing the needs of the City’s Homeless. The City listed Continuum of Care issues as a high priority in the Consolidated Plan. A total of $50,000 was provided to Religious Community Services – The Havens. The Havens facility provides housing, case management and a variety of services for victims of spouse abuse. The Havens provided spouse abuse services to 10,495 families. The City provided funding in the amount of $55,000 to Directions for Mental Health, Inc. aka Directions for Living for renovations to the adult services section of the building. The City provided funding in the amount of $27,180 to Religious Community Services, Inc. for a cooler/freezers storage system for the RCS Food Bank. The agency provided nutrient-dense foods throughout Pinellas County to 9,769 individuals and families. CDBG funds were provided in the amount of $30,000 to the Pinellas Opportunity Council to administer their Chore Services Program. Through this program, various chore services were provided to 63 elderly, frail elderly, developmentally-disabled and physically-disabled individuals to assist them in remaining in their home. First Program Year CAPER 27 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The City provided funding in the amount of $12,000 to WestCare GulfCoast Florida, Inc. for salary support to operate the Turning Point overnight shelter. The shelter provides an overnight facility for homeless persons under the influence of drugs and/or alcohol. It operates as an inebriate receiving and intervention program that provides for a 24-hour sobering up area, intensive case management, and placement services. The agency’s goal was to serve 150 homeless Clearwater individuals. The agency expended $12,000 and assisted 225 homeless Clearwater individuals. The City did not receive any applications for direct support for providing housing opportunities for persons with HIV/AIDS. The City will continue to outreach to agencies that provide services to this community. 6. CITIZENS PARTICIPATION The City maintains a Neighborhood and Affordable Housing Advisory Board to encourage public participation. The Board meets periodically to discuss and make recommendations to City staff and the City Council on housing-related issues. The City Clerk’s Office maintains minutes from the meetings. The City has not received any citizen comments on the Proposed FY 2011-12 CAPER. 7. OTHER ACTIONS a. Fostering and Maintaining Affordable Housing The City has been very proactive in fostering and maintaining affordable housing. Although the City cannot control the cost of labor, goods or land costs, the City continues to look for new and creative ways to address the issue of affordability. Some of the steps the City has taken in the past and/or is currently doing include: Design homes that are practical and efficient  Subsidize impact fees  Provide financing at below market rates, zero percent and/or deferred  payment loans Fund subrecipients to acquire vacant properties and build affordable houses  Work with subrecipients to acquire homes foreclosed by HUD and resell them  as affordable housing units Pay for infrastructure improvements with general revenue funds  Change the City’s Development Code to address other development issues  Work with the local housing authority to buy property and resell for affordable  housing Work with developers to put together applications for funding through the  Low-Income Housing Tax Credit Program, State of Florida Housing Bond Program and other resources to build or rehabilitate rental units for affordable housing b. Barriers to Affordable Housing In the early years (1992 – 1995) of the City’s SHIP Program, the Clearwater's Affordable Housing Advisory Committee (AHAC) reviewed the following areas to identify potential barriers to affordable housing: First Program Year CAPER 28 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Affordable Housing Definitions  Permit Processing  Impact Fee Requirements  Infrastructure Capacity  Residential Zoning Density  Transfer of Development Rights  On-Site Parking and Setback Requirements  Zero-Lot Line Development  Sidewalk and Street Requirements  Regulatory Review Processes  Inventory of Lands Suitable for Affordable Housing Development  The City began receiving SHIP Program funding in 1992 when the Florida Legislature adopted the Sadowski Act. The SHIP Program is a dedicated source of affordable housing funds that are provided annually to cities and counties within the State of Florida. One of the driving forces behind the passage of the Sadowski Act was the Florida Homebuilders and Contractors Associations. As a result of their lobbying effort, SHIP jurisdictions each year must expend 75% of their funds, entitlement and recaptured funds, on activities that involve construction and/or rehabilitation of homes, and in addition, 65% of the funds, entitlement and recaptured funds, must result in homeownership. A major requirement of the SHIP Program, as well as a condition of receiving continued funding, was each jurisdiction had to adopt affordable housing incentives that would assist in the implementation of their affordable housing activities. Each SHIP entitlement community was required to adopt an Affordable Housing Incentive Plan (AHIP), which contained, at a minimum two statutory required incentives: 1. Assurance that permits as defined in Chapter 163.3164(7) and (8) F.S. for affordable housing projects are expedited to a greater degree than other projects; 2. An ongoing process for review of local policies, ordinances, regulations, and plan provisions that increase the cost of housing prior to their adoption (420.9071(16) F.S.). During the 2007 legislative session, the Florida legislature passed House Bill 1375. Under this bill, approval was granted for the creation of Section 420.9076 of the Florida Statute. This statute requires counties and cities receiving SHIP funds to appoint an eleven member Affordable Housing Advisory Committee (AHAC). The statute further provides that the committee be made up of members from a specific industry or a specific group as identified in the statute. The requirement was largely met through the use of the City’s existing Neighborhood and Affordable Housing Advisory Board (NAHAB). The City Council adopted Resolution No. 08-15 that created and appointed the AHAC. The duties of the AHAC included reviewing policies and procedures, ordinances, land development regulations and the City’s adopted comprehensive plan and recommending specific actions or initiatives to encourage or facilitate affordable housing. First Program Year CAPER 29 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Per state statute, at a minimum, the AHAC reviewed and made recommendations on the following: 1.The processing of approvals of development orders or permits, as defined in F.S.163.3164 (7) and (8), for affordable housing projects is expedited to a greater degree than other projects. 2.The modification of impact-fee requirements, including reduction or waiver of fees and alternative methods of fee payment for affordable housing. 3.The allowance of flexibility in densities for affordable housing. 4.The reservation of infrastructure capacity or housing for very-low income persons, low-income persons, and moderate-income persons. 5.The allowance of affordable accessory residential units in residential zoning districts. 6.The reduction of parking and setback requirements for affordable housing. 7.The allowance of flexible lot configurations, including zero-lot-line configurations for affordable housing. 8.The modification of street requirements for affordable housing. 9.The establishment of a process by which a local government considers, before adoption, policies, procedures, ordinances, regulations, or plan provisions that increase the cost of housing. 10.The preparation of a printed inventory of locally owned public lands suitable for affordable housing. 11.The support of development near transportation hubs and major employment centers and mixed-use developments. In July 2008, the Economic Development and Housing Department contracted with Wade Trim, Inc. to help facilitate the process. Wade Trim coordinated the preparation of the Local Housing Incentive Strategy in cooperation with City staff and the AHAC. The Local Housing Incentive Strategy encompasses the definition, vision, strategic focus areas and incentive recommendations in order to facilitate the development of affordable housing in the City. The AHAC convened on four occasions in order to develop and identify the value of affordable housing, identify the principles for Clearwater’s affordable housing and develop a vision statement to be included as part of the Local Hosing Incentives Strategy. A separate focus group consisting of for-profit and non-profit affordable housing developers was organized in order to gain additional insight and recommendations concerning the incentive strategies. The report highlights an affordable housing vision statement that was derived from input by board members. Additionally, AHAC members focused on the values that affordable housing brings to the City. The themes identified centered on the values that affordable housing supports a dynamic and competitive economy, improves the social well being that builds a sense of community, and ensures that the City’s workforce can live within the City limits. Furthermore, the AHAC also identified and recommended provisions that would identify adaptive reuse practices, require triennial updates to the City’s Local Housing Incentives Strategy, support design standards for affordable housing developers, improve communication and marketing channels for affordable housing, diversify financing resources, and support development of public and private partnerships for the provision of affordable housing. First Program Year CAPER 30 EXHIBIT: FY 2011/12 CAPER 2012-12-11 By statute, the initial report was submitted to the City Council by December 30, 2008. After the initial submission, the reports become due every three (3) years on st December 31 of the year preceding the submission of the Local Housing Assistance Plan (LHAP). The City Council reviewed the Local Housing Incentives Strategy recommendations that were approved by the AHAC on November 19, 2008. The City Council adopted an amendment to the LHAP to incorporate the local housing incentive strategies it will implement for the City. The amendment included, at a minimum, the state required incentive strategies specified above. Upon approval, the City notified the state of its adoption of an amendment to its LHAP to incorporate the incentive strategies. The notice included a copy of the approved amended plan in order to comply with the SHIP programs participation guidelines. In future years, as part of the monitoring process conducted by the State of Florida, the monitors will be evaluating how local jurisdictions are implementing their affordable housing incentives in order to ensure they are meeting their statutory obligations. These evaluations will analyze the process and policies that all affordable housing projects go through from start to finish. This process is not totally exclusive to affordable housing projects using SHIP dollars, but any affordable housing project taking place in the City, regardless of the funding source. c. Managing the Process As part of the review process for proposed policies, regulations, plans and programs, the sponsoring City department requests the Economic Development and Housing Department to analyze the economic impact of the action proposed as it pertains to the cost of housing. The analysis shows the estimated increase in cost to an average home. The analyses are maintained on file in the Housing Division of the Economic Development and Housing Department. The City holds public hearings and meetings to obtain citizen input and to respond to citizen proposals and inquiries about activities and program performances. Citizens and other City stakeholders have emphasized the need to consider the City’s diverse interests in the establishment of goals, objectives, policies and priorities; the identification of new projects and programs; and in the application, monitoring and evaluation of existing programs. Typically, the Economic Development and Housing Department staff meets with prospective affordable housing developers to determine the level of assistance and project needs. If the developer proceeds with a project, staff facilitates the plan review and permitting process through the Planning, Building and Engineering Departments. This allows the Economic Development and Housing Department to troubleshoot and streamline the process. Below is a section from the City’s Expedited Processing and Ongoing Review Policy. d. Expedited Processing i. Building Department First Program Year CAPER 31 EXHIBIT: FY 2011/12 CAPER 2012-12-11 All affordable housing projects, as defined in Chapter 163.3164(7) and (8) F.S., that are located within the City limits are required to include with their application for a building permit a request for Expedited Processing. A copy of this request must be provided to the Building Official and to the Director of the Economic Development and Housing Department. Expedited Processing affords eligible projects priority over projects without this status. When an affordable housing project receives approval, the Building Division notifies the Director who, in turn, will document the timeframe for the application process. ii. Planning Department The Planning Department will follow the City of Clearwater - Community Development Code when processing all affordable housing applications for activities that require rezoning, land-use amendments, variances, development orders, etc. Under the Code, all projects are reviewed and may be scheduled for the next meeting of the Development Review Committee (DRC – staff level review) and if needed, the Community Development Board (CDB). Many applications can be decided at the staff level and may not need to go DRC and/or CDB. When affordable housing projects and/or applications are submitted that can be decided at the staff level, they shall receive priority and be reviewed before any non-affordable housing project and/or applications. Applicants must indicate that the project will be an affordable housing development and/or project. The Planning Department has and will continue to implement, where possible, the expedited plan amendment process for large-scale amendments related to the provision of affordable housing. e. Comprehensive Plan Analysis The City’s Comprehensive Plan includes a state mandated housing element that analyzes the City’s existing and projected housing need. The element contains goals, objectives and policies that work in tandem with other housing policy documents. Fostering and maintaining an affordable housing supply is one of the element’s primary goals. The goal is supported by policies that aim to reduce barriers to public and private sector construction of affordable units. The Economic Development and Housing Department coordinated with the Planning Department in 2005 for the preparation of the Evaluation and Appraisal Report (EAR) for the Comprehensive Plan. A focus of the EAR was affordable housing. In this regard, the EAR included an assessment of the successes and shortcomings of the City’s affordable housing policies and programs, along with recommendations for improvement. The EAR recommendations were addressed in a major update of the Comprehensive Plan in 2007-2008. As part of the review process, the City formed a Citizen Advisory Committee (CAC) to provide direction in the EAR. The CAC, along with a consultant (Wade Trim, Inc.), established identification of data needs and methods of compilation, meetings, methodology of comprehensive issues analysis, and coordination with other city departments. The results were provided to the City’s Planning Department. The Planning Departments recommendations were approved by the City Council. f. Lead Based Paint First Program Year CAPER 32 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Lead based paint continues to be a serious problem throughout cities across America. It is usually prevalent in homes built prior to 1978. Clearwater’s housing stock is relatively new with the average home being built after 1970. However, the City still maintains that lead based paint is a serious issue and conducts housing inspections to determine if there are defective paint surfaces. If lead conditions are present, the lead paint is either removed or covered in a manner described by HUD. The City will continue its effort to rid structures of lead based paint and will inspect any homes built prior to 1978 for any presence of lead based paint. The City will continue to test and remove all lead based paint surfaces in structures that are being rehabilitated under our programs that are using federal funds. The City will use the services of the Pinellas County Environmental Department to test all structures with defective paint surfaces and the local Health Department to test children for elevated blood levels. The Willa Carson Community Health Resource Center continues to participate with the City by providing a meeting area for neighborhood based education programs, disseminating information on the hazards of lead based paint, and blood screenings. The City places information about lead based paint and safety on the City’s Housing Division website. Program activities include: Collaboration between public-private agencies involving housing, health, and  community-based organizations to facilitate a Healthy Home Team to go door-to-door in the targeted Brownfields area to identify children and homes at risk Assurance that children identified as at risk receive blood lead testing and the  child with elevated lead levels receives follow-up care Promotion of a public awareness campaign through education via physicians  and the community and disbursement of educational materials Routine placement of educational materials on the City’s Housing Division  webpage Assessment of homes at risk to identify lead hazard control services to  eliminate hazards identified in homes Initiation of supportive lead hazard control services to eliminate hazards  identified in homes Evaluation of prevention activities to measure the impact and outcome of  program services and intervention efforts in the community g. Poverty Level Assessment The City realized that the most effective way to reduce the number of persons below the poverty level was to increase their income through providing employment opportunities. The City provides funding to support service organizations that reduce impediments for families allowing them to rise above the poverty level. The City provides economic development opportunities to non-profit and for-profit businesses that agree to hire lower-income individuals. Through the coordination of programs, including the Environmental Protection Agency, State Brownfields Redevelopment initiatives, Juvenile Welfare Board, United Way, the Eckerd Foundation, Pinellas First Program Year CAPER 33 EXHIBIT: FY 2011/12 CAPER 2012-12-11 County WorkNet, and the University of South Florida, the City will continue to expand its efforts to reduce impediments. h. Institutional Structure To overcome gaps in institutional structures and enhance coordination, the City provided local lenders with information relative to the City’s housing programs. Together we are able to provide home ownership and homebuyer opportunities for very-low to moderate-income families. The City and its subrecipients pre-qualify clients to the lender's and City’s specifications and provides financing in the form of down payment assistance. i. Public Housing and Residential Initiatives The City understands the benefits of improving public housing and resident initiatives. To improve the lives of families residing in public housing the City targeted the children to break the cycle. The City will continue to work and strengthen our relationship with the Clearwater Housing Authority (CHA) to foster innovative public housing developments, potential joint ventures and residential initiatives. During this reporting period, the Clearwater Housing Authority assisted 1,095 families per month through their Housing Choice Voucher Program. Also through this program it expended $8,797,400 in Housing Assistance Payments. Clearwater Housing Authority assisted 1,030 families through its Public Housing Program and listed $1.8 million dollars in expenditures. 8. HOUSING a. Housing Needs The City has been very proactive in fostering and maintaining affordable housing. Although the City cannot control the cost of labor, goods or land costs, the City continues to look for new and creative ways to address the issue of affordability. Some of the steps the City has taken in the past and/or is currently doing include: Design homes that are practical and efficient  Subsidize impact fees  Provide financing at below market rates, zero percent and/or deferred  payment loans Fund subrecipients to acquire vacant properties and build affordable houses  Work with subrecipients to acquire homes foreclosed by HUD and resell them  as affordable housing units Pay for infrastructure improvements with general revenue funds  Change the City’s Development Code to address other development issues  Work with the local housing authority to buy property and resell for affordable  housing Work with developers to put together applications for funding through the  Low-Income Housing Tax Credit Program, State of Florida Housing Bond Program and other resources to build or rehabilitate rental units for affordable housing First Program Year CAPER 34 EXHIBIT: FY 2011/12 CAPER 2012-12-11 b. Specific Five-Year Housing Objectives Housing Objective One: Build 25 new mixed-income rental units in conjunction with ongoing redevelopment/revitalization projects. Federal Funds: HOME/CBDG  State/Other Funds: SHIP, FHFC programs  Housing Objective Two: Acquire and/or rehabilitate 40 units in small rental complexes for mixed-income affordable rental housing. Federal Funds: HOME/CBDG  State/Other Funds: SHIP, FHFC programs  Housing Objective Three: Preserve the existing housing stock by rehabilitating 50 units owned by low-income owner households. Federal Funds: HOME/CBDG  State/Other Funds: SHIP  Housing Objective Four: Preserve the existing housing stock by funding the acquisition and rehabilitation/expansion of 25 existing units for new low-income owner households. Federal Funds: HOME  State/Other Funds: SHIP  Housing Objective Five: Provide direct down payment/closing cost assistance to 80 low and moderate-income homebuyers. Federal Funds: HOME  State/Other Funds: SHIP, HFA Bonds  Housing Objective Six: Construct 80 new affordable, for sale, in-fill units in support of the City’s ongoing revitalization/redevelopment activities. Federal Funds: HOME/CDBG  State/Other Funds: SHIP  Housing Objective Seven: Provide credit counseling and homeownership training assistance to 80 perspective low-income homebuyers. Goals Actual Actual Actual Actual Actual Total FY FY FY FY FY 2011/12 2012/13 2013/14 2014/15 2015/16 Build Mixed 25 5 5 Income Rentals First Program Year CAPER 35 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Acquire/Rehab 40 256 256 Mixed Income Rentals Rehab Low- 50 14 14 Income Owner Housing Acquire/Rehab 25 Low-Income Housing Down 100 14 14 Payment Assistance Low-Income Housing Build New 80 26 26 Affordable Housing Housing 80 13 13 Counseling Total Housing 320 315 315 Units c. Housing Accomplishments During FY 2011-12, the City made a total of fourteen (14) owner-occupied rehabilitation loans with CDBG and SHIP Program funds. One (1) SHIP-only loan was provided to a low to moderate-income family with income of less than 50% of area median income. An additional combination of CDBG and SHIP loans were provided to thirteen (13) low to moderate-income families. Of those loans, two (2) were provided to families with income less than 50% of area median income and eleven (11) loans were provided to families with income between 50-80% of area median income. Homeowner rehabilitation produced $244,329 in expenditures from the CDBG Program with an additional $78,249 in SHIP funds. The total expenditures from all funds were $322,578. The City offers several programs that help make housing more affordable to very-low and moderate-income homebuyers. The City’s Home Ownership Program will lend funds to purchase land, provide down payment assistance, pay impact fees, pay disposition and closing costs and build new homes for income eligible home buyers. Funds in this program are also available to approved non-profit agencies financing their clients home ownership needs. Currently these agencies include: Clearwater Neighborhood Housing Services, Inc.  Community Service Foundation  Habitat for Humanity  Largo Area Housing Development Corporation  Tampa Bay Community Development Corporation  The City provided an allocation of $660 to Tampa Bay Community Development Corporation (TBCDC) to administer their Home Buyers Club and Homeownership First Program Year CAPER 36 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Counseling Program and $120 in funding to Clearwater Neighborhood Housing Services (CNHS) to implement a Housing Education/Counseling Program. The City did not provide a pool for home buyer counseling programs. Instead the City provided housing counseling services to homebuyers who participate in the HOME Homebuyer’s Program. All of the education and counseling programs were funded through the HOME Program. Thirteen (13) individuals/families took part in the education/counseling services during this reporting period. A total of eleven (11) participated in both TBCDC Programs (Homeownership Counseling and Homebuyer Education Programs and two (2) participated through Clearwater Neighborhood Housing Services, Inc. Housing Education/Counseling Programs. 9. HOME Program a. Assessment of Relationship of HOME Funds The City received an allocation of $500,323 in HOME Entitlement Funds for FY 2011-12. The majority of the funds were set aside for housing development. The table shows how funds for the entitlement allocation were budgeted this reporting period: Subrecipient Housing Pool $375,238 Community Housing Development Organizations $75,053 Program Administration $50,032 TOTAL $500,323 Funds set aside in the Subrecipient Housing Pool may be used for homeownership rehabilitation; new single-family housing construction, down payment and closing cost assistance, acquisition of real property and other related housing costs. Funds set aside for the Community Housing Development Organization are undetermined. The table lists the activities by which the funds were expended during this reporting period with the FY 2011-12 entitlement allocation, program income and reprogrammed funds from prior years. Rehabilitation Owner-Occupied $607 Administration/Program Delivery Costs $44,920 Rental Housing Development $952,750 Community Housing Development Organizations $1,198 First Program Year CAPER 37 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Down Payment and Closing Costs Assistance $182,712 Total HOME Expenditures $1,182,187 The City has three (3) certified Community Housing Development Organizations (CHDOs); Clearwater Neighborhood Housing Services, Inc., Pinellas County Habitat for Humanity Community Housing Development Organization, Inc. and Largo Area Housing Development Corporation. The City is currently soliciting other organizations to become eligible as a CHDO. b. HOME Match Report Please see Match Report in Appendix under “IDIS Reports”. c. HOME Inspections, Affirmative Marketing Actions, Outreach to Minority and Women Owned Businesses Twelve rental housing developments were or will be subject to HOME monitoring inspections. The housing developments include Wellington Apartments, Fulton Avenue Apartments, Lexington Apartments, Homeless Emergency Project – SRO 1, Homeless Emergency Project – SRO2, Abilities at Morningside 1, Abilities at Morningside 2, Homeless Emergency Project – Veterans Apartments, Prospect Towers, Inc., Norton Apartments, Pine Berry Senior Apartments, and Alpine. All housing developments provided affordable housing to low to moderate income tenants. The monitoring visits did not show any areas of non-compliance. 10. OTHER HOUSING PROGRAMS a. State Housing Initiatives Partnership (SHIP) Program During FY 2011-12, the City expended the following dollars in association with the development and preservation of loans for housing units for low to moderate-income families with down payment and closing cost assistance for new and existing units. Down Payment and Closing Cost Assistance Loan Program SHIP Funds Expended $47,389 Other Public Funds Expended $0 Private Funds Expended $976,488 Owner Equity $36,153 TOTAL $1,060,030 Funding from this program provided twelve (12) families with down payment and closing cost assistance. All twelve (12) families had incomes less than 80% of the area median income. Rehabilitation Loan Program First Program Year CAPER 38 EXHIBIT: FY 2011/12 CAPER 2012-12-11 SHIP Funds Expended $84,104 TOTAL $84,104 Funding from this program provided rehabilitation funds to three (3) families. All the families assisted had income less than 80% of the area median income. A total of $139,623 in total revenues (allocation, program income and recaptured funds) was deposited into the Pinellas County Housing Trust Fund during State FY 2011-12. These funds were generated through the following: State Annual Distribution $0 Program Income $139,623 TOTAL $139,623 b. Emergency Shelter Grants Program The City does not receive any Emergency Shelter Grant Funds. c. Community Development Block Grant Program - Recovery In June 2009, HUD awarded the City $251,549 in funding through the CDBG-R Program. Through this program the City allocated $25,154 for administration, $143,305 for sidewalk improvements and $83,090 for the East Gateway District Façade Improvement Program. During this reporting period, the City expended $7,776 for administration. The program was closed-out during this reporting period. d. Neighborhood Stabilization Program 3 Pursuant to federal regulations published in the Federal Register at 75 FR 64322 and regarding Title III of the Housing and Economic Recovery Act of 2008, as amended, and in accordance with Title XII of Division A of the American Recovery Act of 2009, as amended, additional funds were allocated under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 for the Neighborhood Stabilization Program 3 (NSP 3) and those established at 24 CFR Part 91 require the City of Clearwater to amend its FY 2010-11 Action Plan to incorporate the proposed FY 2010-11 Neighborhood Stabilization Program Action Plan. The U. S. Department of Housing and Urban Development recently awarded the City of Clearwater $1,385,801 in funding through the NSP 3 Program. The NSP 3 Program is designed to stabilize neighborhoods that have been and continue to be damaged by the economic effects of properties that have been foreclosed or abandoned. The program integrated the following principals: Retain the Community Development Block Grant distinctive requirements  Target and reconnect neighborhoods  Rapidly arrest neighborhood decline  Assure deep targeting requirements  First Program Year CAPER 39 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Ensure continued affordable housing  Support projects that optimize economic activity  Build inclusive and sustainable communities  Coordinate planning and resources  Leverage resources  The NSP 3 Program has established five allowable housing strategies for funding. They include using the funds for housing related financing mechanism, acquisition and rehabilitation, land banking, demolition, and redevelopment. It was proposed that the City utilizes its funding in the following manner: Activity Amount # of Units Financing Mechanism $350,000 6 Acquisition and Rehabilitation $397,221 4 Redevelopment $500,000 10 Administration $138,580 20 TOTAL $1,385,801 The target areas identified by HUD include the city-approved Neighborhood Revitalization Strategy Areas to include portions of the North Greenwood, South Greenwood, and East Gateway Strategy Areas. At the time of HUD’s approval of the NSP3 plan, specific projects were not yet identified. After further review and consultation, the City amended the existing Action Plan to make the following modifications: NSP3 Activities to be deleted: Establish financing mechanisms for the purchase and redevelopment of  foreclosed upon homes and residential properties. Provide financial assistance to eligible homebuyers of up to 120% AMI, o to purchase foreclosed properties in the NSP3 Target Areas. Estimated amount - $ 350,000 Acquire and rehabilitate homes and residential properties that have been  abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties. Provide financial assistance to acquire, rehabilitate and resell o foreclosed upon properties in the NSP3 Target Areas. Estimated amount - $ 397,220 Total amount from deleted activities is $747,220. NSP3 Activities to be increased: Redevelop demolished or vacant properties and use for housing.  Provide financial assistance to Boley Centers, Inc. to refinance o property acquisition costs and develop 14 units of rental housing for First Program Year CAPER 40 EXHIBIT: FY 2011/12 CAPER 2012-12-11 individuals with income at or below 50% of AMI located in the targeted NSP areas. Estimated amount - $346,451 Redevelop demolished or vacant properties and use for housing.  Provide financial assistance to SP Country Club Townhomes, LLC to o build 6 townhomes for families at or below 120% of AMI located in the targeted NSP areas. Estimated amount - $475,770 Redevelop demolished or vacant properties and use for housing.  Provide financial assistance to Pinellas County Habitat for Humanity, o Inc. to build 6 new single family homes for families at or below 80% of AMI located in the targeted NSP areas. Estimated amount - $425,000 Total amount of increased activities is $1,247,221. The focus of these proposed activities is to continue construction financing for projects already underway to ensure their success and timely completion. The benefit for moving funding to construction financing is that once the loans are repaid, the City can use those funds as program income for downpayment assistance for these and other properties. e. Pinellas County Housing Trust Fund The City of Clearwater expended a total of $315,380 in funding through the Pinellas County Housing Trust Fund Program (PCHTF) as a match to federal programs. The City provided Homeless Emergency Project with $116,907 to develop a thirty- two (32) unit apartment to be used for housing for veterans and $180,000 to Prospect Towers to rehabilitate two-hundred eight (208) rental housing units for elderly individuals and families. Other expenditures include $13,115 for down payment and closing cost assistance. f. Brownfields Program The Brownfields Area is one of the oldest sections of the City with a low-income, minority population in the most densely populated county in Florida. The City’s Brownfields area covers all three of the City’s Neighborhood Revitalization Strategy Areas. Clearwater has the distinction of being the first state-designated Brownfields area in the State of Florida. It was over ten years ago since the City was awarded its first EPA Brownfields Assessment Grant. The Clearwater Brownfields Area (CBA), with approximately 244 regulatory listed sites located in over 7,000 properties, is spread across more than 1,842 acres. Clearwater defines Brownfields as “redevelopment opportunities that result in viable economic and community development, residential, and open-space/greenspace projects.” The definition reflects a perception of Brownfields that is results-oriented, viewing challenges as opportunities rather than insurmountable liabilities. First Program Year CAPER 41 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Over the last decade, the City has moved aggressively to attract funding for its Brownfields program. The City has received a total of $2.9 million in EPA grants and over $1.8 million in state and other Brownfields related funding. Clearwater has conducted over ninety Phase I Environmental Assessments, over seventeen Phase II Assessments, and fourteen sites have been cleaned up and readied for reuse. To capture the benefits to public health, the City’s Economic Development & Housing Department Brownfields Program developed a Model Scoping Plan and Report for the Tampa Bay Region Public Health Monitoring Project (PHM). The PHM was funded from a US EPA Brownfields Assessment Grant. By integrating public health with Brownfields redevelopment, the physical, mental, social and spiritual well being of individuals, families and the community can be improved. To gain insight about health challenges faced by Clearwater communities, an initial meeting was held with local public healthcare providers. A summary report of the meeting was considered an initial measurement to develop a collaborative effort to improve community health, well-being and sustainability. Tangible benefits of Brownfields redevelopment can include health clinics, community gardens, parks and recreations area, and health related business (e.g. pharmacies, diagnostic centers). Public health monitoring offers a variety of tools that can be used to identify the public health needs that may be addressed through Brownfields redevelopment. These include mapping of site characteristics, examination of vital statistics and monitoring of health and environment (e.g. asthma surveillance, lead abatement) among other measures. The CRA acquired the Car Pro property located at 1359 Cleveland Street (see East Gateway NSRA) for environmental remediation. The City performed all the site assessments and is currently working with FDEP and USEPA to complete remediation of environmental impacts related to historical activities at the site. To date, the City received $325,440 in Brownfields Revolving Cleanup Loan Fund dollars. The American Recovery and Reinvestment Act grant funded money for Phase I environmental assessment for the property adjacent to the CarPro project located at 14 S. Evergreen. A Brownfields reuse plan for the East Gateway District was funded from the Brownfields program. The 30+ area encompasses the portion of the East Gateway District from the east side of Lady Mary Drive to the Highland Avenue/Gulf to Bay Boulevard/Court Street intersection generally including parcels along Cleveland Street and Gulf to Bay Boulevard. The subject area contains 64 parcels, constituting 20.65 acres (an additional 9.5 acres of right-of way makes up the remainder of the subject area). In 2012, the City approved $822,490 to properly close a landfill site known as Phillip Jones Park and to renovate the site to be used for youth sports, primarily as a football stadium. The project will include the complete renovation of the current football field, fencing, bleachers, press box, parking, goal posts and other miscellaneous site amenities. 11. COMMUNITY DEVELOPMENT First Program Year CAPER 42 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The City utilized a strategy of diversification when selecting CDBG eligible activities. During FY 2011-12, funding in the amount of $167,648 was allocated for administration, $222,062 for housing activities (rehabilitation, acquisition, disposition, etc.), $175,000 for program delivery costs for the City rehabilitation, infill and economic development program, $132,180 for public facilities and improvements and $141,351 for public services. In addition to the FY 2011-12 allocations, the City made available $44,263 for the demolition program, $475,900 for public facilities, $924,545 for the housing pool and $33,380 for the administration program through prior years CDBG program funds. FY 2011-12 CDBG/HOME Projects Public Service Projects The City provided funding in the amount of $8,000 to Community Service Foundation, Inc. for salary support to operate a fair housing counseling and housing placement program. The program provides housing services to help lower income families and individuals locate and secure permanent, decent, affordable housing. The program also strives to counsel households on Fair Housing Landlord/Tenant Rights, and to provide emergency food and shelter program rent and mortgage payment assistance. The agency’s goal was to serve 120 households. The agency expended $8,000 and assisted 80 households. The City provided funding in the amount of $27,256 to Gulf Coast Legal Services, Inc. for salary support to implement the agency’s Legal Aid to Preservation Housing Project. The project seeks to provide legal assistance for low and moderate-income residents of Clearwater who are victims of predatory lending practices, foreclosure rescue scams, persons who are experiencing or who have experienced discrimination and/or fraud in housing and to remedy these matters through negotiation, mediation or litigation and to assist residents in filing complaints regarding violations of Fair Housing Laws. The agency’s goal was to serve 100 individuals. The agency expended $27,256 and assisted 162 people. The City provided funding in the amount of $3,500 to Personal Enrichment through Mental Health Services, Inc. for salary support to operate their Family Emergency Treatment Center. The center provides assessment, crisis intervention counseling, individual and/or group support counseling, substance abuse assessment and intervention, medication evaluation and administration, service and treatment planning, referrals and other related services. The agency’s goal was to serve 163 residents of Clearwater. The agency expended $3,304 and assisted 213 Clearwater residents. The City provided funding in the amount of $30,000 to Pinellas Opportunity Council, Inc. for salary support to implement the agency’s Chore Services Program. The program promotes better livable opportunities by providing services to the elderly and frail elderly. The services will help to alleviate blight and blighting conditions, reduce crime, and create a sense of pride in their community by providing heavy household cleaning, yard work and minor repairs. The agency’s goal was to assist 82 elderly households. The agency expended $30,000 and assisted 63 elderly households. First Program Year CAPER 43 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The City provided funding in the amount of $14,892 to the Safety Harbor Neighborhood Family Center for salary support to operate the Neighborhood Family Center. The Bridge the Gap project is a combination of services to help individuals and families survive; stay in their homes and to keep the families together by providing food, clothing, hygiene products, baby needs, job training, and financial assistance. The agency’s goal was to assist 500 families. The agency expended $14,892 and assisted 448 families. The City provided funding in the amount of $24,000 to the Willa Carson Health Resource Center for salary support to operate a health facility. The center provides accessible, quality, culturally sensitive health care to the uninsured and underserved at no cost. The health care services include blood pressure screenings, diabetic screening, cholesterol testing, clinical breast exams, educational programs, school and work physicals any treatment of minor illnesses. The agency’s goal was to assist 730 individuals. The agency expended $24,000 and assisted 690 unduplicated individuals. The City provided funding in the amount of $12,000 to WestCare GulfCoast Florida, Inc. for salary support to operate the Turning Point overnight shelter. The shelter provides an overnight facility for homeless persons under the influence of drugs and/or alcohol. It operates as an inebriate receiving and intervention program that provides for a 24-hour sobering up area, intensive case management, and placement service. The agency’s goal was to serve 150 homeless Clearwater individuals. The agency expended $12,000 and assisted 225 homeless Clearwater individuals. The City provided funding in the amount of $12,000 to the Kimberly Home, Inc. for salary support to operate a pregnancy counseling program and provide supportive services to pregnant youths in their transitional housing program. The agency provides housing, education, case management, counseling, life skills training, other supportive services. The agency’s goal was to assist 60 youths. The agency expended $10,750 and assisted 116 pregnant youth. The City provided funding in the amount of $9,703 to the Intercultural Advocacy Institute for salary support to implement a Youth Leadership Partnership Program. th The program provides leadership and mentoring opportunities to youth in the 6 and th 7 grades. The program focus is to provide the tools and resources necessary to help youth develop leadership skills plus strong sense of identity and in turn, grow leaders from within the community to serve as role models for their peers and younger student population. The agency’s goal is to assist 30 students. The agency expended $6,805 and assisted 26 students. Public Facilities and Improvement Projects The City provided funding in the amount of $50,000 to Religious Community Services, Inc. for planning and design costs to develop an office building for the Havens of RCS. The Havens of RCS is a facility that offers housing and supportive services for victims of domestic abuse. The agency’s goal was to serve 15,139 domestic violence victims (women and children). The agency expended $19,350 and assisted 10,495 families. The City provided funding in the amount of $47,180 to Religious Community Services, Inc. for the demolition and replace costs for a 633 square foot, four room, First Program Year CAPER 44 EXHIBIT: FY 2011/12 CAPER 2012-12-11 energy efficient walk-in cooler/freezers storage system for the RCS Food Bank. The RCS Food Bank provides nutrient-dense foods throughout Pinellas County as a means to offer healthier food choices to the growing number of food-insufficient households Refrigerated foods received, stored and distributed by RCS Food Bank consists of dairy products and fresh produce; the vast majority of the frozen food is healthy proteins. The agency’s goal was to assist 69,678 individuals. The agency expended $47,180 and assisted 9,769 individuals. The City provided funding in the amount of $55,000 to Directions for Mental Health, Inc. aka Directions for Living for renovations to the adult services section of the building. The renovations included demolition, concrete work, millwork, doors, walls, ceiling, plumbing, HVAC and other building improvements. Directions offer a wide array of services including outpatient therapy and substance abuse treatment to adults, children or families with an identified mental health disability, resource coordination for those who have a diagnosed mental health disability and other related services. The agency’s goal was to assist 2,000 individuals and families. During the prior reporting period, the City provided $89,062 to Religious Community Services, Inc. - Grace House to construct a Computer Learning Center and provide additional storage. The agency was unable to complete the building during the reporting period. The building is complete and is providing computer literacy for 500 children and adults. The City provided $370,000 in CDBG funding to construct a full size lighted multi- purpose athletic field for soccer and football practice in the North Greenwood Community. The field would be developed on an existing grass area that is temporarily used for parking at the Jack Russell Stadium. The construction will include raising the area with fill dirt, irrigation, grassing, fencing and lighting. The field will be used primarily by the Greenwood Panthers Youth Football program the provided structured recreational activities for the youth in the North Greenwood Community. Housing The City provided FY11-12 funding in the amount of $597,300 and prior year funding in the amount of $2,025,620 to agencies in the City’s Housing Pool to acquire and/or develop real property, rehabilitate homes or rental units or provide down payment and closing cost assistance to eligible low to moderate-income families. Eligible agencies included in the housing pool were Clearwater Neighborhood Housing Services, Inc., Largo Area Housing Development Corporation, Inc., Habitat for Humanity of Pinellas County, Inc. and Tampa Bay Community Development Corporation. The City expended $1,140,017 and assisted 25 families with owner- occupied funding. On April 4, 2012, Prospect Towers of Clearwater, Inc. submitted an application to the City in the amount of $800,000 to renovate Prospect Towers located at 801 Chestnut Street. The renovations will include replacing the water tanks, air handlers, pipe insulation, modernize the elevators, and other eligible improvements. Prospect Towers is a 208-unit apartment building that is comprised of 96 efficiency units and 112 one-bedroom units. The property includes a seventeen-story building and parking lot. The features include utilities (Electric, Gas, Water and Sewer) in the First Program Year CAPER 45 EXHIBIT: FY 2011/12 CAPER 2012-12-11 rent, 24/7 on-site Desk Clerks, Emergency Call Buttons, Community Library, and an on-site Wellness Center. Prospect Towers was originally funded through HUD’s Section 231 Mortgage Insurance Rental Housing for the Elderly Program, which required the project to remain an affordable housing development. The Section 231 Program was designed to increase the supply of rental housing specifically for the use and occupancy of elderly persons and/or persons with disabilities. Prospect Towers’ residents must be at least 62 years of age or have a disability and the capability to care for the apartment in which they reside. Recently, Prospect Towers repaid the loan to HUD, which no longer obligates Prospect Towers to remain affordable. By approving this 30-year loan with a five-year defined repayment at $6,000 payable for year one and $12,000 payable for years two through five and an amortized 25- year loan on the remaining balance at one percent interest rate per annum, the City will ensure that the housing units remain affordable over the next thirty years. The City will require Prospect Towers to enter into a land use restrictive agreement for a 30-year affordability period on the HOME-assisted units (total of 20 units). As with the original obligation, Prospect Towers has indicated their intent is to keep not only the HOME-assisted units affordable, but all units affordable. The Articles of Incorporation state in Article Third the purposes of the corporation including "to provide for elderly families and elderly persons on a non-profit below cost basis rental housing....". Similar language is found in the Bylaws, Article II, Section 1(a). The City of Clearwater will base affordability upon rents being at or below the Fair Market Rent level, as adjusted annually by HUD and will monitor the loan on a yearly basis. The Prospect Towers Board of Directors unanimously approved the term sheet at their meeting on May 22, 2012. The agency is currently renovating the units with completion expected in the next reporting period. On September 14, 2012, Pinellas County Housing Authority, Inc. (PCHA) submitted an application for funding to renovate Norton Apartments. The requested funds of $304,466 will be used for roofing, flooring, kitchen & bathroom cabinets with counter replacements, and energy efficient fixtures to include hot water heaters, new lighting, and ceiling fans as all of these items have reached or are beyond their useful life. These improvements will benefit the residents whose income is at or below 50% of AMI, both in energy efficiency and improved living standards. Norton Apartments is a HUD-subsidized, project-based Section 8 property located at 1450 South Martin Luther King, Jr. Avenue. The property consists of 48 units serving residents at or below 50% AMI (currently 87% of the residents are extremely low- income at or below 30% AMI). PCHA acquired the property on March 15, 2011. The previous property owner filed bankruptcy and during their ownership, HUD had threatened termination of the Housing Assistance Payments contract on the property due to three failed REAC inspections. PCHA has secured a 20-year Housing Assistance Payments contract to ensure the units remain HUD-subsidized. PCHA has infused over $3.4 million into the acquisition and rehab of Norton Apartments. Further improvements are needed to finish the needed rehab. First Program Year CAPER 46 EXHIBIT: FY 2011/12 CAPER 2012-12-11 No. of Buildings: 6 residential plus 1 community space Unit mix: Bedroom No. of One or Sq Ft Rents* Size Units of Two No. of This Type Story Baths 1 1 556 $725 8 1 2 1 784 $899 15 1 3 2 1,065 $984 16 1 1/2 4 2 1,284 $1,120 6 2 ADA 1 784 $899 3 1 *Rents are subject to HUD-approved annual renewal amounts PCHA has the capacity and resources to see this project to completion. Construction will commence on October 1, 2012 with a scheduled completion date of April 30, 2013. An additional $84,758 will be provided to an eligible Community Housing Development Organization to acquire and/or develop or rehabilitate real property. Other Projects Through funding provided from the FY 2011-12 allocation and prior year funds, the City expended $7,475 for demolition costs, $151,884 for administration, $10,000 for economic development program delivery costs, and $79,182 for rehabilitation program delivery costs. A total of $136,040 in CDBG funding was provided to purchase real property located at 14 South Evergreen, Clearwater for a future economic development project. a. Nature and Reasons for Any Changes to Objectives There were no changes or amendments to program objectives. b. Assessment of Grantee Efforts to Carryout Planned Actions The City maintains a consistent process to certify that agencies/non-profits, or subrecipients who request funding through the City’s Programs are eligible. The process begins in late February when the City publishes a Notice of Funding Availability. The notice identifies the amount and type of funds available and their eligible uses. The agencies complete an application for funding that is available March. The application is due in April. Along with the application, the agencies also provide a copy of their audit and budget. City Housing Staff review each application for eligibility. A Technical Review Committee will evaluate each application through a competitive ranking system. Their results are forward to the City’s Neighborhood and Affordable Housing Advisory Board for approval. First Program Year CAPER 47 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Once approved, the recommendations and a notice of public hearing are published in the local newspaper for public comments in May. After the public comment period, the recommendations and public comments are forwarded to the City Council for approval in July. After approval, the Consolidated Action Plan is forwarded to HUD for approval. After HUD approval, the City prepares and executes the subrecipient agreements in September for an October start date. To ensure program success, the subrecipients are monitored continually. This process is detailed in the monitoring section of this report. 1.All resources (CDBG, CDBG-R, NSP3, HOME, SHIP and Pinellas County Housing Trust Fund) listed in the Consolidated Plan were obtained through federal, state and local funding. 2.The City supported the Homeless Emergency Project in an application for federal funds. 3.In addition to CDBG, HOME and SHIP funds, the City was successful in obtaining private sector leveraging for new housing construction and financing home purchases. c. Actions of Funds Used Outside the National Objectives All CDBG funds were used for activities that meet the national objectives. d. Acquisition, Rehabilitation and Demolition Narrative Neither the City, nor its subrecipients, acquired or rehabilitated buildings that resulted in the displacement of business, individuals or families as a result of projects funded with CDBG or HOME dollars. All properties that were acquired with CDBG funds were voluntarily obtained and mostly vacant parcels. The City’s subrecipients purchased all properties acquired during this reporting period. They include Clearwater Neighborhood Housing Service, Inc. and Habitat for Humanity. When subrecipients become interested in a property they want to acquire, the following steps are required: 1.The subrecipient informs the property owner they are interested in the property. 2.The subrecipient sends out HUD Guide Notice-Disclosures to Sellers with Voluntary, Arm’s Length Purchase Offer. 3.The subrecipient informs the owner they do not have the power of Eminent Domain and the purchase would strictly be a voluntary transaction. 4.If the owner is interested in selling the property, an appraisal is obtained. 5.The subrecipient determines just compensation for the property. 6.The subrecipient offers just compensation to the owner. 7.The owner agrees to the offer, the subrecipient may purchase the property. 8.If the offer is not acceptable to the owner, both parties walk away from the deal. First Program Year CAPER 48 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Temporary relocation benefits were provided to eligible homeowners while their homes were being rehabilitated. Temporary benefits include moving, storage, temporary rents, and utilities. e. Economic Development Narrative For FY 2011-12, the City expended $10,000 for Economic Development Program Delivery. The program delivery costs were associated with managing the economic development loan portfolio. These costs include, but are not limited to, collecting on unpaid loans, sending out late notices, maintaining data in the City’s financial system, and reevaluating loans. Currently, the City has suspended its Economic Development Revolving Loan Program and is reviewing options on its status. At the end of this reporting period, the balance in the City’s Economic Development Revolving Loan Program was $224,202. The City continued a façade improvement program with these funds. f. Limited Clientele Narrative The City and its subrecipients maintain files that document all clients who qualify for the limited clientele designation. g. Loans and Other Receivables The City maintains three revolving loan funds: the Rehabilitation Revolving Loan Fund to rehabilitate owner-occupied housing, the Economic Development Revolving Loan Fund to provide loans to for-profit businesses, and an Infill Housing Revolving Loan Fund to acquire real property to build new owner-occupied housing. During the reporting year, the Rehabilitation Revolving Loan Fund generated $28,722 in program income. The cash balance at the end of the reporting period was $275,309. The Infill Housing Revolving Loan Fund generated $6,593 in program income. The cash balance at the end of the reporting period was $293,869. The Economic Development Revolving Loan Fund generated $5,704 in program income. The cash balance at the end of the reporting period was $224,202. Please see Financial Summary Report for other loans and receivable information. h. Lump Sum Agreements The City does not provide lump sum drawdowns. 12. NEIGHBORHOOD REVITALIZATION STRATEGY AREAS The City of Clearwater’s Neighborhood Revitalization Strategy (NRS) is a component of the City’s Five-Year Consolidated Plan. The strategy was established to promote a flexible design in the City’s allocation of funds provided by HUD and CDBG to promote innovative programs in economically disadvantaged areas of the City. The NRS provides for enhanced regulatory flexibility in the program requirements for providing CDBG funds for economic development, housing and public service activities. First Program Year CAPER 49 EXHIBIT: FY 2011/12 CAPER 2012-12-11 In terms of economic development relief, the strategy allows job creation or retention efforts by businesses not to be hampered by requiring them to track the income of people hired or retained. Economic development activities carried out in the approved neighborhood revitalization areas are also exempt from the aggregate public benefit standards. The relief for public service activities can be viewed in terms of the regulatory requirements that no more than 15% of the total CDBG allocation may be used for public services activities. Under this strategy, all public services offered within the subject neighborhoods and carried out as part of qualified projects by a Community Based Development Organization (CBDO) are exempt from the public service cap of 15%. Therefore, the City will be able to offer a more intensive level of service to stimulate revitalization. This allows the City to address some of the urgent needs of the disadvantaged community by offering job training and other related economic development assistance. In terms of housing relief, the revitalization strategy will allow the City to track scattered site housing units as a single strategy. This will enable the City to provide housing opportunities to not only very-low to low-income families, but to other families who earn between 80-120% of area median income. This will increase the level of affordable housing units and thereby raise the income level of the neighborhood and in the process create a mixed-income community. There are several non-housing factors that cause a blighting influence on communities. They range from vacant boarded structures, to crime, to lack of commercial/retail activities. The City has three (3) Neighborhood Revitalization Strategy Areas - the North Greenwood Community, Lake Belleview Community, and the East Gateway District. All three have their own goals and objectives. The North Greenwood NRSA has identified the following strategies to improve their neighborhood: Eliminate poor conditions of structures  Remediate low-level contaminated sites  Reverse declining property values  Expand business opportunities  Create new investment opportunities in the neighborhood  Increase new job training and placement opportunities  Reduce the unemployment rate  Empower neighborhood residents to eliminate crime  Strengthen coordination of community organizations in the redevelopment  effort The Lake Belleview (f.k.a. South Greenwood) NRSA has the same general strategies of the North Greenwood Area and has identified the following items as needed in their community: Additional educational opportunities for businesses  A new neighborhood training facility  A new childcare facility  First Program Year CAPER 50 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Job training opportunities  A community library  Additional new homes  Better social services  Better collaboration of existing organizations  More crime awareness programs  The City has taken several steps over the years to address the strategies in the NRS. Steps include developing a flexible code enforcement program, purchasing and demolishing dilapidated buildings, working with local law enforcement to reduce crime, funding outreach programs and providing loans to small businesses. The East Gateway District is part of the City’s Community Redevelopment Agency area. a. North Greenwood Listed are the projects the City has completed in the North Greenwood NRSA. North Greenwood Branch Library - (2003)  North Greenwood Recreation/Aquatic Complex - (2003)  North Greenwood Apartments Renovation – (2003)  North Greenwood Corridor Enhancements - (2006)  North Greenwood Reclaimed Water - (2010)  Stevensons Creek Dredging Project – (Ongoing)  North Greenwood Athletic Fields – (2012)  Phillip Jones Park Renovation – (2012)  On April 2, 2012, the City provided $370,000 in CDBG funding to construct a full size lighted multi-purpose athletic field for soccer and football practice in the North Greenwood Community. The field was developed on an existing grass area that was temporarily used for parking at the Jack Russell Stadium. The construction included raising the area with fill dirt, irrigation, grassing, fencing and lighting. The field will be used primarily by the Greenwood Panthers Youth Football program that provides structured recreational activities for the youth in the North Greenwood Community. In 2012, the City approved $822,490 to properly close a landfill site known as Phillip Jones Park and to renovate the site to be used for youth sports, primarily as a football stadium. The project will include the complete renovation of the current football field, fencing, bleachers, press box, parking, goal posts and other miscellaneous site amenities. In this reporting period, the City provided federal funding for several projects in the North Greenwood NRSA. They include: Public Service Willa Carson Community Health Center $24,000 Public Facilities North Greenwood Athletic Fields $370,000 TOTAL $394,000 First Program Year CAPER 51 EXHIBIT: FY 2011/12 CAPER 2012-12-11 The City is continuing their efforts to rehabilitate homes and develop infill housing in the North Greenwood Area. For this reporting period the City provided funding for four (4) rehabilitation loans. b. Lake Belleview (f.k.a. South Greenwood) In 2004, utilizing $2.9 million in general funds, the City built an aquatic/recreation complex, a skateboard park, a fishing pier on Lake Belleview and new baseball fields known as Ross Norton Recreation Complex. In 2008, utilizing $200,000 raised from grants and corporate sponsors, the City partnered with an international organization, Let Them Be Kids, to design and construct a playground at the Ross Norton Recreation Complex. In 2010, utilizing $1.8 million in general funds, the City completed the Lake Belleview Stormwater Improvement project that included major improvements to Lakeview Road from MLK to Missouri Avenues. In 2010, renovations were completed at the Ross Norton Baseball Fields to include bullpens, sod, irrigation and the reworking of the pitching mounds. In 2011, new potable water wells were installed at Ed Wright & Belmont parks. The wells will serve the City’s new reverse osmosis plant currently under construction. In 2011, the in-house traffic calming/ drug interdiction work near Lake Bellevue and Woodlawn Avenue was completed. These are speed humps used to not only calm traffic, but also interrupt the drive-by drug trafficking. In 2012, the City was awarded a matching grant of $200,000 for the design and construction of a 10-foot wide trail for a length of 5,262 linear feet encircling Lake Belleview in Ed Wright and Ross Norton parks. c. East Gateway District In 2002, the 260-acre Clearwater Community Redevelopment Area (CRA) was expanded to encompass 201 acres that included the East Gateway District, a distressed neighborhood that serves as the primary gateway to Clearwater’s central business district and beaches. The expansion was viewed as a strategic approach to revitalize the East Gateway, leverage public-private partnerships for economic development and housing, achieve stability in residential and business areas and increase redevelopment potential. Amendments to the Clearwater Downtown Redevelopment Plan in 2004 established Downtown Character Districts. The East Gateway Character District sets forth the vision and policies to govern new development and redevelopment in the neighborhood. The 176-acre East Gateway neighborhood is characterized by a mixed-land use pattern of residential housing interspersed with pockets of poorly maintained rental properties and outdated strip commercial developments. The commercial sector is burdened with a declining business base, deteriorating infrastructure, a mismatch of First Program Year CAPER 52 EXHIBIT: FY 2011/12 CAPER 2012-12-11 uses and vacant storefronts. The neighborhood struggles with code issues, homelessness, high rental rates and a negative image of crime due to problematic land uses and businesses. Significant decreases in traffic volumes, due to the rerouting of a state road in 2005, have affected business activity in the neighborhood and further emphasized the need for a targeted business development and investment strategy. The East Gateway Task Force, comprised of City staff from several departments, was formed in 2005 in order to identify issues and develop a series of strategies necessary to achieve positive change in the neighborhood. The Task Force conducted a series of focus group meetings and neighborhood events in 2006 to gain an understanding of neighborhood issues, values and preferences. Input received through the public process was used in developing the East Gateway District Five- Year Action Program, which was adopted by the CRA on May 13, 2008. The goals of the Action Program are to: Engage residents, businesses and other neighborhood interests in the creation  and implementation of the action program; Achieve neighborhood stability by addressing the social, economic and  physical issues that plague the area; Establish a unique and positive identity that instills neighborhood pride and  sense of ownership; and Revitalize the neighborhood to attract reinvestment in private property.  The Five-Year Action Program focuses on the following emphasis areas: 1) Safety and Security; 2) Business Environment; 3) Neighborhood Appearance; 4) Economic Growth and Housing; and 5) Hispanic Community integration. Generally, the Action Program will be implemented through: Application of applicable objectives, policies and design guidelines to  redevelopment projects during the site plan review process; Use of the Public Amenities Incentive Pool;  Public strategies (e.g., Code revisions or new program to address a  neighborhood issue); and Capital improvements projects (public and private).  The East Gateway Five-Year Action Program for FY 2007-2012 ended on September 30, 2012. Because of the continuing needs of the District and the momentum that the CRA/City staff and programs have created, and after recommendation from City staff, on October 15, 2012, the CRA Board approved a new East Gateway District Five-Year Action Program to be implemented for FY 2012-2017. The new Action Program includes eight overarching Goals and strategies for implementation purposes: Goal 1: District Development  Goal 2: Create a Vibrant Market  Goal 3: Zone I (West Commercial Anchor)  Goal 4: Zone II (Corridor Development)  Goal 5: Zone III (Open Space)  First Program Year CAPER 53 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Goal 6: Zone IV (Festival Core)  Goal 7: Branding Strategy  Goal 8: Policy/Recommendations  The focus for the first fiscal year will be the review and update of the Downtown Redevelopment Plan; the next phase of the sidewalk construction; the continued community policing presence and outreach to the businesses; completion of an additional façade project; and assistance with the successful launch of the Clearwater Gateway Farmers Market. While the City provides leadership, technical capabilities and funding for Action Program implementation, a partnership with community stakeholders is crucial to achieving neighborhood goals. A Public Outreach and Communications Plan guide the Task Force in engaging the diverse neighborhood interests in the revitalization efforts. In late 2008, two community groups were organized – the East Gateway Stakeholders Advisory Group (SAG) and the East Gateway Business and Neighbors Association (BNA). The City is currently coordinating with the InterCultural Advocacy Institute (ICAI), a local social services agency, to capture input from Hispanic-Latino residents through focus groups discussions. The following accomplishments were noted during this reporting period in the East Gateway NRSA: Acquired 14 S. Evergreen site for future redevelopment.  Participated in the grand opening and dedication ceremony for the Jerry Howe  Transitional Apartments on November 18, 2011. This 13-unit apartment complex offers homeless veterans in recovery a place to learn and practice independent living skills in a supportive and supervised environment. Assisted with the kick-off event and promotion of Country Club Townhomes, a  31-unit workforce-housing project. Completed construction of the Gulf to Bay/Highland Intersection  Improvements project. Coordinated, promoted and held a multicultural celebration (El Grito - Mexican  Independence Day Event) on September 15, 2012 that was attended by approximately 2,500 people. Received approval from the City Council for the Brownfields Revolving  Cleanup fund to loan $325,440 to the CRA for the CarPro project. Facilitated the monthly East Gateway Stakeholder Advisory Group (SAG)  meetings. Presented at the East Gateway Business and Neighbors Association (BNA)  monthly meetings. Partnered with the ICAI and the Pinellas County Health Department for the  creation of the Clearwater Gateway Farmers Market. Created and distributed community survey; o Secured grant funding to assist with start-up costs; o Coordinated with other City Departments; o Submitted a Special Event permit request and received conditional o approval. Completed a comprehensive neighborhood community vision plan.  Reviewed drafts of Vision Plan Proposal and provided feedback to the o consultants. Scheduled Steering Committee meetings. o First Program Year CAPER 54 EXHIBIT: FY 2011/12 CAPER 2012-12-11 Presented the East Gateway Vision Plan to the CRA Board on o January 9, 2012. Supported two police officers assigned to the Downtown Bike Team, which  has led to an increased and more visible police presence and better cooperation between the residents and the City. Continued environmental assessments at the former CarPro site.  Maintained the tracking report for the Five-Year Action Program and  coordinated with the East Gateway Task Force. Identified additional sidewalk needs.  Solicited input from the Engineering Department, the SAG, and the o BNA; Completed installation of the N. Evergreen, N. Evergreen, and Park o Street sidewalk projects; Secured additional funding for future construction of new sidewalks on o parts of Franklin Street, Orangeview Avenue, and N. Lincoln Avenue. Implemented the East Gateway District Façade & Building Lot Improvement  Program Commenced construction of one new project and successfully o completed it; Received four new applications; o Issued conditional loan commitment to one applicant. o Coordinated with Code Compliance for a code sweep that took place the week  of November 7, 2011. Participated in the City’s efforts to address the condition of homelessness in  the community. Coordinated efforts with the Florida Department of Transportation for the  Drew Street Sidewalk Improvement project. Participated in meetings and events sponsored by the Clearwater Regional  Chamber Hispanic Business Council. Conducted business visits and offered assistance for business expansions  and/or improvements. 13. Housing Opportunities for People with AIDS (HOPWA) The City does not receive any HOPWA Funds. 14. MONITORING PLAN All subrecipients will receive federal and local regulations relating to their specific activity, along with an explanation as to how the regulations apply to their particular project. Specific Performance Agreements will be executed with each subrecipient giving measurable objectives for the eligible activity to be carried out. Each project is monitored on an ongoing basis. Documentation submitted with reimbursement requests are reviewed for compliance with applicable regulations and measurable objectives prior to issuing funds. On-site monitoring of selected subrecipients are scheduled and completed annually by the Housing Manager. A checklist is completed and reviewed to insure all aspects of the activities are carried out in accordance with applicable regulations. In addition to the above documentation, any subrecipient needing and/or requesting additional training on how to meet grantee and federal requirements will receive First Program Year CAPER 55 EXHIBIT: FY 2011/12 CAPER 2012-12-11 technical assistance deemed most appropriate to the circumstances by the Housing Manager. Additional technical assistance, if needed or requested, will be given at the time of the annual monitoring. The City uses a three step approach to monitor subrecipients. The first step begins during the application process. Subrecipients provide the City with their goals, objectives, budget and an Implementation Schedule. If funded, the goals, objectives, budget and Implementation Schedule are included in the Subrecipient Agreement with the City. The second step is to provide the subrecipient with the format needed for the Monthly Activity Report. The reports are completed and returned to the City monthly. The Housing Division analyzes the reports and if the subrecipient is not meeting its goals, technical assistance is provided. Subrecipients who provide housing assistance are monitored on a loan-by-loan basis and approved by the City prior to any loan closing to ensure compliance. Lastly, the City provides direct monitoring of all subrecipients annually with new agencies receiving two (2) monitoring visits. The first visit takes place in July and provides technical assistance to ensure the agency understands the compliance process. The second visit takes place in September and is a detailed-monitoring visit that utilizes an approved checklist. During this reporting period, the City provided detailed monitoring of all subrecipients. The City is continues to offer technical assistance to all subrecipients throughout the year. First Program Year CAPER 56