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TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Community Development Manager, Community Development Division
DATE: March 14, 2023
SUBJECT:
Recommendation for Approval of the Annual Action Plan Substantial Amendment 2023-#2 - HOME-American Rescue Plan (HOME-ARP) Allocation Plan in the Amount of $2,726,703.
PURPOSE:
Staff requests acceptance and approval of its proposed HOME-ARP Needs Assessment Findings and Recommendations received through the U.S. Department of Housing and Urban Development (HUD) in a special one-time allocation in the amount of $2,726,703. The scope of the HOME-ARP funding is to create affordable housing and to provide supportive services for eligible Qualifying Populations (QPs) experiencing homelessness, at risk of homelessness, survivors of gender-based and sexual-based crimes, families requiring services and/or housing assistance to prevent homelessness, or families that are experiencing a high level of housing insecurity.
HOME-ARP funding will provide the City of Aurora (City) with the opportunity to make targeted, strategic investments in housing and other assistance for QPs. The intent is to address the need for homelessness assistance and supportive services for those who are homeless or near homelessness.
The eligible activities for the potential uses of HOME-ARP are the development of affordable housing, Tenant-Based Rental Assistance (TBRA), supportive services, acquisition and development of non-congregate shelter units for permanent affordable housing, administration, and non-profit operating and capacity building assistance.
BACKGROUND:
The City, as a direct recipient of HOME-ARP funding, must plan for how the HOME-ARP funds will benefit the Aurora community and is required to complete a needs assessment utilizing tools provided by HUD in order to accomplish key requirements outlined in the HOME-ARP published final rule.
The City partnered with a consultant this past summer to begin working on the assessment with the goal of completing the plan by the HUD established deadline of March 31, 2023.
DISCUSSION:
The HOME-ARP Needs Assessment required the City to consider the following sections to establish the City’s HOME-ARP funding objectives and recommendations:
1. Consultation and Public Participation.
2. Needs Assessment and Gap Analysis.
3. Funding Recommendations.
4. Preferences and Referral Methods.
Consultation and Public Participation
The City’s Community Development Division (CDD) launched a robust public participation process to ensure a wide variety of comments and feedback were collected from local stakeholders ranging from City Council members, representatives from the City’s boards and commissions, internal City staff spanning throughout the City’s departments and divisions, non-profits serving the Aurora area, clients of local non-profits that could qualify for HOME-ARP programs, the Aurora Housing Authority, and residents of Aurora to obtain an accurate and comprehensive picture of how the HOME-ARP funding should be allocated.
The City’s outreach efforts resulted in a survey and 20 different listening sessions in which 81 local stakeholders participated. The intent for each outreach opportunity was to provide the City with input on the largest unmet needs and gaps in housing and services in Aurora, how current efforts can be supported, potential collaborations that could be beneficial to QPs that currently do not exist, and further addressing the disparities and gaps amongst racial and ethnic groups.
Additionally, the City is required to complete a public hearing, 15-day public comment period, as part of the City’s approval process, and will conduct four public meetings with each offering an opportunity for the public to offer comments.
Once the draft HOME-ARP Allocation Plan (attached) is released to the public (March 10, 2023), a summary of the City’s citizen participation efforts, including a summary of comments or views together with the City’s responses, will be submitted to HUD.
Needs Assessment and Gap Analysis
Consulted stakeholders and survey respondents provided information to identify gaps in the service delivery system for HOME-ARP qualified populations. Within the data collected, there was a consensus around the need for services for all QPs in order to obtain or retain rental housing in the form of financial assistance for back rent and utilities, funds for deposits, help with landlord negotiation around barriers (criminal history, lack of income, etc.), and housing searches.
Stakeholders and survey respondents further pointed to a high unmet need for housing case management, particularly for those with disabilities, and for enhanced mental health services in order to mitigate issues associated with the retention of stable housing.
Discussion among stakeholders revolved around the need to resolve barriers to housing and disparities in access to housing encountered by individuals and families within QPs due to a combination of:
(1) Insufficient income for housing, exacerbated by rising housing costs,
(2) Barriers to housing, including the lack of accessible units for the physically disabled, lack of qualifying income, criminal and credit history, active substance abuse, mental illness, and others;
(3) Disparities in available housing and services for those who are disabled, immigrants, refugees, Black or African Americans, Hispanics, victims of domestic violence, veterans, youth (18 -24), and others; and
(4) Lack of sufficient supportive services, including mental health services, comprehensive case management, housing search and placement services (housing searches, landlord negotiation, financial assistance, etc.), and others.
An analysis of the survey, together with the comprehensive stakeholder input, indicate that the highest unmet need in the City is resources to provide long-term housing subsidies, and as necessary, emergency housing strategies (landlord intervention, prevention payments, together with comprehensive housing support services in order to mitigate instances of homelessness or housing instability in the City.
While all of the HOME-ARP eligible support service needs are high needs, the eligible activities most frequently discussed as priorities for funding are:
(1) Rent subsidies or supportive housing assistance utilizing affordable housing development and/or TBRA with priority on a housing first, rapid re-housing approach;
(2) Homelessness prevention payments and associated activities; and
(3) Services for wrap-around activities that are necessary to address issues leading to housing instability and barriers to successful outcomes for stable permanent housing.
HOME-ARP Funding Recommendations
The City will partner with local not-for-profit agencies, developers, and contractors to administer eligible activities through a competitive Request for Proposal (RFP) process. Applications will be solicited through various means of distribution such as the internal CDD distribution list for local stakeholders, local newspapers, City’s-CDD website, and other methods in consultation with the Mayor’s Office to ensure a fair and transparent application and review process. The City’s CDD will not directly administer eligible activities and will allocate funding to local qualified partners who will administer eligible activities.
|
Type of Activity |
Funding Amount |
Percent of the Grant |
Statutory Limit |
|
Supportive Services |
$1,200,000 |
44% |
N/A |
|
Tenant Based Rental Assistance (TBRA) |
$ 400,000 |
15% |
N/A |
|
Development of Affordable Rental Housing |
$850,000 |
31% |
N/A |
|
Non-Profit Operating |
$0 |
0% |
5% |
|
Non-Profit Capacity Building |
$0 |
0% |
5% |
|
Administration and Planning |
$276,703 |
10% |
15% |
|
Total HOME ARP Allocation |
$2,726,703 |
100% |
N/A |
Stakeholders that participated in the City’s survey and consultation process outlined a wide variety of unmet needs for all QPs. The City, based upon these findings, will allocate funding to Administration and Planning, Development of Affordable Rental Housing, TBRA, and Supportive Services activities to ensure selected partners and their clients have access to activities to guarantee the best possible outcomes.
The City will utilize 10% of its HOME-ARP allocation for Administration and Planning including a set aside for fair housing activities and planning associated with affirmatively furthering fair housing.
Additionally, 31% of funds will be set aside to support, preserve, or develop affordable housing for QPs. Single-family homes and small multi-unit (1-4 units) properties will be prioritized for partners to acquire that primarily serve a QP. The City estimates that a maximum of nine HOME-ARP QP units will be created.
Next, 15% of HOME-ARP funds will be set aside for TBRA. The City will provide funding to partners that primarily serve QPs.
Lastly, 44% of HOME-ARP funds will be set aside for Supportive Service activities. While all of the HOME-ARP eligible support service needs are high needs, the highest unmet needs for funding include:
(1) Subsidized rent or supportive housing assistance utilizing affordable housing development and/or TBRA with priority on a housing first, rapid re-housing approach;
(2) Homelessness prevention payments and associated activities; and
(3) Services to wrap around activities that are necessary to address issues leading to housing instability and barriers to successful outcomes for stable permanent housing.
Preferences and Referral Methods
The City did not identify a preference or specific referral method to administer HOME-ARP funds for QPs and will rely on partner agencies administering funding to establish a method of prioritization based on the activity administered. Methods of prioritization or referrals may include a waiting list, emergency status of need, and additional methods established by partner agencies to maximize funding and outcomes based on outcomes established in the partner agencies’ signed agreement. The City’s needs assessment has outlined a variety of unmet needs across all four QPs and eligible activities within HOME-ARP and because of this, the City will work with its partners to establish methods of prioritization for each activity funded.
2023 HOME-ARP Program Next Steps and Included Exhibits
Staff is preparing Substantial Amendment 2023-#2 to its 2021 Annual Action Plan for submittal to the U.S. Department of Housing and Urban Development.
The Exhibits include the following documents:
A. Draft HOME-ARP Needs Assessment;
B. Draft 2023 Action Plan Substantial Amendment 2023-#2;
C. Comparable Illinois Communities HOME-ARP Allocation Plans.
In accordance with the City of Aurora’s Citizen Participation Plan and the requirements of the U.S. Department of Housing and Urban Development Department, the 15-day notice for the Substantial Amendment 2023-#2 was posted in the Reflejos Newspaper on March 3, 2023 and the Beacon News on March 5, 2023, with the public comment period opening on March 10, 2023 and closing on March 24, 2023 at 4:00 p.m. This document will also be made available on the City's website. A public hearing is scheduled to be held on March 20, 2023 at 5:00 p.m.
After the approval of Substantial Amendment 2023-#2, City staff will seek HUD approval and begin the process of selecting partners through a competitive RFP process with all recommendations being submitted through additional substantial amendments and approval from City Council which is expected to take place later this summer and agreements executed at the beginning of fall 2023.
IMPACT STATEMENT:
HOME-ARP funds in the amount of $2,726,703 will support investments in providing affordable housing opportunities and supportive service activities for residents that are homeless or at risk of homelessness.
RECOMMENDATIONS:
Staff recommends approval of a Resolution Authorizing Approval of Annual Action Plan Substantial Amendment 2023-#2 - HOME-ARP Needs Assessment Findings and Recommendations. Staff also requests authorization for the City's Mayor, Chief Community Services Officer, Community Development Manager, or their designees to execute any contracts as well as any other documents associated with Substantial Amendment 2023-#2 including but not limited to HUD's program administration requirements.
Please do not hesitate to let me know if you have any questions, 630-256-3321 or ragonac@aurora.il.us.
cc: Public Health, Safety and Transportation Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing Approval Annual Action Plan Substantial Amendment 2023-#2 - HOME-ARP Needs Assessment Findings and Recommendations
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, Annual Action Plan Substantial Amendment 2023-#2 (amending Annual Action Plan 2021) will define priorities for HOME Investment Partnerships Program - American Rescue Plan (HOME-ARP; and
WHEREAS, funding will be available in the 2023 City Budget HOME-ARP program account (213-1330-331.11-19-series), HOME-ARP program account (213-1330-801.44-60 series), and HOME-ARP program account (213-1330-801.44-61 series).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: City Council of the City of Aurora, Illinois, finds as facts all of the preamble recitals of this Resolution and hereby approves a resolution authorizing the Annual Action Plan Substantial Amendment 2023-#2, and authorizes the City's Mayor, Chief Community Services Officer, Community Development Manager, or their designees to execute any contracts as well as any other documents associated with these approvals, including but not limited to HUD's program administration requirements.