June 04, 2021 10:00 AM - 12:00 PM
Sources of project funds in this round of grant applications would be we were playing to the maximum, which is $250,000 for the 2021 CHIP Grant. And this is a two year period. And then when you reapply if successful- or even not- we will apply again in two years. We also have $74,000 around about in reprogramed funds. We were a CHIP grantee in 2004. We ended the partnership with the state to go in a different direction, but we had developed a revolving loan balance. So we were continuing to do housing rehab projects with those funds. So the repayments and payoffs from those dollars, are what's in the 74,000. And then we're anticipating an additional 10,000 in revolving loan program income to come in throughout that two year period. So we're estimating roughly, you know, $334,000 will be available for programming for CHIP dollars.
And what are we going to use the funds for? Well, we're going to primarily focus on two projects. Those are down payment and closing cost assistance and new construction with Habitat for Humanity. The State of Ohio, does put a cap on the amount that we can fund Habitat for Humanity and that's thirty thousand dollars per project. We just made doing two projects during that two year period. If dollars are freed up, we may be able to do another project. Just depends. And then we're allowed to take ten percent of the total grant amount for project administration. And so we'll be doing that. Just pay for staffing costs and other time spent on working on this grant. We're going to budget the full use of the reprogram funds, $44,000 that will go to down payment and closing cost assistance [unclear] again. And then I'm going to keep about $30,000 in there from the reprogramed funds to do at least one more rehab project. And again, with the revolving loan funds, we're allowed to keep 10% of those from project administration falls within that. And then the balance will be using for [unclear] homeownership rehab programs, revolving loan funds.
So who benefits from our CHIP programs? So our programs are income limited. So we are capped at serving people who are 80% of the area median income and below. So area median income looks at what is the middle point of the income levels for our community. So they basically find the middle income point for a family of four, and then they spread that across all people in the community, and then they, they do a calculation. So that's what this chart shows. So basically for our family of four 80% of area median income is $60,550. So we can't allow a family of four to buy a home who makes more than $60,550, which is not a lot of money to buy a home in the City of Kettering. And that's why we will be able to provide some assistance in helping them to provide those closing costs and down payment dollars.
So what we did though, is we surveyed the community to find out like, you know, is this important to you? Cause we don't want to spend dollars on things that aren't important to people in our community. So 67% of our survey respondents believe it's harder now for a low to moderate income people to buy a house in Kettering than it was five years ago. And we've heard from realtors too, that are lower-end cost houses, the $100,000 to $200,000 houses are going within a day to two weeks. They're selling and they're hard to get under contract. And so it is really challenging if you are a person on a tight budget to find a house that's affordable in Kettering. So, but the highest rated things on our surveys of our residents was down payment assistance and construction of new affordable housing.
Okay. Which is why the things that we picked for our CHIP funded application was Habitat for Humanity building two new homes for low-income families. And again, those are typically families who would not be able to own homes otherwise- just at all. They would probably would not be able to make homeownership a dream for them without the help of Habitat. And so we really appreciate this partnership with them. And then home buyer assistance, we're estimating that we would be able to serve approximately 14 to 25 low to moderate income homebuyers over two years. And so we feel like that allows us to have a broader range of people who live in our community. And we think that's a great thing for Kettering.
So we wanted to show you what the two houses that Habitat has shown us, that they think they would build in Kettering would look like. So the Anne and the Sandy. Sure, great little houses. Super cute, and they've built other houses in our community. And we just love them. And we've been part of other houses and we've had great partnerships with them. So we wanted to also talk about our home buyer assistance program. So what we would be offering is up to a $14,000 forgivable loan used for closing costs and down payment underwriting would be used to support the need. So we have to show that there is a need that exists that the homebuyer can't afford the mortgage. That they literally can't make the payment any other way, unless the, there is a gap. And so we have to show that that gap exists, that that the need exists. And so we, we have underwriting formulas. So they may not actually get 14,000. They may not get 8,000. It could be 2,000. And so that's why we have such a broad range of who we might serve because some people may get 14,000. Some people might get 2000. It just depends on what they actually need based on what the underwriting shows.
And then we have marketing plans. So we wanted to tell you a little bit about that, how people can actually apply for our programs and how they would find out about it. So applications will be made available at the city building and by request. Our funds will be first come, first served. Referrals will be, for homebuyers, will be from the city website, the Homeownership Center of Greater Dayton. They'll also come from realtors and lenders, which we will let know about the program. And, of course, we will participate in community events and we will let other community partners and know about our program as well. We also have a resource guide. And so we will let all the, the agencies in our resource guide know about our programs. And then Habitat for Humanity has its own applicant pool of participants for their program. And in the past, I've had a waiting list for Kettering homes. And so what we understand now is that they do a lottery system specifically. And so who will actually get into the Kettering homes, we don't know. Because you have a lottery system.
So anticipated date, we actually did publish our first draft, well our final draft of our plan. It is set to be approved by City Council on June 8th, which is next Tuesday. And we're going to submit it to ODSA by or before June 23rd. And we're [Unclear] for a lot before. And we're just waiting for council approval. Then we'll upload all of the things into the system. And again, the total budget we're asking for, for CHIP funding would be 250,000, which is the maximum for our community. Again, if you're interested in getting more information, you can sign up as a subscriber to get input on this and any other of our Community Development plans. Any questions or comments about our plans or our projects, our citizens participation, or anything else kind of related to Community Development, you can reach out to me at [email protected] (937) 296-2524. And are there any questions from anyone from the audience or comments? Thank you This concludes... Anyone on the phone bridge? Anything like that? [unclear] So we can have people call in. Okay. All right. Well hopefully people will view it, [unclear] the public comment period is still going on. So, we will accept comments and thanks. Good. Thank you.
Good morning. Good morning. Welcome to the City of Kettering 2021 CHIP plan public meeting. And if those who aren't speaking can mute, that would be great so there wouldn't be an echo. We're going to go ahead and get started. Andria are you on mute? Katherine? Big Screen? And so I'm Angela Brown. I am the Community Development Manager with the City of Kettering. Is it muted Katherine? We'll go ahead and get started. For those of you who weren't present for the first meeting, we'll just kind of go over why we're here, and some ground rules, and then kind of get into what the program actually is. But before that, I thought that since there are actually people here this time- in the actual meeting room- we could go around and do some brief introductions. So then, I'm Angela Brown. I'm the Community Development Manager for the City of Kettering. I manage all of the grant funding that we get from HUD, from the state, and for various other projects for community, economic, and housing development. Tom Luckett is to my left and we'll just start with him. I am the Housing Rehab Specialist for the CDBG program amongst other things. I am Sam Panson. I am the grant writer for Habitat for Humanity of Greater Dayton. I'm David Mauch, Development Director for Habitat for Humanity of Greater Dayton. Katherine Haynes. I'm the Planning and Development clerk.
Andria Perkins. I'm the Community Development Program Coordinator for the City of Kettering. So during this meeting, the best way to view the meeting is at public input.com at CHIP0604. Actually, we've discovered, if you leave off the www, it's a little easier to get to the site and there you can view the live stream and it gives you further instructions for calling in the meeting code. If you dial *1, you can listen, dial *2 to leave a voicemail comment, or *3 to get in the speaker queue. You can text S086 to the same phone number to text a comment or email [email protected] to email a comment.
Thanks Andria. So what is the CHIP program? We're just going to go briefly over it. I know we went over it at the last meeting, but it is the Community Housing Impact and Preservation Program and it is administered through the State of Ohio. The Ohio Development Services Agency. This program provides funds to local communities to preserve and improve affordable housing stock for low- and moderate- income Ohioans. Where did the funds come from? Well, CHIP funding is primarily made up from two sources, from funding from the State of Ohio and from the Department of HUD. Community Development Block Grants (CDBG) from HUD is used for the program about $8.3 million. So HOME program, which is also from HUD, their funding with $11 million of the state's allocation for that, and then funding from the Ohio Trust Fund, which hasn't exactly been identified, but it's simply about $5 million or more every year that they put into the CHIP program. And the things that can be used for CHIP in Kettering are a little different than things that be used with CHIP for other communities in Ohio.
And that is because Ohio, Kettering is a CDBG entitlement community and we get a direct allocation from HUD. So because of this, we can't apply for the CDBG part of programming under CHIP. We can only apply for the HOME and the housing [unclear] dollars. So with that, things that we can do in Kettering would be housing rehab assistance- owner, and renter occupied, down payment assistance, new construction with Habitat for Humanity. There's a little part about new construction with any for-profit or other nonprofits, but we are able to work with Habitat under saves program. And then Tenant Based Rental Assistance, which is sort of mimicking that Public Housing Section Eight program where you provide direct vouchers for, for individual families and households to help with their rent.
So one of the things that we do here is we ensure that citizens know about our applications through public meetings and hearings. And so what we're doing here is having a virtual and hybrid meeting by allowing people to both come to our city building and having our meeting also online. So we call that a hybrid meeting. We also do public notices. We do it online on our city website. We publish it in the Dayton Daily News, and we do it on also PublicInput.com. And we also have contact with people by phone, email, text, in person and through letters. You can give us comments and all of those ways. And then we also seek out information from our community partners because we want feedback from our community about our applications to ensure that we're doing the right thing for our community, with these applications. And when we apply for our funding.