State of Arizona Annual Action Plan Federal FY 2016 July 1, 2016 ‑ June 30, 2017 Date Issued: 1110 West Washington Street, Suite 280 | Phoenix, AZ 85007 Telephone: (602) 771-1000 | Facsimile: (602) 771-1002 | TTY: (602) 771-1001 FY2016-2017 Action Plan Table of Contents Executive Summary ................................................................................................................................... 1 AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ................................................................. 1 PR-05 Lead & Responsible Agencies - 91.300(b) ................................................................................ 6 AP-10 Consultation - 91.110, 91.300(b); 91.315(l) ............................................................................... 7 AP-12 Participation - 91.115, 91.300(c) .............................................................................................. 25 Expected Resources ................................................................................................................................. 29 AP-15 Expected Resources – 91.320(c)(1,2)....................................................................................... 29 Annual Goals and Objectives ................................................................................................................. 35 AP-20 Annual Goals and Objectives – 91.320(c)(3)&(e).................................................................. 35 AP-25 Allocation Priorities – 91.320(d) ............................................................................................. 43 AP-30 Methods of Distribution – 91.320(d)&(k) .............................................................................. 45 AP-35 Projects – (Optional)................................................................................................................. 66 AP-38 Project Summary ...................................................................................................................... 67 AP-40 Section 108 Loan Guarantee – 91.320(k)(1)(ii) ...................................................................... 70 AP-45 Community Revitalization Strategies – 91.320(k)(1)(ii) ...................................................... 71 AP-48 Method of Distribution for Colonias Set Aside – 91.320(d)&(k)........................................ 72 AP-50 Geographic Distribution – 91.320(f)....................................................................................... 75 Affordable Housing ................................................................................................................................. 77 AP-55 Affordable Housing – 24 CFR 91.320(g)................................................................................ 77 AP-60 Public Housing - 24 CFR 91.320(j) .......................................................................................... 78 AP-65 Homeless and Other Special Needs Activities – 91.320(h) ................................................. 79 AP-70 HOPWA Goals – 91.320(k)(4) ................................................................................................. 82 AP-75 Barriers to Affordable Housing – 91.320(i) ........................................................................... 83 Arizona Department of Housing i FY2016-2017 Action Plan AP-80 Colonias Actions – 91.320(j) .................................................................................................... 86 AP-85 Other Actions – 91.320(j) ......................................................................................................... 88 Program Specific Requirements ............................................................................................................. 92 AP-90 Program Specific Requirements – 91.320(k)(1,2,3)............................................................... 92 Attachments .............................................................................................................................................. 98 Citizen Participation Comments ........................................................................................................ 99 Grantee SF-424's and Certification(s) .............................................................................................. 107 Arizona Department of Housing ii FY2016-2017 Action Plan Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) Introduction The State of Arizona 2016-2017 Annual Action Plan (Action Plan) is a document required by the U.S. Department of Housing and Urban Development (HUD) to be submitted by all jurisdictions that directly receive HUD formula funds. The Arizona Department of Housing (ADOH) developed the five (5) year 2015-2019 Consolidated Plan (Consolidated Plan), of which the Annual Action Plan is the annual update. The Consolidated Plan determines priorities, establishes strategic goals and allocates resources for the HUD funded programs administered by ADOH, namely: the Community Development Block Grant Program (CDBG); the HOME Investment Partnerships Program (HOME); Housing Opportunities for Persons with AIDS Program (HOPWA); the Emergency Solutions Grant Program (ESG) administered by the Arizona Department of Economic Security (DES); and the Housing Trust Fund (HTF). The Annual Action Plan covers the timeframe from July 1, 2016 to June 30, 2017, a one (1) year period. The primary focus of the HUD programs is on assisting low-income households. Throughout this document, there are several references to various income levels: 1) extremely low-income households are those earning at or below thirty percent (30%) of the area median income; 2) very low-income households are those earning thirty-one percent (31%) to fifty percent (50%) of the area median income; and 3) low-income households are those earning fifty-one percent (51%) to eighty percent (80%) of the area median income. The objectives of the Consolidated Plan include: 1) improve the quality of the housing stock; 2) construction and rehabilitation of rental units; 3) public services for LMI; 4) provide public infrastructure and facilities; 5) clearance and demolition of substandard units; 6) housing and supportive services for persons with HIV/AIDS; 7) rental assistance and supportive services for those who are homeless; 8) further fair housing and address impediments; 9) improve the economic environment; 10) assist new homebuyers; 11) build local capacity; and 12) housing for persons with special needs. The Consolidated Plan affirms the three (3) national objectives of Title I of the Housing and Community Development Act of 1974, as amended, including activities which: 1) primarily benefit low-and-moderate income persons; 2) aid in the prevention of slums and blight; and 3) alleviate conditions which pose a serious and immediate threat to the health or welfare of a community. ADOH anticipates receiving the following amounts in 2016-2017: 1) CDBG - $10,578,395; 2) HOME - $4,804,047; 3) HOPWA - $239,785; 4) ESG - $1,685,725; and 5) HTF - $3,000,000. Arizona Department of Housing 1 FY2016-2017 Action Plan ADOH endorses the objectives of the National Affordable Housing Act of 1990, including: 1) ensure that all residents have access to decent shelter; 2) increase the supply of affordable housing; 3) make neighborhoods safe and livable; 4) expand opportunities for homeownership; 5) provide a reliable supply of mortgage financing; and 6) reduce generational poverty in assisted housing. ADOH endorses the objectives of the Housing and Economic Recovery Act of 2008 establishing the Housing Trust Fund to increase and preserve the supply of rental housing for extremely low and very low-income families including homeless. The Consolidated Plan also addresses the needs of persons living with HIV/AIDS and supports the objectives of the Homeless Emergency Assistance and Rapid Transition to Housing Act (HEARTH) of 2009, which reauthorized the 1987 McKinney-Vento Homeless Assistance Act. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis, or the strategic plan. The objectives of the Consolidated Plan include: 1) improve the quality of the housing stock; 2) construction and rehabilitation of rental units; 3) public services for LMI; 4) provide public infrastructure and facilities; 5) clearance and demolition of substandard units; 6) housing and supportive services for persons with HIV/AIDS; 7) rental assistance and supportive services for those who are homeless 8) further fair housing and address impediments; 9) improve the economic environment; 10) assist new homebuyers; 11) build local capacity; and 12) housing for persons with special needs. The Consolidated Plan affirms the three (3) national objectives of Title I of the Housing and Community Development Act of 1974, as amended, including activities which: 1) primarily benefit low-and-moderate income persons; 2) aid in the prevention of slums and blight; and 3) alleviate conditions which pose a serious and immediate threat to the health or welfare of a community. ADOH endorses the objectives of the Housing and Economic Recovery Act of 2008 establishing the Housing Trust Fund to increase and preserve the supply of rental housing for extremely low and very low-income families including homeless. ADOH anticipates receiving the following amounts in 2016-2017: 1) CDBG - $10,578,395; 2) HOME - $4,804,047; 3) HOPWA - $239,786; 4) ESG - $1,685,724; and 5) HTF - $3,000,000. ADOH endorses the objectives of the National Affordable Housing Act of 1990, including: 1) ensure that all residents have access to decent shelter; 2) increase the supply of affordable housing; 3) make neighborhoods safe and livable; 4) expand opportunities for homeownership; Arizona Department of Housing 2 FY2016-2017 Action Plan 5) provide a reliable supply of mortgage financing; and 6) reduce generational poverty in assisted housing. The Consolidated Plan also addresses the needs of persons living with HIV/AIDS and supports the objectives of the Homeless Emergency Assistance and Rapid Transition to Housing Act (HEARTH) of 2009, which reauthorized the 1987 McKinney-Vento Homeless Assistance Act. Evaluation of past performance This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. Arizona made progress on its priority needs and objectives. The best indicators of results (i.e. performance measures) are described below. ADOH obligated $477,049,664 to affordable housing and community development efforts through multiple resources. Community Development Block Grant (CDBG) Program: ADOH awarded $9,041,460 in CDBG funds to the following projects: 1) $2,937,529 to streets, sidewalks, and drainage; 2) $2,500,400 to potable water delivery; 3) $371,768 to neighborhood facilities; 4) $649,697 to ADA improvements; 5) $207,589 to public services; and 6) $3,374,477 to owner-occupied home rehabilitation. To further coordination of CDBG funding with other federal/state/local resources, ADOH awarded $80,000 for Technical Assistance activities. ADOH is involved on a continual basis in numerous planning efforts with other state departments; local, regional, and county governments; housing and social service providers; businesses; and citizens. HOME Investment Partnership Programs (HOME): Arizona awarded $2,418,787 HOME resources for owner-occupied housing rehabilitation and rental development in order to increase accessibility and availability as well as improve sustainability of permanent housing for 145 lowincome households. Housing Opportunities for Persons with AIDS (HOPWA) Program: The State awarded $223,937 in HOPWA funds within five (5) of the thirteen (13) non-entitlement counties assisting a total of fifty-seven (57) households with short term rental, utility, and mortgage assistance; rental assistance; and supportive services. Emergency Solutions Grant (ESG) Program: Arizona awarded ESG funds in the amount of $1,582,653 to encourage a range of services to help prevent people from entering the homeless system and rapidly transition people from homelessness to permanent housing. Balance of State Continuum of Care: ADOH has several roles in the Balance of State Continuum of Care (BOSCOC) process: ADOH is the Collaborative Applicant for the $4.2 million annual renewals; recipient of all but one (1) of the projects (ninety-seven percent (97%)); and is the Homeless Management Information System (HMIS) lead agency. ADOH supports the planning and organization of the BOSCOC. There are sixteen (16) sub-recipients to administer the thirty- Arizona Department of Housing 3 FY2016-2017 Action Plan four (34) housing projects, seventy-five percent (75%) of which are permanent supportive housing and twenty-five percent (25%) are transitional housing. These projects provide 379 units of housing. The federal partners involved in the BOSCOC include the U.S. Department of Veterans Affairs with the VASH vouchers and the SSVF programs, and SAMHSA with the Projects for Assistance in Transition from Homelessness (PATH) and the Runaways and Homeless Youth Assistance (RHYA) programs. They are required to participate in the HMIS along with ESG and HOPWA providers. Summary of citizen participation process and consultation process Summary from citizen participation section of the Plan. The public participation process included both an amendment to the Consolidated Plan (to amend the affordable housing Sections of the Strategic Plan for the HTF) and review of the Action Plan. ADOH encouraged citizen participation throughout the development of the Action Plan by consulting stakeholders, local, and regional governments, holding public meetings, and encouraging public comment during the public review period. The following two (2) public meetings were held: 1) Phoenix, Arizona: March 8, 2016 at 1:00 p.m., Arizona Department of Housing, 1110 West Washington Street, Suite 280 (ADOH Training Room on 2nd Floor); 2) Phoenix, Arizona: April 13, 2016 at 10:00 a.m., Arizona Department of Housing, 1110 West Washington Street, Suite 250 (building conference room). Newspaper advertisements, e-mail bulletins, and website information were published at least seven (7) days prior to the meetings held to receive public input. The draft Action Plan was made available to the public for a thirty (30) day comment period beginning March 22, 2016 and ending April 22, 2016. Among those receiving e-mail notifications were governments, Continuums of Care, businesses, developers, institutions, non-profit organizations, and all agencies serving low income, special needs (including persons with disabilities), and minority residents. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Consolidated Plan. Most of the comments received pertained to the use of the Housing Trust Fund. There was notable and widespread support for using the Housing Trust Fund to provide permanent supportive housing for chronically homeless individuals and families. Refer to the attached public comments documents attached to this plan for more information Summary of comments or views not accepted and the reasons for not accepting them All comments were accepted. Summary Arizona Department of Housing 4 FY2016-2017 Action Plan Two (2) public meeting were held with a total of fifty-five (55) persons in attendance. There was ample discussion at both meetings regarding the Housing Trust Fund. There was widespread support for using HTF for permanent supportive housing for chronically homeless. The HTF Allocation Plan was derived from community needs and comments. There were no comments regarding the amendment of the Strategic Plan section of the Consolidated Plan. Arizona Department of Housing 5 FY2016-2017 Action Plan PR-05 Lead & Responsible Agencies - 91.300(b) Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Table 1 – Responsible Agencies CDBG Administrator Kathy Blodgett, CD&R Programs Administrator HOPWA Administrator Karia Basta, Special Needs Administrator HOME Administrator Andrew Rael, Assistant Deputy Director - Programs ESG Administrator Alfred Edwards, Arizona Department of Economic Security Narrative Consolidated Plan Public Contact Information Andrew Rael, Assistant Deputy Director – Programs andrew.rael@azhousing.gov (602) 771-1010 Arizona Department of Housing 6 FY2016-2017 Action Plan AP-10 Consultation - 91.110, 91.300(b); 91.315(l) Introduction ADOH is involved on a continual basis in numerous planning efforts with other State agencies and departments; local, regional, and county governments; housing and social service providers; businesses; and citizens. The planning bodies responsible for these efforts often consist of members that are recipients of ADOH funding or share in some respect ADOH’s mission to address housing and community development needs for low-income and special needs populations throughout the state. ADOH consulted with these planning bodies regarding the use of the Housing Trust Fund. Provide a concise summary of the state's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)). Coordination between public housing providers, private and governmental mental health and service agencies are achieved through the following statewide organizations and efforts. ADOH received a HUD 811 Demonstration Program Grant, which provides rental assistance for LIHTC properties that Set Aside units for individuals with developmental disabilities. ADOH is working with the Arizona Department of Economic Security (DES) to select the tenants and provide them with supportive services and the Arizona Health Care Cost Containment system (Medicare) which provides the funding for DES services. ADOH will use Housing Trust Fund to develop permanent supportive housing for chronically homeless individuals and families for which it will partner with private, governmental, mental health, and service agencies for the identification of tenants. The Arizona Coalition to End Homelessness (AZCEH) provides leadership in statewide efforts to end homelessness through advocacy, education, and coordination with local communities and initiatives. AZCEH activities include its annual statewide conference, coordination of focused service initiatives, along with providing education opportunities for those working on behalf of all those experiencing homelessness. Arizona’s Olmstead Plan: The Division of Behavioral Health established and led the Olmstead Policy Academy Team. ADOH participates in the workgroup. The purpose has been to update the State’s Plan. Regional Behavioral Health Authorities (RHBA's): Arizona Division of Behavioral Health contracts with RHBA's who provide integrated health care through a provider service network. Each RBHA has a Housing Coordinator who is very engaged in the COC and housing process. Arizona SOAR (SSI/SSDI, Outreach, Access, and Recovery) State Steering Committee was created in June 2014 with TA being provided by SAMHSA throughout the process of implementation. This project is designed to increase access to the disability income benefit Arizona Department of Housing 7 FY2016-2017 Action Plan programs administered by the Social Security Administration (SSA) for eligible adults who are homeless or at risk of homelessness and have a mental illness and/or a co-occurring substance use disorder. Each COC has a local lead assisting with the execution of the Action Plan. Expand the number of individuals trained in SOAR in order to obtain benefits for eligible individuals in a decreased amount of time. Provide a concise summary of the state’s activities to enhance coordination with local jurisdictions serving Colonias and organizations working within Colonias communities. Arizona has sixty-three (63) designated Colonias existing in the southern counties of Cochise, Gila, Graham, Greenlee, La Paz, Pima, Santa Cruz, and Yuma as well as on the Cocopah and Tohono O’odham Indian Reservations. The State, in consultation with the University of Arizona Drachman Institute, developed a Colonias housing assessment guide and water/sewer/housing assessment questionnaire that is completed by Colonias communities and used to determine the eligibility and needs of the Colonias. Most of the State CDBG eligible Colonias communities partner with their corresponding city, town, or county governments to apply for funding through the State Set Aside program. Additionally, the State of Arizona has a partnership with the regional Councils of Governments (COGs) in Arizona to provide both technical and administrative assistance to these CDBG eligible grantee communities. Finally, the State is a participating member of the Rural Water Infrastructure Committee (RWIC) where other state agencies, non-profit, and for profit entities come together to discuss current water and wastewater projects or technical assistance needs for rural communities including Colonias. The State sets aside ten percent (10%) of its CDBG funds annually for infrastructure and housing activities within Colonias and holds a competitive application round bi-annually to facilitate the ability to award funding in an amount sufficient for the Colonias to address their water, sewer, or housing need in its entirety. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and unaccompanied youth) and persons at risk of homelessness. The following statewide goals and objectives, some of which have been achieved, were adopted and introduced at meetings of all three (3) Continua of Care (COC). END CHRONIC HOMELESSNESS: 1) Move 300 chronically homeless individuals or families into permanent housing each year for the next five (5) years; 2) adopted and implemented statewide use of a common assessment tool to prioritize housing placement based on Arizona Department of Housing 8 FY2016-2017 Action Plan vulnerability; 3) support, monitor, and assess for centralized intake to prioritize chronically homeless individuals for placement and to evaluate outcomes; and 4) develop a statewide shared database of permanent supportive housing, affordable housing and tax credit supported housing options. Phoenix and Tucson are two (2) of the cities in a key federal strategy known as the 25 Cities Effort through which communities are receiving technical assistance and are mobilizing local planning efforts and partnerships to create systems for aligning housing and services interventions through coordinated systems to end homelessness. This Effort is to assist these major metropolitan areas in accelerating and aligning their existing efforts toward the creation of coordinated assessment and entry systems, laying the foundation for ending all homelessness, including homelessness among veterans. Phoenix and Tucson are accelerating the number of permanent housing placements for veterans experiencing homelessness and individuals experiencing chronic homelessness. PREVENT AND END VETERAN HOMELESSNESS: 1) Insure all mainstream and community resources identify veteran status and connect veterans to additional veteran resources; and 2) target and prioritize use of Housing and Urban Development (HUD) VASH housing vouchers towards chronically homeless veterans. In addition to the 25 Cities initiative, Phoenix and Tucson are also participating in the Zero:2016 Initiative, working to create a sustainable system for identifying, engaging, and rapidly housing homeless veterans to reach functional zero and maintain it. The Balance of State Continuum applied for and is now participating in the Vets@Home Technical Assistance offered through HUD, working on a By-Name List of homeless veterans and developing a sustainable process to accelerate permanent housing placements. CONTINUE WORK TO PREVENT AND END HOMELESSNESS FOR FAMILIES, YOUTH AND CHILDREN BY 2021: 1) Develop common reporting standards for family units versus beds to determine housing needs; 2) adopt common definition of homeless youth; and 3) add 300 units of permanent supportive housing to the housing system each year for the next ten (10) years. DEVELOP MEASUREMENT STANDARDS, DATA COLLECTION AND ACCURATE REPORTING SYSTEMS: 1) Organize a comprehensive statewide street and shelter survey to establish baseline data for future comparisons and research; and 2) establish common definitions, methodology, measurement tools, and reporting standards to be compiled into standardized reports to the Commission by the Continua of Care. MOVE FROM THE CURRENT SYSTEM OF HOMELESS MANAGEMENT TO A HOMELESS PREVENTION SYSTEM: 1) Expand centralized intake system to become Housing Options Centers with access to all forms of affordable housing, rental assistance, and emergency housing solutions; 2) implement a statewide re-entry process for jail and prison inmate release to prevent Arizona Department of Housing 9 FY2016-2017 Action Plan release to homelessness; and 3) expand the number of individuals trained in SOAR in order to obtain benefits for eligible individuals in a decreased amount of time. Describe consultation with the Continuum(s) of Care that serves the State in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds and develop funding, policies and procedures for the operation and administration of HMIS The State Homeless Coordination Office worked through the ESG Collaborators Group in Maricopa County and directly with all three (3) Continuums in the State (Maricopa, Pima, and Balance of State) to coordinate funding objectives for state funded Emergency Solutions Grant (ESG) programs in order that the State could fund those program objectives that the local ESG recipients did not have resources or capacity to serve. Simultaneously, the Maricopa ESG Collaborators Group, which is facilitated by the Maricopa County Continuum of Care, has developed performance standards and outcome measures for the Maricopa Continuum and ESG funded programs. As part of this project, we are working closely with the Homeless Management Information System (HMIS) to develop reports and procedures that will allow all funders to measure and monitor program recipients. All four (4) ESG activities (outreach, emergency shelter, rapid rehousing, and homeless prevention) are funded for the Balance of State. In the Maricopa County and Pima County COCs, many local jurisdictions preferred to focus on homeless prevention, allowing state funding to focus on rapid re-housing. ESG contracts are issued for a period of three (3) to five (5) years and an RFP has been issued in 2016 to reissue contracts. Agencies, groups, organizations and others who participated in the process and consultations Arizona Department of Housing 10 FY2016-2017 Action Plan Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Arizona Coalition to End Homelessness (AZCEH) Agency/Group/Organization Type Housing Services - Housing Services - Children Services - Elderly Persons Services - Persons with Disabilities Services - Persons with HIV/AIDS Services - Victims of Domestic Violence Services - Homeless Services - Health Services - Education Services - Employment Services - Fair Housing Services - Victims Health Agency Other government - State Other government - County Other government - Local Regional organization What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Arizona Department of Housing 11 FY2016-2017 Action Plan HOPWA Strategy Market Analysis Briefly describe how the Agency/Group/Organization ADOH and DES are members of Arizona Coalition to End was consulted. What are the anticipated outcomes of the Homelessness (AZCEH) and are sponsors of the AZCEH annual consultation or areas for improved coordination? statewide conference. Additionally, DES and the ADOH Special Needs Program Administrator participate on committees within AZCEH that coordinate and plan the conference. Coordination with AZCEH provides access to all major non-profits, service providers, developers, and agencies in Arizona who are working to end homelessness and provide services to persons experiencing homelessness. ADOH and DES membership in ACEH continues to provide education, development of the statewide homeless strategy, and identification of the housing and services needs for populations experiencing homelessness; in particular: veterans, persons with disabilities, victims of domestic violence, and unaccompanied youth. 2 Agency/Group/Organization Arizona Housing Alliance (AHA) Agency/Group/Organization Type Housing Services - Housing Services - Children Services - Elderly Persons Services - Persons with Disabilities Services - Victims of Domestic Violence Services - homeless Services - Health Services - Employment Arizona Department of Housing 12 FY2016-2017 Action Plan Services - Fair Housing Services - Victims Health Agency Other government - State Other government - County Other government - Local Regional organization Business Leaders Business and Civic Leaders What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs Market Analysis Briefly describe how the Agency/Group/Organization The Arizona Housing Alliance (AHA) is an organization formed was consulted. What are the anticipated outcomes of the to support housing initiatives and programs in the State of consultation or areas for improved coordination? Arizona. The Alliance is made up of 151 member entities that consist of developers; non-profits; real estate professionals; property management companies; financial institutions; service providers for persons experiencing homelessness or persons with disabilities; foreclosure and homebuyer counseling agencies; city, town, and county governments; regional Councils of Government; and private citizens who are involved with or Arizona Department of Housing 13 FY2016-2017 Action Plan interested in furthering efforts to solve housing issues for low to moderate income persons and vulnerable populations such as persons experiencing homelessness, veterans, or persons with disabilities. Examples of member agencies include A New Leaf; Arizona Coalition to End Homelessness; Bank of America; Merrill Lynch; Bethel Development; Chicanos Por La Causa; City of Casa Grande; Dohrmann Architects; Foundation for Senior Living; Habitat for Humanity; Housing Authority of Maricopa County; Housing Solutions of Northern Arizona; Native American Connections; etc. ADOH has consulted frequently with AHA especially regarding multi-family housing. AHA has attended consolidated plan and annual action plan hearings as well as the annual ADOH Housing Forum. Consultation with AHA gives ADOH access to a wide cross-section of housing practitioners who help to define the most pressing housing and service needs within Arizona. 3 Agency/Group/Organization Northern Arizona Council of Governments (NACOG) Agency/Group/Organization Type Housing Services - Housing Services - Children Services - Elderly Persons Other government - County Other government - Local Regional organization What section of the Plan was addressed by Consultation? Housing Need Assessment Arizona Department of Housing 14 FY2016-2017 Action Plan Briefly describe how the Agency/Group/Organization Northern Arizona Council of Governments (NACOG) is a partner was consulted. What are the anticipated outcomes of the with ADOH on the delivery of Community Development Block consultation or areas for improved coordination? Grant funds in Apache, Coconino, Navajo, and Yavapai counties as well as the communities within those counties. NACOG is frequently the project administrator for those counties and communities. NACOG coordinates with ADOH on the method of distribution for the CDBG funds allocated to the region on an annual basis. NACOG is also the responsible agency for the Head Start and Area Agency on Aging programs in northern Arizona. Their input into housing needs assessment and housing and community development needs is critical to the development of the Consolidated Plan and Annual Action Plan. 4 Agency/Group/Organization Central Arizona Council of Governments (CAG) Agency/Group/Organization Type Housing Services - Housing Services - Education Other government - County Other government - Local Regional organization Planning organization What section of the Plan was addressed by Consultation? Housing Need Assessment Market Analysis Economic Development Arizona Department of Housing 15 FY2016-2017 Action Plan Briefly describe how the Agency/Group/Organization Central Arizona Council of Governments (CAG) is a partner with was consulted. What are the anticipated outcomes of the ADOH on the delivery of Community Development Block Grant consultation or areas for improved coordination? funds in Gila and Pinal counties as well as the communities within those counties. CAG is frequently the project administrator for those counties and communities. CAG coordinates with ADOH on the method of distribution for the CDBG funds allocated to the region on an annual basis. CAG is also the responsible agency of the region for Workforce Investment Act, Transportation Planning, GIS data and mapping, and is a Federal Economic Development District. Their input into housing need assessment and community development needs is critical to the development of the Consolidated Plan and Annual Action Plan. 5 Agency/Group/Organization Western Arizona Council of Governments (WACOG) Agency/Group/Organization Type Housing Services - Housing Services - Children Services - Elderly Persons Services - Homeless Other government - County Other government - Local Regional organization What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Arizona Department of Housing 16 FY2016-2017 Action Plan Market Analysis Economic Development Briefly describe how the Agency/Group/Organization Western Arizona Council of Governments (WACOG) is a partner was consulted. What are the anticipated outcomes of the with ADOH on the delivery of Community Development Block consultation or areas for improved coordination? Grant funds in La Paz, Mohave, and Yuma counties as well as the communities within those counties. WACOG coordinates with ADOH on the method of distribution for the CDBG funds allocated to the region on an annual basis. WACOG is the responsible agency for the Head Start and Area Agency on Aging programs in western Arizona as well as the agency responsible in the region for Social Services Block Grant funds. WACOG also provides housing counseling services and is a member of the Regional Council on Aging. Their input into housing need assessment and housing and community development needs is critical to the development of the Consolidated Plan and Annual Action Plan. 6 Agency/Group/Organization SouthEastern Arizona Governments Organization (SEAGO) Agency/Group/Organization Type Housing Services - Elderly Persons Services - Persons with Disabilities Services - Homeless Other government - County Other government - Local Regional organization Planning organization Arizona Department of Housing 17 FY2016-2017 Action Plan What section of the Plan was addressed by Consultation? Housing Need Assessment Market Analysis Economic Development Briefly describe how the Agency/Group/Organization SouthEastern Arizona Governments Organization (SEAGO) is a was consulted. What are the anticipated outcomes of the partner with ADOH on the delivery of Community Development consultation or areas for improved coordination? Block Grant funds in Cochise, Graham, Greenlee, and Santa Cruz counties as well as the communities within those counties. SEAGO is frequently the project administrator for those counties and communities. SEAGO coordinates with ADOH on the method of distribution for the CDBG funds allocated to the region on an annual basis. SEAGO is also the responsible agency for the Area Agency on Aging and Social Services Block Grant programs in southeastern Arizona. SEAGO is also a member of the Transportation Advisory Committee for the region and is a Federal Economic Development District. Their input into housing need assessment and housing and community development needs is critical to the development of the Consolidated Plan and Annual Action Plan. 7 Agency/Group/Organization Arizona Home Foreclosure Prevention Funding Corporation (AHFPFC) Agency/Group/Organization Type Housing Grantee Department What section of the Plan was addressed by Consultation? Housing Need Assessment Arizona Department of Housing 18 FY2016-2017 Action Plan Briefly describe how the Agency/Group/Organization The Arizona Home Foreclosure Prevention Funding Corporation was consulted. What are the anticipated outcomes of the (AHPFC) offers assistance to homeowners facing foreclosure in consultation or areas for improved coordination? Arizona's hardest hit markets. AHPFC provides assistance in the form of mortgage modification, principal forbearance, mortgage payment relief, and second lien elimination. AHPFC makes constant programmatic adjustments in order to remain relevant to current market conditions and the mitigation needs of those homeowners facing foreclosure. AHPFC input into the consolidated planning process provides key information and data on current housing market conditions. 8 Agency/Group/Organization Arizona Department of Economic Security (DES) Agency/Group/Organization Type Services - Housing Services - Children Services - Elderly Persons Services - Homeless Other government - State What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Briefly describe how the Agency/Group/Organization The Arizona Department of Economic Security (DES) is the State was consulted. What are the anticipated outcomes of the agency consultation or areas for improved coordination? responsible for Solutions Grant funding. administering federal Emergency Data collected from DES includes critical information on the number of persons in Arizona receiving Arizona Department of Housing 19 FY2016-2017 Action Plan emergency homeless services to prevent homelessness or to rapidly re-house individuals and families experiencing homelessness. ADOH consults with DES on the ESG program several times annually to prepare either for the Annual Action Plan or the CAPER. 9 Agency/Group/Organization Arizona Department of Housing / Arizona Housing Finance Authority (AzHFA) Agency/Group/Organization Type Housing What section of the Plan was addressed by Consultation? Housing Need Assessment Market Analysis Briefly describe how the Agency/Group/Organization The Arizona Housing Finance Authority (AzHFA) is the was consulted. What are the anticipated outcomes of the mortgage bond authority for the thirteen (13) rural counties of the consultation or areas for improved coordination? state. ADOH consults with the AzHFA continuously throughout the year through data sharing to understand the homebuyer market and needs in the rural parts of our State. 10 Agency/Group/Organization Agency/Group/Organization Type Balance of State Continuum of Care (BOSCOC) Housing Services - Housing Services - Children Services - Elderly Persons Services - Persons with Disabilities Services - Persons with HIV/AIDS Services - Victims of Domestic Violence Services - Homeless Services - Health Arizona Department of Housing 20 FY2016-2017 Action Plan Services - Education Services - Employment Services - Fair Housing Services - Victims Regional organization What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy HOPWA Strategy Briefly describe how the Agency/Group/Organization ADOH serves as the collaborative applicant and Homeless was consulted. What are the anticipated outcomes of the Management Information System (HMIS) lead agency for the consultation or areas for improved coordination? Continuum of Care for the thirteen (13) non-metro counties in the state. A Continuum of Care is a community planning process to organize and deliver housing and services to meet the specific needs of people experiencing homelessness as they move to stable housing and maximum self-sufficiency. This process brings together local governments, community businesses, faith-based organizations, non-profits, current and/or formerly homeless persons to develop local solutions to end homelessness. 11 Agency/Group/Organization Agency/Group/Organization Type Arizona Division of Behavioral Health Services (AzDBHS) Housing Services - Homeless Arizona Department of Housing 21 FY2016-2017 Action Plan Services - Health Health Agency Other government - State What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs HOPWA Strategy Briefly describe how the Agency/Group/Organization The Arizona Division of Behavioral Health Services (AzDBHS) is was consulted. What are the anticipated outcomes of the the ADOH connection to behavioral health service providers who consultation or areas for improved coordination? become part of the BOSCOC. Consultation provides critical information on the housing and service needs of behavioral health clients who are either non-homeless or experiencing homelessness. 12 Agency/Group/Organization Agency/Group/Organization Type Maricopa County Housing Services - Housing Services - Children Services - Elderly Persons Services - Persons with Disabilities Services - Homeless Other government - County Arizona Department of Housing 22 FY2016-2017 Action Plan What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Briefly describe how the Agency/Group/Organization ADOH partners with Maricopa County to fund the development was consulted. What are the anticipated outcomes of the or rehabilitation of multifamily affordable housing through the consultation or areas for improved coordination? Low Income Housing Tax Credit and HOME programs. DES ESG funds are used within the county to support emergency shelter, rapid re-housing, outreach, and HMIS. Finally, ADOH is the entity that provides Maricopa County with the Certification of Consistency with the Consolidated Plan. 13 Agency/Group/Organization Pima County Community Development & Neighborhood Conservation Department Agency/Group/Organization Type Housing Services - Housing Services - Children Services - Elderly Persons Services - Persons with Disabilities Services - Homeless Other government - County What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless Homeless Needs - Families with children Arizona Department of Housing 23 FY2016-2017 Action Plan Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Briefly describe how the Agency/Group/Organization ADOH partners with Pima County to fund the development or was consulted. What are the anticipated outcomes of the rehabilitation of multi-family affordable housing through the Low consultation or areas for improved coordination? Income Housing Tax Credit and HOME programs. DES ESG funds are used within the county to support emergency shelter, rapid re-housing, and outreach. Finally, ADOH is the entity that provides Pima County with the Certification of Consistency with the Consolidated Plan. Identify any Agency Types not consulted and provide rationale for not consulting ADOH, through consultation with the Arizona Housing Alliance, Arizona Coalition to End Homelessness, rural Councils of Government, Arizona Division of Behavioral Health Services, Arizona Housing Finance Authority, Arizona Home Foreclosure Prevention Funding Corporation, Balance of State Continuum of Care, Maricopa County, Pima County, and the Arizona Department of Economic Security, is confident that all agency types have been given the opportunity to assist with determination of needs for the State. Other local/regional/state/federal planning efforts considered when preparing the Plan Table 3 – Other local / regional / federal planning efforts Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Narrative Arizona Department of Housing 24 FY2016-2017 Action Plan AP-12 Participation - 91.115, 91.300(c) Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal setting This public participation process included both an amendment to the Consolidated Plan (to amend the affordable housing sections of the Strategic Plan for the HTF) and Review of the Action Plan. ADOH encouraged citizen participation throughout the development of the Consolidated Plan by consulting stakeholders, local, and regional governments; holding public meetings; and encouraging public comment during the public review period. The following two (2) public meetings were held: 1) Phoenix, Arizona: March 8, 2016 at 1:00 p.m., Arizona Department of Housing, 1110 West Washington Street, Suite 280 (ADOH Training Room on 2nd Floor); 2) Phoenix, Arizona: April 13, 2016 at 10:00 a.m., Arizona Department of Housing, 1110 West Washington Street, Suite 250 (building conference room). Newspaper advertisements, e-mail bulletins, and website information were published at least seven (7) days prior to two (2) meetings held to receive public input. The draft Consolidated Plan amendment and draft Action Plan were made available to the public for a thirty (30) day comment period beginning March 22, 2016 and ending April 22, 2016. Among those receiving e-mail notifications were governments, Continuums of Care, businesses, developers, institutions, non-profit organizations, and all agencies serving low income, special needs (including persons with disabilities), and minority residents. All public meetings included segments whereby participants were not only asked to identify housing and community development needs but to also prioritize these needs. The goals outlined in the Annual Action Plan are based on the priorities and timelines outlined in the public meetings. The comments received through the citizen participation process were essential to outlining priorities in the Action Plan and Consolidated Plan amendment. The majority of the needs identified throughout the process are incorporated in amended Consolidated Plan and Action Plan goal statements. Summary citizen participation process and efforts made to broaden citizen participation in Colonias Arizona has sixty-three (63) designated Colonias existing in the southern counties of Cochise, Gila, Graham, Greenlee, La Paz, Pima, Santa Cruz, and Yuma as well as on the Cocopah and Tohono O’odham Indian Reservations. The State, in consultation with the University of Arizona Drachman Institute, developed a Colonias housing assessment guide and water/sewer/housing assessment questionnaire that is completed by Colonias communities and used to determine the eligibility and needs of the Colonias. Most of the State CDBG eligible Colonias communities partner with their corresponding city, town, or county governments to apply for funding through the State Set Aside program. Additionally, the State of Arizona has a partnership with the Arizona Department of Housing 25 FY2016-2017 Action Plan regional Councils of Governments (COGs) in Arizona to provide both technical and administrative assistance to these CDBG eligible grantee communities. Finally, the State is a participating member of the Rural Water Infrastructure Committee (RWIC) where other state agencies, non-profit, and for profit entities come together to discuss current water and wastewater projects or technical assistance needs for rural communities including Colonias. The State sets aside ten percent (10%) of its CDBG funds annually for infrastructure and housing activities within Colonias and holds a competitive application round bi-annually to facilitate the ability to award funding in an amount sufficient for the Colonias to address their water, sewer, or housing need in its entirety Arizona Department of Housing 26 FY2016-2017 Action Plan Citizen Participation Outreach Table 4 – Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/ attendance Summary of comments received The Discussion centered around the use Summary of comments not accepted and reasons URL (if applicable) of the National Housing Trust Fund. Concern was expressed that both chronically homeless individuals and Minorities There were 1 Public Non-English twenty-three Speaking - (23) in Specify other attendance language: representing Spanish local government, Meeting Persons with private disabilities business, the development Residents of community and Public and non-profits. Assisted Housing families should be eligible. Support was expressed for scattered site rehabilitation of existing units. Balance of State areas have a shortage of ELI housing and should be able to access the funding. Applicants should be required to identify rental subsidy and funding for supportive services. Operating costs should be an eligible expense. NHTF All comments were accepted. loans should be soft debt. If this is administered under the HOME project guidelines, this would restrict the rent to the thirty percent (30%) AMI rent, rather than calculating the rent at the fifty percent (50%) AMI level to support the property at a rent level that is feasible for operations. Support was expressed to for Arizona Department of Housing 27 FY2016-2017 Action Plan Sort Order Mode of Outreach Target of Outreach Summary of response/ attendance Summary of comments received ADOH to increase the length of Summary of comments not accepted and reasons URL (if applicable) affordability period. NHTF should not be for mixed development where eighty percent (80%) are market and twenty percent (20%) are affordable. Do not add additional regulation that is not necessary. HOME rules limit the subsidy on rent and would need a third party subsidy for operating expenses. Minorities Non-English Speaking Specify other language: 2 Public Spanish Meeting Persons with disabilities Residents of Public and Assisted Housing Arizona Department of Housing The discussion again centered around the There were use of the NHTF. NHTF units should be thirty-two (32) ADA accessible. Support was expressed in attendance to use NHTF for operating cost for rental representing developments. If not enough demand local exists for PSH, the funds should be government, opened up for all very low income. private Operating costs should be allowed. business, the Questions on the following regarding development HTF: What are eligible costs? What is the community and expenditure timeline? Is assistance a non-profits. grant or a loan? Can HTF be used in conjunction with PHA funds? 28 FY2016-2017 Action Plan Expected Resources AP-15 Expected Resources – 91.320(c)(1,2) Introduction The State will use the program resources covered by this Action Plan including CDBG, HOME, HOPWA, ESG, HTF, and NSP program income, as well as AzHFA Bond Financing, in the following manner: Anticipated Resources Table 5 - Expected Resources – Priority Table Expected Amount Available Year 1 Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Expected Amount Available Reminder of ConPlan $ 10,578,395 0 0 10,578,395 0 Program Source of Funds CDBG public • Acquisition - • Admin and State and Small Cities federal Planning Program Uses of Funds Narrative Description State of Arizona CDBG • Economic Development • Housing • Public Improvements • Public Services CDBG public • Admin and Colonias - Planning Set Aside federal Arizona Department of Housing 0 0 0 0 0 29 FY2016-2017 Action Plan Expected Amount Available Year 1 Program Source of Funds Uses of Funds Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Expected Amount Available Reminder of ConPlan $ 4,804,047 0 0 4,804,047 0 Narrative Description State of Arizona HOME • Homeowner rehab • Multifamily rental rehab • Public Improvements HOME public • Acquisition - • Homebuyer federal assistance • Homeowner rehab • Multifamily rental new construction • Multifamily rental rehab • New construction for ownership • TBRA Arizona Department of Housing 30 FY2016-2017 Action Plan Expected Amount Available Year 1 Program Source of Funds HOPWA public federal Uses of Funds • Permanent Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Expected Amount Available Reminder of ConPlan $ 239,786 0 0 239,786 0 State of Arizona HOPWA 1,685,724 0 0 1,685,724 0 State of Arizona ESG Narrative Description housing in facilities • Permanent housing placement • Short term or transitional housing facilities • STRMU • Supportive services • TBRA ESG public federal • Conversion and rehab for transitional housing • Financial Assistance Arizona Department of Housing 31 FY2016-2017 Action Plan Expected Amount Available Year 1 Program Source of Funds Uses of Funds Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Expected Amount Available Reminder of ConPlan $ 1,194,700 0 0 1,194,700 3,000,000 Narrative Description State of Arizona NSP funds • Overnight shelter • Rapid rehousing (rental assistance) • Rental Assistance • Services • Transitional housing Other public • Acquisition - • Homebuyer federal assistance program income. • Multifamily rental new construction • Multifamily rental rehab Other public • Acquisition - state 3,000,000 0 0 3,000,000 3,000,000 HTF in the amount of $3,000,000 will be available for the program year July 1, Arizona Department of Housing 32 FY2016-2017 Action Plan Expected Amount Available Year 1 Program Source of Funds Uses of Funds • Multifamily rental new construction • Multifamily rental rehab Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Expected Amount Available Reminder of ConPlan $ Narrative Description 2016 through June 30, 2017. ADOH will distribute HTF throughout Arizona on a competitive basis in accordance with Housing Trust Fund Interim Rule (24 CFR Parts 91 and 93) and the following Allocation Plan. Eligible activities for HTF are the production, preservation, and rehabilitation of affordable rental housing developments in which all or a portion of the rental units are set-aside as permanent supportive housing for individuals and families who are chronically homeless with extremely low income (thirty percent Arizona Department of Housing 33 FY2016-2017 Action Plan Expected Amount Available Year 1 Program Source of Funds Uses of Funds Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Expected Amount Available Reminder of ConPlan $ Narrative Description (30%) of the HUD area median income). Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied The LIHTC, HOME, and HTF Programs leverage construction financing, local government contributions, Federal Home Loan BankAHP, and private equity. The CDBG program leverages local government contributions. Arizona Housing Trust Fund will provide the twenty-five percent (25%) HOME match requirement and the administrative funds for ADOH’s Continuum of Care funds. If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The State has no land holdings that will be used to address the needs in this plan. Discussion Anticipated resources include CDBG $10,578,395; HOME $4,804,047; ESG $1,685,724; HOPWA $239,786; and HTF $3,000,000. The State of Arizona through the Arizona Department of Housing leverages private, state and local funds to address affordable housing, community development and homeless issues. These leverage funds, especially the State Housing Trust Funds, also provide the required program match for CPD Programs. These leverage resources are necessary to accomplish the goals as outlined in this Plan. Arizona Department of Housing 34 FY2016-2017 Action Plan Annual Goals and Objectives AP-20 Annual Goals and Objectives – 91.320(c)(3)&(e) Goals Summary Information Table 6 – Goals Summary Sort Order 1 Goal Name Improve Start Year End Year Category 2015 2019 quality of housing stock Geographic Area Needs Addressed • Affordable State of • Accessibility for Housing Arizona Disabled Persons • Public Housing • Owner Occupied Housing Rehabilitation • Rental Housing Funding Goal Outcome Indicator CDBG: Rental units rehabilitated: $2,900,000 Six (6) household housing HOME: units $2,000,000 CDBG Homeowner housing Colonias rehabilitated: 118 Set Aside: household housing units $146,000 Development and Rehabilitation 2 Construction 2015 and 2019 • Affordable State of • Rental Housing Housing Arizona Development $100,000 155 household housing HOME: units Rehabilitation • Public Housing and of Rental Units • Homeless Rehabilitation • Non-Homeless Special Needs CDBG: Rental units constructed: $2,000,000 HTF: Rental units rehabilitated: $3,000,000 Forty-seven (47) NSP 1 household housing units Program Arizona Department of Housing 35 FY2016-2017 Action Plan Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator Income: $1,000,000 3 Clearance and 2015 2019 Demolition of Substandard • Affordable State of Housing Arizona Occupied Housing • Non-Housing Units • Owner Rehabilitation Community Development • Rental Housing Development and CDBG: Buildings demolished: $198,000 Two (2) buildings Housing code enforcement/foreclosed property care: Two (2) household housing units Rehabilitation 4 Public Services 2015 2019 for LMI • Non-Housing State of Community Arizona • Public Services CDBG: Public service activities $312,000 other than low/moderate Development income housing benefit: 4,800 persons assisted 5 Provide Public 2015 2019 • Non-Housing State of Infrastructure Community Arizona and Facilities Development • Public Facilities and Improvements CDBG: Public facility or $4,000,000 infrastructure activities other than low/moderate income housing benefit: 18,000 persons assisted 6 Housing and 2015 Services for Persons with HIV/AIDS 2019 • Affordable State of • Public Services CDBG Public service activities Housing Arizona • Rental Housing Colonias other than low/moderate • Non-Homeless Special Needs Development and Set Aside: income housing benefit: $236,060 Ten (10) persons assisted Rehabilitation Arizona Department of Housing 36 FY2016-2017 Action Plan Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator HIV/AIDS housing operations: Ten (10) household housing units 7 Rental 2015 2019 • Homeless Assistance and State of • Emergency Arizona Services Services for the • Rental Homeless Assistance ESG: Public service activities for $1,545,994 low/moderate income HTF: housing benefit: 200 $3,000,000 households assisted • Rental Housing Rental units constructed: Development Thirty-five (35) household and housing units Rehabilitation Rental units rehabilitated: Thirty-five (35) household housing units Tenant-based rental assistance / rapid rehousing: 200 households assisted 8 Further Fair 2015 Housing and Address Impediments 2019 • Affordable State of • Further Fair Housing Arizona Housing CDBG: Other: 200 other $123,000 • Rental Housing Development and Rehabilitation Arizona Department of Housing 37 FY2016-2017 Action Plan Sort Order 9 Goal Name Improve the Start Year End Year 2015 2019 Category Geographic Area • Non-Housing State of Economic Community Arizona Environment Development Needs Addressed • Economic Development Funding Goal Outcome Indicator CDBG: Facade treatment/business $50,000 building rehabilitation: Two (2) businesses and Section 108 • Public Facilities Jobs created/retained: and Twenty (20) jobs Improvements Businesses assisted: Two (2) businesses assisted 10 Assist New 2015 2019 Homebuyers • Affordable State of • Homebuyer Housing Arizona Assistance HTF: Direct financial assistance $36,000,00 to homebuyers: 750 0 households assisted 11 Building Local 2015 2019 Capacity • Non-Housing State of Community Arizona Development • Public Facilities and CDBG: Public facility or $75,000 infrastructure activities Improvements other than low/moderate income housing benefit: Ninety-one (91) persons assisted 12 Housing for 2015 persons with special needs 2019 • Affordable State of • Emergency Housing Arizona Services • Rental Housing CDBG: Public service activities for $1,000,000 low/moderate income HOPWA: housing benefit: Fifty (50) Development $700,000 households assisted and HOME: Rehabilitation $1,000,000 Tenant-based rental CDBG assistance / rapid reColonias Arizona Department of Housing 38 FY2016-2017 Action Plan Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator Set Aside: housing: Fifty (50) $100,000 households assisted Homelessness prevention: Fifty (50) persons assisted 13 Provide ADA 2015 improvements for housing 2019 • Affordable State of Housing Arizona • Non-Housing Community Development • Accessibility for CDBG: Public facility or Disabled $100,000 infrastructure activities Persons HOME: other than low/moderate • Owner Occupied Housing Rehabilitation • Public Facilities and Improvements • Rental Housing Development and $250,000 income housing benefit: 200 persons assisted Rental units rehabilitated: Ten (10) household housing units Homeowner housing rehabilitated: Ten (10) household housing unit Rehabilitation Arizona Department of Housing 39 FY2016-2017 Action Plan Goal Descriptions Table 7 – Goal Descriptions 1 Goal Name Improve quality of housing stock Goal Description The poor quality of the housing stock is generally identified as one of Arizona's largest housing problems. By improving the quality of the housing stock through rehabilitation of existing single family and multifamily units, the community sustains its affordable housing stock while allowing the current residents to be able to afford their homes. 2 Goal Name Construction and rehabilitation of rental units Goal Description This goal will aid individuals and families with finding affordable housing through the construction and rehabilitation of affordable rental units. 3 Goal Name Clearance and demolition of substandard units Goal Description Provide the necessary assistance for local governments to clear and demolish substandard buildings alleviating hazards to the health and safety of its residents. 4 Goal Name Public services for LMI Goal Description This goal is to assist individuals and families in obtaining the necessary public services to improve their quality of life. 5 Goal Name Provide public infrastructure and facilities Goal Description Assist local government with providing and upgrading public facilities including community buildings, parks, water and drainage infrastructure, streets, sidewalks, lighting, water treatment facilities, and energy infrastructure. 6 Goal Name Housing and services for persons with HIV/AIDS Goal Description Provide the necessary rental assistance and services for persons suffering with HIV/AIDS. Arizona Department of Housing 40 FY2016-2017 Action Plan 7 Goal Name Rental assistance and services for the homeless Goal Description Through coordination with the Continuum of Care and HTF, ADOH will address the housing needs of the homeless persons and provide the necessary supportive services to help them attain stability. 8 Goal Name Further fair housing and address impediments Goal Description This goal encourages sub-recipients to further fair housing in their communities and address the impediments that may be hindering housing choice for the protected classes. 9 Goal Name Improve the economic environment Goal Description Develop economic opportunities to improve the economic environment for the State of Arizona, especially the rural areas. 10 Goal Name Goal Description Assist new homebuyers Assist families and individuals with the financial and educational resources to become homebuyers through homebuyer counselling classes, low interest mortgage bond financing, and down payment assistance provided by the Arizona Housing Finance Authority (AzHFA). 11 Goal Name Goal Description Building local capacity Build the capacity of local governments and non-profit organizations giving them the ability to implement projects and programs that benefit the low-income populations. 12 Goal Name Goal Description Housing for persons with special needs Increase the number of housing units that accommodate the following populations: homeless individuals and families; elderly (sixty-two (62) and over); persons with sensory or physical disabilities; persons with developmental disabilities; veterans; victims of violence; persons recovering from substance abuse; and seriously mentally ill. Arizona Department of Housing 41 FY2016-2017 Action Plan 13 Goal Name Goal Description Provide ADA improvements for housing Provide ADA improvements for housing and public facilities to ensure accessibility to persons with physical and sensory impairments. Arizona Department of Housing 42 FY2016-2017 Action Plan AP-25 Allocation Priorities – 91.320(d) Introduction The State determines allocation priorities through analysis of need, demand, historical funding data, and through consultation with public and private partners, units of local government, service providers, for profit, and non-profit entities. Funding allocation priorities for FY2016 are shown in the table below. Funding Allocation Priorities Table 8 – Funding Allocation Priorities CDBG Housing Rental Clearance and Assistance Services for and Further Fair Housing for Improve Construction and quality and Demolition Public Provide Public Persons Services for Housing and Improve the of Rehabilitation of Services Infrastructure with the Address Economic housing of Rental Units Substandard for LMI and Facilities HIV/AIDS Homeless Impediments stock (%) (%) Units (%) (%) (%) (%) (%) 27 0 0 3 60 0 0 Colonias Building persons Provide ADA Assist New Local with improvements Set Environment Homebuyers Capacity special for housing Aside Total (%) (%) (%) (%) needs (%) (%) (%) (%) 0 0 0 0 0 0 10 100 CDBG Colonias Set-aside 20 0 0 0 80 0 0 0 0 0 0 0 0 0 100 HOME 45 55 0 0 0 0 0 0 0 0 0 0 0 0 100 HOPWA 0 0 0 0 0 100 0 0 0 0 0 0 0 0 100 ESG 0 0 0 0 0 0 55 0 0 0 0 0 0 0 55 0 70 0 0 0 0 0 0 0 0 0 0 0 0 70 0 100 0 0 0 0 0 0 0 0 0 0 0 0 100 Other HTF Other NSP 1 Program Income Arizona Department of Housing 43 FY2016-2017 Action Plan Reason for Allocation Priorities The State determines allocation priorities through analysis of historical project funding data; Consolidated Annual Performance Evaluation Reports (CAPER); public meetings held and public comment received during the development of this plan; current market analysis; and finally current needs assessment as described in this plan. How will the proposed distribution of funds will address the priority needs and specific objectives described in the Consolidated Plan? The proposed funds distribution has been determined based on allocation priorities using historical data going back a minimum of five (5) years. Historical data identified the percentage of federal allocation used for each priority listed. As the priorities identified for this plan are largely the same as for the previous plan, historical data provides an excellent basis for determining distribution. Arizona Department of Housing 44 FY2016-2017 Action Plan AP-30 Methods of Distribution – 91.320(d)&(k) Introduction The method of distribution for the State takes into consideration the number of rurally located communities, as well as the metropolitan areas, which have the highest density populations. To reach all of these areas, the State awards funds to sub-recipients who administer the projects and programs. The method of distribution for each funding source, as well as the award selection process, is described below. Distribution Methods Table 9 - Distribution Methods by State Program 1 State Program Name: CDBG Funding Sources: CDBG Describe the state program CDBG eligible activities are found in 24 CFR Part 570.482, as amended and typically involve addressed by the method of construction and rehabilitation of public facilities (parks, streets, sewers) as well as public services like job training. ADOH plans to utilize no less than seventy percent (70%) of the distribution. CDBG funds for activities that directly benefit persons of low- and moderate-income and no more than thirty percent (30%) toward addressing community blight or other urgent need activities. Those activities listed in SP-25 of the Consolidated Plan document that have received a priority ranking of high are eligible for funding under this Action Plan. Describe all of the criteria that Applicants must propose projects that are financially viable, necessary and feasible, ready to will be used to select start, conform to compliance standards, meet a national objective, and result in benefit. applications and the relative Projects must adhere to contracted timeliness parameters for both progress and expenditures. importance of these criteria. Projects must comply with the priorities communicated through this Annual Action Plan. Benefit to low-income persons, preventing or eliminating slum or blight, or meeting other urgent community needs must be measurable by the end of the approved contract timeframe. Arizona Department of Housing 45 FY2016-2017 Action Plan If only summary criteria were All application materials are available from the ADOH website. Additionally, the following described, how can potential handbooks are available: CDBG Application Handbook; CDBG Administration Handbook; applicants access application Environmental Review Handbook; and CDBG Procurement Handbook. manuals or publications other state describing application criteria? the (CDBG only) Describe awarding the process funds to for Not applicable to this program. state recipients and how the state will make its allocation available to units of general local government and nonprofit organizations, including community and faith-based organizations. (ESG only) Identify the selecting project (including method of Not applicable to this program. sponsors providing full access to grassroots faith-based and other community-based organizations). (HOPWA only) Describe how resources will be The State expects to retain one percent (1%) Set Aside for technical assistance and two percent allocated among funding (2%) plus $100,000 for State administration. ADOH will provide the two percent (2%) required categories. match in non-federal matching funds. HUD mandates the State expend at least ten percent (10%) of its CDBG project allocation in areas designated as Colonias. Eighty-five percent (85%) Arizona Department of Housing 46 FY2016-2017 Action Plan of the remaining amount of CDBG funds after allocations to administration, technical assistance, and the Colonia Set Aside will be distributed into the Regional Account (RA). The RA is divided into four (4) sub-accounts, one (1) for each of the non-metropolitan Council of Governments (COG) areas. To determine the amount of CDBG funding allocated to each COG’s sub account, the State uses a formula based on population and persons in poverty. Regional Account allocations are as follows: CAG - $2,227,865; NACOG - $2,004,302; SEAGO - $1,138,343; and WACOG - $2,367,213. Each COG region must adopt a method of distribution (MOD) and submit it to ADOH for approval. The MOD contains a multi-year schedule indicating how CDBG allocations are to be distributed such that all eligible communities within each respective COG region will receive funding. This will allow each community to plan its CDBG projects in advance. After the MOD is determined, local governments must complete applications for funding and route them through the COG to ADOH. The COG reviews each application for completeness, priority project selection, and assists the applicant with rectifying any application deficiencies. The COGs have no discretion to approve or reject applications and must forward all applications to the State. Only those communities and counties identified as eligible to receive funding in the current year MOD may submit an application. All applications for the Regional Account are due to ADOH by 4:00 P.M. on the following dates: NACOG - June 1st annually; WACOG - July 1st annually; SEAGO - August 1st annually; and CAG - September 1st annually. Fifteen percent (15%) of the remaining amount of CDBG funds, after allocations to administration, technical assistance, and the Colonia Set Aside, will be distributed into the competitive State Special Projects Account (SSP). All communities eligible to receive funding from the State CDBG program are eligible to apply for SSP funding. Eligible categories are as follows: 1) public facilities and improvements; 2) community/supportive housing facilities; 3) housing; 4) economic development; and 5) neighborhood revitalization and redevelopment. Applications submitted must propose all activities pursuant to 24 CFR 570 that are ready to begin implementation immediately with environmental review requirements completed, Release of Funds issued, land control secured, Arizona Department of Housing 47 FY2016-2017 Action Plan planning, design, and permitting complete, and all other related upfront issues resolved. A NOFA will be released and will include the application form and applicable deadlines. Additionally, the NOFA will indicate any variances in project eligibility, documentation requirements, etc. Projects will be selected for SSP funding through a competitive process in which applications are scored by a rating and ranking system that includes project priority, project needs, percentage of low/mod income persons served, project readiness, leveraged funds, and organizational capacity. Projects must receive a minimum score of seventy (70) points to be eligible for an award. The highest scoring applications that have also achieved the minimum score of seventy (70) points will be awarded until SSP funding is exhausted. Describe threshold factors and ADOH applies performance criteria to all communities that submit CDBG funding grant size limits. applications. Applications/projects in excess of one (1) per community or three (3) per county will be funded only if the following threshold criteria are met on the date the application is received by ADOH: all reporting required by the Department is up to date; all monitoring findings have been cleared; recipient is compliant with all current contracts; recipient is in compliance with all original contract Schedules of Completion or has obtained ADOH approvals for revisions or amendments to their Schedules of Completion; recipient has no contracts over the previous three (3) years that have been extended more than once; for all previously funded projects, environmental clearances have been obtained and scope of work has begun; and recipient has no current contract in which funds have not been drawn for six (6) months. Additional thresholds apply for recipients with current contracts for projects previously awarded and are as follows: recipients with contracts in their twenty-fourth (24th) or greater month must be one hundred percent (100%) complete with Scope of Work and CDBG funds must be one hundred percent (100%) expended or de-obligated. Grant size for Regional Account projects are determined by the formulas used for each COG's approved method of distribution. Grant size for Colonia Set Aside projects is determined by two (2) years of pooled ten percent (10%) Set Asides and then through project application budgets and sources and uses. SSP grant size is a maximum $300,000 per project. Arizona Department of Housing 48 FY2016-2017 Action Plan What are the outcome measures Investment of CDBG funds will create suitable living environments, promote sustainability expected as a result of the and make housing affordable and accessible. Over the year covered by this plan, ADOH anticipates assisting 370 households and 149,369 persons through investment of CDBG funds. method of distribution? 2 State Program Name: CDBG Colonias Set Aside Funding Sources: CDBG Colonias Set Aside Describe the state program State of Arizona CDBG Colonias Set Aside. HUD mandates the State expend at least ten addressed by the method of percent (10%) of its CDBG project allocation in the areas designated as Colonias. Colonias funding will be distributed through a competitive application process. ADOH will issue a distribution. funding notice, once every two (2) years, to solicit projects located in eligible, designated Colonias. Eligible projects include water or sewer infrastructure and substantial housing rehabilitation. Describe all of the criteria that According to Section 916 of the Cranston-Gonzalez Act of 1990, a “Colonias” is any identifiable will be used to select community that: is located within 150 miles of the border between the United States and applications and the relative Mexico, except within any standard metropolitan statistical area that has a population importance of these criteria. exceeding 1,000,000; is designated by the state or county in which it is located as a Colonias; is determined to be a Colonias on the basis of objective criteria, including the lack of potable water supply; lack of adequate sewage systems; lack of decent, safe and sanitary housing; and is generally recognized as a Colonias before the enactment of the National Affordable Housing Act of 1990. All cities, towns, counties, and tribal reservations that contain either geographically defined neighborhoods or unincorporated communities designated as Colonias and that are eligible to receive CDBG Colonias Set Aside funding through ADOH are eligible to apply for these funds. Maricopa and Pinal Counties, as well as the communities and tribal reservations located within those counties, are excluded from eligibility for Colonias funding. Under this funding, ADOH is able to serve eligible designated Colonia in Pima County, although the county is not eligible to receive other CDBG funds from ADOH. The Arizona Department of Housing 49 FY2016-2017 Action Plan funding notice will further outline the Colonias Set Aside maximum project funding, application requirements, as well as the scoring categories, which will be designed to award projects for Colonias demonstrating the greatest need due to severe water, sewer, and housing issues. Other scoring categories will include, but are not limited to, poverty level; leveraged funds; project need; project priority; project readiness; past performance; and organizational capacity. An application for Colonias Set Aside funds will not affect a jurisdiction’s eligibility for other CDBG funding. CDBG Colonias resources for Federal FY2015 and FY2016 will be combined and will be awarded through one (1) competitive funding round announced through a Notice of Funding Availability (NOFA) in State Fiscal Year 2016. Water/sewer infrastructure (delivery and/or treatment systems) and substantial housing rehabilitation activities will be considered eligible Colonias Set Aside projects for areas certified as designated Colonias. If only summary criteria were All Colonias Set Aside application requirements and materials will be available on the ADOH described, how can potential website; in the NOFA; and in the CDBG Application Handbook. Additionally, the following applicants access application handbooks are available: CDBG Administration; Environmental Review; and CDBG manuals or publications state Procurement. other describing application criteria? the (CDBG only) Describe awarding the process funds to for Not applicable to this program. state recipients and how the state will make its allocation available to units of general local government and nonprofit organizations, including Arizona Department of Housing 50 FY2016-2017 Action Plan community and faith-based organizations. (ESG only) Identify the selecting project (including method of Not applicable to this program. sponsors providing full access to grassroots faith-based and other community-based organizations). (HOPWA only) Describe how resources will be Resources will be allocated based on relative needs based on needs assessment data provided allocated among funding in each application. categories. Describe threshold factors and Thresholds are outlined in the NOFA when released as well as in the CDBG Application grant size limits. Handbook. Grant size is limited to the total amount of available funds listed in the NOFA and is usually two (2) years-worth of CDBG Colonias Set Aside funds at ten percent (10%) per year. This will allow sufficient funding for applicants to address water, sewer, or housing related issues in their entirety. What are the outcome measures Colonias Set Aside funding will provide accessibility/affordability, promote sustainability and expected as a result of the create suitable living environments. It is anticipated that Colonias Set Aside funds will method of distribution? provide assistance to approximately 400 Colonia residents every two (2) years. 3 State Program Name: ESG Funding Sources: ESG Describe the state program Emergency Solutions Grant (ESG) funds support street outreach services to homeless persons addressed by the method of living on the streets; basic shelter and supportive services for homeless persons in the form of distribution. operation costs and direct services for homeless persons living in temporary emergency shelters; funding for homeless prevention services to assist individuals and families at risk of Arizona Department of Housing 51 FY2016-2017 Action Plan losing housing and becoming homeless; and rapid re-Housing support for individuals and families who are homeless and need assistance to return to housing and independent living. ESG funds also support HMIS data collection, information management and reporting systems and administrative services necessary to coordinate grant activities. ESG funding for outreach essential services and temporary emergency shelter will not exceed sixty percent (60%) of the grant amount. Describe all of the criteria that The method of distribution for ESG funding is determined based on the percent of homeless will be used select served and counted as represented in the annual demographics report and the annual Point to applications and the relative In Time count submitted to the Homeless Coordination Office each year by each Continuum of Care. The cumulative percent is then set as a target for the percent of total available funding importance of these criteria. to be awarded in each of the three (3) Continua of Care. Funds are then awarded through contracts with specific providers from each Continuum as long as there are enough providers who qualify for funding based on the request for proposal (RFP) selection process. The DES will award contracts through a competitive RFP process. Proposals are reviewed by a panel comprised of internal staff, Continua of Care, and community partners. Proposals are assessed using the rating system published in each RFP. The rating system may include service methodology, experience and expertise, cost, capacity, and other factors deemed relevant. If only summary criteria were Not applicable to this program. described, how can potential applicants access application manuals or publications application other state describing criteria? the (CDBG only) Arizona Department of Housing 52 FY2016-2017 Action Plan Describe awarding the process funds to for ESG funding is allocated based on the percent of homeless served and counted as represented state in the annual demographics report and the annual Point In Time count submitted to the recipients and how the state Homeless Coordination Office each year by each Continuum of Care. The DES will award will make its allocation contracts through a competitive request for proposal (RFP) process. Proposals are reviewed available to units of general by a panel comprised of internal staff, Continua of Care, and community partners. Proposals local government and non- are assessed using the rating system published in each RFP. The rating system may include profit organizations, including service methodology, experience, expertise, cost, capacity, and other factors deemed relevant. community and faith-based organizations. (ESG only) Identify the selecting project (including method of Not applicable to this program. sponsors providing full access to grassroots faith-based and other community-based organizations). (HOPWA only) Describe how resources will be The State expects to receive $1,685,724 in ESG Funds. These funds are administered through allocated among funding the Arizona Department of Economic Security (DES). The DES retains seven and one-half categories. percent (7.5%) of the grant award for administrative costs. After administrative funds retention, the remaining ninety-two and one-half percent (92.5%) of ESG funds will be allocated as follows: approximately ten percent (10%) for street outreach; approximately fifty percent (50%) for temporary emergency shelter; approximately five percent (5%) for homelessness prevention; and approximately thirty-five percent (35%) for rapid re-housing. Describe threshold factors and Contracts are awarded based on the needs of the service area and available service providers. grant size limits. There are no grant size limits other than the budget proposals included in the RFP response. One (1) aspect of the review process is assessing the number of people that each provider commits to serve and the projected cost per person served reflected in the proposed budget. Arizona Department of Housing 53 FY2016-2017 Action Plan What are the outcome measures The State will utilize this grant to increase the availability and accessibility of suitable living expected as a result of the environments and housing options by providing a wide range of supportive services to method of distribution? persons experiencing homelessness or at risk of homelessness including street outreach services, temporary emergency shelter, rapid re-housing, and homeless prevention services. Approximately 14,500 people are anticipated to be served using ESG funding for emergency shelter and street outreach essential services. Additionally, 1,100 to 1,250 households are expected to be served through rapid re-housing activities. Contracts with sub-grantees also call out specific performance measures to be accomplished: 6.0 Performance Measures 6.1 Seventy-five percent (75%) of participants improve in overall Arizona Self-Sufficiency Matrix score from participant entry to participant exit. 6.2 Sixty percent (60%) of participants who exit the rapid re-housing program exit to permanent housing during the program year. 6.3 Seventy-five percent (75%) rapid re-housing participants who exit the rapid re-housing program score at least four (4) on the income question of the self-sufficiency matrix. 6.4 Sixty percent (60%) of rapid re-housing participants meet at least one (1) of the priority populations criteria. 6.5 Forty percent (40%) percent of temporary emergency shelter clients exit to positive permanent housing situations during the program year. 4 State Program Name: HOME Funding Sources: HOME Describe the state program The Home Investment Partnership (HOME) program provides funding to state and local addressed by the method of governments and non-profit organizations for local programs that support the construction or distribution. Arizona Department of Housing rehabilitation of rental housing and the rehabilitation of ownership housing. 54 FY2016-2017 Action Plan Describe all of the criteria that Competitive applications rounds are announced through a Notice of Funds Available (NOFA) will be used select and applications are selected through a competitive process. Competitive criteria include to applications and the relative readiness, project team capacity, priority populations served, and percentage of leverage funds in the project. Competitive point scoring favors non-entitlement areas outside of importance of these criteria. Maricopa and Pima Counties. If only summary criteria were Not applicable to this program. described, how can potential applicants access application manuals or publications other state describing application criteria? the (CDBG only) Describe awarding the process funds to for Not applicable to this program. state recipients and how the state will make its allocation available to units of general local government and nonprofit organizations, including community and faith-based organizations. (ESG only) Identify the selecting project (including method of Not applicable to this program. sponsors providing full access to grassroots faith-based and other community-based Arizona Department of Housing 55 FY2016-2017 Action Plan organizations). (HOPWA only) Describe how resources will be ADOH will allocate new funding to the following activity in the approximate following allocated among funding amount: 1) rental housing development, including CHDO Set Aside - $2,323,642; and 2) categories. owner-occupied housing rehabilitation (OOHR) - $2,000,000. The State will make available owner-occupied housing rehabilitation funds through a competitive Notification of Funds Availability (NOFA), which will be announced and will include information regarding project eligibility, maximum funding amounts, application requirements, etc. A competitive advantage will exist in each NOFA for areas of the State that do not have access to other HOME funds or CDBG funds. HOME funds Set Aside for rental development are expected to be utilized as gap financing in projects that are successful in securing a competitive Low-Income Housing Tax Credit (LIHTC) allocation. Any remaining funds may be made available through a competitive process NOFA. If CHDO funds remain available, a NOFA strictly for CHDO projects may be released. Ten percent (10%) or $480,405 of the HOME funds will be for ADOH administrative costs. Of the multi-family projects, an amount equal to fifteen percent (15%) or $720,607 of the total HOME allocation will be reserved for CHDO sponsored multi-family development projects. Describe threshold factors and To be eligible to apply for HOME funds (for any project type), the applicant and all of its team grant size limits. members, with the exception of the applicant’s consultant (“Applicant Team”), must meet the following performance criteria on all SHF and CDBG contracts on the date the application is received by ADOH: all reporting required by ADOH is up to date; all monitoring findings have been cleared; all fees payable to ADOH are paid; Applicant Team is compliant with all current contracts; Applicant Team is in conformance with all original contract project timelines or has obtained ADOH approvals for revisions or amendments to their project timelines; for all previously funded projects, environmental clearances have been obtained and scope of work has begun; Applicant Team has no existing contracts in which project completion reports and data have not been submitted and accepted by ADOH within sixty (60) days of a final Arizona Department of Housing 56 FY2016-2017 Action Plan draw; Applicant Team has no current contract in which funds have not been drawn for six (6) months; Applicant Team with contracts in their twenty-fourth (24th) or greater month must be one hundred percent (100%) complete with Scope of Work, Contract Close-out Report received, and approved and HOME funds one hundred percent (100%) expended or deobligated; Applicant Team has no outstanding or unresolved contractual, property, or beneficiary-related compliance issues; the applicant is an eligible party to apply for funding through ADOH; the activity, project, and property type is eligible; SHFs are budgeted for eligible uses; the proposed beneficiaries are eligible; the amount of SHF invested per unit does not exceed the program limits and is at least $1,000/unit; applicant has certified that all development or rehabilitation will meet, at a minimum, all local building codes and the property is properly zoned for the proposed use and meets local ordinances; the applicant (and all of its team members) is not included on the Federal Excluded Parties List located at: www.sam.gov; the Environmental Review requirements pursuant to 24 CFR Part 58, (up to Part III HUD Appendix A for Single Family Owner-Occupied Rehabilitation), are complete and an Authority to use Grant Funds from HUD or ADOH is provided; and all funding sources (loans, grants, fee waivers, land donations, etc.) must be secured with written binding commitments at application and the project must be scheduled to start within ninety (90) days of executing a Funding Agreement with the ADOH. Grant sizes are determined in each NOFA but typically are $500,000 per multi-family project and $250,000 per owner occupied housing rehabilitation project. What are the outcome measures The State will use its HOME allocation for program funding to increase the expected as a result of the availability/accessibility and affordability of decent housing and provide suitable living method of distribution? environments for low-income households. ADOH anticipates assisting approximately one hundred (100) households at or below eighty percent (80%) AMI with owner occupied housing rehabilitation and approximately sixty-six (66) households at or below eighty percent (80%) AMI with construction or new or rehabilitation of multi-family rental units. Arizona Department of Housing 57 FY2016-2017 Action Plan 5 State Program Name: HOPWA Funding Sources: HOME Describe the state program Housing Opportunities for Persons with HIV/AIDS (HOPWA) funds provide housing and addressed by the method of supportive services for persons with HIV/AIDS. These funds may go toward acquisition, rehabilitation or new construction of housing units and may also fund rental assistance, distribution. facility operations, short-term homelessness prevention, medical and mental health services, chemical dependency treatment, nutritional services, case management, and other supportive services. Describe all of the criteria that Contracts will be reviewed annually with additional proposals solicited as necessary. Project will be used select sponsors are selected by ADOH after extensive outreach efforts to local governmental entities, to applications and the relative non-profits, and grassroots organizations. importance of these criteria. If only summary criteria were Not applicable to this program. described, how can potential applicants access application manuals or publications other state describing application criteria? the (CDBG only) Describe awarding the process funds to for Not applicable to this program. state recipients and how the state will make its allocation available to units of general local government and non- Arizona Department of Housing 58 FY2016-2017 Action Plan profit organizations, including community and faith-based organizations. (ESG only) Identify the selecting project (including method of Contracts will be reviewed annually with additional proposals solicited as necessary. Project sponsors sponsors are selected by ADOH after extensive outreach efforts to local governmental entities, providing full non-profits, and grassroots organizations. access to grassroots faith-based and other community-based organizations). (HOPWA only) Describe how resources will be ADOH expects to receive $239,786 in HOPWA Funds. Three percent (3%) will be retained by allocated among funding ADOH to cover administrative related expenses of the program; grantees will be allowed to categories. utilize seven percent (7%) of the grant money for grantee administration costs. The remaining ninety percent (90%) of the grant award will be spent on rental assistance and direct service provision. ADOH will contract with housing providers to administer the HOPWA program within the thirteen (13) non-entitlement counties. Two-thirds (2/3) of the funding will be spent for housing assistance, most for tenant-based subsidies, while the remaining one-third (1/3) will be used for supportive services. Describe threshold factors and Contracts are awarded based on the needs of the service area and available service providers. grant size limits. There are no grant size limits. What are the outcome measures ADOH will utilize HOPWA funds to increase the availability/accessibility and affordability of expected as a result of the suitable living environments and decent housing through organizations that provide planning method of distribution? for housing needs, education, and access to essential community resources. Approximately fifty (50) people are anticipated to be served using available HOPWA funds. 6 State Program Name: Funding Sources: Arizona Department of Housing Housing Trust Fund A portion of the State of Arizona unclaimed property deposits. 59 FY2016-2017 Action Plan Describe the state program The National Housing Trust Fund (HTF) is a new affordable housing production program to addressed by the method of increase and preserve the supply affordable housing for extremely low-income (ELI) and very low-income households (VLI), including families experiencing homelessness. distribution. HTF, established under Title I of the Housing and Economic Recovery Act of 2008, will be distributed through the U.S. Department of Housing and Urban Development (HUD) on a formula basis to the states. The Arizona Department of Housing (ADOH) is the designated grantee of HTF for Arizona. ADOH will receive $3,000,000 in HTF to be available for the program year July 1, 2016 through June 30, 2017. ADOH will distribute HTF throughout Arizona on a competitive basis in accordance with Housing Trust Fund Interim Rule (24 CFR Parts 91 and 93) and the following Allocation Plan. Describe all of the criteria that HTF will be distributed to eligible projects through one (1) of the following competitive will be used to select application processes that contain the priority funding objectives outlined below: 1) the Low applications and the relative Income Housing Tax Credit (LIHTC) process in accordance with the criteria outlined in the importance of these criteria. most recent Qualified Allocation Plan (QAP) found at www.azhousing.gov; and 2) a Request for Proposals (RFP) process in general conformance with the point scoring, threshold, and underwriting criteria outlined in the most recent QAP. Priority funding will be given to eligible projects that best demonstrate adherence to the following criteria through a competitive scoring process: 1) equitable disbursement of funds to all areas of the State, both rural and urban; 2) capacity, experience, and past performance of applicant; 3) extent and quality of service to chronically homeless individuals and families; 4) proximity of proposed project to transit, employment, services, and amenities; 5) project readiness, 6) sustainable development (energy and water efficiency); 7) the extent to which the eligible project has rental assistance; 8) the duration of the affordability period; and 9) the inclusion of non-federal funding in the eligible project. If only summary criteria were Not applicable to this program. described, how can potential Arizona Department of Housing 60 FY2016-2017 Action Plan applicants access application manuals or publications other state describing application criteria? the (CDBG only) Describe the awarding process funds to for Not applicable to this program. state recipients and how the state will make its allocation available to units of general local government and nonprofit organizations, including community and faith-based organizations. (ESG only) Identify the selecting project (including method of Not applicable to this program. sponsors providing full access to grassroots faith-based and other community-based organizations). (HOPWA only) Describe how resources will be Costs allowed for eligible projects are “Eligible Project Costs”. Eligible Project Costs are the allocated among funding following: 1) development hard costs; 2) acquisition costs; 3) related soft costs; 4) staff and categories. a overhead costs for ADOH not to exceed ten percent (10%) of the annual allocation; and 5) relocation costs. HTF will be distributed statewide by ADOH directly to eligible recipients in the form of loans to partially (gap financing) or fully fund (primary financing) eligible projects. Loans will be low to no interest loans with minimum payments or deferred forgivable for Arizona Department of Housing 61 FY2016-2017 Action Plan terms of at least thirty (30) years. Financing will be made available only to the extent it is needed as determined by ADOH underwriting guidelines as outlined in the most recent ADOH QAP. Describe threshold factors and There will be no grant size limits. Limits will be established based in individual project grant size limits. underwriting criteria and the ability for the project to perform. The maximum per unit development subsidy per unit are the most recent Section 234 condominium housing elevator base limits by bedroom size. Priority funding will be given to eligible projects that best demonstrate adherence to the following criteria through a competitive scoring process: 1) equitable disbursement of funds to all areas of the State, both rural and urban; 2) capacity, experience, and past performance of applicant; 3) extent and quality of service to chronically homeless individuals and families; 4) proximity of proposed project to transit, employment, services, and amenities; 5) project readiness; 6) sustainable development (energy and water efficiency); 7) the extent to which the eligible project has rental assistance; 8) the duration of the affordability period; and 9) the inclusion of non-federal funding in the eligible project. What are the outcome measures It is expected that seventy (70) units of permanent supportive rental housing will be developed expected as a result of the for chronically homeless individuals and families. method of distribution? 7 State Program Name: Funding Sources: NSP 1 Program Income HTF Describe the state program Program Income from investment of Neighborhood Stabilization Program 1 funds (NSP1) will addressed by the method of be invested in redevelopment or rehabilitation of eligible multi-family housing projects. distribution. Describe all of the criteria that According to the approved NSP1 Action Plan, the State will either directly select eligible multiwill be used to select family housing projects or will select through a competitive application process as outlined through a NOFA where all application criteria will be announced. Investment of funds will Arizona Department of Housing 62 FY2016-2017 Action Plan applications and the relative include at least twenty-five percent (25%) of funding Set Aside to serve persons at or below importance of these criteria. fifty percent (50%) of area median income. Competitive criteria include readiness, project team capacity, priority populations served, and percentage of leverage funds in project. Only applications that meet completeness requirements and minimum thresholds are considered for funding. Applications that meet minimum thresholds are underwritten based on the following criteria as relevant to the proposed activity: 1) market need/demand; 2) management/capacity; 3) budget/financial analysis; 4) program design; and 5) all other financing is secured. Once it is determined an application meets minimum underwriting standards, the application and underwriting results are forwarded to an ADOH funding review. If only summary criteria were Not applicable to this program. described, how can potential applicants access application manuals or publications other state describing application criteria? the (CDBG only) Describe awarding the process funds to for Not applicable to this program. state recipients and how the state will make its allocation available to units of general local government and nonprofit organizations, including community and faith-based organizations. (ESG only) Arizona Department of Housing 63 FY2016-2017 Action Plan Identify the selecting project (including method of Not applicable to this program. sponsors providing full access to grassroots faith-based and other community-based organizations). (HOPWA only) Describe how resources will be One hundred percent (100%) of any NSP1 program income received will be invested in NSP1 allocated among funding eligible multi-family redevelopment or rehabilitation activities. categories. Describe threshold factors and To be eligible to apply for NSP1 program income funds, the applicant and all of its team grant size limits. members with the exception of the applicant’s consultant (“Applicant Team”), must meet the following performance criteria on the date the application is received by ADOH: all reporting required by ADOH is up to date; all monitoring findings have been cleared; all fees payable to ADOH are paid; Applicant Team is compliant with all current contracts; Applicant Team is in conformance with all original contract project timelines or has obtained ADOH approvals for revisions or amendments to their project timelines; for all previously funded projects, environmental clearances have been obtained and scope of work has begun; Applicant Team has no existing contracts in which project completion reports and data have not been submitted and accepted by ADOH within sixty (60) days of a final draw; Applicant Team has no current contract in which funds have not been drawn for six (6) months; Applicant Team with contracts in their twenty-fourth (24th) or greater month must be one hundred percent (100%) complete with scope of work, contract close-out report received and approved and grant funds one hundred percent (100%) expended or de-obligated; Applicant Team has no outstanding or unresolved contractual, property, or beneficiary-related compliance issues; the applicant is an eligible party to apply for funding through ADOH; the activity, project, and property type is eligible; SHFs are budgeted for eligible uses; the proposed beneficiaries are Arizona Department of Housing 64 FY2016-2017 Action Plan eligible; applicant has certified that all development or rehabilitation will meet, at a minimum, all local building codes and the property is properly zoned for the proposed use and meets local ordinances; the applicant (and all of its team members) is not included on the Federal Excluded Parties List located at: www.sam.gov; the Environmental Review requirements pursuant to 24 CFR Part 58, (up to Part III HUD Appendix A for Single Family OwnerOccupied Rehabilitation), are complete and an Authority to use Grant Funds from HUD or ADOH is provided; all funding sources (loans, grants, fee waivers, land donations, etc.) must be secured with written binding commitments at application; and the project must be scheduled to start within ninety (90) days of executing a Funding Agreement with the ADOH. Grant sizes are determined in each NOFA for competitive application rounds or through the underwriting process for projects directly selected by ADOH. What are the outcome measures The State will use its NSP1 program income for program funding to increase the expected as a result of the availability/accessibility and affordability of decent housing and provide suitable living method of distribution? environments for low-income households with incomes at or below fifty percent (50%) of area median income. ADOH anticipates assisting approximately fifty-two (52) households. Discussion These methods of distribution will allow the State to address affordable housing, community development, and homeless issues throughout its entire jurisdictional service area. CDBG funds are distributed to non-entitlement jurisdictions on a non-competitive basis that ensures all eligible communities receive funding for community development projects in their respective jurisdictions. HOME funds are distributed statewide on a competitive basis for Rental Development and Housing Rehabilitation with point scoring that slightly favors non-entitlement areas outside of Maricopa and Pima Counties. ESG funds are distributed on a competitive basis targeted to areas with a higher percentage of homeless populations. HOPWA contracts are reviewed annually with additional proposals solicited as necessary. HOPWA project sponsors are selected by ADOH after extensive outreach efforts to local governmental entities, non-profits, and grassroots organizations. HTF funds will be distributed on a competitive basis. Arizona Department of Housing 65 FY2016-2017 Action Plan AP-35 Projects – (Optional) Introduction This Section applies only to HOPWA activities. HOPWA funds will be used for the following activities: 1) short-term rent, mortgage, and utility assistance to prevent homelessness of the individual or family; 2) tenant-based rental assistance; 3) units provided in permanent housing facilities developed, leased or operated with HOPWA funds; 4) units provided in transitional short-term housing facilities developed, leased or operated with HOPWA funds. Projects currently funded by HOPWA: Table 10 - Project Information # 1 Project Name HOPWA STRMU - Northland Cares / #511-16 2 HOPWA TBRA - Northland Cares / #510-16 3 HOPWA - Mohave County TBRA / #509-16 Describe the reasons for allocation priorities and any obstacles to addressing underserved needs State funding is allocated in such a way as to address areas of greatest need and the needs determined by communities through their public participation processes. Obstacles to addressing underserved needs relate to capacity and funding limitations. Arizona Department of Housing 66 FY2016-2017 Action Plan AP-38 Project Summary Project Summary Information Table 11 – Project Summary 1 Project Name HOPWA STRMU Northland Cares / #511-16 Target Area Goals Supported Needs Addressed Rental Assistance Funding HOPWA: $86,432 Description Recipient shall administer a Housing Opportunities for Persons Living with AIDS (HOPWA), Short-term (Emergency) Rental, Mortgage, and/or Utility Assistance (STRMU) program to fifty (50) households; individuals and families in three (3) northern Arizona counties, consisting of Coconino, Gila, and Yavapai Counties; to persons diagnosed as HIV positive or as having AIDS; whose income is at or below eighty percent (80%) AMI. Recipient will also provide supportive services such as case management, transportation, childcare, and project administration. Target Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities Project Name Arizona Department of Housing HOPWA TBRA Northland Cares / #510-16 67 FY2016-2017 Action Plan 2 Target Area Goals Supported Housing and Services for Persons with HIV/AIDS Rental Assistance and Services for the Homeless Needs Addressed Rental Assistance Funding HOPWA: $48,588 Description Recipient shall administer a Housing Opportunities for Persons with HIV/AIDS (HOPWA), Tenant Based Rental Assistance (TBRA) project to a minimum of five (5) households of lowincome (eighty percent (80%) AMI for the applicable county of residence) diagnosed as HIV positive or as having AIDS. Preference will be given to either persons who meet HUD's definition of homeless or chronically homeless, are living in substandard housing, have been released from a residential treatment setting within the previous fourteen (14) days, or have received a written eviction notice in Coconino, Yavapai, Gila, Navajo, or Apache Counties in Arizona. Target Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities 3 Project Name HOPWA Mohave County TBRA / #509-16 Target Area Goals Supported Housing and Services for Persons with HIV/AIDS Rental Assistance and Services for the Homeless Arizona Department of Housing 68 FY2016-2017 Action Plan Needs Addressed Rental Assistance Funding HOPWA: $164,262 Description Recipient shall administer a Housing Opportunities for Persons with HIV/AIDS (HOPWA), Tenant Based Rental Assistance (TBRA) program to a minimum of eleven (11) households diagnosed as HIV positive or as having AIDS, who are at or below eighty percent (80%) AMI consisting of eight (8) individuals and three (3) families with preference given to either persons who meet HUD's definition of homeless or chronically homeless in Mohave County, Arizona. The households will also receive supportive services as delineated in formulated housing and supportive service plans. Target Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities Arizona Department of Housing 69 FY2016-2017 Action Plan AP-40 Section 108 Loan Guarantee – 91.320(k)(1)(ii) Will the state help non-entitlement units of general local government to apply for Section 108 loan funds? No. Available Grant Amounts Section 108 Loan Guarantee grant amounts will be available in accordance with 24 CFR 570, subpart M. There is no minimum grant amount and the maximum grant amount would be determined by the funding requirements as presented in the application not to exceed the amount of available uncommitted Section 108 Loan Guarantee Funds. Acceptance process of applications Section 108 is the loan guarantee component of the Community Development Block Grant (CDBG) Program. Section 108 provides communities with a source of financing for economic development, housing rehabilitation, public facilities and large-scale physical development projects. Section 108 loan guarantee applications must meet a CDBG National Objective and the activity must be listed as eligible in accordance with the 24 CFR Part 570 and must meet a public benefit standard in accordance with 24 CFR Part 570.209 (b). Potential applicants must present a project concept to the State with a plan of development including resources, consultants, and other entities involved with the development of the project and project application. The State will determine whether to move forward with a Section 108 Loan Guarantee based on the strength of the Section 108 loan application. The project must have positive cash flow and have assets available as security. Applicants must have two (2) forms of collateral in addition to the Section 108 loan guarantee provided by the State. It is recommended that a financial consultant with experience in Section 108 loans be contracted to ensure the project will meet HUD underwriting and feasibility standards. Applications will be forwarded to HUD on a rolling basis dependent upon the amount of available uncommitted Section 108 loan guarantee funds. Arizona Department of Housing 70 FY2016-2017 Action Plan AP-45 Community Revitalization Strategies – 91.320(k)(1)(ii) Will the state allow units of general local government to carry out community revitalization strategies? No. State’s process and criteria for approving local government revitalization strategies The State provides detailed Neighborhood Revitalization Strategy (NRS) criteria (including details on how the criteria is met) and forms in its CDBG Application Handbook at Section 4 available for download from the ADOH website. The State will approve NRS based on the degree to which it addresses the following requirements per HUD regulation: 1) consultation; 2) boundaries; 3) rationale; 4) demographic criteria; 5) program linkages; 6) economic conditions; 7) strategy assessment; 8) timeline; and 9) proposed performance measures. Arizona Department of Housing 71 FY2016-2017 Action Plan AP-48 Method of Distribution for Colonias Set Aside – 91.320(d)&(k) Introduction Distribution Methods Table 12 - Distribution Methods by State Program for Colonias Set-aside State Program Name CDBG Funding Sources CDBG CDBG Colonias Set Aside CDBG Colonias Set Aside ESG ESG HOME HOME HOPWA HOME NSP 1 Program Income HTF State Programs Addressed CDBG eligible activities are found in 24 CFR Part 570.482, as amended, and typically involve construction and rehabilitation of public facilities (parks, streets, sewers), as well as public services, like job training. ADOH plans to utilize no less than seventy percent (70%) of the CDBG funds for activities that directly benefit persons of low- and moderate-income and no more than thirty percent (30%) toward addressing community blight or other urgent need activities. Those activities listed in SP-25 of the Consolidated Plan document that have received a priority ranking of high are eligible for funding under this Action Plan. Criteria and their importance Applicants must propose projects that are financially viable, necessary and feasible, ready to start, conform to compliance standards, meet a national objective, and result in benefit. Projects must adhere to contracted timeliness parameters for both progress and expenditures. Projects must comply with the priorities communicated through this Annual Action Plan. Benefit to lowincome persons, preventing or eliminating slum or blight, or meeting other urgent community needs must be measurable by the end of the approved contract timeframe. CDBG only: Access of application manuals All application materials are available from the ADOH website. Additionally, the following handbooks are available: CDBG Application Handbook; CDBG Administration Handbook; Environmental Review Handbook; and CDBG Procurement Handbook. ESG only: Process for awarding funds to state recipients Not applicable to this program. Arizona Department of Housing 72 FY2016-2017 Action Plan HOPWA only: Method of selecting project sponsors Not applicable to this program. Resource Allocation among Funding Categories The State expects to retain one percent (1%) set aside for technical assistance and two percent (2%) plus $100,000 for State administration. ADOH will provide the two percent (2%) required match in non-federal matching funds. HUD mandates the State expend at least ten percent (10%) of its CDBG project allocation in areas designated as Colonias. Eighty-five percent (85%) of the remaining amount of CDBG funds after allocations to administration, technical assistance, and the Colonias Set Aside will be distributed into the Regional Account (RA). The RA is divided into four (4) sub-accounts, one (1) for each of the non-metropolitan Council of Governments (COG) areas. To determine the amount of CDBG funding allocated to each COG’s sub account, the State uses a formula based on population and persons in poverty. Regional Account allocations are as follows: CAG - $2,227,865; NACOG - $2,004,302; SEAGO - $1,138,343; and WACOG $2,367,213. Each COG region must adopt a method of distribution (MOD) and submit it to ADOH for approval. The MOD contains a multi-year schedule indicating how CDBG allocations are to be distributed such that all eligible communities within each respective COG region will receive funding. This will allow each community to plan its CDBG projects in advance. After the MOD is determined, local governments must complete applications for funding and route them through the COG to ADOH. The COG reviews each application for completeness, priority project selection, and assists the applicant with rectifying any application deficiencies. The COGs have no discretion to approve or reject applications and must forward all applications to the State. Only those communities and counties identified as eligible to receive funding in the current year MOD may submit an application. All applications for the Regional Account are due to ADOH by 4:00 P.M. on the following dates: NACOG - June 1st annually; WACOG - July 1st annually; SEAGO - August 1st annually; and CAG - September 1st annually. Fifteen percent (15%) of the remaining amount of CDBG funds, after allocations to administration, technical assistance, and the Colonias Set Aside, will be distributed into the competitive State Special Projects Account (SSP). All communities eligible to receive funding from the State CDBG program are eligible to apply for SSP funding. Eligible categories are as follows: 1) public facilities and improvements; 2) community/supportive housing facilities; 3) housing; 4) economic development; and 5) neighborhood revitalization and redevelopment. Applications submitted must propose all activities, pursuant to 24 CFR 570, that are ready to begin implementation immediately with environmental review requirements completed; Release of Funds issued; land control secured; planning, design, and permitting complete; and all other related upfront issues resolved. A NOFA will be released and will include the application form and applicable deadlines. Additionally, the NOFA will indicate any variances in project eligibility, Arizona Department of Housing 73 FY2016-2017 Action Plan documentation requirements, etc. Projects will be selected for SSP funding through a competitive process in which applications are scored by a rating and ranking system that includes project priority, project needs, percentage of low/mod income persons served, project readiness, leveraged funds, and organizational capacity. Projects must receive a minimum score of seventy (70) points to be eligible for an award. The highest scoring applications that have also achieved the minimum score of seventy (70) points will be awarded until SSP funding is exhausted. Threshold Factors and Grant Size Limits ADOH applies performance criteria to all communities that submit CDBG funding applications. Applications/projects in excess of one (1) per community or three (3) per county will be funded only if the following threshold criteria are met on the date the application is received by ADOH: all reporting required by the Department is up to date; all monitoring findings have been cleared; recipient is compliant with all current contracts; recipient is in compliance with all original contract schedules of completion or has obtained ADOH approvals for revisions or amendments to their schedules of completion; recipient has no contracts over the previous three (3) years that have been extended more than once; for all previously funded projects, environmental clearances have been obtained and scope of work has begun; and recipient has no current contract in which funds have not been drawn for six (6) months. Additional thresholds apply for recipients with current contracts for projects previously awarded and are as follows: recipients with contracts in their twenty-fourth (24th) or greater month must be one hundred percent (100%) complete with scope of work; and CDBG funds must be one hundred percent (100%) expended or de-obligated. Grant size for Regional Account projects are determined by the formulas used for each COG's approved method of distribution. Grant size for Colonias Set Aside projects is determined by two (2) years of pooled ten percent (10%) set asides and then through project application budgets and sources and uses. SSP grant size is a maximum $300,000 per project. Outcome Measures expected as results of Distribution Method Investment of CDBG funds will create suitable living environments, promote sustainability, and make housing affordable and accessible. Over the year covered by this Plan, ADOH anticipates assisting 370 households and 149,369 persons through investment of CDBG funds. Discussion Arizona Department of Housing 74 FY2016-2017 Action Plan AP-50 Geographic Distribution – 91.320(f) Description of the geographic areas of the state (including areas of low-income and minority concentration) where assistance will be directed The State of Arizona does not provide specific geographic target priorities for allocating investments for the programs that it administers. CDBG Program Geographic Priorities: CDBG funds are allocated to all non-entitlement Units of General Local Government outside of Pima and Maricopa County, and the cities of Casa Grande, Douglas, Flagstaff, Prescott, Sierra Vista, and Yuma. After the set aside of ten percent (10%) for Colonias projects and State allowable retention of administration (two percent (2%) plus $100,000) and technical assistance funding (one percent (1%)), eighty-five percent (85%) of remaining CDBG funds are distributed on a non-competitive basis through the Regional Account to each Council of Government region using a method of distribution developed by each respective COG and approved by the State. Fifteen percent (15%) of the remaining CDBG funds are distributed on a competitive basis through the State Special Projects Account using a Notice of Funding Available. Each non-entitlement unit of local government determines their individual priority needs through their public participation process. A minimum of seventy percent (70%) of all CDBG expenditures will serve persons at or below eighty percent (80%) of area median income. HOME Program Geographic Priorities: Arizona does target special needs populations and service enriched locations through its competitive point structures used for awarding HOME funds. The State HOME funds are targeted to rental development programs and owner occupied housing rehabilitation programs, and allocated on a competitive basis. HOPWA Program Geographic Priorities: HOPWA funds are allocated based on need to service providers located outside of Cochise, Maricopa, and Pima Counties. ESG Program Geographic Priorities: ESG funding is determined based on the percent of homeless served and counted as represented in the annual demographics report and the annual Point in Time count submitted to the Homeless Coordination Office each year by each Continuum of Care. The cumulative percent is then set as a target for the percent of total available funding to be awarded in each of the three (3) Continua of Care. Funds are then awarded through an RFP process and contracts are awarded from each Continuum as long as there are enough providers who qualify for funding based on the RFP selection process. HTF Geographic Priorities: Priority funding will be given to eligible projects that best demonstrate adherence to the following criteria through a competitive scoring process: 1) equitable disbursement of funds to all areas of the State, both rural and urban; 2) capacity, experience, and past performance of applicant; 3) extent and quality of service to chronically homeless individuals and families; 4) proximity of proposed project to transit, employment, services, and amenities; 5) project readiness; 6) sustainable development (energy and water Arizona Department of Housing 75 FY2016-2017 Action Plan efficiency); 7) the extent to which the eligible project has rental assistance; 8) the duration of the affordability period; and 9) the inclusion of non-federal funding in the eligible project. Geographic Distribution Table 13 - Geographic Distribution Target Area Percentage of Funds State of Arizona 100% Rationale for the priorities for allocating investments geographically ADOH works in cooperation with the Councils of Governments to ensure that CDBG funds are allocated as fairly as possible. Application scoring criteria for HOME funds for single-family housing rehabilitation include a performance threshold that effectively rotates available funds in accordance with expenditure performance. HOPWA and ESG funds are allocated as in accordance with capacity. HTF will be distributed on a competitive basis. ESG funding is allocated based on the percent of homeless served and counted as represented in the annual demographics report and the annual Point In Time count submitted to the Homeless Coordination Office each year by each Continuum of Care. The cumulative percent is then set as a target for the percent of total available funding to be awarded in each of the three (3) Continua of Care. Funds are then awarded through contracts with specific providers from each Continuum as long as there are enough providers who qualify for funding based on the RFP selection process. HTF funds are allocated on a competitive basis. Discussion CDBG funds are distributed to non-entitlement jurisdictions on a non-competitive that ensures all eligible communities receive funding for community development projects in their respective jurisdictions. HOME funds are distributed statewide on a competitive basis for rental development and housing rehabilitation with point scoring that slightly favors non-entitlement areas outside of Maricopa and Pima Counties. ESG funds are distributed on a competitive basis targeted to areas with a higher percentage of homeless populations. HOPWA contracts are reviewed annually, with additional proposals solicited as necessary. HOPWA project sponsors are selected by ADOH after extensive outreach efforts to local governmental entities, non-profits, and grassroots organizations. HTF funds will be used to develop permanent supportive housing for chronically homeless individuals and families. Although no specific geographic target priorities are established by the State, funding is allocated in such a way as to address areas of greatest need and the needs determined by communities through their public participation processes. Arizona Department of Housing 76 FY2016-2017 Action Plan Affordable Housing AP-55 Affordable Housing – 24 CFR 91.320(g) Introduction Affordable Housing goals are indicated in the table below for the number of homeless, nonhomeless, and special needs households, and for the number of affordable housing units that will be provided by program type, including production of new units, rehabilitation of existing units or acquisition of existing units. Note that goals entered for ESG are only for homeless prevention and rapid re-housing. The HOME goals include multi-family and single family activities. HTF goals include the production of permanent supportive housing for chronically homeless individuals and families. Table 14 – One (1) Year Goals for Affordable Housing by Support Requirement One (1) Year Goals for the Number of Households to be Supported Homeless 750 Non-Homeless 0 Special-Needs 0 Total 750 Table 15 – One (1) Year Goals for Affordable Housing by Support Type One (1) Year Goals for the Number of Households Supported Through Rental Assistance 120 Production of New Units Rehab of Existing Units Acquisition of Existing Units Total 40 487 9 656 Discussion ADOH distributes approximately $20 million in HUD Formula grant funds, $3 million in HTF funds, $4.5 million in Continuum of Care funds, $140 million in LIHTCs, and $1.3 million in Section 8 funds impacting over 1,338 units affordable housing units annually. Over the life of the State’s FY2015-2019 Plan, the State will assist no less than 6,690 households throughout its jurisdiction, equating to approximately 1,409 households during this one (1) year Action Plan. Arizona Department of Housing 77 FY2016-2017 Action Plan AP-60 Public Housing - 24 CFR 91.320(j) Introduction The State will from time to time provide support and technical assistance to PHAs upon local request. Actions planned during the next year to address the needs to public housing While ADOH and its PHA Division do not own or manage any public housing, the PHA has monitoring and compliance oversight of approximately 114 federally-financed properties (through the competitively awarded Project-Based Contract Administration award from HUD), 186 Section 8 Housing Choice Vouchers, and approximately eighty-six (86) port-in vouchers. The Housing Choice Voucher Program (HCVP), administered by the agency, is an extremely small program confined to Yavapai County and one that requires in-kind contributions from the State to administer. ADOH does not collect this information from the public housing authorities that service the non-entitlement regions of the State and has no authority over their programs, service areas, or outcomes. Actions to encourage public housing residents to become more involved in management and participate in homeownership The State of Arizona will remain ready to assist any public housing agency in Arizona with technical assistance and planning to ensure they promote resident involvement and continue to address the needs for public housing in their respective jurisdictions. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Not applicable. Discussion Not applicable to State programs covered by this one (1) year consolidated Action Plan. Arizona Department of Housing 78 FY2016-2017 Action Plan AP-65 Homeless and Other Special Needs Activities – 91.320(h) Introduction Arizona developed a State Plan to End Homelessness that aligns with the objectives of the United States Interagency Council on Homelessness (USICH) and the Federal Plan to End Homelessness, “Opening Doors”. The Arizona Plan to End Homelessness focuses on five (5) goals: 1) end chronic homelessness; 2) prevent and end veteran homelessness; 3) continue work to prevent and end homelessness for families, youth, and children; 4) develop measurement standards, data collection, and accurate reporting systems; and 5) move from a homeless management system to a homeless prevention system. Describe the jurisdictions one (1) year goals and actions for reducing and ending homelessness including Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs HTF will help meet one (1) year goals by effecting the production of permanent supportive housing for chronically homeless individuals and families. All three (3) Continua of Care in Arizona have adopted the VI-SPDAT tool to effect a coordinated entry system to determine the needs and prioritize housing interventions and support services using a comprehensive universal assessment tool. For each region, the Continuum and service delivery systems, through contracts and MOU’s between community partners, utilize outreach teams, first responders, and crisis and medical agencies to reach individuals who are unsheltered. Special initiatives have been adopted through these community partners to respond to current priorities, which include ending veteran homelessness and ending chronic homelessness. The Arizona StandDown Coalition has been formed to share and spread resources to smaller communities for StandDown events to reach homeless veterans throughout the State. Larger initiatives are being led by counties and cities in the metropolitan areas of Phoenix, Mesa, and Tucson to focus on ending chronic homelessness. Addressing the emergency shelter and transitional housing needs of homeless persons During the 2016 Balance of State homeless street count, 2,957 individuals and members of families were identified as unsheltered. Sixty-five percent (65%) of those found living on the streets were single adults and over 700 of those unsheltered homeless were chronically homeless. Data shows that more beds and services need to be allocated to single adults, chronically homeless, families without children; and youth. The State of Arizona has adopted an aggressive rapid re-housing approach in order to move homeless individuals and families out of emergency shelters and into permanent housing, which will free up beds for those populations who are predominately unsheltered. State contracts for rapid re-housing emphasize priority targets including chronically homeless, veterans, youth between the ages of eighteen (18) and twenty-four (24), victims of Arizona Department of Housing 79 FY2016-2017 Action Plan domestic violence, persons exiting in an institutional setting, and those exiting a substance abuse program. All three (3) Continua are focusing performance measures on improving length of stay in order to encourage rapid re-housing and improve bed availability in those programs that provide immediate assistance to those currently living on the streets. A collaborative body of State, county and city governments, as well as service providers, is also exploring alternative "Low Demand" shelter alternatives in Maricopa County. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again The State of Arizona has developed a statewide plan to end homelessness which is driven by the goals and objectives listed below. From 2012 to 2015, the number of unsheltered homeless veterans has been reduced by seventy-eight percent (78%). The number of unsheltered chronically homeless individuals has been reduced by fifty percent (50%) during the same time period. The State has adopted a statewide common assessment tool and developed a statewide shared database of permanent supportive housing, affordable housing, and tax credit supported housing options. Through commitment to improve outreach and assessment tools, the State Homeless Coordination office fully expects to effectively end unsheltered homelessness for the remaining chronically homeless in Arizona. END CHRONIC HOMELESSNESS BY 2016: 1) Move 300 chronically homeless individuals or families into permanent housing each year for the next five (5) years; 2) adopt and implement statewide use of a common assessment tool to prioritize housing placement based on vulnerability; 3) support, monitor, and assess all pilots for centralized intake to prioritize chronically homeless individuals for placement and to evaluate outcomes; and 4) develop a statewide shared database of permanent supportive housing, affordable housing and tax credit supported housing options. PREVENT AND END VETERAN HOMELESSNESS BY 2015: 1) Insure all mainstream and community resources identify veteran status and connect veterans to additional veteran resources; and 2) target and prioritize use of Housing and Urban Development (HUD) VASH housing vouchers towards chronically homeless veterans. CONTINUE WORK TO PREVENT AND END HOMELESSNESS FOR FAMILIES, YOUTH, AND CHILDREN BY 2021: 1) Develop common reporting standards for family units versus beds to determine housing needs; 2) adopt common definition of homeless youth; and 3) add 300 units Arizona Department of Housing 80 FY2016-2017 Action Plan of permanent supportive housing to the housing system each year for the next ten (10) years. DEVELOP MEASUREMENT STANDARDS, DATA COLLECTION, AND ACCURATE REPORTING SYSTEMS BY 2013: 1) Organize a comprehensive statewide street and shelter survey to establish baseline data for future comparisons and research; and 2) establish common definitions, methodology, measurement tools, and reporting standards to be compiled into standardized reports to the Commission by the three (3) Continua of Care. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions) or receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The DES Homeless Coordination Office requires all sub-contractors to adhere to program goals and objectives including target populations to be served. Contracts require that at least sixty percent (60%) of all rapid re-housing and/or homeless prevention participants shall represent at least one (1) of the priority population criteria: 1) chronically homeless; 2) disabled; 3) experiencing substance abuse issues; 4) being "released from an institution”; 5) being released from a substance abuse facility; 6) aging or aged-out of child foster care; 7) domestic violence survivor; 8) youth eighteen (18) to twenty-four (24) years of age; 9) veterans; or 10) sixty-two (62) years of age or older. Sub-contractors are also required to adhere to standard performance measures and outcomes which consist of: 1) seventy-five percent (75%) of participants improve in overall Self Sufficiency Matrix score from participant entry to participant exit; 2) sixty percent (60%) of participants who exit the rapid re-housing program, exit to permanent housing during the program year; 3) seventy-five percent (75%) of rapid re-housing participants who exit the rapid re-housing program score a four (4) or better income section of the Self Sufficiency Matrix, 4) sixty percent (60%) of rapid re-housing participants meet at least one (1) of the priority populations criteria; and 5) forty percent (40%) of temporary emergency shelter clients exit to positive permanent housing situations during the program year. Discussion The adoption of the VI-SPDAT tool and ADOH’s subsequent ability to improve recipient proficiency with this tool has greatly improved Arizona’s adherence to its goals and has greatly improved data collection and reporting standards. Following this plan, Arizona is on track to prevent further veteran homelessness and end chronic homelessness. ADOH, in partnership with DES, is working in concert to plan, improve, and address services and housing for persons experiencing homelessness and those who are chronically homeless. Arizona Department of Housing 81 FY2016-2017 Action Plan AP-70 HOPWA Goals – 91.320(k)(4) One (1) year goals for the number of households to be provided housing through the use of HOPWA for: Short-term rent, mortgage, and utility assistance to prevent homelessness of the 45 individual or family Tenant-based rental assistance 30 Units provided in permanent housing facilities developed, leased, or operated 0 with HOPWA funds Units provided in transitional short-term housing facilities developed, leased, or 0 operated with HOPWA funds Total Arizona Department of Housing 75 82 FY2016-2017 Action Plan AP-75 Barriers to Affordable Housing – 91.320(i) Introduction Please refer to the State of Arizona 2015-2019 Analysis to Impediments Report available at https://housing.az.gov/. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment HTF will reduce barriers to affordable housing by producing the most difficult type of housing, which is permanent supportive housing for chronically homeless individuals and families. The State of Arizona will continue to fund education and outreach (E&O) throughout is Community Development Block Grant (CDBG jurisdiction as it has since 1994). ADOH presently contracts with a fair housing E&O provider to conduct E&O throughout the non-entitlement areas of the State. ADOH will conduct the following activities with same levels of frequency it has since 2006: ADOH will continue to ensure CDBG sub-recipients are trained in effective fair housing referral procedures and encourage them to report any concerns. ADOH will continue to provide trainings and other resources to communities throughout the State as the need arises so residents have the opportunity to learn about the benefits of affordable housing, diverse neighborhoods, and the State's fair housing obligations; and monitor current events throughout the state and proactively respond to situations, which may impact members of the protected classes. ADOH request for proposals (RFP) for housing and community development related projects and funding will require that proposals address how they will affirmatively further fair housing (AFFH) based on its impact to racial and ethnic concentrations of poverty and protected classes. Housing and community development projects funded by ADOH will include an AFFH plan that includes demographic data and maps to identify racial and ethnic concentrations or poverty in the residential areas impacted by the project. Specific activities that will be conducted to AFFH (i.e. Affirmative Marketing Plan; and all tax credit, HOME, and Housing Trust Fund projects) will be monitored to evaluate the performance of the projects fair housing goals. ADOH will require a mandatory comprehensive questionnaire with new questions about local zoning and land use laws' compliant with fair housing laws be filled out and submitted by all CDBG sub-recipients. The State will assess how the housing crisis and its aftermath has had an impact on communities within the State's jurisdiction and respond with appropriate projects, programs, and education outreach; continue to utilize the Councils of Government (COG) structure to monitor CDBG Arizona Department of Housing 83 FY2016-2017 Action Plan recipients and develop education and outreach strategies; create regional fair housing priorities, goals, and selection criteria for potential CDBG recipients; utilize information provided in the CDBG recipient surveys to monitor and update regional fair housing priorities and goals. Please refer to the State of Arizona 2015-2019 Analysis to Impediments Report available at https://housing.az.gov/. Discussion ADOH will undertake the following activities to alleviate barriers to fair housing and disparate impacts on low-income, financially troubled, disabled, or other vulnerable populations: FORECLOSURE ASSISTANCE: ADOH will invest funding to address the mortgage foreclosure crisis and other housing issues caused by economic distress. Through 2017, ADOH, in partnership with the Arizona Housing Finance Authority, will provide funding for direct financial assistance to aid Arizona homeowners avoid foreclosures by: 1) making housing counselors available to the public through a toll-free hotline; 2) providing in-depth foreclosure counseling; and 3) providing financial assistance in the form of principal reduction, second mortgage settlements, reinstatement, monthly mortgage payment assistance, or short sale assistance. ADOH will continue to invest in paid advertising and marketing efforts to ensure households experiencing the threat of foreclosure know about available programs and gain access to assistance. Outreach efforts will include billboards, English and Spanish radio, internet banner ads, bus shelter ads, electronic news messages through the Motor Vehicle Network, Spanish newspapers, ecumenical newspapers, televised telethons and direct mail campaigns. OFFERING MORTGAGE ALTERNATIVES TO FIRST TIME HOMEBUYERS: To assist first time homebuyers in Arizona in finding alternatives to predatory lending practices, the Arizona Housing Finance Authority (AzHFA) will offer low-interest mortgage products along with down payment/closing cost assistance and homebuyer counseling to promote homeownership in fourteen (14) counties in Arizona. ACCESS TO AFFORDABLE RENTAL OPPORTUNITIES: To assist low-income Arizonans in finding decent, affordable rental units throughout the State, ADOH sponsors a web-based search engine through socialserve.com, which provides information on affordable rental units financed by ADOH and other public funders. The search engine also allows for searches by certain ADA related accommodations for disabled renters. FAIR HOUSING ACTIVITIES: During its annual monitoring visits to the rental properties financed by the Department, ADOH will continue to check that a fair housing sign is visible in the property’s Leasing Office. ADOH will also inquire whether the property has had any fair housing complaints or legal actions against it. ANNUAL ARIZONA HOUSING FORUM: ADOH continues to host an annual statewide housing conference to promote affordable, fair housing choices throughout Arizona. During the Arizona Department of Housing 84 FY2016-2017 Action Plan event, approximately 400 attendees attend sessions on a myriad of topics ranging from best practices in development and design, to fair housing and addressing the housing needs of the homeless and special needs populations. COMMUNITY DEVELOPMENT BLOCK GRAN T PROGRAM (CDBG): The CDBG program provides oversight of and technical assistance to units of local government to assure compliance with fair housing regulations. To demonstrate compliance with Affirmatively Furthering Fair Housing, local governments must at a minimum: 1) adopt a Fair Housing Proclamation or Resolution annually; 2) display a fair housing poster in at least one (1) public area of the community’s administration building/office year round; and 3) undertake at least one (1) additional action. The additional action must be specifically designed to further fair housing and/or educate the public about fair housing laws. Further guidance is provided to units of local government in the State’s CDBG Administration Handbook, Section 4, available for download on the ADOH website. Additionally, units of local government receive a reminder each March that April is National Fair Housing Month and that they are required to demonstrate compliance annually whether or not they have open CDBG funded projects. Arizona Department of Housing 85 FY2016-2017 Action Plan AP-80 Colonias Actions – 91.320(j) Introduction According to Section 916 of the Cranston-Gonzalez Act of 1990, a “Colonias” is any identifiable community that: 1) is located within 150 miles of the border between the United States and Mexico, except within any standard metropolitan statistical area that has a population exceeding 1,000,000; 2) is designated by the State or county in which it is located as a Colonias; 3) is determined to be a Colonias on the basis of objective criteria, including the lack of potable water supply; lack of adequate sewage systems; and lack of decent, safe, and sanitary housing; and 4) is generally recognized as a Colonias before the enactment of the National Affordable Housing Act of 1990. HUD mandates the State expend at least ten percent (10%) of its CDBG project allocation in the areas designated as Colonias. Arizona has sixty-three (63) designated Colonias existing in the southern counties of Cochise, Gila, Graham, Greenlee, La Paz, Pima, Santa Cruz, and Yuma as well as on the Cocopah and Tohono O’odham Indian Reservation. The State of Arizona has a partnership with the regional Councils of Governments (COGs) in Arizona to provide both technical and administrative assistance to these CDBG eligible grantee communities. The State sets aside ten percent (10%) of its CDBG funds for infrastructure and housing activities within Colonias. Please refer to the following web page for the list of designated Colonias: https://housing.az.gov/sites/default/files/documents/files/Arizona%20Designated%20Colonias_ 0.pdf Actions planned to address obstacles to meeting underserved needs The largest obstacle to meeting underserved needs on Colonias is funding. ADOH will issue a funding notice, once every two (2) years, to solicit projects located in eligible, designated Colonias. All cities, towns, counties, and tribal reservations that contain either geographically defined neighborhoods or unincorporated communities designated as Colonias and that are eligible to receive CDBG Colonias Set Aside funding through ADOH are eligible to apply for these funds. Maricopa and Pinal Counties, as well as the communities and tribal reservations located within those counties, are excluded from eligibility for Colonias funding. Under this funding, ADOH is able to serve eligible designated Colonias in Pima County, although the county is not eligible to receive other CDBG funds from ADOH. Actions the state plans to take to reduce the number of poverty-level families State CDBG Colonia Set Aside funds primarily water and wastewater treatment as these have been identified as the highest priority issues affecting Arizona Colonias communities. Colonias funding is awarded through a competitive process once every two (2) years and allows potential for sufficient funding to complete very large projects. Scoring criteria emphasizes demonstrated Arizona Department of Housing 86 FY2016-2017 Action Plan need, poverty statistics, and whether the project will completely eliminate issues relating to water, wastewater, and housing within the Colonias. Addressing these issues improves sustainability and quality of life issues for residents who could not afford to pay increases in water or sewer service fees that would be required if the community were trying to fund improvements on their own. Actions the State plans to take to develop the institutional structure The State of Arizona has a partnership with the regional Councils of Governments (COGs) in Arizona to provide both technical and administrative assistance to these CDBG eligible grantee communities. Working with the Arizona Balance of State COC (which includes areas of the State where Colonias are common), ADOH encourages the publication of the availability of homelessness services. Families that are “doubled-up” or otherwise possibly at risk of homelessness will be provided information about available services in the areas closest to the Colonias. Specific actions the State plans to take to enhance coordination between public and private house and social service agencies The Arizona Department of Housing hosts the Arizona Housing Forum. The Forum is a two (2) day professional housing conference that studies recent trends and ideas in affordable housing, while addressing more common issues in discussion-oriented sessions. The Forum is wellattended (390 in attendance in 2014) and registrants represent a diverse cross section through government, non-profit, and for profit entities. Discussion The State began offering Colonias Set Aside funding through this competitive process combining two (2) years of Set Aside funds in 2010. Since that time, three (3) large scale projects have been awarded that will each positively affect thousands of Colonias residents. The State has determined this to be a successful implementation of its method for distribution for Colonias Set Aside funds and will continue this process in the future. Arizona Department of Housing 87 FY2016-2017 Action Plan AP-85 Other Actions – 91.320(j) Introduction There are several obstacles Arizona will face in implementing the five (5) year strategies. The limited amount of funds available to meet the many needs of Arizona residents is possibly the most significant barrier. Recent federal and State cutbacks in social services programs will limit the amount of assistance that can be provided over the next five (5) years. This will be offset somewhat by the availability of new HTF funding. There remains a number of significant obstacles to meeting underserved needs in Arizona: 1) rapid population growth; 2) inadequate funding to acquire and rehabilitate all existing housing units in need of repair; 3) lack of knowledge of social services and service providers in Arizona for low-income residents; 4) lack of funding to address the huge amount of unmet needs that exists for affordable housing, infrastructure and facility improvements, and social services; 5) absence of service providers: the geographically expansive service areas in rural Arizona make it nearly impossible for providers to maintain a consistent, physical presence in most communities; this is further complicated by the limited ability of many low-income residents to travel for services; 6) lack of capacity in existing agencies: many service providers experience higher than average attrition rates among their employees; recruitment and retention of staff continues to be a challenge; and 7) lack of consensus: stakeholders within a particular jurisdiction often do not agree on priority needs and this can lead to little action. Actions planned to address obstacles to meeting underserved needs The State will use the new HTF to provide permanent supportive housing for chronically homeless individuals and families. The State will continue to provide technical assistance to increase capacity of agencies or local governments implementing programs funded by ADOH. Additionally, the State will continue to be the lead agency for the Balance of State COC to encourage and develop the capacity of service providers in the rural parts of the State. Finally, the State will encourage its funded agencies and units of local government to seek other private or public funding opportunities to leverage sufficient funds to complete projects or provide services to a greater number of eligible beneficiaries. Actions planned to foster and maintain affordable housing ADOH will continue to foster and maintain affordable housing in Arizona through multiple programs designed to provide low- and moderate-income households with affordable and sustainable rental and ownership opportunities. HTF will be used to increase the number of housing units available to chronically homeless individuals and families. Actions planned to reduce lead-based paint hazards ADOH requires grantees to comply with the HUD lead-based paint regulations implementing Arizona Department of Housing 88 FY2016-2017 Action Plan Title X of the Housing and Community Development Act of 1992. These regulations cover the CDBG, HOME, ESG, and HOPWA programs, and identify the appropriate type of activity to control lead paint hazards in projects using federal funds. ADOH has adopted long-term goals to promote affordable housing and community development. These goals, as applied to lead-based paint hazards, become ADOH’s lead-based paint strategy. Arizona’s strategy objectives are: 1) collaborate with local cities and counties to reduce housing-related lead-based paint hazards, especially for low-income families and children; 2) encourage risk assessment for lead-based paint being part of every home inspection; and 3) refer families with children to Arizona Department of Health Services, Office of Environmental Health for blood testing if lead-based paint is found in units proposed for rehabilitation. The Arizona Department of Health Services maintains the lead exposure registry for Arizona. The program develops lead poisoning prevention programs, investigates cases with elevated blood lead levels, and conducts educational outreach activities. In recent years, ADOH has undertaken a wide range of activities to address the problem of leadbased paint in the housing stock. The Arizona Lead Poisoning Screening Coalition and the Arizona Department of Health Services recommends screening children six (6) years of age and younger according to the Childhood Lead Poisoning Targeted Screening Plan. These steps will hopefully prove important in assuring the long-term health and stability of lower-income children who are living in substandard housing. ADOH plans to fund lead-based paint hazard reduction primarily through housing rehabilitation programs for owners and renters. The State of Arizona will encourage training, education, and other resources related to lead based paint hazards, and will require that grantees and sub-grantees utilize staff and contractors that have the appropriate training and certification. The Arizona Department of Housing is a member of the Arizona Partnership for Healthy Communities, a body organized which meets quarterly to review current issues related to LBP and other health issues related to housing. Actions planned to reduce the number of poverty-level families ADOH has an anti-poverty strategy that is based on revitalizing the State of Arizona’s existing housing stock to provide safe and decent places to live and supporting community organizations and local agencies that provide various services that promote income and housing stability. The State will use the new HTF to provide permanent supportive housing for chronically homeless individuals and families. ADOH’s approach for reducing the number of poverty level families includes: 1) addressing the needs caused by poverty; 2) increasing the supply and availability of decent, safe, and affordable housing necessary for low-income families; and 3) increasing the effectiveness of existing programs through better collaboration and increased efficiency of implementation. While ADOH Arizona Department of Housing 89 FY2016-2017 Action Plan is focused on the provision of affordable housing and needed community development programs and projects, especially in rural areas of Arizona, ADOH works with and encourages job retention, training, and creation through the use of programs by other State agencies, local jurisdictions, and non-profit organizations. Further, recognizing the collaborative relationship between affordable housing and human, social, and supportive services, ADOH has established, and continues to strengthen, partnerships with the DES, the Community Services Administration, the Family Assistance Administration, the Aging and Adult Administration, the Arizona Early Intervention Program, the Arizona Department of Health Services, the Arizona Health Care Cost Containment System, the Arizona Department of Veterans Services, the Arizona Commerce Authority, and the Governor’s Office for Children, Youth, and Families. Actions planned to develop institutional structure ADOH is a department of Arizona State government. ADOH is headed by a Governor-appointed director who oversees all activities of the agency, including the provisions of this plan. The activities prescribed in the plan are implemented primarily by partners, including local governmental entities (towns, cities, counties), public housing authorities, non-profit and forprofit entities, and tribal entities. Awards of State and federal grants and loans are based on the ability of an entity to demonstrate the capacity to undertake eligible activities through a written application process. ADOH works in conjunction with the four (4) COGs to develop a plan for the targeting and distribution of CDBG funds. ADOH provides funding to non-profit agencies located in Arizona that serve low-income households. These non-profits provide assistance for affordable low-income housing to special needs and homeless populations. The private sector is an important collaborator in the services and programs associated with the federal grants for housing and community development. The private sector brings additional resources and expertise that can be used to supplement existing services or fill gaps in the system. Lenders, affordable housing developers, business and economic development organizations, and private service providers offer a variety of assistance to residents such as health care, small business assistance, home loan programs, and supportive housing, among others. The State of Arizona has twenty-two (22) federally recognized tribes located within the conformed boundaries of the State. The tribes within Arizona are vastly different from one another and are recognized as self-governing entities that regulate laws under their respective tribal jurisdictions. Tribes in Arizona vary in size from the largest federally recognized tribe, Navajo Nation, which is located in four (4) states that include Arizona, Utah, New Mexico, and Colorado, and totals sixteen (16) million acres and 280,000 in population. The smallest tribe in Arizona is the Tonto Apache, located in Payson, with a current land base of seventy-five (75) acres and a population of 122. Within Arizona, sixteen (16) tribes currently receive a formula-driven Arizona Department of Housing 90 FY2016-2017 Action Plan grant known as the Indian Housing Block Grant for development and maintenance of existing housing. The formula-driven grant was enacted in 1996 and is based on various factors that include population, poverty, current assisted stock, and overcrowding conditions. These funds are received on an annual basis by the tribe or tribal-designated housing entity and can be used for a number of activities. ADOH operates the Arizona Public Housing Authority (PHA). Information derived from operating the PHA provides an accurate and recent view of public housing needs and trends for which planning efforts can be designed to address. The responsibilities entail administering a Housing Choice Voucher Program (HCVP) for Yavapai County. HCVP provides rental subsidy payments for approximately 159 very low-income households. Of the 159 vouchers, seventy (70) are restricted to assist homeless veterans through the VASH program. ADOH works closely with the Veterans Administration Medical Center to identify those in need. The PHA also administers approximately eighty-six (86) portable vouchers for Section 8 participants porting in from housing authorities throughout the country. The Arizona PHA also has a competitively-awarded contract to operate the Section 8 project-based program throughout the State, which entails administering approximately 114 HUD-subsidized rental properties, comprised of over 8,000 rental units. Through this program, participating properties are subsidized, allowing very lowincome tenants to pay approximately thirty percent (30%) of their incomes toward rent. Actions planned to enhance coordination between public and private housing and social service agencies ADOH is committed to continuing its participation and coordination with federal, State, regional, and local agencies, as well as with the private and non-profit sector, to serve the needs of lowincome individuals and families in the community. The Arizona Department of Housing hosts the Arizona Housing Forum. The Forum is a two (2) day professional housing conference that studies recent ideas and trends in affordable housing, while addressing more common issues in discussion-oriented sessions. The Forum is well attended and registrants represent a diverse cross section through government, non-profit, and for-profit entities. Discussion Through the implementation of its programs, the State combats issues with underserved populations, reduces lead paint hazards, develops the capacity of service providers and subgrantees, addresses issues of poverty, and forms strong partnerships with private housing and social service agencies. ADOH is able to assess all of these needs through its planning efforts with the Balance of State Continuum of Care (BOSCOC), the rural COGs, Consolidated Plan hearings, the Arizona Commission on Homelessness and Housing, the ADOH Housing Forum, and through daily interaction with providers and industry professionals. ADOH requires strict adherence to performance standards, which ensures these multiple objectives are accomplished. Arizona Department of Housing 91 FY2016-2017 Action Plan Program Specific Requirements AP-90 Program Specific Requirements – 91.320(k)(1,2,3) Introduction The following is a description of the specific requirements for programs covered by this one (1) year consolidated Action Plan including CDBG, HOME, and ESG. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.320(k)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the 1,194,700 start of the next program year and that has not yet been reprogrammed. 2. The amount of proceeds from Section 108 loan guarantees that will be used 0 during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 3. The amount of surplus funds from urban renewal settlements. 0 4. The amount of any grant funds returned to the line of credit for which the 0 planned use has not been included in a prior statement or plan. 5. The amount of income from float-funded activities. Total Program Income: 0 1,194,700 Other CDBG Requirements 1. The amount of urgent need activities. 2. The estimated percentage of CDBG funds that will be used for activities that 0 70.00% benefit persons of low and moderate income. Overall Benefit - A consecutive period of one (1), two (2) or three (3) years may be used to determine that a minimum overall benefit of seventy percent (70%) of CDBG funds is used to benefit persons of low and moderate income. Arizona Department of Housing 92 FY2016-2017 Action Plan HOME Investment Partnership Program (HOME) Reference 24 CFR 91.320(k)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: ADOH will invest HOME only in accordance with 24 CFR part 92.205 funds in single-family housing rehabilitation in Arizona. A competitive advantage will exist in each NOFA for areas of the State that do not have access to other HOME funds CDBG funds. ADOH will invest HOME funds in rental development in all areas of the State. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: ADOH will not invest HOME funds in homebuyer activities. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds. See 24 CFR 92.254(a)(4) are as follows: Assistance to eligible beneficiaries is subject to recapture. The recapture period is based on the amount of State funds invested in the unit, as follows: State investment per unit of less than $15,000 is five (5) years; between $15,000 and $40,000 is ten (10) years; and over $40,000 is fifteen (15) years. New construction, regardless of amount, has a twenty (20) year affordability requirement. Recapture provisions are as follows: in the event the assisted property is transferred prior to the expiration of the applicable period of affordability, net proceeds shall be distributed as follows: 1) the Net Resale Proceeds for the property shall be determined; 2) the amount of State funds plus the amount of interest due (if any) shall be determined; 3) the borrower’s down payment, principal payments and the value of improvements as evidenced by receipts provided by the borrower shall be summed, and this shall be called Borrower’s Equity. The Net Resale Proceeds shall be distributed as follows: if the Net Resale Proceeds are sufficient to cover the ADOH investment, including any interest due and the Borrower’s Equity, the ADOH investment and any interest due shall be recaptured and the borrower shall be entitled to receive Borrower’s Equity and any amount remaining from Net Resale Proceeds after payment of the ADOH investment and any interest due and Borrower’s Equity. If the Net Resale Proceeds are not sufficient to repay the ADOH investment including any interest due and the Borrower’s Equity, the borrower shall be entitled to receive the Borrower’s Equity, and any amount remaining from Net Resale Proceeds, after payment of the Borrower’s Equity, shall be recaptured. In the event of foreclosure, transfer in lieu of foreclosure or assignment of an FHA mortgage to HUD, recapture provisions shall terminate. Arizona Department of Housing 93 FY2016-2017 Action Plan 4. Plans for using HOME funds to refinance existing debt secured by multi-family housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: ADOH does not use investment of HOME funds to refinance multi-family housing debt. Emergency Solutions Grant (ESG) Reference 24 CFR 91.320(k)(3) 1. Include written standards for providing ESG assistance (may include as attachment) The DES Homeless Coordination Office requires all sub-contractors to adhere to program policies and procedures in accordance with the federal HEARTH Act. In addition, subcontractors must adhere to the State of Arizona, DES written standards, and terms and conditions. Eligible activities include: 1) temporary emergency shelter; 2) rapid re-housing; 3) homeless prevention; and 4) street outreach. The target populations: at least sixty percent (60%) of all rapid re-housing and/or homeless prevention participants shall represent at least one (1) of the priority population criteria: 1) chronically homeless; 2) disabled; 3) experiencing substance abuse issues; 4) being "released from an institution”; 5) being released from a substance abuse facility; 6) aging or aged-out of child foster care; 7) domestic violence survivor; 8) youth eighteen (18) to twenty-four (24) years of age; 9) veterans; or 10) sixty-two (62) years of age or older. The sub-contractor shall provide all services in a culturally relevant manner for the population to be served; participate in the Coordinated Assessment System; maintain a case file for each participant with all required items as recommended by DES; maintain appropriate documentation of participant eligibility; ensure no income barriers are associated with initial eligibility for services and programs; provide Case Management services at least monthly and document progress toward independence; complete required Self Sufficiency Matrix in HMIS at program entry and exit; assist all participants to obtain mainstream services and benefits such as housing, health care, social services, employment, and education; attend at least seventy-five percent (75%) of Continuum of Care meetings annually. Sub-contractors are required to adhere to standard performance measures and outcomes which consist of: 1) seventy-five percent (75%) of participants improve in overall required assessment tool score from participant entry to participant exit; 2) sixty percent (60%) of participants who exit the rapid re-housing program exit to permanent housing during the program year; 3) seventy-five percent (75%) of rapid re-housing participants who exit the rapid re-housing program score at least a four (4) on the Self Sufficiency Matrix, 4) sixty percent (60%) of rapid re-housing participants meet at least one (1) of the priority populations Arizona Department of Housing 94 FY2016-2017 Action Plan criteria and 5) forty percent (40%) of temporary emergency shelter clients exit to positive permanent housing situations during the program year. Sub-contractors are required to submit monthly, quarterly, and annual program and financial reports: Monthly Reports: 1) copies of the completed Rapid Re-housing Eligibility Determination form for each participant with initial billing; 2) copies of all receipts and/or copies of checks with detailed costs issued for housing relocation and rental financial assistance for each rapid re-housing participant served; 3) Rapid Re-Housing Tracking Sheet with invoices; 4) accurate and complete contractor's invoice and statement of expenditures; Quarterly Reports: 1) On the 15th of the beginning of each quarter, provide a completed Temporary Emergency Shelter, Rapid Re-housing Data and Homeless Prevention Report of demographic and exit data; Annual Reports: 1) Funding Expenditure Report for the prior year; and 2) completed ESG report as required by DES. 2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system. In Arizona, the three (3) Continua of Care (Balance of the State, Phoenix/Mesa/Maricopa County and Tucson/Pima County) provide collaborative leadership and support in the design and implementation of a Coordinated Assessment System for individuals and families to access homeless assistance and services within their Continuum. These services consist of prevention and diversion, emergency shelter, transitional housing, rapid re-housing, and permanent supportive housing. Each Continuum has established a resilient system and process in accordance with the goals and objectives identified in the HEARTH Act. Although, the regions have unique and distinctive community needs and characteristics, each Continuum’s Coordinated Assessment System and design captures the core elements as recommended by HUD. These elements are comprised of centralized/multiple-entry access point(s); accurate and knowledgeable information about available services and programs; real-time awareness on program inventory, capacity, and availability; implementation of an effective referral and waitlist management process; a robust screening and assessment process using a universal assessment tool; and a comprehensive enrollment, admission, and decision criteria to identify appropriate intervention and practices. 3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations). ESG funding is allocated based on the percent of homeless served and counted, as represented in the annual demographics report and the annual Point In Time count, submitted to the Homeless Coordination Office each year by each Continuum of Care. The cumulative percent is then set as a target for the percent of total available funding to be awarded in each of the three (3) Continua of Care. Funds are then awarded through contracts with specific providers from each Continuum as long as there are enough providers who qualify for funding based Arizona Department of Housing 95 FY2016-2017 Action Plan on the RFP selection process. Contracts are awarded based on the needs of the service area and available service providers. The DES will award contracts through a competitive request for proposal (RFP) process. Proposals are reviewed by a panel comprised of internal staff, Continua of Care, and community partners. Proposals are assessed using the rating system published in each RFP. The rating system may include service methodology, experience and expertise, cost, and other factors deemed relevant. 4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG. The Homeless Coordination Office worked with Arizona State University to bring on board a formerly homeless intern to conduct focus groups with and compile a study of homeless and formerly homeless individuals in State funded emergency shelters, rapid re-housing, and SSVF programs. The intent of the study was to explore the experiences and needs of older adults experiencing homelessness in Arizona. The Arizona and the Aging Homeless Population was completed in April of 2015. Additionally, two (2) of the three (3) Continua of Care and the Arizona Coalition to End Homelessness have a formerly homeless person on their boards. 5. Describe performance standards for evaluating ESG. All service providers and agencies contracting with DES submit ESG program reports monthly and quarterly attached to fiscal claims for reimbursement that are designed to capture client data, fiscal expenditures billed, and services provided. At least once each year, DES will conduct desk reviews of the programs and at least once every two (2) years, a comprehensive audit and site visit will be conducted of the program and facilities. Upon completion of the review and audits conducted, each ESG provider will receive a written report, prepared with findings and recommendations for corrective actions if necessary, with specific deliverable dates for completing corrective actions. Additionally, sub-contracts with the State Homeless Coordination Office to provide homeless services include the following performance outcomes: o seventy-five percent (75%) of participants improve in overall required Self Sufficiency Matrix score from participant entry to participant exit; o sixty percent (60%) of participants who exit the rapid re-housing program exit to permanent housing during the program year; o seventy-five percent (75%) of rapid re-housing participants who exit the rapid re-housing program score at least a four (4) on the Self Sufficiency Matrix; Arizona Department of Housing 96 FY2016-2017 Action Plan o sixty percent (60%) of rapid re-housing participants meet at least one (1) of the priority populations criteria; and o forty percent (40%) of temporary emergency shelter clients exit to positive permanent housing situations during the program year. Discussion All programs administered by the State have written performance policies, criteria, and standards available for applicants (non-profit, for-profit, units of local government, service providers) to review and/or download from the ADOH and DES websites. In addition, these policies are included in the State's five (5) year Consolidated Plan which is also available for review or download from the ADOH website. Staff are available to provide technical assistance on an as needed or as requested basis. Arizona Department of Housing 97 FY2016-2017 Action Plan Attachments Arizona Department of Housing 98 FY2016-2017 Action Plan Citizen Participation Comments Arizona Department of Housing 99 FY2016-2017 Action Plan Arizona Department of Housing 100 FY2016-2017 Action Plan Arizona Department of Housing 101 FY2016-2017 Action Plan Arizona Department of Housing 102 FY2016-2017 Action Plan Arizona Department of Housing 103 FY2016-2017 Action Plan Arizona Department of Housing 104 FY2016-2017 Action Plan Arizona Department of Housing 105 FY2016-2017 Action Plan Arizona Department of Housing 106 FY2016-2017 Action Plan Grantee SF-424's and Certification(s) Arizona Department of Housing 107 FY2016-2017 Action Plan Arizona Department of Housing 108 FY2016-2017 Action Plan Arizona Department of Housing 109 FY2016-2017 Action Plan Arizona Department of Housing 110 FY2016-2017 Action Plan Arizona Department of Housing 111 FY2016-2017 Action Plan Arizona Department of Housing 112 FY2016-2017 Action Plan Arizona Department of Housing 113 FY2016-2017 Action Plan Arizona Department of Housing 114 FY2016-2017 Action Plan Arizona Department of Housing 115 FY2016-2017 Action Plan Arizona Department of Housing 116 FY2016-2017 Action Plan Arizona Department of Housing 117 FY2016-2017 Action Plan Arizona Department of Housing 118 FY2016-2017 Action Plan Arizona Department of Housing 119 FY2016-2017 Action Plan Arizona Department of Housing 120 FY2016-2017 Action Plan Arizona Department of Housing 121 FY2016-2017 Action Plan Arizona Department of Housing 122 FY2016-2017 Action Plan Arizona Department of Housing 123 FY2016-2017 Action Plan Arizona Department of Housing 124 FY2016-2017 Action Plan Arizona Department of Housing 125 FY2016-2017 Action Plan Arizona Department of Housing 126 FY2016-2017 Action Plan Arizona Department of Housing 127 FY2016-2017 Action Plan Arizona Department of Housing 128 FY2016-2017 Action Plan Arizona Department of Housing 129