City of Atlanta
Georgia

Ordinance
19-O-1543
Adopted as Amended
Oct 7, 2019 1:00 PM

****AN ORDINANCE BY COUNCILMEMBER ANDREA L. BOONE AS AMENDED BY COMMUNITY DEVELOPMENT/HUMAN SERVICES COMMITTEE AUTHORIZING THE CHIEF FINANCIAL OFFICER OR HIS DESIGNEE, ON BEHALF OF THE CITY OF ATLANTA, TO TRANSFER AN AMOUNT NOT TO EXCEED ONE MILLION SEVEN HUNDRED AND SEVENTEEN THOUSAND TWO HUNDRED FORTY-EIGHT DOLLARS AND ELEVEN CENTS ($1,717,248.11) FROM THE FISCAL YEAR 2020 GENERAL FUND BUDGET TO THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (“HUD”); TO SATISFY AN OUTSTANDING REPAYMENT FOR DISALLOWED COSTS FROM THE HOME INVESTMENT PARTNERSHIPS PROGRAM (“HOME”); AND FOR OTHER PURPOSES.

Information

Department:Office of the Municipal ClerkSponsors:Councilmember, District 10 Andrea L. Boone
Category:Personal PaperFunctions:None Required

Item Discussion

(Favorable as Amended by Community Development/Human Services Committee 9/24/19)

 

Body

WHEREAS, the City of Atlanta (“City”) is a Participating Jurisdiction for HOME Investment Partnerships Program (“HOME”) from the US Department of Housing and Urban Development (“HUD”); and

 

WHEREAS, HUD requires Participating Jurisdiction to meet an annual expenditure deadline for HOME funds; and

 

WHEREAS, the City’s HOME expenditure deadline for the 2012 HOME program funding year was April 30, 2017; and

 

WHEREAS, following the submission of the 2017 expenditure supporting documentation, HUD notified the City that certain expenses, totaling One Million Sixty-Three Thousand Two Hundred and Sixty-One Dollars and Seven Cents ($1,063,261.07) were not allowed under the HOME program; and

 

WHEREAS, HUD determined that the supporting documentation was insufficient to justify expenditures and that the written agreements were not in general compliance with current statutory rules for the HOME program; and 

 

WHEREAS, 17-R-3389 authorized a HOME contractual agreement between the City and the Center for Working Families, Inc. (“Working Families”); and

 

WHEREAS, the contract with Working Families specified that work would commence on March 29, 2017 and be completed by April 30, 2018; and

 

WHEREAS, following the completion of the work under the contract, HUD notified the City that certain expenses totaling Six Hundred Forty-One Thousand Five Hundred and Twelve Dollars and Ninety-Six Cents ($641,512.96) were not allowed under the HOME program; and

 

WHEREAS, HUD determined that the official legal start date of the contract was April 21, 2017, and that any project expenses incurred prior to this date were ineligible for reimbursement; and

 

WHEREAS, the City challenged HUD’s findings in its most recent monitoring response, but was unsuccessful in its appeal; and

 

WHEREAS, 14-R-3265 authorized a HOME contractual agreement with the Pittsburg Community Improvement Association (PCIA); and

 

WHEREAS, the City drew down funds Twelve Thousand Four Hundred and Seventy-Four Dollars and Eight cents ($12,474.08) as normal course of action according to the terms of the agreement and performance of work; and

 

WHEREAS, upon dissolution of PCIA, the properties were returned to the City and Fulton County Land Bank Authority to hold for other eligible bidders; and

 

WHEREAS, HUD imposed sanctions on the City including limiting access to the HUD reporting system, Integrated Disbursement and Information System (“IDIS”), which limits the ability of the City to properly set up and draw down funds for the HOME program; and

 

WHEREAS, the City must repay HUD a total of One Million Seven Hundred and Seventeen Thousand Two Hundred and Forty-Eight Dollars and Eleven Cents ($1,717,248.11) with City funds; and

 

WHEREAS, the funds must be repaid to HUD, however these funds did support the delivery of housing services to the residents of Atlanta, including rehab services for low income residents; and

 

WHEREAS, making these payments will allow the City to move forward, beyond these past mistakes, with the plan introduced in June for restructuring the administration and management of grants; and

 

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ATLANTA, GEORGIA, HEREBY ORDAINS:

 

SECTION 1. The Chief Financial Officer, or his designee, on behalf of the City of Atlanta (“City”), is authorized to transfer an amount not to exceed One Million Seven Hundred and Seventeen Thousand Two Hundred and Forty-Eight Dollars and Eleven Cents ($1,717,248.11) to the US Department of Housing and Urban Development (“HUD”) to repay costs that are not allowed under  the HOME Investment Partnerships Program (“HOME”).

 

SECTION 2 The Chief Financial Officer or his designee on behalf of the City of Atlanta (“City”),  is authorized to pursue negotiations with the US Department of Housing and Urban Development (“HUD”) to seek an installment agreement for repayment of an amount not to exceed One Million Seven Hundred and Seventeen Thousand Two Hundred and Forty-Eight Dollars and Eleven Cents ($1,717,248.11) to the extent that such agreement would not prevent the City from gaining access to the HUD reporting system, Integrated Disbursement and Information System (“IDIS”), and restrict the ability of the City to properly set up and draw down funds for the HOME program.

 

SECTION 3. The costs not allowed under HOME Investment Partnership Program (“HOME”) Grants funds will be transferred to the account string(s) below:

 

FUND

DEPT/ORG

ACCOUNT

FUNCTION/ACTIVITY

AMOUNT

1001

200101

5212001

1512000

$1,704,774.03

1001

250601

5212001

7310000

$12,474.08

 

SECTION 4. All ordinances and parts of ordinances in conflict herewith are hereby waived for the purposes of this Ordinance only, and to the extent of the conflict.

 

 

Meeting History

Sep 16, 2019 1:00 PM Video Atlanta City Council Regular Meeting
draft Draft

REFERRED TO COMMUNITY DEVELOPMENT/HUMAN SERVICES COMMITTEE AND FINANCE/EXECUTIVE COMMITTEE WITHOUT OBJECTION

RESULT:REFERRED WITHOUT OBJECTION
Sep 24, 2019 12:00 PM Video Community Development & Human Services Committee Regular Committee Meeting
draft Draft

TO BE FORWARDED TO FINANCE/EXECUTIVE COMMITTEE

RESULT:FAVORABLE AS AMENDED [UNANIMOUS]
MOVER:Dustin Hillis, District 9
SECONDER:Natalyn Mosby Archibong, Chair, District 5
AYES:Natalyn Mosby Archibong, Dustin Hillis, Marci Collier Overstreet, Joyce M Sheperd, Matt Westmoreland
ABSENT:Michael Julian Bond, Antonio Brown
Sep 25, 2019 1:00 PM Video Finance/Executive Committee Regular Committee Meeting
draft Draft

Tim Keane, Commissioner, DPC

RESULT:FAVORABLE AS AMENDED [UNANIMOUS]
MOVER:Natalyn Mosby Archibong, District 5
SECONDER:Howard Shook, Chair
AYES:Howard Shook, Natalyn Mosby Archibong, Andrea L. Boone, Andre Dickens, Jennifer N. Ide, J. P. Matzigkeit, Matt Westmoreland
Oct 7, 2019 1:00 PM Video Atlanta City Council Regular Meeting
draft Draft

ADOPTED AS AMENDED BY A ROLL CALL VOTE OF 12 YEAS; 0 NAYS

RESULT:ADOPTED AS AMENDED [12 TO 0]
MOVER:Dustin Hillis, Councilmember, District 9
SECONDER:Marci Collier Overstreet, Councilmember, District 11
AYES:Michael Julian Bond, Andre Dickens, Carla Smith, Amir R Farokhi, Cleta Winslow, Natalyn Mosby Archibong, Jennifer N. Ide, Howard Shook, J. P. Matzigkeit, Dustin Hillis, Marci Collier Overstreet, Joyce M Sheperd
AWAY:Matt Westmoreland, Antonio Brown, Andrea L. Boone