111715 neighborhoods housing and development …...no presentation is planned; however staff will be...

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NOTICE OF PUBLIC MEETING PHOENIX CITY COUNCIL

NEIGHBORHOODS, HOUSING AND DEVELOPMENT SUBCOMMITTEE

Pursuant to A.R.S. Section 38-431.02, notice is hereby given to the members of the PHOENIX CITY COUNCIL NEIGHBORHOODS, HOUSING AND DEVELOPMENT SUBCOMMITTEE and to the general public, that the PHOENIX CITY COUNCIL NEIGHBORHOODS, HOUSING AND DEVELOPMENT SUBCOMMITTEE will hold a meeting open to the public on Tuesday, November 17, 2015 at 10:00 a.m. located at Phoenix City Hall, 1st Floor Atrium, Assembly Rooms A, B, & C, 200 West Washington Street, Phoenix, Arizona. One or more Subcommittee members may participate via teleconference. The agenda for the meeting is as follows (items may be discussed in a different sequence than posted):

1. Call to Order Kate Gallego, Chair

2 Review and Approval of the October 20, 2015 Neighborhoods, Housing and Development Subcommittee Meeting Minutes

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Items 3–5 are for information only. No presentation is planned; however staff will be available to answer questions.

3. City of Phoenix Homeless Initiatives Update Provides an overview of recent accomplishments and activities helping to alleviate homelessness in the City of Phoenix for the period of July through September 2015. This item is for information only.

Moises Gallegos, Human Services Director 1

4. Section 8 Designated as a “High Performer” Information on the designation of the Housing Department’s Section 8 Housing Choice Voucher Program as a High Performer by the U.S. Department of Housing and Urban Development (HUD). This item is for information only.

Cindy Stotler, Housing Director Page 15

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5. Property Management Contracts for the Affordable Housing Portfolio Provides information regarding the upcoming procurement of property management services for the Housing Department’s Affordable Housing Portfolio. This item is for information only.


Items 6-7 are for Consent Only. No presentation is planned; however staff will be available to answer questions.

6. Affordable Housing Loan Modifications Request Subcommittee recommend City Council approval to modify existing loans under the Affordable Rental Housing Loan Program. This item is for Consent Only.


7.

HandsOn Greater Phoenix AmeriCorps VISTA Opportunity Request Subcommittee recommend City Council approval to apply for four AmeriCorps VISTA members for FY 2016-17. This item is for consent only.

Michael Hammett, Volunteer Phoenix Program Manager 1

Item 8 is for information and discussion.

8. 2016 State and Federal Agenda Update Seeks input from the Subcommittee on the city’s state and federal legislative priorities in the areas of neighborhoods and community development to be presented to Council at the December Policy meeting. This item is for information and discussion.

Tom Remes, Government Relations Director Page 23

Item 9 is for information, discussion and possible action.

9. 2015-16 CDBG Housing Counseling & Neighborhood Revitalization RFP Request Subcommittee recommend City Council approval of the process for the 2015-2016 Community Development Block Grant (CDBG) Request for Proposals (RFP) for Housing Counseling and Neighborhood Revitalization programs. This item is for information, discussion and possible action.

Chris Hallett, Neighborhood Services Director Page 37

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10. Future Agenda Items Kate Gallego, Chair

11. Call to the Public: Consideration, discussion and comments from the public; those wishing to address the Subcommittee need not request permission in advance. Action taken as a result of public comment will be limited to directing staff to study the matter or rescheduling the matter for further consideration and decision at a later date.

Kate Gallego, Chair

12. Adjournment Kate Gallego, Chair

For further information, please call Michael Hammett, City Manager’s Office, at 602-495-7195 or Nick Valenzuela at 602-262-4449. 7-1-1 Friendly Persons paid to lobby on behalf of persons or organizations other than themselves shall register with the City Clerk prior to lobbying or within five business days thereafter, and must register annually to continue lobbying. If you have any questions about registration or whether or not you must register, please contact the City Clerk’s Office at 602-262-6811. For reasonable accommodations, call Michael Hammett at 602-495-7195 or Nick Valenzuela at 602-262-4449 as early as possible to coordinate needed arrangements. 7-1-1 Friendly Subcommittee Members Councilman Sal DiCiccio Councilwoman Laura Pastor Councilman Daniel Valenzuela Councilwoman Kate Gallego, Chair

November 17, 2015

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Phoenix City Council Neighborhoods, Housing and Development Subcommittee

Summary Minutes Phoenix City Council

Neighborhoods, Housing and Development Subcommittee Summary Minutes

Tuesday, October 20, 2015

City Council Subcommittee Room Phoenix City Hall, Assembly Rooms A, B, and C 200 West Washington Street Phoenix, Arizona Subcommittee Members Present Subcommittee Members Absent Councilwoman Kate Gallego, Chair Councilman Sal DiCiccio Councilwoman Laura Pastor Vice Mayor Daniel Valenzuela

1. Call to Order

Chairwoman Gallego called the meeting to order at 10:07 a.m. Vice Mayor Valenzuela and Councilwoman Pastor were in attendance. Councilman DiCiccio was absent.

2. Review and Approval of the September 15, 2015 Neighborhoods, Housing and

Development Subcommittee Minutes Vice Mayor Valenzuela motioned to approve the September 15, 2015 meeting

minutes. Councilwoman Pastor seconded the motion, which passed 3-0. 3. National Association of Housing and Redevelopment Officials (NAHRO)

Annual Membership

Staff Present Staff Present Public Present Public Present Deanna Jonovich Penny Parrella Tracee Crockett Rita Marko Nick Valenzuela Gary New Mailen Pankiewicz William Emerson Lina Cruz Maria Sainz Patrick Rauenstein RoseMarie Horvath Nancy Kiflemariam

Alan Stephenson Sandra Hoffman Josh Bednarek Chris Hallett Cindy Stotler Moe Gallegos Jeff Alexander Rick Freas Jauron Leefers Titus Mathew Joyce Morris Berenice Baca

Sheila Harris Mike Bielecki Mike Trailor Bruce Liggett James Kvykendall Dave Hepburn

Joel McCabe Craig Tribken Kevin Lane Brian Spicker Sherry Rampy

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4. Energy Audit Consulting Services RFP 5. Historic Preservation Demonstration Project Bond Funds – Welnick Market

6. Bond Fund Allocation for Low-Income Historic Housing Rehabilitation

Program 7. Sale of HOME Property at 1218 East Garfield Councilwoman Pastor provided a motion to approve items 3 through 7. Vice Mayor

Valenzuela seconded the motion, which passed 3-0. 8. PlanPHX Update Deputy City Manager, Deanna Jonovich, introduced Alan Stephenson, Planning

and Development Director, to provide an update on the PlanPHX General Plan. Mr. Stephenson thanked the Subcommittee and introduced Sandy Hoffman, Deputy Planning and Development Director, and Josh Bednarek, Principal Planner, to provide an overview of the implementation of the PlanPHX General Plan. Mr. Bednarek stated the implementation of PlanPHX would occur in three-interconnected phases. Mr. Bednarek discussed the three phases of: Village Character Plans, Mapping Exercises, and Place Types. He reviewed the Village Character Plan Template Booklets, the Village Planning Committees would be using along with the tools available in the template. Mr. Bednarek stated phase-two would involve mapping exercises using the completed Character Plans as a guide. He further stated the mapping exercises would help the Village Planning Committees identify areas of growth, retrofit, and preservation.

Vice Mayor Valenzuela left the meeting at 10:13 a.m. Mr. Bednarek stated the third phase of implementation would require the Village

Planning Committees and staff to evaluate each of the designated areas of growth using a framework with existing and planned infrastructure. Mr. Bednarek concluded with a discussion of community outreach strategies and provided a timeline of implementation.

Councilwoman Pastor asked if new signs for the Villages were going to be installed

to replace older, deteriorating signs. Mr. Stephenson stated the current budget had not allocated funding for new signs but he would speak with the City Manager’s Office in reviewing the request. Councilwoman Pastor suggested coordinating with Villages to see what the costs would be and to raise the money to replace the older signs. Mr. Stephenson stated staff would review this option.

Chairwoman Gallego thanked staff for the emphasis in aligning growth with

infrastructure. Vice Mayor Valenzuela returned to the meeting at 10:17 a.m. Chairwoman Gallego congratulated staff on Roosevelt Row being recognized as one of the greatest places in the United States. Mr. Stephenson stated the department would also collect an award for Reinvent Phoenix from the Arizona Planning Association later in the month.

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Chairwoman Gallego also thanked staff for outreach and engagement efforts made in the community.

Vice Mayor Valenzuela stated the litmus test for PlanPHX occurred at the polls and

the work completed speaks to a good job staff has done collectively and in engaging the community. Vice Mayor Valenzuela asked how much outreach effort was taken into the high schools. Mr. Bednarek stated partnerships were made with schools involving video mapping activities and other exercises.

Chairwoman Gallego asked what feedback was given regarding transportation. Mr.

Bednarek stated staff was working with Megan Neal in Public Transit to connect PlanPHX with Transit 2050 and the Complete Streets program. Mr. Stephenson stated Mr. Bednarek has a working group in place with other department representatives.

9. Blight Liens and Foreclosure Pilot Program Chris Hallett, Neighborhood Services Director, was introduced to provide an update

on the Blight Liens and Foreclosure Pilot program. Mr. Hallet provided an update on the use of polycarbonate materials on abated properties throughout the City. He also discussed the modification of the Neighborhood Preservation Ordinance, Board Up Standards to reduce the temporary board up timeframe from 180 days to 90 days. Mr. Hallett provided statistics of properties following these new standards. Mr. Hallet also discussed the process to review delinquent liens and recommend vacant properties for the City’s foreclosure process. Mr. Hallett provided amounts collected in abatements liens from this process. He concluded by discussing new heating and cooling requirements for multi-family residential properties.

Chairwoman Gallego stated the update was good news. She stated she has

received positive feedback from police officers regarding the new board up standards.

Vice Mayor Valenzuela thanked staff on changes in the cooling and heating

standards. Councilwoman Pastor asked if apartment complexes were held to the same heating

and cooling standards as the multifamily rental properties. Mr. Hallett stated he would follow up on her question.

10. Funders Collaborative Homeless Update Human Services Director Moe Gallegos was introduced to discuss the Funders

Collaborative Homeless update. Along with Mr. Gallegos were: Bruce Liggett, Maricopa County Human Services Director, Michael Trailor, Arizona Department of Housing Director, Brain Spicker, Vice President of Community Impact for Valley of the Sun United Way, and Jeff Alexander, Police Department Central City Precinct Commander.

Mr. Gallegos discussed the closing the Men’s Overflow Shelter (MOS) owned by

Maricopa County and operated by Central Arizona Shelter Services (CASS). He

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stated combined resources were utilized to offer a housing first strategy to move people out of the MOS. Mr. Gallegos stated 55 individuals were rapidly rehoused using this strategy. Mr. Gallego stated a coordinated assessment was also used to understand the population of the MOS. He stated the data acquired from the coordinated assessment allowed additional resources to house individuals. He stated this was completed through a joint project funded by Maricopa County, City of Phoenix, Arizona Department of Housing, and Arizona Department of Economic Security. Mr. Gallegos discussed the partnerships created in finding permanent housing through Housing Choice Vouchers and funding from Valley of the Sun United Way (VSUW). Along with these efforts, Mr. Gallegos also discussed work completed by staff in procedures to remediate encampments and for engagement to provide services. He thanked all staff and partners who participated in this process. Mr. Gallegos concluded by discussing the recognition of the need for organizational restructuring within CASS and the Human Services Campus. He stated the systems change would allow for greater coordinated entry and housing placement. He also stated this would allow for the rightsizing of resources to better resolve the issue of homelessness. Chairwoman Gallego thanked staff for their collaboration on the issue. Mike Bielecki provided comment in support of the work completed by staff. Mr. Bielecki further added the issue of homelessness is a complex, dynamic issue and that CASS will need to continue to recognize the issue. Chairwoman Gallego asked if CASS was conducting outreach within the communities surrounding the campus. Mr. Bielecki stated there was a neighborhood representative on the CASS Board but he does not know of any other outreach efforts.

Vice Mayor Valenzuela stated he supported the work completed by staff and the comments made by Mr. Bielecki.

Councilwoman Pastor stated she better understood the complexity of the issue after

spending time with staff engaging individuals in the encampments. She further stated the work needsto be continued and more funding is required to continue to address the complex issue.

Chairwoman Gallego stated the number of individuals being rehoused was great

news and thanked VSUW and United Methodist Outreach Ministries (UMOM) for their collaborative efforts. Chairwoman Gallego asked what kind of work was being done with homeless women and families. Mr. Gallegos stated UMOM is also working on rapid rehousing and services for single women and families. Mr. Spicker stated the influence of the resources coming together and being provider informed has changed the idea of getting to functional zero by including women, families, and veterans.

Mr. Liggett provided additional information on work being completed to help

homeless individuals with mental illness. He also discussed the outreach efforts being completed within the neighborhoods concerning this population of homeless individuals.

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Chairwoman Gallego thanked Mayor Stanton for engaging other mayors throughout the County and working towards a regional solution. Chairwoman Gallego asked how other cities are working to address homelessness. Mr. Gallego stated Mesa recently opened new centers and is providing services for homeless individuals. He further stated significant progress in funding for collaborative efforts and community resources have come together. He stated more still needs be completed as the issue is complex.

Chairwoman Gallego stated work with VSUW on bringing a grocery store downtown

may provide additional resources for newly rehoused individuals. 11. Call to the Public No comments were made by the public.

12. Request for Future Agenda Items No requests for future agenda items were made. 13. Adjournment Chairwoman Gallego adjourned the meeting at 11:06 a.m. Respectfully submitted, Nick Valenzuela Management Intern

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Neighborhoods, Housing and Development Subcommittee, November 17, 2015, Item 3

CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Moises Gallegos

Human Services Director

SUBJECT: QUARTERLY HOMELESS UPDATE JULY - SEPTEMBER

This report provides the Neighborhoods, Housing and Development Subcommittee with an update on activities between July 1 and September 30, 2015, which are helping to alleviate homelessness in the City of Phoenix. The Issue City of Phoenix initiatives continue to utilize the Housing First model, targeting the highest priority populations, including homeless veterans, chronically homeless families and individuals, and homeless youth. The main strategies include: Managing to the Numbers The region continues to address chronic homelessness through a focused collaborative effort. As of September 30, 2015, 1622 chronically homeless households were housed, including 945 single individuals, 259 of whom were veterans, and 246 families. The Maricopa Regional Coordinated Access System began operation at the Family Housing Hub (FHH) in August 2014. The FHH serves as the central point of entry for families into the continuum of homeless services. Through September 2015, the FHH fielded 25,267 calls and engaged 3,095 families. Of those families, 654 (21 percent) were referred to more appropriate services and only 24 percent of those individuals returned to the FHH for homeless services. The Human Services Campus Welcome Center (WC) is the central Coordinated Access site for singles. In February 2015, the WC expanded its hours and changes were made to campus policy to require clients accessing the dining hall to have a campus ID. These changes served to significantly increase the number of individuals assessed through the center from 4,423 in all of 2014 to 6,135 in the first nine months of 2015. From January to September, 17 percent (1,286 individuals) of all clients seen (7,657 individuals) were either diverted to appropriate housing or did not require shelter or housing services through the Campus. Additionally, 6 percent (455 individuals) were connected to crisis services and 59 percent (4,533 individuals) were connected with emergency shelter through Central Arizona Shelter Services (CASS) or the overflow shelter operated by the Lodestar Day Resource Center (LDRC) and St. Vincent de Paul (SVdP).

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Starting in Our Own Backyard Each housing authority is permitted to establish preferences to reflect the housing needs and priorities of its particular community. City of Phoenix preferences include families who live or work in Phoenix, families displaced by the City, and special populations including chronic homeless or homeless youth. In December 2012, the Housing (HD) and Human Services Departments (HSD) issued a Request for Proposals (RFP) for housing and supportive services using the “Housing First” model. Through the RFP, HD allocated 75 Section 8/Housing Choice Vouchers (HCV) among seven non-profit providers specializing in assisting homeless populations. HSD provided funding for wrap-around support services to augment the HCVs and help families reach sustainability. Through September 30, 2015, 68 households have leased housing units through these programs and two more are in process. In January 2015, the City Council approved the prioritization of up to an additional 275 HCVs, or five percent of the HD allocation, to provide housing for chronically homeless individuals and families. Through a formal partnership agreement, wrap-around support services are provided. Through September 30, 2015, 23 households have leased housing units through these programs and 16 more are in process. Community Engagement MROP Partnership: Through collaboration between the Phoenix Police Department (PD), City Prosecutor’s Office, and HSD, the Misdemeanor Repeat Offender Program (MROP) provides services which both reduce crime and address core issues of homelessness. Through September 2015, 2,776 offenders had been identified by PD. Of those, 424 individuals were entered into the tracking system during the quarter, allowing patrol officers access to their history to assist them when they were encountered on the street. The City Prosecutor’s Office has worked with 67 individuals through enhanced prosecution efforts, and 12 individuals have received case management services through HSD or Southwest Behavioral Health (SWBH). Frequent Utilizer System Engagement (FUSE): FUSE is a national pilot program model which helps communities break the cycle of homelessness and crisis among individuals with complex behavioral and physical health challenges who are the highest users of emergency rooms and other costly crisis service systems. The FUSE program is a collaborative effort between Phoenix Fire Department, HSD, Circle the City (CoC), and SWBH. Since the inception of the program, two individuals have been provided housing through HCVs and are receiving wrap-around case management services from SWBH. An additional five individuals are pending background checks through the HD. Men’s Overflow Shelter (MOS) Transition: Since the inception of the MOS transition initiative in June 2014, the Collaborative, convened by Valley of the Sun United Way (VSUW), and composed of VSUW, Maricopa County, Arizona Department of Housing (ADOH), Arizona Department of Economic Security (ADES), and the City of Phoenix, has successfully eliminated unsafe conditions at the MOS facility; opened safe,

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temporary overflow shelter services to meet the immediate need; obtained and prioritized resources to permanently house up to 500 individuals; and initiated an in-depth examination of the service delivery system at the Human Services Campus. Collectively, the Collaborative has aligned and targeted more than $5 million in public and private resources, including $2.5 million of new funding to respond to the unmet need and support the transition to effective, sustainable solutions. July through September 2015, 32 individuals who were living on the streets or in temporary overflow shelter were housed, and dozens more were engaged in the process. Although this is a significant step towards ending homelessness for the current underserved population in downtown Phoenix, the development of a comprehensive, coordinated system of care with the capacity to meet the diverse needs of homeless persons with multiple barriers will be required for sustainability. The Collaborative is committed to driving rapid results and actively monitoring progress, while remaining focused on long-term solutions for ending–not managing–homelessness. As the process moves forward, the Collaborative will continue to explore options through open dialogue and opportunities for shared leadership in pursuit of solutions which are transparent, data driven, and cost effective. Recommendation This item is for information only.

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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Cindy Stotler

Acting Housing Manager

SUBJECT: SECTION 8 DESIGNATED AS “HIGH PERFORMER”

This report provides information to the Neighborhoods, Housing and Development Subcommittee on the recent designation of the Housing Department’s Section 8 Housing Choice Voucher Program as a High Performer by the U.S. Department of Housing and Urban Development (HUD). THE ISSUE The City of Phoenix Housing Department recently received a “High Performer” designation on the Section 8 Management Assessment Program (SEMAP) assessment for FY 2014-15. HUD uses SEMAP to measure the performance of public housing agencies that administer the Section 8 Housing Choice Voucher program in fourteen key areas. HUD annually assigns housing agencies a rating on each of the indicators and an overall performance rating of high, standard or troubled. HUD awarded the High Performer designation to the Housing Department based on a score of 135 points out of 135 points (100 percent). OTHER INFORMATION The fourteen indicators include: selection from the waitlist in accordance with program regulations, ensuring rents are determined to be reasonable, establishing rent standards that are within HUD guidelines, calculating rental assistance accurately, regularly updating utility allowance schedules, ensuring units comply with housing quality standards (three indicators), completing timely annual recertification and inspections, performing quality control inspections to ensure housing quality, ensuring landlord and tenants promptly correct housing deficiencies, expanding choice outside areas of poverty or minority concentrations, and ensuring that all available housing choice vouchers and budget authority are maximized. RECOMMENDATION This report is for information only.

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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Cindy Stotler

Acting Housing Director

SUBJECT: INFORMATION REGARDING PROCUREMENT OF PROPERTY MANAGEMENT CONTRACT(S) FOR THE HOUSING DEPARTMENT’S AFFORDABLE HOUSING PORTFOLIO

This report provides information to the Neighborhoods, Housing, and Development Subcommittee regarding the upcoming procurement of property management services for the Housing Department’s Affordable Housing Portfolio (“Portfolio”). The Housing Department’s (Housing) Affordable Housing program expands the impact of federally-supplemented housing, such as Public Housing and the Section 8 program, by providing additional housing options to persons having similar income characteristics. The Portfolio includes 18 multifamily residential housing properties with 1,282 rental units, providing affordable housing to low- to moderate-income residents. Property management services for the entire Portfolio are provided by a private firm under contract to the City of Phoenix. The current contract for these services expires June 30, 2016. All management fees are paid through rent revenues that are generated from each property. THE ISSUE Currently, property management services for the Portfolio are provided by one firm contracted by Housing to manage the day-to-day operations of the properties since the 1990s. This has been a satisfactory relationship, but offers no means to assess efficiency of services, maintenance, and management of vacancy rates across the Portfolio. With the economy recovering, there are a number of qualified property management companies in the Phoenix area. To encourage competition, Housing is dividing the current Portfolio into three groups and issuing a Request for Proposals (RFP) or Invitation for Bid (IFB) for property management services to allow for potential multiple award of contracts. Housing’s objective is to increase competition, resulting in cost savings, improved contractor performance, and reduce the risk of service interruption in the event a property management company does not perform. To provide for a reasonable level of potential income for each group of properties, Housing has developed a strategy to divide the portfolio into approximately equal groups in the number of units, their age, and the condition of the properties.

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Housing is currently working with the Law and Finance Departments to determine the method of procurement based on scope of work, current City standards, and industry norms. It will include the standard terms, conditions and other necessary requirements. Responsive proposals will be evaluated by a diverse panel in compliance with the City Procurement code. OTHER INFORMATION This report is for information only.

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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Cindy Stotler

Acting Housing Director

SUBJECT: MODIFICATION TO EXISTING AFFORDABLE RENTAL HOUSING LOANS

This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend City Council approval to modify existing loans under the Affordable Rental Housing Program. THE ISSUE The City’s Affordable Housing Loan Program fosters sustainability and preservation of affordable rental housing in Phoenix and helps the loan requirements ensure rental rates that are affordable for very low income households in Phoenix (incomes at or below 50 percent of the Area Median Income, presently $30,950 a year for a family of four). Currently, there are 21 loans in the City’s Affordable Housing Loan Program portfolio with compounding of accrued interest and/or containing two separate interest rate applications (dual interest). Most of these loans are repaid using rental income after payment of necessary operating expenses. During the economic downturn, many of the properties with this type of loan suffered operating losses resulting in an exponential increase to loan balances due to compounding of unpaid interest. Cash flow for repayment is typically limited due to the affordable nature of these properties. Loan balances are due and payable in full at maturity, which is 40 years from origination for the majority of the loans. Compounding interest has an inherent negative effect on the long-term sustainability of the City’s affordable rental housing stock. Increased loan interest costs take away from the long-term financial means for maintaining the livable conditions of the affordable rental properties. The City contracts with the private sector for servicing loan repayment collection and management. Servicing costs to manage compounding and dual interest loans repaid from surplus cash are up to 13 times higher than non-compounding interest loans also repaid from surplus cash. Eliminating the compounding effect would result in savings of up to $22,710 in servicing fees over the remaining term of the agreement. Current loans affected by compounding and/or dual interest are: Borrower City’s Contract No. Community Housing Partnership, Inc. 67802

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Community Housing Partnership, Inc. 69127 Community Housing Partnership, Inc. 71944 PRIDE 69428 Homeward Bound 71202 Homeward Bound 75838 Arizona Housing, Inc. 79720 Hacienda, Incorporated 84787 Phoenix Broadway Associates LP 97116 Maryland Senior Housing LP 114945 Escala Central City, LP 117256 Madison Jefferson Properties, LLC 124065 Casa de Paz III Apartments LLC 117232 Amber Pointe Apartments LLLP 124280 Coral Pointe Apartments LLLP 125936 Oasis TC, LLC 130000 Memorial Towers LP 117219 Sahara Luna, LP 116777 Greenway Cove Apartments, LLLP 115678 Fillmore Place Apartments LP 100487 Indigo Pointe Apartments LLLP 123858 OTHER INFORMATION The current principal balance of each loan, which includes all accrued and unpaid interest to date of modification, will be frozen at the time of the loan modification. All future interest accrual will be based on simple interest calculations at the existing interest rate of each loan. Existing payment frequency and maturity date for each loan will remain unchanged. The loans listed above impact 203 units of affordable housing located in various City Council Districts throughout Phoenix, and include both non-profit and for-profit developers. RECOMMENDATION Staff requests the NHD Subcommittee recommend City Council approval to modify the loans listed in this report to eliminate compounding of accrued interest and/or dual interest rates and convert to a simple interest calculation consistent with the City’s current Affordable Housing Loan Program and Underwriting Guidelines.

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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Michael Hammett

Volunteer Phoenix Program Manager

SUBJECT: HANDS ON GREATER PHOENIX AMERICORPS VISTA OPPORTUNITY

This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend City Council approval to apply for four AmeriCorps VISTA members through HandsOn Greater Phoenix. THE ISSUE In December 2015, the City of Phoenix will have the opportunity to apply for additional AmeriCorps VISTA members to address the needs of low- to moderate-income residents of Phoenix during FY 2016-17. The VISTA members will serve in the Human Services Department and Council District Offices 4, 5 and 7. OTHER INFORMATION AmeriCorps VISTA is a program of the Corporation for National and Community Service created in 1965 as a vehicle to fight poverty in the U.S. At this time, HandsOn Greater Phoenix is the only approved intermediary organization in Maricopa County eligible to accept requests from the City of Phoenix for AmeriCorps VISTA resources. The organization has set aside resources to meet the City’s needs. FINANCIAL IMPACT The value of a VISTA member to an organization is estimated at $42,000 per year. As the host organization, the City of Phoenix will pay a maximum of $11,000 per VISTA member per year of service. The total cost of this request will not exceed $44,000 in FY 2016-17. RECOMMENDATION Staff requests the NHD Subcommittee recommend City Council approval to apply for four AmeriCorps VISTA members to serve the residents of Phoenix in 2016.

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CITY COUNCIL REPORT

TO: Milton Dohoney Jr.

Assistant City Manager

FROM: Thomas Remes

Government Relations Director

SUBJECT: 2016 STATE AND FEDERAL AGENDA – COMMUNITY DEVELOPMENT

This report seeks input from the Neighborhoods, Housing and Development subcommittee on the city’s state and federal legislative priorities in the area of community development for the 2016 State and Federal Agenda. It is anticipated that the complete 2016 State and Federal Agenda will be presented to the Mayor and Council at the December Policy meeting. THE ISSUE Each year, the Office of Government Relations requests that City departments submit state and federal requests and issues for the City’s State and Federal Agendas. Once input is received from the Mayor and Council, the 2016 State and Federal Agendas will define the City’s legislative priorities and guide the City’s lobbying activities during the Second Regular Session of the 52nd Arizona Legislature and the 114th Congress, 2nd Session. Guiding Principles In order to prioritize and guide lobbying efforts at the state level, staff recommends that the Mayor and Council endorse familiar, but critical, guiding principles as the City’s highest priorities: maintain and protect shared revenues, oppose unfunded mandates, and preserve local authority, and protect water resources. Staff recommends the City oppose any reduction of shared revenues, which make up approximately 34 percent of the City’s general fund, helping to pay for police, fire, streets, parks, and other critical City services. Staff also recommends the City oppose state legislative efforts to shift new responsibilities to the City without accompanying funds. Staff recommends the City work to protect the ability of the Mayor and Council to set policy at the local level and oppose legislation that preempts local authority. Finally, while Phoenix and the Valley have sufficient water resources for now and the foreseeable future, the Arizona Department of Water Resources and stakeholders from statewide organizations are working to coordinate efforts in building adequate infrastructure and protecting water resources. Staff recommends that the city participate in these efforts to ensure that Phoenix’s water supply is protected. In order to prioritize and guide lobbying efforts at the federal level, staff recommends that the Mayor and Council endorse two guiding principles as the city’s highest priorities: promote fiscal sustainability and protect local authority. To promote fiscal

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sustainability, the city would, for example, support efforts to achieve a fair share of federal funding for Phoenix compared with other cities of equivalent population. Staff would also oppose federal actions imposing unfunded mandates on cities or reducing funding available for important programs or infrastructure needs. To protect local authority, staff would support federal action that empowers local communities and oppose efforts to preempt local decisions. Federal Agenda Staff recommends the following federal legislative priorities for inclusion in the 2016 Federal Agenda: Community Development Block Grant – Fair Share Community Development Block Grant (CDBG) funds are the premier tool for the city to achieve widespread and sustainable revitalization of neighborhoods. Decreases in funding over the last ten years, paired with a funding formula that does not benefit fast-growing cities like Phoenix, have been detrimental. Diminishing funds result in fewer improvements to low- and moderate-income areas of Phoenix and fewer services for the city’s most vulnerable populations. Over the past seven years, the Phoenix allocation has been reduced by $6 million to a new low of $14.5 million. At the same time, needs have escalated in the community due to the housing, unemployment and economic crisis. The CDBG allocation formula is based largely on population and poverty factors, per the Housing and Community Development Act. In 1978, the U.S. Department of Housing and Urban Development (HUD) introduced an optional second formula that provided increased funding if a grantee lost population and lessened the weight of the poverty factor. A HUD 2015 report concluded that this caused significant inequity in funding throughout the country based on need. For example, Phoenix, which is the sixth largest city in the country, is thirteenth in CDBG funding and receives less funding per capita than many other cities. The outdated CDBG distribution formula must be reformed to reduce the funding disparity between older communities and fast growing central cities like Phoenix. Staff recommends advocating for:

• Funding CDBG at the 2012 level, $3.3 billion nationally. • Reforming the outdated CDBG distribution formula to reduce the funding

disparity between older communities and fast-growing cities like Phoenix. Choice Neighborhoods Program The Choice Neighborhoods Program is intended to be a successor to the HUD HOPE VI program and provides competitive grants centered on the revitalization of severely distressed public housing and the surrounding neighborhood. Choice Neighborhoods helps advance the Housing Department’s overall mission by providing resources for

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comprehensive initiatives that address the multifaceted problems that face struggling neighborhoods with distressed public housing. Choice Neighborhoods is focused on three core goals: housing, people and neighborhood. To achieve these core goals, communities must develop a comprehensive neighborhood revitalization strategy, or Transformation Plan. Local leaders, residents and stakeholders such as public housing authorities, cities, schools, police, business owners, nonprofit partners and private developers come together to create and implement the Transformation Plan that transforms distressed public housing and addresses challenges in the surrounding neighborhood. The program is designed to catalyze critical improvements in neighborhood assets, including vacant property, housing, services and schools. Choice Neighborhoods is part of a broader movement to think more holistically and comprehensively about affordable housing and concentrated poverty. Each year, HUD awards separate Choice Neighborhoods Planning Grants and Implementation Grants. Planning Grants are used to develop Transformation Plans and build local capacity, while Implementation Grants help communities realize a thoroughly-developed vision for comprehensive neighborhood revitalization. In June 2015, the mayor and city council approved an application for the Choice Neighborhoods Planning Grant with Gorman & Company as the city’s co-development partner. The Housing Department’s application for a Choice Neighborhoods grant would focus on the East AMP public housing communities in the vicinity of 17th Street and Van Buren Avenue and would aim to turn outdated public housing into mixed-income communities with access to quality education, transportation and other vital community services. Residents of the targeted community would gain access to needed high quality affordable housing as well as access to community services to achieve economic self-sufficiency and improve quality of life. In addition to the impact to residents’ lives, a physical improvement within the city would be achieved by rebuilding outdated, distressed public housing buildings from the 1950s and 1960s into new updated communities with modern-day amenities and improved connectivity. Staff recommends support for continued funding of the Choice Neighborhoods Program. HOME Investment Partnership Program HOME Investment Partnership Program (HOME) funds are used to leverage the creation or rehabilitation of a significant number of affordable housing units through the city. HOME funds are used in Phoenix to create affordable housing units for low-income households and to provide homeownership assistance for families at 80 percent or below of the Area Median Income (AMI). There continues to be a need in the Phoenix community for affordable rental and homeownership opportunities for residents. The HOME program provides those opportunities. The Housing Department, through development loans with HOME funds, partners with non-profit and for-profit affordable housing developers alike to create new affordable rental units. These units typically remain affordable for 30 or more years. Some funds are reserved to assist first-time homebuyers with down payment and closing costs, to provide housing rehabilitation

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programs to low-income homeowners and to provide tenant based rental assistance for homeless youth ages 18-24. HOME funds leverage low-income housing tax credit (LIHTC) transactions and help families achieve the dream of homeownership. Without the HOME program, there would be limited to no funding to provide low-cost gap financing to leverage LIHTC development in Phoenix especially for those developments that serve homeless and special needs populations. The city’s current allocation of HOME funds is approximately $3.8 million. HOME funds a wide range of activities, including building, buying and/or rehabilitating affordable housing for rent or homeownership and providing direct rental assistance to low-income residents. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. HOME funds are awarded annually as formula grants to participating jurisdictions. The program’s flexibility allows states and local governments to use HOME funds for grants, direct loans, loan guarantees or other forms of credit enhancements or rental assistance or security deposits. Staff recommends supporting restored funding for HOME. Public Housing Capital Fund Program Over the past several years, Public Housing Capital Fund Program (CFP) funding has fallen significantly behind the cost to maintain and modernize aging public housing stock. Continuous federal funding cuts and reductions in the CFP have had a significant impact on the condition of the city’s public housing. Inadequate capital investment means that facilities are maintained for longer than their designed life, further leading to systems failures, tenant displacement, utility inefficiency and very high operating costs. In FY 2015, it is estimated that inadequate CFP funding cost the city approximately $800,000 in additional maintenance costs. Over the course of FY 2015, the Housing Department has had to plan around significant funding reductions as the federal budget has continued to be uncertain. The CFP is a comprehensive, formula-driven program that serves as the primary source of financing for public housing rehabilitation and development. The CFP supports the Housing Department’s mission by awarding funds annually for development, financing, rehabilitation and preservation of public housing. Failing to maintain the viability of public housing through capital investment may result in the loss of public housing units. Continued capital investment is needed because the demand for affordable housing has surged. A better-funded CFP is necessary, given that it is the only federal program that deals directly with the preservation and rehabilitation of public housing. Staff recommends seeking an increase in the CFP annual allocation formula to a level that can support the maintenance of aging public housing stock. Section 8/Housing Choice Voucher

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The Section 8 Housing Choice Voucher (HCV) program is the nation’s largest rental assistance program. It provides funding that enables extremely low-income families, seniors and disabled to secure decent, affordable housing of their choice in the private rental market. The city’s HCV program does not receive any general funds and must support itself with the HCV administrative funding it receives. These funds are used to support staff and operations of the HCV. In the past three years, the administrative funding has experienced significant cuts by the federal government. The city received administrative funding prorated at 69 percent in FY 2013, 75 percent in FY 2014, and an estimated 82 percent in FY 2015. To date, the city has been able to utilize reserves from prior years to maintain service levels. However, at the current rate, Section 8 administrative resources will be depleted in 12 to 18 months. For the past three years, the city’s Section 8 program administrative reserve balance dropped from $2.6 million in FY 2013, to $1.8 million in FY 2014 and then to $1.2 million in FY 2015. These reductions are not sustainable and will eventually result in staff cuts and a reduction in services to the community. Staff recommends seeking:

• Support for an increase in Section 8 administrative fees to a minimum of 100 percent of the formula.

• Administrative relief to allow public housing authorities more autonomy to use funding in whole (by combining housing assistance payment and administrative funding) to ensure more efficient and effective administration of this program.

• Support for enactment of other Section 8 reforms that have been adopted in the House, but not enacted into law.

Public Housing Operating Subsidy Continuous federal funding cuts and prorations have had a significant impact on the condition of the inventory and service levels available in public housing. The Housing Department continues to review its financial position to minimize the impact on core services caused by ongoing funding cuts, sequestration, and burdensome administrative regulations. The Operating Subsidy is currently funded at only 85 percent of the value set by regulation and has been significantly underfunded since the Recession. For every $100 of operating and maintenance funding needed to preserve public housing units, only $85 was available in FY 2015. This proration cost the city $1.5 million. Public housing serves many of the most vulnerable households in the city, with 74 percent of all assisted households having incomes that fall below 30 percent of the median income (considered “extremely low-income”). The vast majority of public housing residents cannot afford to pay enough toward rent to cover the costs of operating a property and earn too little to afford market rate housing. Operating Subsidy funds combined with tenant rents are meant by HUD to provide the city with the resources needed to manage, maintain and operate its properties and provide supportive services for residents. The Housing Department has had to plan

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around significant funding reductions as the federal budget has continued to be uncertain. Full funding of the Operating Subsidy makes it possible for the Housing Department to maintain its public housing properties. Without improved Operating Subsidy resources, as many as 1,800 public housing units would be lost over time. Residents would be at risk of homelessness. The city faces the challenge of responding to the enhanced demand for deeply affordable rental housing, facing tough decisions about the allocation of other, already scarce, federal, state and local resources. Staff recommends seeking:

• Restoration of federal funding for the Public Housing Program Operating Subsidy to a minimum of 100 percent of the formula level.

• Support of a reduction in federal requirements, (e.g., streamlined re-examinations; every other year re-exams for elderly/disabled on fixed incomes; and move effective community service requirements).

Rental Assistance Demonstration The Rental Assistance Demonstration (RAD) program was introduced by HUD in 2012 to give public housing authorities (PHAs) a powerful tool to preserve and improve public housing properties and address the $26 billion dollar nationwide backlog of deferred maintenance. Initially, HUD capped the number of units eligible for the program at 60,000 nationwide. In 2015, Congress increased the cap to 185,000 units. The Housing Department is considering applying for RAD in order to convert public housing units from their current form of Operating Subsidy to a long-term, renewable, project-based Section 8 rental assistance contract. Participation in RAD enables the city to: (1) increase the self-sufficiency of public housing operations; (2) provide more stable funding to address capital needs; and (3) allow for the use of low-income housing tax credits as well as private sources of funding to make capital improvements. Staff recommends seeking:

• Support of continued expansion of the RAD program and number of eligible units.

• Changes in the method of calculating rents and updating of the RAD tool used to reflect current market trends.

Moving to Work Program Moving to Work (MTW) is a demonstration program for PHAs that provides them the opportunity to design and test innovative, locally-designed strategies that use federal dollars more efficiently, help residents find employment and become self-sufficient and increase housing choices for low-income families. MTW gives PHAs exemptions from many existing public housing and voucher rules and more flexibility with how they use their federal funds. MTW PHAs are expected to use the opportunities presented by MTW to inform HUD about ways to better address local community needs.

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Staff recommends seeking: • Support for expansion of the MTW program to allow PHAs more flexibility

to use funding where it is most needed. • Support from Congress to authorize the Phoenix PHA to become part of

MTW or that future requests for application under MTW authorize participation by larger PHAs.

Head Start The city of Phoenix Early Head Start/Head Start program permits low income families access to quality services that support school readiness efforts from birth to kindergarten entry. Specifically, the child care partnership grants allow some parents to return to the workforce or increase their work hours knowing that their children are safe and in an environment specifically designed to address development and school readiness. The preschool development grant assists with efforts to increase the number of children ready for school and ensuring all Arizona children are reading at grade level by third grade, thus avoiding retaining children and additional costs to the state. Additional preschool programs and partnerships will also result in new jobs with decent wages and benefits. The city of Phoenix receives one of the lowest costs per child in Arizona. In order to provide the high quality of service required by Head Start, the city of Phoenix deserves equal funding to other grantees in the state. The city of Phoenix is only able to serve 2.2 percent of the eligible Early Head Start children and 27 percent of the eligible Head Start children, compared to a national average of 4 percent for Early Head Start and 42 percent for Head Start. This inequity is compounded by a lack of other public preschool programs in the area. According to the annual Kids Count, only 34 percent of Arizona’s three and four year old children are attending preschool, compared to 48 percent nationally. Research demonstrates that preschool participation is a significant predictor of school success, especially for low income children. Staff recommends:

• Supporting continued or increased funding for Head Start Birth-to-Five. • Supporting Phoenix receiving a fair share of Head Start Birth-to-Five

funding. • Supporting Early Head Start Child Care Partnerships funding. • Supporting continued funding of the Preschool Development grant.

Community Services Block Grant The Community Services Block Grant (CSBG) leverages local, state and federal funding to develop and implement high impact strategies to address poverty and social welfare within the community. Examples of high impact strategies include:

• Earned Income Tax Credit (EITC) Program – The city is operating the 13th Annual EITC campaign through a coalition of stakeholders and 258 volunteer tax preparers to promote the EITC Program, provide free tax preparation services,

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and provide information on money management and predatory lending practices. To date the city has assisted over 74,341 residents receive almost $86 million dollars in tax refunds.

• Employment Initiative – To improve performance in job placements, the city’s Community Action Program has developed agreements with local employment agencies. In 2015, staff assisted with the placement of 598 individuals into jobs at over $12.50 per hour, on average, and approximately 74% of the placements were benefit eligible positions.

Reductions to CSBG would significantly impair the city’s capacity to address local needs. CSBG funding supports employment, food, housing, health and emergency assistance to low-income families and individuals (including those without children who do not qualify for other types of assistance such as Medicaid), the homeless and the elderly. The city of Phoenix receives $1.3 million in CSBG annually. Every dollar in CSBG funds received by the city leverages $39 in matching dollars from federal, state and local sources. Because of this leveraging, any reduction in CSBG would have a far more consequential impact than the actual reduction. Staff recommends urging Congress to support reauthorization of CSBG at $850 million nationally for FY 2016 and maintain formula-based allocations to support local Community Action Programs. Family Advocacy Center The city of Phoenix Family Advocacy Center (FAC) provides advocacy, case management, forensic exam and counseling services to victims of violent interpersonal crimes. During FY 2014-15, the FAC served 3,741 clients. Additionally, the FAC provided 750 forensic sexual assault exams. There were over 385 protective orders and over 570 crisis intervention sessions provided to FAC clients. The following are items of importance to the city:

• Maintain new Violence Against Women Act (VAWA) funding, which increased funding to Arizona funding from approximately $8 million to more than $40 million. This funding is available to all criminal justice partners, including victim services, the courts, prosecution and law enforcement.

• Maintain Victims of Crime Act (VOCA) funding and uphold the Commerce, Science and Justice appropriation bill, which states that Congress is not allowed to move any VOCA funding to non-VOCA federal programs.

• Increase funding for the Futures Without Violence. These services are a critical funding source for domestic violence shelters and provide the primary funding source for the National Domestic Violence Hotline.

The FAC has applied for Office of Violence Against Women (OVW) and VOCA funding to expand and enhance services both at the FAC, the Phoenix Municipal Court and

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through a mobile advocacy program. Grant opportunities such as these are the only way to expand services at the present time and community programs that rely on this funding would be significantly impacted by a funding reduction or loss. The city program would also be impacted by a loss of these programs. FAC community partners (both on-site and community-based) are impacted by federal funding through VAWA and VOCA. Congress renewed VAWA and increased the funding available significantly for the 2015-16. This new funding level will enable programs to increase and improve services for sexual assault, domestic violence, human trafficking and other violent crimes. Maintaining VAWA funding, and not allowing a shift of funds from VAWA, will support an increasing demand of crime victim services. Increased Family Violence Prevention and Services (FVPSA) funding will help support domestic violence shelters and ensure the national domestic violence hotline remains operational. Additionally, the Arizona Coalition Against Domestic Violence, which advocates for domestic violence victims and issues at the state level, receives significant funding through FVPSA. Staff recommends Congress:

• Maintain the new VAWA funding model. • Uphold the Commerce, Science and Justice appropriation bill. • Increase funding for anti-human trafficking efforts and increase resources

available to victims. Homelessness The city of Phoenix has a well-established history of providing support and funding for community-based housing programs. For FY 2016, Phoenix received $1,305,385, a slight increase to funding received under the Emergency Solutions Grant (ESG) funding guidelines for emergency shelter, rapid re-housing, outreach activities, homeless support services and eviction prevention assistance. This funding will be split between city operations and contracted services provided by community partners. The city contracts with multiple emergency shelter services and pairs permanent housing vouchers with supportive “wrap-around” outreach and re-housing services. This partnering of programs focuses on chronically homeless families and individuals as well as unaccompanied youth. The city began a collaborative effort with the state of Arizona, Maricopa County Human Services and Valley of the Sun United Way in 2015. This partnership focuses on the closure of the men’s overflow shelter in downtown Phoenix and the resulting need to house those individuals. As a result of the partnership, 54 individuals have been housed and resources have been culled together to provide rapid re-housing and permanent supportive housing with wrap-around services to an additional 500 individuals. ESG funding provided a start to the housing effort and continues to play a part in ongoing community efforts. If funding is not renewed or is reduced, there would be a significant impact to the collaborative efforts that the community contracts support in terms of homeless

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programs/services. The region is heavily engaged in ending chronic homelessness by 2015 and a reduction of any kind would significantly impact that effort. Staff recommends Congress:

• Maintain full McKinney Vento/HEARTH Act funding. • Maintain a focus of implementing a regionally coordinated assessment

system in the Continuum of Care (CoC) and continue to provide funding opportunities for that activity.

Low-Income Home Energy Assistance Program Arizona and other warm weather states continue to receive less than a fair share of base Low-Income Home Energy Assistance Program (LIHEAP) funding. LIHEAP funding helps keep families safe and healthy through initiatives that assist families with energy costs. A “hold harmless” mechanism in the current LIHEAP funding formula assures cold weather states don’t receive less than they did under the previous funding formula, which was based on heating costs alone. Due to this “hold harmless” mechanism in the formula, Arizona and other warm weather states only receive a fair share when appropriations reach $5.1 billion. For Federal Fiscal Year 2015, Arizona received $21.58 million under the hold harmless override, of which the city of Phoenix received about $5.4 million. Without the language overriding the funding formula, the state would have received a projected $26 million, of which the city of Phoenix would have received about $6.5 million. More than 300,000 Phoenix households qualify for assistance, but there is only funding to help 10,100 (or 3.4 percent of the eligible households), far below the 30 percent to 40 percent levels many cold weather states receive. On average, Phoenix experiences 110 days with temperatures at or exceeding 100 degrees. Overnight lows do not drop below 80 degrees an average of 67 days each year. Temperatures this high are life threatening for those who cannot afford to cool their homes. According to the 2012 Arizona Department of Health Services Report, 118 heat-attributed deaths occur statewide annually. Thirty-three percent of the Arizona residents who died were over 65 years of age. Staff recommends Congress:

• Support full funding of $5.1 billion nationally in LIHEAP for FY 2016. • Support efforts to ensure Arizona receives its fair share of base LIHEAP

funding by avoiding clauses to shift additional funding back to cold weather states.

Workforce Development Phoenix Workforce Connection (PWC), an affiliate of the Arizona Workforce Connection, continues to improve the way it provides services to businesses and individuals. In order to offer and continue to enhance services to businesses, adults and

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youth as a local workforce delivery system, appropriate funding is required to grow and sustain workforce development services. Within the past four years, the city, through the leadership of the Local Workforce Investment Board and the city’s Community & Economic Development Department, has launched several industry sector partnerships led by businesses in the region. The role of economic and workforce development has been that of organizing convener and administrative support for the partnerships. To efficiently support these efforts and launch additional partnerships, an investment of dedicated funding is needed to sustain work in this area. The return on investment pays huge dividends when business and industry are able to have access to a trained and qualified workforce to grow the local economy. General resources and services available to businesses include talent acquisition through recruitment and screening of candidates, coordinating customized recruitment events and grants for worker training such as employer worker training and on-the-job training. To ensure the Workforce Innovation and Opportunity Act’s (WIOA) job-driven goals are strategically and successfully implemented, appropriate funding levels that allow substantial investments to support jobseekers in finding new employment opportunities and meet employer requirements for qualified workers are needed. Funding allocations for business and workforce development services offered through these funds allows the city to administer funds and provide oversight of operations for the local service delivery system. This includes subcontracting out a portion of funds to community-based organizations to provide direct services to adults and youth. These funds also allow the city to directly operate and staff three one-stop career centers, which provide services to adults and laid-off workers, and operate a business and workforce development center, which is focused on providing businesses with talent acquisition and retention services. Staff recommends:

• Continued support for appropriate funding levels that allow substantial investments for administering, convening and delivering job-driven services for the locally administered federal job-training program.

• Further engagement with the Arizona Congressional delegation about workforce needs in the region and the positive impacts of federal funding.

New Markets Tax Credit The New Markets Tax Credit (NMTC) program’s goal is to attract investment capital to low-income communities. Corporate investors are permitted to receive a tax credit against their federal income taxes in exchange for investments in NMTC’s low income census tracts. Since Congress created the NMTC Program in 2000, the Community Development Financial Institutions Fund (CDFI Fund) has made 912 awards, allocating a total of $43.5 billion in tax credit authority to Community Development Entities (CDEs) through a competitive application process.

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In Phoenix, the Phoenix Community Development Investment Corporation (PCDIC), a 501(c)3 non-profit, was created by the city of Phoenix to pursue this federal program. Since 2002, PCDIC has received $263 million in NMTC allocations. The allocations have been capitalized with tax credit investors and traditional lenders to structure financing for 29 projects valued at $791 million, with $336 million in NMTC financing and an additional private investment of $455 million. The NMTC loans are for acquisition, new construction and rehab of commercial real estate. NMTC loan deployment has generated 9,390 new jobs (full- and part-time) 3,877 construction jobs and retained 3,079 (full- and part-time) jobs within the city of Phoenix. The New Markets Tax Credit Extension Act of 2015 (S. 591), sponsored by Senator Roy Blunt of Missouri, would extend NMTC indefinitely, increase the NMTC allocation, index future allocation levels to inflation and provide AMT relief to NMTC investors and reauthorize the program and make the NMTC program permanent within the U.S. Department of Treasury. Staff recommends Congress make NMTC a permanent program within the U.S. Treasury Department. My Brother’s Keeper President Obama launched the My Brother’s Keeper (MBK) initiative to ensure that all youth have opportunities to improve their life outcomes and overcome barriers to success. The MBK Community Challenge encourages cities to implement a coherent cradle-to-college-and-career strategy for improving outcomes for all young people. The MBK Community Challenge is a call to action for leaders of communities across the nation to build and execute comprehensive strategies that ensure:

• All children enter school cognitively, physically, socially and emotionally prepared;

• All children read at grade level by third grade; • All young people graduate from high school; • All young people complete post-secondary education or training; • All youth out of school are employed; and • All young people are safe from violent crime.

The city accepted the MBK Community Challenge and is implementing comprehensive strategies that improve grade level reading, increase high school graduation rates and increase college attainment. Staff recommends pursuing federal and foundation grants and working with federal agencies and other stakeholders to support the City’s involvement in the MBK initiative. Remote Sales Tax Collection/Marketplace Fairness Act

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The issue of remote sales tax collection and taxing internet access has been the subject of ongoing debate in Congress. A May 2013 study sponsored by the U.S. Conference of Mayors, National League of Cities (NLC) and National Association of Counties (NACo) described the impact of the current system and the sales tax losses for e-commerce in 2011, 2012 and 2013. According to this study, over these three years, Phoenix lost $53.57 million in sales tax revenue. If Congress does not act, the city will continue to lose sales tax revenue generated via e-commerce sales by remote sellers. Staff recommends that the city monitor and participate in the discussion about remote sales tax collection and support legislation that would allow state and local governments to enforce existing state and local sales and use tax laws on remote retailers. Innovation Centers/Entrepreneurship The City is interested in identifying funding and resources to assist innovative businesses with growing in and relocating to Phoenix. One example of the City’s commitment to facilitating entrepreneurship is through the development of the Resource Innovation Campus (RIC). The RIC will include, among other things, available land leases for private sector innovators and manufacturers and a technology solutions incubator. Staff recommends exploring opportunities, including federal and foundation grants, to advance the cause of innovation centers and entrepreneurship in the City and raise the City’s profile. Luke Air Force Base Luke Air Force Base (Luke AFB) was established in 1941 on land donated to the federal government by the city. It has evolved in the decades since to become a major economic force in the Phoenix region. The City partners with west valley cities and Maricopa County to protect and enhance Luke AFB.

Staff recommends the following goals:

• Protect the mission of Luke AFB by ensuring property owner participation

and cooperation in federally-funded acquisition of land. • Advocate for follow-on and joint missions for Luke AFB. • Assist with securing and safeguarding funding for Luke AFB. • Monitor any Base Realignment and Closure Commission (BRAC) or other

Force Structure Adjustment-related issues. RECOMMENDATION Staff requests input from the Neighborhoods, Housing and Development subcommittee on the City’s federal legislative priorities in the area of community development for the 2016 Federal Agenda.

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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Chris Hallett

Neighborhood Services Director

SUBJECT: CDBG HOUSING COUNSELING AND NEIGHBORHOOD REVITALIZATION REQUEST FOR PROPOSALS

This report requests the Neighborhood, Housing and Development (NHD) Subcommittee recommend City Council approval of the process for the 2015-2016 Community Development Block Grant (CDBG) Request for Proposals (RFP) for Housing Counseling and Neighborhood Revitalization services. THE ISSUE On May 13, 2015, the City Council approved the 2015-16 Consolidated Plan outlining the broad activity areas for CDBG funding, which include an allocation for the Housing Counseling and Neighborhood Revitalization programs. The Housing Counseling program provides comprehensive housing counseling services to assist homebuyers and homeowners who meet the U.S. Department of Housing and Urban Development’s (HUD) income eligibility criteria of 80 percent or less than the area median income. The RFP seeks respondents providing housing counseling services in four priority areas:

• Pre-Purchase Housing Counseling & Homebuyer Education • Homebuyer Re-entry, Credit Improvement & Debt Reduction Strategies • Mortgage Default, Foreclosure Prevention and Predatory Lending Mitigation

Counseling • Non-Delinquency, Post-Purchase Counseling and Financial Management

The total allocation available for the Housing Counseling RFP is $100,000; each proposer may request a maximum of $45,000. The Neighborhood Revitalization program is intended to provide comprehensive revitalization services to low- and moderate-income residents of Phoenix. The RFP seeks respondents, who provide major and minor single-family, owner-occupied rehabilitation and home accessibility modification services for physically-disabled individuals. The total allocation available for the Neighborhood Revitalization RFP is $297,833. OTHER INFORMATION The proposed RFP will be publicly advertised and available for download on December 18, 2015. Applicants must be a nonprofit Arizona corporation at the time of proposal submission and the primary program beneficiaries must be low- and moderate-

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income residents of Phoenix. Each proposal will be evaluated separately on the following criteria: Work Plan 10 points Outcomes 10 points Service Experience with Federal Programs 10 points Program Budget 10 points Total 40 points

The Neighborhood Services Department will seek City Council approval to enter into contract with organizations with the highest-rated proposals. The proposed schedule for both RFPs is:

• December 18, 2015 - RFP Available • January 15, 2016 - Proposals Due • January 20, 2016 - Scoring • February 16, 2016 - Request NHD Recommendation of Awardees • March 9, 2016 - Request City Council Approval of Awardees

RECOMMENDATION This report requests the NHD Subcommittee recommend City Council approval of the process for the 2015-2016 Request for Proposals for Housing Counseling and Neighborhood Revitalization services.

111715 neighborhoods housing and development …...no presentation is planned; however staff will be...

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