14-Reservation system participant to the Texas Dept of Housing

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Ptesented By: Agenda Item No.: 11/19/10 Council Date: City Manager Kevin Carruth, Rachel Edwards 14. 11 /22/10 RECOMMENDED MOTION: Move to approve a Resolution authorizing the submission of a request to become a reservation system participant to the Texas Department of Housing and Community Affairs HOME Program and authorizing the Mayor to negotiate and execute all necessary documents. POLICY ISSUE(S): Contract; Community Development BACKGROUND: Beginning last month the Texas Department of Housing and Community Affairs (TDHCA) is trying a pilot project for distributing HOME Program funds by changing from a contract to a Reservation System. The primary difference between the Reservation System and a contract is that a contract has a set aside dollar amount committed to the City for its use for a specific time period. The Reservation System is a general fund/pool reserved for all entities that have an agreement to participate. Funds are accessed based on eligible applicants received until the fund is depleted. Contracts have certain performance benchmarks that must be met and if the benchmarks are not met it could impact future funding. The advantage a city has with a contract is an exact dollar amount committed for only that city's use. Typically, a contract will assist five households and assistance is usually provided every two years. The good news is that a Reservation System participant is not excluded participation in contracts. The City is still eligible to apply for contracts in addition to being a participant and utilizing Reservation System funds. If the City has a contract, TDHCA would prefer commitment of the funds from the contract prior to utilizing Reservation System funds. The advantage of being a Reservation System Participant is the City would be able to continue to assist eligible applicants on an on-going basis, as funds are available. Paris has a waiting list of 53 interested citizens, although all of them may not be eligible. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: Resolution, contract ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $ ❑ Department Report ~ Resolution Budgeted Amt. $ ❑ Presentation ❑ Ordinance y'I'D Actual $ ❑ Public Hearirig ❑ Other Acct. Name Acct. Number FISCAL NOTES: The match requirement for Housing Rehabilitation Assistance remains 12.5 percent, regardless of whether the city accesses funds through a contract or the Reservation System. Homebuyer Assistance has a 5 percent match. REVIEWED AND APPROVED BY: Z Administrarion Z City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire ❑ Municipal Court Z Legal ❑ Library ❑ Police E Eng./Public Works ❑ Utilities City of Paris Revised 2/04/08 63