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5.1 1995 CDBG CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME 6/26/95 4:00 P.M. AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR NO, 5 AGENDA: ItEM PLANNING & DEVELOPMEN"I~,~ NO. 1, la and lb Roy Dudark /~/ ,~ BY: BY: Item Public hearing to consider 1995 CDBG Housing Grant application Background On June 5, the City Commission authorized staff to set this date for the public hearing to consider a 1995 Community Development Block Grant (CDBG) Housing Application. The Commission also directed staff to prepare an application consisting of housing rehabilitation and homebuyer assistance for consideration. Proposed Project The proposed project application requests $300,000 of CDBG funds for the following activities: Major Rehabilitation 15 houses @ $10,000 $150,000 Emergency Repairs 15 houses @ $ 2,000 30,000 Homebuyer Assistance 25 houses @ $ 4,000 100,000 Admin./Insp. 20~000 $300,000 Households Benefitting 55 Low-to-Moderate Income Persons Benefitting 124 The CDBG grant would be matched with $30,000 in cash provided by the City of Salina. If approved, funding would be available around November 1, 1995, and extend through April 30, 1997. Major rehabilitation would be offered to homeowners residing in the target area north of Crawford Avenue and west of the Smoky Hill River Channel with emergency repairs and homebuyer assistance available throughout the city. COMMISSION ACTION MOTION BY SECOND BY THAT: CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME 4:00 P,M. AGENDA SECTION: ORIGINATING DEPArtMENT: APPROVED FOR NO. AGENDA: ITEM PLANNING & DEVELOPMENT NO. Roy Dudark Page 2 BY: BY: To qualify for assistance, applicants must have an annual income of no more than 80% of Saline County's median family income adjusted by household size. For example, a 4-person household must have a total income of no more than $28,900. The application includes two resolutions. The first authorizes submittal of the application to the Kansas Department of Commerce and Housing. The second, Residential Antidisplacement and Relocation, is a federal requirement, but will not apply to this project as no dwellings will be demolished or converted to another use with CDBG funds. Recommended Action Adopt the two attached resolutions. Encl: Resolution 95-4878 Resolution 95-4879 Application E4O1934 RESOLUTION NUMBER 95-4878 A RESOLUTION AUTHORIZING THE PREPARATION AND FILING WITH THE KANSAS DEPARTMENT OF COMMERCE AND HOUSING OF A SMALL CITIES COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION FOR HOUSING REHABILITATION AND HOMEBUYER ASSISTANCE FOR FISCAL YEAR 1995; DESIGNATING THE MAYOR AS THE AUTHORIZED REPRESENTATIVE OF THE CITY OF SALINA TO ACT IN CONNECTION WITH THE APPLICATION; AND TO PROVIDE SUCH ADDITIONAL INFORMATION AS MAY BE REQUIRED. WHEREAS, K.S.A. 17-2337 et. seq. authorizes the City of Saline, Kansas to accept grants or other financial assistance for the repair and improvement of dwellings and housing accommodations, SO NOW, THEREFORE BE IT RESOLVED by the Governing Body of the City of Saline, Kansas: Section 1. That the City of Saline, Kansas, prepare and file with the Kansas Department of Commerce and Housing an application for housing rehabilitation and homebuyer assistance under the small cities section of the Community Development Block Grant Program for Federal fiscal year 1995. Section 2. That the Mayor is designated as the applicant's chief elected official and authorized representative. Section 3. That as the chief elected official and authorized representative of the applicant, the Mayor is hereby authorized to sign and file the application, including all understandings, certifications, and assurances contained therein, to act in connection with the application and to provide such additional information as may be required. Section 4. That the City of Saline, Kansas, hereby resolves to actively pursue housing conservation activities to include housing rehabilitation, homeownership, weatherization and demolition of dilapidated structures throughout the community with special emphasis within the designated target area. Furthermore, that the City resolves to sustain this activity, subject to available resources, for approximately the next five years, at such time housing needs and future goals will be reevaluated. Section 5. That this Resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 26th day of June, 1995. John Divine, Mayor [SEAL] ATTEST: Judy D. Long, City Clerk ! KDOC&H USE ONLY', Kansas Small Cities Community Development Block Grant Program I ! ,. ~; ~:.~.. ?i ~ c,;', ~ , . ' . 1995 Housing Application Summary I ' ...,.:',,,.:,,..~ ,.'.,...:,.,,~;!' ~,.. .=. ,. 1. APPLICANT: 9_ LOCAL CONTACT PERSON: NAME: Ro:~ Dudark NAME C±ty of Salina TITLE: D±rector of Planning; ADDRESS: 300 W. Ash, ?.0. :Box 736 ADDRESS: 300 W. Ash~ ?.O. Sox 736 CITY: Salina, Ks CITY: Salina, KS 67401 TELEPHONE: (9131) 826-7260 ZIP COD~ 67402-0736 COUNTY: Saline 3. U.S. CONGRESSIONAL DISTRICT: 1 STATE SENATE DISTRICT: 24 TELEPHON~- (913) 826-7260 STATE REPRESENTATIVE DISTRICT: 67,69,71 4. NATIONALOBJECTIVE: [~ LOW-AND-MODERATEINCOME (See General Requirements concerning required documentation to meet selected NafionaJ Objective) 5. EUGIBLEACTIVITY: SECTION I OS, PARAGRAPH: (a) (4) & (25)SPECIFICACTIVITY: Rehabilitation of buildings and provision of direct assistance to facilitate and expand homeownership. PROJECTTYPE: HOUSING: [] REHABlUTATION [] ASSISTANCE [(] COMBINED WILL THE PROJECT INCLUDE: [ ] RENTALREHABILITATION [ ] DEMOLITION 7. PROJECTDESC~P~ON: Rehabilitation of 30 substandard dwellings to minimum housing quality standards and .assistance to 25 first-time homebuyers with downpayment and closing costs. 8. PROPOSED FUNDING: SMALL CITIES CDBG FUNDS REQUESTED IN THIS APPLICATION ................ $ 300,000 FUNDS TO BE SUPPMED BY OTHER SOURCES: [Must have documentation attached.] SOURCE CONTACT PERSON TELEPHONE (~ Cit~ of Salina Dennis Kissinger (913) 826-7250 $ 30,000 (c) $ (d) (e) TOTAL FUNDS SUPPLIED BY OTHER SOURCES ....................... $ 30,000 TOTAL PROJECT FUNDING ............................... $ PROJECTBENEFIT: TOTAL PERSONS BENEFITING: 124 10. PROJECT BEGINNING DATE: November t, 1995 TOTAL LMI BENEFITING: 124 ESTIMATED ENDING DATE: April 30, 1997 PERCENT LMI BENEFITING: 100~o DURATION OF PROJECT: 18 MONTHS Page I of 4 Kansas Department of Commerce & Housing 1995 HOUSING APPLICATION SUMMARY 1. C133ZEN PARTIClPA~ON: DATEOFPUBLICHEAPJNG: June 26, 1995 PUBIICAT]ONIN: The Salina Journal t2. TOTAL POPULATION: 42,303 DATEOFPUBLICA~O~ June 19 ~ 1995 [1990CENSUS] (Affida~4t of Pub~ca~on must be at~chec0 13. LOW-AND-MODERATE INCOME NA~ONAL OBJEC~VE VEPJFICA~ON: Araaw~de Bener~ or Target Area (a) HUD/CENSUS FIGURES: [Fqll in HUD F~guras] (1) Tot~ pemons: 124 (2) Total Iow-and-moderate income persons: 124 (~) Oommu nity wide-target area percentage of population which is LMI: 100 % 14. PROGRAM ADMI NISTP~TI ON (a) UST PFLmVIOUS CDBG PRCLIEOTS AND PERCENT OF COMPLETION: YEAR PROJECT TYPE PERCENTCOMPLETE 0) 1993 Housing - Combined 100% ~) 1991 Community Improvement - Housing Rehabilitation (3) 1989 Community Improvement - Housing Rehah~ ] ~ rmr~ mn ] 0~% (4) 1988 Community Improvement - Housing Rehab~]Jtm~nn ]00% ~o) EXPLANATION OF HOW THE PROPOSED PROJECT WILL BE ADMINISTERED: The City will administer the project. Qualified responsibility for assisting applican~, preparin~ 15. RESIDEhmAL AN3qDISPLACEMENT AND RELOCATION ASSISTANCE PLAN: AJI app~cants must submit a Resolu~on for RaskJen§nl An§displacement and Rek~cafion Assistance Plan under Section 104(d) of bhe Housing and Commun~y Devek~pment Act of 1974, as amended. A sample format is included in the General Requirements, AppendLx F. FAILURE TO SUBMIT A RESOLUTION WILL BE GROUNDS FOR REJECTION OF APPLICATION. 16. FURTHERING FAIR HOUSING: /UI applicants who receive a grant award must affirmat~e~ fu~her fnlr housing. T~e VIII and Execu~ve Order 11063 requirements apply to all recipk~nts, regardk~ss of si~e and/or rac~l or ethnk= characteds§cs. The f~r housing provisions ap~y to the commun~y as a wh~e and per. in to ~e sa~ or rent~ of housing, the financing of housing, and ~e provision of brokerage services. MEANINGFUL STEP. S TO FURTHER FAIR HOUSING MUST BE TAKEN. Such steps must be documented and will be monitored by KDOC&H. 17. CDBG DISCLOSURE REPORT: Applicants must comfy ~4~ the prov~>ns of Sec~on 102 of the HUD Reform Act of 1989 E the applicant receives at least $200,000 in covered as~stance from HUD, states, or k~cal un~s of government dudng the fiscnl year in which the application is submitted. The CDBG Disclosure Repo~ ~s ~duded ~ the Gener~d Requirements, Appendix G. FAILURE TO SUBMIT A REPORT WILL BE GROUNDS FOR REJECTION OF APPLICA~ON. 18. The applicant car~fies that the information cont~ned in the Application Surnman/is ~ue and correct and the document has been duly authorized by the governing body. The applk;ant agrees that, if approved, this with the attached Cer~fica~ons vdll become a part of U3e agreement for acti~4bes and sen4ces authorized under the Housing and Commun~y Development Act of 1974, as amended. Typed Name and '~e of Chief Eected Official: Name: John Divine TitJe: Mayor .~gnature: Date: June 26, 1995 Page 2 of 4 Kansas Depar~nent of Commerce & Housing Small Cities Community Development Block Grant Program 19. Community Needs Form [IJm. to One Page On~ [Mu~lncludeHousingNeeds] Narraave: The City of Salins recently conducted a comprehensive analysis of its community development and housing needs. The cityts community development needs have been identified in the Salina ComDrehensive Plan adopted in 1992. This plan reviewed population, economic an~--f-~--~ use trends, examined the condition of public facilities, utilities and the major street system, and developed goals, objectives and policies to guide future development. In order to help ensure that tax dollars are spent wisely, the plan provides short and long-range recommendations to improve public facilities and infrastructure. Key capital improvement projects recently completed include= an eastern sanitary sewer interceptor, water system improvements in new growth areas, and an upgraded sanitary landfill. Major street and intersection improvements, new parks and recreation facilities, and drainage enhancements are planned during the next five years. Potential needs are considered for funding during the annual process of developing the city's capital improvement program. Although the city grew 1.1 percent or 460 persons between 1980 and 1990, some areas of the community continued to experience loss of dwelling units and population. For example, Census Tracts 1, 2 & 3 located in northern Salina, lost 230 dwellings and 587 people. While a number of complex social and economic factors contribute to this situation, some community facility deficiencies exist. These include unpaved streets, deteriorated curbs and gutters, broken and missing sidewalks, and undersized water and sewer lines. The city has initiated a neighborhood improvement program to address these needs. The 1995 CIP provides $150,000 to implement this initiative in three target neighborhoods. In 1991, a Salins Housing Needs Assessment documented the housing problems being experienced by low and moderate income households. Between 1980 and 1990, the number of households increased 6.6% while the housing inventory increased by only 4.2%. Consequently, the vacancy rate dropped to 6.1% - the fourth lowest in Kansas. A real need exists for homes priced under $50,000. Some small and/or older homes are available at that price but many need extensive rehabilitation or repair. Despite a low unemployment rate (3.9%), 1989 income estimates show that 50.1% of Salina households earned less than $25,000. An estimated 698 of the city's 1,074 Poverty level homeowners pay more than 30% of their income to own their homes, including 387 who experience severe housing cost burdens (pay 50% or more of income). Many of these households are single mothers, women age 65 or older, or persons with disabilities. Local housing programs only provide public housing (97 existing units with 70 under development) or rental assistance (253 certificates and 34 vouchers). Over 300 households are presently on the waiting list and applicants must wait up to 1.5 years to receive housing. Little or no assistance is available for the existing or prospective low-income homeowner. A public hearing was held to receive public comments on the proposed project on June 26, 1995. In addition, three informational meetings were held with citizens residing in the target area. Notices of these meetings were published in the newspaper and mailed to individuals and organizations. Page 3 of 4 Kansas E)eparUnent of Commerce & Housing Small Cities Community Development Block Grant Program 1995 HOUSING APPUCATION SUMMARY 20. Project Budget Form: [Must be complete] tu SOURCE OF ACTIVITY CDBG FUNDS OTHER FUNDS o a. TOTAL COST OTHER FUNDS 1) ADMINISTRATION $ '20,000 $24,000 X $/:44,000 City of Salina ~ CLEARANCE 3) DEMOUTION 4) HOUSING REHABILITATION b) Grants ~Deferred Payment) $180,000 $180.000 ;) ACQUISITION OF REAL PROPERTY 6) RELOCATION ASSISTANCE 7~ HOUSINGINSPECTION 6,000 X $ 6,000 City of Sa] 8) HOUSING ASSISTANCE ~ Downpayment $ 66~000 $ 66,000 b) Loan~o~ngCosts ,$ 34,000 $ 34.000 9) OTHER [Identify] ¢) 10) TOTALS $300,000 $ 30,000 $330~000 Based on $200 for 15 major rehabilitation and $75 for 15 minor rehabilitation and 25 homebuyer assistance. Page 4 of 4 Kansas Department of Commerce & Housing Small Cities Communib/Development Block Grant Program HOUSING REHABlUTATION FORM Housing Rehabilitation Name of Applicant: City of Salina PROJECT NEED: Total number of housing units in the community: 17,755 Total number of substandard housing units in the community: 1,040 Total number of housing units in the community suitable for demolition: Total number of housing units proposed to be rehabilitated: 30 Total number of housing units proposed to be demolished: 10 (Above figures reflect past rehabilitation and demolition activity). Narrative: [include current housing stock analysis and relevant historical remedial action] See Attachment A - Ne×~ PROJECT FINANCING: Method of financing: Loans X Deferred Payment Grants Others, explain: What income limits will be used when selecting persons for the rehabilitation programs? HUD Section 8 Assisted Housin~ Income Data (12/]0/94) Page 1 of 2 Kansas Department of Commerce & Housing Small Cities Community Development Block Grant Program HOUSING REHABILITATION FORM Housing Rehabilitation (continued) PROJECT IMPACT: Program Description 1. Projected average rehabilitation cost per unit: $10,000 2. Projected average demolition cost per unit: $ 1 ~ 500 3. MaxJmum amount that will be allowed to be spent per unit for rehabilitation: $13,000 4. Maximum amount that will be allowed to be spent per unit for demolition: $ 6 ~ 500 5. What rehabilitation standards will be used? HUD Section 8 Minimum Housing Q~ality Standards and HUD Cost-Effective Enermv 6. How were the co~s estimated and by whom? Review of recent contractor bids by Housing Rehabilitation Coordinator mhd R,~i ] ding ~EEi ~i mi . B. Discussion ~ alternatNes and historical corre~Ne measures: One alternative wnuld hm g~riee onfnroomonv nf W~,,~ w .... 4~ Code. This may not result in rehabilitation but displacement due to financial imcapacity. Another option would be to levy local taxes to finance improvements. It is difficult to appropriate sufficient city tax funds to improve private property. The proposed pro~ect is the most effective in that it uses funds allocated for this purpose. Under past CDBG grants, 11~ dwellings were full rehabilitated~ 176 received emergencv reoair and 167 were weatherized. The proRram has proven to be effective but 25 qualified applicants currently on the waiting list are dependent upon continued'funding. C. Analys~ ~com~atecorrect~e measures: [A~achresol~ion ~ governing body] The proposed pro~ect would completely rehabilitate 15 dwellings and perform minor emergency repairs on another 15 units. In combination with past efforts, 320 dwellings will have received some corrective measures. This represents 24% of ~h~ 1,330 dwellings identified with deficiencies in 1986. Assuming one half of the remainder will need governmental assistance, 15 years of effort will be needed to remedy the problem. The attached resolution of the $overnin~ bod~ of the City of Salina indicates a strong committment to meeting the need. D. AEachd~alledproje~location map. includingtargetarea boundaries(Eapplicable). See attached map. Page 2 of 2 Kansas Deparb-nent of Commerce & Housing Small Cities Community Development Block Grant Program ATTACHMENT A - PROJECT NEED AND FINANCING During the 1980's in Salina, the cost of housing ownership and rent levels increased significantly, although the incomes of many local residents remained unchanged or even decreased. Income figures show that 50.1% (or 8,661) of Salina households earned less than $25,000 annually in 1989. Given the low unemployment rate (5.4%), underemployment may be a greater factor in the housing problems of lower income households. An estimated 698 of the 1,074 poverty level homeowners pay more than 30% of their incomes to own their homes, including 387 who pay more than 50%. This situation is more likely to occur with elderly, female-headed and disabled families. An estimated 2,051 single-person households are age 65 or older - most of whom are women; female-headed families represent 1,741 households; and an estimated 1,200 Salina residents aged 16 - 64 have disabilities that interfere with employment. These individuals are not physically able nor can they afford to improve or maintain their homes to minimum standards. According to the 1990 Census, 4,033 dwelling units or 21.9% of the housing stock in the City of Salina were built before 1940. In excess of 50 years old, many such homes have deteriorated to a level of critical concern. Prompt action must be taken if these structures are to be prevented from reaching a dilapidated condition. An estimated 1,040 housing units (5.9% of the inventory) within the city exhibit signs of deterioration but could be returned to standard condition through rehabilitation. The problem is more severe in the target area (Census Tracts 1, 2 and 3) where 775 or 11% of the housing units in the area are substandard. In this area, which encompasses the original town site and surrounding older neighborhoods, 59% of the housing units are occupied by low-to-moderate income households. Under previous CDBG rehabilitation projects, 114 dwellings in the target area were fully rehabilitated and another 176 located in all areas of the city received minor emergency repairs. Presently , 25 eligible applicants are on the waiting list. Given the number of substandard dwellings and need for assistance, 10 - 15 years of effort will be necessary to remedy the situation. The proposed rehabilitation program is designed to assist needy homeowners in returning their homes to a safe and sound condition. A major goal is to avoid potential displacement through unchecked deterioration and eventual loss. The project will completely rehabilitate 15 dwellings in the target area and provide minor rehabilitation or emergency repairs to another 15 dwellings throughout the city. This activity will be financed with deferred payment grants for those households with incomes of not more than 80% of median family income adjusted by household size. The deferred payment grant will be forgiven by 20% for each year the applicant continues to own and reside in the dwelling over a period of 5 years. A mortgage lien will be placed on the property to ensure compliance with residency and ownership requirements. Only homeowners will be assisted so no tenant income verification or rent control agreements will be necessary. Page 2 After rehabilitation, the work components will meet HUD Minimum Housing Quality Standards or city codes if more stringent (e.g., electrical, mechanical and plumbing). City inspectors will ensure that structures are brought into compliance with these codes. Major Rehabilitation projects will be advertised for bids in the city newspaper of general circulation. Three price quotes will be obtained for minor rehabilitations. City inspectors are experienced in all phases of rehabilitation of structures and the various bids will be reviewed prior to contract execution based on preliminary cost estimates of required work. We will have a list of pre-qualified contractors and suppliers who, on bid or quote basis, will be issued a contract for the rehabilitation work. These activities will be administered by the City's Community Development Department. The department has administered previous CDBG programs and has personnel qualified and experienced in housing rehabilitation. They will let bids and conduct inspections. Elderly, very low income, disabled and single parent households will receive priority for assistance. The demolition of vacant, dilapidated buildings will be administered by the City Building Official. The process will involve inspection and documentation, notification to property owners of defects and needed repairs, a public hearing to consider findings, and a resolution of the Governing Body ordering repair or demolition. No CDBG funds will be used to carry out demolition activity; the cost will be assessed to the property owner. Solina, Kansas Census Tract Map ~ Target Area - ©1 ,, .-k~/~, Major Rehabi 1 i tati o N ~5 I I 002 I ' i / ,,,1 ~=~ 010 - I __ -x ,,004 =,, oos ! , . ,o~. I y x~ O; 'xX I I Housing Assistance Name of Applicant: City of Salina PROJECT NEED: .... ~ -: :'"'" ': .... Deectiption of the need for the program: - See Attachment B - Next Page. PROJECT IMPACT: -._ Impac~ (~the ac~v~y on ~e ~em~ed need: See Attachment B - Next Pase. Page 1 of 1 Kansas Oeparlment of Commeroe & Housing ATTACHMENT B - HOUSING ASSISTANCE Project Need According to the Census Bureau, between 1980 and 1990, the rate of homeownership in Salina dropped from 68% to 64%. Among the 50.t% (8,661) of Salina households with incomes below $25,650 (80% of median family income) who desire but have been unable to obtain homeownership, a real need exists for decent homes priced no higher than $50,000. While no new single-family homes are priced that low, according to the 1990 Census, 5,718 owner-occupied units were valued under $50,000. Based on standard mortgage underwriting guidelines, a three person household with an income of $25,000 could qualify for a $50,000 mortgage loan, assuming 9.5% interest and a 30 year term. This also assumes a 10% downpayment and 2% - 3% for loan closing costs. Unfortunately, most low-to-moderate income families have no discretionary income and thus little if any savings. Therefore, assistance with downpayment and closing costs is needed to enable such families to obtain homeownership. During recent years, the Salina economy has experienced steady expansion producing'considerable employment growth. Between 1990 and 1995, employment increased from 25,500 to 29,250. This job growth has generated strong demand for housing resulting in higher rents and values. However, a significant portion of these new jobs are in retail sales and services - occupations with below average wages. Local housing costs are increasing faster than the wages of many lower income households. For those so affected, homeownership is beyond reach without some type of financial assistance. Project Impact The proposed project is intended to assist 25 low and moderate income households attain homeownership. This goal is based on $100,000 of the grant allocated as follows: downpayments - $66,000 ($2,640 x 25) and closing costs - $34,000 ($1,360 x 25). These figures are based on actual experience from the 1993 program. In order to assist this number of homebuyers, several major local financial institutions will assist program participants by providing one or more of the following: 1) waiving discount points and origination fees normally charged on market rate loans; 2) expanding qualifying debt-to-income ratios; 3) reducing loan closing costs to a minimum; 4) using utility and rental payments for credit approvals; 5) allowing gifts and grants for down payments; and 6) eliminating private mortgage insurance. An implementation plan has been developed containing the following general provisions: 1. Eligible applicants must meet HUD Section 8 low and moderate income limitations. Qualifying households will be awarded funds for 50% of the downpayment not to exceed $5,000 and all reasonable closing costs not to exceed $3,000. The maximum Page 2 purchase price of the home cannot exceed $50,000 with the downpayment not exceeding 20% of the purchase price. The homebuyer must provide the remaining 50% of the downpayment and have at least 5% equity in the home after closing. 2. Assistance will be in the form of deferred grants. The homebuyer must agree to maintain ownership and residency for 5 years. For each year that this agreement is fulfilled, 20% of the grant will be forgiven. A mortgage lien will be placed on the property to ensure compliance. 3. Homebuyers must obtain financing to complete the purchase from a state chartered financial institution and receive a deed to the property. Seller financing or contract for deed will not be allowed. 4. Prospective homebuyers must complete a home pre-purchase and household budgeting course as a condition of receiving assistance. 5. Any house in the city will be eligible for purchase but all must meet HUD Section 8 Minimum quality standards or be suitable for rehabilitation. Rehabilitation assistance may be provided for the property to be purchased in accordance with established guidelines. 6. Any program income generated by the recapture of grant funds will be recycled for additional homebuyer assistance or returned to the state CDBG program. It is anticipated that the goal can be met in under 12 months. When the 1993 Housing Assistance Program ended in August, 1994, 45 applicants were on the waiting list. Consumer Credit Counseling Service will provide the educational workshops for prospective homebuyers. This will help screen candidates and develop more credit-worthy mortgage loan applicants. The partnership formed between the city and local lenders under this program will maximize the use of CDBG funds and thus further the legislative intent of extending homeownership to lower income households. Without CDBG funding, the financial resources within the lending institutions would not be released into the community, particularly in neighborhoods having a high proportion of renter-occupied housing. Increasing the incidence of home-ownership in such neighborhoods will help realize the community development objectives of enhancing residential investment, encouraging property maintenance and promoting social stability. Statement of Assurances & Certifications STATEMENT OF ASSURANCES & CERTIFICATIONS The applicant hereby assures and certifies with respect to the grant that: (1) It possesses legal authority to make a grant submission and to execute a community development and housing program. (2) Its governing body has duly adopted or passed as an official act a resolution, motion or similar action authorizing the person identified as the official representative of the grantee to submit the final statement, all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the grantee to act in connection with the submission of the final statement and to provide such additional information as may be required. (3) That prior to submission of its application to KDOC&H, the grantee has met the citizen participation requirements, prepared its application of community development objectives and projected use of funds, and mede the application available to the public, as required by Section 104(a)(2) of the Housing and Community Development Act of 1974, as amended, and implemented at 24 CFR 570.486. (4) It has developed its final statement (application) of projected use of funds so as to give maximum feasible priority to activities which benefit Iow-and-moderate income families or aid in the prevention or elimination of slums or blight; the final statement (application) of projected use of funds may also include activities which the grantee certifies ara designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available. (5) Its chief executive officer or other officer of the grantee approved by KDOC&H: (a) Consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 and other provisions of Federal law as specified in 24 CFR 58.1(a); (b) Is authorized and consents on behalf of the grantee and himself/herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of his/her responsibilities as such an official; and (6) The grant will be conducted and administered in compliance with: (a) TAla Vi of the Civil Rights Act of 1964 (Pub. L 88-352), and implementing regulations issued at 24 CFR Part 1: (b) Fair Housing Amendments Act of 1988, as amended, administering all programs and activities relating to housing and community development in a manner to affirmatively further fair housing; and will take action to affirmatively further fair housing in the sale or rental of housing, the financing of housing, and the provision of brokerage services; (c) Section 109 of the Housing and Community Development Act of 1974, as amended; and the regulations issued pursuant thereto (24 CFR Section 570.602); Page I of 3 Kansas Department of Commerce & Housing Small Cities Community Development Block Gram Program Statement of Assurances & Certifications (d) Section 3 of the Housing and U~an Development Act of 1968, as amended; and implementing regulalions at 24 CFR Part 135; (e) Executive Order 11246, as amencled by Executive Orders 11375 and 12086 and implementing regulellons Issued al 41 CFR Chapter 60; (t) Executive Order 11063, as amended by Executive Order 12259 and implementing regulalJons at 24 CFR Part 107; (g) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended and implementing regulallons when published for effect; (h) The Age Discrimination Act of 1975, as amended, (Pub. L. 94-135), and implementing regulations when published for effect; The relocation requirements of Title II and the acquisition requirements of T'~le III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended and the implementing regulations al 24 CFR 570.488; (D Antidisplecemant and relocation plan requirements of Section 104(d) of T'~le I, Housing and Community Development Act of 1974, as amended: (k) Relocation payment requirements of Section 105(a)(11) of T~le I, Housing and Community Development ACt of 1974, as amended. (I) The labor standards requirements as set forth in 24 CFR 570.603 and HUD regulations issued to implement such requirements; (m) Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11288 relating to the prevention, control, and abatement of water pollution; (n) The regulations, policies, guidelines and requirements of OMB Circular Nos. A-87, A-110 and A-122 as they relate to the acceptance and use of Federal funds under this federally assisted program; (o) The American Disabilities Act (ADA) (P.L 101-336:42 U.S.C. 12101) provides disabled people access to employment, public accommodations, public services, transportation and telecommunications; (7) The conflict of interest provisions of 24 CFR 570.489 apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the stale, or of a unit of general local government, or of any designated public agencies, or subreciplents which are receiving CDBG funds. None of these persons may obtain a financial interest or benefit from the activity, or have an interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter, and that it shall incorporate or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purpose of this certification; (8) It will comply with the provisions of the Hatch Act which limits the political activity of employee; Page 2 of 3 Kansas Department of Commerce & Housing Small Cities Community Development Block Grant Program STATEMENT OF ASSURANCES & CERTIFICATIONS (9) It will give the State, HUD and the Comptroller General or any authorized representative access to and the right to examine all records, books, papers, or documents related to the grant; (10) It will comply with the lead paint requirements of 24 CFR Part 35 Subpart B. issued pursuant to the Lead- Based Paint Hazard Elimination Act (42 U.S.C. 4801 et seq.). (11) The local government will not attempt to recover any capital costs of public improvements assisted in whole or in part with CDBG funds by assessing properties owned and occupied by iow and moderate income persons unless: (a) CDBG funds ere used to pay the proportion of such assessment that relates to non CDBG funding or; (b) the local government certifies to the state that, for the purposes of assessing properties owned and occupied by Iow and moderate income Persons who are not very Iow income, that the local government does not have sufficient CDBG funds to comply with the provision of (a) above. (12) It accepts the terms, conditions, selection criteria, and procedures established by this program description and that it waives any right it may have to challenge the legitimacy and the propriety of these terms, conditions, criteria, and procedures in the event that its application is not selected for CDBG funding. (13) It will comply with the regulations, policies, guidelines and requirements with respect to the acceptance and use of Federal funds for this federally-assisted program. (14) It will comply with all parts of Title I of the Housing and Community Development ACt of 1974, as amended, which have not been cited previously as well as with other applicable laws. The applicant hereby certifies that it will comply with the above stated assurances. Signature, Authorized Local Elected Official John Divine Name (typed or printed) Ma~or June 26, 1995 Date Page 3 of 3 Kansas Department of Commerce & Housing Small Cities Community Development Block Grant Program