CITY COUNCIL AGENDA Members Nikuyah Walker, Mayor December 6, 2021 Sena Magill, Vice Mayor Heather D. Hill Michael K. Payne J. Lloyd Snook, III Kyna Thomas, Clerk 4:00 PM WORK SESSION Register at www.charlottesville.gov/zoom. Virtual/electronic meeting in accordance with a local ordinance amended and re-enacted October 4, 2021, to ensure continuity of government and prevent the spread of disease during a declared State of Emergency. Individuals with disabilities who require assistance or special arrangements to participate in the public meeting may call (434) 970-3182 or submit a request via email to ada@charlottesville.gov. The City of Charlottesville requests that you provide a 48 hour notice so that proper arrangements may be made. CALL TO ORDER ROLL CALL REPORTS 1. Discussion: Governance related to the Charlottesville Affordable Housing Fund (CAHF) 2. Discussion: Community Development Block Grant (CDBG)-HOME Program Task Force 3. Report: Annual Comprehensive Financial Report presentation from auditor and discussion of FY21 year-end results PUBLIC COMMENT Page 1 of 21 12/6/2021 AGENDA ITEM #1 Governance FINAL DRAFT Page 2 of 21 Governance | Purpose Governance structures shape the efficacy and equitability of decision-making, which ultimately determine housing program implementation and community outcomes. Best practices that will ensure successful governance include: Formalize processes to set priorities for the use of public funds Include and empower community voices, including those who benefit from publicly-funded housing programs, in decision-making processes Build trust in public processes by providing clear communication about priorities and reducing conflicts of interest and perceptions of conflicts Ensure the successful implementation of recommendations by aligning City capacity with needs and priorities HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 61 Page 3 of 21 Governance | Recommendations Charlottesville should build governance structures that institutionalize an equitable and efficient implementation of the Affordable Housing Plan. Setting clear roles and increasing the presence of BIPOC representation and those who participate in housing programs for the City’s staff and governance bodies is necessary for the effective implementation of the Charlottesville Affordable Housing Plan and addressing racial equity. In particular, the City should implement the following recommended changes to its governance structures: Reform the structure and function of the Housing Advisory Committee to Housing Advisory Committee (HAC) represent a broader range of viewpoints and focus on housing policy recommendations and not funding allocation. Empower a committee with community and staff representation to make Charlottesville Affordable Housing Fund (CAHF) Committee recommendations about the priorities and distribution of the CAHF. Realign priorities, increase capacity, and empower staff to collaborate with City Staff Capacity advocates and respond to community needs. Establish clear, transparent, and competitive processes to award grants and loans Standardized and Competitive Funding Process for affordable housing. The remainder of this chapter provides additional detail on recommended policy changes, as well as the implementation needs and anticipated impacts of these changes. HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 62 Page 4 of 21 Governance | Inclusive Governance The Importance of Including Diverse Community Voices Survey Respondents Who Believe Public input gathered as part of Cville Plans Together provides a clear illustration of the importance of including that Homeownership is a Critical diverse community voices in the City’s decision-making. In public surveys and stakeholder interviews, the Issue in Charlottesville: priorities of housing professionals and residents from marginalized populations including BIPOC reflected different priorities for affordable housing. Many housing professionals emphasized the importance of rental affordability, particularly for Charlottesville’s lowest-income residents. However, disaggregated public survey responses by race and ethnicity, and by homeowner status, shows that homeownership is a priority concern for 76% 50% Black and Latinx community members, as well as a higher concern for renters than homeowners. To reflect the Black or African White or needs and priorities of its community, the City’s governance structures need a diversity of American Caucasian & perspectives, not just from housing professionals but inclusive of community voices and beneficiaries respondents respondents of housing programs. Building Inclusive Governance throughout Charlottesville’s Affordable Housing Infrastructure 74% 50% Charlottesville can take concrete steps to bring diverse voices into its decision-making processes, and to build Hispanic or Asian or Asian inclusivity throughout its Affordable Housing infrastructure, including public and nonprofit entities that receive Latinx American City funding. The governance recommendations outline steps to advance inclusive governance, including respondents respondents through reforming the Housing Advisory Committee, forming a new Committee to govern the Charlottesville Affordable Housing Fund (CAHF), setting goals and scoring criteria for recipients of CAHF funds to incorporate diverse voices into their decision-making processes, and expanding City housing staff. To advance this work across these entities, the City should: 63% 47% • Develop an onboarding process including affordable housing training available to all new members of Renters Homeowners public and nonprofit boards and commissions, as well as leadership, to support successful participation. • Provide funding from the CAHF administrative budget for the provision of this training and other programs that build the capacity of community members to serve. • Monitor the success of these programs and make changes as needed to meet diverse participation goals. Source: Cville Plans Together Public Survey (Spring 2020) HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 63 Page 5 of 21 Governance | Housing Advisory Committee Reform the structure and function of the Housing Advisory Committee to build trust and improve its impacts. Charlottesville’s Housing Advisory Committee (HAC) is a public committee intended to provide City Charlottesville’s Housing Advisory CONTEXT Council with recommendations about housing policy and priorities. The HAC has the potential to be an Committee is a public committee. important link for Council to access community housing needs and priorities, but the current structure limits Per the City’s website, the purpose both its impact and its authority, and its activities have expanded beyond its initial purpose. of the 21-member committee is to provide City Council with HAC reform should restructure the committee to achieve a better balance of representation aligned recommendations regarding with the guiding principles of racial equity, regional collaboration, and a comprehensive approach to housing, housing policy and affordable and refocusing HAC efforts on advising and advocating for affordable housing priorities. The City should: housing priority, and research and • Refocus the HAC on its stated purpose of monitoring affordable housing issues and providing City discuss trends and ideas in Council with recommendations about housing policy priorities, as well as championing and advancing affordable housing the implementation of the Affordable Housing Plan, monitoring progress, and issuing an annual report RECOMMENDED CHANGES on affordable housing in Charlottesville. • Reduce the total number of seats on the HAC from 21 to between 10 and 15, and make all seats Council-appointed, keeping the current 2-year terms and 4-term limits. • Increase the representation of BIPOC, including housing professionals and community members. • Ensure that HAC members include beneficiaries of housing programs and subsidized housing residents. • Give regional representatives voting power. • Develop an onboarding process including affordable housing training for new members, particularly community members, to support successful participation. • Continue to encourage public attendance at HAC meetings to ensure larger participation is possible. • In the longer term, determine ways for the HAC to become a regional body that serves and represents the City of Charlottesville and Albemarle County, including through a joint funding agreement. HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 64 Page 6 of 21 Governance | Housing Advisory Committee Adding community voices and reducing the representation of organizations HAC Overview IMPACTS receiving City funding will build trust in the HAC by limiting perceptions of conflicts of interest and setting clearer mandates for both the HAC and City staff. Membership 10-15 members • 2-3 affordable housing providers Racial Equity The Housing Advisory Committee must be a body that supports and affirms (recipients of City funds) the City’s commitment to racial equity in housing. Toward that end its membership must be • 2-3 real estate professionals (may rebalanced to expand the representation of BIPOC, including both housing professionals include brokers, lenders, and community members. An onboarding process will be critical to ensure that community developers, architects, etc.) GUIDING PRINCIPLES members are empowered to participate fully in setting priorities. • 2-3 at-large community members Regional Collaboration Full participation from regional representatives will be important • 2-3 affordable housing residents to identify opportunities for City and regional priorities to align. The HAC can also serve as a or beneficiaries conduit for the City to engage with the Regional Housing Partnership and identify areas for • 2-3 regional representatives deeper collaboration, and may eventually serve and represent both the city and county. Comprehensive Approach The HAC should consider and make recommendations for the Responsibility Provide City Council with City to pursue a balanced and comprehensive mix of affordable housing programs, recommendations about housing including land use, subsidy, and tenants’ rights, as well as supporting a full range of housing policy priorities. options for residents including rental and ownership opportunities. Champion and advance the implementation of the Affordable Lead and Partners Housing Plan. City Manager, Council, and Staff Issue an annual report on Housing Advisory Committee affordable housing in IMPLEMENTATION Action Items Charlottesville. 1. The City Council will redefine the role and membership of the HAC, including guidelines City Staff Role Administrative to ensure a diverse and inclusive membership, and appoint new members 2. City staff in coordination with existing HAC members will develop and implement an Terms & Council-appointed, keeping the onboarding process for new members Appointment current 2-year terms and 4-term Timeframe limits for consecutive service Immediate (within 1 year) HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 65 Page 7 of 21 Governance | Charlottesville Affordable Housing Fund Committee Empower a committee with community representation to make recommendations about the priorities and distribution of the CAHF. The City currently struggles to identify and act on clear priorities for the Charlottesville Affordable A Housing Trust Fund (HTF) is a Housing Fund (CAHF). Current governance structures do not provide a forum for City staff, community locally-controlled fund dedicated to CONTEXT members, nonprofit stakeholders, and advocates to discuss housing priorities and recommendations before support affordable housing they are put before Council. Historically, this has slowed the appropriation and distribution of funds set aside programs. Charlottesville’s HTF is for the CAHF and inhibited collaboration around the implementation of funding. There is also a perceived called the Charlottesville Affordable conflict of interest in the role that nonprofit stakeholders who receive funding from the CAHF play in making Housing Fund (CAHF) and is the recommendations on funding allocations. primary vehicle for local funding to support affordable housing subsidy. The City should designate a committee to make recommendations about priorities for the use of RECOMMENDED CHANGES CAHF funds, to set targeting and scoring criteria for CAHF-funded programs and to review City staff recommended awardees. This should be a separate committee from the HAC. The City Council should appoint members and may choose some representatives from among HAC members. The committee should have equal representation from City staff, affordable housing practitioners, and community members including those who are impacted by housing investments, such as public housing residents or recipients of down payment assistance or other affordable housing program funds. The City should develop an onboarding process including affordable housing training and City budget training for members. Committee members who intend to apply for City funding will not be eligible to vote on the allocation of funding or participate in the review of applications. Designating or establishing a committee with this structure would provide a clear mandate for City leadership to guide funding decisions, supported by City staff and community members. This will help the IMPACTS City deploy funds to meet its housing needs. The recommended CAHF committee will ensure that the community’s voices are included in decisions about the use of City funds to support affordable housing, provide an improved process to manage and eliminate conflicts of interest, and create a forum for direct engagement and collaboration between City staff, community members, and housing professionals. HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 66 Page 8 of 21 Governance | Charlottesville Affordable Housing Fund Committee Racial Equity Empowering community members impacted by Charlottesville’s housing CAHF Committee Overview investments, including BIPOC, will help the City to advance racial equity in housing through Membership 9 members its investments. The CAHF Committee must support and affirm the City’s commitment to • 3 affordable housing providers racial equity in housing. An onboarding process will be critical to ensure that community and advocates members are prepared to participate fully in making budget recommendations. • 3 affordable housing residents or Regional Collaboration It should be the goal of the City and the CAHF committee to beneficiaries GUIDING PRINCIPLES develop a regional Housing Trust Fund that can use be used to support the development of • 3 City staff affordable housing within the region. The City and the CAHF committee should also engage • Should include no more than 3 the University of Virginia to identify opportunities to make joint investments in affordable HAC members housing. Comprehensive Approach While the HAC is charged with taking a more comprehensive Responsibility Provide City Council with view of housing policy in Charlottesville, the CAHF Committee will be primarily concerned recommendations about the with subsidy tools, but should have opportunities for discussion with the HAC and consider budget and use of CAHF funds. opportunities for the City to allocate funding to support land use changes such as Comment and make subsidized ADUs, and to tenants’ rights tools such as paying into a legal services fund for recommendations on scoring & tenants facing eviction. The CAHF committee will make recommendations about the use of selection criteria, with final criteria CAHF funds to support a range of potential housing options for residents including rental set by City staff. and ownership opportunities. Review & comment on funding award selections, with final Lead and Partners selections made by City staff. City Manager and Council IMPLEMENTATION Committee Members City Staff Role Substantive Timeframe Immediate (within 1 year) Terms & TBD Appointment Funding Needs None HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 67 Page 9 of 21 Governance | Charlottesville Affordable Housing Fund Committee Example Models for Housing Trust Fund (HTF) Governance Richmond Affordable Housing Trust Atlanta Beltline Affordable Housing Cambridge Affordable Housing Trust Fund Oversight Board Advisory Board Richmond, VA Atlanta, GA Cambridge, MA Sample • Oversee the administration of the HTF • Make recommendations to the City on • Advises on housing programs and Responsibilities and programs funded by the HTF goals and policies related to the use of policies to City staff and leadership • Evaluate loan and grant applications the HTF • Sets criteria for reviewing proposals for • Submit an annual report and other • Provide semi-annual reports to the City programs, policies, and developments updates to City Council and Mayor Council and Mayor • Serves as the loan committee for • Monitor compliance of funding awarding of funds recipients • Ensure fund sustainability Sample Rules • Membership has staggered 3-year • Members serve 2-year terms with a 3- • Membership appointed by City terms term limit Manager • Chaired by an appointed City Council • City Manager serves as an ex officio member (nonvoting) member • No funding may be awarded to persons serving on the board or to entities in which board members have a personal interest HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 68 Page 10 of 21 Governance | Charlottesville Affordable Housing Fund Committee A conflict of interest arises when there is a divergence between a CAHF Committee member’s private interests and their obligations to the CAHF Committee, such that an independent observer might reasonably question whether the individual’s professional actions or decisions are determined by consideration of personal gain, financial or otherwise. In order to avoid any potential conflict of interest with the mission of the CAHF Committee, the City and the CAHF Committee should adopt a statement to guide the Committee on issues of potential influences on disclosure and recusal. Example Conflict of Interest Policy The function of the CAHF Committee is solely to provide perspective and advice to City staff and City Council on the use of CAHF funds. The CAHF Committee does not have the authority to make decisions for the City. The CAHF Committee has a duty to make recommendations in the interest of the public good, to both be, and to be perceived as, independent and credible advocates for the CAHF without regard to the private interests of its CAHF Committee members. Definition of conflict of interest: A conflict is any interest in a transaction or decision where a CAHF Committee member (including the member’s business or other nonprofit affiliations); or a CAHF Committee member’s family, and/or significant other, close associates or employer will receive a benefit or gain. Family should be defined as “parents, spouse/significant other, siblings, children, grandchildren, grandparents, aunts, uncles, and first cousins.” This policy addresses two types of potential conflicts of interest: (1) conflicts related to project/program funding award recommendations and (2) conflicts related to the creation of the annual allocation plan and/or programmatic policies/procedures/Requests for Proposals. Conflicts related to project/program funding award recommendations: If a CAHF Committee member has a conflict of interest, such as a conflict regarding a funding recommendation for a specific project under consideration by the Committee, the Affected member(s) will recuse themselves from relevant Committee discussions and votes and absence themselves from the room during the relevant discussion (which shall be noted in the minutes). Conflicts related to the creation of the annual allocation plan and/or programmatic policies/procedures/Requests for Proposals: If a CAHF Committee member has a programmatic conflict of interest, such as may arise in the discussion of the Annual Allocation Plan, the member will disclose their interests which may present a conflict or appearance of a conflict to the group at the beginning of the meeting. The member will immediately disclose any additional conflicts which arise in the course of discussion. All conflict disclosures shall be noted in the minutes. When the Annual Allocation is presented for a vote, the annual allocation plan will be voted by line item/activity. The member should recuse himself/herself from the portion of the vote related to the line item/activity where the Member has a conflict. Duty of Disclosure: Although members of the CAHF Committee serve in a purely advisory capacity, they will submit an annual written disclosure to the Committee chair any private interests that may cast doubt, or even the appearance of doubt, on their ability to serve the CAHF Committee impartially, disclose conflicts of interest in Committee meetings as described by this policy, and agree to be bound by this Conflict-of-Interest policy. HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 69 Page 11 of 21 Governance | City Staff Capacity Realign priorities, increase capacity, and empower staff to be collaborative with advocates and responsive to community needs. The size of Charlottesville’s housing staff is appropriate for a small city, but the scale and CONTEXT complexity of housing programs in Charlottesville is equal to that of a much larger city. There is a culture in which City staff can be at odds with the development community and the advocacy community, which limits the effectiveness of housing and development policies. To ensure the successful implementation of the Affordable Housing Plan, Charlottesville needs to increase the capacity of City staff to effectively administer its housing programs and manage development processes, set clear priorities and measures of success for its programming, and make staff beholden to those priorities. In addition, the City should: • Set annual production goals for City performance related to housing development and affordability, and track metrics related to the impact of the City’s housing programs and development activity, RECOMMENDED CHANGES disaggregating data by race, ethnicity, and income level. • Assess the appropriate place for housing staff within City government—whether within Neighborhood Development Services, within another department, or as a separate department or entity. • Assign a staff person to be the liaison or lead for affordable housing development, taking responsibility for moving development through the approval and inspection process quickly and efficiently. • Incorporate City staff in the CAHF committee and encourage collaboration to set funding priorities. • Develop a standardized competitive process to award funding for affordable housing. • Work with affordable housing developers to reduce the cost of the development of affordable housing. • Provide clear communication about staff roles and City processes and priorities to external partners, and clear paths for community feedback to the City. • Prioritize the recruitment of housing staff that reflect the communities served by housing programs. HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 70 Page 12 of 21 Governance | City Staff Capacity Incorporating these changes into City processes related to development review, Housing Staff in Charlottesville & Other Cities IMPACTS neighborhood services, and housing affordability programs will enhance the City’s capacity City City Housing Staff to advance the Affordable Housing Plan. Charlottesville, VA Housing & Redevelopment Racial Equity To successfully support racial equity in housing, Charlottesville’s Housing staff • Housing Program Coordinator and Neighborhood Development Services staff need to apply a racial equity lens to GUIDING PRINCIPLES • Planner II/Grants Coordinator decision-making, develop clear paths for community feedback to staff, and reflect the • Redevelopment Manager diversity of Charlottesville’s residents. Regional Collaboration City staff need to dedicate time to liaising with the City’s regional Richmond, VA Housing & Community partners to align and collaborate on housing and planning activities. Development • Director & Deputy Comprehensive Approach City staff will need to work across departments and • Management Analyst specializations to jointly address land use, subsidy, and tenants’ rights. • Homeless Prevention (5) Lead and Partners • Affordable Rental Housing & Housing Staff Neighborhood Neighborhood Development Services Transformations (3) City Manager and Council • Homeownership (4) Action Items Raleigh, NC Housing & Neighborhoods IMPLEMENTATION 1. The City will set goals for development and housing programs, review current staffing, • Director and make changes to accommodate new priorities and increase staff capacity. This • Community Development (26) should include hiring or designating an affordable housing liaison for developers. • Code Enforcement (28) 2. The City will establish standardized competitive funding processes or administrative • Community Engagement (17) capacity for each program as appropriate. Durham, NC Community Development 3. The City will track its performance against established goals on production and cost per • Director home. • 23 staff in program management, compliance, Timeframe community development, etc. Immediate (within 1 year) HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 71 Page 13 of 21 Governance | Roles & Responsibilities Housing Advisory Committee (HAC) Charlottesville Affordable Housing City Housing Staff Fund (CAHF) Committee Role The HAC will monitor affordable housing issues in The CAHF Committee is responsible for The role of the City’s housing staff will be Charlottesville and the implementation of the overseeing the use of CAHF funds. This to implement the recommendations of Affordable Housing Plan. Based on this work, the includes recommending the allocation of City Council as informed by the HAC and HAC will make recommendations to City Council the annual budget for the Charlottesville the CAHF committee. City staff will about policy priorities, advise on existing housing Affordable Housing Fund across the manage a competitive solicitation and priorities (homeownership, homelessness, etc.), City’s programs. In addition, the CAHF award process for City-funded housing recommend new programs or tools, such as an committee will set scoring criteria and programs, by issuing solicitations, scoring acquisition fund, land bank, or inclusionary zoning targeting recommendations for applications, and negotiating agreements and educate the broader public on Charlottesville’s programs funded through the CAHF, and with selected applicants. In addition, staff affordable housing challenges and the programs in review City staff recommendations for will lead the design and implementation place to address them. The HAC will champion the fund awards. of programs in collaboration with other Affordable Housing Plan and issue an annual report City departments as appropriate. on affordable housing in Charlottesville. Member- 10-15 members 9 members Not Applicable ship • 2-3 affordable housing providers (recipients of City • 3 affordable housing providers and funds) advocates • 2-3 real estate professionals (may include brokers, • 3 affordable housing residents or lenders, developers, architects, etc.) beneficiaries • 2-3 at-large community members • 3 City staff • 2-3 affordable housing residents or beneficiaries • Should include no more than 3 HAC • 2-3 regional representatives members Terms & Council-appointed, keeping the current two-year To Be Determined Not Applicable Appoint- terms, with a limit of four consecutive terms. ment HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 72 Page 14 of 21 Governance | Standardized Competitive Funding Processes Establish clear, transparent, and competitive processes to award grants and loans for affordable housing. Charlottesville provides funding in the form of grants and loans to support a range of affordable housing programs. Currently, requests for gap financing for new Low-Income Housing Tax Credit (LIHTC) developments are reviewed by the City on a case-by-case basis; Community Development Block Grant (CDBG) and HOME funds requests are awarded through a Request for Proposals process overseen by a CDBG/HOME taskforce, and requests for funding from the Charlottesville Affordable Housing Fund (CAHF) are made based CONTEXT on a Notice of Funding Availability (NOFA) and application process, with off-cycle funding requests reviewed on a case-by-case basis. Scoring criteria for CAHF fund applications include the number of homes developed or preserved that are affordable to households earning less than 80% of AMI, project readiness, and the leveraging of CAHF funds, as well as the project’s support for the housing goals in the comprehensive plan. The relative weight or importance of these scoring criteria, and thresholds for performance, are not specified in the application materials for CAHF funds. Particularly for LIHTC development, the level of subsidy required on a per home basis appears high and warrants a closer evaluation. Establishing clearer criteria and processes, particularly for development loans for LIHTC and loans and grant awards from the CAHF, will help the City better align the use of its funds with its affordable RECOMMENDED CHANGES housing goals and underwriting priorities. In particular, the City should make the following changes: • Work with the CAHF committee to enumerate target funding amounts by program type each year (e.g. LIHTC gap financing, homeownership programs, housing preservation). • Establish a request-for-proposals (RFP) process for funds that clearly defines scoring criteria including target affordability levels and leverage of CAHF funds. In particular for LIHTC development funding requests, establish clear and competitive thresholds for the amount of local subsidy per home, location of project, and other criteria as relevant to City goals. Organizations competing for City funding will not be allowed to vote on budget allocations or awards. HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 73 Page 15 of 21 Governance | Standardized Competitive Funding Processes • Score projects based on applicant’s organizational and financial capacity and experience, efficiency and leverage of funds, alignment with public (CONT’D) policy goals, and inclusion of community representation. • Produce an annual report on the investment and impact of funds, noting metrics related to City goals including reducing racial disparities and production or preservation of homes by affordability level. Incorporating these changes into City funding processes will enhance the City’s capacity to advance the Affordable Housing Plan and ensure that ACTS IMP- public expenditures are underwritten in line with City affordable housing goals to maximize potential impacts. Racial Equity To successfully support racial equity in housing, the City and CAHF committee should ensure that all projects and organizations funded PRINCIPLES help to advance Charlottesville’s racial equity goals, through community representation in decision-making, prioritization of the use of funds, and GUIDING minimizing potential barriers to access. Regional Collaboration If the City pursues regional funding opportunities through a regional housing trust fund, it should incorporate similar processes to ensure the efficient use of funds within the region. Lead and Partners Housing Staff CAHF Committee IMPLEMENTATION City Manager and Council Action Items 1. The City will conduct a review of existing scoring, evaluation, administration, and reporting processes and revise or replace as appropriate. 2. The City will work with the CAHF committee to establish allocation targets, production goals, and regular reporting for the use of CAHF funds. 3. The City will track its performance against established goals. Timeframe Immediate (within 1 year) HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 74 Page 16 of 21 Governance | Standardized Funding Processes Sample HTF Allocation Plan Sample LIHTC Project Scoring Criteria Program 30% 50% 80% Total Category Points Comments AMI AMI AMI Development Team Experience 7 LIHTC Gap Financing 33% 66% $2,500,000 Site Control and Zoning 8 Owner-Occupied Rehab 50% 50% $500,000 Organization Financial Information 10 Down Payment Assistance 100% $1,000,000 Program & Construction Design 25 Incl. provision of home Emergency Rental Assistance 80% 20% $500,000 buyer education & design compatibility Administrative Costs $500,000 Total $5,000,000 Type of Activity 5 New construction vs. rehab Metrics for Evaluation of Programs Project Financial Information 25 Request as % of total To ensure that City funds support the City’s goals and commitment to racial cost, leverage of funds equity, it will be critical to track metrics related to city-funded developments and programs. Alignment with City Goals 15 E.g. location near main • Program Impact and Cost (e.g. number of homes, cost per unit, local transit lines subsidy per unit, total subsidy per unit, tenure type, length of affordability, affordability level) Developer Fee from HTF 5 • Beneficiary Data (e.g. race, location, income, household size) Bonus Points Varies Incl. universal design or green design, providing • Alignment (e.g. were regional partners involved?, does funding deeper affordability recipient include diverse community representation in decision-making?, (e.g. more 30% AMI does this program complement other tools as part of a comprehensive homes) approach?) HR&A Advisors, Inc. FINAL DRAFT Charlottesville Affordable Housing Plan | 75 Page 17 of 21 12/6/21 AGENDA ITEM #2 ARTICLE XIII. - COMMUNITY DEVELOPMENT BLOCK GRANT PLANNING Footnotes: --- (13) --- Editor's note— Ord. of August 15, 2016(2), amended Art. XIII in its entirety to read as herein set out. Former Art. XIII, §§ 2-416—2- 420, pertained to similar material. See also the Code Comparative Table. Sec. 2-416. - Purpose and applicability of article. (a) This article sets forth planning and decision making procedures for the community development block grant (CDBG) and HOME Investment Partnerships (HOME) programs, funded under the federal Housing and Community Development Act of 1974, and the federal HOME Investment Partnerships Act of 1991, as amended. (b) CDBG funds should be used primarily to benefit low and moderate income persons and to meet the national objectives, as defined by the United States Department of Housing and Urban Development (HUD). The funds may be spent for any activities permitted by the Housing and Community Development Act of 1974, as amended, and applicable federal regulations. HOME funds should be used to strengthen public-private partnerships to provide more affordable housing, as defined by HUD. The funds may be spent for any activities permitted by the HOME Investment Partnerships Act of 1991, as amended, and applicable federal regulations. (c) The process established by this article shall apply only to funds specifically allocated for CDBG programs under the Housing and Community Development Act of 1974, as amended, and the HOME Investment Partnerships Act of 1991, as amended, or other funds specifically allocated for such purposes by city council. (d) This process shall not apply to the allocation of any funds remaining from urban renewal activities in the Garrett Street or Vinegar Hill urban renewal projects. (Ord. of 8-15-16(2)) Sec. 2-417. - Community development block grant and HOME task force. (a) The community development block grant/HOME task force is hereby established to make recommendations to the planning commission and city council for funding housing, community development, economic development, and public service needs based on the consolidated plan and the CDBG priorities as established by city council annually. The CDBG/HOME task force will work with city administration to evaluate CDBG and HOME programs to ensure consistency with the consolidated plan goals. Such recommendations and evaluations shall be forwarded in accordance with the procedures set forth in this article. (b) The CDBG/HOME task force shall be composed of nine (9) members appointed by the city council. The members shall include: (1) Five (5) members from HUD's identified income eligible areas of the city who are residents of city Page 18 of 21 council designated priority neighborhoods; (2) One (1) member of the planning commission; (3) One (1) member representing public service programs as defined at 24 CFR 570.201; (4) One (1) member of the city school board; (5) One (1) additional citizen. The term for the one (1) member of the CDBG task force from the planning commission and the one (1) member of the school board shall be coextensive with the term of office to which such member has been elected or appointed, unless the city council, at the first regular meeting each year, appoints others to serve as their representatives. The remaining members of the task force first appointed shall serve respectively for terms of one (1) year, two (2) years, and three (3) years, divided equally or as nearly equal as possible between the membership. Subsequent appointments shall be for terms of three (3) years each. Vacancies shall be filled by appointment for the unexpired term only. Members may serve up to two (2) consecutive full terms. (Ord. of 8-15-16(2)) Sec. 2-418. - Community development block grant (CDBG)/HOME task force subcommittees. (a) Priority neighborhood subcommittee. When the city council determines that a portion of available CDBG funds will be used to assist an income eligible area, the council may appoint a priority neighborhood subcommittee, including but not limited to representatives of the CDBG task force, the planning commission and residents, business people and property owners from the priority neighborhood. The term of each priority neighborhood subcommittee shall be three (3) years, unless otherwise specified by the council, and each priority neighborhood subcommittee shall operate under such guidelines and perform such advisory functions as the council may direct at the time of appointment. Priority neighborhood subcommittee shall make recommendations to the CDBG/HOME task force for funding housing and community development needs based on the consolidated plan and work with the city to evaluate feasibility and to ensure consistency with programmatic regulations. The city council will designate an income eligible area for three (3) years with the authority to postpone or extend funding in the event of a compelling project or need. (b) Economic development subcommittee. When the city council provides for a CDBG economic development set aside, the city staff who participate on the strategic action team (SAT) will serve as the economic development subcommittee. The SAT is an interdisciplinary team of city staff who examine the city's workforce development efforts and assist with policy development focused on self-sufficiency for city residents. When the city council determines that a separate economic development subcommittee is needed, the city council shall appoint members with economic development expertise, including but not limited to local business owners, chamber of commerce, office of economic development and other major stakeholders. The subcommittee shall make recommendations to the CDBG/HOME task force for funding economic development projects based on the consolidated plan and work with city staff to evaluate feasibility and ensure consistency with programmatic regulations. (Ord. of 8-15-16(2)) Page 19 of 21 Sec. 2-419. - Annual process. The following steps shall comprise the annual process for planning and programming the expenditure of CDBG and HOME funds. (1) City staff assigned to CDBG task force will review CDBG/HOME consolidated plan goals and applicable regulations to formulate recommendations for annual funding priorities. (2) The city council shall conduct a public hearing to solicit the views of citizens on city wide community development and housing needs. The purpose of this public hearing shall be for council to receive citizens' comments on recommended priorities and program performance. The notice of the public hearing shall include an estimate of the amount of funds available for CDBG and HOME activities and the range of activities that may be undertaken, as well as how the public can access a copy of the most recent consolidated annual performance evaluation report (CAPER). Public comments may be presented in writing or in person. (3) After receiving all comments, council shall establish priorities for the grant year, including such percentage allocations of funds to categories and to particular income eligible areas as it deems appropriate. (4) After council establishes priorities for the grant year, city staff with the CDBG/HOME task force will develop a request for proposals, within the funding priorities established by council, to be advertised and distributed to interested parties and prior recipients of funds. (5) Responses to the city's request for proposals will be evaluated by the CDBG/HOME task force. (6) The CDBG/HOME task force shall provide funding recommendations to the planning commission and city council to ensure that proposed projects are consistent with the CDBG program requirements and national objectives and/or HOME program requirements, as applicable. Review will also include a determination of consistency with the city's comprehensive plan and affordable housing goal(s). (7) The city council and planning commission shall conduct a joint public hearing to receive public comments on the proposed annual action plan of the consolidated plan and CDBG/HOME performance, as appropriate. Notwithstanding the foregoing, the CDBG/Home performance plan may be presented at a separate public hearing as required by the Code of Federal Regulations. (8) Following the public hearing and any additional meetings or hearings deemed by the city council to be necessary, the council shall make a final decision on the programs, projects and expenditures to be funded from the year's CDBG/HOME programs. (9) The city shall provide the task force and planning commission with the Consolidated Annual Performance Evaluation Report (CAPER) in conjunction with the city's submission to HUD. The CAPER and evaluation of program specific successes and challenges will be used in future CDBG/HOME recommendations to city council for projects and programs. (10) Once council has approved and funded a program, any reprogramming and budgetary changes will be done consistent with the citizen participation plan adopted by council. (Ord. of 8-15-16(2)) Page 20 of 21 Sec. 2-420. - Procedures for public hearings, meetings and records. (a) Plans or amendments, as required under this article shall be advertised in the manner provided by Code of Virginia, § 15.2-2204, and in accordance with the adopted citizen participation plan. (b) All meetings conducted pursuant to this article and all records of the CDBG and HOME programs shall be subject to the provisions of the Virginia Freedom of Information Act. (Ord. of 8-15-16(2)) Sec. 2-421. - Reserved. Editor's note— Ord. of Dec. 15, 2003, repealed § 2-421, which pertained to expiration of article. See also the Code Comparative Table. Page 21 of 21