Title
Agenda Item:
Approval of Amended HOME Agreement
Body
Issue:
Should the City execute an Interlocal Agreement with Thurston County to document the governance of HOME funds, the Affordable Housing Program funds and the Homeless Housing Program Funds?
City Manager's Recommendation:
Move to approve and authorize the Mayor to sign an Amended HOME Interlocal Agreement with Thurston County.
Staff Contact:
M. Anna Schlecht, Housing Program Manager, 360.753.8183
Presenter(s):
Consent Calendar Item
Background and Analysis:
The HOME Investment Partnerships Program (HOME) is the largest federal block grant program that provides funds to States and local governments to create and maintain affordable housing for low-income families. Nationally, HOME Funds provide over $2 billion dollars each year to state and local governments.
Since 2003, Thurston County has been a HOME entitlement jurisdiction, operating an eight (8) member inter-jurisdictional body called the "HOME Consortium". The "HOME Consortium" governs the use of Thurston County's federal HOME funds along with two state recording fee fund programs - the "Affordable Housing Program" and the "Homeless Housing Program". The Thurston County HOME Consortium receives over $600,000 in HOME funds annually to support local affordable housing projects and programs.
Since 2003, this HOME Interlocal Agreement (ILA) has continued in force through Section IV "TERM OF AGREEMENT" C. which reads: "The agreement shall automatically be renewed for participation in successive three-year qualification periods unless a member provide written noticeĀ
.that it elects not to participate in a new qualification period".
The amendment of the agreement is necessitated by the expanded scope of the HOME Consortium to include Urban County CDBG funds. This expansion required the County to execute a new Amended HOME Consortium ILA with each of the six participating jurisdictions to allow for the governance of both the HOME and Urban County CDBG funds.
Olympia declined to be a part of the Urban County CDBG ILA in order to retain separate governance for City of Olympia CDBG entitlement funds. This requires the City of Olympia to sign a separate HOME funds-only amended ILA with the County to retain a seat on the HOME Consortium. This will allow the City of Olympia to have representation on the 8-member HOME Consortium which governs the HOME dollars. The other seven jurisdictions will govern the Urban County CDBG funds.
The attached "Amended HOME Interlocal Agreement" is specifically between the City of Olympia and Thurston County, documenting the governance of HOME funds, the Affordable Housing Program funds and the Homeless Housing Program funds. This ILA must be in place by June 30, 2013.
Options:
The City has the option of whether or not to sign the proposed "Amended HOME Interlocal Agreement." Following is a list of an initial list of potential implications for both options:
Not signing the HOME Interlocal Agreement:
- Allows Olympia's pro-rata share ($180,000) to revert back to the State's general pool of HOME funds. These funds will not be held for Olympia-only projects, they will be made available to any applicant from across the state.
- Would allow Olympia area organizations to compete state-wide on for State HOME Program funding. While more competitive, there is approximately $5,163,188 funding available and Olympia-based applicants could potentially receive more than the average Thurston County HOME award.
The County HOME Consortium would lose Olympia's pro-rata share ($180,000) of HOME dollars.
- This $180,000 reduction would cause a 30% reduction to all of the current allocations proposed for Program Year 2013.
- HUD will not allow expenditure of HOME funds on projects located outside of the Consortium boundaries. The Smith Building Family Housing and for the Homes First projects were submitted and recommended in 2013 assuming Olympia was a member of the Consortium.
- This will require amending the draft Consolidated Plan to reflect the reduction in anticipated resources from $602,887 to $422,887 in anticipated Program Year 2013 HOME funds.
Signing the HOME Interlocal Agreement:
- Supports a regional approach to affordable housing.
- Supports a regional approach to other human service funding programs.
- Allows Olympia to participate in the governance of the annual HOME allocation of approximately $602,887.
- Maintains the current level of HOME funding.
- Allows current funding allocations to proceed as planned for the Smith Building Family Housing and Homes First projects based in Olympia.
Neighborhood/Community Interests (if known):
Retained governance of federal HOME dollars will help to support affordable housing throughout Olympia, which will benefit neighborhoods and other community stakeholders.
Financial Impact:
Execution of the Amended HOME Interlocal Agreement gives the City of Olympia representation on the HOME Consortium to govern the use of an estimated average of $602,969 in federal HOME dollars annually.