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Home My WebLink About2009 06_Participate in Metro Tulsa Home Consortium_2009.06.16CITY OF OWASSO, OKLAHOMA RESOLUTION N0.2009-06 APPROVING PARTICIPATION IN THE METROPOLITAN TULSA HOME CONSORTIUM AND AUTHORIZING THE MAYOR TO EXECUTE A HOME INVESTMENT PARTNERSHIP ACT CONSORTIUM AGREEMENT. WHEREAS, the National Affordable Housing Act of 1990 created the HOME Investment Partnership Program; and, WHEREAS, the Act provides that units of general local government that are geographically contiguous may form a consortium for the purpose of qualifying for a HOME formula grant allocation; and, WHEREAS, The City of Owasso desires to enter into a legally binding Cooperation Agreement with other contiguous local governments in the Metropolitan Tulsa area. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Owasso approves participation of the City of Owasso in the Metropolitan Tulsa HOME Consortium, known also as the Tulsa County HOME Consortium. BE IT FURTHER RESOLVED that the City of Owasso authorizes the Mayor to execute the Metropolitan Tulsa HOME Consortium Agreement. OP D t is 16th ay of June, 2009. Stephen Cata della, Mayor City of Owasso, Oklahoma Attest: Sherry B~ op, City erk "9 ~ N ~' OFFICIAL ~ SEAL c MEMORANDUM TO: THE HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: ERIC WILES COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: RESOLUTION N0.2009-06, EXTENTION OF OWASSO'S PARTICIPATION IN THE HOME CONSORTIUM DATE: June 11, 2009 BACKGROUND: The City of Owasso is a participating member in the HOME Consortium, a group of local governments that is eligible for housing improvement funds allocated by the department of Housing and Urban Development (HUD) through INCOG. The HOME Investment Partnership Program provides federal funds to states and eligible local governments for housing assistance programs. The HOME Investment Partnership Act allows contiguous local governments to form a consortium to qualify as participating jurisdictions for their own allocation of funds. Owasso is one of 24 members of the Tulsa County HOME Consortium. These 24 jurisdictions enter into a cooperative agreement to extend the consortium every three years. ADVANTAGES FOR PARTICIPATION IN CONSORTIUM: Prior to the Consortium, cities of less than 50,000 population and counties were eligible for assistance only on a statewide competitive basis through the Oklahoma Department of Commerce. However, the Tulsa County HOME Consortium receives an annual allocation of funds, and the Consortium has more flexibility in designing specific programs than an individual municipality would have. The Consortium does not include the City of Tulsa as they receive their own allocation of funds. Affordable housing activities undertaken by the Consortium include the construction of elderly apartments, housing rehabilitation of existing single-family homes, new construction ofsingle-family homes, and homebuyer assistance. RENEWAL OF THE CONSORTIUM AGREEMENT: It is time to renew the Consortium for another three-year period. Anew three-year cooperative agreement to continue participation in the Metropolitan Tulsa HOME Consortium satisfying the program requirements has been developed. The cooperation agreement, with supporting documentation, must be submitted to the department of Housing and Urban Development (HUD) by June 30, 2009. Extension of this designation by HUD will be made by September 29, 2009 so that the Consortium will receive a HOME allocation for FY 2010-2012. COST OF PARTICIPATION: There are no Consortium membership assessments or fees; there will be no cost to the City of Owasso. RESOLUTION N0.2009-06: Resolution No. 2009-06 is the proposed vehicle by which the City of Owasso would extend its participation in the Tulsa County HOME Consortium. The extension would allow participation in the Consortium through FY 2012. RECOMMENDATION: The staff recommends approval of Resolution No. 2009-06. ATTACHMENTS: 1. Resolution No. 2009-06 2. Correspondence from INCOG date May 28, 2009 METROPOLITAN TULSA HOME CONSORTIUM COOPERATION AGREEMENT This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. The City of Owasso Executed for The City of Owasso ~- ~ ~ , 2009. By: Mayor Stephen Cataudella O G a voluntary association of local governments serving creek, Osage, rogers, tulsa and wagoner counties jl ~ v 201 west 5~' street, suite 600 tulsa, Oklahoma 74103-4236 918/584-7526 MEMORANDUM TO: CITY OF OWASSO FROM: Claudia Brierre, SUBJECT: Extension of HOME CONSORTIUM Agreement DATE: May 28, 2009 BACKGROUND: The HOME Investment Partnership Program provides federal funds to states and population- eligible local governments for housing assistance programs. The HOME Investment Partnership Act allows contiguous local govemments to form a Consortium to qualify as a participating jurisdiction for its own allocation of funds. In 1994, the Metropolitan Tulsa HOME Consortium, with 19 participating jurisdictions, was designated by HUD for a three year period, FY 1995-97, with Tulsa County acting as the "lead entity." Continuation of the Tulsa County HOME Consortium has subsequently been authorized for five succeeding three-year periods from FY 1998 to FY 2009. There are now 24 participating local govemments. The City of Owasso and the other 23 jurisdictions enter into a cooperative agreement for each three year period. A listing of current jurisdictions is attached. Advantages for the Consortium include an annual allocation of funds to the consortium and flexibility in program design. Prior to the Consortium, cities of less than 50,000 population and counties were eligible for assistance only on a statewide competitive basis through the Oklahoma Department of Commerce. The Consortium does not include the City of Tulsa as they receive their own allocation of funds. Affordable housing activities undertaken by our Consortium include the construction of elderly apartments, housing rehabilitation of existing single family homes, new construction of single family homes, and homebuyer assistance. It is time to renew the Consortium for another three-year period, for FY 2010-2012. Anew three-year cooperative agreement to continue participation in the Metropolitan Tulsa HOME Consortium has been developed and will be taken to each of the 24 jurisdictions for their continued approval. The cooperation agreement, with supporting documentation, must be Memorandum Page 2 May 28, 2009 submitted to HUD by June 30, 2009. Extension of this designation by HUD will be made by September 29, 2009, so that we will be able to receive a HOME allocation for FY's 2010-2012. The annual funding amount for the Consortium is dependent upon the annual appropriation level of the program and the number of participating local governments. Although the amount of funds available for FY2010 is not known at this time, it is estimated that the FY2010 annual funding level for the Metropolitan Tulsa HOME Consortium will be approximately $1,176,812. While the HOME program requires a 25 percent match, there are no Consortium membership assessments or fees. Eligible sources of match utilized by the Consortium include the value of below-market-rate-interest on loans to low-income home-buyers, cash contributions from non- federal sources, the value of customary taxes and fees that are waived, the cost of infrastructure investments directly related to housing being assisted. The match may also be reduced for areas meeting certain criteria of fiscal distress or be waived for up to two years for areas designated as federal disaster counties. Currently, the Consortium has "banked" match in an amount to meet match requirements for approximately three years. A policy committee, representing each participating local government, has been established to develop consortium policies. Staff support is provided by INCOG. REQUEST FOR ACTION: INCOG staff recommends that the City of Owasso approve participation in the Metropolitan Tulsa HOME Consortium. A resolution approving continued participation in the consortium and authorizing execution of the cooperation agreement is attached. FOR JUNE 16. 2009 OWASSO CITY COUNCIL. AGENDA