COVER SHEET Applicant Organization Lakewood Division of Community Development Street Address 12650 Detroit Avenue City, State, Zip Lakewood, OH 44107 Organization Type Municipality Contact Person Mary Leigh Title Programs Manager Phone 216-529-7681 Email Mary.Leigh@lakewoodoh.net Federal Tax ID # 34-6001633 DUNS # 020629093 Project Name Repair Accessibility Maintenance Program (RAMP) Total Project Cost ($) $150,000 CDBG Funding Request ($) $150,000 Summarize the Project for Which CDBG Funds Are Being Requested The Repair, Accessibility, Maintenance Program provides grants and forgivable loans to Lakewood homeowners who need assistance paying for critical property repairs. The program s overarching goal is to improve the condition, functionality, and accessibility of Lakewood s housing stock so that affordable housing is preserved for current and future low and moderate income households. Participants must meet current federal income guidelines, occupy the property, have exterior code violations, and lack the equity and assets to complete necessary repairs. Continued investment in the City s historic housing stock is essential to preserve a variety of housing options for future generations 1
I. CDBG NATIONAL OBJECTIVE Low-Moderate Income Housing (LMH): Activities including acquisition, site improvements, rehabilitation, and conversion that provide or improve permanent residential structures which, upon completion, will be occupied by low-moderate income households. The housing can be either owner- or renter-occupied and can be either single-family or multi-unit structures. II. CDBG-ELIGIBLE ACTIVITY CATEGORY Housing Rehabilitation (Residential): The repair, rehabilitation, or reconstruction of single- and multi-family owner and renter occupied housing including: bringing property up to local codes and standards; energy efficiency/weatherization; handicapped accessibility/visitability; and emergency repair programs. CDBG may be provided as grants, loans, loan guarantees, interest subsidies, or certain other forms of assistance. III. HUD-Designated Performance Measure & Performance Outcome Performance Measure Provide Decent Affordable Housing Performance Outcome Availability/Accessibility Affordability Sustainability IV. PROJECT NARRATIVE Please refer to page 9. V. ANTICIPATED BENEFITS & BENEFICIARIES 1. FY15 Repair, Accessibility & Maintenance (RAMP) Goals i. 7 loans issued; $140,000 ($17,000 per project) ii. 4 grants; $20,000 ($5,000 per project) iii. 7 loans initiated; 4 loans completed iv. 4 grants initiated and completed v. 11 units assisted vi. 11 low mod households assisted 2. If funded, what are the proposed program s spin-off community benefits? Properties are preserved before a deficient item, like a roof, can cause damage that will in the future be far more expensive to fix or require demolition. The last economic barrier to assistance, financial, is removed. 3. To which set of income eligibility guidelines does this program adhere? (e.g. HUD Low-Moderate Income; Housing Choice Voucher Program, Federal Poverty) HUD Low-moderate income 2
4. List the program s primary client eligibility criteria. i. Own and occupy property ii. Meet low and moderate income guidelines iii. Current with City bills (water, tax, etc ) iv. Less than $50,000 in assets (savings, home equity, investments, etc ) 5. What is the anticipated FY15 vs. FY13 change in accomplishments achieved (e.g. projects initiated, projects completed, units/households assisted, grants/loans issued, etc ) and on what basis is this change (or lack thereof) anticipated? 6. Unduplicated number of units & households in each of the past two (2) years. # Units Assisted LMI Households Assisted FY12 N/A N/A FY13 7 9 VI. PROJECT SCHEDULE 1. Anticipated quarterly expenditures. Quarter Total Project Expenditures CDBG Grant Expenditures Q1 2015 (Jan-Mar) 20,000 20,000 Q2 2015 (Apr-Jun) 50,000 50,000 Q3 2015 (Jul-Sep) 50,000 50,000 Q4 2015 (Oct-Dec) 40,000 40,000 Total FY15 Program Year $150,000 $150,000 2. In the table below, provide an estimated FY15 project schedule indicating significant milestones (e.g. planning, budgeting, advertising, inspections, bidding, hiring, service delivery, discrete units of work or project phases completed, etc.) and an anticipated completion deadline for each. Projected FY15 Work Schedule Milestone Completion Deadline Final payments, end of year reporting, project wrap up and pre-2015 12/31/14 advertising Additional direct marketing & coordination with Division of Housing 3/31/15 and Building and Lakewood Alive Mid-year assessment of program including current success 6/30/15 Wrap up of current year construction, contractor payments, continued 10/31/15 processing of applications through all stages of work Receipt, processing and close-out of current year applications 12/31/15 3. Anticipated quarterly program activity FY15 Quarter Loans/Grants Issued Q1 2015 (Jan-Mar) 2 Q2 2015 (Apr-Jun) 3 Q3 2015 (Jul-Sep) 4 Q4 2015 (Oct-Dec) 2 Total FY15 Program Year 11 3
VII. OUTCOMES-BASED PERFORMANCE MEASUREMENT Please review Attachment II - Measuring Program Effectiveness then answer questions 1-6 by applying the Federal Outcomes-Based Performance Measurement Framework to the program for which CDBG funding is being requested. 1. Goals: List and briefly describe the broad, general goals of the proposed program. To improve the condition of the City s existing housing stock through assistance that ensures exterior code compliance, as well as the safety and accessibility of each program participants homes. 2. Inputs: Indicate the resources to be used to achieve project objectives (e.g. staff, facilities, equipment, supplies) as well as anticipated constraints on the program (e.g. laws, regulations, and requirements tied to receiving funds). Staff will develop plans and specifications for rehab of properties, ensure that federal requirements including Section 106 (historic) and Lead are met, assist homeowner s with finding and selecting competent contractors and effectively manage costs. 3. Activities: List and briefly describe the actual work or services to be carried out. Each activity must be linked to an output listed below. Accept and process applications, conduct property inspections (Building and DCD), issue project rehab specifications, present applications and rehab costs to loan approval board, provide leads on contractors, monitor work, prepare and file liens. 4. Outputs: List and briefly describe the quantifiable products of the agency s activities and measurements of the amount of work accomplished (e.g. number of total & low-mod income individuals/households served, number of housing units rehabbed, etc ). Each output must be linked to an activity listed above. Approximately 11 units brought into exterior compliance and assistance provided to 11 low and moderate incomes residential property owners and tenants. 5. Outcomes: Please choose one or more of the following outcomes that best describe the nature of the benefits provided to individuals, families, organizations, and the community as a result of implementing the proposed project. Availability/Accessibility of Services Affordability of Services Sustainability & Promoting Livable or Viable Communities 6. Outcome Measurement: Describe the evaluation tools, methods and benchmarks that will be utilized to measure achievement of the outcome(s) selected in #5. DCD maintains a database to collect demographics (who have been assisted), the types and costs of repairs, and monitors activity through to completion of the project. The City is required to report accomplishments on an annual basis to the federal Department of Housing and Urban Development (HUD) including units brought up to code/local standards, units made accessible or energy efficient and properties where lead has been remediated. 4
VIII. FINANCIAL INFORMATION 1. CDBG Line-Item Expense Budget Expense Category Total Project (A) CDBG Only (B) CDBG % of Total (B/A) Salaries $8,000 $8,000 100% Fringe Benefits 2,000 2,000 100% Sub-Total Salaries & Fringe $10,000 $10,000 100% Rent/Lease Insurance Materials & Supplies Professional Services Postage Travel Utilities/Telephone Insurance Equipment Indirect/Overhead Costs Contractor Payments: $140,000 $140,000 $140,000 Sub-Total Operating Costs $140,000 $140,000 $140,000 Total Project Costs $150,000 $150,000 $150,000 2. Identify all personnel involved in planning, administering, implementing and evaluating the project. Job Title Status Time Devoted to Program New/ Existing Programs Manager FT PT Existing Brief Summary of Responsibilities High level program management budget, mortgage document prep and filing, guidelines, federal regulations over site Program Coordinator FT PT Existing Construction management and supervision Project Specialist FT PT Existing Applications and project underwriting 3. Calculate the following Total & CDBG Costs Per Household Served Total Program Costs Unduplicated Household Served $13,000 CDBG Grant Request Unduplicated Household Served $13,000 5
4. Are project costs reasonable and justifiable? In order to ensure that federal environmental regulations which include historic, lead, and asbestos are met additional costs over and above the expected for similar projects completed privately are often incurred. The benefit though is that the materials utilized are typically more in keeping with the historic character of the home, create safer living conditions for occupants, and preserve the integrity of the home for future generations. 5. How will the division modify the program if full funding is not received? Fewer projects 6. If this project includes physical improvement(s), what is their life expectancy? 10 20 years 7. Project Funding Sources Funding Source Requested *Committed Total Applicant Agency Funds CDBG FY14-15 Carry Forward Funds (Estimated) Other (Non-CDBG) Federal State Government Local Government County Government Private Sector (Foundations, etc ) Revenues (Client Fees/Program Income) Other: Other: Other: Lakewood FY15 CDBG Request $150,000 $150,000 Totals $150,000 $150,000 IX. APPLICANT INFORMATION & CAPACITIES 1. Describe the division s mission, purpose, goals and objectives including specific qualifications to implement the proposed project and previous success executing similar programs. To improve and add depth to the City s existing housing stock by improving property conditions through assistance that ensures exterior code compliance, safe occupancy and accessibility. 2. Do other Lakewood organizations offer the same or substantially similar services? No, although Lakewood Alive provides exterior paint assistance and assists homeowner s obtain assistance through available programs including those offered by the City of Lakewood. If yes, describe how the proposed program will partner with and/or enhance rather than duplicate these efforts. 3. What is the division s geographic service area? City of Lakewood 4. Is the division itself or its personnel licensed or accredited to perform some or all of the activities described in this proposal? If yes, which personnel and by whom? Program Coordinator holds a State of Ohio Lead Risk Assessor License. 5. Does the division have the capacity to serve non-english-speaking persons? If yes, describe. If no, describe either plans to develop this capacity or why this capacity is unnecessary. We have in the past and continue to utilize multi-lingual City employees and English speaking family members to provide translation services. While it has not been necessary, the City will make every effort to accommodate program participants for whom English is not the primary language or if interpreters are needed for the hearing impaired. 6
6. How many Lakewood residents did the division serve during FY13? 32 (All rehab programs); 10 (RAMP) 7. How many low-moderate income Lakewood residents did the division serve during FY13? 31 (All rehab programs); (10 RAMP) 8. Indicate the division s annual expenses by type in the table below. (Based on FY2013) Expenditure Type Amount % Total Salaries & Benefits $93,000 5% Operating Costs $77,000 4% Capital Costs $1,700,000 90% Total Annual Budget $1,870,000 9. List the division s primary revenue sources. i. CDBG ii. HOME 10. Explain any significant changes in the division s revenue sources over the past two (2) years. Community Development continues to work with program income from Neighborhood Stabilization Program dollars already received and invested, but new allocations are not expected. Budget cuts have resulted in the City receiving approximately $100,000 less annually in HOME funds that in earlier years. 11. What strategies are being developed to generate new and/or different funding sources? Community Development operates a revolving loan fund for its Home Improvement Loan Program and is using program income from the sale of rehabbed homes. Whenever feasible, leverage other resources and organizations to create partnerships that have capacity to expand the reach of Division Programs and Initiatives. 12. What efficiency and/or cost effectiveness measures has the division implemented over the past two years? Began using WebQA to manage Rehab Program applications. Information is retained in same place as the Division of Housing and Building. The system allows staff to track, monitor and manage project information more efficiently and allows for information to be easily shared between DCD and Housing and Building. 13. Describe the tools and methods used by the division to track, evaluate, and document organizational effectiveness including methods used to track individual client progress. All staff are trained in LEAN and Six Sigma. Staff frequently evaluates and tracks project progress individually and through staff meetings. 14. Describe the process and tools used by the division to gauge participant satisfaction with the quality of services rendered and how results are used to inform and improve the quality of services. Staff consistently communicates with homeowner throughout the loan process. We use direct interaction and feedback to inform changes to programs. For instance, low participant in the Low Interest Loan Program was due to increased financial hardship noted when applications were initially submitted the applicants did not meet minimum requirements to obtain a loan through the program (Debt ratios >60%, low or no equity, insufficient income to make additional monthly payment). RAMP was created to provide an alternative to homeowner s unable to qualify for a loan, but whose homes were in dire need of repair. 7
15. Describe outreach efforts to ensure the community is aware of the programs and services offered. Targeted mailings, social media, referrals from the Division of Housing and Building. 16. Describe efforts the division makes to promote, to the greatest extent feasible, the participation of minority, female-owned, and Section 3 businesses. Each contractor selected by homeowners is asked to complete a Section 3 form in an effort to identify new businesses. When public bids are requested, bids are forwarded to known Section 3, Female and Minority businesses and/or trade organizations that represent them. 17. Describe the division s competitive bidding process in the awarding of construction contracts. The Division follows both City and Federal competitive bidding processes which includes public notifications (newspaper, City s website) and submissions are reviewed for both pricing and experience. Bids over $7,500 are additionally reviewed by the City s Board of Control. This process is not applicable to homeowner rehab projects. Homeowner s obtain estimates from no less than 2 contractors and enters into contract with the contractor of their choice. 18. Describe the division s process to ensure project management staff are aware of and enforce HUD s Lead Safe Housing Rules. Annual review and updating of guidelines overseen by Programs Manager. Program Coordinator has State Lead Risk Assessor s License. 8
Project Narrative Division of Community Development Repair, Maintenance & Accessibility Program (RAMP) 1. Statement of Need - The Repair Accessibility Maintenance Program (RAMP) was created to assist property owners unable to maintain their home due to financial hardship. Over the past several years fewer applicants have been able to qualify for traditional programs like the Low Interest Home Improvement Loan Program. The causes most typically have been a result of limited home equity and lack of income due to job loss or illness. With the transition to proactive code enforcement, the need for more flexible financing is more important than ever to ensure the ongoing stability of the City s housing stock. 2. Project Service Area - The program is offered City-wide, however marketing efforts are targeted. In 2014, Community Development has focused its outreach efforts in the Birdtown Neighborhood and to homeowners identified through the Division of Housing and Building s annual housing survey. 3. Target Population - Any low/mod income homeowner within the City, meeting the program criteria including maximum allowable assets is considered. The City is also seeking to assist disabled homeowners in order to make their homes more accessible/visitable. Once a program application has been submitted, participants homes are inspected by the Division of Community Development. After receiving bid specifications for identified repairs, the homeowner obtains estimates and chooses a contractor to complete the work. 4. Services Provided - Properties going through the program must bring the exterior of their home into exterior code compliance and are encouraged to complete repairs that increase the safety and accessibility of the home. Since the program s inception in 2013, modifications to the guidelines have been made in order to ensure that critical property repairs can be completed. The maximum level of assistance has been increased to $20,000. Projects with costs less than $5,000 are a grant and those between $5,000 and $20,000 are secured with a lien on the property that is forgivable after 5 years. Eligible repairs include exterior and interior code violations, health and safety concerns and accessibility improvements. 5. Project Staffing - This program is staffed by the below three staff members: Mary Leigh, Programs Manager Responsible developing and managing federally funded housing programs. Handles loan processing and set ups, ongoing management of loan portfolio, and staff oversight. Jason Russell, Project Specialist -Responsible for receiving and processing program applications. James Blocksidge, Program Coordinator Responsible for home inspections, rehabilitation and construction management, processing applications from point of inspection forward. 6. Additional Information - In 2013, eight RAMP projects (10 total units) were completed with an investment of $84,141 in improvements made to Lakewood homes. Without this assistance, these applicants would not have been able to complete repairs to their homes which included a hot water tank, exterior painting and siding, driveway, roofing and electrical. As of July 16, 2014, 15 RAMP projects totaling $231,000 have been approved. Of these, 2 are completed having spent $32,734. 9