091515 neighborhoods housing and development …...no presentation is p lanned; however staff will...

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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, September 15, 2015 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 Kate Gallego, Chair

2 Review and Approval of the June 16, 2015 Neighborhoods, Housing and Development Subcommittee Meeting Minutes.

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Item 3 is for information only.

3. City of Phoenix Homeless Initiatives Update Provides an overview of recent accomplishments and activities helping to alleviate homelessness in the City of Phoenix for the period April through June 2015. This item is for information only.

Moises Gallegos, Human Services 1

Items 4 – 8 are for Consent Action. No presentation is planned; however staff will be available to answer questions.

4. HUD Annual Action Plan and CDBG RFP Request the Subcommittee recommend City Council approval of the process for the 2016-17 HUD Annual Action Plan and the process for the 2016-17 Community Development Block Grant Request for Proposals for Public Service and Public Facilities projects. This item is for consent.

Chris Hallett, Neighborhood Services Page 15

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5. Guiding Star Loan Agreement Request the Subcommittee recommend City Council approval to amend loan agreement with Native American Connections, Inc. for the Guiding Star property to allow UMOM to take title, manage the property and assume associated rights and responsibilities. This item is for consent.

Cindy Stotler, Housing Page 17

6. 2016 HUD Family Self-Sufficiency Grant Retroactive request of the Subcommittee to recommend City Council approval to apply for, accept and disburse 2016 HUD Family Self-Sufficiency Grant. This item is for consent.


7. HUD Application Conversion – Scattered Sites Housing Program Request of the Subcommittee to recommend City Council approval to convert the Housing Department’s Scattered Sites disposition application from Section 18 to a Section 32 application, as recommended by HUD. This item is for consent.

Cindy Stotler, Housing 1

8. Historic Preservation Demonstration Project Bond Funds – First Baptist Church Request Subcommittee to recommend City Council approval to allocate Historic Preservation Demonstration Project Bond Funds for First Baptist Church roof restoration in the amount of $82,156. This item is for consent.

Alan Stephenson, Planning & Development Page 23

Item 9 is for information and discussion.

9. Update on Reinvent PHX Pre-Development Grant Provides an update on the $500,000 Predevelopment Assistance/Design Phase Assistance included in the Reinvent PHX HUD grant. Item requested by Chairwoman Gallego. This item is for information and discussion.

Alan Stephenson, Planning & Development Page 25

Item 10 is for information, discussion and possible action

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10.

Affordable Housing Development HOME/CDBG Call for Interest and Priorities Request the Subcommittee recommend City Council approval of the annual call for interest process and priorities for HOME- and CDBG-funded affordable housing development projects. This item is for information, discussion and possible action.


11. 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.

Kate Gallego, Chair

12. Adjournment Kate Gallego, Chair

For further information, please call Michael Hammett, City Manager’s Office, at 602-495-7195 or Nick Valenzuela at 602-534-9222. 7-1-1 Friendly 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 Michael Hammett at 602-495-7195 or Nick Valenzuela at 602-534-9222 as early as possible to coordinate needed arrangements. 7-1-1 Friendly Subcommittee Members Councilman Sal DiCiccio Councilwoman Laura Pastor Councilman Daniel Valenzuela Councilwoman Kate Gallego, Chair

September 15, 2015

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Phoenix City Council

Neighborhoods, Housing and Development Subcommittee Summary Minutes

Tuesday, June 16, 2015

1st Floor Atrium Assembly Rooms A, B, and C 200 West Washington Street Phoenix, Arizona Subcommittee Members Present Subcommittee Members Absent Councilwoman Kate Gallego, Chair None Councilwoman Laura Pastor Vice Mayor Daniel Valenzuela Councilman Sal DiCiccio Staff Present Staff Present Public Present Public Present Rita Marko Deanna Jonovich Rita Marko Tracee Crockett Gabriel Morales Chris Hallett Alan Stephenson Sandra Hoffman Michael Hammett Stephanie Romero Danny Seville Robin Anderson Dominic Papa

Karl Matzinger Angela Duncan Nicole Ayoola RoseMarie Harvoth William Emerson Lynda Dodd Kweilin Waller Hayley Steele Helen Stoddard Katherine Coles Amanda Griffin Keon Montgomery Michelle Zazueta-Bonow

Billy Shields Veronyka Lockhart Gene C. Blue Dan Klocke Linda Pollack Tom Hester Patrick Panetta Silvia Urrotia Rev. Reginald D. Walton Ericka Varela Rev. Jarrett Maupin Nancy Miller Sheila Harris Craig Tribken

Brian Greathouse Luz Camacho Shoko Taguchi Zach Johnson Ben Shink Paul Lopez Tom Pomeroy Bill Timmaus Tom McLinley Jamie Rothschild Calvin C. Goode Larry Lazarus Don Keuth

1. Call to Order

Chairwoman Gallego called the meeting to order at 10:07 a.m.

2. Review and Approval of the May 19, 2015 Neighborhoods, Housing and Development Subcommittee Meeting Minutes Councilwoman Pastor moved to approve the minutes from the May 19, 2015 Subcommittee meeting. Vice Mayor Valenzuela seconded the motion, which passed unanimously.

3. Requirements for Maintenance Improvement Districts on Subdivision Plats

4. Neighborhood Economic Development Operation Patch and Paint Recipient Councilwoman Pastor moved to approve consent items 3 and 4. Councilman DiCiccio seconded the motion, which passed unanimously.

5. Walkable Urban Code – Reinvent PHX (Z-TA-8-09) Planning and Development Director Alan Stephenson introduced Deputy Planning and Development Director Sandra Hoffman. Mr. Stephenson provided a summary of the Walkable Urban Code (WU Code), noting it was established as a development mechanism

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for the Transit Oriented Districts (TODs). He added that the Code would not change zoning standards until approved by the City Council. He also provided a summary of the public input process associated with the WU Code.

Ms. Hoffman reviewed development standards included in the WU Code, as well as staff and Design Review Committee flexibility standards, noting variance from the development standards would need to be thoroughly documented. She provided an implementation schedule, reiterating City Council would need to approve the Code before it could be implemented. She also stated that staff would need to perform thorough analysis on properties in the TODs to determine where to move forward with rezoning.

Former Councilman Calvin Goode stated he is opposed to the WU Code. Mr. Goode provided documents describing the potential impact of the WU Code on the Eastlake Neighborhood.

Councilman DiCiccio asked if there is anything included in the WU Code that changes building height. Mr. Stephenson provided clarity on the aspects of the WU Code as it pertains to building height. Former Councilman Goode expressed concerns with proposed development in the Eastlake Neighborhood, adding that he believes this type of development will push people out of the neighborhood. Councilwoman Pastor asked for clarification on the zoning standards for the Eastlake Neighborhood. Mr. Stephenson stated that transit-oriented development was adopted for this area, adding that the WU Code will change zoning ordinances for the TODs, including Eastlake. Councilwoman Pastor asked if property owners could opt-out of changing their zoning. Mr. Stephenson stated property owners could opt-out. Chairwoman Gallego asked if the Central City Planning Commission would be involved in the zoning process. Mr. Stephenson stated they would be involved. Patrick Panetta stated he is in favor of staff’s recommendation, adding he supports the flexibility provided to staff in the WU Code. Billy Shields stated he is support of the staff’s recommendation. Larry Lazarus provided an overview of the area in the Eastlake Neighborhood, where development is being proposed. He noted that increased population density is the goal of the Transit Oriented Districts. He added that development needs to be evaluated on a case- by-case basis. Sean Sweat stated he supports the WU Code; however, he has a concerns with section 13 regarding staff flexibility. He stated the variance process lacks the transparency that would typically be seen with the zoning hearing process. He stated that he believes developers have the ability to appeal the standards of the Code; however, the community does not have the ability to appeal the variances. He asked that staff flexibility be removed from WU Code. Councilwoman Pastor asked if the variance process in the WU Code provides the community with the ability to appeal. Mr. Stephenson stated the Code does not include an appeal process.

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Councilman DiCiccio stated that he is favor of staff flexibility as it will allow developers to develop in more challenging areas, such as in center city. He added businesses will be driven away if there is no flexibility provided in the WU Code.

Chairwoman Gallego asked for staff to ensure that communities, such as the Eastlake Neighborhood, are included in the discussion regarding zoning and development. Mr. Stephenson stated that staff would gladly speak to residents in communities, such as Eastlake. He added staff could provide a yearly review to the Subcommittee to discuss the flexibility in the WU Code. Linda Pollock stated she is in favor of staff’s recommendation. Reverend Jarrett Maupin stated he is concerned with the lack of community input on development variances associated with the WU Code. He stated he is also concerned with previous redevelopment initiatives in the Eastlake Neighborhood. Reginald Walton stated he is opposed to the WU Code, adding he believes there were inconsistencies with the information shared with the neighborhood regarding the WU Code. Chairwoman Gallego asked for clarification on the aspects of the Transit Oriented Districts regarding building height. Mr. Stephenson provided clarification. Don Keuth, Mark McKinley, Marcie Rosenburg and Shannon Skutari submitted comment cards in favor of the WU Code. Councilman DiCiccio reiterated the importance of staff flexibility provided in the WU Code. Councilwoman Pastor asked if changes could be made to the WU Code before it is presented to the City Council. Mr. Stephenson stated that changes could be made. Councilwoman Pastor moved staff recommendation with the following modifications: staff shall bring the WU Code back to Subcommittee within 12 months of the implementing the Code to present on the 20 percent staff flexibility provision that is used as well as any other WU Code provision. She added that Section 13.d.1 shall add the language “landscaping, parking, glazing, and blank wall treatments” at the end of the sentence. She noted these changes will give the Design Review Committee the same flexibility as staff. She added that all WU Code references to staff flexibility shall be changed from a maximum of 25 percent to 20 percent. She also asked for Section 13.0.5 to change minimum stoop door well area to 24 square-feet from 36 square-feet due to feedback from the community. Vice Mayor Valenzuela seconded the motion. Councilman DiCiccio stated he would like to be briefed on the WU Code more frequently. He added he would like to meet with community members to understand their concerns regarding the Code. The motion passed unanimously.

7. Authorization to Enter Into Agreements with Gorman & Company for Choice Neighborhoods Co-development Item 7 was taken out of order. Housing and Development Director Karl Matzinger introduced Deputy Housing Director Angela Duncan. Mr. Matzinger stated the Subcommittee would be provided an update on the co-development of the City’s public housing units, as well as the U.S. Department of

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Housing and Urban Development (HUD) Choice Neighborhoods Planning Grant (CN). He provided an overview of the public housing services provided by the department. He also provided information describing the challenges associated with some public housing units, which are between 50 and 70 years old. Mr. Matzinger provided an overview of CN, noting the grant project focuses on the East Asset Management Project (AMP) public housing community and Edison Park Neighborhood. Ms. Duncan provided an overview of the Request for Proposals (RFP) process for a co-development partner for CN, noting the review panel selected Gorman and Company as the best and most responsive proposer. She provided a history of Gorman and Company, adding they have experience with CN. Mr. Matzinger noted staff’s request: Subcommittee approve the award of Gorman as the City’s co-development partner for the planning process and submittal of the CN planning grant and expend up to $250,000 of affordable housing to complete these next couple of phases in this process. Councilman DiCiccio asked that the recommendation require staff to work with the non-profit community during the implementation and administrative processes for the grant. Chairwoman Gallego asked if this would exclude the for profit community. Councilman DiCiccio noted that the nonprofit community is critical and that the for-profit community is involved in this project as the developer. Mr. Matzinger noted that the City looks at ways to engage the nonprofit community in services provided in public housing. While service levels for this project will be developed through the planning and implementation phases, Mr. Matzinger stated that the City is required to involve community partners – both for-profit and nonprofit – throughout the planning process for the grant. Mr. Matzinger shared the example of the Matthew Henson project, which includes 50 community organizations that provide support and assistance through the resident services team to outreach to and assist residents and the community at large. Councilwoman Pastor asked if the CN requires recipients to engage the nonprofit community. Mr. Matzinger stated the CN requires applicants to involve the nonprofit community. He further clarified that if the City is successful in receiving the planning grant the City will go through an 18- to 24-month process, bringing in as many stakeholders, nonprofits, and for-profit partners to develop a neighborhood transformation plan. Zach Johnson provided background about Gorman and Company. He noted the involvement of nonprofits and the inclusion of supportive services is essential in implementing a transformation plan, adding community stakeholders will be included in the process.

Councilwoman Pastor asked for clarification on the entities with which Gorman and Company partners. Mr. Johnson listed a number of groups with whom the company has partnered on projects throughout the Valley. Chairwoman Gallego asked for clarification on the financial implications of requiring nonprofit involvement.

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Councilman DiCiccio stated there wouldn’t be any as the item being discussed is the development of the proposal. He stated that he is suggesting the planning grant proposal require the City to include nonprofits in the planning, implementation, support services and administration of the CN grant. Chairwoman Gallego asked if any money would be expended as a result? Councilman DiCiccio stated there would not. Councilwoman Pastor affirmed her understanding that the CN grant requires partnerships. She further stated that her understanding of the requirement that Councilman DiCiccio recommended did not entail funding. Councilman DiCiccio affirmed that it would not require funding, but require nonprofits to come together to work as a team. Councilman DiCiccio stated that he would like a motion with language that states the City is “required to partner with” non-profit organizations. Former Councilman Craig Tribken stated that he represents Arizona Shelter Services and Arizona Housing Inc. He provided clarification on CN, noting that this grant is focused on the planning process for redevelopment. He added this process is necessary to compete for an implementation grant, which provides funding to complete the elements of the plan. He noted non-profits will be included throughout the planning and implementation process. Reid Butler asked for clarification that the item being voted on concerns the planning grant and that the implementation would involve another procurement process. Mr. Matzinger stated the RFP was for a co-developer that would be involved during the planning and implementation processes. Councilwoman Pastor moved to approve staff’s recommendation, adding that applicants will be required to partner with public and private agencies, organizations, and individuals to gather and leverage the financial and human capital resources for the planning and implementation of process associated with the Choice Neighborhoods Grant. Vice Mayor Valenzuela seconded the motion, which passed unanimously.

6. Customer Service Improvements Chairwoman Gallego noted Subcommittee members had an opportunity to review the information in the packet. She asked the Subcommittee to straight to a motion. Councilwoman Pastor moved to approve staff’s recommendation. Chairwoman Gallego seconded the motion, which passed unanimously.

8. Graffiti Free Phoenix Efforts Plans

Neighborhood Services Director Chris Hallett provided the history of the Graffiti Buster program, noting it has been operating for 25 years. He added the program has received national and international recognition. Mr. Hallett thanked the Graffiti Task Force, Chaired by Councilman Nowakowski, for their support and the implementation of several initiatives, such as Graffiti Awareness Month. He added the Task Force has asked other departments to be engaged in reporting graffiti throughout the community.

9. Cities of Service “Love Your Block” Action Report Citywide Volunteer Coordinator Michael Hammett introduced AmeriCorps Vista members Helen Stoddard and Haley Steele, noting that they will be assisting with the implementation of the City’s Love Your Block initiative.

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10. Future Agenda Items Chairwoman Gallego requested a discussion regarding donation containers for a future agenda.

11. Call to the Public No comments

12. Adjournment Chairwoman Gallego adjourned the meeting at 11:55 a.m.

Respectfully submitted, Gabriel Morales Management Intern

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Neighborhoods, Housing and Development Subcommittee, September 15, 2015, Item 3

CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Moises Gallegos

Human Services Director

SUBJECT: QUARTERLY HOMELESS UPDATE APRIL - JUNE

This report provides the Neighborhoods, Housing and Development Subcommittee with an update on accomplishments and activities between April 1 and June 30, 2015, which are helping to alleviate homelessness in the City of Phoenix. THE ISSUE City of Phoenix initiatives continue to utilize the Housing First model, targeting the highest priority populations including homeless veterans, chronically homeless families and individuals, and homeless youth. The main strategies include: Managing to the Numbers The region continues to address chronic homelessness through a focused collaborative effort. As of June 30, 2015, 984 chronically homeless households, including 833 single individuals, 237 of whom were veterans, and 151 families were housed. The Maricopa Regional Coordinated Access System began operation at the Family Housing Hub (FHH) in August 2014. The FHH serves as the central point of entry for families into the continuum of homeless services. Through July 2015, the FHH fielded 20,319 calls and engaged 1,651 families. Of those families, 315 (19 percent) were referred to more appropriate services and only six percent of those individuals returned to the FHH for homeless services. The Human Services Campus Welcome Center (WC) is the central Coordinated Access site for singles. In February 2015, the WC expanded its hours, 6:00 a.m. to 9:00 p.m., and changes were made to campus policy to require clients accessing the dining hall to have a campus ID. These changes served to significantly increase the number of individuals assessed through the center from 4,423 in all of 2014 to 3,797 in the first three months of 2015. From April to June, 17.7 percent (856 individuals) of all clients seen (4,834 individuals) were either diverted to appropriate housing or other non-homeless living situations without additional need for Campus resources. An additional 7.8 percent (378 individuals) were connected to crisis services. An additional 2,603 individuals were connected with emergency shelter through Central Arizona Shelter Services (CASS) or the overflow facility operated by the Lodestar Day Resource Center (LDRC) and St. Vincent de Paul (SVdP).

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Starting in Our Own Backyard In December 2012, the Housing and Human Services Departments (HSD) issued a Request for Proposals (RFP) for housing and supportive services using the “Housing First” model. Through the RFP, the Housing Department issued 75 Section 8 vouchers to seven non-profit providers specializing in assisting homeless populations. HSD provided funding for wrap-around support services to augment the vouchers and help families reach sustainability. Through July 31, 2015, 66 households have leased housing units through the program and eight were in process. Community Engagement MROP Partnership: Through collaboration between the Phoenix Police Department (PD), City Prosecutor’s Office, and HSD the Misdemeanor Repeat Offender Program (MROP) provides services, which both reduce crime and address core issues of homelessness. Through June 2015, 2,617 offenders had been identified by the PD. Of those, 364 individuals were entered into the tracking system during the quarter, allowing patrol officers access to their history to assist them when they were encountered on the street. The City Prosecutor’s Office has worked with 47 individuals through enhanced prosecution efforts, and 15 individuals have received case management services through HSD or Southwest Behavioral Health. Homeless Engagement: In May 2015, the Homeless Programs (HP) team began working on a collaborative model to address homeless encampments. A flow chart for MROP and an Encampment Service model was developed and has served as a visual aid for staff encountering such issues. HP staff adjusted their schedules to accommodate encampment activity and through the collaborative efforts more than 40 campsites have been visited and more than 160 individuals have been engaged by PD, HSD and Neighborhood Services Department staff. Men’s Overflow Shelter (MOS) Transition: The Maricopa Funders Collaborative to End Homelessness (Funders Collaborative), which includes Maricopa County, Arizona Department of Housing (ADOH), Valley of the Sun United Way (VSUW), Arizona Department of Economic Security (DES) and City of Phoenix (COP), continued to work intensively during the fourth quarter to improve the delivery and efficacy of temporary and emergency shelter services provided by CASS and partnering agencies at the Maricopa County Human Services Campus. In preparation for closing the MOS and adjacent parking lot, the Funders Collaborative partnered to reduce the overflow shelter census through the implementation of multiple Housing First interventions. The first reduction was achieved by the HSD HP team, which directly housed more than 40 individuals through rapid rehousing (RRH) and support services. Other recent accomplishments related to RRH include:

• Providers hired and trained new case management staff. • Essential collective best-practice RRH training was completed. • Cross-training related to policies and procedures with HOM, Inc., contracted to

provide rent and utility administration/payment, was completed to ensure consistency across subcontractors.

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• Housing briefing sessions were held for providers to understand the details involved with the rental process for clients and homeless individuals were briefed prior to looking for apartments.

• Start-up boxes with household goods for tenants were ordered and delivered. • Engagement of the first 100 individuals from an eligibility list created from the

pool of potential individuals was completed. • Providers began to access clients in creative ways and to collaborate with other

community partners to engage and find clients from the eligibility list. • The majority of women and men were offered indoor shelter while awaiting

paperwork collection. • First woman was housed the last week of July. • A new source of County utility assistance was secured and policies were put in

place. • Focus Strategies, a national consultant was secured to provide technical

assistance and evaluation of the program. VSUW is covering the total cost of $68,260. The technical assistance will ensure a strong program design, initiate effective data collection and analysis practices, and reinforce the use of best practices in training and evaluation. The formal Evaluation of the program will allow course-correction as needed and allow the lessons learned in the first year for future use in the Valley and in the national conversation about intervention approaches for single individuals. There is a current dearth of evidence relation to RRH and singles, and we are excited to help the work not only here in our own community, but in nationwide efforts as well. We look forward to presenting these findings to you at the close of the program year.

Phoenix’s commitment to end homelessness is evident in its significant investment in this initiative. In addition to the continued allocation of general funds and Emergency Solutions Grant funds to support homeless individuals and families in Phoenix, City Council prioritized approximately 275 Housing Choice Vouchers for chronically homeless individuals, which have been allocated to the permanent supportive housing projects described above. Further, the Phoenix Industrial Development Authority allocated $1,000,000 of the $2,500,000 needed for RRH for up to 250 individuals. RECOMMENDATION This item is for information only.

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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Chris Hallett

Neighborhood Services Director

SUBJECT: 2016-17 ANNUAL ACTION PLAN PROCESS AND CDBG REQUEST FOR PROPOSALS

This report requests the Neighborhood, Housing and Development (NHD) Subcommittee recommend City Council approval of the process for the 2016-2017 Consolidated Plan Annual Action Plan, and the Community Development Block Grant (CDBG) Request for Proposals (RFP) process. THE ISSUE The 2016-2017 Consolidated Plan Annual Action Plan examines housing and community development conditions and needs in the City of Phoenix, and defines strategies for addressing those needs throughout the year. The Consolidated Plan contains the planning and application requirements of four major U.S. Department of Housing and Urban Development (HUD) programs that provide critical funds to entitlement cities like Phoenix every year. The four fund sources are: the Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), Emergency Solutions Grants (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). Through adoption of the 2015-2020 Consolidated Plan in May 2015, the City Council approved general strategies and priorities for these programs. Each year a Consolidated Plan Annual Action Plan is developed that details how funds will be spent in the coming year. The CDBG RFP for Public Services and Public Facilities program is an important element of the HUD-required Consolidated Plan Annual Action Plan. Staff is also requesting the NHD Subcommittee recommend City Council approval of the funding priorities and process for this year's CDBG RFP. The specific amount of funding to be received from HUD for 2016-2017 has not yet been decided by Congress. Any significant changes in funding allocations could result in changes or adjustments in staff’s recommendations. OTHER INFORMATION Annual Action Plan Process Staff will schedule several HUD-required public hearings to assess community needs in Phoenix. Staff anticipates residents and neighborhood leaders will provide testimony regarding housing, homelessness, social services, and community development needs

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for the coming year. Residents who are unable to attend the public hearings will have the opportunity to submit their comments via e-mail or voicemail. This information, along with a needs assessment, will form the foundation of the 2016-2017 Annual Action Plan. A draft of the 2016-2017 Annual Action Plan will be available for an advertised 30-day public comment period in April 2016 before it is submitted to the City Council. The goal of the Annual Action Plan process, per HUD requirements, is to ensure comprehensive community planning, and coordinated service delivery to meet critical housing and community development needs. CDBG RFP Allocation Priorities for Public Services and Public Facilities The CDBG RFP process for Public Service and Public Facilities begins in October. Program allocation priorities are determined based on feedback received throughout the year and the Annual Action Plan process. Each year, the need for funding assistance far exceeds the availability of funding. More than 100 applications are submitted requesting more than $5 million in funding; due to CDBG reductions in recent years the City allocates less than $1 million toward these needs. The 2016-2017 RFP estimated allocation priorities are as follows: Public Services ($622,000 allocated in 2015-16):

• Enrichment Programs for Youth • Youth and Child Care Services • Support Services to Persons with Disabilities and Senior Support

Services • Neighborhood Revitalization Services

Public Facilities ($328,000 allocated in 2015-16):

• Targeted Geographic Areas or Citywide The tentative dates for the 2016-2017 Public Services and Public Facilities RFPs are as follows:

RFP Available October 19, 2015 Proposals Due November 30, 2015

The City Council will be asked to review and approve both the draft 2016-2017 Consolidated Plan Annual Action Plan and CDBG RFP allocations prior to the submission of the comprehensive 2016-2017 Consolidated Plan Annual Action Plan, which is due to HUD May 15, 2016. RECOMMENDATION Staff requests the NHD Subcommittee recommend City Council approval of the process for the 2016-2017 Consolidated Plan Annual Action Plan, and the CDBG RFP process.

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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Cindy Stotler

Acting Housing Director

SUBJECT: AMEND CDBG LOAN AGREEMENT WITH NATIVE AMERICAN CONNECTIONS, INC.

This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend City Council approval to amend the Community Development Block Grant (CDBG) Acquisition Loan Agreement, Contract No. 88014-0, with Native American Connections, Inc. (NAC) to allow UMOM New Day Centers, Inc. (UMOM) to take title and assume all rights and responsibilities under the CDBG Acquisition Loan Agreement. THE ISSUE On June 16, 1999, City Council awarded $500,000 in CDBG funding to NAC through a 20-year forgivable loan to acquire and rehabilitate the Guiding Star Treatment Center, located at 3424 East Van Buren. The property is currently used as a licensed residential substance abuse treatment facility for eligible women and their dependent children. NAC desires to sell the property to UMOM. UMOM wishes to purchase the property to use as an emergency homeless shelter for single women, which is consistent with the original intent of the Agreement. UMOM has agreed to assume all rights and responsibilities under the CDBG Acquisition Loan Agreement. OTHER INFORMATION The CDBG Acquisition Loan Agreement requires an affordability period of 20 years. All terms and conditions of the original agreement will remain unchanged under the new ownership. RECOMMENDATION Staff requests the NHD Subcommittee recommend City Council approval to amend the CDBG Acquisition Loan Agreement, Contract No. 88014-0, with NAC to allow UMOM to take title and assume all rights and responsibilities of the Loan Agreement.

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CITY COUNCIL REPORT

TO: Deanna Jonovich Deputy City Manager

FROM: Cindy Stotler Acting Housing Director

SUBJECT: FAMILY SELF SUFFICIENCY SERVICE COORDINATOR GRANTS FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Staff requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend retroactive City Council approval to apply for and accept combined Public Housing and Housing Choice Voucher (HCV) Family Self Sufficiency (FSS) Service Coordinator (SC) grants from the U.S. Department of Housing and Urban Development. THE ISSUE If awarded, the FSS SC grants will continue to fund case management services for families in the City’s public housing and HCV programs, assisting them in achieving economic independence from government assistance. If not funded, the program may be discontinued. The FSS SC grant would support three Caseworkers for one year, totaling $207,000. No matching funds are required. The Notice of Funding Availability was released on June 25, 2015 with a due date of July 27, 2015. The Housing Department submitted an application on July 21, 2015. Subcommittee and City Council approval was not obtained prior to submittal because the NOFA was not released until after the deadline to submit items for City Council approval in July, and was due before City Council’s return from summer recess. If City Council does not approve, the application will be withdrawn or the award declined (the award date is unknown). OTHER INFORMATION The FSS Program supports assisted-housing residents as they transition from dependence on government assistance to financial independence. During the five-year program, participants agree to actively engage with case managers to improve their financial status through education, job training and employment goals. Caseworkers work intensively with residents to eliminate barriers that may impede success to meeting their goals. The FSS program also offers a unique opportunity to build assets through an escrow savings account, which are awarded to the family upon successful completion of the program. RECOMMENDATION Staff requests the NHD Subcommittee recommend retroactive City Council approval to apply for and accept combined Public Housing and Housing Choice Voucher Family Self Sufficiency Service Coordinator grants from the U.S. Department of Housing and Urban Development.

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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Cindy Stotler


SUBJECT: CONVERSION OF SCATTERED SITES DISPOSITION APPLICATION

This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend City Council approval to convert the Housing Department’s Scattered Sites Section 18 disposition application to a Section 32 disposition application.

THE ISSUE

On November 19, 2014, City Council unanimously approved the submission of an application to the U.S. Department of Housing and Urban Development (HUD) to dispose of 50 distressed single family homes in the City’s Scattered Sites public housing program through HUD’s Section 18 program. After review, HUD has indicated it will not approve a Section 18 plan, but instead recommended the disposition move forward under the Section 32 program. Through Section 32, homes are rehabilitated and sold only to families earning less than 80 percent of area median income; the homes remain subject to affordability restrictions for a period of ten years.

The Housing Department currently operates a Section 32 program for approximately 12 sites. Twenty percent of the purchase price of each site is provided in the form of a no-payment loan, which is progressively forgiven over a period of 10 years. If approved, the 50 homes previously designated for Section 18 by the City Council (Resolution 21266) will be added to this Section 32 program.

OTHER INFORMATION

The sale of these homes will generate approximately $4 million. Proceeds from the sale will be used to support the HUD public housing program as required by federal regulations. In addition, the conversion of these sites to Section 32 will save approximately $100,000 per year in unreimbursed maintenance costs.

Following the disposal of the 12 existing sites currently eligible for sale, and the additional 50 sites from this application, the City will have 342 homes in scattered sites.

RECOMMENDATION

Staff requests the NHD Subcommittee recommend City Council approval to convert the Housing Department’s Scattered Sites Section 18 disposition application to a Section 32 disposition application.

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CITY COUNCIL REPORT

TO: Mario Paniagua

Deputy City Manager

FROM: Alan Stephenson

Planning & Development Director

SUBJECT: DEMONSTRATION PROJECT GRANT APPLICATION FOR HISTORIC FIRST BAPTIST CHURCH LOCATED AT 302 WEST MONROE STREET

This report requests the Neighborhoods, Housing and Development Subcommittee recommend City Council approval of a Demonstration Project grant of up to $82,156 for rehabilitation of the historic First Baptist Church, located at 302 West Monroe Street. THE ISSUE Constructed in 1929, First Baptist Church was listed on the National Register of Historic Places in 1982 and Phoenix Historic Property Register in 1995. The building is significant for its architectural style—Italian Gothic with Moderne influences—and for its progressive design, with an auditorium for religious events instead of a sanctuary, a stage with a proscenium arch and curtains replacing the altar, and individual seats rather than pews. The stuccoed brick building consists of two parts: the main four-story 1929 building and a two-story 1949 addition to the west. The most notable features of the building are a 105'-tall corner bell tower and a large cast stone pointed arch and rose window centered on the south façade. Although the building was originally of substantial construction with high quality materials, finishes, and detailing, it suffered serious damage in 1984. A fire destroyed a number of significant interior features and quickly moved to the attic, resulting in the building’s Spanish tile roof collapsing into the auditorium. The roof structure over the west wing remained intact, while the bell tower's hipped roof was damaged such that it was eventually determined hazardous and its tiles had to be removed. Over the past three decades, exposure to the elements has caused further deterioration. To address the safety issues resulting from a damaged and compromised structural support system, several sets of bracing have been installed to support the exterior walls. In 1999, an Arizona Heritage Fund grant provided monies to partially rehabilitate the exterior of the building, including door and window repair and replacement. At present, the property owner, Abbey Historic Restoration Limited Partnership, is seeking a grant to complete Phase I of the rehabilitation of the church. The planned rehabilitation is occurring in three phases as part of a certified rehabilitation under the federal historic preservation tax credit program. Phase 1, "Structural Stabilization," includes the installation of micropiles and grade beams, the construction of new floors on levels 2 through 4 composed of composite concrete and steel decking, and roof repair and replacement. During Phase 2, "Functional Improvements and Core Upgrades," the building's plumbing, electrical and mechanical systems will be re-established. As part of this work, restrooms will be constructed, elevators installed, and

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additional staircases will be built to address egress and ADA requirements. The remaining interior walls will be repaired, as will the historic windows and doors needing repair. Once functional, the building will be marketed to find tenants for the spaces. Phase 3 will consist of improvements made to finish the leased spaces and customize them to individual needs. The first phase of the project began in November 2014 and is expected to be completed in June 2016. The requested grant will complete Phase 1 of the project including: 1) replacement of roof framing; 2) repair and replacement of clay tile roofing; 3) flat roof replacement; 4) roof utility deck; 5) bell tower plaster cornice and eave repair. Per contractors’ estimates included with the grant application, the total cost of these items is $147,880. The applicant is also requesting reimbursement for structural engineering expenses, which may constitute up to 10 percent of the total grant amount. With $16,431 in eligible engineering expenses, the total amount of eligible work is $164,311. Under the Demonstration Project Program, the City’s share of the eligible items is 50 percent or $82,156. In exchange for grant funds, the City will receive a 25-year conservation easement on the exterior of the building. The conservation easement will require that the historic character of the property be preserved, and that the property be insured and maintained in good condition. Staff will also require that 10 percent of the total grant be withheld until Phase 1 of the project is fully completed. OTHER INFORMATION The Historic Preservation Commission recommended approval of this item on August 17, 2015. RECOMMENDATION Staff requests the Neighborhoods, Housing and Development Subcommittee recommend City Council approval of a Demonstration Project grant of up to $82,156 for rehabilitation of the historic First Baptist Church, located at 302 West Monroe Street.

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CITY COUNCIL REPORT

TO: Mario Paniagua

Deputy City Manager

FROM: Alan Stephenson

Planning & Development Director

SUBJECT: UPDATE ON REINVENT PHX PRE-DEVELOPMENT GRANTS

This report provides an update to the Neighborhoods, Housing and Development Subcommittee on the Predevelopment Assistance associated with the Reinvent PHX Project. THE ISSUE Predevelopment Assistance Reinvent PHX Grant The City of Phoenix was awarded a $2.9 million grant from the U.S. Department of Housing and Urban Development (HUD) Office of Sustainable Housing and Communities to support the Reinvent PHX initiative. The purpose of the initiative was to create a new transit-oriented model for urban planning and development along the City’s light rail system. A total of $500,000 of the grant was reserved to provide competitive, matching predevelopment grants for transit-oriented development (TOD) projects that provide community benefits and serve as pilot projects that demonstrate best practices in design, building use and financing. On April 2, 2014, the City Council approved the evaluation criteria for the RFP that solicited transit oriented projects which met HUD requirements. A selection panel with representation from the City and private development, as well as a design professional reviewed and scored each proposal based on the evaluation criteria. The panel results were submitted to HUD which approved six projects for predevelopment awards and two alternates. After HUD approval, one of the six selected, The Roosevelt Housing Associates, withdrew their plans for a 47-unit affordable housing project at 2nd and Roosevelt Streets, reducing the total number of funded projects to five. Applicants were required to match a minimum of 50 percent of a project’s total predevelopment costs and be in compliance with all applicable HUD rules and regulations. Eligible expenses submitted were architectural, engineering, legal, environmental, and financial. The final breakdown for the five predevelopment assistance reimbursement awardees is as follows:

1. Virginia @ 3rd: A 74-unit affordable housing project at 333 East Virginia Avenue with supportive services and wellness center. Applicant: Native American Connections

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Reimbursed: $172,112.22

2. Van Buren Motel Adaptive Reuse: A rehabilitation and conversion of an old Travel Inn motel into a 90-unit affordable housing project at 3541 East Van Buren Street with supportive services. Applicant: Chicanos Por La Causa Reimbursed: $75,189.61

3. Union @ Roosevelt: An 80-unit mixed-use housing project located at the southwest corner of First Avenue and Roosevelt Street with tenant-ready commercial space. Applicant: Metrowest Development Reimbursed: $136,967.22

4. Central Station: A 400-unit mixed-use housing project located at the northeast corner of First Avenue and Van Buren Street (Public Transit Central Station) with integrated transit station, commercial space and co-working/business incubator space. Applicant: Smithfield Reimbursed: $105,730.95

5. Shipping Container Live/Work Space: A three-unit live/work artist project located at the southwest corner of Fifth and Roosevelt Streets made out of converted shipping containers. Applicant: Roosevelt Row Community Development Corp. Reimbursed: $10,000

OTHER INFORMATION This program provided significant assistance to each of the awardees that are in varying stages of project completion. Based upon the total match receipts submitted by the awardees, the $500,000 predevelopment assistance program resulted in more than $2 million in private investment. Each of the projects was awarded a specific dollar amount as well as an “up to” amount in the event that additional funding was available. Additional funding became available when two of the awardees did not submit sufficient eligible match expenses and, therefore, did not earn their full award amount. The two original alternate projects did not receive reimbursement as additional available funds were already allocated to the other projects. RECOMMENDATION This item is for information and discussion.

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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Cindy Stotler


SUBJECT: AFFORDABLE HOUSING DEVELOPMENT COMMUNITY PRIORITIES AND CALL FOR INTEREST PROCESS

This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend City Council approval of the Affordable Housing Loan Program’s Community Priorities and its Call for Interest process for the 2015-2016 HOME Investment Partnerships (HOME) Program and Community Development Block Grant (CDBG) competitive funding round. THE ISSUE On December 10, 2013, City Council approved the Affordable Housing Loan Program’s Underwriting Guidelines, including its Community Priorities (Priorities) that allow the City to proactively communicate housing needs to developers of affordable and/or special needs housing. The Priorities are designed to be narrow, targeting supportive housing projects to serve the most vulnerable, frail, and homeless populations, and assist low-income families in home-buying. The Housing Department recommends continuing these Priorities with the addition of a priority for projects submitted by non-profit Community Development Housing Organizations (CHDO). CHDOs are instrumental in providing affordable housing projects for the communities they serve. Additionally, the U.S. Department of Housing and Urban Development (HUD) requires at least 15 percent of the annual HOME allocation to be awarded to eligible CHDOs. The proposed Priorities are:

• Acquisition, rehabilitation, and/or new construction of properties that focus on homeless or special needs populations and provide appropriate services to assist and sustain these populations.

• Acquisition, rehabilitation, and/or new construction of properties where the developer qualifies as a CHDO as defined by the HOME Program.

• Rehabilitation of existing affordable properties, owned by non-profit developers and currently or previously funded by the City of Phoenix.

• Down payment, closing cost assistance for low- and moderate-income families at 80 percent of median income ($51,200 for a family of four).

The total allocation available for the 2015-2016 Call for Interest is approximately $4 million in HOME funding, of which $1.2 million must be awarded to CHDOs, and $2.5

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million in CDBG funding. This level of funding will allow for approximately four to five affordable housing project awards. The proposed Call for Interest will be available through the City’s website in early November 2015. A selection committee will be convened to review and prioritize proposed projects based on the established Priorities and on the criteria below. The committee will be made up of representatives from City departments and community partners with housing development expertise who are not competing for the funding. Criteria for selection will include the following:

• Developer Experience (90 points) – Capacity and prior experience of the organization, its staff members and consultants in planning and completing projects similar to proposed project; compliance in meeting the terms of existing City loan agreements and those of other affordable housing programs; ability to provide 10% of development costs through equity, grants or loans; property management experience of those who will manage the proposed property, including compliance with federally-subsidized units.

• Project Merits (240 points) – Soundness of concept and ability to partner with agencies that can deliver support services in a long-term manner; project need and relevant services for the special housing/population proposed; sustainability as demonstrated in energy efficient design, location near or on major transportation and/or near or in employment hubs, and proximity to amenities; construction and design; project readiness; supportive services plan with firm partner commitments and experience.

• Financial Feasibility (170 points) – Developed financing plan; funding commitments; mitigation of identified risks; leverage of City funds.

OTHER INFORMATION On August 20, 2015, the Housing Department held an Affordable Housing Development Community forum with more than 60 community stakeholders, including private developers, property management companies, and nonprofit community agencies. Information about the Call for Interest and the proposed added CHDO priority was presented at the meeting for comment. There were no adverse comments related to these items. RECOMMENDATION Staff requests the NHD Subcommittee recommend City Council approval of the Affordable Housing Loan Program’s Community Priorities and its Call for Interest process for the 2015-2016 HOME and CDBG competitive funding round.

091515 neighborhoods housing and development …...no presentation is p lanned; however staff will...

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