Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The...

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Memorandum CITY OF DALLAS DATE September 18, 2009 TO Housing Committee Members: Steve Salazar, Chair, Carolyn R. Davis, Vice- Chair, Tennell Atkins, Dwaine Caraway, Angela Hunt, Ann Margolin, Pauline Medrano SUBJECT Community Housing Development Organization (CHDO5) On Monday, September 21, 2009, you will be briefed on Community Housing Development Organization (CHDOs). A copy of the briefing is attached. know if you have any questions. Assistant City Manager c: The Honorable Mayor and Members of the City Council Mary K. Suhm, City Manager Deborah Watkins, City Secretary Tom P. Perkins, Jr., City Attorney Craig Kinton, City Auditor C. Victor Lander, Judiciary Ryan S. Evans, First Assistant City Manager Forest Turner, Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Dave Cook, Chief Financial Officer Jerry Killingsworth, Housing Director Jeanne Chipperfield, Director, Budget and Management Services Helena Stevens-Thompson, Assistant to the City Manager Please let “Dallas, The City That Works: Diverse, Vibrant and Progressive.”

Transcript of Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The...

Page 1: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

Memorandum

CITY OF DALLAS

DATE September 18, 2009

TO Housing Committee Members: Steve Salazar, Chair, Carolyn R. Davis, Vice-Chair, Tennell Atkins, Dwaine Caraway, Angela Hunt, Ann Margolin, PaulineMedrano

SUBJECT Community Housing Development Organization (CHDO5)

On Monday, September 21, 2009, you will be briefed on Community HousingDevelopment Organization (CHDOs). A copy of the briefing is attached.

know if you have any questions.

Assistant City Manager

c: The Honorable Mayor and Members of the City CouncilMary K. Suhm, City ManagerDeborah Watkins, City SecretaryTom P. Perkins, Jr., City AttorneyCraig Kinton, City AuditorC. Victor Lander, JudiciaryRyan S. Evans, First Assistant City ManagerForest Turner, Assistant City ManagerJill A. Jordan, P.E., Assistant City ManagerDave Cook, Chief Financial OfficerJerry Killingsworth, Housing DirectorJeanne Chipperfield, Director, Budget and Management ServicesHelena Stevens-Thompson, Assistant to the City Manager

Please let

“Dallas, The City That Works: Diverse, Vibrant and Progressive.”

Page 2: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

slide 1

Community Housing Development Organizations

(CHDOs)

A Briefing to the Housing Committee

Housing DepartmentSeptember 21, 2009

Page 3: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Key Focus Area: Economic Vibrancy

PURPOSE

To provide information with regard to Community Housing Development Organizations (CHDOs) that work with the City of Dallas

To address concerns raised by CHDOs at the August 17, 2009 Housing Committee briefing

Page 4: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Community Housing Development Organizations (CHDOs)

A CHDO is a private, nonprofit, community- based organization with the mission, experience, and capacity to develop affordable housing

CHDO is a designation created by the Department of Housing and Urban Development for cities and states to recognize and certify nonprofit development partners

Page 5: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

slide 4

CHDO Certification Criteria

In order for nonprofits to be certified, they must meet certain requirements:

Legal Status

Organizational structure

Capacity and experience

Financial Statements

Business Plan

Page 6: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

slide 5

Legal Status

To be eligible, organization must:

Be organized under state and local law (Incorporation through the State of Texas)

Have as its purpose to provide decent and affordable housing to low/mod income persons (evidenced in by-laws)

Have an IRS non-profit status 501(c)3

Page 7: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Organizational Structure

CHDO board of directors must:

Be made up of at least one-third low- income Dallas community representatives

Not have more than one-third public sector representatives

Page 8: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Capacity and Experience

Organizations must:

Have at least two years of experience developing housing

Demonstrate staff knowledge and experience to carry out housing development

Have financial capacity- CHDOs’ financial statements are reviewed for assets, liabilities, revenues, and expenses

Present a two-year business plan including a community outreach plan

Page 9: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Special Opportunities for Certified CHDOs

The Department of Housing and Urban Development requires cities and states receiving HOME Investment Partnership Program funds to set-aside a minimum of 15% of its annual allocation specifically for CHDO development projects

This averages $1.5 million per year for the City of Dallas

The HOME Program requires specific project contracting within 2 years and expenditure of funds within 5 years

Page 10: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Special Opportunities for CHDOs (continued)

CHDOs for the City of Dallas may apply for Operating Assistance Grants up to $50,000

There is a 5% cap on the City’s annual allocation for these funds

The total allocation is funded at the cap or about $400,000

These funds are typically spent in one year

CHDOs may access other CDBG project funds

These funds must be committed within one year and spent within two years

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Special Opportunities for CHDOs (continued)

CHDOs may access general obligation bond funds on a project by project basis

CHDOs have a set-aside under the Mortgage Assistance Program (MAP) for subsidizing homebuyers for their projects

CHDOs have first right of refusal for Land Bank properties

CHDOs may acquire tax foreclosed & surplus property under the Land Transfer Program

Page 12: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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CHDOs in Dallas

The City of Dallas currently has eighteen certified CHDOs which are certified annually

Ten CHDOs are active and represent 100% of production

The number of active CHDOs has not increased in the last five years but loans & commitments from the City of Dallas have increased from $3.5 million to $15 million

The majority of CHDOs are engaged in single family development (new construction)

A few CHDOs are engaged in special needs housing and multifamily rehabilitation

Page 13: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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CHDO Production

Fiscal Year 04-05 05-06 06-07 07-08 08-09

# of Homes Completed with City Assistance

80 101 39 61 71

Note#1 Numbers do not include any multifamily units producedNote#1 Numbers do not include any multifamily units produced

Note #2 Note #2 –– Of the 352 units produced over the last five years, 50% or 174 Of the 352 units produced over the last five years, 50% or 174 have been built by Habitat for Humanityhave been built by Habitat for Humanity

Page 14: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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RecommendationsRecommendation #1- Effectively using the CHDO liaison to assist in interdepartmental concerns

Les Allen, the CHDO liaison has been introduced to the CHDOs and is available for them to utilize-liaison will keep a record of all requested assistance and will report results to Committee

The Housing Department will also continue to hold quarterly CHDO meetings at which the liaison will be available

Page 15: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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RecommendationsRecommendation #2 - MAP Program

The Housing Department is recommending an increase in MAP assistance for CHDO produced units to $25,000 along with a 50% set-aside of funds with partial releases of uncommitted funds at each quarter

The Housing Department is working on new manuals for the MAP program which will contain clearer language regarding qualifications for homebuyers and a streamlined process for homebuyer clearance which will be ready by October 31, 2009

Page 16: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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RecommendationsRecommendation #3 - Land Bank

The Housing Department does take recommendations from CHDOs with regard to priority lots

The Housing Department will increase the set aside up to 100 priority lots of the 300 annual referrals to Linebarger for the CHDOs

Recommendation #4 - Expand Performance Measures for CHDOs

The Housing Department has developed a format for reporting under the operating assistance grant contracts that allow for the CHDO to report anything of significance in their business to the City

With HUD funds paying for housing units, the production numbers will continue to be a focal point

Page 17: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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RecommendationsRecommendation #5 - Layoffs in City Attorney’s

Office & Housing

There were no layoffs of attorneys working with the Housing Programs; however, one attorney retired

The Housing Department staff will continue to diligently work with the CAO to provide information necessary for contract development, homebuyer closings, or any other legal document needs for CHDOs

There were no layoffs in the Housing Department

Page 18: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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RecommendationsRecommendation #6 & #9 - Creative Funding for CHDOs

The Housing Department has included an additional $1.3 M in development funds for CHDOs in FY 09-10 budget for a total of $2.6 M

The FY 09-10 budget also includes an interim financing program in an amount of $700,000

Operating Assistance Grants for $400,000 and Housing Services Grants for $100,000 are also included in next year’s budget

With regard to other financing assistance, the Housing staff will continue to brainstorm with the CHDOs, bankers, foundations, and other financing partners as to the exact product(s) to create for additional programs

As the City is notified of NSP2, consideration will be given for grants as part of an overall subsidy strategy per homebuyer

Bond initiatives will be discussed in the upcoming fiscal year

Page 19: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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RecommendationsRecommendation #7 - Marketing

CHDO liaison will work with individual CHDOs to develop links via internet and help in accessing City employees

Recommendation #8 - Expansion of NIP Boundaries

Housing Department staff will research CHDO recommended areas bring recommendations regarding NIP areas to a future Housing Committee

Recommendation #10 - Future Updates

Housing Department recommends semi annual CHDO updates to Housing Committee

Page 20: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Concern

Concern raised regarding slow pace of payments

Actual 5 day average from submission to payment (see attachment)

Only 10% submissions are held for additional information

If we pay without meeting HUD requirements, we will have to repay with general funds

Solution: We will hold training for the CHDOs to increase their knowledge and better ensure accuracy

Page 21: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Upcoming Events

October 2009- MAP kickoff for FY 2009-2010

October 2009- Award for Operating Assistance Grants & Housing Services Grants

November 2009 – Quarterly CHDO Meeting and Training

Page 22: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

slide 21

Attachments

A. List of Currently Certified CHDOsB. Operating Assistance Grant Awards

2004-2008C. Current CHDO Development Awards and

CommitmentsD. CHDO Payment Schedule

Page 23: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

COMMUNITY HOUSING DEE EL OPME T ORGANIZA TIONSERTIFI€’A TION LIST FOR F 12009-10

j;dated --08/28/2009

- UIDO 1LTER1V4TEAI)DRESS DI TE CERTiFIED’

Buildcr% of Hope (D( Mailing Address 12/15/99333 N. Stemmons 1-rw. Ste IflO P.O. Box 224723Dallas lex:s ‘5207 Dallas, Texas 75222-4723Office t’I4) 2t(-985O Fax (214) 630-5155\onuan I lenr Presideni c\t. () I 1

1 heresi ( nalcs. Dircelot uf’ I Iousin — ext. 7012Dee Russell. ()pcrauuns Mmacer ext. 70 i 4

Center for Housing Resources. Inc. 09/23/063103 Greenuod St.Dallas. lexas ‘5204Office (214) X2X-$30 Fax (214) 828-4412Don R. Bianchi, Treasurer1 cOo Weii . Program Iminisi raIoTern \ derson 17 2) 567—4630

Central Dallas Community Development Corp. 01/09/032814 Main Street, Suite 102Dallas, Texas 75226Office (214) 573-2570 Fax (214) 573-2575John Greenan, Executive Director - ext. 21Johnice Woods, Dir. of Property Management — ext. 11F rnai1E•mail.: woedsçdm-hpe.pre

City Wide Community Development Corp. 05/21/073440 South Polk, Suite BDallas, Texas 75232Office (214) 734-1670 Fax (214) 371-0887Sherman Roberts. PresidentEma.il.:

Citybuild Community Development Corp. P.O. Box 260434 08/28/200914901 Quorum Dr., Suite 650 Piano, Texas 75026

Dallas, Texas 75254-6760Office (972) 820-5301 Fax (976) 661-0187Jim Bell, President/DirectorMary Anderwald, Board Secretary/DirectorGlen Rich, Cell: (469) 576-4002Emai.l.:

Office Copy

Page 24: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

COMML’WITY HOUSING DEVELOPMENT ORGANIZATIONSCERTIFICATION LIST FOR FY 2009-10

I pdatc’c! —08/28/2009

CllI)O .4LTERi’TE ADDRESS DATE CERTIFIED

Cornerstone Cornmunit De’eIopiawnt Corp. Inc. Mail iii \ddrus (i 24 1) -

2815 S. i.r\ay Streci P.O. Box 152551Dallas. I exas 52 15 Dallas, Texas 75315Offiuc (21 l 426-4X Fax (214) 426-0512Chris I.. Smmuns President

Dallas City Homes Mailing Address 08/24/06

729 N. Bishop .\e. P.O. Box 720307Dallas, Texas 75208 Dallas, Texas 75272Office (214) 943-9007 Fax (214) 948-4830Karen Brooks-Crosby, President — ext. 106Brandy Johnson — Administrative ext. 108Emai1:E-n .ail:

Dallas Neighborhood Affiance for Habitat 02/23/01

2800 N. Hampton RoadDallas, Texas 75212Office (214) 678-2300 Fax (214) 678-2380Scott Begin, Executive Director — ext. 2302Kristen Schulz, Manager of GovernmentBill Hall, Manager of Mortgage OperationsE-mail: bhaii(adallashahitaLoiEg.Internet:

East Dallas Community Organization Mailing Address 10/09/97

4210 Junius Street P.O. Box 720307Dallas, Texas 75246 Dallas, Texas 75372-0307

Office (214) 515-9779 Fax (214) 826-1966Gerald Carlton, Chief Operating Officer — ext. 115Rick Guerrero, Director of Operations ext. 114Jesse A. Banda, Homebuyer ConsultantE—ma.ii: geraidc.a.riton(/i.msncom.E-mail: gin5itcmsn.comi.i jssei24i/msnconi

Forest Heights Neighborhood Development Mailing Address 02/13/97

Corporation P.O. Box 25248

3203 Holmes St. Dallas, Texas 75225

Dallas, Texas 75215Office (214) 426-7600 Fax (214) 426-7602Liz Head, Executive DirectorE-mai.i: xe.cdirJ ridc1in_:)att,net

Office Copy

Page 25: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

COMMUNITY HOUSING DEVELOPMENT ORGANIZA TIONSCERTIFICATION LIST FOR FY 2009-10

Updated —08/28/2009

_

GM P Development Corporation, Inc 02/26/081403 Morrell StreetDallas, Texas 75203Office (214) 946-4522 Fax (214) 946-3410Roslynn McKenzie, Executive DirectorCell (469) 245-2003Email: Rozm.23L/va..h.oocom

LifeNet Community Behavioral Healthcare 09/21/0710405 E.Northwest Hwy.,Suite 100Dallas, Texas 75238Office (2143 932-1932 Fax (214) 932-1978Liam Mulvaney, President/CEOTraswell Livingston, Vice President Supportive HousingEmail: imuivanç\/1iftnettexaaori

Operation Relief Community Development 05/16/2000Corporation2010 Grand AvenueDallas. Texas 75215Office (214) 421-5393 Fax (214) 421-7098Jeff Hudson, CEO. cell (817) 771-9617Lmaih hudsaa/a .Cm-mc.or/

South Dallas/Fair Park Innercity Community 08/17/92Development Corporation4907 Spring Ave.Dallas, Texas 75210Office (214) 915-9900 Fax (214) 915-9909Diane Ragsdale, Director/Administrative/ManagerLaVette Dudley, Business Develop. DirectorE-mail: draasdale///icdmbiz1 ma Li dhaiççbz

SouthFair Community Development Corporation Mailing Address 02/03/942610 Martin Luther King Blvd P.O. Box 150353Dallas, Texas 75215 Dallas, Texas 75315Office (214) 421-1363 Fax (214) 421-1364Lester Nevels, Executive DirectorLee Sean Joimson. Office Manager

— ext. 21-mail Ian 1 5 1 Uavalaaacm

Lanai 1: lee /anioImoa :wsbenlobainet

Office Copy

Page 26: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

COMMUNITY HOUSING DEVELOPMENT ORGANIZATiONSCERTIFICATION LIST FOR FY 2009-10

l7pdated —08/28/2009

Vecinos Unidos, Inc. 02/11/083603 N. WinnetkaDallas, Texas 75212Office(214)761-1086 Fax(214)761-0838Rosa Lopez, Executive DirectorMacario Villanueva, Housing ManagerLma ii: reoez.a;\. xinosunidos. cni

[-maii: n 1Inue-va: ‘ecn.unidm

4 E Community Development Corporation 10/01/08888 S. Greenville Avenue, Suite 139Richardson. ‘I’exas 75081Office (972) 437-3801 Fax (972) 437-3139Edgar Michael Lee, Executive DirectorEmau: mleeoeration-oasis.g.

2000 Rose Foundation, Inc 03/25/092000 10th StreetDallas, Texas 75208Office (214) 941-1333 Fax (214) 944-5331Kelly R. Wiley. Executive DirectorAlonzo Harris cell (214) 214-682-8796I/-mail: 2OOOre1jsbqgiptaLnet

Office Copy 4

Page 27: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Page 28: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Page 29: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Page 30: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Page

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Page 31: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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Page 32: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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of3

Page 34: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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2of3

Page 35: Memorandum - Dallas · There is a 5% cap on the City’s annual allocation for these funds The total allocation is funded at the cap or about $400,000 These funds are typically spent

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