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07 - Submission of an Application to become a Reservation System Participant for Home Funds to the Texas Department of Housing & Community Affairs (2)Item No. 7 TO: Mayor, Mayor Pro Tem & City Council FROM: Grayson Path, City Manager SUBJECT: HOME Program DATE: February 14, 2022 BACKGROUND: The City of Paris has been contracted with the Texas Department of Housing and Community Affairs (TDHCA) for the last three years for HOME Funds to support the demolition and reconstruction of eligible housing in the City of Paris. This has and continues to be a successful program. CoVid-19 did greatly slow down the process, but it is starting to pick back up in speed. We are currently in construction phases for seven homes with another six working through the State. We however have many more applicants that will not make it through the process before our current contract runs up with TDHCA. STATUS OF ISSUE: The next round of applications for the HOME Program is due. In order to apply, the City Council must approve a Resolution and the City Staff will prepare and submit an application by the first of March. If approved by the TDHCA, we will enter another multi-year contract for additional funding for the HOME Program. This continues to be an excellent program for our community to take old and dilapidated housing and replace it with brand new construction. In addition, to be eligible for the program, families must be below certain income thresholds, so this program is an incredible help to low-income families in our community. BUDGET: The minimum amount the City must contribute is $40,000.00. The City typically budgets $80,000.00. It is normally an 85/15 match program, thus the City's investment goes an incredible distance towards replacing housing stock in our community. OPTIONS: 1. Approve a Resolution to apply for the HOME Program with the TDHCA. 2. Reject the Resolution and/or request additional information. RECOMMENDATION: 1. Approve a Resolution to apply for the HOME Program with the TDHCA. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO BECOME A RESERVATION SYSTEM PARTICIPANT FOR HOME FUNDS TO THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS; GRANTING AUTHORITY TO THE CITY MANAGER TO EXECUTE ANY AND ALL OTHER INSTRUMENTS REQUISITE IN IMPLEMENTING SAID RESOLUTION, AND AUTHORIZING THE CITY CLERK TO AUTHENTICATE THE MAYOR'S SIGNATURE TO ANY AND ALL OTHER INSTRUMENTS REQUISITE IN IMPLEMENTING SAID RESOLUTION; MAKING OTHER FINDINGS AND PROVISIONS AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Paris desires to continue to develop a viable urban community, including decent housing and a suitable living environment principally for persons of low/moderate income; and WHEREAS, certain substandard housing conditions exist which represent a health and safety threat to families residing in such structures; and WHEREAS, the Paris City Council supports the City's application for funding; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: SECTION 1. That submission of an application for Reservation System Participation of HOME Funds is hereby authorized to be filed on behalf of the City with the Texas Department of Housing and Community Affairs. SECTION 2. That the submission will be for grant funds to carry out Homeowner Reconstruction Assistance for housing reconstruction within the incorporated areas of the City. Project cost will include eligible hard and soft costs and allowable administration/operating funds. SECTION 3. That the City Council directs and designates City Manager as the City's Chief Executive Officer and Authorized Representative to act in all matters in connection with this submission and the City's participation in the HOME Program with signature authority. SECTION 4. That the City contribute project match as required by the 2020 Single Family HOME program rules. SECTION S. That the City commits a cash reserve in the amount of FORTY THOUSAND DOLLARS ($40,000.00) designated for payment of requested project expenses before receiving reimbursement by the State of Texas. PASSED APPROVED this 141h day of February, 2022. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney