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20) THE CITY OF NASHUA The Gate City’

Office of Econamic Development

TO: Board of Aldermen

FROM: Tim Cummings, Economic Development Director
Date: May 17'" 2022

RE: ARPA Funding Framework

Request

I am writing to request a meeting to discuss and approve the enclosed framework for spending
based on the funding that came in through the American Recovery Plan Act (“ARPA”).

Background

Municipalities across the nation are the beneficiaries of a significant influx of federal funds via
the American Rescue Plan Act (“ARPA”). The City ofiNashua will receive $16,138,777 in total
ARPA funds. The first of two installment payments of $8,069,388.50 was received in May of
2021. We anticipate receiving the second installment this month (May 2022). The Board of
Aldermen have already accepted and appropriated these funds through the adoption of R-21-167
at its meeting on November 9, 2021.

Over the past six months, the Office of Economic Development with the assistance of Financial
Services and the Office of the Mayor undertook a community outreach effort to discuss an
appropriate framework. We offered residents an opportunity to provide feedback on the draft
framework for spending ARPA funding and we first presented to the Board of Aldermen in
September of 2021.

Additionally, we brought on iParametrics to help guide our decision-making and to assist in the
compliance reporting.

Financing Mechanics

Based on the advice of our consultant it is their recommendation that the City use “revenue
replacement” for the ARPA funds. Revenue Replacement is a category a local government may
use to expend ARPA money on a board range of general government services. We anticipate that
the City of Nashua through the U.S Treasury guidance will be eligible to spend the entire ARPA
allocation through this method. As noted above, the City of Nashua accepted and appropriated
these funds as a grant. Accordingly, this grant will not lapse and the funds will be available for
the planned expenditures detailed in the enclosed attachment.

Thank you.

229 Main Street, Suite 234 » Nashua, New Hampshire 03060 » Phone (603) 589-3106

ARPA PLAN 5/10/2022
i
FISCALYEAR 2022 eon ven og93 FISCAL YEAR 2024 FISCAL YEAR 2025
PROJECT CATEGORY (01/01/22 - (07/01/22-06/30/23) (07/01/23 - (07/01/24 - 12/31/24} 6 YOTAL
06/30/22} 08/30/24} Mths

REVENUE REPLACEMENT FY ‘22 $ 1,200,000.00 s 1,200,000.00

HOUSING TRUST FUND $ 10,000,000.00 $ 10,000,000.00
MUNICIPAL CAPITAL REQUESTS

BACK-UP SERVER (IT) $ 500,000.00 $ 500,000.00

FIRE EQUIPMENT / ALARM $ 850,000.00 $ 850,000.00

POUCE - RECORD MANAGEMENT & GATE $ 650,000.00 $ 650,000.00

INFRASTRUCTURE PROJECTS
MAIN STREET & WEST HOLUS STREET $ 600,000.00 $ 600,000.00
UBARARY PARK PROJECT $ 1,500,000.00 $ 1,500,000.00
OPITCON SYSTEM $ 600,000.00

ARPA PROGRAM SUPPORT $ 15,000.00 $ 35,000.00 $ 75,000.00 $ 75,000.00 $ 200,000.00

TOTAL $ 1,215,000.00 $ 14,735,000.00 $ 75,000.00 $ 75,000.00 §$ — 16,100,000.00

POTENTIAL ARAPA FUNDS $ 16,138,777.00

PROJECTED SPENDING $ 16,100,000.00

BALANCE $ 38,777.00

APPOINTMENTS BY THE MAYOR

JUNE 14, 2022

Cultural Connections Committee

Nonyem Egbuonu (re-appointment) Term to Expire: April 30, 2025
c/o Interfaith Council

P.O. Box 209
Nashua, NH 03061

| respectfully request that these appointments be confirmed.
Jim Donchess, Mayor

AMENDED
R-22-025

RESOLUTION

AUTHORIZING THE MAYOR TO APPLY FOR AND EXPEND THE COMMUNITY
DEVELOPMENT BLOCK GRANT (“CDBG”) AND HOME INVESTMENT
PARTNERSHIP PROGRAM FUNDS FOR FISCAL YEAR 2023

CITY OF NASHUA

In the Year Two Thousand Twenty-Two
RESOLVED by the Board of Aldermen of the City of Nashua

That the Mayor be, and hereby is, authorized to file an application with the U.S.
Department of Housing and Urban Development (“HUD”) for the annual Community
Development Block Grant (“CDBG”) under the provisions of Title 1 of the Housing and
Community Development Act of 1974, as amended, and the HOME Investment Partnership
Program under the provisions of Title II of the Cranston-Gonzales National Affordable Housing
Act, and to execute all understandings, assurances and agreements as required therein;

That the following CDBG activities shall be carried out with an annual grant of
$664,000; estimated program income of $45,000; and reprogrammed funds in the amount of
$55,000, as described herein, for a total of $764,000. All activities are more fully described and
shall be consistent with the proposals contained in the communication from Deb Chisholm to the
Human Affairs Committee dated February 11, 2022 and further amended by deleting the struck
through language and inserting the italicized language:

Reprogrammed Funds:

FY22 PLUS Co — ADA compliant bathroom $10,000.00
FY22 Nashua Center —- HVAC $45,000.00

Activities to be funded in FY23:

1. Public Services - $99.600
Support of public service programs principally benefiting low-moderate income
beneficiaries of Nashua. This pool of funds shall be applied to CDBG eligible activities
identified through the Citizens Advisory Commission for Community Grants process.
Public Services shall not exceed 15% the cap of $99,600 of the entitlement award plus
prior year program income.

Amended

RESOLUTION R-22-025

2.

10.

11.

Project Delivery - $125,000

Construction management related to physical CDBG projects and Housing Improvement
Program, including but not limited to the direct cost of the Urban Programs Department
staff for conducting environmental reviews, drafting scope of work, preparation of bid
documents, bidding, construction management and Davis Bacon compliance.

CDBG Grant Administration - $141,800

General administration and planning costs of carrying out the CDBG and other related
HUD projects by the Urban Programs Department, including but not limited to regulatory
compliance monitoring, [DIS management, preparation of required grant reports,
advertising, recording fees, etc. Amount shall netexceed20%-of the entitlement award

phu-actual program ineome-reeeived-during the pregram-year is capped at $141,800.

Owner-Occupied Housing Improvement Program (“HIP”) - $§0.600 $55,797

Financial and technical assistance to eligible low-moderate income, owner-occupants in
for essential repairs of 1-4 family residential properties. Financial assistance provided in
the form of 0% deferred payment loans and/or grants for certain emergency work, as
described in the Program’s Guidelines. Minor rehab work, including code and safety
corrections, repairs, accessibility, etc. Emergency work, costing at least $1,000 and up to
$5,000, may be offered in the form of a grant rather than a loan to owners at or below
30% AMI. Owners earning above 30% AMI may be offered assistance in the form of a
loan. Repayment of prior HIP loans during the fiscal year, in excess of annual estimated
program income, shall be distributed between this Program and the Rental Improvement
Program.

Rental Improvement Program - $425-960 350.000

Program offering 0% interest, deferred payment loans for essential repairs of residential
rental properties containing 1-8 units, occupied by income eligible tenants. Financing
and other terms more fully described in the Program’s Guidelines. Properties located in
the City’s lowest income census tracts will receive priority.

Municipal Project - Pine Street Pedestrian Crosswalk - $30,797-3/00 000
Create a mid-block pedestrian crossing to help the low to moderate income affordable
housing community cross Pine Street and safely enter Mine Falls Park.

PLUS Company - $15.623
Flooring replacement at 19 Chestnut Street.

. Adult Learning Center - $75,000

Approximately half of the funding needed for roof replacement at 4 Lake Street.

Boys and Girls Club - $14.000
Replacement of a portion of blocked sewer pipe at One Positive Place.

Nashua Children’s Home - $23.195
Insulation at the 125-year old 86 Concord Street home, and sewer repair at 125 Amherst

Street facility.

Nashua Soup Kitchen and Shelter - $30,000
Flooring for the Soup Kitchen at 2 Quincy Street.

Amended
RESOLUTION R-22-025

12. Area Agency/Gateways - $8.985
Replace fencing at 4 Beard Street group home.

13, Opportunity Networks - $25,000
Replace windows at 116 Perimeter Road facility.

14. Contingency — $0
Reserve funds that may be applied to any of the activities described herein for unforeseen

costs. Funds may be directed to other unforeseen eligible community needs, subject to
Board of Aldermen approval.

That all open and active CDBG activities from previous Action Plans be carried forward and
entered in the FY23 Action Plan as applicable; and

That the following HOME activities be carried out with an annual grant of $427,000:

1. HOME Grant Administration - $42,700
Administration of the HOME Program by the Urban Programs Department, including
determining eligibility, technical assistance to participants, compliance with program
regulations, underwriting, preparation and review of construction specs, environmental
review, long-term monitoring and reporting to HUD.

2. Community Housing Development Organization {CHDOQ} Reserve - $64.050
Mandatory set aside, equal to 15% of the annual grant, for specific activities to be undertaken
by a private nonprofit, community-based organization that has staff with the capacity to
develop affordable housing for the community it serves. In order to qualify for designation as
a CHDO, the organization must meet certain requirements pertaining to their legal status,
organizational structure, capacity and experience as it relates to the project they are

developing.

3. Homebuyer Assistance Program - $55,000
Direct financial assistance toward down payment and closing costs for eligible low-income
homebuyers purchasing a home in Nashua, including counseling, underwriting and other

direct costs.

4. Affordable Housing Development - $265,250
Acquisition, rehabilitation and /or conversion of residential and/or non-residential buildings
to create affordable rental and/or home-owner housing, occupied by HOME-eligible
households. Projects may be developed by non-profit, for-profit, public or private entities.

AMENDED
O0-22-015

ORDINANCE

ESTABLISHING A GREELEY PARK ADVISORY COMMITTEE
CITY OF NASHUA

in the Year Two Thousand and Twenty-Two

The City of Nashua ordains that Part I “Administrative Legislation”, Chapter 12
“Boards, Committees and Commissions” of the Nashua Revised Ordinances, as amended, is
hereby further amended by adding the following new underlined article and deleting the struck-

through and italicized language:

“ARTICLE XII
Greeley Park Advisory Committee

§ 12-41. Establishment.

The Greeley Park Advisory Committee for the City of Nashua is hereby established to
promote the use, appreciation and upkeep of Greeley Park. It shall advise the Mayor
and Superintendent of Parks and Recreation as to the maintenance and development of

Greeley Park.

§ 12-42. Membership; terms.

The Mayor shall appoint, subject to the approval of the Board of Aldermen, an advisory
committee to be known as the Greeley Park Advisory Committee. The Committee

shall consist of a minimum of seven members, and shall have no limit as to the
maximum number of members. The Committee shall have a quorum when four members
are present. Two members will be appointed for the length of their tenure on the
Conservation Commission and Lower Merrimack River Local Advisory Committee,
respectively, and the remaining members will be appointed at large and will serve for
three-year terms. No member of the advisory committee shall be a member ef the-Beard
of Aldermen or any employee of the Board of Public Works/Parks and Recreation
Department. 4 non-voting member of the Board of Aldermen shall be chosen to serve on

the advisory committee.

AMENDED
ORDINANCE 0-22-015

§ 12-43. Chairperson; bylaws; compensation; terms.

The Committee shall elect a Chairperson from among its members. chosen from one

of the citizen representatives. The Committee shall establish its bylaws and establish
regular times for meetings and the orderly conduct of business. The members of the
Committee shall serve without compensation. Each member of the Committee shall hold
office until his/her successor is appointed and approved, unless sooner removed.”

All ordinances or parts of ordinances inconsistent herewith are hereby repealed.

This legislation shall take effect upon passage.

AMENDED
O-22-017

ORDINANCE

ESTABLISHING A HOUSING TRUST FUND COMMITTEE

CITY OF NASHUA

In the Year Two Thousand and Twenty Two

WHEREAS, the City completed a city-wide Housing Study in the fall of 2021 which made the
following findings:

1. The city is expected to grow its population and employment base and the existing
housing stock will not accommodate this growth.

2. Housing prices (sales and rentals) are outpacing what most Nashua residents can afford.

3. Making affordable housing available in more locations across the City would provide
more housing choice for the City’s most vulnerable residents. Providing affordable
housing in more locations throughout the City would improve housing choices for the
City’s most vulnerable residents.

4. The City must employ strategies that improve the quality of the housing stock and
encourage a mix of new market-rate and affordable housing to improve quality of life for
all residents in the community.

5. The City will need additional resources to address the housing opportunities and
challenges ahead.

WHEREAS, the Housing Study recommended the establishment of a Housing Trust Fund and a
committee to make recommendations to the Mayor; and

WHEREAS, the City established a Housing Trust Fund under R-21-118 on April 13, 2021.

NOW THEREFORE, The City of Nashua ordains that Part | “Administrative Legislation”,
Chapter 12 “Boards, Committees and Commissions” of the Nashua Revised Ordinances, as
amended, is hereby further amended by adding the following new underlined article and
italicized language and deleting the struck-through language:

AMENDED

ORDINANCE 0-22-0171

“ARTICLE XIII
Housing Trust Fund Committee

§ 12-44. Establishment.

The Housing Trust Fund Committee for the City of Nashua is hereby established. The
functions of the Committee shall include the following responsibilities:

A.

|

IQ

IS

=

=

G.

Making recommendations to the Mayor as the agent to expend for funds from the
Housing Trust Fund.

Developing the guidelines for the Housing Trust Fund. The guidelines shall support
the creation of affordable housing units and housing development or redevelopment
projects with unique financial, environmental. or other challenges that impact the
provision of affordable housing.

Developing the criteria for project eligibility and assist in the determination of

eligible applicants for expenditure of Housing Trust Fund monies.

Identifying opportunities and potential barriers to implementing the City’s affordable
housing goals and making recommendations to address those challenges.

Improving housing access with respect to City residents at all life stages. household
compositions, #hysical abilities, and socioeconomic levels.

Guiding and supporting outreach and engagement initiatives and activities related to
affordable housing. This may include assistance in the creation and distribution of
affordable housing literature and community education on housing, generally.

Recommend policies, ordinance changes, or modifications to the City’s housing

programs.

§ 12-45. Membership: terms.

A.

The Committee shall consist of seven.(73} members. The members are as follows:

(1) One (1} member of the Board of Aldermen who will also serve as liaison between
the Committee and Board of Aldermen. and will be appointed by the president of
the Board of Aldermen. The term of this member shall be two (2) years.

(2) One (1) member shall be a Nashua resident of a low-income neighborhood; or a
low-income community resident—or-arn- elected representative of a low-income

neizhberheed-organization and will be apnointed by the Ma: or subject to the

approval of the Board.of Aldermen.