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HomeMy WebLinkAbout2025-07-29; City Council; 07; Budget Appropriation and Funds Transfer for Improvements at the Tyler Court Senior ApartmentCA Review CDS Meeting Date: July 29, 2025 To: Mayor and City Council From: Geoff Patnoe, City Manager Staff Contact: Nicole Piano-Jones, Senior Program Manager nicole.pianojones@carlsbadca.gov, 442-339-2191 Subject: Budget Appropriation and Funds Transfer for Improvements at the Tyler Court Senior Apartment Districts: 1 Recommended Action Adopt a resolution authorizing the appropriation of $610,000 to the Tyler Court Apartments Fund and a transfer of up to $600,000 from the Community Development Block Grant Fund to the Tyler Court Apartments Fund for repairs and operating costs at the Tyler Court Senior Apartments. Executive Summary The City of Carlsbad owns the 75-unit Tyler Court Senior Apartment complex, which provides affordable housing for very low-income senior households. Ongoing repairs and maintenance are paid for out of an established reserve fund held by the City of Carlsbad. In April 2025, the City Council authorized additional funding from the city’s Community Development Block Grant (CDBG) for the city’s Affordable Housing Special Revenue Fund, which will allow some needed repairs at Tyler Court to be completed earlier than anticipated rather than relying on operating revenue. To move forward on the identified repairs with CDBG funds, the City Council must authorize an additional budget appropriation in the Tyler Court Apartments Fund and transfer funds from the Community Development Block Grant Fund to the Tyler Court Apartments Fund. The City Council is required to approve the budget appropriations and transfers between funds. Explanation & Analysis In 1999, the Redevelopment Agency of the City of Carlsbad purchased the Tyler Court Senior Apartment complex for the purpose of providing permanent affordable housing for very low- income senior residents. The day-to-day management is provided by a private property management company, Western Senior Housing Management Inc., or WSH. WSH oversees ongoing maintenance, repairs and capital improvements with the costs covered by the Tyler Court fund held by the City of Carlsbad. July 29, 2025 Item #7 Page 1 of 4 Docusign Envelope ID: 4FDEA95B-A48F-4367-A494-E333A0AF4C44 WSH has identified several deferred maintenance items that the 40-year-old building needs. Based on the limited annual rental revenue, not all projects can be funded and completed when needed. Each year city staff work with WSH to estimate a dollar amount for repair and capital needs to appropriate in the budget for the following fiscal year On April 29, 2025, the City Council authorized an allocation of FY 2025-26 CDBG funds, including funds for city affordable housing projects. In addition to those funds, there is a balance of approximately $600,000 in previously allocated CDBG funds available for affordable housing projects. City staff reviewed the capital needs assessment completed for the property and worked with WSH to identify the most needed and “shovel-ready” repairs at Tyler Court that could be completed with CDBG funding. The projects for FY 2025-26 include window and sliding glass door replacement, accessibility improvements, and balcony and catwalk replacement. Based on estimates these projects will cost approximately $600,000. To use CDBG funds for these capital projects out of the Tyler Court Apartments Fund, the City Council needs to authorize an increase in the current year’s expenditure budget for Tyler Court Apartments and appropriate the CDBG funds. The FY 2025-26 operating budget the City Council approved on June 17, 2025, included an estimated budget for Tyler Court Senior Apartments. At that time, the list of CDBG eligible projects, and the operating costs, had not been finalized, so the proposed budget for Tyler Court did not include the necessary funding. The City Council must authorize a budget appropriation of $610,000 to the Tyler Court Apartments Fund and a corresponding transfer of $600,000 from the Community Development Block Grant Special Revenue Fund to the Tyler Court Apartments Fund to cover the cost of the proposed capital repairs. (The difference is because $10,000 in additional operating cost needs are not CDBG eligible). Fiscal Analysis There is no impact on the city’s General Fund. A total of $600,000 of the $610,000 budget authority requested in the Tyler Court Apartments Fund will be offset by Community Development Block Grant revenue which is received on a reimbursement basis from the Federal government. Next Steps Upon the City Council’s approval, the City Manager or designee, will appropriate the additional CDBG and Tyler Court funds to the FY 2025-26 budget, and staff will amend the Tyler Court expenditure budget and transfer offsetting funds from the CDBG Fund. WSH will complete the work at the Tyler Court Senior Apartments in accordance with local, state and federal requirements and oversight by city staff. Environmental Evaluation The proposed action is not a “project” as defined by California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Exhibits 1.City Council resolution July 29, 2025 Item #7 Page 2 of 4 Docusign Envelope ID: 4FDEA95B-A48F-4367-A494-E333A0AF4C44 Exhibit 1 RESOLUTION NO. 2025-186 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE APPROPRIATION OF $610,000 TO THE TYLER COURT APARTMENTS FUND AND A TRANSFER OF UP TO $600,000 FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND TO THE TYLER COURT APARTMENTS FUND FOR REPAIRS AND OPERATING COSTS AT THE TYLER COURT SENIOR APARTMENTS WHEREAS, on Sept. 30, 1999, the Redevelopment Agency of the City of Carlsbad purchased the Tyler Court Senior Apartment Complex for the purpose of providing permanent affordable housing for very low-income senior citizens in Carlsbad; and WHEREAS, the Housing and Redevelopment Commission established a Tyler Court Senior Apartments reserve fund for the operations and/or repairs, renovations, capital improvements or other related activities for Tyler Court Senior Apartments as deemed appropriate by the Agency's Executive Director and/or designee; and WHEREAS, the Housing and Redevelopment Commission previously authorized that it is appropriate and necessary to contract for outside professional services for exclusive day-to-day management of the Tyler Court Senior Apartments, which includes ongoing maintenance, repairs and capital improvements; and WHEREAS, in 2012, ownership of the property was transferred from the Carlsbad Redevelopment Agency to the City of Carlsbad as a result of the dissolution of the Redevelopment Agency per State law; and WHEREAS, the City of Carlsbad is committed to continuing to provide a suitable living environment and to expand economic opportunities for the city’s low-income residents as is outlined in the CDBG Action Plan; and WHEREAS, on April 29, 2025, the City Council adopted Resolution No. 2025-098, approving the expenditure plan of Community Development Block Grant funds which included funds for the City’s Affordable Housing Fund; and WHEREAS, on June 17, 2025, the City Council adopted Resolution No. 2025-136, approving the FY 2025-26 Operating Budget, which included the annual budget for Tyler Court Senior Apartments; and WHEREAS, the Tyler Court Senior Apartments needs multiple capital repairs, which costs exceed the available operating budget. July 29, 2025 Item #7 Page 3 of 4 Docusign Envelope ID: 4FDEA95B-A48F-4367-A494-E333A0AF4C44 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.The proposed action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. 3.That the City Manager, or designee, is authorized to appropriate $610,000 to the Tyler Court Apartments Fund’s FY 2025-26 operating budget and a transfer of up to $600,000 to the Tyler Court Apartments Fund from the Community Development Block Grant Fund’s FY 2025-26 operating budget. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 29th day of July, 2025, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. ______________________________________ KEITH BLACKBURN, Mayor ______________________________________ SHERRY FREISINGER, City Clerk (SEAL) July 29, 2025 Item #7 Page 4 of 4 Docusign Envelope ID: 4FDEA95B-A48F-4367-A494-E333A0AF4C44