Resolution 040095

..Title Amending the Fiscal Year 2004 Program Statement and Budget for the expenditure of the Neighborhood Transformation Initiative (NTI) bond proceeds. ..Body WHEREAS, On June 5, 2003, Council adopted Resolution No. 030306, approving the Fiscal Year 2004 Program Statement and Budget for the expenditure of the Neighborhood Transformation Initiative (NTI) bond proceeds; and WHEREAS, In order to continue to eliminate public safety hazards on a regular and consistent basis, it is necessary to augment the NTI demolition budget for Fiscal Year 2004 by $25 million; and WHEREAS, This change will enable the City to proceed with the targeted demolition of dangerous vacant properties and provide sufficient funds for emergency demolitions that will become necessary as a result of severe weather conditions during the winter of 2003-2004; and WHEREAS, The FY04 NTI Program Statement and Budget allocates $12,300,000 to the Basic Systems Repair Program - Tier II (BSRP) and $2,500,000 to the Adaptive Modifications Program; and WHEREAS, These two programs are also funded using CDBG and State funds; and WHEREAS, Moving $1,150,000 in NTI funds from the BSRP to the Adaptive Modifications would bring the NTI funding for Adaptive Modifications to $3,650,000 and reduce NTI funding for BSRP to $11,150,000; and WHEREAS, This change would not affect the overall funding for either program, but would reduce the amount of CDBG funding needed for Adaptive Modifications, so that the lead hazard abatement requirements of Title X will not be triggered; and WHEREAS, Pursuant to Bill No. 010694, as amended by Bill No. 020036, Council must approve, by resolution, any amendments to the annual Program Statement and Budget for the expenditure of proceeds of Neighborhood Transformation Initiative bonds; and WHEREAS, Council wishes to approve the proposed amendments to the annual NTI Program Statement and Budget for Fiscal Year 2004; now therefore RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA THAT: Section 1. The amendments to the annual Program Statement and Budget for the expenditure of the Neighborhood Transformation Initiative (NTI) Bond Proceeds for Fiscal Year 2004 attached hereto as Exhibits "A" through "F" are hereby approved. Section 2. The Chief Clerk of Council shall keep on file and make available to the public for inspection during regular office hours the exhibits referenced in this Resolution. Exhibit A: Proposed Amendment to page 7 Deletions are in Strikethrough. Additions are in Bold. Table 1: Five Year Estimated NTI Program Budget FY03 FY03 Total NTI Activity Original Projected FY04 FY05 FY06 FY07 (FY03-FY07) Blight Elimination Residential Demolition $35,140,627 $20,000,000 $53,000,000 $32,000,000 $12,000,000 $0 $117,000,000 $28,000,000 $28,000,000 $28,000,000 $13,000,000 Large Vacant Bldg Demo. $3,000,000 $3,000,000 $4,250,000 $4,250,000 $4,250,000 $4,250,000 $20,000,000 Land Assembly Land Acquisitions-1 $8,000,000 $8,500,000 $60,000,000 NA NA NA $68,500,000 Land Assembly for Development Projects $3,000,000 $3,000,000 NA NA NA NA $3,000,000 Acquisition of Stabilized Properties $2,500,000 $2,500,000 NA NA NA NA $2,500,000 Housing and Neighborhood Preservation Vacant Property Stabilization $3,500,000 $1,400,000 $3,000,000 $3,200,000 $3,200,000 $3,200,000 $14,000,000 Housing Rehab & Preservation Programs $8,000,000 $5,500,000 $7,050,000 $6,000,000 $6,000,000 $5,450,000 $30,000,000 Basic Systems Repair Program -- Tier II - - $11,150,000 - - - $11,150,000 $12,300,000 $12,300,000 Adaptive Modification Program - - $3,650,000 - - - $3,650,000 $2,500,000 $2,500,000 SHARP Home Repair Program - - $200,000 $200,000 Management Information Vacant Property MIS $2,100,000 $175,000 $1,925,000 $0 $0 $0 $2,100,000 Additional MIS $2,900,000 $888,550 $2,011,450 $0 $0 $0 $2,900,000 Total $68,140,627 $44,963,550 $146,236,450 $45,450,000 $25,450,000 $12,900,000 $275,000,000 $121,263,450 $41,450,000 $41,450,000 $25,900,000 Exhibit B Proposed Amendment to page 9 Deletions are in Strikethrough. Additions are in Bold. Table 3: FY04 Program Budget FY04 NTI NTI Activity Bond Proceeds Demolition Residential Demolition $28,000,000 $53,000,000 Large Vacant Buildings Demolition $4,250,000 Land Assembly Land Acquisitions $60,000,000 Housing and Neighborhood Preservation Vacant Property Stabilization $3,000,000 Homeownership Rehabilitation Program $1,000,000 Retaining Wall Reconstruction $1,000,000 Employer Assisted Housing $750,000 Targeted Basic Systems Repair Program $3,000,000 Teacher and Student Retention Program $500,000 Settlement Grant Assistance $550,000 Preservation Development Initiative $250,000 Basic Systems Repairs Program - Tier II $12,300,000 $11,150,000 Adaptive Modification Program $2,500,000 $3,650,000 SHARP Home Repair Program $200,000 Management Information Systems Vacant Property Management Information System $1,925,000 Additional Management Information Systems $2,011,450 Total 121,236,450 $146,236,450 Exhibit C: Proposed Amendment to page 16 Deletions are in Strikethrough. Additions are in Bold. Blight Elimination Residential Demolition Objective While there are approximately 26,000 vacant residential properties throughout the City, at any given time more than 7,000 are structurally dangerous. The goal of the residential demolition program is to protect the health, safety and general welfare of Philadelphia residents by drastically reducing the city's inventory of vacant and dangerous houses. Program Description In FY04, the City expects to demolish between 1,400-1,600 dangerous residential properties throughout the ten Councilmanic Districts. This figure includes approximately 200 500 emergency curbside demolitions. The projected cost of the residential demolitions and associated activities for this period will be $28 $53 million. The City's demolition strategy will prioritize public safety, economies of scale, and potential redevelopment opportunities. The type of data that the City will evaluate when making demolition decisions includes, but is not limited to, the following: * Condition of structure * Level of vacancy * Social, cultural and economic anchors * Ownership characteristics * Parcel characteristics * Proximity to elementary schools * Home sales * Household change * Proximity to industrial land uses * Market quality Proposed Amendment to Resolution No. 040095 1. Replace "Exhibit D" with the following: Exhibit D: Proposed Amendment to page 19 1. Delete chart under the heading "Direct Residential Demolition Work - NTI Bonds," and replace with the following: FY04 Program Statement and Budget as Approved June 2003 Council District Total Number of Vacant Buildings (Unsafe & Dangerous) (01/2000) Total Number of Dangerous Buildings (09/2001) Estimated Number of Demolitions for FY2004 Average Per Property Demolition Costs Est. Demolition Costs For FY 2004 1 4150 911 150 - 175 $14,000 $2,450,000 2 3474 921 75 - 100 $14,000 $1,400,000 3 4215 1118 175 - 200 $14,000 $2,800,000 4 2242 449 175 - 200 $14,000 $2,800,000 5 7102 2188 200 - 225 $14,000 $3,150,000 6 721 83 0 $14,000 $0 7 3203 912 175 - 200 $14,000 $2,800,000 8 2795 902 175 - 200 $14,000 $2,800,000 9 996 207 75 - 100 $14,000 $1,400,000 10 167 22 0 $14,000 $0 Subtotal 29065 7713 1200 - 1400 $19,600,000 Curbside Demolitions $3,200,000 Wrap-Up insurance $2,500,000 Project Mangement $2,700,000 Total: $28,000,000 (Continued on next page) Approved FY04 Demolition Budget per Resolution No. 040095 FY04 Targeted Demolition Packages by Council District Estimated Number of Demolitions Change in Estimated FY04 Demolitions - Using the low number in each range Estimated Demolition Cost for FY 2004 Change in Estimated Demolition Costs included in Resolution No. 040095 Council District BP12 - Jefferson Square 72 $1,871,242 - 1 BP20 - KensingtonA 169 $1,434,377 - BP39 - Lower Kensington 14 $308,000 - Total 255 105 $3,613,619 $1,163,619 BP18 - Grays FerryB 250 175 $2,335,417 $935,417 2 AACC1 - District 3 5 $138,190 - 3 BP5/6 - W. Phila Small Bid Packages 75 $2,216,231 - BP16a - Belmont 71 $1,391,000 - BP38 - W. Philadelphia Scattered Sites 51 $1,122,000 - BP39 - Small Bid Package W. Phila 16 $352,000 - BP16b - Belmont 70 $330,000 - 288 113 $5,549,421 $2,749,421 BP13 - Haddingtonc 195 20 $3,362,696 $562,696 4 BP8/9 - Cecil B Moore Demolition 203 $4,582,974 - 5 BP15 - Strawberry Mansion Bid 85 $2,378,470 - BP21 - APM West Bid 110 $2,927,045 - AACC 1 - Dist 5 14 $399,014 - BP28 - Ludlow 81 $1,764,872 - AACC 3 - Dist 5 21 $462,000 - 514 314 $12,514,375 $9,364,375 (Continued on next page) FY04 Targeted Demolition Packages by Council District Estimated Number of Demolitions Change in Estimated FY04 Demolitions - Using the low number in each range Estimated Demolition Cost for FY 2004 Change in Estimated Demolition Costs included in Resolution No. 040095 Council District BP39 - Small Bid Package Lower NE 10 10 $210,000 $210,000 6 BP11 - St. Hugh's Area Demo Bid 49 $1,233,913 - AACC2 - Dist 7 2 $55,276 - APM East Bid 110 $2,898,011 - BP39 - Small Bid Package Dearborn 10 $256,509 - BP39 - Small Bid Package 49th & Saybrook* 4 $88,000 - 175 - $4,531,709 $1,731,709 BP24 - West Tioga 31 $1,150,215 - 8 BP25 - Broad & Lehigh 8 $322,585 - BP23 - East Germantown 16 $447,302 - AACC1 - District 8 3 $82,914 - AACC2 - District 8 5 $142,505 - BP17 - Allegheny WestD 139 $1,505,010 - 202 27 $3,650,531 $850,531 BP14 - Logan 125 50 $3,999,996 $2,599,996 9 - - - - 10 2,014 Subtotal $39,767,765 $20,167,765 Curbside Demolitions $7,782,235 $4,582,235 Asbestos Monitoring $250,000 $250,000 Wrap-Up insurance $2,500,000 $0 Project Management $2,700,000 $0 Total: $53,000,000 $25,000,000 * All bid packages highlighted in Blue and Yellow are included in the $25,000,000 amendment. District Councilmembers have signed off on all bid packages. (With the exception of BP 39 - Small Bid Package Lower North East. The Adeministration will work with Councilwoman Krajewski's Office to determine which properties to include.) __________________________________ A The total number of dangerous houses in the Kensington target area that are candidates for demolition is 169, for a total cost of $4,618,181. The Administration anticipates contracting for the demolition of apx. 56 houses during FY04. Bid packages for the remaining houses will be issued in FY05. B The total number of dangerous houses in the Grays Ferry target area that are candidates for demolition is 250, for a total cost of $7,784,724. The Administration anticipates contracting for the demolition of apx. 75 houses during FY04. Bid packages for the remaining houses will be issued in FY05. C The total number of dangerous houses in the Haddington target area that are candidates for demolition is 195, for a total cost of $6,557,258. The Administration anticipates contracting for the demolition of apx. 100 houses during FY04. Bid packages for the remaining houses will be issued in FY05. D The total number of dangerous houses in the Allegheny West target area that are candidates for demolition is 139, for a total cost of $4,547,748. The Administration anticipates contracting for the demolition of apx. 46 houses during FY04. Bid packages for the remaining houses will be issues in FY05. Exhibit E: Proposed Amendment to page 42 Deletions are in Strikethrough. Additions are in Bold. Housing and Neighborhood Preservation Basic Systems Repair Program - Tier II Objective The Basic Systems Repair Program helps maintain stable neighborhoods by providing homeowners with needed repairs and improvements. Program Description The City will direct NTI resources to Tier II of the Basic Systems Repair Program. In the Tier II category of BSRP, an eligible homeowner may receive up to $12,500 of rehabilitation assistance through BSRP. Typical Tier II repairs include heating system replacement, plumbing and drainage system replacement, wiring, roof replacement and structural systems repairs (floors, ceilings, walls, etc.) Eligible homeowners receiving Tier II services may also receive up to $2,000 per property in weatherization assistance. Currently, the average cost for Tier II services is $4,435 per unit. FY04 Budget In FY04, the City will allocate $12,300,000 $11,150,000 to Tier II of the Basic Systems Repair Program. Exhibit F: Proposed Amendment to page 43 Deletions are in Strikethrough. Deletions are in Bold Housing and Neighborhood Preservation Adaptive Modification Program Objective The Adaptive Modification Program provides increased mobility within and access to their homes to low-income Philadelphia residents with permanent physical disabilities. Program Description The Adaptive Modification Program is available for homeowner-occupied and renter-occupied houses which need to be made accessible for people with disabilities. Adaptive modifications must meet one or more of the following objectives: * Improve the consumer's ability to enter and exit the home; * Increase the consumer's ability to perform activities of daily living; and/or, * Enable the consumer to remain in the home and/or prevent institutionalization. FY04 Budget In FY04, the City will allocate $2,500,000 $3,650,000 to support the Adaptive Modification Program. ..End ?? ?? ?? ?? NTI FY04 Program Statement and Budget Page 9 NTI FY04 Program Statement and Budget Page 19