HomeMy WebLinkAboutAppropriating $35,000 Community Development Block Grant Fund to Develop a Neighborhood Housing Services ProgramPassed by the Common Council of the City of South Bend, Indiana_
May 2 2 -1978
IRENE K. GAMMON
Attest:
Presented by me to the Mayor of the City of South Bend, Ind'ana
May 23 78
Clerk
Common Council
� City Clerk
IRENE K. GAMMON
Approved and signed by me 11�.� .�, 2 1
07
BILL NO.
ORDINANCE NO. �, 36 b �- _2 IF
AN ORDINANCE APPROPRIATING $35,000 FROM THE COMMUNITY
DEVELOPMENT BLOCK GRANT FUND, TO DEVELOP A NEIGHBORHOOD
HOUSING SERVICES PROGRAM, TO BE ADMINISTERED BY THE
CITY OF SOUTH BEND THROUGH ITS DIVISION OF COMMUNITY
DEVELOPMENT.
STATEMENT OF PURPOSE AND INTENT:
The City of South Bend, in creative and affirmative partnership
with city residents, the private sector, and the federal government, is
committed to a multi- faceted policy of neighborhood revitalization, pres-
ervation, and improvement. A critical element in this neighborhood im-
provement policy is the maintenance and rehabilitation of the City's exist-
ing housing stock. Recognizing the importance of housing rehabilitation,
the City now finds that it has the opportunity to further expand its
housing rehabilitation efforts by facilitating the development of a
Neighborhood Housing Services Program.
NOW; THEREFORE, BE IT ORDAINED by the Common Council of the City
of South Bend, Indiana, as follows:
SECTION I. The sum of $35,000 is hereby appropriated for the
program year starting July 7, 1977, from the Community Development Block
Grant Fund (Program Year 1977). This appropriation shall be administered
by the Division of Community Development as set forth below:
COMMUNITY DEVELOPMENT PROGRAM
PROGRAM - CD - 77 - 902
PURPOSE AMOUNT
Neighborhood Housing Services Development $35,000
TOTAL $35,000
SECTION II. The Common Council hereby approves the agreement
between the Urban Reinvestment Task Force and the City of South Bend,
Indiana, which is attached hereto.
SECTION III. This Ordinance shall be in full force and effect
from and after its passage by the Common Council and approval by the
Mayor.
1st P,FADING S X- 7 V
PUBLIC HEARIN(3 $'+ aa- a S
2nd READING ,S--
NOT APPROVED
REFERRED
PASSED -.. - G? a - -) J)
Wnlbeir If the Common Council
21 I signed only to provide ari
opporrcnit;� for discussion
and Council action on the issue.,
RED IN C? ERIVS OFFICE
MAY 3 1978
Teens (rLt.r,E, j?'f
CITY CLERK, SOUlh > LNIJ, i U-
AGREEMENT BETWEEN THE URBAN REINVESTMENT TASK FORCE AND THE
CITY OF SOUTH BEND, INDIANA
APR l 1978
I. The Urban Reinvestment Task Force ( "Task Force ") in conjunction with
the Federal. Home Loan Bank of Indianapolis will undertake to develop
a Neighborhood Housing Services program in the city of South Bend,
Indiana, subject to the considerations and conditions outlined.
A. A Neighborhood Housing Services (NHS) includes the development
of a working relationship between residents of a specific
neighborhood and a group of financial institutions in coopera-
tion with city government. It involves the creation of a
Revolving Loan Fund which would be controlled by the NHS. The
NHS would assist residents of the neighborhood to improve their
homes and bring them at least to minimum code standards, by pro-
viding counseling, assistance in dealing with contractors, re-
.ferrals to private financial institutions, and in cases where
the homeowners are unable to meet commercial credit standards,
by providing direct loans at flexible rates and terms.
B. In cooperation with the District Federal Home Loan Bank, of
Indianapolis, the District Federal Reserve Bank, the Federal Deposit
Insurance Corporation, the Office of the Comptroller of the
Currency, and State bank and savings and loan supervisors, as
appropriate, the Task Force will help convene financial institutions,
and obtain their interest in the program: One or more meetings
of industry leaders called by the regulatory agency heads should
take place before the actual Workshop program begins. The
PAGE 2
program .is part of the-process utilized by the Task Force in the
development of an NHS.
C. City Administrators will be asked to work closely with the
developmental program and participate in decisions on rein-
vestment in the selected neighborhood.
1. The Task Force staff will maintain liaison with the city
during the developmental program. Appropriate city staff
members will be invited to participate in the workshop'
activities which are part of the developmental process.
2. During the developmental program expressions of neighborhood
desires in regard to services and public improvements and
amenities will be obtained. In discussion with city officials,
agreements will be sought during and after the developmental
program on attainable goals and timetables of improvements.
Once the NHS has been established, the NHS Board of Directors
and city government shall work together concerning the need
for services and public improvements.
3• When city services are in need of improvement to upgrade the
neighborhood environment, these services shall be improved
by the city. In order to accomplish this, the city hereby
agrees to provide approximately $50,000 per year for three
consecutive years in the NHS neighborhood, provided such services
are determined to be necessary. Further, such city investment
shall not exclude the utilization of municipal improvement
PAGE 3
techniques (such as Barrett Law) to accomplish improvements.
4. The City of South Bend agrees to provide sensitive, systematic,
door to door housing code inspection.to be undertaken in the
NHS neighborhood with the appropriate staff.
5• The City of South Bend agrees to provide a mechanism to
place Section 8, Rental Housing Assistance of the Housing
and Community Development Act of 1974, in the NHS neighborhood.
6. The City of South Bend will provide city staff resources in
data gathering and analysis during program development.
D. Adverse factors could arise which would make the development of
a Neighborhood Housing Services program impossible. These include
the inability to retain the cooperation of a sufficiently large
number of financial institutions to support the program, determination
that there were not sufficient public or philanthropic resources
to develop adequate revolving loan funds, or.the development of
neighborhood antagonism to the program or political opposition to
it. In the event such conditions arose and could not be overcome,
the Task Force in conjunction with the City of South Bend, Indiana
would mutually agree to terminate the developmental program. In
this event, the task force shall return unused portion of budgetary
support which has been provided for the developmental program to
the City of South Bend, Indiana.
II. Developmental Process
Bringing a viable NHS into operation envisages an effort lasting about
PAGE 4
ten to twelve months, during which a careful process will .take place
which has been developed over the past five years of successful
implementation of Neighborhood Housing Services programs in thirty-
eight cities.
Neighborhood Housing Services represents a sophisticated blend of
private- public- community involvement, and must be constructed with the
greatest care. The first months are spent in developing working
relationships with local government, community and financial industry
representatives, and selecting a local staff person with the skills
and knowledge about the local scene needed to work out cooperative
relationships, under the supervision of the Task Force's Field
Representative. The Task Force Associate .Director and Assistant
Director will also participate at key points in the developmental
process.
When the necessary relationships have been developed, a week work-
shop process is commenced wherein the concept is introduced to a
group of approximately 45 -60 persons (about one -third each from
financial institutions, the community at large, and local government
and regulatory bodies). These individuals adapt -the NHS model to
local institutions and situations and form a committee structure which
works out the details of incorporation, funding, neighborhood
priorities, etc.
The Workshop activities include:
1. a three (3) day session (planning and orientation workshop)
followed by six (6) to eight (8) weeks of committee work,
2. a two (2) to three (3) hour session (site selection workshop)
followed by six (6) to eight (8) weeks of committee work,
r
PAGE 5
3. a one (1) and one-half.(-f) day session (resident inclusion
workshop) followed by four (4) to six (6) weeks of
committee work,
4. a two (2) to three (3) hour session (organizational meeting)
followed.by. four (4) weeks of committee work,
5. a two (2) to three (3) hour session (an incorporation meeting)
resulting in the actual incorporation of a Neighborhood
Housing Services.
During this workshop structure, residents of the neighborhood chosen for
the program are brought into the process, fully informed and involved
in creating the non- profit corporation that results.
After incorporation, the new institution is aided in obtaining its non-
profit tax status, in obtaining foundation support and in selecting and
training permanent staff. The local Task Force staff member then works
for a short period with the newly hired staff in setting up work procedures.
When the program has become fully operational, an informational seminar
is arranged for lending officers and appraisers, of all participating
financial institutions, fee appraisers, representatives of private mortgage
companies, and regulatory agencies' examiners. Direct Task support phases
out at this point, except for liaison and information assistance, and
the NHS becomes an independent private entity. After becoming operational,
NHS operating expenses will approximate $60,000 per year, per neighborhood,
on an outgoing basis, and a High Risk Revolving Loan Fund must be built up
to a total of $300,000- $400,000 over a two or three year period.
PAGE 6
III. Developmental Cost
The following breakdown show the elements involved
in the developmental
cost of $35,000; however, the $35,000 is presented
as lump -sum
expenses to permit flexible budgeting among expense
categories to
meet unforeseen contingencies in the developmental
process.
Local Staff (Full -time, approximately 10* months)
$12,500
Travel and 'training for local staff
3,000
Fringe costs (FICA, vacation, life and health
insurance, local staff)
2,000
Workshop Expenses
Lodging, meals, meetings
7,000
Speakers, resource persons
2,000
Participant's travel
4,000
Follow -up Seminars for Lending Officers,
appraisers and private mortgage
insurance representatives
2,500
Miscellaneous
Materials, postage, printing, telephone
contingencies
2,000
TOTAL $35,000
Any unexpended balance of development funds will be contributed to the Neighborhood
Housing Services Corporation based on the reallocation process of the City
of South Bend.
IV. Budgetary support for the developmental program should be paid upon
execution of this agreement to the Urban Reinvestment Task Force whose
comptroller is the Fiscal Agent of the Federal Home Loan Banks. The
Fiscal Agent will act as the program controller, and disburse and account
for funds. Any checks issued for the program must be made payable to
PAGE 7
Fiscal Agent, "Office of Neighborhood Reinvestment," and forward c /o:
Constantine Giviskos
Assistant Director for Administration & Finance
Urban Reinvestment Task Force
1120 19th Street, N. W., Suite 600
Washington, D. C. 20036
V. Upon successful development of the Neighborhood Housing Services
corporations:
A. The Urban Reinvestment Task Force shall grant $50,000 to the
NHS High Risk Revolving Loan Fund following a review of the
program.
B. The city shall grant not less than $80,000 per year for three
consecutive years to the NHS in support of the High Risk Revolving
Loan Fund, said funds to be conveyed to the NHS in an aggregate
sum once incorporated and the same for the following consecutive
years.
VI. Contractual obligation of the office of Neighborhood Reinvestment -
The Urban Reinvestment Task Force is a joint effort of the Chairman
of the Federal Home Loan Bank Board, a member of -the Board of Governors
of .the Federal Reserve System, the Comptroller of the Currency, Chair-
man of the Federal Deposit Insurance Corporation and the Administrator
of the National Credit Union Administration. The Task Force provides
policy guidance for the work of its staff, but does not act as a con-
tracting party. The Office of Neighborhood Reinvestment of The Federal
Home .Loan Banks has assigned members of its staff to work as the staff
of the Task Force; the office of Neighborhood Reinvestment assumes all
obligations and all rights attributed to it or to the Task Force under
PAGE 8
the terms of this agreement.
VII. All of the direct funding commitments made by the City of South Bend
in this contract are contingent upon continued Federal funding to
the city.under the Housing and Community Development Act of 1974 and
contingent upon eligibility of activities under said Act.
Pursuant to fulfilling the terms of this written agreement, the Mayor of
the City of South Bend with the approval of the Common Council of the City
of South Bend concurs with the conditions herein, and further agrees to
provide the developmental funds of $35,000 on the lst day of June, 1978.
URBAN REINVESTMENT TASK FORCE
Signed:
William A. Whiteside, Director
Office of Neighborhood Reinvestment
Federal Home Loan Banks
Date:
CITY OF SOUTH BEND
BY:
Date:
The Federal Home Loan Bank of Indianapolis agrees to cooperate with the Urban
Reinvestment Task Force and the City of South Bend, Indiana in carrying
out the development of the Neighborhood Housing Services in the City of South
PAGE 9
Bend, Indiana as set forth above.
The coope.ration of the Federal Home Loan Bank of Indianapolis under the
Agreement shall consist of making available the services of a representative
of the Bank for consultation and advice at reasonable intervals concerning
methods and procedures for carrying out the objectives of the Agreement.
FEDERAL HOME LOAN BANK OF INDIANAPOLIS
By:
Date:
CITY of SOUTH BEND
PETER J. NEMETH, Mayor
COUNTY CITY BUILDING SOUTH BEND, INDIANA 46601
DEPARTMENT OF HUMAN RESOURCES AND ECONOMIC DEVELOPMENT
COMMUNITY DEVELOPMENT PROGRAM May 3, 1978 219/284.9335
Carl Ellison
Director
Jon R. Hunt
Deputy Director
M E M O R A N D U M
TO: Members of the Common Council
FROM: Carl Ellison �12 U_-O.
SUBJECT: Neighborhood Housing Services
South Bend has the opportunity to participate in the highly successful
"Neighborhood Housing Services" program conducted by the Urban Reinvestment
Task Force in a number of cities throughout the country. Through the NHS
program, the Urban Reinvestment Task Force - -which consists of federal finan-
cial regulatory agencies including Federal Deposit Insurance Corporation,
National Credit Union Administration, Federal Home Loan Bank, Federal Reserve
System, and the Comptroller of the Currency, in addition to the Department of
Housing and Urban Development -- stimulates the development of a local partner-
ship of neighborhood residents, the private sector, and local government.
This partnership commits itself to stemming neighborhood decline and plays
a significant role in operating the NHS program.
In order to permit the development of an NHS program, $35,000 is needed.
Accordingly, the City Administration proposes to revise the City's 3rd
Year Community Development Plan by deleting the following activities:
1) Playground Equipment ($15,000)
The City Administration finds that sufficient playground
equipment (funded through previous Community Development
park improvement activities) exists within parks situated
inside Community Development target areas. Should addit-
ional playground equipment needs be identified at a later
time, the City Administration commits itself to the pro-
vision of Community Development funds to meet these needs.
2) Coquillard Park ($20,000)
During the 2nd program year, approximately $15,000 of CD
funds was utilized to develop an enclosed tot lot within
Memorandum - South Bend Common Council
Page 2
May 3, 1978
Coquillard Park. Additional improvements were anticipated
with the 3rd year funds now proposed to be reprogrammed.
However, neighborhood disagreement over the location of
basketball courts served to delay further action.
Inasmuch as no further park development activity at
Coquillard is anticipated to begin prior to late July, the
City Administration finds it practical to now reprogram the
aforementioned idle funds. The City Administration commits
itself to the replacement of these funds out of "Unspecified
Local Option" funds set aside in the 4th Year Community
Development plan.
By deleting the above activities, the City Administration will then
program $35,000 to fund the development of a Neighborhood Housing Services
program. Therefore, the attached bill seeks the appropriation of these
funds.
Should you have questions or wish additional explanation of this matter,
please contact me.
CE /br
Tantnti ttr Irvort
tin tot Townwn floamil of t4r (Inn of #01# lornd:
Your Committee of the Whole
to whom was referred
A BILL APPROPRIATING $35,000 FROM THE COMMUNITY
DEVELOPMENT BLOCK GRANT FUND, TO DEVELOP A NEIGH-
BORHOOD HOUSING SERVICES PROGRAM, TO BE ADMINISTERED
BY THE CITY OF SOUTH BEND THROUGH ITS DIVISION OF
COMMUNITY DEVELOPMENT.
Respectfully - report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED
TO THE COUNCIL FAVORABLE.
FRANK HORVATH
Chairman
FRIX P'noss 001W rul412HINO eon