Form revised: December 14, 2010
FISCAL NOTE FOR NON-CAPITAL PROJECTS
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Department: |
Contact Person/Phone: |
CBO Analyst/Phone: |
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Human Services Department |
Michael Look / 615-1717 |
Amanda Allen / 684-8894 |
Legislation Title:
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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 the HOME program; increasing the appropriation for the Housing Opportunities for Persons with AIDS program and the Emergency Solutions Grant program; increasing appropriations 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; amending the housing policies section and recognizing the Section 108 program income within the Consolidated Plan; and ratifying and confirming prior acts.
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Summary of the Legislation:
This ordinance amends the 2011 and 2012 Annual Allocation Plan components of the Consolidated Plan for Housing and Community Development (“2011 Plan” and “2012 Plan,” respectively) to 1) adjust estimated funding amounts in the 2012 Plan to match the actual amounts to be received from the United States Department of Housing and Urban Development (HUD); 2) adjust the 2011 spending plan for the Emergency Solutions Grant Program to reflect an increase in the allocation for that program from HUD that occurred late in 2011; 3) reflect 2012 allocation changes negotiated with service providers; and 4) amend certain policy language regarding the Section 108 loan program, changing the use of Section 108-generated program income.. In addition, the bill provides General Subfund backfill to the Office of Economic Development to address reductions in Community Development Block Grant funding.
This ordinance authorizes the receipt of over $17 million in federal funds for services to low- and moderate-income residents of Seattle. It also establishes a spending plan that includes over $2 million in related program income and recaptured funds. The 2012 Plan, as amended by this legislation, allocates these funds to support projects and services primarily benefitting low- and moderate-income residents of Seattle.
Background:
Each year the City submits to HUD a plan for the use of funds from four federal programs: 1) Community Development Block Grant (CDBG); 2) HOME Investment Partnership (HOME); 3) Emergency Solutions Grant Program (ESG) (formerly Emergency Shelter Grant Program); and 4) Housing Opportunities for Persons with AIDS (HOPWA). This plan is submitted in November for expenditure commitments starting in January of the following year and is based on estimates of revenues to be received. HUD announced their actual allocations for each city for 2012 in January. Seattle’s 2012 award allocations in CDBG are lower than the estimates provided in the 2012 Adopted Budget, however program income is increased, offsetting the need for reductions and adding to CDBG programs by approximately $129,000.. The HOME award allocation in 2012 is lower than estimated in the 2012 Adopted Budget, resulting in a shortfall of almost $1.5 million. The combined ESG and HOPWA actual amounts are approximately $458,000 higher than the 2012 Adopted Budget revenue estimates. An amendment to the 2012 Plan is now necessary in order to align planned expenditures to actual revenues.
This amendment to the 2012 Plan also brings forward unanticipated balances from prior years that are now available for reprogramming and reflects an increase in anticipated program income for 2012. Expenditure proposals are made for these funds as well. It also amends the Adopted 2012 City Budget to offset CDBG reductions in the Office of Economic Development with General Fund resources.
Late in calendar year 2011, HUD notified the City that our allocation in the ESG program would increase by $297,592. In order to receive these funds, HUD is requiring recipient jurisdictions to amend their 2011 Allocation Plans. The attached legislation increases the 2012 Adopted Budget to authorize the City to expend these funds.
Attachment 1 to the proposed legislation is the revised 2012 Annual Allocation Plan, which is the vehicle the City uses to inform HUD and the public about the specific uses of the Consolidated Plan funds. Attachment 2 to the proposed legislation contains the updated 2011 Allocation Plan, reflecting the increase in the 2011 ESG.
The bill also changes the policy regarding use of Section 108 program income. The accumulated income from loan fees will now be allowed to be used for general CDBG program expenditures rather than being restricted to Section 108 program activities.
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
Appropriations:
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Fund Name and Number |
Department |
Budget Control Level* |
2012 Appropriation |
2013 Anticipated Appropriation |
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CDBG Main Fund (17810) |
Human Services Department |
CDBG - Human Services (6HSD10) |
($330,345) |
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CDBG Main Fund (17810) |
Executive |
CDBG - Office of Economic Development (6XD10) |
($74,929) |
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CDBG Main Fund (17810) |
Executive |
CDBG – Office of Housing (6XZ10) |
$100,000 |
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Low Income Housing Fund (16400) |
Executive |
Low-Income Housing Fund 16400 (XZ-R1) |
($1,310,054) |
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Human Services Operating Fund (16200) |
Human Services Department |
Transitional Living and Support (H30ET) |
$755,797 |
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General Subfund (001000) |
Office of Economic Development |
Office of Economic Development (X1D00) |
$108,190 |
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TOTAL |
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($751,341) |
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*See budget book to obtain the appropriate Budget Control Level for your department.
Appropriations Notes:
The decrease in appropriations in the CDBG Main Fund is a combination of a decreased 2012 entitlement award from HUD and the authority to spend unanticipated increased 2012 program income and recaptured funds from prior program years. The increase in the Human Services Operating Fund (16200) is the result of increases in the 2012 HOPWA and ESG allocations and the increase in the 2011 ESG allocation.
Anticipated Revenue/Reimbursement: Resulting from this Legislation:
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Fund Name and Number |
Department |
Revenue Source |
2012 Revenue |
2013 Revenue |
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CDBG Main Fund (17810) |
Community Development Block Grant |
U.S. HUD / CDBG Program |
($932,485) |
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CDBG Main Fund (17810) |
Community Development Block Grant |
Program Income (including S108) and recapture exceeded estimates |
$1,061,835 |
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CDBG Main Fund (17810) |
Executive |
Program income from Office of Housing Multifamily Lending Program |
$100,000 |
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Low Income Housing Fund (16400) |
Executive |
U.S. HUD / HOME |
($1,310,054) |
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Human Services Operating Fund (16200) |
Human Services |
U.S. HUD / 2012 ESG |
$349,437 |
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Human Services Operating Fund (16200) |
Human Services |
U.S. HUD / 2011 ESG |
$297,592 |
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Human Services Operating Fund (16200) |
Human Services |
U.S. HUD / HOPWA |
$108,768 |
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TOTAL |
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($324,907) |
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Revenue/Reimbursement Notes:
Total Regular Positions Created, Modified, or Abrogated through this Legislation, Including FTE Impact: N/A
Do positions sunset in the future? N/A
Spending/Cash Flow: N/A
What is the financial cost of not implementing the legislation?
This ordinance authorizes the receipt of over $17 million in federal funds for services to low- and moderate-income residents of Seattle. Failure to implement this legislation will result in the loss of numerous programs assisting Seattle residents.
Does this legislation affect any departments besides the originating department?
Yes, this legislation affects the Office of Housing (OH) and the Office of Economic Development (OED). Both of these departments are recipients of CDBG funds and OH is the recipient of HOME funds. OH and OED oversee programs that are funded by the resources they receive from HUD and both departments participated in the development of this legislation.
What are the possible alternatives to the legislation that could achieve the same or similar objectives?
There is no other alternative for the City to undertake in order to access these funds. The substantial amendment is a HUD requirement for these funds.
Is the legislation subject to public hearing requirements?
Yes, a public hearing must be held in conjunction with a 30-day public comment period. The comment period began approximately April 2 and will end approximately May 2, prior to action by the full Council.
Other Issues: N/A
List attachments to the fiscal note below: N/A