Form revised December 9, 2004

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Human Services	Michael Look 5-1717	Janet Credo 4-8687

Legislation Title:

AN ORDINANCE relating to the City’s Consolidated Plan for Housing and Community Development for 2005-2008; 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 2005 Budget for activities under the Emergency Shelter Grant Program, HOME Program, Community Development Block Grant Program, and Housing Opportunities for Persons With AIDS program; amending City's Consolidated Plan to amend the 2005 Table of Proposed Projects component and the Housing Policies appendix, and revising Appendix P to such Plan to include a new Neighborhood Revitalization Strategy for Southeast Seattle and to delete such strategies for four other neighborhoods; authorizing the submission of revised Appendix P to the United States Department of Housing and Urban Development; authorizing other conforming amendments to the Consolidated Plan; allocating unused funds from prior years; and ratifying and confirming prior acts.

· Summary of the Legislation:

This legislation authorizes acceptance of 2005 grant funds from the United States Department of Housing and Urban Development (HUD) for four Consolidated Plan programs: Community Development Block Grant (CDBG), the HOME program, Housing Opportunities for Persons with AIDS (HOWPA), and Emergency Services Grant (ESG). The legislation also revises expenditure allowances in the 2005 budget for various funds and departments and adopts an amended 2005 Table of Proposed Projects component of the Consolidated Plan. Certain economic development and housing policies are also revised.

· Background:

The City’s 2005 Adopted Budget contains estimates for the City’s 2005 allocation of Community Development Block Grant, HOME, HOPWA and ESG funds. The Table of Proposed Projects, contained in the 2005 – 2008 Consolidated Plan (the official application to HUD for these funds), includes a detailed list of planned spending for CDBG, HOME, HOPWA, and ESG funds. The City received its allocation amounts from HUD in April of 2005. This legislation accepts these grant funds (already appropriated to the extent of the prior estimates) and makes changes to certain appropriations to reflect the City’s actual allocations.

The City’s CDBG allocation is approximately $700,000 less than estimated, although appropriation authority decreases only by approximately $51,000 because of increases in program income and recaptured funds. The HOPWA allocation in 2005 is $75,000 less than anticipated. The combined HOME and American Dream Downpayment Act (ADDI) grant is $549,532 less than expected. Appropriations for the HOME/ADDI program decrease by $299,532 because of reprogrammed and carryforward funds. The ESG allocation is $4,366 lower than anticipated. These decreases are reflected in a revised Table of Proposed Projects, attached to the legislation.

The City is also required by HUD to amend the Table of Proposed Projects, Attachment 1 to the legislation, to incorporate any current year changes in its Consolidated Plan of $50,000 or more, or if there are changes to the use if CDBG funds from one eligible use to another. This legislation amends the 2005 Table of Proposed Projects to reflect the following:

Office of Housing:

· Technical changes, including recategorization of the Office of Housing Homebuyer Education project from a multi-family activity to a single-family activity and addition of a Lead Paint Contracts activity.

· Addition of $102,000 to the Multifamily Loan Fund from increased program income due to the receipt of proceeds from a property sale.

Human Services Department:

· Technical changes including corrections to activity descriptions and adjustments to multiple contracts to reflect lower cost of living increases.

· As part of the reduction to the 2005 CDBG allocation, $177,000 of CDBG funding for the New Beginnings Shelter for Battered Women is replaced with other City funds.

· Also as part of the plan to respond to the CDBG reduction, a reduction of $28,000 to Hickman House, a domestic violence shelter. This funding is replaced with other City funds.

· The substitution of $81,000 in CDBG funds for General Funds to support a homeless youth planner. The General Funds are redirected to support human services contracts that would otherwise lose support because of the CDBG reduction.

Office of Economic Development and Department of Neighborhoods:

· Technical changes, including reallocation of funds within Office of Economic Development Community Development and Technical Assistance activities to reflect actual workplanswork plans; and transfer of Department of Neighborhoods administration funding from Executive Leadership and Historic Preservation to the Community Building Division.

There is no net effect on services provided by CDBG-funded programs as a result of the decrease. HSD is able to use unanticipated reprogrammed funds from a CDBG-funded project and other City funds to cover the shortfall for 2005. The other fund reductions (HOPWA, HOME, ESG) will result in less support for social services agencies to provide emergency shelter and other services to low and moderate-income persons.

The legislation also includes two additional attachments. The City is submitting a Southeast Seattle Neighborhood Revitalization Strategy (Attachment 2 to the legislation) to HUD for approval. This new strategy supercedes the previous strategies for five City neighborhoods, and concentrates the City’s focus on southeast Seattle. The strategy serves as a planning tool and policy framework for spending CDBG funds on the implementation of community goals.

A revised 2005-2008 Consolidated Plan Appendix H (Attachment 3 to the legislation) updates certain Office of Housing policies to align them with the recently-adopted (Ordinance 121803) Administrative and Finance Plan for 2002 Seattle Housing Levy.

· Please check one of the following:

____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

__X_ This legislation has financial implications. (Please complete all relevant sections that follow.)

Appropriations.

Fund Name and Number	Department	Budget Control Level*	2005 Appropriation	2006 Anticipated Appropriation
CDBG Main Fund 17810	Human Services	H17810 HSD CDBG Main Fund	($51,061)
HOME Fund 16490	Office of Housing	XZ9001 Homeownership and Sustainability	HOME ($139,473)
HOME Fund 16490	Office of Housing	XZ490 HOME Administration	HOME ($16,006)
HOME Fund 16490	Office of Housing	H30ET Tenant Based Rental Assistance	HOME ($144,053)
Human Services Operating Fund 16200	Human Services	H3200	($79,366) (combination of HOPWA ($75,000) and ESG ($4,366)
TOTAL			($429,9598)

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes: to Appropriations Table:

· While the annual award for the CDBG program is $700,112 less than planned, appropriations for the CDBG Main Fund are reduced by only $51,061 due to the ability to reprogram prior year’s funds for 2005 activities and additional program income. The sources of funds that offset the decrease of $700,112 are: $530,000 in unused capital facilities dollars originally programmed for the YouthCare project; and $116,577 of program income from the Office of Housing. There is also a $2,474 technical adjustment to correct an error on the original Table of Proposed Projects.

· The reduced appropriations for the HOME Fund in the Office of Housing and the Human Services Operating Fund stem directly from the reduction in the annual award from HUD. The HOME award was $299,532L less than planned. HOPWA was $75,000 less and ESG was $4,366 less.

Anticipated Revenue/Reimbursement: Resulting From This Legislation:

	Fund Name and Number	Department	Revenue Source	2005 Revenue	2006 Revenue
CDBG Main Fund 17810		Human Services	CDBG	($583,535583,535)
HOME Fund 16490		Office of Housing	HOME	HOME ($299,532)
Human Services Operating Fund 16200		Human Services	HOPWA ESG	($79,366) (combination of HOPWA ($75,000) and ESG ($4,366)
TOTAL				($962,433962,433)

Notes to Revenue Table:

· The decrease in the expected CDBG grant of $700,112 is offset somewhat by the increased program income from the Office of Housing, an additional $14,527 in program income plus $102,050 on the sale of a piece of surplus property. The net decrease in revenue is thus $583,535.

· The revenue decreases to HOME, ESG, and HOPWA directly reflect the lower than expected grant amounts from the federal government.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2005 Positions	2005 FTE	2006 Positions**	2006 FTE**
	N/A
	TOTAL

* List each position separately

** 2006 positions and FTE are total 2006 position changes resulting from this legislation, not incremental changes. Therefore, under 2006, please be sure to include any continuing positions from 2005

Notes:

N/A

· Do positions sunset in the future? (If yes, identify sunset date):

Spending/Cash Flow:

Fund Name and Number	Department	Budget Control Level*	2005 Expenditures	2006 Anticipated Expenditures
CDBG Main Fund 17810	Human Services	H17810 HSD CDBG Main Fund	($51,061)
HOME Fund 16490TOTAL	Office of Housing	XZ9001 Homeownership and Sustainability	HOME ($139,473)
HOME Fund 16490	Office of Housing	XZ490 HOME Administration	HOME ($16,006)
HOME Fund 16490	Office of Housing	H30ET Tenant Based Rental Assistance	HOME ($144,053)
Human Services Operating Fund 16200	Human Services	H3200	($79,366) (combination of HOPWA ($75,000) and ESG ($4,366)
TOTAL			($429,959)

* See budget book to obtain the appropriate Budget Control Level for your department.

Notes to Spending Table:

These expenditure levels are reflected in the revised Table of Proposed Projects (TPP) within the 2005-2008 Consolidated Plan Housing and Community Development.

· What is the financial cost of not implementing the legislation?

The City is required by HUD to amend the Table of Proposed Projects if there are changes to the use if CDBG funds from one eligible use to another. In addition, the City of Seattle policy requires an amendment to the Annual Action plan if changes in an allocation exceed $50,000. If this legislation were not implemented, these funds could not be used as effectively as possible to meet the needs of low- and moderate-income persons.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives? None

· Is the legislation subject to public hearing requirements:

Yes. The City is required to publish a “Notice of Substantial Amendment” in the Daily Journal of Commerce advising citizens that they have a period of 30 days to comment on any changes to the Consolidated Plan. A public hearing is required at the end of the public comment period. A public hearing is scheduled for July 15.

· Other Issues (including long-term implications of the legislation):

Please list attachments to the fiscal note below: