1yl. the city of richmond consolidated action plan annual ... · commercial loan fund, this...

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THE CITY OF RICHMOND ::!..1yL. Consolidated Action Plan____ For Fiscal Year 2O122O13 Department of Economic and Community Development Division of Neighborhood Revitalization

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Page 1: 1yL. THE CITY OF RICHMOND Consolidated Action Plan Annual ... · Commercial Loan Fund, this allocation got its first run in the City during the 2011- ... minority- and women-owned

THE CITY OF RICHMOND

::!..1yL.

Consolidated Action

__ _Annual

Plan____For Fiscal Year 2O122O13

Department of Economic and Community DevelopmentDivision of Neighborhood Revitalization

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j Fifth Program Year\/ Action PlanThe CPMP Fifth Annual Action Plan includes the SF 424 and Narrative Responses toAction Plan questions that CDBG, HOME, HOPWA, and ESG grantees must respond toeach year in order to be compliant with the Consolidated Planning Regulations. TheExecutive Summary narratives are optional.

Narrative Responses

Annual Action Plan includes the SF 424 and is due every year no less than 45 daysprior to the start of the grantee’s program year start date. HUD does not acceptplans between August 15 and November 15.

Executive Summary 9L220(b)

1. The Executive Summary is required. Include the objectives and outcomesidentified in the plan and an evaluation of past performance.

This Plan outlines the many housing, economic and community developmentinitiatives the City will undertake in fiscal year 2012-2013 to continue to maintainour neighborhoods, commercial corridors and to help enrich the lives of our citizens.As in previous planning years, the City continues to embark on its communitydevelopment efforts in partnership with our departmental agencies, local non-profitsand local and state quasi-governmental organizations.

Past Performance The City continued its on primary objective of increasing homeownership in Richmond during 2011-2012 by using a significant portion of the CDBGand the HOME program funds to improve and preserve existing housing stock, tohelp create new housing and to increase homeownership opportunities. One suchoutlet is the City’s award-winning Neighborhoods in Bloom program, a local initiativeto help restore and maintain Richmond’s historic neighborhoods throughrehabilitation projects and new, in-kind housing construction. This year, the NiBprogram is focused on the Bellemeade, Blackwell, Carver-Newtowne West, ChurchHill Central, Highland Park Southern Tip, Southern Barton Heights and Swansboroneighborhoods.

The City worked to increase home ownership and neighborhood stability through newhousing construction on formerly abandoned vacant lots, through the sale of suchnewly constructed homes, through the rehabilitation and sale of vacant houses andthrough rehabilitation assistance to owner-occupied housing for low and moderateincome households. To help ensure homeownership affordability, Richmond usedsome program funds for down payment assistance and principal reductionassistance. The City provided for necessary capital improvements through capitalimprovement dollars.

Fifth Program Year Action Plan

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Outside of the NiB program, the City allocated a significant portion of CDBG funds tocreate a revolving loan fund that went to providing gap financing and increased jobopportunities for Richmond’s low- and moderate-income citizens. Known as theCommercial Loan Fund, this allocation got its first run in the City during the 2011-2012 fiscal year and was able to help a number of businesses open their doors indowntown Richmond. Moving forward, these loans funds will be used to encouragenew and existing businesses to locate or expand within the city and will require thatthose businesses create of retain jobs for LMI citizens proportionate to the amount ofthe loans provided.

To maintain our current homeownership rates, the City continued to allocate funds tohelp low- and moderate-income homeowners finance maintenance repairs orsubstantial home renovations that would help to maintain safety and increase energyefficiency and functionality in older homes. This provision helped to fulfill the needsof not only the low- to moderate-income homeowner, but also the elderlyhomeowner, where, in both cases, homeowners often delay investing in necessarymaintenance due to the expense involved in repairing or renovating their homes.

In addition to the these investments in preserving Richmond’s housing stock, theCity used CDBG and HOME program funds to help support a systematic codeenforcement initiative to remove blight, and supported housing counseling and fairhousing education programs.

Special Needs Populations and 2011-2012 Performance Our $213,989 ofEmergency Shelter Grant funds continued to go to support of emergency homelessservices shelters, transitional shelters and other specialized services to homelessindividuals. The City Cold Weather Overflow Shelter provided emergency housing toapproximately 6,800 persons during inclement weather (some duplication because ofrepeat stays). Approximately 1,000 homeless individuals received sheltering throughESG service providers, while 900 people in families received assistance in transitionalshelter to be able to get back on their feet. Area homeless service providers coupledtheir ESG allocations with dollars provided by United Way of Greater Richmond,individual citizen donations and private industry donations.

To further address the needs of special populations, the City allocated the 2011-20 12HOPWA funds to three AIDS service organizations to serve persons with HIV/AIDSthroughout the Richmond-Petersburg MSA. The HOPWA funds allocated to theseagencies totaled $781,825. The agencies provided the case management; short-termrent, mortgage, utility assistance; long-term rental assistance and first month’s rentassistance. Approximately 560 clients received HOPWA-funded service during theprogram year.

Objectives and outcomes for Fiscal Year 2012-2013 This year, the City willslightly retool our revitalization allocations in order to help grow our housingopportunities and to incorporate greater investment in economic developmentinitiatives. The City will continue to make significant investments in our housingstock by way of the Neighborhoods in Bloom development strategy, codeenforcement actions, owner-occupied rehabilitation projects as well as throughCitywide housing investments. Yet, in addition to servicing our neighborhoods, theCity will use some of our CDBG resources to help in the effort to revitalizecommercial corridors and gateways, as City leaders are rooting their confidences inlocal small businesses and gateway commercial areas as sources of existing andpotential new jobs for local residents and as sources of goods and services for the

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local economy. The City has developed and will be implementing during the fiscalyear a series of economic development loans designed for small, minority- andwomen-owned businesses and development contractors, as well as for gap financingfor other potential business deals, to help stimulate the local economy. Additionally,with all of our community development projects, the City will focus more effort onthe workforce piece of our project investments, by encouraging greater jobcreation/retention from the projects we initiate with our subrecipients.

In sum, the City will utilize its Community Development Block Grant and HOME fundsto:

• Provide rehabilitation assistance to existing homeowners for repairs and forsubstantial rehabilitation where necessary. (These programs are availablecitywide as well as in the NiB areas.)

• Through the NIB program, provide funds to acquire vacant lots for theconstruction of new housing and the rehabilitation of vacant houses in orderto create affordable homeownership opportunities for low and moderateincome persons and elderly residents.

• Provide funds to support small businesses in neighborhood commercial areasand to support fair housing, housing counseling and financial literacyactivities.

• Provide public services to homeless families and those affected by codeenforcement actions

The City will use the newly revamped Emergency Solutions Grant funds to helpsupport transition to more permanent housing solutions using policies and practicesrolled over from successful Homelessness Prevention and Rapid Re-housing Programprojects, as well as through partnerships with our nightly shelter programs, andhomelessness prevention services. The funds also will help support licensed day carefor families in shelters, transportation for shelter patrons and to help coveroperational expenses for homeless service providers.

The City will use Housing Opportunities for People with AIDS funding to support long-term rental assistance; short—term rental, mortgage and utility assistance andHIV/AIDS client support services; as well as to provide operating funds for an eightunit housing facility.

Grant Allocations and Match Requirements HOME funds and ESG funds are theonly funds being used that have historically required a match, although match hasalways been an important factor in awarding CDBG and HOPWA funds. In awardingCDBG funds, the City strives for at least a 3-to-i match. Because of the City’s statusas a depressed area, under HUD’s criteria, the City in the past has been responsiblefor meeting only one-half of the match requirement for HOME funds and 12.5% forrehabilitations and new construction. The City has met that match requirement withCity property tax abatements and public improvements that directly impact theproperty. In some instances, bank funds at a lower interest rate than the HOMEfunds were used as direct grants from LISC and other foundations.

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ESG funds require a 100% match. The match requirement has been met with theVirginia State Shelter, United Way and other grants, as well with foundation andprivate individual gifts.

Citizen Participation 91.200 and 91.220(b)

2. Provide a summary of the citizen participation and consultation process (includingefforts to broaden public participation in the development of the plan.

a. Based on the jurisdiction’s current citizen participation plan, provide asummary of the citizen participation process used in the development of theconsolidated plan. Include a description of actions taken to encourageparticipation of all its residents, including the following:

1. low- and moderate-income residents where housing and communitydevelopment funds may be spent;

2. minorities and non-English speaking persons, as well as persons withdisabilities;

3. local and regional institutions, the Continuum of Care, and otherorganizations (including businesses, developers, nonprofitorganizations, philanthropic organizations, community and faith-basedorganizations);

4. residents of public and assisted housing developments and recipientsof tenant- based assistance;

5. residents of targeted revitalization areas.

b. Identify agencies, groups, and organizations that participated in the process.This should reflect consultation requirements regarding the following:

1. General §91.100 (a)(1) - Consult with public and private agencies thatprovide health services, social and fair housing services (includingthose focusing on services to children, elderly persons, persons withdisabilities, persons with HIV/AIDS and their families, homelesspersons) during the preparation of the plan.

2. Homeless strategy and resources to address needs of homeless§91.100 (a)(2) — Consult with continuum of care, public and privateagencies that address the housing, health, social services, victimservices, employment, or education needs of low-income persons,homeless persons (particularly chronically homeless individuals andfamilies, families with children, veterans and their families, andunaccompanied youth) and person at risk of homelessness; publiclyfunded institutions and systems of care that may discharge personsinto homelessness (such as health-care facilities, mental healthfacilities, foster care and other youth facilities, and correctionsprograms and institutions), and business and civic leaders.

3. Metropolitan Dlanning §91.100 (a)(5) -- Consult with adjacent units ofgeneral local government, including local government agencies withmetropolitan-wide planning responsibilities, particularly for problemsand solutions that go beyond a single jurisdiction, i.e. transportation,workforce development, economic development, etc.

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4. HOPWA §91.100 (b)-- Largest city in EMSA consult broadly to developmetropolitan-wide strategy for addressing needs of persons withHIV/AIDS and their families.

5. Public housing §91.100 (c) -- Consult with the local public housingagency concerning public housing needs, planned programs, andactivities.

3. Provide a summary of citizen comments or views on the plan.

4. Provide a written explanation of comments not accepted and the reasons whythese comments were not accepted.

Citizen Participation Process While developing the Annual Consolidated ActionPlan, the Department of Economic and Community Development offers two publichearings to welcome citizen participation and input. Public hearing dates, along withthe Proposed Budget and Notice of the 30-Day Period for Public Comment, areadvertised in local papers and on the City’s website.

The City makes copies of a draft of the Annual Plan available at public libraries andgovernment offices for the duration of the 30-day public comment period, as anadditional opportunity for citizen review and input.

The City held the first of two public comment hearings on the 2012-2013 Annual Planon January 19, 2012. There were no comments made.

The second public comment session occurred on April 23 before our City Council.During that session, one of the City’s long-time nonprofit sub-recipients expressedconcern about funding cuts to their organization and one of their establishedprograms in the City. Due to cuts in entitlement funding, the City had to makechanges in our allocation approach and thus had to reduce funding to programs toensure the federal administrative and public service caps were not exceeded.

Representatives from the affected nonprofit appealed to staff to restore full funding.Staff could not support the request. However, staff did indicate that it would assesscarryover and program income early in the FY13 fiscal year to determine if fundscould be found. The nonprofit was receptive to this approach.

The City consulted with various groups that advocate for minority and special needspopulations while developing the Five Year Plan. A complete listing of the advocacygroups involved is featured in that document.

Resources 91.220(c)(1)) and (c)(2)

5. Identify the federal, state, and local resources (including program income) thejurisdiction expects to receive to address the needs identified in the plan. Federalresources should include Section 8 funds made available to the jurisdiction, LowIncome Housing Tax Credits, and competitive McKinney-Vento HomelessAssistance Act funds expected to be available to address priority needs andspecific objectives identified in the strategic plan.

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6. Explain how federal funds will leverage resources from private and non-federalpublic sources, including how matching requirements of HUD programs will besatisfied.

Richmond has benefitted greatly by the number of nonprofit, philanthropic,educational and financial institutions based here that include communityreinvestment as a key component of their work. Because of that proximity and duelgoal, the City has a number of other federal, state and local resources at work in thecommunity that complement our community development allocations. Those fundsinclude the following:

Other Federal Funds

C

Housing Choice RRHA will receive $1,685,000 from HUD to administer the HousingVoucher (formerly Choice Voucher Program in addition to $22,500,000 to provideSection 8) direct subsidized housing payments to residents.

HOPE VI RRHA will continue to use the $5.5 million balance of the originalRevitalization Grant $26 million grant to revitalize the Blackwell and Swansboro public

housing development area and to provide direct subsidy assistanceto encourage affordable housing opportunities for homeownership.

2012 Continuum of Seven homeless service providers in the region will utilize $3.2Care Notice of million in State Shelter Grants, Emergency Solutions Grants, CityFunding Availability of Richmond non-departmental funds, Supportive Housing Grants,

Shelter Plus Care and SRO Moderate Rehab funds to implementthe Regional Continuum of Care.

Supportive Housing HomeAgain will receive $844,266 from HUD, including $199,500 inProgram new homeless services funds awarded in 2012, for transitional

housing programs for homeless unaccompanied men,unaccompanied women, Veterans, and families in a variety ofcompositions. Services include housing assessment and search,employment search and support, mental health and substanceabuse services, parenting and relationship group counseling,transportation assistance, referrals to community resources,money management and debt reduction tutorials, life skillstraining, children’s services including tutoring and follow-upservices for discharged households.

Housing Information HOME Inc. will use $200,000 to support housing counseling in theand Counseling areas of rental, mortgage default, and predatory lendingProgram counseling services to City of Richmond residents.Comprehensive HOME Inc. will use $12,298 to support their rental, mortgageHousing Counseling default, and predatory lending counseling services to residents inProgram- HUD central Virginia.Neighborhoods in Home, Inc. will use $324,561 from the City of Richmond toBloom provide down payment and closing cost assistance in

Neighborhoods in Bloom areas.HOME Keystone Home, Inc. will use $409,471 to provide down payment andProgram for First- closing cost assistance in Richmond.time HomebuyersLow Income Housing The Richmond region’s housing stock will be augmented by $1.36Tax Credit million in LIHTC-awarded multifamily housing development.Development

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Estimated federal fund investment: $135 millionPrivate community Private funds in the amount of $175 million will go to help expandinvestment Richmond’s housing stock and to help maintain and enhance non

profit agencies that provide supportive services for those in need.2012 United Way United Way will direct $5 million of its funds to local organizations.contributions

Estimated Private investment: $180 million

Grant Allocations and Match Requirements HOME funds and ESG funds are theonly funds being used that have historically required a match, although match hasalways been an important factor in awarding CDBG and HOPWA funds. In awardingCDBG funds, the City strives for at least a 3-to-i match. Because of the City’s statusas a depressed area, under HUD’s criteria, the City in the past has been responsiblefor meeting only one-half of the match requirement for HOME funds and 12.5% forrehabilitations and new construction. The City has met that match requirement withCity property tax abatements and public improvements that directly impact theproperty. In some instances, bank funds at a lower interest rate than the HOMEfunds were used as direct grants from LISC and other foundations.

ESG funds require a 100% match. The match requirement has been met with theVirginia State Shelter, United Way and other grants, as well with foundation andprivate individual gifts.

Annual Objectives 91.220(c)(3)

*If not using the CPMP Tool: Complete and submit Table 3A.*If using the CPMP Tool: Complete and submit the Summa,y of Specific Annual ObjectivesWorksheets or Summaries.xls

Goals and objectives to be carried out during the action plan period areindicated by placing a check in the following boxes.

Objective Category [ Objective Category: Objective category:Decent Housing Suitable Living Expanded Economic

Environment OpportunitiesWhich includes: — Which includes: Which includes:

assisting homeless persons improving the safety and [] job creation and retentionobtain affordable housing livability of neighborhoodsassisting persons at risk of eliminating blighting establishment, stabilizationbecoming homeless influences and the and expansion of small

deterioration of property business (including microand facilities

— businesses)[ retaining the affordable [1 increasing the access to [J the provision of public

housing stock quality public and private services concerned withfacilities employment

[j increasing the availability of reducing the isolation of the provision of jobs toaffordable permanent income groups within areas low-income persons livinghousing in standard through spatial in areas affected by thosecondition to low-income and deconcentration of housing programs and activitiesmoderate-income families, opportunities for lower under programs coveredparticularly to members of income persons and the — by the plan

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disadvantaged minorities — revitalization of —

without discrimination on deterioratingthe basis of race, color, neighborhoodsreligion, sex, national origin,familial status, or disability

LI increasing the supply of restoring and preserving LI availability of mortgagesupportive housing which properties of special financing for low incomeincludes structural features historic, architectural, or persons at reasonableand services to enable aesthetic value rates using non-persons with special needs discriminatory lending(including persons with practicesHIV/ADOS) to live in dignityand independenceproviding affordable housing [1 conserving energy [1 access to capital and creditthat is accessible to job resources and use of for development activitiesopportunities renewable energy sources that promote the long-

term economic socialviability of the community

7. Provide a summary of specific objectives that will be addressed during theprogram year.

The City of Richmond Department of Economic and Community Development will usean estimated $3.7 million (94 percent) of its CDBG allocation to fund activities thatbenefit low-to-moderate income persons, and $234,882 (6 percent) from CDBGfunds to address slum and blighting properties in FY 2012-2013.

The City will invest approximately 60 percent ($2.3 million) of CDBG funds and 54percent ($1.2 million) of HOME funds on targeted areas in the City of Richmondduring the program year. The target areas are those designated as Neighborhoodsin Bloom communities, which include Bellemeade, Blackwell, Carver-Newtowne West,Church Hill Central, Highland Park Southern Tip, Southern Barton Heights andSwansboro.

In addition to utilizing our community development funds, the City will continue toincorporate grant funds from the Neighborhood Stabilization Program, a programdesigned to help alleviate the impact from the country-wide foreclosure crisis. Sinceits infusion into the City’s housing marketplace, Neighborhood Revitalization hasbeen able to utilize $2.4 million in NSP funds on qualifying foreclosed properties thatmight have otherwise sat vacant. In 2012-2013, the City will use $500,000 toacquire, rehabilitate and market foreclosed homes in specific target areas.

Fair Housing. Fair housing continues to play a pivotal role in the City’shomeownership mission. As in previous years, the City maintains it commitment tofurthering affordable and fair housing opportunities to all would-be and existing Cityhomeowners.

For the upcoming fiscal year, Richmond has allocated over $1 million in CDBG andHOME grant resources to Housing Opportunities Made Equal, our lead regionalhousing advocacy non-profit organization, in order to enlist the agency to providefair housing assistance and representation, credit counseling, first-time homebuyeradvisory services, down payment assistance and housing information and counselingservices for potential and existing homeowners.

The City complements this financial commitment with a participatory one. City

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community development employees have partnered with local non-profit housingorganizations, as well as private industry outfits and the Virginia HousingDevelopment Authority, to plan and present a series of workshops and neighborhoodtours that will help to inform the public about affordable housing barriers and currentaffordable, fair housing ownership opportunities.

Description of Activities 91.220(d) and (e)

*If not using the CPMP Tool: Complete and submit Table 3C*If using the CPMP Tool: Complete and submit the Projects Worksheets

8. Provide a summary of the eligible programs or activities that will take placeduring the program year to address the priority needs and specific objectivesidentified in the strategic plan, the number and type of families that will benefitfrom the proposed activities, proposed accomplishments, and target date for thecompletion of the activity.

Describe the outcome measures for activities in accordance with Federal RegisterNotice dated March 7, 2006, i.e., general objective category (decent housing,suitable living environment, economic opportunity) and general outcome category(availability/accessibility, affordability, sustainability).

Please see the City’s Project Worksheets for a description of our activities for FY2012-2013.

Geographic Distribution/Allocation Priorities 91.220(d) and (f)

9. Describe the geographic areas of the jurisdiction (including areas of low incomefamilies and/or racial/minority concentration) in which assistance will be directedduring the next year. Where appropriate, the jurisdiction should estimate thepercentage of funds the jurisdiction plans to dedicate to target areas.

10. Describe the reasons for the allocation priorities, the rationale for allocatinginvestments geographically within the jurisdiction (or within the EMSA forHOPWA) during the next year, and identify any obstacles to addressingunderserved needs.

Geographic Distribution and Rationale For the 2012-2013 fiscal year, the Citywill continue using our Neighborhoods in Bloom development investment model toreach our low- to moderate-income targets. Our NiB neighborhoods include thefollowing:

• Bellemeade• Blackwell• Carver-Newtowne West• Church Hill Central• Highland Park Southern Tip• Southern Barton Heights• Swansboro

These neighborhoods have been selected for concentrated assistance because oftheir high levels of low-to-moderate income residents and because of their distinctneed for housing revitalization due to long-term neglect.

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The City continues to focus on increasing homeownership and neighborhood stability,through the construction and sale of new housing on formerly abandoned vacantlots, the rehabilitation and sale of vacant houses and through rehabilitationassistance to owner-occupied housing for low and moderate income households. TheCity also provides funds for down payment assistance and principal reductionassistance to ensure affordability. The City provides for necessary supportive capitalimprovements through local capital improvement dollars.

Outside of the NiB program, the City will use remaining funds to address the housingneeds of low and moderate income households that are more widely disbursedcitywide. We will use funds to help low- and moderate-income homeowners financemaintenance repairs or substantial home renovations that would help to maintainsafety and increase energy efficiency and functionality in older homes. Thisprovision helps to fulfill the needs of not only the low- to moderate-incomehomeowner, but also the elderly homeowner, where, in both cases, homeownersoften delay investing in necessary maintenance due to the expense involved inrepairing or renovating their home.

In addition to these investments in preserving Richmond’s housing stock, the Citywill use CDBG and HOME program funds to help support a systematic codeenforcement initiative to remove blight, and supports housing counseling and fairhousing education programs. The City will rely upon CDBG funds to help in the effortto revitalize commercial corridors and gateways, as City leaders are rooting theirconfidences in local small businesses and gateway commercial areas as sources ofexisting and potential new jobs for local residents and as sources of goods andservices for the local economy.

Geographic Distribution and Special Needs Residents For our special needspopulations, our HOPWA and Emergency Solutions Grant funds go beyond specificneighborhoods and instead are invested in service agencies that are widely knownsources of support and assistance among our citizenry that have these distinctneeds. Our funds support the bulk of local agencies that serve the highest numberof agencies that are set up specifically for AIDS and HIV patients and those facinghousing crises, respectively. Our investment in these community groups, coupledwith the City’s own Human Services initiatives via the Richmond Department ofSocial Services, enables the City to achieve the most reach.

Annual Affordable Housing Goals 91.220(g)

*If not using the CPMP Tool: Complete and submit Table 3B Annual Housing CompletionGoals.*If using the CPMP Tool: Complete and submit the Table 3B Annual Housing CompletionGoals.

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11. Describe the one-year goals for the number of homeless, non-homeless, andspecial-needs households to be provided affordable housing using funds madeavailable to the jurisdiction and one-year goals for the number of households tobe provided affordable housing through activities that provide rental assistance,production of new units, rehabilitation of existing units, or acquisition of existingunits using funds made available to the jurisdiction. The term affordable housingshall be defined in 24 CFR 92.252 for rental housing and 24 CFR 92.254 forhomeownership.

Please see Table 3B for detail on the City’s Affordable Housing Goals.

Public Housing 91.220(h)

12. Describe the manner in which the plan of the jurisdiction will help address theneeds of public housing and activities it will undertake during the next year toencourage public housing residents to become more involved in management andparticipate in homeownership.

13. If the public housing agency is designated as “troubled” by HUD or otherwise isperforming poorly, the jurisdiction shall describe the manner in which it willprovide financial or other assistance in improving its operations to remove suchdesignation during the next year.

The City has committed to providing priority focus in FY 2012-2013 on working withthe Richmond Redevelopment and Housing Authority (RRHA) to redevelop DoveCourt and Carrington Gardens. Richmond City Mayor Dwight C. Jones and the boardof directors for RRHA recently named a new director to help steer the organization ona path to completing this new construction venture as well as on to addressing issueswith the agency that inhibit their efforts to provide decent housing for its clients.

The City also will continue to support the efforts of the Housing Opportunities MadeEqual’s (HOME) Center for Home Ownership, including continued funding of theKeystone Program, a down payment assistance initiative that sets aside fourassistance slots for public housing residents that are on track to buy their ownhomes. The Department of Social Services will continue to be a resource asresidents work to increase economic self-sufficiency.

While the City and RRHA work jointly to help improve and enhance affordablehousing opportunities for our public housing residents, RRHA continues to work tomaintain a decent living environment in these communities. For FY2012, RichmondRedevelopment and Housing Authority (RRHA) will receive $5,706,634 from HUD tomake physical improvements to its public housing units, and $1,043,800 inmanagement improvement funds to support residents’ programs including publicsafety. RRHA continues to work off of a $21,350,000 operating subsidy to sustainthe management, maintenance, operation, and support services of the PublicHousing Program. Requests are subject to reduction and funding levels may beadjusted due to HUD shortfall adjustments.

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Homeless and Special Needs 91.220(i)

14. Describe, briefly, the jurisdiction’s plan for the investment and use of availableresources and one-year goals for reducing and ending homelessness.

15. Describe specific action steps for reducing and ending homelessness that (i)reach out to homeless persons (especially unsheltered persons) and assessingtheir individual needs; (ii) address emergency shelter and transitional housingneeds; (iii) help homeless persons (especially persons that are chronicallyhomeless, families with children, veterans, and unaccompanied youth) make thetransition to permanent housing and independent living.

16. Homelessness Prevention—Describe planned action steps for reducing endinghomelessness that help low-income individuals and families avoid becominghomeless, especially extremely low-income individuals and families who are likelyto be discharged from publicly funded institution and systems of care or thosereceiving assistance from public or private agencies that address housing, health,social service, employment, education or youth needs.

17. Describe specific activities the jurisdiction plans to undertake to address thehousing and supportive service needs of persons who are not homeless (elderly,frail elderly, persons with disabilities, persons with HIV/AIDS, persons withalcohol or other substance abuse problems).

The City’s Plan for Investment and Use of Funds Directed TowardsHomelessness The City of Richmond is a vested implementation partner in ourregion’s Ten Year Plan to Prevent and End Homelessness as it is managed under theguise of Homeward, our region’s planning and coordinating organization for homelessservices. Richmond has worked to address homelessness for decades, and continuedthat commitment through our participation in sessions with other regional leaders,service providers, some homeless individuals and other community stakeholders.

That process was recorded and eventually became what is our ten year frameworktoday. Creating the plan has given leaders and practitioners in Richmond andthroughout the region the ability to tailor our services to the needs of our population,thus better enabling us to serve clients now and to help get clients back to anindependent state down the line. The Ten Year Plan provides an implementationoutline made up of multi-level strategies and actions under five core goals that allcommunity partners, including state and local government, service providers andadvocates, need to take up in order to end homelessness in the Richmond region.

For Economic and Community Development’s part, we continue to commit acombination of CDBG and ESG funds to public and human service initiatives. Wehave and continue to allocate a combined $390,000 of CDBG funds to housinginformation and counseling services, housing code enforcement counseling and leadabatement programs, in order to proactively address code violation issues that leadto homelessness. With the same motivation, the City allocates $95,000 in familyresidential support programs, as it provides a much needed housing source forhomeless families,.

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Our $380,505 Emergency Solutions Grant allocation not only will go to supportemergency financial assistance for city households in need, transitional sheltering,emergency sheltering, care for domestic violence victims and child care for childrenof low-income or homeless familial situations, but also to helping special needsclients become stably housed more quickly, through the use of time-tested successmodels demonstrated under our local HPRP program.

Thus, the city’s plan for the investment and use of funds are aligned with theimplementation strategies of our region’s Ten Year Plan to Prevent and EndHomelessness. We are committed to continuing to direct some of our grant funds tothe implementation strategies that local government can impact.

Combating Homelessness Prevention: Our Local ApproachAs institutional policy, the City of Richmond makes every effort to help individualsand families who either may be experiencing homelessness or is on the brink ofbecoming homeless through adult and family services within our Department ofSocial Services. The Richmond Department of Social Services (RDSS) has a fullroster of adult and family protective services available for Richmond citizens. Underdepartment policy, RDSS cannot deny service to anyone who presents a need and isan established city resident, and as such, works to assist any and all qualifyingpersons with the programs they have available.

As a complement to our existing programs and services, the City will use EmergencySolutions Grant funds to provide homeless assistance and homelessness preventionservices to individuals and families. The four non-profit service providers to whomwe allocate funds help connect individuals and families to housing in affordablerentals (including public housing) around the city or in housing stabilizationarrangements with willing relatives. Clients of these programs have the opportunityto sign on for financial or programmatic support from RDSS within 180 days ofdischarge from their programs, should additional support be required.

Barriers to Affordable Housing 91.220(j)

18. Describe the actions that will take place during the next year to remove barriersto affordable housing.

The City of Richmond has implemented several regulatory changes and programs toaugment the quality and distribution of affordable housing. Among these are:

• Establishment of the rehabilitation tax credit, which provides for theassessment of real estate taxes on rehabilitated property at the prerehabilitated value rather than the increased value. While available to allqualified properties citywide, this program has proven invaluable in therehabilitation of vacant properties in the revitalization areas. It has madepossible more affordable mortgages for low and moderate income buyers.

• Support to mixed-income and Low Income Housing Tax Credit (LITHC)projects that re-use vacant industrial buildings in areas in need of or currentlyundergoing revitalization.

• Implementation of the affordable housing trust fund.

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Implementation of the affordable dwelling unit ordinance.

The City will continue incorporating these support mechanisms into our housingdevelopment strategies during FY 2012-2013.

Other Actions 91.220(k)

19. Describe the actions that will take place during the next year to address obstaclesto meeting underserved needs, foster and maintain affordable housing, evaluateand reduce the number of housing units containing lead-based paint hazards,reduce the number of poverty-level families develop institutional structure,enhance coordination between public and private agencies (see 91.215(a), (b),(i), (j), (k), and (I)).

20. Describe the actions to coordinate its housing strategy with local and regionaltransportation planning strategies to ensure to the extent practicable thatresidents of affordable housing have access to public transportation.

PP OGRAM SPECIFIC RE)JJiREMENTSCDBG 91.220(I)(1)

1. Identify program income expected to be received during the program year,including:• amount expected to be generated by and deposited to revolving loan funds;• total amount expected to be received from each new float-funded activity

included in this plan; and• amount expected to be received during the current program year from a

float-funded activity described in a prior statement or plan.

2. Program income received in the preceding program year that has not beenincluded in a statement or plan.

3. Proceeds from Section 108 loan guarantees that will be used during the year toaddress the priority needs and specific objectives identified in its strategic plan.

4. Surplus funds from any urban renewal settlement for community developmentand housing activities.

5. Any grant funds returned to the line of credit for which the planned use has notbeen included in a prior statement or plan.

6. Income from float-funded activities.

7. Urgent need activities, only if the jurisdiction certifies.

8. Estimated amount of CDBG funds that will be used for activities that benefitpersons of low- and moderate income.

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CDBG Investments and Returns• Richmond currently does not have outstanding projects funded by Section

108 loan guarantees, nor does the City have any urban renewal settlementfunds

• Approximately 60 percent of CDBG funds will be used for activities thatbenefit persons of low and moderate income.

HOME 9L220(I)(1)

1. Describe other forms of investment. (See Section 92.205)If grantee (PJ) plans to use HOME funds for homebuyers, did they state theguidelines of resale or recapture, as required in 92.254.

2. If grantee (PJ) plans to use HOME funds to refinance existing debt secured bymultifamily housing that is being rehabilitated with HOME funds, state itsrefinancing guidelines required under 24 CFR 92.206(b).

3. Resale Provisions -- For homeownership activities, describe its resale or recaptureguidelines that ensure the affordability of units acquired with HOME funds. See24 CFR 92.254(a)(4).

4. HOME Tenant-Based Rental Assistance -- Describe the local market conditionsthat led to the use of a HOME funds for tenant based rental assistance program.

If the tenant based rental assistance program is targeted to or provides a preference fora special needs group, that group must be identified in the Consolidated Plan as havingan unmet need and show the preference is needed to narrow the gap in benefits andservices received by this population.

5. If a participating jurisdiction intends to use forms of investment other than thosedescribed in 24 CFR 92.205(b), describe these forms of investment.

6. Describe the policy and procedures it will follow to affirmatively market housingcontaining five or more HOME-assisted units.

7. Describe actions taken to establish and oversee a minority outreach program within itsjurisdiction to ensure inclusion, to the maximum extent possible, of minority andwomen, and entities owned by minorities and women, including without limitation, realestate firms, construction firms, appraisal firms, management firms, financialinstitutions, investment banking firms, underwriters, accountants, and providers of legalservices, in all contracts, entered into by the participating jurisdiction with such personsor entities, public and private, in order to facilitate the activities of the participatingjurisdiction to provide affordable housing under the HOME program or any other Federalhousing law applicable to such jurisdiction.

8. If a jurisdiction intends to use HOME funds to refinance existing debt secured bymultifamily housing that is rehabilitated with HOME funds, state its financingguidelines required under 24 CFR 92.206(b).

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Richmond’s HOME Investment The City of Richmond does not intend to use otherforms of investment not described in Section 92.205(b).

The City of Richmond maintains the same guidelines for resale that began with theHOME Program in 1992. Participants using HOME program funding must use theCity’s approved Deed of Trust document that enforces the affordability termsoutlined in the HOME program final rule regulations. Currently, each Deed of Trustdocument given to a new homeowner or investor as part of their down paymentassistance loan contract includes the following guidelines:

• HOME—assisted units for rehabilitation or new construction projects under$15,000 — five year affordability period.

• HOME—assisted units for rehabilitation or down payment assistance projectsfrom $15,000 to $40,000 — ten year affordability period.

• HOME—assisted units for rehabilitation projects over $40,000 — 15 yearaffordability period.

• HOME—assisted rental units for new construction projects only - 20 yearaffordability period.

Recapture Provision

The City of Richmond currently uses the recapture provision option outlined in Section24 CFR Part 92.254 to ensure the affordability requirements for the HOME InvestmentPartnership Program. The recapture provision is defined as the amount of HOME fundsused to assist an eligible purchaser. The recapture provision must ensure that the Cityrecoups all or a portion of the HOME assistance subject to recapture in the event ofresale of property to the net proceeds available from the sale if the housing does notcontinue to be the principal residence of the family for the duration of the period ofaffordability. The affordability period is determined by the amount of HOME fundsincluded in the deed or land covenant, which will be defined in the terms of the loan.The affordability period will apply as follows:

• projects under $15,000-five-year term

• projects from $15,001- $40,000-ten year term

• projects over $40,000-fifteen-year term

The City will enforce the recapture provision requirement in our contractual agreementwith our sub-recipients. The sub-recipients will pass the requirement to the purchaserof the HOME assisted unit in the form of a deed or land covenant that runsconcurrently with the affordability period.

The affordability period can only be reduced or terminated if a transfer in lieu of aforeclosure occurs prior to satisfying the recapture agreement. In such a case, thepurchaser will be required to share in the net proceeds available from the sale. Wherethere are no net proceeds, the HOME requirements are considered to be satisfied. Thepurchaser of a HOME-assisted unit also can satisfy the terms of the deed of trust bytransferring the remaining requirements of the original deed of trust to another eligiblehome purchaser.

To be an eligible home purchaser, the new homeowner must meet the HOMEprogram’s income requirements and be approved by the City. This new home

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purchaser also must agree to be responsible for the prorated portion of the terms inthe original deed of trust until the affordability period is satisfied. Proceeds from thesale of properties using HOME funds will be recaptured and returned to the City.These funds will be considered program income and used for future housingdevelopment projects.

The City does not intend to use HOME funds to refinance existing debt serviced bymultifamily housing that is being rehabilitated with HOME funds.

The City of Richmond spent all of its American Dream Down Payment Initiativeallocation by the end of FY 2009-2010. The ADDI allocation was used to increase thehomeownership rate, especially among lower-income and minority households, andto revitalize and stabilize City neighborhoods. Housing Opportunities Made Equal,Inc., offered up to $7,500 of down payment and closing cost assistance to first-timehomebuyers under the Keystone Program.

The City of Richmond did not receive ADDI funds for FY2O11-2012, and is notexpecting an allocation for FY2012-2013.

HOPWA 91.220(I)(3)

1. One year goals for the number of households to be provided housing through theuse of HOPWA activities for: short-term rent, mortgage, and utility assistance toprevent homelessness of the individual or family, tenant-based rentalassistance, units provided in housing facilities that are being developed, leased,or operated.

The City of Richmond regards persons with special needs, including persons withHIV/AIDS, as a top priority constituency. The City, in consultation with its partners,proposes the allocation of $864,491 in HOPWA funds to four area agencies locatedthroughout the Richmond-Petersburg MSA that will provide a range of housingassistance and supportive services, including facilities and community residences,rental assistance, short-term payments to prevent homelessness, technicalassistance, supportive services and other activities to serve persons with HIV/AIDS.Additionally, two City departments will provide program administration andexpenditure monitoring.

To ensure that the above services are provided, the City, in collaboration with theAIDS Service Organizations (ASOs), developed a comprehensive and coordinatedregional housing and service delivery system called a “Continuum of Care for Personswith HIV/AIDS.” The fundamental components of the Continuum of Care are:

1. HIV/AIDS prevention education programs2. Outreach and assessment3. Short-term rental assistance (up to 21 weeks)- 50 households4. Long-term rental housing assistance — 25 clients5. First month’s rental assistance — 8 clients6. Case management and support services - 533 clients

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ESG 91.220(l)(4)

1 Identify the written standards for providing ESG assistance in accordance with24 CFR 576.400(e)(1) and (e)(3).

2 If the Continuum of Care for the jurisdiction’s area has established a centralizedor coordinated assessment system that meets HUD requirements, describe thecentralized or coordinated assessment system and the requirements for usingthe system, including the exception for victim service providers, as set forthunder 24 CFR 576.400(d)

3 Identify the process for making awards and how the jurisdiction intends to makeits allocation available to nonprofit organizations, and in the case of urbancounties, funding to participating units of local government.

4 If the jurisdiction is unable to meet the homeless participation requirement in 24CFR 576.405(a), specify the plan for reaching out to and consulting withhomeless or formerly homeless individuals in considering and making policiesand decisions regarding any facilities or services that receive funding under ESG.

5 Describe the performance standards for evaluating ESG activities.6 Describe the consultation with each Continuum of Care that serves the

jurisdiction in determining how to allocate ESG funds, develop performancestandards, evaluate outcomes of activities assisted by ESG funds, and developfunding policies, and procedures for the administration and operation HMIS.

City Standards for ESG Assistance The City of Richmond uses federal grant fundsto complement the efforts of our own Human Services efforts as well as those oflocal homeless service providers in the community. As such, the City requires oursubgrantees to establish and fully abide by their individual agency policies andprocedures, but all with the base foundation that they serve clients according to themission of their organizations, and according to the contractual agreements set forthwith the City. For its part, the City has allocated support to local organizations thatprovide emergency and more supportive services that go toward permanent housingfor single adults and families. The City depends on our subgrantees to provide suchservice.

Additionally, as institutional policy, the City of Richmond makes every effort to helpindividuals and families who either may be experiencing homelessness or is on thebrink of becoming homeless through adult and family services within our Departmentof Social Services. The Richmond Department of Social Services (RDSS) has a fullroster of adult and family protective services available for Richmond citizens. Underdepartment policy, RDSS cannot deny service to anyone who presents a need and isan established city resident, and as such, works to assist any and all qualifyingpersons with the programs they have available.

Central Intake and Richmond’s Continuum of Care Richmond’s network ofhomeless service providers rely on the Conrad Center, the centrally located dayshelter, as an entry point for service in the assistance community. Service providersfind shelter for potential clients based on bed availability, then connect clients to thatsponsoring organization. Once clients are linked to a given sheltered, they are thenentered in HMIS and gain access to the case management, life skills and othersupportive services granted by that organization.

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The City of Richmond will be supporting six such organizations that are part of theContinuum of Care, with Emergency Solutions Grant funds in FY2012-2013. Thoseorganizations and a description of their services are listed below:

Agency Type of Services Homeless BeneficiariesCARITAS - Family Focus Provide laundry and Battered Spouses, ChronicallyEmergency Shelter/Rapid transportation to shelters for Mental Ill, Alcohol Dependent, DrugRehousing homeless families. Dependent, Families w/childrenCARITAS —Homeless Provide laundry services and Single adults, Mentally Ill, AlcoholSingle Adult nightly transportation to Dependent, Drug Dependent,Services/Rapid Rehousing congregations around Domestic Violence, HIV/AIDS,

Richmond, as well as rapid re- Elderly, Disabledhousing service

Richmond Department of Emergency Financial Low income families w/ Children,Social Services Assistance to prevent Female-headed households.

evictions or utilitydisconnections

HomeAgain (formerly Nightly shelter! support Mentally Ill, Alcohol Dependent, DrugEmergency Shelter, Inc.) services* Substance Abuse Dependent, Elderly, BatteredEmergency Shelter and Prevention Program, as well Spouses, Families w/ChildrenCollaborative Housing as rapid rehousing for singleInitiative adultsFreedom House — Nightly shelter/support Alcohol Dependent, DrugTransitional Housing services* Residents may stay Dependent, Veterans, and Victims of

‘ an extended period of time Domestic Violence, & chronicallyhomeless.

HomeAgain Homeless Nightly shelter and supportive Homeless veterans who chronicallyVeterans Transition - (max services for homeless mentally ill, alcohol and drugstay is 2 years) veterans (26 beds for men dependent, HIV/AIDS

and 4 beds for women)Richmond Department of Nightly shelter! staffing Mentally Ill, Alcohol Dependent, DrugSocial Services Overflow resource Dependent, ElderlyShelter Program (61 nights)YWCA Domestic Violence Emergency Shelter with Battered Spouses, Families wIProgram support services childrenYWCA - Homeless Child Licensed child care services Homeless children living in sheltersCare Program to children residing in w/families

homeless sheltersHOMEWARD Lead Continuum of Care Provides Continuum of Care/serviceHomelessness Advocacy agency for Richmond guidance and expertise; administersAgency metropolitan region; local HMIS

HMIS administrator

*Support services include evening meals, showers, personal laundry facilities, educationalworkshops, support groups and case management

Making Awards As a complement to our existing programs and services, the Cityuses Emergency Solutions funds to provide homeless assistance and homelessnessprevention services to individuals and families. The four non-profit service providersto whom we allocate funds help connect individuals and families to housing inaffordable rentals (including public housing) around the city or in housingstabilization arrangements with willing relatives. Clients of these programs have theopportunity to sign on for financial or programmatic support from RDSS within 180days of discharge from their programs, should additional support be required.

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Performance Evaluation for ESG activities The City of Richmond will distributeits Procedures Manual and will provide training to new program participants onprogram procedures and requirements, to ensure long-term compliance withprogram requirements and comprehensive planning requirements, at the beginningof the new fiscal year.

The City’s Department of Economic and Community Development, Division ofNeighborhood Revitalization, will contract with sub-recipients, and will be responsiblefor the reporting, monitoring and compliance of all agencies and sub-recipients usingEmergency Solutions Grant funds, in accordance with HUD’s regulations. Eachcontract will contain a detailed item plan that outlines the goals and objectivesagainst which the sub-recipient’s performance will be measured. The sub-recipientshall provide the Division with a quarterly report on the status of each activity asagreed to in the contract.

The Neighborhood Revitalization Division shall be responsible for monitoring theperformance of each grantee under the terms of the contract and Letters ofAgreement. Each program will be reviewed for compliance or non-compliance withapplicable Consolidated Plan regulations, executive orders, labor standards, EqualEmployment Opportunity, Section 3, environmental and other 504 federalrequirements.

Monitoring will be accomplished through bi-annual on-site visits, analysis of quarterlyreports, review of subcontracts and bid documents, employee interviews,pre-construction conferences and review of activities in relation to the provisions ofthe Davis-Bacon Act and Wage procedures.

The Department of Finance shall conduct financial monitoring, including monthlydesk reviews of expenditures and one on-site visit each year, in order to ensure thatcosts charged against Consolidated Plan activities are eligible.

Continuum of Care Consultation for FY 2012-2013 ESG Allocation Upon therestructuring of the Emergency Solutions Grant program in Fall 2011, the City metwith HOMEWARD, our regional Continuum of Care lead agency, and citywide C0Cagencies, to outline HUD’s new standards for achieving permanent housing solutionsthrough use of ESG dollars. The City solicited new applications from our localhomeless service providers and organized a review panel to make fundingdeterminations based on program outlines and their proposed number of clientsserved. The panel included one community member who was once homeless, avolunteer from Virginia Supportive Housing staff (did not apply for funds) and a staffperson from HOMEWARD. Through this panel, the City was able to determine how itwould allocate funds.

OTHER NARRATIVES AND ATTACHMENTS .4Include any action plan information that was not covered by a narrative in any othersection. If optional tables are not used, provide comparable information that isrequired by consolidated plan regulations.

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fl, VIII. ANNUAL ACTION PLAN REVIEW CHECKLIST FOR FIELDOFFICE STAFF

General Review Criteria Conclusion Comments/Basis forConclusion

Al: If the PJ proposes to use anyHOME funds for assisting []Yeshomebuyers (whether through downpayment assistance, new construction El Noor rehabilitation), does the AnnualAction Plan include resale orrecapture provisions?

Explanation: PJs must submit resale orrecapture provisions to HUD for reviewand approval before using any HOMEfunds for this purpose. HUD mustdetermine that the provisions meet therequirements established in 24 CFR92.254(a)(5)(i) and (ii).

Field Office Action: If yes, continue toQuestion A2. If no, you must contact thePJ and ask that it submit the resaleand/or recapture provisions before theend of the 45-day Annual Action Planreview period or you must inform the PJin writing in the Annual Action Planapproval letter that it may not use anyHOME funds for homebuyer assistanceuntil it has submitted and HUD hasapproved the resale andlor recaptureprovisions to be used.

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General Review Criteria Conclusion Comments/Basis forConclusion

A2: If the PJ will use subrecipients, YesState recipients, urban county orconsortium members, CHDOs or El Noother entities to provide thehomebuyer assistance, are the resale El N/Aor recapture provisions to be used bythese entities submitted for HUDreview and approval as part of theAnnual Action Plan?

Explanation: All resale or recaptureprovisions to be used in a PJ’ s programmust be reviewed and approved by HUDbefore the PJ can use any HOME fundsfor homebuyer projects using thoseprovisions.

Field Office Action: If yes, proceed withyour review, If no, you must contact the

(‘_

PJ and ask that it submit the resaleand/or recapture provisions to be used byone or more of these entities before theend of the 45-day Annual Action Planreview period. If this is not possible orthe PJ fails to respond or submit anacceptable revision, you must inform thePJ in the Annual Action Plan approvalletter that HUD is disapproving its resaleand/or recapture provisions and theentity may not use any HOME funds toundertake any activities related tohomebuyer assistance until the PJ hassubmitted and HUD has approved theresale and/or recapture provisions to beused.

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General Review Criteria Conclusion Comments/Basis forConclusion

A3: If the PJ proposes to use morethan one set of provisions (e.g., both LI Yesresale and recapture, different sets ofrecapture provisions), does the Annual LI NoAction Plan provide an explanation ofthe circumstances under which each LI N/Aform will be used?

Explanation: For example, a PJ may userecapture provisions for its HOMEdownpayment assistance program, butimpose resale provisions on homebuyerunits newly constructed with HOMEfunds by its CHDO. The Annual ActionPlan must explain when it will use eachset of provisions.

Field Office Action: If yes or N/A,proceed with your review. If no, youmust contact the PJ and ask that it reviseits discussion of its resale and/orrecapture provisions to include anexplanation of the circumstances underwhich each set of provisions will be usedbefore the end of the 45-day AnnualAction Plan review period. If this is notpossible or the PJ fails to respond orsubmit an acceptable revision within thereview period, you must inform the P1 inthe Annual Action Plan approval letterthat HUD is disapproving its resaleand/or recapture provisions and it maynot use any HOME funds to undertakeany activities related to homebuyerassistance until the PJ has submitted andHUD has approved the resale and/orrecapture provisions to be used.

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C

C

C

Recapture Provisions Conclusion Comments/Basis forConclusion

Recapture Provisions permit the HOME-assisted homebuyer to sell their unit atany time during the period ofaffordability, to any willing buyer, and atthe price the market will bear. The PJimposes recapture provisions by writtenagreement and by recorded lien. In theevent of a voluntary or involuntary saleduring the period of affordability, the PJmust recapture the amount specifiedunder its recapture provisions.

Bi: Do the provisions reflect one of Specify:the following models? El Yes

- PJ recaptures entire Noamount;

- Pro rata reduction ofrecapture amount duringaffordability period; ;...

- Owner recovers entire . .

investment (down payment . .

and capital improvements)before PJ recapturesHOME investment;

...

- Sharednetproceedsin ..,* ..,

event of insufficient netproceeds;

. . . ::.

- PJ-developed or modifiedprovisions.

Explanation: The HOME regulations at24 CFR 92.254(a)(5)(ii)(A) list fouracceptable recapture models and permitPJs to adopt, develop or modify theirown recapture requirements for HUDapproval.

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B2: Are the provisions described in

adequate detail for the IIUD Reviewer

and interested members of the publicto understand the PJ’s method for

recapturing funds?

Explanation: The Annual Action Planmust describe the recapture provision(s)to be used in sufficient detail for HUDand the public to understand whichprovisions it has chosen and how theywill be implemented. Provisions thatsimply cite or repeat HOME regulationsare not acceptable. The provisions mustbe described in the Annual Action Plan.Similarly, if the PJ has developed itsown provisions or made modifications tothe regulatory models, it must describethose provisions in sufficient detail.

Field Office Action: If yes, proceed withyour review. If no, you must contact theP1 and ask that it revise its discussion ofits recapture provisions to includesufficient detail to permit HUD and thepublic to understand the recapturerequirements being adopted. If this isnot possible or the PJ fails to respond orsubmit an acceptable revision within the45-day review period, you must informthe P1 in the Annual Action Planapproval letter that HUD is disapprovingits recapture provisions and it may notuse any HOME funds to undertake anyactivities related to homebuyerassistance until the PJ has submitted andHUD has approved the recaptureprovisions to be used.

0 Recapture Provisions Conclusion Comments/Basis forConclusion

Yes

ENo

Ei N/A

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B3: Do the provisions indicate thatthe amount subject to recapture is thedirect subsidy received by thehomebuyer?

Explanation: Direct subsidy includes

HOME investment that enabled thehomebuyer to purchase the property.This includes down payment assistance,

closing costs, or other HOME assistanceprovided directly to the homebuyerand/or the difference between the fairmarket value of the property and areduced sales price attributable to

HOME development assistance.Development subsidies (i.e., thedifference between the cost of producingthe unit and the fair market value of theunit) cannot be subject to recapture sincethe homebuyer did not realize a directbenefit from these funds.

Field Office Action: If yes, proceed withyour review. If no, you must contact theP1 and ask that it revise its recapture

provisions to state that only direct

subsidy to the homebuyer is subject torecapture. If this is not possible or the P1fails to respond or submit an acceptable

revision within the 45-day review period,you must inform the P1 in the AnnualAction Plan approval letter that HUD isdisapproving its recapture provisions andit may not use any HOME funds toundertake any activities related to

homebuyer assistance until the P1 hassubmitted and HUD has approved therecapture provisions to be used.

City of Richmond

Recapture Provisions Conclusion Comments/Basis forConclusion

El Yes

EINo

C

C

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Recapture Provisions Conclusion Comments/Basis forConclusion

B4: Do the provisions limit theamount to be recaptured to the net E Yesproceeds available from the sale?

üNoExplanation: The net proceeds are thesales price minus loan repayment (otherthan HOME funds) and closing costs.The PJ must limit the amount subject torecapture to the net proceeds availablefrom the sale. This limitation applies toall units regardless of the type ofrecapture provisions used or to the natureof the sale (voluntary sales includingshort sales, and involuntary salesincluding foreclosures). Any recaptureprovisions that do not explicitly includethis limitation are unacceptable andcannot be approved.

Field Office Action: If yes, proceed withyour review. If no, you must contact thePJ and ask that it revise its recaptureprovisions to state that its recaptureprovisions limit the amount to berecaptured to the net proceeds of thesale. If this is not possible or the PJ failsto respond or submit an acceptablerevision within the 45-day review period,you must inform the PJ in the AnnualAction Plan approval letter that HUD isdisapproving its recapture provisions andit may not use any HOME funds toundertake any activities related tohomebuyer assistance until the PJ hassubmitted and HUD has approved therecapture provisions to be used.

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Resale Provisions Conclusion Comments/Basis forConclusion

Resale Provisions preserve theaffordability and availability of theHOME-assisted homebuyer unit to low-income households for the entire period

of affordability. The PJ controls theresale price by establishing an objectivemethodology for determining what is afair return to the original homebuyer, inan effort to make the property affordableto a reasonable range of low-incomehomebuyers. If the established resaleprice is not affordable to the subsequentlow-income homebuyer, the PJ may berequired to provide additional assistanceto that homebuyer — but may not adjustthe resale price as a result. :

C

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Resale Provisions Conclusion Comments/Basis forConclusion

Cl: Does the resale provision limit resaleof the property during the HOME period El Yesof affordability only to a buyer whosefamily qualifies as a low-income family? No

Explanation: Resale provisions that permitresale of a HOME-assisted unit to asubsequent homebuyer who is not low-income — regardless of the circumstance —

are not acceptable. Resale provisions thatprovide a recapture option to facilitate saleto a subsequent buyer who is not income-eligible (i.e., resale/recapture hybrids) arenot acceptable.

Field Office Action: If yes, proceed withyour review. If no, you must contact the PJand ask that it revise its resale provision tostate that the housing may only be resold toa family that qualifies as low-income. If thisis not possible or the PJ fails to respond orsubmit an acceptable revision within the45-day review period, you must inform the PJin the Annual Action Plan approval letterthat HUD is disapproving its resaleprovisions and it may not use any HOMEfunds to undertake any activities related tohomebuyer assistance until the PJ hassubmitted and HUD has approved the resaleprovisions to be used.

Fifth Program Year Action Plan 29 Version 2.0

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C

C

0

Resale Provisions Conclusion Comments/Basis forConclusion

C2: Does the provision contain a specificdefinition of “fair return on investment?” LI Yes

Explanation: The provision describes in fl Nodetail what return homebuyers can expect ifthey sell their unit during the period ofaffordability. The PJ is expected to identifyan objective standard or index that willdetermine “fair return” on resale. (see C3)

Field Office Action: If yes, proceed withyour review. If no, you must contact the PJand ask that it revise its resale provision toinclude a definition of “fair return oninvestment.” If this is not possible or the P3fails to respond or submit an acceptablerevision within the 45-day review period,you must inform the PJ in the AnnualAction Plan approval letter that HUD isdisapproving its resale provisions and it may :

not use any HOME funds to undertake anyactivities related to homebuyer assistanceuntil the P3 has submitted and HUD hasapproved the resale provisions to be used

Fifth Program Year Action P’an 30 Version 2.0

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q

0*

Resale Provisions Conclusion Comments/Basis forConclusion

C3: Is fair return based upon anobjective index or standard? LI Yes

Explanation: An objective standard or index Nois concrete and publicly accessible and canbe easily measured at the time of originalpurchase and at resale. Examples include: apercentage of the change in median salesprices over the period of ownership, thepercentage change in area median incomeover the period of ownership, and thepercentage change in the Consumer PriceIndex over the period of ownership. Indepressed or declining markets, a loss oninvestment can constitute a fair return. Astandard that ties the return to the originalhomebuyer to the price that a specifichomebuyer or a defined group of low-income homebuyers are able to pay does notconstitute fair return and is not acceptable.

Field Office Action: If yes, proceed withyour review. If no, you must contact the P3and ask that it revise its resale provisions tospecify the standard or index that will beapplied upon resale to provide a fair returnto the homebuyer. If this is not possible orthe P3 fails to respond or submit anacceptable revision within the 45-day reviewperiod, you must inform the P3 in theAnnual Action Plan approval letter thatHUD is disapproving its resale provisionsand it may not use any HOME funds toundertake any activities related tohomebuyer assistance until the PJ hassubmitted and HUD has approved the resaleprovisions to be used.

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C4: Does the basis upon which fair

return is calculated include thehomebuyer’s original investment in theproperty and the increase in market value

attributable to homebuyer investments in

or capital improvements to the property?

Explanation: The provision mustspecifically state that the basis forcalculating fair return is the originalinvestment by the homebuyer and specifictypes of upgrades or additions that will addvalue to the property. (Generally, replacingworn or dated components such asappliances or carpet would not beconsidered an improvement that adds value).The provision must address the types ofchanges that it will or will not include in thatbasis.

Field Office Action: If yes, proceed withyour review. If no, you must contact the PJand ask that it revise its resale provisions sothat homebuyer investment includes both thehomebuyer-provided down payment andhomebuyer-financed improvements thatwould increase the value of the home. Ifthis is not possible or the PJ fails to respondor submit an acceptable revision within the45-day review period, you must inform thePJ in the Annual Action Plan approval letterthat HUD is disapproving its resaleprovisions and it may not use any HOMEfunds to undertake any activities related tohomebuyer assistance until the PJ hassubmitted and HUD has approved the resaleprovisions to be used.

Resale Provisions Conclusion Comments/Basis forConclusion

[1 Yes

LINo

C

C

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Resale Provisions Conclusion Comments/Basis forConclusion

C5: Does the resale provision specificallydefine “reasonable range of low-income LI Yesbuyers” and does it specifically definethat range of low-income persons? No

Explanation: The provision mustspecifically define what constitutes areasonable range of low-income buyers inits communities (e.g., between 70% and80% of area median income). Specifying afamily at 80% of area median income is notacceptable because it does not constitute arange of low-income buyers.

Field Office Action: If yes, proceed withyour review. If no, you must contact the PJand ask that it revise its resale provisions tospecifically define a reasonable range oflow-income buyers. If this is not possible orthe PJ fails to respond or submit anacceptable revision within the 45-day reviewperiod, you must inform the P1 in theAnnual Action Plan approval letter thatHUB is disapproving its resale provisionsand it may not use any HOME funds toundertake any activities related tohomebuyer assistance until the PJ hassubmitted and HUD has approved the resaleprovisions to be used.

Fifth Program Year Action Plan 33 Version 2.0

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C.6 Does the resale provision specifically

describe how the PJ will ensure that the

housing remains affordable to the defined

range of low-income buyers?

Explanation: The PJ cannot require that theresale price be set based solely upon what isaffordable to a specific buyer or the definedrange of low-income buyers, since thiswould not provide a fair return on theoriginal homebuyer’s investment.Consequently, the PJ must outline the stepsthat it will take to ensure that the property isaffordable to a defined range of low-incomehomebuyers (note that this does notguarantee affordability to a specifichomebuyer whose income is lower than thedefined range). These steps may include theprovision of down payment or secondmortgage assistance, first mortgage interestwrite-downs, or other mechanisms thatenhance affordability.

Field Office Action: If yes, proceed withyour review. If no, you must contact the PJand ask that it revise its resale provisions tospecify a standard that will ensureaffordability to the range of low-incomebuyers identified by the PJ, or to specifywhat steps it will take to ensure affordabilityto subsequent low-income buyers. If this isnot possible or the P1 fails to respond orsubmit an acceptable revision within the 45-day review period, you must inform the P1in the Annual Action Plan approval letterthat HUD is disapproving its resaleprovisions and it may not use any HOMEfunds to undertake any activities related tohomebuyer assistance until the PJ hassubmitted and HUD has approved the resaleprovisions to be used.

Cl

Resale Provisions Conclusion Comments/Basis forConclusion

LI Yes

LINo

C

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Dl: If the PJ plans to use a presumptionof affordability instead of enforcement Yesmechanisms to meet the resalerequirement, does the resale provision LI Noidentify specific neighborhoods that willbe subject to the presumption ofaffordability?

Explanation: A presumption of affordabilitycannot be sought or approved for an entirePJ. The presumption can only be made on aneighborhood basis.

Field Office Action: If yes, proceed withyour review. If the presumption is notneighborhood or neighborhood(s)-specific,you must reject the presumption, andprohibit the PJ from using any HOME fundswithout imposing either resale or recapturerequirements. The PJ may resubmit a newpresumption request for HUD’s approval atany time during the program year. If this isnot possible or the PJ fails to respond orsubmit an acceptable revision within the 45-day review period, you must inform the PJin the Annual Action Plan approval letterthat HUD is disapproving its resaleprovisions and it may not use any HOMEfunds to undertake any activities related tohomebuyer assistance until the PJ hassubmitted and HUD has approved the resaleprovisions to be used.

Presumption of Affordability Conclusion Comments/Basis forConclusion

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D2: If this is a new request or renewal of

a presumption issued previously, did thePJ submit a recent market analysis for

each neighborhood for which approval of

the presumption of affordability is

sought?

Explanation: The PJ must submit a separatemarket analysis for each neighborhood forwhich it seeks approval of a presumption ofaffordability, except that it can perform acombined market analysis for a limitednumber of contiguous neighborhoods thatare similarly situated with respect todemographic profile, housing market, andeconomic conditions. The analysis must berecent (performed within the last 12months).

Field Office Action: If yes, proceed withyour review. If the PJ did not submit amarket analysis, did not submit analyses forall neighborhoods, or submitted analysesthat were not completed within the last 12months, you must contact the PJ and askthat recent market analyses supporting thepresumption be submitted. If the analysesare not submitted timely, you must reject thepresumption, and prohibit the P1 from usingany HOME funds without imposing eitherresale or recapture requirements. The PJmay resubmit a new presumption request forHUD’s approval at any time during theprogram year.

Presumption of Affordability Conclusion Comments/Basis forConclusion

El Yes

ENo

El N/A

C

C

•1 -

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Presumption of Affordability Conclusion Comments/Basis forConclusion

D3: If the market analysis was originallysubmitted with a previous year’s Annual YesAction Plan, does the Plan indicate thatthe PJ has determined that an updated Li Noanalysis is not warranted by any changesin the neighborhood’s market conditions? E1 N/A

Explanation: If the PJ becomes aware thatsignificant changes in a neighborhood’smarket conditions since the preparation ofmarket analysis make continuation of thepresumption of affordability inappropriate,it must indicate that in its Annual ActionPlan. The PJ must indicate in the AnnualAction Plan that, in the absence ofsignificant changes, it is continuing its useof the presumption of affordability foranother program year.

Field Office Action: If yes, proceed withyour review. If no, you must contact the PJand ask that it revise and include thisinformation in the presumption section of itsAnnual Action Plan before continuing yourreview. If this is not possible or the PJ failsto respond or submit an acceptable revisionwithin the 45-day review period, you mustinform the PJ in the Annual Action Planapproval letter that HUD is disapproving itspresumption of affordability and it may notuse any HOME funds to undertake anyactivities related to homebuyer assistanceuntil the P1 has submitted and HUD hasapproved the presumption of affordability.

Fifth Program Year Action Plan 37 Version 2.0

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Presumption of Affordability Conclusion Comments/Basis forConclusion

E Yes

ENo

C

6

D4: Does the market analysis include thefollowing:

• An evaluation of the location andcharacteristics of the housing andresidents in the neighborhood(e.g., sale prices, age and amenitiesof the housing stock, incomes ofresidents, percentage of owner-occupants) in relation to housingand incomes in the housing marketarea?

• An analysis of the current andprojected incomes ofneighborhood residents for anaverage period of affordability forhomebuyers in the neighborhoodthat supports the conclusion that areasonable range of low-incomefamilies will continue to qualify formortgage financing?

Explanation: The market analysis, whichcan included a combined market analysis fora limited number of contiguousneighborhoods that are similarly situatedwith respect to demographic profile, housingmarket, and economic conditions, mustcontain this evaluation and the analysis ofthe data must support the conclusion that areasonable range of low-income familieswill continue to qualify for mortgagefinancing.

Field Office Action: If yes, proceed withyour review. If no, you must contact the PJand request that an acceptable marketanalysis be submitted. If the analysis is notsubmitted timely, you must reject thepresumption, and prohibit the PJ from usingany HOME funds without imposing eitherresale or recapture requirements. The PJmay resubmit a new presumption request forHUD’s approval at any time during theprogram year.

Fifth Program Year Action Plan 38 Version 2.0

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D5: Does the information presented in

the market analysis support the PJ’s LI Yesconclusion that the following conditionsare likely to be met in the event of a resale LI Noof the HOME-assisted housing located in

the neighborhood during the affordability LI N/Aperiod without the imposition of

enforcement mechanisms by the PJ:

- the housing will be available

and affordable to a reasonable

range of low-income

homebuyers;

- a low-income homebuyer will

occupy the housing as a

principal residence; and

- the original owner will be

afforded a fair return on

investment?

Explanation: The market analysis mustsupport the conclusion that housing may bepresumed to meet the resale restrictions. Ifthe analysis is flawed or does not supportthis conclusion, the HUD Field Office mustdisapprove the presumption of affordability.

Field Office Action: If yes and all otherrequirements related to the presumptionhave been met, you may approve thepresumption of affordability. If no, youmust reject the presumption of affordabilityand require the use of approved resale orrecapture provisions in the neighborhood(s).

0 Presumption of Affordability Conclusion Comments/Basis forConclusion

Fifth Program Year Action Plan 39 Version 2.0

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:;

•••.• •

C

Fifth Program Year Action Plan 40 Version 2.0

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2012-2013 BUDGET

• • • :

.____&

NJ

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CDBG

CDBG Entitlement GrantCDBG Program RevenueCDBG Prior Year Program SurplusTOTAl. CDBG Budget

Project NameHriiinq & Ninhhrrhrwd Preservation

Adopted Adopted

FY2O11-12 FY2012-13S 4,393,959 $3,914,708

272,041

$ 4,666,000 $ 3,914,708

Adopted Adopted

FY2O11-12 FY2012-13Agency

25th Street/Nine Mile Road Redev Area RRHA $ 200 000 $ 320 000Blackwell NiB RRHA 175 000 25 000Carver Newtowne-West NiB RRHA 175,000 40,000Church Hill Central NiB--SCDHC SCDHC

- 90,000Citywide Emergency Repair PH 360,000 360,000Eastview Revitalization RRHA 70,000 290,000Highland Park NiB — HA 60,000 -

Housing Code Enforcement - Citywide DPDR 435,000 80,000NIB Area Housing Code Enforcement DPDR 315,000 315,000North Jackson Ward RRHA 16,000 20,000Section 108 Loan Repayment Finance 500,000 500,000Swansboro NiB RRHA 125,000 200,000Sub-Total - Housing & Neigh Pres. $ 2,431,000 $ 2,240,000

Economic DevelopmentNeighborhood Economic Development DECD $ 265,000 $ 350,000Citywide Revolving Loan Fund DECD 150 000Sub-Total - Economic Dev.

, $ 415,000 $ 350,000

Planning & AdministrationBlock Grant Administration and Housing DECD $ 285,000 $ 240,000Finance/Monitoring Finance 1 18,000 1 18,000Historic Review DPDR 98,000 88,000Neighborhood Planning DECD 294,000 293,708Rehabilitation Loan Management & Servicing RRHA 75,000 -

Richmond Revitalization Initiative LISC 50,000 -

Sub-Total - Planning & Admin. 739,708$ 920,000 $

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• - -—•

•--

N

. ••. . . . . . .

F

t

F

14:-,: •

p — —

. •1• .:E* i: . • -

Ii

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CDBG

Adopted Adopted

FY2O11-12 FY2012-13

Public ServicesHousing Code Enforcement Counseling DSS $ 100,000 $ 95,000Housing Counseling & Information HOME,, Inc. 200,000 200,000Childhood Lead Poisoning Prevention PHD 90,000 90,000Permanent Supportive Housing VSH 60,000 -

Residential Support for Homeless Families RBHA 95,000 95,000Youth Build Constr. Job Training Project FIRST. 125,000 105,000Sub-Total - Public Services $ 670,000 $ 585,000

TOTAL CDBG BUDGET $ 4,436,000 $ 3,914,708

HOME —.. .4

Adopted Adopted

FY2O11-12 FY2012-13HOME Entitlement Grant $ 1,907,397 $1,072,060HOME Program Revenue 102,603HOME Prior Year Program Surplus 1,166,000TOTAL HOME Budget

S 2,010,000 $2,238,060

Adopted AdoptedProject Name Agency FY 2011 -12 FY 2012-13

HOME ProjectsBellemeade Revitalization Project SCDHC $ 135,000 $ 210,000Blackwell Revitalization Project SCDHC 155,000 150,000Carver Newtowne RPHA

- 250,000Church Hill Central NiB--EHC EHC 220,000 90,000Church Hill Central NiB--RAH RAH 130,000 90,000Church Hill Central NiB--SCDHC SCDHC 90,000 1 10,000City-Wide Community Improvement Program PH 280,000 80,000Community Housing Empowerment NiB DPA HOME., Inc. 150,000 150,000Highland Park Revitalization NiB SCDHC 71,000 100,000HOME Program Administration DECD 100,000 100,060Keystone Program City-wide DPA HOME., Inc. 234,000 -

Maffhew Heights Revitalization SCDHC- 190,000

Neighborhood Stabilization DECD 80,000 500,000NlBTargetAreasRehab PH 160,000 80,000Southern Barton Heights PRHA 85,000 -

Swansboro Revitalization Project SCDHC 120,000 138,000TOTAL HOME BUDGET $ 2,010,000 $ 2,238,060

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EMERGENCY SOLUTIONS GRANT

ESG Entitlement Grant

ESG Prior Year Program Surplus

TOTAL ESG Budget

Project NameCrnarnnnt, Cali iNnne arr.n+

Adopted Adopted

• FY2O11-12 FY2012-13

$ 213,989 $ 380,505

$ 23,989 $ 380,505

AmendedAdopted Adopted

FY2O11-12 FY2012-13Agency

I I IWI i V Ibi III 1 I4I I I

Collaborative Housing Initiative ESI $ 50,000 $ 62,403Prevention and Rapid Re-housing CARITAS 62,000 74,602Homeward Community Information System (HMIS) HOMEWARD 7,500 7,500Emergency Financial Assistance Program DSS 16,855 25,000Emergency/Short-term Transitional Shelter ESI 42,000 42,000ESProgram Administration DECD 5,003 18,000Family Focus Program CARITAS 16,000 16,000Freedom House--Community Shelter FH 28,000 28,000Homeless Single Adult Program CARITAS 30,000 30,000Homeless Veterans Transitional Program ESI 20,000 20,000Overflow Shelter DSS 10,000 10,000YWCA Domestic Violence Program YWCA 17,000 17,000YWCA Homeless Child Care Program YWCA 30,000 30,000TOTAL ESG BUDGET $ 334,358 $ 380,505

HOPWA

Adopted Adopted

FY2O11-12 FY2012-13HOPWA Entitlement Grant $ 781,825 $ 864,491HOPWA Prior Year Program Surplus

TOTAL: HOPWA Budget $ 781,825 $ 864,491

Adopted AdoptedProjectName Agency [ FY2O11-12 FY2012-13

Housing Oiiortunities for Persons with AIDSAIDS Housing Project Fan Free $ 350,325 $ 428,491HOPWA Data Management VCU 17,000 17,000HOPWA Finance Monitoring Finance 5,000 5,000HOPWA Program Administration DECD 18,000 18,000HOPWA Rental Assistance WBCH 264,000 264,000Stratford House VSH 127,500 132,000TOTAL HOPWA BUDGET $ 781,825 $ 864,491

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I.

• . ,•

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PRIORITY NEEDS SUMMARYTABLES

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Page 81: 1yL. THE CITY OF RICHMOND Consolidated Action Plan Annual ... · Commercial Loan Fund, this allocation got its first run in the City during the 2011- ... minority- and women-owned

TABLE 3B ANNUAL HOUSING COMPLETION GOALS

ANNUAL AFFORDABLE RENTAL ExpectedResources used during the period

HOUSING GOALS (SEC. 215) NumberCompleted CDBG HOME ESG HOPWA

Acquisition of existing units LI LI LI

Production of new units LI LI Li

Rehabilitation of existing LI LI LI LIU n its

Rental Assistance8 LI LI LI

Total Sec. 215 Rental 8 LI LI LI LIGoals

ANNUAL AFFORDABLE OWNERHOUSING GOALS (SEC. 215)

Acquisition of existing units 19 LI LI

Production of new units 12 LI LIRehabilitation of existing 51 LI LIu n its

Homebuyer Assistance 21 LI LI LI

Total Sec. 215 Owner 16Goals

LI LI LI LI

ANNUAL AFFORDABLE HOUSINGGOALS (SEC. 215’)

Homeless 1485 LI LI LI LI

Non-Homeless 172 LI LI LI LI

Special Needs 572 LI LI LI LITotal Sec. 215 Affordable 2229Housing

LI LI LI LIANNUAL HOUSING GOALS

Annual Rental Housing Goal 24 LI LI LI LI

Annual Owner Housing Goal 46 LI LI LI LI

Total Annual Housing Goal70 LI LI LI LI

For the purpose of identification of annual goals, an assisted household is one that willreceive benefits through the investment of Federal funds, either alone or in conjunctionwith the investment of other public or private funds.

Page 82: 1yL. THE CITY OF RICHMOND Consolidated Action Plan Annual ... · Commercial Loan Fund, this allocation got its first run in the City during the 2011- ... minority- and women-owned

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