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| Information |
| TITLE: |
| Consideration and Adoption of Resolution No. 2014-12 : A resolution of the Mayor and Council of the City of Flagstaff, Arizona approving the City of Flagstaff Housing Authority's Annual Plan and authorizing its submission to the United States Department of Housing and Urban Development (HUD) |
| RECOMMENDED ACTION: |
1) Read Resolution No. 2014-12 by title only
2) City Clerk reads Resolution No. 2014-12 by title only (if approved above)
3) Adopt Resolution No. 2014-12
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| Policy Decision or Reason for Action: |
| Subsidiary Points: Adoption of Resolution No. 2014-12 will provide approval of the City of Flagstaff Housing Authority's ("CFHA") Annual Plan and authorize submission of the Plan to the United States Department of Housing and Urban Development ("HUD") for the fiscal year beginning July 1, 2014. |
| Financial Impact: |
| Each year HUD provides Capital Funds to be used for operations, management improvements, administration, physical improvements to the public housing units and grounds, and purchase of maintenance equipment. |
| Connection to Council Goal: |
Effective governance
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| Has There Been Previous Council Decision on This: |
Yes. Council approval is required each year prior to submission of the Annual Plan to HUD. Council approved the 2013-2014 Annual Plan on April 2, 2013.
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| Options and Alternatives: |
1) Approve the CFHA Annual Plan
2) Amend and approve the CFHA Annual Plan
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| Background/History: |
The Quality Housing and Work Responsibility Act of 1998 (QHWRA) requires the submission of a 5-Year Plan to HUD. Subsequent to the submission of the 5-Year Plan, HUD requires the submission of an Annual Plan containing any significant changes to the Goals and Objectives; progress reports of outstanding Capital fund Program Grants; Capital Fund Grant for the fiscal year of the Annual Plan; and amendments to the Five-Year Capital Fund Action Plan.
The 5-Year Plan was submitted in 2010 covering the fiscal years 2010 through 2014. The Annual Plan before Council is the fifth year of the 5-Year Plan for the fiscal year beginning July 1, 2014.
Each year HUD provides Capital funds to be used for operations; management improvements; administration; physical improvements to public housing units and grounds; and the purchase of maintenance equipment. CFHA has two years to commit and four years to spend the funds. Because of this, there could be two or three Capital Fund Programs running at the same time. It is also required that a 5-Year Capital Fund Action Plan accompany the submission of the 5-Year Plan that is used to determine the use of Capital Funds for each of the subsequent Annual Plan Years. The Siler Resident Management Corporation, an Arizona non-profit whose membership is all of the public housing residents, provides input on the use of the Capital Funds and recommends additional needs.
The Annual Plan needs to be approved by the City Council and submitted to HUD by no later than April 17, 2014. |
| Key Considerations: |
Section 10.0 of the 5-Year Plan, Strategy for Addressing Housing Needs, sets forth eight goals and objectives which include working with the City's Land Trust to provide additional housing (Goal Four); working with the Guidance Center to plan additional housing for the homeless seriously mentally ill (Goal Seven); and continuing to partner with the Guidance Center to apply for additional Seriously Mentally Ill Section 8 special purpose vouchers (Goal Eight).
The FY2014 Annual Plan contains:
New Goal Nine: Merge City of Flagstaff Housing Authority and City Housing Section.
Objectives:
1. Create a project plan by June 15, 2014
2. Execute project plan by June 30, 2015
3. Financial/Budget benefits
4. Organizational efficiencies
5. Succession planning clarity
CFHA has one open Capital Fund Program from 2013. $348,130 was awarded by HUD on September 9, 2013. The funds must be obligated by September 9, 2015 and expended by September 9, 2017. $165,439 has been expended with the balance of $182,691 expected to be expended during FY2014.
Fiscal Year 2014 Capital Funds have not yet been determined by HUD but is is estimated to be approximately $360,000.
6. New management structure and salary savings
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| Expanded Financial Considerations: |
| There are no General Fund monies involved in the Plan. The use of Capital Funds was explained in Key Considerations, and in Community Benefits and Considerations. In addition, a portion of the Capital Funds are being used for energy conservation and green retrofit items that will reduce energy costs. |
| Community Benefits and Considerations: |
The QHWRA was adopted by Congress to improve the living environment of Public Housing Residents. The Capital Fund Program is used to improve the Public Housing Units for comfort, safety, and energy efficiency. The proposed use of FY2014 Capital Funds is as follows:
Physical Improvements:
Upgrade deteriorating water lines at Brannen Homes $108,000
Roof replacement of 19 buildings at Brannen Homes $114,000
Management Improvements:
Operation - 20% of grant $ 72,000
Management Improvements $ 30,000
Administration - 10% of grant $ 36,000 |
| Community Involvement: |
Inform
The Public Housing Residents are kept informed of unit improvements through the Siler Resident Management Corporation (SRMC); monthly housing authority newsletters; and resident meetings.
The QHWRA requires resident participation through a Resident Advisory Board (RAB). Since the SRMC represents all of the Public Housing Residents, they are considered the RAB and provide necessary input. |
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