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HomeMy WebLinkAbout1996-04-09; City Council; 13603; Community FoundationsY OF CARLSBA .. t- ; 1s ' i. ' . Df AB# 1$,h'o3 MTG. Y-cf -76 CI CI DEPT. RECOMMENDED ACTION: CM COMMUNITY FOUNDATIONS 1. Consider alternatives for creating endowment funds to provide fin; support for community groups, supplemental library services or community activities. 2. Direct staff to return with documents to implement the alternative of choice. ITEM EXPLANATION: J y:,.,,.. 'j 2 .' 01 0 L.l 0 CH a aJ 5 C 7.1 U C 0 u rn 2 z U 7.1 aJ .c H a Q\ 1 a \ e z F 0 4 9 '.3 $ 3 0 .- Council Members have expressed an interest in the possibility of establishi Community Foundation with an endowment which could help fund a wide ran! community services and activities. Council currently appropriates $75,000 each to fund communitysupport organizations. It is possible that if a portion of these ft were used to create an endowment in a community foundation, the foundation c encourage donations of matching funds from other sources interested in providing to specific community support groups or services. The Library Board of Trustees has also expLessed an interest in establishir foundation to fund supplemental library activities for which City General Funds art available. Although the Carlsbad Municipal code already gives the Library Boarc ability to accept gifts on behalf of the Library (Sec. 2.1 6.0551, the Board is purs the creation of an independent foundation because they believe that it can be r successful in attracting doners.. If the council wishes to form a single Community foundation, it could be split into separate funds to satisfy the needs of the City and Library Board. One could pro funds for community support groups, and another to support supplemental lib activities such as providing educational, cultural, and recreational materials and eve Monies held within each of the funds would not be commingled. Cities have created endowment funds in a number of ways. Some have found succ in appropriating an endowment to create a fund in an established commu foundation or creating their own communityfoundation, while other attempts to crc community foundations have not been as prosperous or have been dissolved duc management problems and/or lack of donors. . Barbara Harison, author of an article in Western Cities Magazine entitled "How to M Your Community Foundation a Partner in Philanthropy" suggests that cities intere: in creating an endowment fund should consider forming a partnership with established community foundation. She lists the following advantages to sucl partnership: 0 I 7- r- PAGE MI0 OF cr NDA BILL NO. 17 ,bfi3 0 ,’ ” 1 * A Board of Governors with staff support in place to attract and prudently ma the fund. 8 Foundation publications such as annual reports and newsletters will reporl to your fund and help in bringing the message to prospective donors. Professional foundation staff offer expertise in attracting future donations. H A foundation offers .consistency and permanency to the fund as a Collaboration with a foundation builds credibi1.Q for your agency programs established and financially sound community trust. can lead to additional private grant funding for programs. ADVANTAGES TO THE DONORS Provides the maximum tax benefit allowable for charitable contributions. rn Opportunity to give to nonprofit that will benefit community programs wii giving to the government. Assurance that the fund will be managed by credible and professi endowment managers committed to community projects. No cost to the donor that would occur if creating a separate private founda Opportunity to give now and in perpetuity, Community foundations charge an annual administrative fee which generally amoun between one and two percent of afunds value. For example, the San Diego Comml Foundation’s annual administrative fee is one percent of a fund’s value. Dependins the size of the fund balance, this could amount to less than what it would cost the in staff time and fees to establish and manage a foundation. Groups could apply ta San Diego Community Foundation for grants and the City Council could act as advisory committee to the Board of Directors on what groups should receive the gr& Council could also appoint residents to serve as members of an advisory committe The San Diego Community Foundation is planning on opening an office in Encinitas s to better serve donors and community groups in North County. The Foundation provided grants to organizations in North County such as the Carlsbad Senior Cer North County Health Services, North San Diego County Special Olympics, North c01 Housing Foundation, and the Oceanside Senior Citizen Association, An Ocean museum. The City of San Diego has had success with the Foundation’s help in rai! money for a number of funds to help them maintain a number of City of San Diego pa If Council does not wish to enter into a partnership with an established cornmu foundation, they could create one or more endowment funds in a new cornmu foundation. Council may wish to appoint a group of community leaders to work with staff and create a community foundation, which requires the following steps: resident recently established a fund in the Foundation to generate money for an I. PAGE THREE 0 ENDA BILL NO. / 3, b 0.3 0 t* IS w ’ ,J t * A. Select a corporate name and call the Secretary of State’s Name Availa Section to determine if the name is available. 8. Prepare Articles of Incorporation and Bylaws, including names and signa of five directors. (The directors could be the group of community let selected by Council or the group could recruit others for the Board.) C. Prepare and file California State Tax Exemption Application and Articlt Incorporation. Application package must also include Bylaws, proposec year budget, purposes of the foundation and description of planned fundra or other activities. All documents must be submitted to the Secretary of I who certifies Articles of Incorporation and forwards the Tax Exeml Application to the Franchise Tax Board. Application fees total $35. Applicr review process takes approximately 30 to 60 days. D. Prepare and file Federal Tax Exemption Application. A copy of Article Incorporation with the Secretary of State’s certification stamp must be subm with an application for approval. Application fee is $1 50 if foundation is expe to earn less than $10,000 per year for the first four years, and $465 if $10,000 per year is expected. Application review process can take from 2 months. E. Mail Federal Determination Letter to State Franchise Tax Board . a .g ” F. Once the foundation is established, the Council could approve an approprir to create one or more endowment funds within the foundation. A foundation established as a result of Council action would have its advantages, there would be several potential disadvantages as well. ADVANTAGES Establishing a community foundation would provide interested individuals businesses with a tax exempt organization where they may donate prop money, or secufiies to help fund community support groups, suppleme library programs or other activities important to Carlsbad residents. Money in a fund could be used to leverage donations from other sources. I Foundations can respond more quickly to urgent needs in the commu because there is less ‘red tape’ requir4 for expenditure of foundation fu than public agency funds. Some corporate policies prohibit donations to public agencies, so it mighl easier for a foundation to solicit funds from those organizations. .,J I. PAGE FOUR OFaENDA BILL NO. /3,. (9 0 3 ; 1’ I POTENTIAL DISADVANTAGES Some experienced with establishing community foundations, including au Barbara Harison and staff from other California cities, believe that a c involvement with a foundation somehow taints it in the eyes of private dor and those donors are less likely to contribute to a fund if a city is in contr how funds are distributed. Other cities have found that foundations are most successful when they created by a group of residents in reaction to a pressing need in the commu and that cities should avoid involvement in a foundation except for done seed money to it. D The pool of potential donors has already been greatly reduced from Research indicates that foundations created to support specific programs recruitment of donors by the San Diego Foundation. more successful in recruiting donors than foundations aimed at supportir wide range of activities. Additional administrative responsibilities would be assumed by City staff \ have no experience in such an operation. If Council agrees that they are interested in appropriating money to create an endown fund, it is recommended that Council direct staff to work with the San Diego Founda and Library Board of Trustees to establish one or more funds in the foundation to pro!. support for Carlsbad community’ service groups and supplemental library programs. FISCAL IMPACT: If a fund or funds are established in the San Diego Community Foundation, Council r donors. wish to appropriate money for donations to the hnd or funds to help attract prh EXHIBITS: 1. Western Cities Magazine article, ‘HOW to Make Your Community Foundatiol Partner in Philanthropy‘, by Barbara Harison. L - -. ' . ,I (3 - .. i .. .. -Partner 'Ir PA ila n th n by Bar6ara M. Harisow :?. 3. :, . j!d re your fund mising efforts thwarted by public distrust of gov. emment, by the recession and by limited grant funding? While the demand for community services increases, the public funds available to finance the services are decreasing. With voters stub bomb resistant to bond financing and taxes, public officials are eager . to find afternatives to government funding of community programs. YOU can brave today's competitive fund raising climate on your own; or you can approach your community foundation and consider a coi- laborative effort to help position your agency to seek private funding. '6:. . . P J :: ,:;. 3 Many agencies find 'themselves caught in the web of supply and demand in today-s com- petitive fund raising climate. Public and pri- vate agencies need to position themsehres to get the maximUm benefit kom private wg. Success is possible. but only with creativitv. collaboration and credibility. This is most challenging for public agencies as philan- thropists often do not wish to give to the gov- Barbara M. Harison. Principal. Harison b: Associates speciaiizes in project management. pubiic/pnvate paltnetships and&na develop mentfbr public and nonprofit agencies. She has over20swars ojerpm'ence in the manqement oJ-park. recreation and community service jacilities and programs. Beforr ,founding Harison 6 Associates. she was Director of Parks and Recreation for thr Cit? oj Ventura and previod-v sewed as Dirrrtor ci Community Senicesfor the Ci& of Campbell. emment and want assurance of the maximum tax benefit for their donations. Consequendy, foundations are often created to benefit public programs. They are established to support programs in the arts. parks. libraries. educa- tion and other community service areas. Many have been successful and others have struggled to raise and manage their hds. and maintain a board of directors to provide leadership and continuity. livour agency does not have the resources. expertise or time to organize your oun ioundation. a parmership Kith vow Community Foundation may be j~~st what you need to get your hnd raising out of the'recession doldrums. Wmt Arc Conlrnult;t!! Foundations 5 There are over 4W community ioundations nationwide. Foundations are established ~ith thy internal Revenue .%enice (IRS) tax smtus f-I;.AG1-1< ()I: C..4l.I~OR~l.\ L-lT!.. as 501 (c) (3) public charitif endowments. trusts and bec foundations were started b sought a better mechanic accounts for managing and 6 ble funds. The size of foundat new and growing foundal Ventura County Community F assets of SS million to t Community Foundation in Lo S130 million in assets. Found< have a variety of options for c ments or trusts to meet the donors. who may be individua Donors beneiit irom the maxin tion and the funds beneiit from of scaie achieved by poollng in1 reduced administrative costs professional management The concept oi public age1 and some foundations may nc s+ "XY. There are various optio: organuations. with most found2 several types of iunds to meet the individual or organization creating an endowment fund. h example discussed below. a agenp endowment was used. jilth this hnd mechanism in retains control of the hds and r ai earnings used for programs can withdraw principal under c with communiN foundations is ,. 1%. , 0 + ?I)+ /A ; 6' i A (I" 4 I-. dons. The agency can also choose to reinvest the earnings in the fund to ailow the iund to build for greater returns in the funw. A donor advised fund is another option that might be ieasible for your agency. The key benefit of this fund is the ability ofthe indimdud or or@- &tion to maintain active involvement in dis persing the hnds for a variety of charitable purposes. without the annoying paper work oi running a private foundation. Foundations are in business to attract and manage capital for charitable giving. You should not hesitate to explore the possibilities for your agency. How Partnerships Work While serving as Director of Parks and Recreation for the Cip oil-enentura I initiated a partnership with the 1-entura County Community Foundation (VCCF). This part- nership was an important piece of our fund raising thrust for the 90s. Recognizing the need to tap private giving to sustain commu- nity programs. we evaiuated several approack es to meet our fund raising needs. After care ful study of the options available. including develop an agreement wih the VCCF and established three endowment funds to benetit city programs. At that time. fiscal year 199@ 91. the Department had several trust funds totaling approximately 860.000. We trans- ferred these funds to the Foundation and ini- tially set up a Senior Citizen Endowment Fund. Special Olympics Fund and Youth Scholarship Fund. The combined total of the funds in 1993-94 is $85.000. an increase of .S25.000. approximately 40 percent growth over three years even in a depressed ecom my. The Youth Scholarship program is the most active and benefits about 70 disadvan- taged youth a year, providing them the oppor- runity to attend camps and parricipate in recre ational ciasses. Kate McLean. President or YCCF describes the benefit of the partnership 2s "an oppomrnip to bring added value to the communi@ bv maximizing charitable giving through collaboration." Because of the cooperative working rela- tionship with the Foundation. when it came time to initiate a capital campaign for the Ventura Pier. the Foundadon was on board as our partner and established the Pier Endowment Fund. The capital campaign ior the pier. initiated in June oi 1993. has raised over 5j.00.000 for maintenance of the pier. '.i?th the Foundation as a parmer. donor con- iidence in the campaign was enhanced and :'una management resolved. enabline the (.ommunit), steering committee to c-oncrn- Irate on marketing ana promotion. Sot oniv has the partnership enhanced the city's fund raising potential. there is ~1 added benetit or !he good will. credibility nnd positive identity ,:ained from workinq dth ;I wrli-rrr;pty.rtyi ~.rmrnun~tv orranizaIion. :yliG !>v'De ol Inr1- setting up our own foundation, we decided to nership can become "your avenue to private giving." The intent of this hnd is to ensure that the pier wiII be repaired and mainrained in perpetuiy. Funds will be withdrawn as needed for repairs. On a larger scale .the California Corn muniv Foundation. one of the oldest founda tions in the nation. stepped forward as a part- ner in response to the 1994 Northridge earthquake. This ioundation is a collection of permanent charitable funds created by pee pie and organizations for the bene& of in& viduals and communities in Greater Los Angeles. The Board of Governors approved an unprecedented invasion of principal to pro- vide S8OO.OOO in grant monies for nonprofit organizations to respond to damage caused by the earthquake. Besides the initial fund- ing the Foundation raised S850.000 for the Earthquake Relief Fund from current donors. other foundations and the public. Grants have been allocated to a vast array of community- based agencies for repairs. equipment replacement and relocation. Many agencies receiving grants provide services that support public facilities and programs. Some em- ples are a grant or $59.000 to the Library Foundation of Los rlngeles for bilingual read- ing material and inventory for four bookme biles serving the San Fernando Vallev. where eleven branches are closed due to damages: and grants to arts organizations including Actors "Slley in Sorth Hollywood and the .4man Folk Ensemble: and in severe@ affect- ed communities. such as El Projecro del Banio in Pacoima and Clinicia del Camino Real in Fiiore. IIGu &-I Partnership WitIz L-I Fo LI tf da t io.0 ? Because it is not possible to meet all the needs of the community with public tax dol- lars. creating a partnership provides the op portunity to obtain iunds from private donors through the endowment iund set up with a foundation. The creation or a fund or endow- ment with a foundation defers several advan- tages to the agency and to potential donors. "vantages to the -4genClv: .%iity to amact private donors through the IF& 5Ol(c, (3) mx (. . ::-ation or' the foun- dation. .Alleviates the burden oithe led and han- cia1 administration oi 3 separate trust or ioundation. Interest earnings or' ioundation assets are pooled. oiierinq the potrnrial ior higher cwnings. A Board of GovPrnors wilth sratf support in place to amct mci prudentiv manage the endowment fund. Foundation publications such :IS annual reports anti newletters will rcxpon ~hs to 0 your fund and help in bringing tb to prospective donors. Professional foundation staff offel in attracting future donations. A foundation offers consistenq and financiallysound communitJ Cobboration with a foundation bl ibility for your agency program lead to additional private grant fi, your programs. Advantages To The Donors: Provides the maximum tax bent able for charitable contributions. Opportunity to give to nonprofil benefit community programs wi ing to the govemment. Assurance that the fund will be by credible and professional enc managers committed to cornu jects. No cost to the donor that would oc( ating a separate private foundatior Oppormnity to give now and in pe Esfabl;slz;na TLe Endowmant Fund Creating a fund in a foundation c less than a day. The initial contr required to create a fund varies: it ci low as S1,OOO or up to S25.000. The C, Community Foundation. which cc manages 300 donor advised funds fo ety of charitable purposes requires mum donation of S1O.OOO. An agency an agreement with the foundation to e! and manage the fund. stipulating the ! purpose for the domion and deposio tiai donation. Depending on the type created. the agency can retain an a& in directing the grants from the fund receive annual earnings for a specifieo table purpose. Poliaes on the use of pr vary, but many foundations allow its us is the donor's wish. The kequency o drawals kom the fund is generally not cem: however. if there is no activity fund and it fdls below SlO.O00 over a or period, some foundations will request bution of the funds. Policies on fund di, tion vary from foundation to foundatiol best to contact your local foundation fa cific policies. Foundations will charge a fee for th vice of managing the iund. The metk assessing the fee may vary but will gen equal one to two perrent of total fund 3 The current fee for the California Corn. Foundation is ten percent of the in( earned. VCCF fees are 1.75 percent o fund's value. The funds are currently ea six to seven percent on the average. manency to the fund as a well e! Conti i i i 1' t 1 ., _. r* ; , I ,Cobzmunity Foundation. Continued ... li your agency has no one wirh a bequest 'J lined up for the initial conmbution. you may consider existing trust accounts, private foun- dation funds, or funds generated from a fund raising campaign similar to the Ventura Pier Campaign. I recently worked with the City of San Fernando to create a San Fernando Fund within the California Community Foundation. Civ Adminimtor Mary Smnn wants to cap ture private funds for youth programs in the community. The city is considering the pos- +mu+, 0 " A - u " .c 0 .- sibilitv oi cornmining - :O.OO with the chal- lenge to the communin. IC) raise SIc).OOO born corporate or private donors to establish the endownent fund to benefit the youth of the communin.. An agency can set up as many special pur- pose iunds as it wishes or pool the iunds into one iund. essentially haLing your own foun- dation without the administrative overhead. Apart from securing the initial capital. there really are no obstacles to setting up a fund. TO: City Council, City Manager fr?j) SUBJECT: CITYLINK Service w CITYLINK offers California cities unlimited access to legislation; ..$ y online forums and internet mail, for 5600 per year, with no to plus i or . " - :.y.:- .>& connect charges. RECOMMENDATION: Subscribe immediately. e@ -# TO Subxribe, CITYLINK call 1-800-766-4566 ~-mQZaB ': 9 "'* 6- This. Space For Lease. For complete advertising information, . call (916) 444-5790 CIb w 1 . . , .... , ,. . . . . .. . . .. . I -..--- Some may be concerned w over the money. However, I provide for agency controi Many agencies se~ up thei initially and ultimately m community ioundation. whe rive burden overwhelms th ferring their donarions. the increased. ' ' Fund development in tf increasingly comperitiveanc. public and nonprofit agenc work cohborahely with 0th and maintain credibility as I will succeed. Pnvate and 1 agencies are iooking iavorai that are collaboradve efforts. grant criteria spedcally call The Sanra Barbara Founda example oi a bundadon supr tive and nonduplicative projec Foundation has set aside $200. Agency Project Grant Progran cooperation and collaboration cies serving the needs of S County. Charles Skosser, Exec stated that "the Trustees are 1( jects which link the nonprofit and private secto~s.- .4U the m iocal govemmenr agencies to H munity foundations to link witi zations in joint fund raising effc duplication of &on It has bee public agencies to open the dc funding. Pamering with you; foundation as your iund manag With a little creativity, you your agency ior the competitive of the future and reap the tangit gibie benefits or a collaborative fund raising.potendal will be grea and your agency credibility iml success in Ventuza. bta Barbar; collaborative programs and the Relief Fund of the California Corn dation are examples of partners anthropy bringing community ir through private giving. For spec& detaiis on the oppm able toyatr agenp or otherlocal no nizations you snouid contact you1 munityfoundation &ce. A good p the search jor infirmation is the Community Foumiutwn at (213) < are public and nonprofit pam to improve access. ., 0 WIT 3 2 '''I CITY OF CARLSBAD MI COMMUNITY DEVELOPMENT BLOCK GRANT PROGRA APPLICATION REVIEW PROCESS PURPOSE To set forth procedures to be used for allocating the annual City of Carlsbad Commu Development Block Grant (CDBG) Entitlement funds. BACKGROUND Each year the City of Carlsbad is entitled to receive funding from the U.S. Department of Hou! 8, Urban Development, through the Community Development Block Grant (CDBG) Program finance projects and/or services which benefit low/moderate income persons/households wi the community. In response to the City's "Request for Proposals" for the CDBG Program, the ( receives numerous applications for funding from local service agencies. In an effort to facilii the activity selection and CDBG funding allocation process, the following procedures hl been established for the program. OBJECTIVE The intent of this process is to streamline the CDBG funding allocation procedures c implement specific proposal evaluation criteria which can be used to assist in the selectior activities for funding on an annual basis. This process describes the CDBG application proc, outlines the review process for activity selection and funding recommendations; a summarizes the public hearing requirements. A Community Development Block Grant Fund Advisory Committee, will be appointed to review and make recommendations to the ( Council on funding levels for each of the CDBG eligible activities submitted by local sew organizations and/or city departments. PROCEDURES The goal of the City of Carlsbad is to develop a well balanced CDBG program that reflects various public service and public facility needs of its low/moderate income residents, with th primary areas of focus: 1) affordable housing; 2) general social services for lower incc persons; and 3) services for children and adults, including the elderly. The following procedures outline the steps to be used by the CDBG Funding Advisory Commit and staff of the Housing and Redevelopment Department in selecting activities which prow for a well balanced CDBG program and in making recommendations for allocation of i CDBG funds on an annual basis: 1. Interested persons, non-profit organizations, City departments and others may submi request for CDBG funding on the appropriate application form. A public notice ir local newspaper of general circulation will indicate how to obtain an application a the due date for all proposals. Generally, the application review process will begir November or December of each year. 2. Upon receipt of proposals/applications for funding, Housing and Redevelopmi Department staff will make a determination regarding the eligibility of each propos project for funding consideration under the CDBG program. Requests for CDBG fur shall be considered by the City of Carlsbad for funding only if the application is complc and demonstrates that all of the following conditions have been met: ' .. APPLICATION REVIEW PRaS 0 ,PAGE 2 I a. The governing board formally authorized the organization's request for CDBG funds from the City of Carlsbad; b. The proposed use of funds is an eligible activity, per the Federal regulations for the CDBG program; c. The proposed use of funds meets at least one national objective for the CDBG program, as established by the Federal regulations: and, d. The proposed use of funds meets at least one local objective for the CDBG program, as established by the City of Carlsbad's Community Development Plan. 3. All complete applications for CDBG funds, which have met the conditions outlined above, shall be considered eligible for funding consideration and shall continue in the activity selection and funding allocation process. All applications which are deemed ineligible for funding consideration shall receive written notification that the application for CDBG funds is ineligible due to a specified reason and will not be reviewed further by staff or the Advisory Committee. 4. The Community Development Block Grant Funding Advisory Committee will serve as an . advisory committee to consider the needs of low/moderate income Carlsbad residents and to make recommendations to the City Council for the funding of activities which are the "most qualified" to meet those needs. The Committee will consist' of seven (7) members and will include the following representatives to be appointed by the City Council: Senior Commissioner, Planning Commissioner, Housing Commissioner, and four citizens-at-large (one from each quadrant of the City). The CDBG Program Administrator will serve as staff liaison to this committee for the purpose of considering the funding recommendations for this program. 5. Each eligible proposal/application for CDBG funds shall be reviewed and evaluated, for ranking purposes, based upon the criteria outlined below. The CDBG Funding Advisory Committee, as well as Housing and Redevelopment Department staff, will evaluate each eligible proposal/application for funds and assign a score based on a maximum 100 point scale using the following criteria: a. ORGANIZATIONAL ABILITY/CAPACITY 1. Experience of organization in providing services to low/moderate income persons/households and in providing the proposed activity. implement proposed activity. administration of CDBG or other State or Federal funds. iv, Level of ability demonstrated by organization to provide services and to adhere to applicable local, State, or Federal regulations governing funding sources. II. Capacity/ability of staff assigned to II. Organization's experience with the b. FINANCIAL CAPACITY/STABILITY i. Leveraging of CDBG funds with outside resources to finance proposed activity. II. Relatively stable financial position Maximum of 25 Points 5 Points 5 Points 5 Points 10 Points Maximum of 20 Points 10 Points 10 Points 7. , ‘/ ” * * APPLICATION REVIEW PR ass PAGE 3 e c. BENEFITS/BENEFICIARIES Maximum of 50 Points I. Accessibility of activity for use by Carlsbad 10 Points II. Extent to which proposed activity benefits low 15 Points clients. income persons/households (50% of median family income). income Carlsbad households ... 111. Extent to which proposed activity benefits low 15 Points iv. Extent to which proposed activity meets the 10 Points b. IMPLEMENTATION OF ACTIVITY Maximum of 5 Points needs of low income residents 11. Demonstration of organization’s readiness to 5 Points implement proposed activity A copy of the Evaluation Form to be used by the Advisory Committee and Housing ( Redevelopment Department staff is attached as Exhibit A for information purposes on11 6. To facilitate the evaluation of eligible proposals/applications based upon the crite outlined above, applicants will be given the opportunity to participate in a 10 minl The public will also be given the opportunity to comment on the eligible proposals be considered for funding. The noted interview will provide the Advisory Committee with an opportunity to obi additional information regarding the organization and the proposed activity that m not have been provided in or was unclear within the application. It will be sugges‘ that applicants provide any documents which may assist the Advisory Committee c staff in evaluating the proposal/application &to this interview. interview with the CDBG Funding Advisory Committee and staff during a public meeti 7. Following the interview and evaluation of each eligible proposal/application, staff categorize the eligible proposals/applications into the following three classifications: a. Public services/facilities for the purpose of providing or maintaining afforda b. Public services/facilities for the purpose of providing general social services; ar housing: C. Public services/facilities for the purpose of providing specialized social sewit for children and adults. Staff will average the evaluation scores given by each Advisory Committee member a Housing and Redevelopment Department staff. The average score received will then used to rank order each of the proposals/applications within each of the thr classifications for public service/facilities noted above. This information will then presented to the Advisory Committee for further review and evaluation to determine t level of funding to be recommended for each proposal. 8. It is the Advisory Committee’s responsibility to make a recommendation on the level CDBG funding to be allocated to the eligible activities according to the order I proposals/applications were ranked within each classification. The Advisory Commit1 shall work from the top of each list to the bottom, taking one proposal at a time or rotation basis from each classification, and recommend a funding level for the propc until all available CDBG funds have been allocated to eligible activities. The minim! funding level for each recommended activity shall be $5,000. This process will be used make funding recommendations for both public service and public facility proposals. APPLICATION REVIEW PR as e 1 PAGE 4 EXAMPLE: The Advisory Committee shall take the first public service activity listed within "Affordable Housing" and make a funding recommendation for this activity. Then, the Committee will consider a funding recommendation for the first public service activity listed under "General Social Services" and so on. Once a recommendation for funding then move to the next activity listed. This process will be repeated to also develop funding recommendations for public facility and improvement proposals. has been made for an activity within each of the three classifications, the Committee will COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUND ALLOCATION PROCESS PUBLIC SERVICE ACTIVITIES/PROJECTS Housing Children 8, Adults Services Social Services - General Social 1. TOTAL TOTAL TOTAL 5. 5. 5. 4. 4. 4. 3. 3. 3. 2. 2. 2. 1. 1. TOTAL FUNDS ALLOCATED $ TOTAL FUNDS AVAILABLE $ FUNDS OVER/UNDER TOTAL AVAILABLE $ I I - ~~ ~~ ~~ ~~ ~~ A copy of the form to be used to identify the project classifications and rank order the individual proposals for funding consideration by the Advisory Committee and staff is attached as Exhibit B for information purposes only. 9. The Advisory Committee's recommendations will be presented to the City Council for action during a public hearing. All applications submitted and the funding recommendations made by the Advisory Committee will be submitted to the City Council for consideration by April of each year. 10. The City Council will consider the recommendations of the Advisory Committee during a public hearing. After accepting public comments, the City Council may accept the Committee's recommendations as submitted or modify them as necessary to meet the needs of low/moderate income persons within the community. 11. Following City Council action, a Consolidated Funding Plan, including the list of selected activities and funding amounts for the CDBG Program, will be submitted to the U.S. Department of Housing and Urban Development by May 17th for final approval. REVIEW.PR0 Revised by City Council: January 10, 1995 (Resolution No. 95-6) L i rc 1 1 ,a @.BIT 4 CITY OF CARLSBAD G 1998-99 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM REQUEST FOR PROPOSALS I. Introduction Funding for the federal Community Development Block Grant (CDBG) Program is authoriz under Title I of the Housing and Community Development Act of 1974, Public Law 93-383. 1 program provides grants on a formula basis to entitled cities and counties to develop vial urban communities through the provision of decent housing, a suitable living environment a by expanding economic opportunities for low and moderate income persons. The amount of each entitlement grant is determined by statutory formula which uses seve objective measures of community need, including the extent of poverty, population, hous' overcrowding, age of housing and growth lag in relationship to other metropolitan areas. Entitlement communities and consortiums, such as the City of Carlsbad, develop their o programs and funding priorities (see CDBG/HOME Funding Plan Strategy and 1995-2( Consolidated Plan). However, maximum feasible priority will be given to activities which meel least one of the local community development objectives and at least one of the three bro national objectives for the CDBG program or best meet the housing need priorities establishec the City's Consolidated Plan. II. Proaram DeveloDment The City of Carlsbad is eligible to receive CDBG funds on an annual basis. In order for Carlsk to receive the grant, a list of community development objectives must be developed along v an outline of proposed projects. The City of Carlsbad must also certify that it has followed approved Consolidated Plan for Housing and Community Development and that not less tt- 70% of the CDBG funds will be used for activities that benefit low and moderate income persc for your reference. 111. Reauest for ProDosals The total amount of CDBG funds from the U.S. Department of Housing & Urban Developm estimated to be available for Carlsbad in 1998-99 is $586,286.80. This figure includes expected new CDBG allocation of $556,200 and $30,086.80 which will be reallocated fr previously approved projects which were canceled or were completed with a surplus of fun( The City of Carlsbad has no program income from previous CDBG Entitlement program years. To develop a 1998-99 CDBG program which meets the needs of the low and moderate inco population, Carlsbad requests assistance from members of the community. Citizen participal is critical to the success of the Carlsbad CDBG program. Therefore, we are encouraging community members to consider the needs of low and moderate income persons wil Carlsbad and submit an application for a proposed project(s) or service. The Proposal Rev Process for the CDBG Program is attached for your information. Activities that can be carried out with CDBG funds may include, but are not limited to: pul service activities, acquisition of real property, relocation and demolition, rehabilitation residential and nonresidential structures, construction of public facilities and improvements c conversion of schools for eligible purposes. In addition, CDBG funds may be used for activi Low and moderate income guidelines are based upon household size and a chart is attaci- .. > .i * 1 * c LCDBG Program a e Request for Proposals Page 2 relating to energy conservation and renewable energy resources. Assistance may also provided .to profit-motivated businesses to carry out economic development activities whi benefit low and moderate income persons/households. The types of activities that generally are not eligible for CDBG funding include: buildings for i general conduct of government, political activities, income payments, construction of n' housing and other facilities offering 24-hour care. The City of Carlsbad is committed to using CDBG funds to finance projects and services wh provide direct benefit to low and moderate income residents. Every project proposed for 1 CDBG program must address at least one of the three broad National Objectives for 1 program. The National Objectives are: 1. Provide direct benefit to low and moderate income persons; 2. Aid in the prevention or elimination of slums or blight: and 3. Meet other community development needs having a particular urgency becal existing conditions pose a serious and immediate threat to the health or welfare of i community where no other financial resources are available to meet such needs. In addition to meeting the National Objectives, every project proposed for CDBG funding n- meet at least one of the local Community Development Objectives which are: 1, AFFORDABLE HOUSING: Provide direct benefit to lower income persons through the provision or retent of affordable housing units in Carlsbad; Provide shelter or services to homeless or near homeless persons/families wh result in an improved situation through employment, permanent housi treatment of mental, or substance abuse problems, etc.; and, Provide direct assistance to lower income households to prevent or eliminc residential Building or Municipal Code violations and/or improve the quality housing units in Carlsbad through residential (rental and/or owner occupic rehabilitation programs. 2. SOCIAL SERVICES (GENERAL): Provide assistance to non-profit public service providers who meet the bc needs of lower income Carlsbad residents. Basic needs are defined as thi which provide food, shelter, clothing and, in some cases, health care; Provide assistance to non-profit public service providers who offer counseling c self-improvement programs/activities for lower income Carlsbad residents; anc Provide assistance to non-profit public service providers who offer recreatio and/or cultural programs/activities for lower income Carlsbad residents. J ;. ’ “c I“ 3 0 CDBG Program Request for Proposals Page 3 3. SOCIAL SERVICES [CHILDREN 8, ADULTS): Provide assistance to organizations which administer programs that direc benefit lower income children living in Carlsbad. The programs must provide c or more of the following activities: day care, after-school care, cult1 enrichment, recreation, health care/immunization or self-improvement. The C may also give priority to single-parent assistance programs such as counsel services; and Provide assistance to organizations which administer programs that direc benefit low income adults living in Carlsbad. The programs must provide one more of the following activities for adults: employment services, job training, c educational programs. Programs designed for elderly adults only must prov one or more of the following activities: meals, homemaking or personal assistar services, financial assistance services, counseling, transportation, or shal housing or other housing related services, It is the intent of the City to only approve CDBG-assisted projects which do not result in 1 displacement of low/moderate income persons from their homes. Therefore, all persc submitting project proposals to the City should consider the displacement impact UF low/moderate income households. IV. Submission of Reauest For ProDosals All persons, organizations, agencies, etc. wishing to submit an application for fund consideration under the CDBG program must obtain a “Funding Proposal Application” from City of Carlsbad Housing and Redevelopment Department. Interested persons may reques Funding Proposal Application by calling (760) 434-281 1. All project proposals must be submitted to Leilani Hines prior to 200 p.m. on December 8, 1’ at the following address: CITY OF CARLSBAD HOUSING AND REDEVELOPMENT DEPARTMENT 2965 ROOSEVELT STREET, SUITE B CARLSBAD, CA 92008 A schedule of applicable hearing dates and other significant meetings will be mailed to persons submitting a proposal for consideration. IV. Information Session of Amlication Review Process The City will hold an information session on the application review process. Funding Propc Applications can also be obtained by attending the scheduled information session. Training include CDBG funding eligibility, completing the CDBG application, the application revi process and program obligations once awarded funding. An announcement of this informai session will be mailed to all persons requesting information on the City’s CDBG program. A 3, ’ -4 l-1 3 I) 0 CDBG Program Request for Proposals Page 4 The Information Session has been tentatively scheduled for the following date: CDBG Application Workshop City of Carlsbad Housing and Redevelopment Conference Room 2965 Roosevelt Street Suite B November 10, 1997 3:OO to 300 p.m. V. Questions and Comments If you have questions or comments regarding the City of Carlsbad 1998-99 CDBG program m contact Leilani Hines at (760) 434-281 1, between 8:OO a.m. and 500 p.m., Monday throu Friday. VI. Attachments A. Low and Moderate-Income Guidelines 8. City of Carlsbad Funding Plan Strategy C. City of Carlsbad 1995-1 999 Consolidated Plan Priorities D. Checklist of required documents to be submitted E. Application for the City of Carlsbad 1998-99 CDBG Program F. CDBG Proposal ReviewFunding Recommendation Process G. Proposed CDBG/HOME Program Development Activities Schedule I .- .e . L'P 0 e COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM INCOME LIMITS PY 1997-98 (Based upon 1997 HUD Income Data for Sun Diego County Effective December 1996) 5 19,250 32,100 5 1,300 5 1,301 8 18,100 30,150 48,200 48,20 1 7 16,900 28,200 45,100 45,101 6 15,750 26,250 42,000 42,OO 1 Revised: 07/01/97