Fiscal Year 2008-09 Action Plan

Section 1 - Executive Summary

Neighborhood Housing and Community Development (NHCD) Office Mission:

To provide housing, community, small business, and economic development services to benefit eligible residents and businesses so they can increase their opportunities for self-sufficiency.

Federal law requires that housing and community development grant funds primarily benefit low- and moderate-income persons in accordance with the following U.S. Department of Housing and Urban Development (HUD) goals:

• Provide a suitable living environment
  This includes improving the safety and livability of neighborhoods; increasing access to quality facilities and services; reducing the isolation of income groups within areas by deconcentrating housing opportunities and revitalizing deteriorating neighborhoods; restoring and preserving natural and physical features of special value for historic, architectural, or aesthetic reasons; and conserving energy resources.
• Provide decent housing
  Included within this broad goal are the following: assist homeless persons in obtaining affordable housing; retain the affordable housing stock; increase the availability of permanent housing that is affordable to low- and moderate-income Americans without discrimination; and increase supportive housing that includes structural features and services to enable persons with special needs to live with dignity.
• Expand economic opportunities
  Within this goal are creating jobs accessible to low- and very low-income persons; providing access to credit for community development that promotes long-term economic and social viability; and empowering low-income persons in federally assisted and public housing to achieve self-sufficiency.

The City of Austin is required by law every five years to prepare a Consolidated Plan to receive federal funds from the U.S. Department of Housing and Urban Development (HUD). The Consolidated Plan combines in one report important information about Austin/Travis County demographics and economic activity as well as detailed information on the housing and job needs of its residents.

The Plan also includes comments from the public received during public hearings, stakeholder meetings and in writing.

All funding recommendations and programs operated with these funds were judged based on their ability to help the City meet the goals and priorities established in this Plan.

For each succeeding year, the City of Austin is required to prepare a one-year Action Plan to notify citizens and HUD of the City’s intended actions during that particular fiscal year. The Action Plan includes citizen and stakeholder input and is due annually to HUD by August 15.

The Action Plan is developed under HUD guidelines and serves as the application for the following four formula grant programs:

• Community Development Block Grant (CDBG)
• HOME Investment Partnerships (HOME)
• Emergency Shelter Grants (ESG)
• Housing Opportunities for Persons with AIDS (HOPWA)

The City of Austin chooses to include all funding sources in all of the HUD planning documents to increase opportunities for public input beyond federal requirements.

At the end of each fiscal year, the City must also prepare a Consolidated Annual Performance and Evaluation Report (CAPER) to provide information to HUD and citizens about that year’s accomplishments. This information allows HUD, city officials, and the public to evaluate the City’s performance and determine whether the activities undertaken during the fiscal year helped meet the City’s five-year goals and addresses priority needs identified in the Consolidated Plan. This annual performance report, prepared with public review and comment, must be submitted to HUD annually by December 31.

The Neighborhood Housing and Community Development Office (NHCD) is designated by the Austin City Council as the single point of contact with the U.S. Department of Housing and Urban Development (HUD), and lead agency for the grant administration of the CDBG, HOME, HOPWA, and ESG programs. The City designates NHCD to be the administrator of the CDBG and HOME programs. The City designates the Austin/Travis County Health and Human Services Department (HHSD) to be the administrator of the HOPWA and ESG programs.

As the single point of contact for HUD, NHCD is responsible for developing the five-year Consolidated and annual Action Plans, and the end of year report, the Consolidated Annual Performance and Evaluation Report (CAPER). NHCD coordinates these reports with the HHSD and the Community Development Commission (CDC).

NHCD was appointed by City Council as the lead agency for allocating local funding for affordable housing, including General Fund, Housing Trust Funds, General Obligation Bonds, and Housing Capital Improvement Funds. For convenience to citizens and community leaders and consistency in reporting, the City of Austin reflects these funds and accomplishments in HUD reports, including the annual Action Plan and CAPER.

The Community Development Commission (CDC) advises the Austin City Council in the development and implementation of programs designed to serve the poor and the community at large with an emphasis on federally funded programs. NHCD provides staff support for the CDC. According to the City’s Citizen Participation Plan adopted by the Austin City Council, the CDC holds public hearings on the Five-Year Consolidated Plan and the Annual Action Plan and makes recommendations to the Austin City Council on community needs. The CAPER and public comments are also presented to the CDC at one of the initial CDC public hearings of the proposed Action Plan.

The CDC is comprised of 15 members appointed by the Austin City Council. Seven members are nominated by residents from the following geographic areas: Colony Park, Dove Springs, East Austin, Montopolis, Rosewood-Zaragosa/Blackland, St. John, and South Austin.

The City of Austin allocates local revenue for housing, community development, and economic development activities. These sources include the General Fund, General Obligation Bonds, Housing Trust Funds, and Housing Capital Improvement Funds. In 2006, the citizens of Austin approved $55 million in general obligation bonds for affordable housing that will be spent over seven years. NHCD was appointed by Austin City Council as the lead agency for allocating these funds. For the convenience of its citizens and community leaders and consistency in reporting, the City of Austin reflects these funds and accomplishments in HUD reports, including the Annual Action Plan and CAPER.

HUD and City of Austin Allocation Process

Federal and City Requirements

Reports

The 5 Year Consolidated Plan develops the Annual Action Plan and contributes to the Annual Business plan required by the City.

City Requirements

The City's Business Plan is used to develop the Action Plan required by the Federal which contributed to the Annual Budget and the Consolidated Annual Performance Evaluation Report. These two documents go into the Annual Audit.

Process

First, Citizens of Austin provide input to the Community Development Commission, council and staff on reports.

Secondly, The Community Development Commission recommends reports with citizen input to the City Council.

Thirdly, The Austin City council authorizes submission of reports to HUD.

The the U.S. Department of Housing and Urban Development (HUD) approves the approves and allocates funds.

Meanwhile, the Austin City Council approved the Business Plan based on the five year Consolidated Plan.

And Finally the Austin City Council approves the Annual Budget based on the Annual Action Plan.

Method for Establishing Priorities

The citizens of Austin were instrumental in the development of the priorities in the Consolidated Plan for fiscal year 2004-09, which was the result of almost a year of activity by the City of Austin’s NHCD. In preparation, the City used the following methods to establish priorities in the Consolidated Plan:

• City staff drew on authoritative sources to provide a quantitative analysis of housing and community development needs.
• The City hired an independent consultant to evaluate impediments to fair housing choices and assess the needs of special populations.
• Staff conducted five public hearings at which more than 115 people testified.
• Staff held seven meetings with service providers from housing, elderly services, child care, youth services, fair housing, economic development, small businesses, neighborhood revitalization projects, housing authorities, and other government agencies.
• NHCD collected 1,029 citizen surveys and received 20 letters from the public during the written comment period on community needs.
• NHCD staff made several presentations to the public of all the data gathered during the four months of needs assessment activities.
• Program staff used this information to evaluate existing programs and project future demand and capacity in priority areas.
• Upon presentation of the draft Consolidated Plan, additional public comments were received at two public hearings and in 39 letters.

Staff used the market study to discuss priorities and understand general trends. The information received from various forms of citizen participation underscored the changes that occurred in the market. The priorities identified and recommendations included in the Consolidated Plan balance the public’s desire for current or new programs with existing commitments and funding realities.

Priorities for Funding

Given the input outlined above and the current funding reality, the City of Austin focuses its programs on serving the fundamental needs of the Austin community. These needs include housing through the various stages of the housing continuum, employment through small business development and commercial revitalization, and public services. A significant share of Austin’s CDBG funding is committed to debt service on three Section 108 loans for two existing public facilities, the Millennium Youth Center, the Austin Resource Center for the Homeless (ARCH), and revitalization of East 11th and 12th Streets.

HUD defines high priorities as those programs that are funded in a program year. Medium priorities are those dependent on available funding, and low priorities are those that will not be funded.

The following table outlines the priorities and strategies identified in the Consolidated Plan

Consolidated Plan Priorities for Fiscal Year 2004-09

Public Participation

The Action Plan is a one-year strategic plan that describes community needs, resources, priorities and proposed activities under certain federal housing and community development grant programs. The fiscal year 2008-09 Action Plan must show progress toward meeting the goals established in the Consolidated Plan 2004-2009. Austin’s Citizen Participation Plan (CPP), revised by City Council on January 29, 2004, outlines the following procedures for the Action Plan:

CPP Requirements for the Needs Assessment (before the release of the Draft Action Plan):

• NHCD will gather statistical data and input from citizens.
• The Community Development Commission will conduct a public hearing to receive citizen input on the City’s performance report for the preceding year and proposed Action Plan.
• The Austin City Council will conduct a public hearing to assess community needs.

The Community Development Commission (CDC) and the Austin City Council hosted public hearings to gather information from citizens on the community’s housing and economic development needs and priorities. These public hearings were advertised in local papers. In addition, outreach regarding these hearings was made possible through email groups, flyers, and housing authority residents as well as Web site postings.

Public Hearings on the Needs Assessment:

• City Council Public Hearing, Thursday, March 20th at 6:00 PM at the Austin City Hall, City Council Chambers, 301 W. Second St.
• Community Development Commission Public Hearing, Monday, March 31st at 6:30 PM at the Austin City Hall, Boards and Commissions Room, 301 W. Second St.

In addition to the public hearings, NHCD hosted an Economic Development Stakeholder Meeting on April 16, 2008, to gather community input on economic development activities for the Action Plan. This meeting was in response to recommendations made by the African American Quality of Life Initiative.

Public testimony and results from the hearings can be found in Section 6.

CPP Requirements for the Draft Action Plan:

• A Draft Action Plan will be available for public comment for 30 days.
• During the comment period, City Council will conduct a public hearing to receive public comment on the draft.
• The Community Development Commission will also conduct a public hearing to receive public comment on the draft.

Draft Action Plan Public Process:

• The 30 day public comment period from June 2, 2008, through July 2, 2008.
• City Council Public Hearing, Thursday, June 5th at 6:00 PM at the Austin City Hall, City Council Chambers, 301 W. Second St.
• Community Development Commission Public Hearing, Thursday, June 26th at 6:30 PM at the Austin City Hall, Boards and Commissions Room, 301 W. Second St.

The City of Austin received 82 comments on the Action Plan, from public hearings, a stakeholder meeting, and written comments. Details on these comments can be found in Section 6. City staff worked with the guidance of the Community Development Commission to address community comments related to the draft Action Plan. The following summarizes stakeholder concerns and how the issues were resolved in the final Action Plan:

Public Participation

City of Austin Public Participation
Program	Issue	Resolution
Housing Trust Fund	FY08-09 funding to Housing Trust Fund.	Austin City Council approved General Fund CIP Funds to give the Housing Trust fund an additional $1 M for FY08-09.
Architectural Barrier Removal	Proposed budget and number of households served.	Funds were reallocated to provide an additional $393,327 to serve the same number of households compared to FY07-08 (450 households).
Public Services (Elderly, Youth Tenants, Child Care)	Federal cuts in CDBG funding impacted partner agencies.	Funds were reallocated to provide level funding for public services.
Emergency Home Repair	Households served reflected cuts in services.	Draft Plan included typographical error in households served. Urban League has $1M to serve 475 households as in FY07-08.

Evaluation of Past Performance

City of Austin Annual Goals and Accomplishments
	Annual Goal for Fiscal Year 2006-07 from Consolidated Plan	Annual Goal for Fiscal Year 2006-07 from Action Plan	Fiscal Year 2006-07 Accomplishment
Housing	7,724	10,534	21,202
Community Development	37,056	37,226	49,824
Total Households	44,780	47,760	71,026

(Note from HTML Web editor: The following chart of strategies was not retained when the document was converted to text for the process of coding it. I am re-typing it and will try to re-capture it as accurately as possible)

Housing Strategies, Five Year Goals and Accomplishments

OVERALL GOAL: Assist over 40,000 eligible households with services that lead to self-sufficiency annually by 2009 as measured by:

Consolidated Plan Housing Goal: Over 6,000 households will gain and/or retain housing annually using the following strategies:

Consolidated Plan Stratgies
Strategy A. Provide housing services through a continuum from homelessness to homeownership.
Strategy	Priority for Federal Funds	Type of Families	Accomplishments *					Proposed Accomplishments:Annual Goals in Consolidated plan		Funding **
			Actual FY 2004-05	Actual FY 2005-06	Actual FY 2006-07 in Action Plan	Actual FY 2006-07	% of 5-year Consolidated Plan Goal Accomplished	FY 2007-08	FY 2008-09
Strategy B. Owner -Occupied - Provide opportunities for households to retain their homes through rehabilitation and construction.
Owner-Occupied	High	Small Family/Large Family/Elderly/Disabled	1,050	913	850	918	61%	940	940	CDBG, HOME, HTF, HAF, LHCG
Strategy C. Homebuyer - Provide opportunities for households to retain their homes through rehabilitation and construction.
Homebuyer Assistance	High	Small/Large Family	220	135	251	83	32%	274	274	CDBG, HOME, GF, HTF, HAF, ADDI
Strategy D. Rental - Provide resources to non-profit housing developers to construct S.M.A.R.T.™ rental units and rehabilitate existing rental units.
Rental	High	Small/Large Family/Elderly/Disabled	284	270	271	294	61%	275	275	CDBG,HOME, HTF, GF
Strategy E. Assisted - Provide resources to eligible households to access or retain affordable rental units.
Assisted	High	Homeless: people with HIV/AIDS	613	614	610	520	47%	749	749	HOME, HTF, HOPWA
Public Housing	N/A	All types of cost-burdened housing	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Strategy F.Transitional - Assist eligible households in securing and non-profit organizations in creating limited-term housing and supporting services.
Transitional	High	There are no programs that are strictly transitional	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Strategy G.Emergency and Homeless Shelters - Assist eligible persons in securing and non-profit organizations in creating emergency shelter and homeless shelter opportunities and supportive services.
Emergency Homeless Shelter	High	Homeless, chronic homeless	6,220	9.772	5,742	11,341	236%	2320	2320	ESG
Sub-Total			8387	11,704	7.724	13,156	71%	4,558	4,558
Strategy H.Other funded Projects.
S.M.A.R.T.™	N/A		1,725	1,692	1,750	1,470	65%	1500	1500	GF, EDI
Voluntary Compliance	N/A		2,576	1936	1000	5.390	N/A	1000	1000	GF-CIP
Bonds	N/A		227	33	60	253	65%	172	144	Tax Exempt Bonds
Hurricane Relief	N/A		N/A	N/A	N/A	922	N/A	N/A	N/A	FEMA
Holly Good Neighbor	N/A		N/A	N/A	N/A	11	N/A	N/A	N/A	Austin Energy
Sub-Total			4528	3661	2810	8046	196%	1672	1644
Total All Housing Programs			12915	15365	10534	21202	76%	6230	6202

* See fiscal year 2006-07 CAPER, Section 3, for explanation of why accomplishments differ from goals.

** See Section 2 for definitions of federal and non-federal funding sources.

*** At this time, any projects that are considered transitional are funded through the Rental Housing Development Assistance (RHDA) program and the accomplishments can be found there.

Community Development Strategies, Five year Goals and Accomplishments

Overall Goal: Assist over 40,000 eligible households woith services that lead to self-sufficiency annually by 2009 as measured by:

Consolidated Plan Community development Goal: Assist over 30,000 low-income households annually using the following strategies:

Stategy	Priority for Federal Funds	Type of Families	Accomplishments*					Proposed Accomplishments		Funding**
			Actual FY 2004-05	Actual FY 2006-07	Proposed FY 2006-07 in Action Plan	Actual FY 2006-07	Percent of 5-Year Consolidated Plan Goal Accomplished	FY 2007-08	FY 2008-09
Strategy A. Community Revitalization - Serve low-income households, small business, and housing non-profit organizations, and provide commercial space.
Community Revitalization	High	Low- to Moderate- Income	3,294	18	3306	1294	40%	3269	3269	CDBG/Section 108/GF
Strategy B. Small Business Development - Serve low-income households and small businesses.
Small Business Development	High	Small Business Owners	371	47	62	70	35%	261	258	CDBG/Section 108/GF
Strategy C. Public Services - Serve low-income households through the following activities:
Public Services (Neighborhood Revitalization)	High	Low- to moderate- income	39,567	45572	33858	48460	74%	33585	32209	CDBG/ GF
Public Facilities was designated as a Medium priority, which using HUD's definaition means that this category will not be funded unless there are funds available, at which time, there will have to be a reprogramming to re-prioritize this category as a high priority. There are projects in this cateogry that will be completed in future fiscal years, however, which were finded from fiscal year 2003-04.
Public Facilities	Medium	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Strategy C. Public Services - Serve low-income households through the following activities:
Infrastructure	Low	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
	>Total		42,232	45,637	37,226	49,824	70%	37,115	35,736

* See fiscal year 2006-07 CAPER, Section 3, for explanation of why accomplishments differ from goals.

** See Section 2 for definitions of federal and non-federal funding sources.

Outcome Performance Measures

The Department of Housing and Urban Development on March 7, 2006, issued the Notice of Outcome Performance Measurement System for Community Planning and Development Formula Grant Programs. This Notice describes the new required outcome performance measurement system for communities that receive formula grants. The City of Austin’s outcome performance measures will allow HUD to clearly demonstrate program results at the national level. The following chart describes the outcome performance measures for fiscal year 2008-09 for the City of Austin.

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Affordability

	Activity	Funding Source	HUD Objective	HUD Outcome
PROJECT PRIORITY: HOUSING
Housing Continuum Step: Homeless/Emergency Shelter Services
	Shelter Operation and Manintenance (ARCH)	ESG	Suitable Living Environment	Availability/ Accessibility
	Homeless Essential Serviuces (ATHHSD CDU)	ESG	Suitable Living Environment	Availability/ Accessibility
	Homeless Essential Services (HsgBenefits Spec / Chronic Homeless)	ESG	Suitable Living Environment	Availability/ Accessibility
	Housing Continuum Step: Assisted Housing	Tenant-based rental assistance	HOME, HTF	Decent Housing
	Rent, Mortgage, and Utility Assistance	HOPWA	Decent Housing	Affordability
	Project Transitions	HOPWA	Decent Housing	Availability/ Accessibility
	Permanent Placement Housing	HOPWA	Decent Housing	Availability/ Accessibility
Housing Continuum step:Rental Housing
	Rental Housing Development Assistance	HOME, PI (HOME), CDBG, PI (CDBG), HOME (CHDO), UNO, GF-CIP, GO Bonds, HTF	Decent Housing	Affordability
	Architectural Barrier Removal Program	CDBG	Suitable Living Environment	Availability/ Accessibility
	Anderson Hill Redvevelopment (Rental)	HOME	Decent Housing	Affordability
Housing Continuum Step: Homebuyer Services
	Downpayment Assistance	HOME, PI (HOME), ADDI	Decent Housing	Availability/ Accessibility
	Acquisition and Development	CDBG, HOME, CDBG Rev. Loan, GO Bonds, HOME (CHDO), PI (HOME)	Decent Housing	Affordability
	CHDO Capacity Building	HOME (CHDO)	Decent Housing	Affordability
	Anderson Hill Redevelopment (owner)	PI (HOME), PI (CDBG) ,HAF	Decent Housing	Affordability
Housing Continuum Step: Owner Occupied Services
	Architectural Barrier Program (owner)	CDBG, GF	Availability/ Accessibility
	Emergency Home repair Program	CDBG, GF	Decent Housing	Sustainability
	Homeowner Rehabilitation Loan Program	CDBG-Rev Loan, GF, HOME	Suitable Living	Sustainability
	Lead hazard Control Grant-Healthy Homes	lead hazard Control Grant-Healthy Homes	Suitable Livning Environment	Sustainability
	Material Grants Program *	HTF	Decent Housing	Sustainability
Housing Continuum Step: Other
	S.M.A.R.T.™ Housing	GF-CIP, EDI	Decent Housing	Affordability
	Holly Good Neighbor	Austin Energy	Suitable Living Environment	Sustainability
	Voluntary Compliance	GF-CIP	Suitable Living Environment	Availability/ Accessibility
	Single-Family Bonds	N/A	Decent Housing	Affordability
	Multi-Family Bonds	N/A	Decent Housing	Affordability
Project Priority
Small Business Development
	Community Development Bank	CDBG, GF	Creating Economic Opportunity	Availability/ Accessibility
	Microenterprise Technical Assistance	CDBG, GF	Creating Economic Opportunity	Sustainability
	Neighborhood Commercial Mgmt	CDBG, CDPG-Rev Loan, Section 108, GF	Creating Economic Opportunity	Sustainability
	Facade Improvement Program	EDI	Creating Eeconomic Opportunity	Sustainability
	Community Preservation and Revitalization	GF	Creating Economic Opportunity	Availability/ Accessibility
East 11th/12th Streets Revitalization
	Part 1 - Job creation	CDBG, Section 108	Creating Economic Opportunity	Sustainability
	Part 2- Micro-enterprise Assistance	CDBG	Creating Economic Opportunity	Sustainability
	Part 3- Financial Assistance to For-Profits	CDBG. Scetion 108	Creating Economic Opportunity	Affordability
	Part 4- Acquisition of Real Property	CDBG	Creating Economic Opportunity	Sustainability
	Part 5- Non-residential Historic Preservation	CDBG	Creating Economic Opportunity	Sustainability
	Part 6-Parking Facilities	CDBG	Creating Economic Opportunity	Sustainability
Neighborhood Revitalization (Public Services)
	Child Care Services	CDBG, GF	Suitable Living Environment	Availability/ Accessibility
	Tenants' rights Assistance	CDBG, GF	Suitable Living Environment	Availability/ Accessibility
	Housing Information and Referral	GF	Suitable Living Environment	Availability/ Accessibility
	Housing Smarts	HTF	Suitable Living Environment	Availability/ Accessibility
	Neighborhood Suppport Service	GF	Suitable Living Environment	Availability/ Accessibility
	Senior Services	CDBG, GF	Suitable Living Environment	Availability/ Accessibility
	Youth Support Services	CDBG + GF	Suitable Living Environment	Availability/ Accessibility

Neighborhood Housing and Community Development Office New Funding Sources

In fiscal year 2007-08, the City received $13.2 million from HUD through four formula grants. HUD estimates the City of Austin’s allocation for fiscal year 2008-09 to be $12.5 million. Funds are provided through four entitlement grants with amounts determined by statutory formulas: Community Development Block Grant (CDBG); HOME Investment Partnerships Program (HOME); American Dream Downpayment Initiative (ADDI), Emergency Shelter Grant Program (ESG); and Housing Opportunities for Persons with AIDS (HOPWA). Non-entitlement grants are secured by the City through a competitive process. In fiscal year 2008-09, City projects will also use the following previously awarded, multi-year, non-entitlement Federal sources: Section 108, Lead Hazard Control Grant, and Economic Development Initiative (EDI).

Federal Funds	New Funding
Community Development Block Grant (CDBG)	$ 7,374,683
CDBG Revolving Fund	$360,836
CDBG Program Income	$90,216
Subtotal CDBG Funds	$7,825,735
HOME Investment Partnership Program (HOME)	$ 4,099,641
HOME Program Income	$277,235
American Dream Down Payment Initiative (ADDI)	$ 41,137
Subtotal HOME Funds (includes ADDI)	$4,418,013
Section 108 Program Income	$306,473
Emergency Shelter Grant Program (ESG)	$328,238
Housing Opportunities for Persons with AIDS Program (HOPWA)	$987,000
Subtotal Federal Funds	$13,865,459
City of Austin Local Funding	Funding
Operating General Funds	$3,014,489
General Obligation Bonds	$10,500,000
S.M.A.R.T. Housing™Capital Improvement Fund (GF-CIP)	$550,000
Housing Trust Fund	$202,624*
University Overlay- Housing Trust Fund	$250,000
Subtotal City of Austin Local Funding	$14,517,113
TOTAL	$ 28,382,572

* The fiscal year 2008-09 budget includes reprogramming of fiscal year 2007-08 local GF-CIP dollars that will bring the Housing Trust Fund to the $1 million level.

(Note from Web Editor:This completes the sections that needed to be replicated.)

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