AN ORDINANCE relating to funding for housing and community development programs; authorizing acceptance of grant funds from the United States Department of Housing and Urban Development for programs included in the City's Consolidated Plan for Housing and Community Development; decreasing appropriations in the 2012 Adopted Budget of funds available for activities under the Community Development Block Grant (CDBG) Program and for activities of the Office of Housing; increasing the appropriation in the 2012 Adopted Budget for the Human Services Department for activities funded by the Housing Opportunities for Persons with AIDS program and the Emergency Solutions Grant program; increasing appropriations in the 2012 Adopted Budget for certain activities of the Office Housing and Office of Economic Development; amending the 2012 Annual Allocation Plan component of the 2012 Update to the Consolidated Plan; amending the 2011 Annual Allocation Plan component of the 2011 Update to the Consolidated Plan; reallocating unexpended funds from prior years; recognizing the Section 108 program income within the Consolidated Plan; and ratifying and confirming prior acts, all by a three-fourths vote of the City Council.

WHEREAS, Ordinance 123739, passed November 14, 2011, adopted The City of Seattle's 2012 Update to the 2009 2012 Consolidated Plan for Housing and Community Development (2012 Update), including the 2012 Annual Allocation Plan, authorized the submission of the 2012 Update to the United States Department of Housing and Urban Development (HUD), and thereby applied for funds available from HUD for community development, human services, economic development, and housing under four separate entitlement grants: CDBG, the HOME program, Housing Opportunities for Persons With AIDS (HOPWA), and the Emergency Solutions Grant (ESG) Program; and

WHEREAS, Ordinance 123438, passed November 8, 2010, adopted The City of Seattle's 2011 Update to the 2009 2012 Consolidated Plan for Housing and Community Development (2011 Update), including the 2011 Annual Allocation Plan, and which was subsequently amended by Ordinance 123692, passed September 6, 2011, authorized the submission of the 2011 Update to HUD, and thereby applied for funds available from HUD for community development, human services, economic development, and housing under the CDBG, HOME, HOPWA, and ESG programs; and

WHEREAS, Ordinance 123758, passed November 21, 2011, adopted the City Budget for fiscal year 2012 and included appropriations in several City departments based on estimates of the grant awards for the four HUD fund sources listed above; and

WHEREAS, the grant awards that have been received from HUD for the 2012 CDBG, HOME, HOPWA and ESG programs differ from the amounts anticipated, and authorization levels for these grants made in the 2012 Budget must be adjusted; and

WHEREAS, the grant award for the 2011 ESG program was increased late in calendar year 2011 and thus the authorization level for the program must be adjusted in the 2012 Budget; and

WHEREAS, anticipated program income and unspent funds from prior years' projects have yielded more funds than estimated in the 2012 Update to the Consolidated Plan; and

WHEREAS, HUD has laid out certain requirements for the receipt of 2011 ESG funds in the "Notice of the FY 2011 Substantial Amendment Process and Other Related Information for Recipients of Emergency Solutions Grants Program Funds [Docket No. FR-5594-N-01]"; and

WHEREAS, Section 108 loan program fees paid with proceeds from Section 108 loans and collected in excess of the needs to fund the administration of the loan program will now be allowed to fund general CDBG activities; and

WHEREAS, the 2012 Annual Allocation Plan must be revised to reflect actual 2012 funding and revised allocations; and

WHEREAS, the 2011 Annual Allocation Plan must be revised to reflect actual 2011 funding and revised allocations; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The Mayor or his designee is authorized to execute, deliver and perform for and on behalf of The City of Seattle such agreements as are reasonably necessary to accept financial assistance from HUD for the following grant programs up to the maximum amounts listed below:

Community Development Block Grant (CDBG) $9,267,515

HOME Investment Partnership $2,610,286

Housing Opportunities for Persons with AIDS (HOPWA) $1,814,768

2012 Emergency Solutions Grant (ESG) $929,144

CDBG funds, when received, shall be deposited into the CDBG Main Fund (17810). HOME funds, when received, shall be deposited into the HOME Subfund of the Low-Income Housing Fund (16490). HOPWA and ESG funds, when received, shall be deposited into the Human Services Operating Fund (16200). The Mayor or his designee is further authorized to execute and deliver such other documents relating to the agreements as may be required.

Section 2. The Mayor or his designee is authorized to execute, deliver and perform for and on behalf of The City of Seattle such agreements as are reasonably necessary to increase financial assistance from HUD for the 2011 ESG Program by a maximum of $297,592. ESG funds, when received, shall be deposited into the Human Services Operating Fund (16200). The Mayor or his designee is further authorized to execute and deliver such other documents relating to the agreements as may be required.

Section 3. The appropriations for the following items in the 2012 Budget are decreased from the funds shown, as follows:

Section 4. In order to pay for necessary expenditures of the City for which insufficient appropriations were made due to causes that could not reasonably have been foreseen at the time of the making of the 2012 Budget, the appropriations for the following items in the 2012 Budget are increased from the funds shown, as follows:

Section 5. The 2012 Annual Allocation Plan component of the 2009 -2012 Consolidated Plan for Housing and Community Development, as adopted by Ordinance 123739 as Section 4 of the 2012 Update, is amended as reflected in Attachment 1 to this ordinance. The Director of the Human Services Department is authorized to make any conforming changes that may be necessary to other portions of the Consolidated Plan to reflect the changes adopted in this Section. The allocations set forth in Attachment 1 outline the City's intended expenditures for the funds and do not constitute appropriations or modify the amounts of any existing appropriations, nor are they to be considered as final funding decisions. The authority of the respective City departments and offices to implement the activities set forth in the 2012 Annual Allocation Plan, as amended, is subject to sufficient appropriations in the 2012 Adopted Budget, as amended by this ordinance, or in any separate ordinance. Implementation of any specific project or program is also subject to a final determination by the appropriate office or department after completion of any necessary review under environmental and related laws.

Section 6. The 2011 Annual Allocation Plan component of the 2009 -2012 Consolidated Plan for Housing and Community Development, as adopted by Ordinance 123438 as Section 4 of the 2011 Update, and as amended by Ordinance 123692, is amended to add the items reflected in Attachment 2 to this ordinance. The Director of the Human Services Department is authorized to make any conforming changes that may be necessary to other portions of the Consolidated Plan to reflect the changes adopted in this Section. The allocations set forth in Attachment 2, to the extent not already expended, outline the City's intended expenditures for the funds and do not constitute appropriations or modify the amounts of any existing appropriations, nor are they to be considered as final funding decisions. The authority of the respective City departments and offices to implement the activities set forth in Attachment 2 is subject to sufficient appropriations in the 2012 Adopted Budget, as amended by this ordinance, or in any separate ordinance. Implementation of any specific project or program is also subject to a final determination by the appropriate office or department after completion of any necessary review under environmental and related laws.

Section 7. The 2011 Update to the Consolidated Plan is amended as set forth in Attachment 3 to this ordinance, which is made a part of the 2011 Action Plan and, where not specific to 2011 funding, part of the 2012 Action Plan, under HUD regulations, in response to HUD's requirements for the receipt of the additional 2011 ESG funds and for 2012 ESG funds.

Section 8. Notwithstanding prior legislation, Section 108 loan program fees collected prior to 2010, which were paid for with Section 108 funds, are deemed program income by HUD regulations and shall therefore be used to fund general CDBG program costs to the extent not required for Section 108 program administration.

Section 9. The 2012 Update to the 2009 -2012 Consolidated Plan is amended by adding the following to the paragraph at Section 2, Community Development Block Grant Program: "Additionally, program income from the Section 108 Loan Program of $68,261 is also available to fund CDBG activities in 2012."

Section 10. Execution of the agreements authorized in Sections 1 and 2 hereof, and other acts pursuant to the authority and prior to the effective date of this ordinance, are hereby ratified and confirmed.

Section 11. Nothing in this ordinance, the attachments to this ordinance, or the agreements and documents authorized by this ordinance is intended to confer any legal rights or entitlements on any persons, groups or entities, except the rights of HUD under the agreements authorized hereunder.

Section 12. This ordinance shall take effect and be in force 30 days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by a three-fourths vote of all the members of the City Council the ____ day of ________________________, 2012, and signed by me in open session in authentication of its passage this _____ day of ___________________, 2012.

_________________________________

President __________of the City Council

Approved by me this ____ day of _____________________, 2012.

_________________________________

Michael McGinn, Mayor

Filed by me this ____ day of __________________________, 2012.

____________________________________

City Clerk

(Seal)

Michael Look/SB HSD 2012 Subst Amend ORD April 17, 2012 Version #9

Attachment 1: Amendments to City of Seattle 2012 Annual Allocation Plan

Attachment 2: Amendments to City of Seattle 2011 Annual Allocation Plan

Attachment 3: Emergency Solutions Grant Program Amendment to City of Seattle 2011 Update to the Consolidated Plan

Attachment 1: Amendments to City of Seattle 2012 Annual Allocation Plan (150 KB PDF document)

Attachment 2

Amendment to City of Seattle 2011 Annual Allocation Plan

Attachment 3

EMERGENCY SOLUTIONS GRANT PROGRAM AMENDMENT TO

2011 UPDATE TO THE CONSOLIDATED PLAN

On January 27, 2012, U.S. Housing and Urban Development published a "Notice of the FY 2011 Substantial Amendment Process and Other Related Information for Recipients of Emergency Solutions Grants Program Funds" in the Federal Register (Volume 77, No. 18, page 4337). This Attachment responds to that Notice and is adopted as an amendment to the 2011 Update to the Consolidated Plan by the City Council via Ordinance No. __________. This Attachment shall be known as Section 7 of the 2011 Update and therefore is amended to the four-year 2009 -2012 Consolidated Plan.

Background

In November 2011 the City of Seattle was notified by U.S. Housing and Urban Development that its funding under the Emergency Solutions Grant Program will receive a "part 2" or "second" allocation of $297,592. In January of 2012, a notice of funding requirements was published in the Federal Register containing requirements that must be met by fund recipients prior to their actual receipt of the second allocation. This Section responds to those requirements, describing our consultation process with the local continuum of care for the allocation of the second allocation, our match contributions, funding priorities, and program standards.

Planned Use of Second Allocation & Funding Priorities

The City of Seattle proposes to use the second allocation of 2011 funds, totaling $297,592, to fund homeless prevention services through two community-based non-profit providers in 2012. The two programs are:

* Solid Ground, Housing Stability Case Management Program, $160,000

* Neighborhood House, Homeless Prevention Program, $137,592

These programs were selected to receive funding to indirectly offset reductions in the City's Community Development Block Grant funding for 2012. Using the money in this manner prevents the loss of services stemming from the reduced CDBG. These ESG funds will be in addition to other City General Fund support for these programs. In considering how to implement the goal of offsetting CDBG reductions, the City considered existing contracts which involved agencies:

* Experienced in accounting for the expenditure of federal funds

* Would not incur substantial burdens receiving these federal funds (e.g. A-133 audit requirements)

* Clearly documenting client income (and other) eligibility

* Having substantial-enough contracts through which the ESG funds could flow.

* Providing ESG-eligible services.

Funding will be provided in the form of a contract between the recipient agency and the Seattle Human Services Department. This contract contains specific terms and conditions of funding, reporting and invoicing requirements, performance expectations and service delivery levels, record-keeping responsibilities, and consent to on-site monitoring as requested by the City.

Consultation and Citizen Participation

The Seattle / King County Continuum of Care includes King County plus the cities of Seattle, Auburn, Bellevue, Federal Way, Kent, Renton, and Shoreline. The lead agency for the Continuum is the Committee to End Homelessness, a broad coalition of government, faith communities, nonprofits, the business community and homeless and formerly homeless people working together to implement the Ten-Year Plan to End Homelessness in King County. The City's proposed use of the second allocation was presented in a letter to the Continuum of Care via Mr. Bill Block, Program Director of the Committee to End Homelessness King County. A presentation was also made on April 2 to the Interagency Council of the County's Continuum of Care.

The planned use of the second allocation was also published community-wide in the City's newspaper of record, the Daily Journal of Commerce. More targeted announcements were made via the City's Human Services Department's public website and in a monthly electronic newsletter from the Human Services Department to a broad spectrum of social service providers and other interested parties.

Match Contribution

The City of Seattle will match the expenditures proposed for the second allocation of ESG funds by providing just under $1 million in City General Fund dollars to homelessness prevention and case management contracts in 2012. For program year 2012 the City's General Fund will support four separate contracts for supportive housing programs. Other City funding, including federal McKinney -Vento funding, supports additional supportive housing contracts.

Program Standards

In accordance with the Notice, a set of written program standards was developed for contracts funded by the Homelessness Prevention and Rapid Re-Housing Program which will be carried forward to the "second allocation" ESG contracts. As planning resources permit, these standards will be refined and expanded. Current standards, which apply to both 2011 second round and subsequent ESG funds, include the following.

Agencies will operate their programs as components of a Citywide approach to homelessness prevention, which includes participation in:

Access -Contracted agencies will take referrals from pre-screened callers from King County Community Information Line's 2-1-1 program and also receive walk-ins and referrals from partner agencies. Programs that provide services to families with children will participate in coordinated entry and assessment process when that system has been developed.

Housing Stability Case Management -Each household will be assessed by contracted agencies and will develop an individualized written action plan for each with goals to ensure that housing stability is achieved and maintained. Comprehensive assessments, housing plans, and program referrals will address strengths, needs, and plans.

Financial Assistance -Financial assistance, including rental assistance, is limited to the activities and costs as described in individual contracts. Any individual or family provided with financial assistance must have at least an initial assessment with a case manager who can determine the appropriate amount, type and duration of assistance to meet the household's needs or to make referrals to appropriate resources or services.

One Stop Access to Mainstream Benefits HSD's access to benefits program, PeoplePoint, and the Washington Connection benefits portal will be utilized by contracted agencies to connect households to services and benefits that increase overall household income. Agencies will register with the Washington State Department of Social and Health Services (DSHS) to assist their Program clients to apply for City and State benefits seamlessly through the Washington Connection electronic benefits portal.

Legal Services -Legal services may be provided by the agencies themselves utilizing staff qualified to render legal services in the state of Washington, or may make these services available by entering a partnership with local legal aid programs for such services. Legal services must be provided by an attorney, or other person(s) under the direct supervision of an attorney, primarily services directly related to rendering legal advice and providing representation in administrative or court procedures related to tenant/ landlord matters or housing issues.

Financial Empowerment -Contracted agencies will work with the Seattle-King County Asset Building Collaborative (SKCABC) and the Seattle-King County Financial Education Providers Network to incorporate financial empowerment into housing stabilization services offered to participants. Financial empowerment includes improving access to financial services, advancing financial education/counseling/coaching, encouraging asset building and protection, and promoting the uptake of public benefits and free tax preparation and tax credits such as the Earned Income Tax Credit.

Current and Accurate Program Information -Contracted agencies are required to enter Program data as described in their contracts directly into the Safe Harbors Homelessness Management Information System (HMIS), and, submit other reporting relating to the milestones and performance commitment established by their contracts.

Participation in the King County Ending Family Homelessness Initiative -When serving households with dependent children, agencies must participate in this initiative, where applicable. This initiative provides an opportunity to realign the family homeless assistance network and funding opportunities with promising practices in ways designed to serve families experiencing housing instability which may result in homelessness.

Additional program standards affect the operations of the program and the delivery of services. These standards are also set forth in the individual service contracts between the City and provider agencies. These standards include the following.

Income Eligibility Agencies will serve only households and individuals residing in the city of Seattle and whose incomes do not exceed 50% of the applicable HUD PMSA. Agencies will document and verify the income eligibility of each person and household enrolled for program services. Documentation must be from each client's specific income sources, or be verified in writing by a third party Federal or State agency currently serving the client, and whose services require proof of income.

Client and Employee Grievances -Agencies will maintain both client and employee grievance procedures, which include how individuals are informed of their rights to resolve grievances. The Agency shall maintain documentation of all grievances filed against the program including, but not limited to, name of the person filing the grievance, date the grievance is filed, nature of the grievance, outcome of the grievance resolution, and the date of resolution. Agency grievance procedures must be prominently posted in public and employee areas.

Right to Service Agencies shall not require households or individuals who are eligible for services under the terms of their service contracts with the City to participate in other Agency services or programs as a prerequisite or requirement to receive services provided through this Agreement.

Maintenance of Records -Agencies shall maintain timely and accurate records which reflect service levels, participant characteristics, specific actions taken to assist participants, and service outcomes and expenditures under the terms of their contracts. Agencies shall maintain client demographic data and complete the required City's client reports.

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