notice of public meeting - phoenix, arizona · 1 notice of public meeting phoenix city council...

1

NOTICE OF PUBLIC MEETING PHOENIX CITY COUNCIL

NEIGHBORHOODS, HOUSING AND DEVELOPMENT SUBCOMMITTEE

Pursuant to A.R.S. Section 38-431.02, notice is hereby given to the members of the PHOENIX CITY COUNCIL NEIGHBORHOODS, HOUSING AND DEVELOPMENT SUBCOMMITTEE and to the general public, that the PHOENIX CITY COUNCIL NEIGHBORHOODS, HOUSING AND DEVELOPMENT SUBCOMMITTEE will hold a meeting open to the public on Tuesday, June 18, 2013 at 10:00 a.m. located at Phoenix City Hall, 1st Floor Atrium, Assembly Rooms A, B, & C, 200 West Washington Street, Phoenix, Arizona. One or more Subcommittee members may participate via teleconference. The agenda for the meeting is as follows (items may be discussed in a different sequence than posted): 1. Call to Order Daniel Valenzuela,

Chair 2. Call to the Public: Consideration, discussion and comments

from the public; those wishing to address the Subcommittee need not request permission in advance. Action taken as a result of public comment will be limited to directing staff to study the matter or rescheduling the matter for further consideration and decision at a later date.

Daniel Valenzuela, Chair

3. Review and Approval of the May 21, 2013 Neighborhoods, Housing and Development Subcommittee Meeting Minutes

Page 5

Items 4 - 8 are for consent action. No presentations are planned; however staff will be available to answer questions. 4. NEIGHBORHOOD STABILIZATION PROGRAM 3

SUBSTANTIAL AMENDMENT This report requests Subcommittee approval of the Substantial Amendment to the Neighborhood Stabilization Program 3 (NSP3) for adjustments to program fund allocations and unit goals, and to amend the Housing and Urban Development (HUD) 2010-2011 Action Plan to reflect the proposed changes. This item is for consent action.

Chris Hallett, Neighborhood Services 3

5. AWARD OF HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) FUNDED HOUSING SPECIALIST POSITION This report requests the Subcommittee recommend City Council approval to enter into a one-year contract with Area Agency on Aging, Region One with two one-year options to extend in the amount of $62,800 per year. This $62,800 award will allow for one full-time employee to be hired as the HOPWA Housing Coordinator with Ombudsmen Services. This item is for consent action.

Karl Matzinger, Housing Department Page 15

2

6. ELIGIBILITY AND LEASING SERVICES FOR SPECIAL POPULATIONS This report requests the Subcommittee recommend to City Council the allocation of $186,000 in Section 8 Administrative Funds and enter into a contract, with HOM Inc., for the purpose of administering eligibility and leasing services for special populations. The contract term will be two years with three (3) one-year options to extend. This item is for consent action.


7. LOAN OF HOME AND CDBG PROGRAM FUNDS -- WESTERN LODGE APARTMENTS AND TRAVEL INN APARTMENTS This report requests Subcommittee recommend City Council approval to loan and disburse up to $1,100,000 of HOME Investment Partnership (HOME) Funds and up to $300,000 of Community Development Block Grant (CDBG) Funds for the redevelopment of Western Lodge Apartments located at, 3725 E. Van Buren, and approval to loan and disburse up to $2,100,000 of HOME Investment Partnership Funds and up to $400,000 of Community Development Block Grant Funds for the redevelopment of the Travel Inn Apartments, 3541 E. Van Buren, to Chicanos Por La Causa, Inc. This item is for consent action.


8. FUNDING FOR SANTA FE SPRINGS APARTMENTS OPERATING RESERVE This report requests Subcommittee recommend City Council approve the use of Neighborhood Stabilization Program (“NSP”) and/or Housing Department Affordable Housing Program funds up to $500,000. Funds will cover operating expenses through rehabilitation, lease-up, and to create an operating reserve at the Santa Fe Springs Apartments, located at 1717-1725 West Glendale Avenue. This item is for consent action.

Karl Matzinger, Housing Department 1

Item 9 is for information, discussion and possible action. 9. AUTHORIZATION TO DISPOSE OF ONE SCATTERED

SITE HOME THROUGH THE SECTION 32 PROGRAM AND AMEND THE SECTION 32 PLAN TO DELETE AND ADD A NEW HOME TO THE ORIGINAL PLAN This report requests the Subcommittee recommend City Council approval to dispose of one home in the Scattered Sites inventory, and submit to the U. S. Department of Housing and Urban Development (HUD) an amendment to the City of Phoenix Section 32 Scattered Sites Homeownership Plan (the Plan) to remove one Scattered Site home and add a different Scattered Site home to the current approved disposition list. This item is for information, discussion and possible action.


3

Item 10 is for information and discussion. 10. CITY OF PHOENIX HOMELESS INITIATIVES UPDATE

The purpose of this report is to provide an overview of recent accomplishments and activities helping to alleviate homelessness in the city of Phoenix. The City has been at the forefront of implementing innovative programs and realigning services to effectively address homelessness. This item is for information and discussion.

Deanna Jonovich, Human Services Page 25

11. Future Agenda Items: This item is scheduled to give Subcommittee members an opportunity to mention possible topics for future Subcommittee agendas or to request City staff to follow-up on Subcommittee issues.


12. Call to the Public: Consideration, discussion and comments from the public; those wishing to address the Subcommittee need not request permission in advance. Action taken as a result of public comment will be limited to directing staff to study the matter or rescheduling the matter for further consideration and decision at a later date.


13. Adjournment Daniel Valenzuela, Chair

For further information, please call Brandie Barrett, Management Assistant, City Manager’s Office, at 602-262-7684 or Wathsna Sayasane at 602-262-4449. Persons paid to lobby on behalf of persons or organizations other than themselves shall register with the City Clerk prior to lobbying or within five business days thereafter, and must register annually to continue lobbying. If you have any questions about registration or whether or not you must register, please contact the City Clerk’s Office at 602-262-6811. For reasonable accommodations, call Brandie Barrett at Voice/602-262-7684 or TTY/602-534-5500, or Wathsna Sayasane at 602-262-4449 as early as possible to coordinate needed arrangements. Subcommittee Members Councilman Michael Johnson Councilman Jim Waring Councilman Tom Simplot Councilman Daniel Valenzuela, Chair

June 12, 2013

4

THIS PAGE IS LEFT BLANK INTENTIONALLY

5

Neighborhoods, Housing and Development Subcommittee, June 18, 2013, Item 3

Phoenix City Council Neighborhoods, Housing and Development Subcommittee

Summary Minutes Wednesday, May 21, 2013

1st Floor Atrium Assembly Rooms A, B, and C 200 West Washington Street Phoenix, Arizona Subcommittee Members Present Subcommittee Members Absent Councilman Daniel Valenzuela, Chair None Councilman Tom Simplot Councilman Jim Waring Councilman Michael Johnson Staff Present Staff Present Staff Present Public Present

Angela Duncan Aaron J. Carreon-Ainsa Alma Lara Aubrey Anaya Brandie Barrett Chris Hallett Deanna Jonovich Derek Horn Don Taylor Elizabeth Morales Eric Jeffery Erynn Crowley

Esteban J. Gomez Ginger Spencer Greg Gonzales Janis Haug Jim Endrizzi Josh Bednarek Kent McCarthy Kevin Jin Kweilin Waller Libby Bissa Lina Cruz Maria Bears

Mindy Davis Neal Young Nichole Ayoola Penny Parrella Rick McClellan Rick Naimark Shawn Pierce Toni Maccarone Wathsna Sayasane Wendy Villa

Amy Bratt David Hepburn Dianne Barker Jake Hinman Kevin Abadaloche Kitty Marquez Krista Roy Natalia Winberry Neal Haddad Paul Barnes Sandra Ferniza Sheila Harrris

1. Call To Order

Councilman Valenzuela called the meeting to order at 10:07 a.m. with Councilmen Johnson and Simplot present. Councilman Waring entered the meeting at 10:09 a.m.

2. Call to the Public

Neal Haddad, Citizens for Phoenix Director, announced a barbeque benefit for the families of Firefighter Bradley Harper and Police Officer Daryl Raetz. He asked for clarification regarding regulations for campaign signs and whether there were any enforcement capabilities. He described past discussions with City departments regarding the topic and the restrictions with State law. Councilman Waring entered the meeting at 10:09 a.m.

3. Review and Approval of the April 16, 2013 Neighborhoods, Housing and

Development Subcommittee Meeting Minutes Councilman Simplot motioned to approve the April 16, 2013 minutes. Councilman Johnson seconded the motion, which passed 4-0.

6

4. Award Contract for Housing Opportunities for Persons with Aids (HOPWA) Tenant Based Rental Assistance Program

5. Approval to Apply for and Accept Up to 150 Additional HUD-VASH Vouchers

6. Authority to Allocate Funds and Enter Into Contracts for Housing Counseling

and Downpayment Assistance 7. CDBG and Nonfederal Housing Counseling RFP Recommendations 8. Arizona Forward 2013-14 Annual Membership Dues

Items 4 through 8 were heard together. Councilman Simplot motioned to approve items 4 through 8. Councilman Johnson seconded the motion, which passed 4-0.

9. Problem Multifamily Rental Properties Code Compliance Enforcement

Process Neal Young, Senior Executive Assistant to the City Manager, introduced the item and Gary Verburg, City Attorney, Chris Hallett, Neighborhood Services Department (NSD) Director, Aaron Carreon Ainsa, City Prosecutor, Tim Boling, NSD Deputy Director, Kent McCarthy, Deputy City Prosecutor, and Esteban Gomez, Assistant City Attorney IV. Mr. Boling described challenges, statistics and the history with problem rental properties, pointing out that ten percent of NSD cases are considered problem properties and the most severe cases require civil or criminal prosecution. He stated code compliance cases can involve retaliation motives between tenants, landlords or neighbors, which requires NSD inspectors to work through the issues between the conflicting parties. Mr. Boling stated the more complicated cases require a team comprised of representatives from multiple departments to strategize and act together to address the issue. He described a difficult case pertaining to the Woodbridge Apartments. He notes that significant staff time has been invested, and multiple citations and criminal charges are related to the case. He summarized the timeline of events of the Woodbridge case. Mr. Verburg explained the City Prosecutor’s Office does not get involved in cases until requested by a City department. He clarified the differences between a civil and criminal offense. He provided a status update on the Woodbridge case, noting it was continued from its May hearing due to the number of citations. He discussed the steps related to processing a case in the Prosecutor’s Office and summarized the Prosecutor’s Office involvement with the Woodbridge case. Mr. Hallett presented suggestions for an improved approach in handling multifamily problem cases. He noted Councilman Simplot’s suggestions from his participation in a previous Rental Issues Working Group were incorporated into the proposal. He outlined several proposals for improvement, which included the reestablishment of the slum property designation and appeals panel, updating Ordinances and Codes to better define violations, identifying additional emergency abatement funds and staff resources, classifying all slum properties criminal cases and performing annual inspections.

7

Councilman Johnson asked for details on the timing of the Woodbridge case. Mr. Hallett described the inspection date and the team’s response to the findings. Councilman Johnson expressed concern with the length of time to process a case and requested staff to review if there was the ability to pursue criminal prosecution sooner. Mr. Hallett replied part of the recommended proposal would be to reinstitute the slum property designation with defined criteria, which would permit staff to implement a more aggressive approach to enforcement. Councilman Simplot inquired as to what possible resources were lacking that were contributing to the inability to prosecute problem cases faster. He asked about when the citizens appeal panel went away. Mr. Boling responded the appeal panel had not been assembled for approximately seven years. He discussed the panel’s origination from Maricopa County and their purpose to hear appeals from property owners on the City’s designation of their property as a slum property. Councilman Simplot suggested having member appointments from the City Council. Mr. Verburg concurred with the suggestion and discussed the impact budget cuts had made on staffing, which he noted also resulted in a shift of designating cases as civil in order for NSD staff to represent themselves. He explained the Law Department response time to complex cases was largely dependent on the number of problem cases they received from other departments. He stressed the significant staff time required to process the problem cases, pointing out the Woodbridge case that required approximately a year’s worth of work hours for one full-time prosecutor. He stated when the Law Department received these types of complex cases, it required them to reprioritize and stop working on other important items, such as reviewing contractor licensing cases. Councilman Simplot stated the property owner of Woodbridge has several other sites in Phoenix and expressed concern with the likelihood that more cases would be coming forward. He requested staff provide follow-up before the afternoon Policy meeting on how much more staff the Prosecutor’s Office would need to add to help address the issue. Councilman Waring asked for clarification on whether the percentage of cases that complied included multifamily properties. Mr. Hallett responded that the estimated 94 percent compliance was across the board for single and multifamily properties. Councilman Waring inquired as to what level of staff time is required for the different types of cases. Mr. Boling summarized the types of cases, noting that six percent are civil and one and one-half percent are criminal. He noted the criminal cases typically required the most significant amount of staff time, which was demonstrated by the Woodbridge case. Councilman Waring asked if there was a better utilization of resources in order to address the issue. Mr. Boling responded if there were more resources, staff would be able to be more aggressive with some of the civil cases such as making them criminal. He added the Woodbridge case resulted in 800 hours in staff time for inspectors. On average an inspector can conduct four regular inspections per hour, therefore the 800 hours spent on Woodbridge meant 3,200 regular neighborhood inspections were not completed.

8

Councilman Simplot inquired whether the City was able to recover costs through fines. Mr. Carreon-Ainsa responded the slum property designation process would allow staff to recover the cost of inspections performed after the designation is established. Natalia Winberry, representative from the International Rescue Committee (IRC), expressed support for the proposed amendments. She explained the IRC provides services and support to several refugees living in the Woodbridge complex. She requested more assistance in helping the IRC serve their clients, noting the need to educate refugees on their rights in the United States. Krista Ray, representative from the IRC, stated she workes closely with NSD to relocate displaced refugees. She described challenges with trying to legally represent clients who do not understand City processes. She requested the City consider allowing the IRC have the ability to file complaints on IRC clients’ behalf. Mr. Hallett explained NSD would be working on an educational campaign with the Arizona Multi-Family Association and would like to conduct better outreach through collaborations with non-profit organizations. He clarified there were legal challenges when the actual tenant or resident does not file the original complaint. He added that NSD works with advocacy groups to try to educate residents on their rights and give the landlord an opportunity to resolve the situation. He emphasized that efforts to educate all parties are made before and after the case. Councilman Johnson asked whether family members of the tenants could report complaints on their behalf. Mr. Boling responded in order to conduct an inspection inside of a property, staff has to be invited into the property by the tenant. He clarified NSD could approach a tenant and request to be invited into the residence if NSD were aware of an issue. He added any individual can make a complaint on the exterior of a property but reiterated that any interior inspection requests require the resident to invite staff in. Councilman Waring asked for clarification on situations involving elderly family members. Mr. Boling responded NSD would always be willing to conduct an inspection but emphasized staff had to respect the rights of individuals if they do not want the City to enter their residence. He stated there are circumstances where departments, such as Human Services, has to get involved and noted the Police Department has the ability to conduct safety checks if they receive a call. Councilman Johnson described the severity of the issue and emphasized the vulnerability of the residents involved in these challenging situations. He discussed the need to ensure refugees coming from other countries with worse living conditions understand that there are better standards in the United States. He expressed concern with budget cuts and the impact they have had on the City’s ability to respond to these incidents. Councilman Valenzuela stated the issue needed to be made a top priority. He stressed the safety and health issues of residents living in the Woodbridge Apartment conditions. He explained the message needed to be sent to all investors that slum lords are not welcome in Phoenix. He expressed support for Councilman

9

Simplot’s request for further clarification on staff resources related to the upcoming budget discussion. Councilman Simplot asked staff to proceed with the recommendations that were outlined in their presentation.

10. Authorization of Funding for Park Lee Rehabilitation

Mr. Young introduced the item and Karl Matzinger, Housing Department Interim Director, and Angela Duncan, Housing Department Deputy Director. Mr. Matzinger outlined the timeline of the Park Lee rehabilitation project. He described dates of the acquisition and construction. Ms. Duncan discussed the background and location of Park Lee. She provided details related to the number of buildings, units and rehabilitation areas. She described improvements made to the interior of the units. She explained the initial budget for the rehabilitation covered all the exterior renovations, such as new landscaping, lighting and park amenities. Mr. Matzinger requested the Subcommittee recommend approval for the expenditure of another $2.4 million to complete the remaining 117 Park Lee units. He clarified the funding would come from Neighborhood Stabilization Program funds and the Housing Department Affordable Housing fund. He described the location of the remaining units to be renovated and the project timeline. He emphasized the success of events conducted on the property and marketing conducted by the property manager. Councilman Simplot motioned for approval. Councilman Johnson seconded the motion, which passed 4:0.

11. PlanPHX Overview and Update

Mr. Young introduced the item and Rick Naimark, Deputy City Manager, Derek Horn, Planning and Development Acting Director, Alan Stephenson, Planning and Development Acting Deputy Director, and Joshua Bednarek, Planner III. Mr. Naimark thanked the Subcommittee for their participation in PlanPHX and pointed out the extensive outreach conducted. Mr. Horn provided a brief history on PlanPHX. He stated the presentation would describe suggested focus areas and guiding principles that staff compiled from all the public input received to date. He requested the Subcommittee provide direction and input on the proposal. Mr. Bednarek presented an overview of the work conducted and public input received. He pointed out the launch of the PlanPHX website, the number of registered users, number of meetings and ideas submitted for consideration. He explained individuals were asked to answer two main questions: 1) What do you love about Phoenix? and 2) What’s your big idea for our future? He summarized the feedback received and the most frequent responses.

10

Mr. Bednarek presented staff’s proposed plan moving forward with the project. He discussed the recommendation of a connected oasis brand. He explained the idea of connectivity was a prominent theme from the responses. He stated the connected oasis would be aimed at enhancing community health, prosperity, the environment, and the city’s identity. He discussed the proposed five Guiding Principles for the General Plan update: 1) Connected People and Places, 2) Build the Sustainable Desert City, 3) Create an Even More Vibrant Downtown, 4) Celebrate Diverse Communities, and 5) Promote Innovation and Entrepreneurship. He described the remainder of the project schedule, noting a draft report would be provided in the fall, the first updated version of the General Plan would be produced in the Spring of 2014, and the completed General Plan presented to the Mayor and City Council for approval by February of 2015. He noted the deadline for City Council approval is July of 2015. Dianne Barker expressed support for the item. She encouraged the expansion of PlanPHX into all departments. She discussed opportunities for the Community and Economic Development Department to start implementing concepts from the project, and the availability of design equipment from Arizona State University to assist in planning efforts. Paul Barnes shared his experience with trying to assist residents with their neighborhood issues related to encroaching businesses. He expressed concern with PlanPHX’s lack of attention to neighborhood preservation and protection. Councilman Johnson expressed support for preserving established neighborhoods and businesses and including it as a focus in some way in the General Plan. Councilman Simplot concurred and stated there should be a balance between preserving neighborhoods and encouraging economic development. Mr. Stephenson responded the very first point under the Celebrate Diverse Communities principle was neighborhoods. He added the committee did not label it neighborhood preservation but they did come up with a list of neighborhood rights and expectations. He invited Mr. Barnes to future committee meetings to provide input as they continue working out details. Mr. Naimark added it was a matter of how the information was organized but the idea of protecting neighborhoods was included in the proposal. Councilman Valenzuela agreed with the need to find a balance and requested further discussion be taken into consideration on the topic. Councilman Simplot motioned for approval with the incorporation of the Subcommittee’s comments and discussion. Councilman Johnson seconded the motion, which passed 4:0.

12. Childhelp Facility Relocation Design Contract Mr. Young introduced the item and Ed Zuercher, Assistant City Manager, Ginger Spencer, Special Assistant to the City Manager, and Deanna Jonovich, Human Services Department Director. Mr. Zuercher provided a brief history on the Childhelp facility and the City’s involvement.

11

Ms. Jonovich summarized the background of the facility, noting that Childhelp moved into the space in 1988 with the City as a sublease. Due to Childhelp’s financial issues, the City Council authorized staff to take over as lessee of the facility in October of 2012. She explained several building issues needing to be addressed were identified and the available options would be presented for the Subcommittee to consider. She added there were eight partners involved with the relocation of the Childhelp facility, which included the Police Department, Phoenix Children’s Hospital, Maricopa County Attorney’s Office, Office of Child Welfare and Child Protective Services. Ms. Spencer explained the Childhelp facility would be relocated to the City-owned Family Advocacy Center (FAC) at 2120 North Central, noting the addition would allow for a one-stop-shop for child and adult victims of violence at the FAC. She discussed logistics related to the move and transition of services. She explained funds were budgeted in the Human Service Capital Improvement Program funds. She provided an overview of the design contract and project timeframe. Councilman Simplot inquired about the financial health and current relationship the City has with Childhelp. Mr. Zuercher responded an outside consultant was hired by Childhelp to assist with figuring out how to resolve their financial problems and develop a plan to continue their operations. He stated it was determined that they did not have the financial capacity to continue operating as they previously had been, which was to pay for the costs of the Center. Councilman Simplot asked if the City had the authority to audit Childhelp’s finances. Ms. Spencer responded the City conducts regular meetings with Childhelp and they do not provide the City with all the details but staff would continue discussions regarding the matter with Childhelp. Ms. Jonovich added the City has a contract with Childhelp for some services, which they are required to report on to allow staff to monitor their compliance with the contract. Councilman Simplot requested follow-up on details of the contract, specifically related to ensuring that Childhelp’s overhead costs were being monitored adequately.

13. Future Agenda Items

None 14. Call to the Public

Sheila Harris, representative from Arizona Housing Alliance, stated the organization produces a report on housing conditions in Phoenix and welcomed the Subcommittee to review it. She noted they would be working with City staff to increase the availability of low income housing in Phoenix. She added the organization offers their support to the City.

15. Adjournment

The meeting adjourned at 11:43 a.m. Respectfully submitted, Wathsna Sayasane Management Intern

12


13


CITY COUNCIL REPORT

TO: Lisa Takata Deputy City Manager

FROM: Chris Hallett Neighborhood Services Director

SUBJECT: NEIGHBORHOOD STABILIZATION PROGRAM 3 SUBSTANTIAL AMENDMENT

This report requests Neighborhoods, Housing and Development Subcommittee approval of the Substantial Amendment to the Neighborhood Stabilization Program 3 (NSP3) for adjustments to program fund allocations and unit goals, and to amend the Housing and Urban Development (HUD) 2010-2011 Action Plan to reflect the proposed changes. THE ISSUE On March 9, 2011, the City of Phoenix received $16,053,525 in NSP3 funds to address abandoned or foreclosed properties through acquisition, rehabilitation, demolition, redevelopment and financing mechanisms in targeted areas within the city limits. The Neighborhood Services Department, which has responsibility for management of the grant funds, prepared a Substantial Amendment for City Council approval and for acceptance by the US Department of Housing and Urban Development (HUD) to define how the funds would be spent. At this time, the Neighborhood Services and Housing departments have identified reallocation areas in the NSP3 implementation budget in order to best serve the community and meet the March 9, 2014, expenditure deadline. Proposed NSP3 Reallocation of Funds Arrest blighted conditions in neighborhoods: Staff recommends a 20 percent increase in the allocated funds to help reconnect these neighborhoods with the economy, housing market, and social networks of the community. This includes:

• $7,008,103 for acquisition/rehabilitation and resale of 31 foreclosed homes • $172,847 for the acquisition and demolition of four blighted, vacant and

foreclosed properties for infill housing development Assist qualified homebuyer: This program, in its original format, has not been successful due to investor activity in the market. Staff recommends a decrease in this program to fund one project and move the remainder of the funds to other acquisition and rehabilitation activities:

14

• $20,817 for homeownership assistance in the form of a subordinate loan to assist one homebuyer of a newly built home and replace an NSP-acquired blighted property that has been demolished.

Address multi-family foreclosures: Acquisition and rehabilitation of foreclosed multi-family properties. Staff recommends increasing the funds allocated to serving households at or below 50 percent of median income. The increased allocation of $7,224,086 will assist:

• 174 households at or below 50 percent of median income • 56 households at or below 120 percent of median income

Land banking: Staff recommends increasing the funds for the holding of four properties that have been demolished for the purpose of future infill housing development by 52 percent, to $22,320. Administration: Staff recommends keeping this at the allowable 10 percent of the allocation, or $1,605,353, to be used for management and administration of the program and to assure all goals are met in compliance with all applicable requirements. OTHER INFORMATION HUD requires that a Substantial Amendment be submitted for approval whenever funds or units are moved from one “Eligible Use” to another. The city’s Citizen Participation Plan for HUD programs requires that a Substantial Amendment be posted for public comment prior to submittal to HUD for approval. A 15-day public comment period was advertised from May 13 through May 28, 2013. No comments were received. RECOMMENDATION This report requests Neighborhoods, Housing and Development Subcommittee approval of the Substantial Amendment to the Neighborhood Stabilization Program 3 (NSP3) for adjustments to program fund allocations and unit goals, and to amend the HUD 2010-2011 Action Plan to reflect the proposed changes.

15


CITY COUNCIL REPORT

TO: Neal Young Senior Executive Assistant to the City Manager

FROM: Karl Matzinger Interim Housing Director

SUBJECT: AWARD OF HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) FUNDED HOUSING SPECIALIST POSITION

This report requests the Neighborhoods, Housing and Development Subcommittee recommend City Council approval to enter into a one-year contract with Area Agency on Aging, Region One with two one-year options to extend in the amount of $62,800 per year. This $62,800 award will allow for one full-time employee to be hired as the HOPWA Housing Coordinator with Ombudsmen Services. The HOPWA Housing Coordinator will establish and maintain a collaborative and referral relationship with property managers of units with HOPWA residents; provide housing support services to all City of Phoenix Eligible Metropolitan Statistical Area (EMSA) HOPWA clients; and provide Ombudsmen services to HOPWA clients. THE ISSUE On January 10, 2012, the Phoenix City Council approved and adopted an updated HIV/AIDS Housing Plan for the Eligible Metropolitan Area (EMA), which emphasized four key program directives:

• Develop and de-concentrate housing units for Persons Living with HIV/AIDS (PLWHAs);

• Provide supportive services that link PLWHAs with critical health and housing services to improve housing stability;

• Enhance connections to existing systems and programs that address homelessness to ensure the needs of PLWHAs are addressed in the ever changing context of federal regulations; and

• Continue the City’s participation as the HOPWA Fund Grant Administrator to support community efforts to address the housing needs of homeless PLWHAs.

On May 6, 2013 the Housing Department issued a Request for Proposals (RFP) for this position to which Area Agency on Aging, Region One and Southwest Behavioral Health Services responded. After evaluation of the proposals submitted by the respondents, it was determined that Area Agency on Aging, Region One was the successful respondent to receive HOPWA funds for the Housing Coordinator position. OTHER INFORMATION Proposals submitted in response to the Housing Department’s RFP for the HOPWA-funded Housing Coordinator Position were subject to four evaluation criteria: 1) Agency Experience and Qualifications; 2) Method of Approach; 3) Staff Qualifications; and 4) Reasonableness of fees and expenses.

16

RECOMMENDATION This report requests that the Neighborhoods, Housing and Development Subcommittee recommend City Council approval to enter into a one-year contract with Area Agency on Aging, Region One with two one-year options to extend in the amount of $62,800. This $62,800 award will allow for one full-time employee to be hired as the HOPWA Housing Coordinator with Ombudsmen Services. The HOPWA Housing Coordinator will establish and maintain a collaborative and referral relationship with property managers of units with HOPWA residents; provide housing support services to all City of Phoenix Eligible Metropolitan Statistical Area (EMSA) HOPWA clients; and provide Ombudsmen services to HOPWA clients.

17


CITY COUNCIL REPORT TO: Neal Young

Senior Executive Assistant to the City Manager


SUBJECT: ELIGIBILITY AND LEASING SERVICES FOR SPECIAL POPULATIONS

This report requests the Neighborhoods, Housing and Development Subcommittee recommend to City Council the allocation of $186,000 in Section 8 Administrative Funds and enter into a contract, with HOM Inc., for the purpose of administering eligibility and leasing services for special populations. The contract term will be two years with three (3) one-year options to extend. THE ISSUE Special populations are defined as persons with complex circumstances that make the process of obtaining housing more challenging, including, but not limited to: chronically homeless individuals and families, homeless veterans, and persons with HIV/AIDS. These housing services require two important components: 1) staff that is trained and experienced in serving special populations and; 2) housing services delivered in an expedited and streamlined manner to ensure individuals/families are appropriately and immediately housed. As a result, outsourcing these services will enhance the service delivery for this population that needs greater amount of assistance. The Request for Proposal (RFP) process was opened on April 15, 2013 and closed on May 14, 2013 with 24 downloads of the RFP package . A pre-proposal conference was held with three prospective proposers attending. One proposal was received and evaluated by an evaluation panel. The successful proposer, HOM, Inc. has extensive experience serving homeless and other special populations. The Housing Department has administered similar contracts with HOM, Inc. for the HUD-VASH program which has housed close to 250 homeless veterans. HOUSING IMPACT The Housing Department provides and promotes diversified housing opportunities and enriches the quality of life for low-to moderate-income families, seniors, and persons with disabilities by developing, managing, and subsidizing affordable housing. If approval is received it will further the Housing Department’s goal of enriching the quality of life for those most vulnerable, homeless individuals and families within the City of Phoenix. RECOMMENDATION Requests the Neighborhoods, Housing and Development Subcommittee recommend to City Council the allocation of $186,000 in Section 8 Administrative Funds and to enter into a two (2) year contract, with three (3) one-year options to extend, with HOM, Inc., for the purpose of administering eligibility and leasing services for special populations.

18


19


CITY COUNCIL REPORT



SUBJECT: LOAN OF HOME AND CDBG PROGRAM FUNDS -- WESTERN LODGE APARTMENTS AND TRAVEL INN APARTMENTS

This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend City Council approval to loan and disburse up to $1,100,000 of HOME Investment Partnership (HOME) Funds and up to $300,000 of Community Development Block Grant (CDBG) Funds for the redevelopment of Western Lodge Apartments located at, 3725 E. Van Buren, and approval to loan and disburse up to $2,100,000 of HOME Investment Partnership Funds and up to $400,000 of Community Development Block Grant Funds for the redevelopment of the Travel Inn Apartments, 3541 E. Van Buren, to Chicanos Por La Causa, Inc. The overall deal structure and terms will be consistent with the Housing Department’s underwriting guidelines for multi-family rental projects with the exception of the City of Phoenix loans will be the primary permanent debt. This request for HOME and CDBG funds aligns with the City Council’s priority of providing housing for homeless and special needs populations. Both projects are located in District 8. THE ISSUE The Western Lodge Apartments is the rehabilitation of a former hotel and will consist of 46 studio apartments. The proposed project will be 100 percent affordable with all of the units serving families below 60 percent of the area median income. All of the units will serve chronically homeless households. The property will include the services of an on-site coordinator to assist tenants with logistics for transportation, education, employment opportunities and other self-sufficiency building activities. The total project cost is estimated at $2,411,408. The developer will use Neighborhood Stabilization Program (NSP) funds to acquire the property. The City’s HOME and CDBG awards are contingent on the acquisition of the building, completion of an environmental review and receiving an approved release of funds from the U.S. Department of Housing and Urban Development (HUD). The Travel Inn Apartments is the rehabilitation of a former hotel and will consist of 90 studio apartments. The proposed project will be 100 percent affordable with all of the units serving families below 60 percent of the area median income. All of the units will serve chronically homeless households. The property will include the services of an on-site coordinator to assist tenants with logistics for transportation, education, employment opportunities and other self-sufficiency building activities. The total project cost is estimated at $4,793,371. The developer used Neighborhood Stabilization Program (NSP) funds to acquire the property. The City’s HOME funds and CDBG funds award are contingent on the completion of an environmental review and receiving an approved

20

Release of Funds from the U.S. Department of Housing and Urban Development (HUD). The Housing Department has sufficient HOME and CDBG funds in its present allocation to fund this request. Any sequestration action by Congress does not affect the ability of the City to fund this project. OTHER INFORMATION Chicanos Por La Causa, Inc. will partner with Cantwell-Anderson in the development of these two properties. Cantwell Anderson has successfully developed housing for special needs populations in Phoenix and other southwest communities. HOUSING IMPACT Affordable housing is generally defined as housing provided to individuals or families between 40 percent and 60 percent of adjusted family median income ($17,700 - $26,520 for an individual). The approval of the Western Lodge Apartments and the Travel Inn Apartments will further the Housing Department’s goal of increasing affordable housing opportunities within the City of Phoenix. RECOMMENDATION This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend City Council approval to loan and disburse up to $1,100,000 of HOME Investment Partnership (HOME) Funds and up to $300,000 of Community Development Block Grant (CDBG) Funds for the development of Western Lodge Apartments and approval to loan and disburse up to $2,100,000 of HOME Investment Partnership Funds and up to $400,000 of Community Development Block Grant Funds for the development of the Travel Inn Apartments to Chicanos Por La Causa, Inc. The overall deal structure and terms will be consistent with the Housing Department’s underwriting guidelines for multi-family rental projects with the exception that the City of Phoenix loans will be the primary permanent debt.

21


CITY COUNCIL REPORT



SUBJECT: FUNDING FOR SANTA FE SPRINGS APARTMENTS OPERATING RESERVE

This report requests the Neighborhoods, Housing and Development Subcommittee recommend City Council approve the use of Neighborhood Stabilization Program (“NSP”) and/or Housing Department Affordable Housing Program funds up to $500,000. Funds will cover operating expenses through rehabilitation, lease-up, and to create an operating reserve at the Santa Fe Springs Apartments, located at 1717-1725 West Glendale Avenue in District 5. The financial structure and terms of agreements will be consistent with the City of Phoenix Affordable Housing and NSP underwriting guidelines for multi-family rental projects. THE BACKGROUND Santa Fe Springs Apartments is a 310-unit apartment community located at 1717-1725 West Glendale Avenue, Phoenix, AZ 85021. The Phoenix Residential Investment Development Effort (“PRIDE”), a City of Phoenix-controlled non-profit corporation owns Santa Fe Springs Apartments. The community was built in 1974, consists of 20 buildings, and sits on approximately 7.4 acres. The City Council previously approved Ordinances S-36065, S-36979, S-38258, and S-39317 which granted authority for loans to PRIDE for up to $3,450,000 in HOME Investment Partnerships Program funds and up to $8,205,525 in NSP funds for the acquisition and rehabilitation of the Santa Fe Springs Apartments, an affordable multifamily rental housing community serving primarily low and moderate income families. Under the previous ownership, the Santa Fe Springs property became a severely deteriorated blight on the neighborhood, and was a magnet for crime and illegal activity. The goal of the revitalization of this complex is to restore the property to suitable living conditions, and spur community renewal actions. Rehabilitation, with a budget of $4,424,000, is currently underway, and includes: new roofing systems; replacement of chiller piping; new cabinets, countertops, flooring and fixtures in some unit interiors; additional site lighting; irrigation system; new landscaping; and the renovation of common areas such as the rental office, clubhouse, central laundry buildings, playground and recreational facilities. THE ISSUE The requested funding will be used to cover operating expenses during rehabilitation and lease-up of newly renovated units, and will ensure efficient operations and long-term sustainability of the property through the creation of an operating reserve. Funding to cover these expenses and the creation of the operating reserve will utilize up to

22

$500,000 of NSP funds and/or the Housing Department’s Affordable Housing Program funds. The use of NSP funds to cover operating expenses and/or to create an operating reserve is subject to approval by the U.S. Department of Housing and Urban Development (“HUD”). HOUSING IMPACT Affordable Housing is generally defined as housing provided to individuals or families between 40 percent and 60 percent of adjusted Area Median Income (AMI) ($25,250 - $37,860 for a family of four). The revitalization of the Santa Fe Springs Apartments furthers the Housing Department’s goal of increasing affordable housing opportunities within the City of Phoenix by providing mixed income communities in diverse neighborhoods. RECOMMENDATION Staff requests the Neighborhoods, Housing and Development Subcommittee recommend City Council approve the use of Neighborhood Stabilization Program (“NSP”) and/or Housing Department Affordable Housing Program funds up to $500,000. Funds will cover operating expenses through rehabilitation and lease-up, and to create an operating reserve at the Santa Fe Springs Apartments, located at 1717-1725 West Glendale Avenue in District 5. The financial structure and terms of agreements will be consistent with the City of Phoenix Affordable Housing and NSP underwriting guidelines for multi-family rental projects.

23


CITY COUNCIL REPORT



SUBJECT: AUTHORIZATION TO DISPOSE OF ONE SCATTERED SITE HOME THROUGH THE SECTION 32 PROGRAM AND AMEND THE SECTION 32 PLAN TO DELETE AND ADD A NEW HOME TO THE ORIGINAL PLAN

This report requests the Neighborhoods, Housing and Development Subcommittee recommend City Council approval to dispose of one (1) home in the Scattered Sites inventory, and submit to the U. S. Department of Housing and Urban Development (HUD) an amendment to the City of Phoenix Section 32 Scattered Sites Homeownership Plan (the Plan) to remove one Scattered Site home and add a different Scattered Site home to the current approved disposition list. BACKGROUND The Plan was authorized by HUD in 2005 pursuant to Section 32 of the U.S. Housing Act of 1937 as amended by the Quality Housing and Work Responsibility Act of 1998. The plan provides for the sale of up to the fifty existing Scattered Site public housing units identified in Ordinance S-33991 (the “Units”). The Units are sold to families whose incomes are less than 80 percent of Area Median Income (AMI) ($50,500 for a family of four) and who qualify for a traditional fixed rate mortgage. The price of homes sold through the Section 32 program is based upon the value of the home as determined by a state- certified appraiser. To date twelve homes have been sold. Until recently, all homes were sold to participants in assisted housing programs which severely restricted the ability to match a buyer with a home in their preferred location. The program is now open to all families whose income is 80 percent of AMI and information has been provided to housing counseling agencies and the Arizona Multi-Housing Association. THE ISSUE To increase sales, existing residents of Scattered Site homes were contacted about purchasing their specific home or one of the other vacant homes in the inventory. Several families whose current houses are not on the Plan’s disposition list are interested in purchasing the home in which they currently reside. One resident has completed all of the requirements including approval for a mortgage for their existing home. The home to be disposed of and added to the Plan is located at 4052 E. Emile Zola Ave, Phoenix, AZ 85032. The home to be removed from the plan is located at 5930 W. Roanoke Ave, Phoenix, AZ 85035. The current occupants of 5930 W. Roanoke Ave., are not interested in purchasing their residence, but will continue to rent the house from the Housing Department. The Housing Department will return to the NHD Subcommittee in the fall to further restructure the program to allow for additional purchases of non-Plan houses by current Scattered Sites residents.

24

HOUSING IMPACT The Plan will further the Housing Department's mission of providing affordable housing opportunities for low and moderate-income families. FINANCIAL IMPACT There is no impact on the City’s General Fund. Proceeds from the sale of this house will be used to support the public housing program. RECOMMENDATION This report requests the Neighborhoods, Housing and Development Subcommittee recommend City Council approval to dispose of one (1) home in the Scattered Sites inventory, and submit to the U. S. Department of Housing and Urban Development (HUD) an amendment to the City of Phoenix Section 32 Scattered Sites Homeownership Plan (the Plan) to remove one Scattered Site home and add a different Scattered Site home to the current approved disposition list.

25


CITY COUNCIL REPORT

TO: Neal Young Senior Executive Assistant To The City Manager

FROM: Deanna Jonovich Human Services Director

SUBJECT: CITY OF PHOENIX HOMELESS INITIATIVES UPDATE

The purpose of this report is to provide an overview of recent accomplishments and activities helping to alleviate homelessness in the city of Phoenix. The City has been at the forefront of implementing innovative programs and realigning services to effectively address homelessness. THE ISSUE The effects of homelessness on the community are financial, as well as a social. Research on permanent supportive housing and the “Housing First” models has indicated these solutions provide high impact, cost effective results. The models reduce the continued use of services including shelter, ambulance, police/jail, health care, emergency room, behavioral health, and other community services. OTHER INFORMATION On May 30 and 31, 2013, U.S. Housing and Urban Development Secretary Shaun Donovan visited the City of Phoenix and met elected officials, City staff, City leaders, and the Mayor’s Advisory Group on Homelessness. Committees from the advisory group presented on four priority areas: Faith Forum/Outreach The Advisory group believes outreach to faith groups is essential for two reasons:

1) Faith groups are crucial partners in the fight to end homelessness and bring additional resources and advocacy to the table.

2) Some communities of faith who are new to the issue would benefit from peer learning on the best way to engage and serve homeless individuals.

The Arizona Coalition to End Homelessness, United Methodist Outreach Ministries and the Arizona Coalition Against Domestic Violence will coordinate logistics and outreach to additional faith groups, Valley Interfaith, Open Table, Connecting to Serve, and others. Additionally, the Human Services Department faith advisory group will assist in hosting a Faith Forum this September at Bethany Bible Church. The faith group includes leaders from all major denominations in Phoenix. Many members participate in the annual Heat Relief Network and shelter outreach. Managing to Numbers In May 2013, 20 staff from Phoenix metro area homeless and veteran services providers attended a “Rapid Results Acceleration Boot Camp” on homelessness in

26

Chicago hosted by 100,000 Homes and the Rapid Results Institute. During the Boot Camp, the Phoenix team and nine other regions set short and long term goals to accelerate the placement of chronically homeless individuals into permanent supportive housing (PSH). The goal setting process included the use of a comprehensive spreadsheet which factored local HMIS, Point-in-Time and VA data to determine the total number of placements into permanent supportive housing needed to effectively end chronic and veteran homelessness by December 2015. The 100 day target was set at 165 placements based upon known PSH units coming online. The long term goal increases the current rate of 44 placements per month to 50 to 55 placements per month through the end of 2015. Starting in Our Own Backyard Last year, the Housing and Human Services departments paved the way for effective deployment of City of Phoenix resources by collaborating for the very first time to issue a Request For Proposals (RFP) for housing and supportive services using the “Housing First” model. Rental assistance and funding for services will enable 200 additional chronically homeless families to access permanent assisted housing over the next three years. Work over the summer will focus on law enforcement and mental health and implementing a uniform approach to homeless individuals with a focus on referring instead of arresting where appropriate. Funders’ Collaborative Valley of the Sun United Way is in the last year of its collaborative effort on emergency shelter and food which raised $6 million over five years. Given the success of that effort and in support of the Mayor’s Advisory Committee, United Way has convened public and private funders across the county to participate in the development of a comprehensive funder collaborative to end homelessness. This is an emerging strategy across communities in the US that are making significant progress in ending homelessness. RECOMMENDATION This report is for information only.

notice of public meeting - phoenix, arizona · 1 notice of public meeting phoenix city council...

Documents