Government

FY 2017 CDBG Plan

December 7, 2017

Executive Summary

AP‐05 Executive Summary ‐ 24 CFR 91.200(c), 91.220(b)

1. Introduction

   The City of Bessemer has developed a five year Consolidated Plan for Housing and Community Development Programs for program years 2015‐2019. This document comprises the planning and submission process for the Community Development Block Grant (CDBG). Inasmuch as an Annual Action Plan must be prepared for each year of the Consolidated Plan, the following includes the proposed FY2017 Action Plan, which outlines the City’s Economic Development and Community Development needs and strategies relative to CDBG entitlement funds for FY2017 of $515,279.00, and projected Program Income of $275,332.00. Copies of the City’s 2015‐2019 Consolidated Plan for Housing and Community Development Programs, and FY2017 Action Plan will be available for inspection in the City’s Community Development Department, 1700 3rd Ave. North, Bessemer, Alabama, Monday through Friday, except legal holidays, from 8:00 a.m. to 4:30 p.m. The Economic and Community Development Department of the City of Bessemer served as the lead agency during the development of the FY2017 Consolidated Plan and Action Plan. Consolidated Plan rules developed by the U.S. Department of Housing & Urban Development (HUD) require all jurisdictions to consult and coordinate with appropriate agencies, and among its own departments, to assure that its Consolidated Plan is a comprehensive document that addresses statutory purposes. In an effort to meet these and other requirements in the development of its FY2017 Action Plan and Consolidated Plan, the City of Bessemer’s Economic and Community Development Department worked with the Bessemer Housing Authority to develop statistical information regarding public and assisted housing and a number of other agencies mentioned throughout this document relative to their expertise.

2. 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 City’s Community Development Objectives include the utilization of CDBG funds for: 1) Public Facilities, and Public Services to improve the general quality of life in the community, and 2) To foster neighborhood stability through Historic Rehabilitation, Housing Rehabilitation, Reconstruction, Permanent Relocation, Temporary Relocation and Refinancing with the goal of increased housing production and home ownership for families at and below low‐to‐moderate income levels., and 3) To utilize Economic Development Loans and Grants to encourage business development, slum and blight

   removal and job creation. The projected use of funds stated herein has been developed so as to give maximum priority to activities that will benefit families at, and below, the low‐to‐moderate income level or aid in the prevention or elimination of slums and blight. In addition, the projected use of funds is consistent with the City’s established strategy of stabilizing the City’s housing stock and reversing negative trends associated with urban decay and blight. The City’s strategy for community development has three basic goals:1)To improve neighborhood stability through physical improvements and housing rehabilitation; 2) Improve the economic life of the City by encouraging business development and jobs, and 3) To cause increased production and home ownership for families at all income levels at or below the low to moderate income level. The City intends to continue its efforts to obtain available federal, state, local, and private funding, to provide for community wide improvements in each of the areas outlined above in as many communities and neighborhoods as funding permits. Of the formula grant programs the City only receives CDBG funding. Therefore, this document only relates to CDBG Entitlement funds and Revolving Loan funds. However, the City is investigating the possibility of an ESG program for the direct benefit of the homeless in concert with the local continuum of care and the possible use of CDBG funds in that area of service.

3. Evaluation of past performance

   This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

   The City of Bessemer has a large low and low to moderate income elderly population. As a result there is great need for home repairs related to the needs of the elderly and disabled. The focus of the FY2015 and FY2016 Action Plans was to address the needs of the elderly relative to housing with a focus on repairs that met the definitions of the American’s With Disabilities ACT. The performance of the City relative to the elderly was accomplished in the main by three programs: The Deferred Loan

   program, the Rehabilitation Loan program and the Emergency Grant program. In addition to those programs the City utilized its Housing Revolving Loan Fund to provide funding for its Buy/Rehab/Sell program and Rehabilitation/Refinance program to make significant rehabilitation possible for several new and existing homeowners. The necessity of repaying a large Section 108 Loan greatly impacted the availability of CDBG funds for housing programs. However, the Emergency Grant met the needs of many citizens and a back log of applicants exists relative to the funds available. The City utilized significant un‐ programmed funds from prior years to pay most of the remaining debt from a $4,000,000.00 Section 108 loan and paid that loan off with $22,000.00 in CDBG Entitlement funds in FY2016. The payoff of this Section 108 note freed over $300,000.00 in CDBG Entitlement Funds the City had been forced to commit from its CDBG grant each year since 2009. With the elimination of the Section 108 Loan as a major expense, using un‐programmed funds from prior years, more CDBG funds will be targeted to the Emergency Grant program. The City’s new partnership with Habitat for Humanity is expected to allow for service to more elderly citizens by removing blight and improving neighborhoods through Reconstruction and Rehabilitation. The City did not utilize CDBG funds during FY2015 or FY2016 for Clearance. However, the City provided $250,000.00 in General funding for clearance activities in both

   fiscal years. The decision by the City to address Clearance with General Funds and a grant through a partnership with Habitat for Humanity will free CDBG funds for use in both Housing and Parks and Recreation. The City was successful in the utilization of both a Buy/Rehab/Sell and Rehabilitation/Rehab program. Unfortunately these programs are more expensive on a per unit basis than standard rehabilitation programs and lower the number of participants who can be served. Therefore, the City will continue to focus on the Rehabilitation Loan program for significant rehab needs and Emergency Grants for medically related repairs. The City administered an Economic Development/Job Creation program during the period of the FY2015 and FY2016 Action Plan. The primary goal of Economic Development Loans is job creation. The City ran a successful, ongoing summer youth program called Camp Bessemer that was funded jointly from general funds and CDBG Public Service funds. The City plans to continue this program throughout the period of the Consolidated Plan. The City has been successful in many Public Facility projects. The City plans to continue Park improvements, and recently completed a state of the art Re‐Cycling center it budgeted $100,000.00 for in prior program years. The Recycling Center involved the use of State Grant funds, City funds and CDBG funds.

4. Summary of Citizen Participation Process and consultation process

   Summary from citizen participation section of plan.

   The City of Bessemer has undertaken, throughout the development of its FY2017 Action Plan and 2015‐ 2019 Consolidated Plan, an open, credible, and broad‐based effort to involve and solicit the participation of community and neighborhood leaders, and residents of their needs and the types of services that they would like to see established or improved throughout the City. In an effort to broaden public participation in the development of the FY2017 Action Plan, the City held three public hearings for the Citizens of Bessemer and a hearing befor the Bessemer City Council. The purpose of the hearings was to obtain comments and proposals for the use of the City’s projected FY2017 Consolidated Formula Allocation and to obtain the views of citizens, public agencies, and other interested parties on the housing and community development needs of the City. Citizens were also afforded the opportunity to

   1) identify housing and community development needs and priorities; 2) review proposed uses of funds; and 3) comment on, and review the City’s program performance. All comments, priorities, and proposals received were considered in the development of the City’s FY2017 Action Plan.

5. Summary of public comments

   This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

   Public comments during the open City Council meeting included support for Park improvements and support for matching funds to support transportation studies that could lead to the construction of a new transportation hub in the downtown area. Public Facilities projects for the paving of streets was also advocated. There was also support for a large, annual Public Facilities and Park projects in each City neighborhood. It was advocated that the City undertake one major project per year per Council District

   rather than several smaller projects scattered over all seven Council Districts. There were favorable comments relative to efforts to remove slum and blight in the National Historic District and support for activities that would revitalize downtown Bessemer.

6. Summary of comments or views not accepted and the reasons for not accepting them

   No views or comments were rejected. All comments were considered for present and future Action Plans.

7. Summary

The City of Bessemer, over the course of FY2017 will continue to focus on the needs of housing for the elderly with new CDBG grant funds while continuing to provide loans to assist in the repair of existing housing stock through its revolving loan fund. In addition, the City has committed CDBG funds for Parks and Recreation and for Public Services that enhance the educational and employment opportunities of the City’s youth. It is anticipated that a partnership with Habitat for Humanity will also allow the City to undertake a greater number of housing projects with both its CDBG grant funds and revolving loan funds. The City of Bessemer utilizes a variety of community planning sources, stakeholder input, and program performance from prior years for the planning and development of its Consolidated Plan and Annual Action Plans. The essential purpose of the Consolidated Plan and all subsequent Annual Action Plans is to provide a guide for the usage of the limited funds available and to focus on projects and objectives that will result in the greatest positive impact possible on the community.

Annual Action Plan 5

2017

PR‐05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan

Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Table 1 – Responsible Agencies

Narrative (optional)

The City of Bessemer’s Department of Economic and Community Development prepared this Action Plan. The Department is also responsible for the execution, design and management of all CDBG programs. The City cooperated with the Bessemer Public Housing Authority in development of Fair Housing policies, practices and goals and is cooperating with the One Roof organization to study the need for ESG funds, their use, and possible policies and practices relative to the needs of the homeless. The Bessemer Public Housing Authority is the Lead Agency in administering the City’s Section 8 and Public Housing Programs. One Roof is the Lead Agency in the Continuum of Care in Jefferson County and the municipalities therein.

Consolidated Plan Public Contact Information

Annual Action Plan 6

2017

AP‐10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction

   The City of Bessemer through Department of Economic and Community Development has endeavored to consult with public and private agencies at every level to develop the FY2017 Action Plan. Of particular importance is the Bessemer Public Housing Authority, which works very closely with the Department of Economic and Community Development. The City consulted with the Bessemer Public Housing Authority relative to the leveraging of federal funds for housing, Housing programs in

   General and to the provision of educational and Public Services for the citizens of Bessemer. The City has also consulted with the Jefferson County Community Development Department relative to disaster relief and housing. The City has consulted with Habitat for Humanity relative to the needs of first time home buyers and blight removal throughout the City. The City also consulted with Habitat for Humanity relative to reconstruction and rehabilitation programs. The City consulted with the “One Roof” organization relative to the needs of the homeless. The City also consulted with members of the faith based community to determine the needs and priorities that should be established relative to housing rehabilitation. The City consulted with the Alabama Department of Public Health in its design of Lead Based Paint programs and the Foundry relative to the homeless and other needs including services related to drug addiction. In addition the City consulted with UAB West relative to the needs of the disabled and the delivery mechanisms associate with the Emergency Housing Repair Grant program.

   Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))

   The City of Bessemer, through its Department of Economic and Community Development has formed a partnership with the Bessemer Public Housing Authority that has proved to be successful in bringing more and better housing services and opportunities to the citizens of Bessemer. In 2009 the City and the Bessemer Public Housing Authority successfully partnered to win an NSP 1 grant. The City and the Bessemer Public Housing Authority partnered in 2015 to apply for funds through the National Resilience Grant competition. The City also partnered with the Jefferson County Community Development Department in its application for the National Resilience Grant competition. The City has partnered with the Bessemer Public Housing Authority to provide educational opportunities relative to health and housing to the citizens of Bessemer. The City has also partnered with the Bessemer Public Housing Authority to work with them on a program to transition public housing residents to privately owned housing through its CDBG Housing program. The City has worked with UAB Medical Center West to provide assistance to individuals who qualify for the City’s CDBG funded Emergency Grant program. The City has worked with the Alabama Department of Economic and Community Affairs to administer an NSP grant. The City has partnered with the Alabama Department of Public Health and the Environmental Protection Agency to sponsor seminars on Lead Based paint for both citizens and contractors. The City has also worked with the JCCEO to help it identify eligible participants in Bessemer to participate in their

   “Weatherization” program. To date approximately 300 residents of the City of Bessemer have been able to take advantage of the Weatherization Program.

   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 City is working with the “One Roof” organization to develop policies and practices to address the needs of the homeless and to apply for ESG funding. One roof has identified 100 chronically homeless persons within the City of Bessemer. Of those persons, many are part of homeless families. The City and One Roof are working to develop programs that can provide houses for these families. The City and One Roof hope to establish a relationship that will allow the City to acquire ESG funding whereby One Roof will serve as a sub‐grantee to assist in administering those funds.

   Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area 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 City does not receive ESG funds. However, the City is working with the “One Roof” organization to develop policies and practices to address the needs of the homeless and to apply for ESG funding. One roof identified approximately 100 homeless persons within the City of Bessemer in 2016. Of those persons, many are families. The City and One Roof are working to develop programs that can provide houses for these families. The City and One Roof hope to establish a relationship that will allow the City to acquire ESG funding whereby One Roof could serve as a sub‐grantee to assist in administering those funds. The City has consulted with One Roof to determine the number of homeless and need for services for the homeless in Bessemer. The City does not now receive ESG funding.

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities

Annual Action Plan 8

2017

Table 2 – Agencies, groups, organizations who participated

Identify any Agency Types not consulted and provide rationale for not consulting

Specialized Mental Health Facilities, Foster Care and Corrections programs were not consulted. However, One Roof and the Foundry address all aspects of Homelessness and it is believed they have the programs, knowledge and expertise to advise on homelessness in a universal sense.

UAB West was consulted and they do provide information to the City relative to Families, the Disabled and Youth that the City can assist through housing programs that can mitigate homelessness.

Other local/regional/state/federal planning efforts considered when preparing the Plan

Table 3 – Other local / regional / federal planning efforts

Narrative (optional)

AP‐12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal‐setting

The City of Bessemer has established a Citizen Participation process that comports with all HUD rules and regulations. The purpose of the process, relative to CDBG, is to assure that citizens, to the greatest extent possible, have a voice in program design and expenditure goals and targets. Three meetings were held on July 12 th , July 13th and July 17th of 2017, to allow citizens to provide input relative to the Action Plan for FY2017. Citizens were encouraged to comment on all aspects of the CDBG program and to indicate the programs they would like to see in place in the Consolidated Plan.

Citizen Participation Outreach

Table 4 – Citizen Participation Outreach

Expected Resources

AP‐15 Expected Resources – 91.220(c)(1,2)

Introduction

The City of Bessemer’s Economic and Community Development Department manages the CDBG Entitlement grant and a Revolving Loan fund for Housing and for Economic Development. The City recently partnered with Habitat for Humanity to implement a significant blight removal program that, unlike standard Clearance programs, will provide buildable lots for City housing programs. The City is also working with FEMA to ascertain the possibility of a significant permanent relocation program for properties in a problematic flood plain. CDBG Entitlement grants cuts in recent years have resulted in staff reductions and in the refocusing of housing programs involving grants for emergency medical issues, but the use of revolving funds in concert with the partnership with Habitat for Humanity offer the opportunity to leverage funds and maintain

services at an acceptible level.

Anticipated Resources

Table 5 ‐ Expected Resources – Priority Table

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied

Annual Action Plan 23

2017

If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan

It is anticipated that the partnership with Habitat for Humanity will provide numerous buildable lots for reconstruction purposes within three years. The City does not own buildable property at this time. The City reprocesses foreclosures as necessary to meet the needs of low to moderate income individuals.

Discussion

Annual Action Plan 24

2017

Annual Goals and Objectives

AP‐20 Annual Goals and Objectives

Goals Summary Information

Table 6 – Goals Summary

Goal Descriptions

Annual Action Plan 28

2017

Projects

AP‐35 Projects – 91.220(d)

Introduction

The City of Bessemer employs a comprehensive housing program. The housing program includes both loans and grants. In addition to housing the City has an Economic Development Loan program funded through a CDBG related Revolving Loan Fund and a grant program for slum and blight removal relative to historic rehabilitation in the commercial area of the National Histric Distrct. The City plans to conduct improvements at all City Parks over the next three years with the use of both federal and local funding. The City recently completed a new Recreation Center and a new City Hall utilizing City funds. The City has a long established summer youth jobs and training program called Camp Bessemer that is paid for by City funds and CDBG Public Service funds. The City irecently completed a project to create a state of the art Recycling Center. The City plans an extensive upgrade to signage in the community using both City and CDBG funds. And the City contemplates the creation of a fund focusing on first time home ownership.

Projects

Table 7 ‐ Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs

Decent, safe and sanitary housing for the elderly and disabled is a priority need in Bessemer. Transportation continues to be a priority need for both employment and daily activities. City Parks are a priority given the usage levels of existing parks. Funding availabity continues to be the primary obstacle to addressing underserved needs.

Annual Action Plan 30

2017

AP‐38 Project Summary

Project Summary Information

Annual Action Plan 31

2017

AP‐50 Geographic Distribution – 91.220(f)

Description of the geographic areas of the entitlement (including areas of low‐income and minority concentration) where assistance will be directed

All CDBG programs of the City of Bessemer are designed to serve the City as a whole. The City, as a whole, qualifies relative to low‐mod service based on the income levels of the citizens of Bessemer. Over 70% of the City’s population falls below the low‐to‐moderate income level with over 50% in the very low income category. All areas of the City are addressed because all areas are populated by those at or below the low‐to‐moderate income level. The Historic Facade Grant program is designed to impact the National Historic District, but it also applies to any structure in the City listed on the National Historic Register.

Geographic Distribution

Table 8 ‐ Geographic Distribution

Rationale for the priorities for allocating investments geographically

The need for programs that comport with the National Objective of the Community Development Block Grant program, throughout the City of Bessemer, are great. The City directs most of its funding toward the elderly and disabled and seeks to help those most in need of help. Therefore, the City has designed its program on a City Wide basis.

Discussion

The same basic needs in housing, Parks and Public Facilities exist throughout Bessemer. Of great concern is a large concentration of substandard housing located in a flood plain called the Pipe Shop. Houses in the area are generally owned by the elderly and are not practical to repair given the constant threat of water damage and the relative value of the property. The City would like to develop a multi‐

year, permanent relocation program for the residents of the flood zone, demolish the substandard housing and create green ways, but funding levels for CDBG have dropped each of the last three fiscal years making such a project impossible without grants from other sources like FEMA.

Affordable Housing

AP‐55 Affordable Housing – 91.220(g)

Introduction

The City has a comprehensive housing program design. The only limit to the program relative to service to the citizens of Bessemer is funding. Funding for housing programs is broken down into two sources. CDBG Entitlement funds are used for the Emergency Housing Repair Grant program and Revolving Loan funds are used for projects involving loans for Housing Rehabilitation, the Buy/Rehab/ Sell Program, the Refinance/Rehabilitation program, Deferred Loan Program, Reconstruction Program and others described in the attached Action Plan Narrative. The City seeks to leverage its CDBG funds by forming partnerships with agencies like Habitat for Humanity, the United Way, the Veteran’s Administration, the Bessemer Public Housing Authority and One Roof.

Table 9 ‐ One Year Goals for Affordable Housing by Support Requirement

Table 10 ‐ One Year Goals for Affordable Housing by Support Type

Discussion

Emergency Housing Repair Grants are designed to facilitate housing repairs related to the disability or medical condition of the owner. They may also be used to address health and safety related repairs. Housing Rehabilitation loans are a broad category of programs designed to bring houses to a CODE conforming condition within a structure that is affordable for low to moderate income persons. Please see the attached narrative describing all Housing related programs for further details.

AP‐60 Public Housing – 91.220(h)

Introduction

The Housing Authority of the City of Bessemer (BHA) manages 1,070 public housing rental units at seven

(7) AMPS and administers 473 Section 8 vouchers and 70 VASH vouchers. In addition, BHA manages one

1. bond financed 120 unit Senior Complex and a new 198 unit RAD Multifamily. The first of the developments was built in 1976 and the last was built in 1998. Because of various changes in federal housing policy, it is imperative that BHA engage new comprehensive strategies to accomplish its mission:

   The Mission of the Housing Authority of the City of Bessemer is to increase the supply of, and maintain existing affordable rental housing; to encourage homeownership for low‐income households and to promote training, educational opportunities and asset independence in a way that improves the health and civic and community vitality of Bessemer, Alabama.

   Actions planned during the next year to address the needs to public housing

   To pursue varying and flexible partnerships and funding opportunities to develop additional affordable housing both for rental and homeownership. Increase efforts to broaden the BHA Commissioners policy making ability through information sharing, training and workshops culminating with the creation of an Annual Board/Staff Strategic Planning Workshops. Develop an enhanced real estate Asset Management model to provide for the direction of capital funds in a rational manner, including the potential submission of the Capital Funds Financing Program (CFFP) application. Focus and expand the current Family Self Sufficiency program with an emphasis on educational advancement, homeownership training, job training and asset independence. Develop additional partnerships with other authorities, municipalities, private entities, financial institutions to leverage funding for the benefit of residents and communities. Explore Section 32 Public Housing Homeownership and other public/private mini neighborhood small ownership opportunities. Develop a lease/purchase program for the purpose of extending low‐income homeownership for residents who otherwise are unable to purchase at present, but will be able to in the next few years in conjunction with the City of Bessemer’s Community Development Plans. Increase awareness of the impact of Green Energy Conservation; develop cost saving measures and public/private partnerships to enhance energy efficient developments. Initiate at least one (1) new affordable housing development with an emphasis on creating an affordable, mixed‐ financed housing community at Hillside; apply for Tax Credits from the Alabama Housing Finance Authority and other private financings. Expand efforts of the Bessemer Housing & Development Corporation, a BHA non‐profit instrumentality formed in 2009 to impact neighborhood revitalization throughout the City of Bessemer. Strengthen program operations and fiscal management with the goal being High Performer designation in public housing, and continue to expand all aspects of Voucher Management included in the 2009 High Performance Rating.

   Actions to encourage public housing residents to become more involved in management and

   participate in homeownership

   The Bessemer Public Housing Authority has a program whereby one Public Housing resident sets on the Housing Authority’s Board of Directors. The Bessemer Public Housing Authority has also established a program designed to help transition Public Housing residents into homeownership. The program teaches various financial and life skills necessary to become a homeowner. The City of Bessemer cooperates in this effort to assist in the process when possible. The Agency will expand its FSS program to facilitate a Homeownership program for both Public Housing and Housing Choice Voucher

   residents. The PHA will also develop a Lease Purchase Program for qualified residents and other income eligible.

   If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance

   NA

   Discussion

   The Mission of the Housing Authority of the City of Bessemer is to increase the supply of, and maintain existing affordable rental housing; to encourage homeownership for low‐income households and to promote training, educational opportunities and asset independence in a way that improves the health and civic and community vitality of Bessemer, Alabama.

   AP‐65 Homeless and Other Special Needs Activities – 91.220(i)

   Introduction

   The City of Bessemer receives no ESG funding or funding of any type designated to address the needs of the homeless. The City is considering application for ESG funds. The City does use CDBG funds through its Emergency Housing Repair Grant Program to conduct repairs that would allow a disabled person to continue living in their home. However, the City does work with agencies like One Roof, the Foundry, the Veteran’s Administration and the Bessemer Public Housing Authority to combat Homelessness.

   Describe the jurisdictions one‐year goals and actions for reducing and ending homelessness including

   Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs

   The City is working with One Roof and The Foundry to establish a working relationship that will facilitate outreach to the homeless. It is estimated that the total number of homeless in the City at any given time is 100. However, a review of the situation relative to each of the 100 presently identified shows all

   but about three percent are sheltered at any given time. This is a tribute to the non‐profits and the Continuum of Care.

   Addressing the emergency shelter and transitional housing needs of homeless persons

   The City has no funding for emergency shelter and transitional housing needs. However, the City is working with One Roof to investigate the possibilities of ESG funding and the use of houses in the City’s inventory that could be used to provide housing for the homeless on both a temporary and permanent basis.

   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 City provides low cost loans to repair houses under its Buy/Rehab/Sell program that could be used to assist a qualifying homeless person. The City works with the United Way of Central Alabama to assist those with credit problems and place them in a plan that can lead to home ownership. In addition the existing housing repair programs of the City act to prevent families from becoming homeless.

   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 CDBG funded Emergency Housing Repair Grant program is designed to remove barriers associated with the disabilities and medical condition of homeowners. In many cases housing is not accessible for those with disabilities. Eliminating those accessibility issues can allow a person to live in a house that would not work for them otherwise. The City works with UAB West to address the needs of the disabled or those with long term medical issues, when they are discharged from UAB West. These programs often make it possible for an elderly or disabled person to continue living in their own home.

   Discussion

   The City would be interested in the possibility of ESG funding and using some of its housing inventory for the homeless if arrangements could be made with the Continuum of Care and local service providers to manage homeless outreach.

   AP‐75 Barriers to affordable housing – 91.220(j)

   Introduction:

   There are no local or state level policies impacting affordable housing and residential development. The City of Bessemer follows standard housing CODES, and the guidelines of the County Health Department relative to residential housing. Fire protection is maintained at the highest possible level as is police protection. As a result insurance rates are reasonable. Property tax rates are among the lowest in the country.

   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

   No action is necessary relative to public policy. However, the City has implemented plans to provide more and better housing for low to moderate income individuals through the use of CDBG funds.

   Discussion:

   Homeownership is more achievable in the Southeastern United States than any other area in the nation. Local, County and State government policies in Alabama encourage homeownership. Building CODEs are industry standard as is zoning. Fees and charges associated with new construction and rehabilitation are reasonable and have no appreciable effect on homeownership opportunities. The cost of housing in Alabama is far lower than in many other areas and it follows that families can more readily afford to buy houses in the State of Alabama than most other areas of the USA.

   Please see the attached copy of the Fair Housing Plan for FY2017 in the unique attachment section of this document.

   AP‐85 Other Actions – 91.220(k)

   Introduction:

   The basic premise behind the design of the City of Bessemer’s Consolidated/Action Plan is to provide, as closely as possible, a holistic approach to the needs of the low to moderate income persons in the community. Each program under the housing umbrella, whether federally funded or funded by the CIty itself works to provide clean and safe neighborhoods, Housing Stock revitalization and compliance with the Americans With Disabilities Act to improve the quality of life of those in need. In addition the City uses CDBG funds to provide loans to local business with the National Objective of creating jobs, and Grants to remove Slum and Blight while promoting historic restoration in and economic development. Employment, like many of the functions undertaken by the City through its CDBG program is a key factor in the ability to own a home. Fair Housing is a focus of the City and addressing problems associated with transportation and economic development are important to maximizing the opportunity for home ownership in the City of Bessemer.

   Actions planned to address obstacles to meeting underserved needs

   The City has partnered with Habitat for Humanity to remove slum and blight throughout the City. The City also plans to partner with Habitat for Humanity to facilitate Housing Reconstruction projects that will revitalize neighborhoods and improve the opportunity for the citizens of Bessemer to own their own homes. The ongoing partnership with the Bessemer Housing Authority should begin to provide housing ownership opportunities to individuals who are working to transition from public housing to homeownership. The City will continue to provide grants and loans to make house more livable and to give families an opportunity to realize the advantages of homeownership.

   Actions planned to foster and maintain affordable housing

   The City will continue loan and grant programs designed to remove barriers to residents and to bring houses into a CODE conforming condition. These programs have proven to allow families to have a higher quality of life in a safer environment. As mentioned above, the City will partner with other agencies like Habitat for Humanity and the Bessemer Public Housing Authority to reduce duplication of effort while facilitating the opportunity for citizens to own their own home.

   Actions planned to reduce lead‐based paint hazards

   The City of Bessemer tests all houses built before 1979 for lead based paint if a painted surface will be disturbed in the rehabilitation process. The City also routinely tests if projects exceed $5,000.00 in total cost. The City maintains a policy that lead based paint must be abated if addressed. The City has sponsored, and will continue to sponsor, public meetings and seminars with the Alabama Department of Health to inform the public of the dangers of lead based paint and to educate contractors in required procedures. All participants receive a booklet explaining the dangers of lead based paint. The City

   follows all EPA and HUD regulations relative to the treatment and abatement of lead based paint. Lead based paint is always a consideration in the rehabilitation process.

   Actions planned to reduce the number of poverty‐level families

   Job creation through the City’s Economic Development Program and well as the expansion of the tax base through economic development will serve to reduce poverty levels. Housing programs, with their focus on energy efficiency and cost reduction, through programs like the Rehabilitation Loan Program known as Buy/Rehab/ Sell and Refinance/Rehabilitation work to make housing safer and more affordable.

   Actions planned to develop institutional structure

   The City of Bessemer and other community development and housing organizations have achieved institutional structure through their commitment to community involvement and continued support. Community development and housing initiative programs are administered through the Department of Economic and Community Development. This also allows for continued institutional knowledge with respect to successful means and tactics in the preparation and administration of grants and grant applications. The City of Bessemer and the Bessemer Public Housing Authority have partnered in recent years to ensure the continued success and growth of the community as a whole. Through these collaborative efforts, an emphasis is placed on the needs of the community while avoiding duplicated efforts by the individual entities. These collaborative efforts have proven to be successful and the City looks to partner with other entities to achieve the same goals and will continue to strive for improved institutional structure.

   Actions planned to enhance coordination between public and private housing and social service agencies

   The City is committed to focusing efforts to ensure the coordination of stakeholders and continual improvements to the programmatic delivery system. The City will continue to look for ways to enhance coordination in the implementation of the Consolidated Plan through its established partnerships with Community and Development Services, the Bessemer Public Housing Authority, and the Jefferson County Community Development Department.

   The City will work with One Roof, the Continuum of Care to promote a communitywide commitment to the goal of ending homelessness; to seek out funding for efforts that seek to address homelessness in Bessemer and to support methods to assist in the rehousing of homeless individuals. The City will continue its commitment to the development of a viable Economic Infrastructure through the support of Incentive Programs Economic Development Loan Program and other incentives. The City is also committed to continuing the implementation of its Camp Bessemer program to promote economic opportunity for Bessemer Youth. The City will continue to coordinate with local stakeholders to support

   economic development through the creation of jobs and educational opportunities for neighborhood residents living throughout the City.

   Discussion:

   Program Specific Requirements

   AP‐90 Program Specific Requirements – 91.220(l)(1,2,4)

   Introduction:

   The City of Bessemer only receives CDBG funding. All funding mentioned in this Action Plan are derivatives of CDBG Entitlement funds or CDBG related Housing Revolving Loan funds.

   Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(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 start of the next program year and that has not yet been reprogrammed 0

   2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee’s strategic plan. 0

   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 planned use has not been included in a prior statement or plan 0

   5. The amount of income from float‐funded activities 0

Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit ‐ A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate

income. Specify the years covered that include this Annual Action Plan. 100.00%

Emergency Solutions Grant (ESG) Reference 91.220(l)(4)

1. Include written standards for providing ESG assistance (may include as attachment)

2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.

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).

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.

5. Describe performance standards for evaluating ESG.

Housing Trust Fund (HTF) Reference 24 CFR 91.220(l)(5)

1. Distribution of Funds

   1. Describe the eligibility requirements for recipients of HTF funds (as defined in 24 CFR § 93.2).

   2. Describe the jurisdiction’s application requirements for eligible recipients to apply for HTF funds.

   3. Describe the selection criteria that the jurisdiction will use to select applications submitted by eligible recipients.

   4. Describe the jurisdiction’s required priority for funding based on geographic distribution, which is a description of the geographic areas of the State (including areas of low‐income and minority concentration) in which it will direct assistance during the ensuing program year.

   5. Describe the jurisdiction’s required priority for funding based on the applicant’s ability to obligate HTF funds and undertake eligible activities in a timely manner.

   6. Describe the jurisdiction’s required priority for funding based on the extent to which rents for units in the rental project are affordable to extremely low‐income families.

   7. Describe the jurisdiction’s required priority for funding based on the financial feasibility of the project beyond the required 30‐year period.

   8. Describe the jurisdiction’s required priority for funding based on the merits of the application in meeting the priority housing needs of the jurisdiction (such as housing that is accessible to transit or employment centers, housing that includes green building and sustainable development features, or housing that serves special needs populations).

   9. Describe the jurisdiction’s required priority for funding based on the location of existing affordable housing.

   10. Describe the jurisdiction’s required priority for funding based on the extent to which the application makes use of non‐federal funding sources.

2. Does the jurisdiction’s application require the applicant to include a description of the eligible activities to be conducted with HTF funds?

3. Does the jurisdiction’s application require that each eligible recipient certify that housing units assisted with HTF funds will comply with HTF requirements?

4. Performance Goals and Benchmarks. The jurisdiction has met the requirement to provide for performance goals, consistent with the jurisdiction’s goals established under 24 CFR 91.215(b)(2), by including HTF in its housing goals in the housing table on the SP‐45 Goals and AP‐20 Annual Goals and Objectives screens.

5. Rehabilitation Standards. The jurisdiction must establish rehabilitation standards for all HTF‐assisted housing rehabilitation activities that set forth the requirements that the housing must meet upon project completion. The jurisdiction’s description of its standards must be in sufficient detail to determine the required rehabilitation work including methods and materials. The standards may refer to applicable codes or they may establish requirements that exceed the minimum requirements of the codes. The jurisdiction must attach its rehabilitation standards below. If the jurisdiction will not use HTF funds for the rehabilitation of housing, enter “N/A”.

   In addition, the rehabilitation standards must address each of the following: health and safety; major systems; lead‐based paint; accessibility; disaster mitigation (where relevant); state and local codes, ordinances, and zoning requirements; Uniform Physical Condition Standards; and Capital Needs Assessments (if applicable).

6. Resale or Recapture Guidelines. Below, the jurisdiction must enter (or attach) a description of the guidelines that will be used for resale or recapture of HTF funds when used to assist first‐time homebuyers. If the jurisdiction will not use HTF funds to assist first‐time homebuyers, enter “N/A”.

7. HTF Affordable Homeownership Limits. If the jurisdiction intends to use HTF funds for homebuyer assistance and does not use the HTF affordable homeownership limits for the area provided by HUD, it must determine 95 percent of the median area purchase price and set forth the information in accordance with §93.305. If the jurisdiction will not use HTF funds to assist first‐time homebuyers, enter “N/A”.

8. Limited Beneficiaries or Preferences. Describe how the jurisdiction will limit the beneficiaries or give preferences to a particular segment of the extremely low‐ or very low‐income population to serve unmet needs identified in its consolidated plan or annual action plan. If the jurisdiction will not limit the beneficiaries or give preferences to a particular segment of the extremely low‐ or very low‐income

   population, enter “N/A.”

   Any limitation or preference must not violate nondiscrimination requirements in § 93.350, and the jurisdiction must not limit or give preferences to students. The jurisdiction may permit rental housing owners to limit tenants or give a preference in accordance with § 93.303 only if such limitation or preference is described in the action plan.

9. Refinancing of Existing Debt. Enter or attach the jurisdiction’s refinancing guidelines below. The guidelines describe the conditions under which the jurisdiction will refinance existing rental housing project debt. The jurisdiction’s refinancing guidelines must, at minimum, demonstrate that rehabilitation is the primary eligible activity and ensure that this requirement is met by establishing a minimum level of rehabilitation per unit or a required ratio between rehabilitation and refinancing. If the jurisdiction will not refinance existing debt, enter “N/A.”

Discussion:

It is expected that the overall minimum benefit of 70% of CDBG funds to benefit low to moderate income will be realized between FY2015 and FY2017 under the FY2015‐FY2019 Consolidated Plan. All housing programs are designed to achieve 100% low mod benefit.

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