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Home My WebLink About2000-03-07; City Council; 15643; Comments On Proposals For CDBG Home Program. g 0 cv . A c :: i-z 3 a : .2 2 8 1 @5 .Z .:: E 7 r- 2-l . . p 2 d 0 5 s - . . UTY OF CARLSBAD -AGENDA BILL AB# 15,643 TITLE. 3-7 -00 SmiTATION OF COMMENTS ON CARLSBAD HOUSING ITG. AND DEVELOPMENT NEEDS AND PROPOSALS SUBMITTED FOR FUNDING UNDER THE CDBGlHOME PROGRAM. DEPT. H/RED RECOMMENDED ACTION: CITY MGR. Hold a public hearing to accept comments on the housing and community development needs of low and moderate income persons within the City of Carlsbad. In addition, the City Council may accept comments on the various proposals which have been submitted for funding under the City of Carlsbad’s 2000-2001 Community Development Block Grant/HOME Investment Partnership Program. ITEM EXPLANATION: BACKGROUND Under Title I of the Housing and Community Development Act of 1974, the City of Carlsbad continues to be eligible to receive funding under the federal Community Development Block Grant (CDBG) Entitlement Program to finance projects which serve the identified needs of low and moderate income persons. As a participant in the San Diego Urban County HOME Investment Partnership (HOME) Consortium, the City will also receive federal HOME funds to provide affordable housing opportunities for lower income households. In identifying the needs of low and moderate income persons, federal regulations require that the City Council “hold at least one public hearing to obtain the views of citizens on the grantee’s (Carlsbad) housing and community development needs.” Initial public hearings to invite comments on the City’s CBDG/HOME Program Consolidated Funding Plan Strategy were held on November 9, 1999, and November 16, 1999. This public hearing will provide another opportunity to obtain comments on the Consolidated Funding Plan Strategy (Exhibit 1) and the City’s housing and community development needs. In addition, this hearing will provide an opportunity for public comment on the specific proposals submitted for funding through the Carlsbad CDBG/HOME Program. The City Council will consider approval of the proposals and funding levels at a future meeting. FUNDING The City of Carlsbad is entitled to receive an anticipated new CDBG allocation of $622,000 during fiscal year 2000-2001. The CDBG Program has $16,654 available for reallocation which was previously allocated to a completed activity. The City has also collected $78,849 from lease payments made by the developer of the Villa Loma affordable housing project, which serve as “program income” to the CDBG Program. The lease payments will be used in conjunction with new CDBG funding allocations to repay the Section 108 loan received by the City for the purchase the Villa Loma property. The total amount of CDBG funds currently available for allocation to eligible projects which meet the needs of low and moderate income persons is $717,504.44. The total amount of HOME funding available for allocation to eligible projects is anticipated to be approximately $226,855. PROPOSALS The City received 23 proposals for use of CDBG/HOME funds from various organizations in response to a Request for Proposals distributed in November of 1999. The proposals were reviewed by the Council- appointed CDBG/HOME Funding Advisory Committee and staff prior to interviewing representatives from the organizations on February 3rd and 9th. The Committee then met again on February 17th and agreed upon funding recommendations outlined in Exhibit 2 for CDBG funds and Exhibit 3 for HOME funds. - Page 2 of Agenda Bill # 15,643 The chart below summarizes the funding available and the maximum amount which can be allocated in each expenditure category: It is staffs recommendation that the City Council accept public comments on the needs of low and moderate income persons and the proposals submitted for funding under the City’s 2000-2001 CDBG/HOME Program to meet those needs, and indicate the Council’s intent to make a final selection of projects and funding allocations at a future meeting. FISCAL IMPACT: A total of $944,359 is available for allocation to the City’s 2000-2001 CDBG/HOME Program. The City Council made a previous decision to use the maximum twenty percent (20%) of the new CDBG allocation, or $124,400, for administration of the City’s CDBG program. The Program has no impact on the General Fund. EXHIBITS: 1. 2000-2001 Consolidated Funding Plan Strategy. 2. Summary of CDBG funding allocation recommendations. 3. Summary of HOME funding allocation recommendation. 4. Copies of CDBG/HOME Project proposals. (On file in the City Clerk’s Office) EXHIBIT 1 CONSOLIDATED FUNDING PLAN STRATEGY CITY OF CARLSBAD CDBG/HOME PROGRAM PY 2000-2001 CITY OF CARLSBAD 2000-2001 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM STATEMENT OF COMMUNITY DEVELOPMENT OBJECTIVES The City of Carlsbad Community Development Block Grant (CDBG) funds will be allocated to organizations, agencies, City Departments, or persons to implement programs or develop/improve public facilities which meet the following community development objectives: 1. AFFORDABLE HOUSING: . Provide direct benefit to lower income persons through the provision or retention of affordable housing units in Carlsbad; l Provide shelter or services to homeless or near homeless persons/families which result in an improved situation through employment, permanent housing, treatment of mental, or substance abuse problems, etc.; and, l Provide direct assistance to lower income households to prevent or eliminate residential Building or Municipal Code violations and/or improve the quality of housing units in Carlsbad through residential (rental and/or owner occupied) rehabilitation programs. 2. SOCIAL SERVICES (GENERAL): l Provide assistance to non-profit public service providers who meet the basic needs of lower income Carlsbad residents. Basic needs are defined as those which provide food, shelter, clothing and, in some cases, health care; l Provide assistance to non-profit public service providers who offer counseling and self- improvement programs/activities for lower income Carlsbad residents; and, l Provide assistance to non-profit public service providers who offer recreational and/or cultural programs/activities for lower income Carlsbad residents. 3. SOCIAL SERVICES (CHILDREN &ADULTS): l Provide assistance to organizations which administer programs that directly benefit lower income children living in Carlsbad. The programs must provide one or more of the following activities: day care, after-school care, cultural enrichment, recreation, health care/immunization or self-improvement. The City may also give priority to single-parent assistance programs such as counseling services; and 9 Provide assistance to organizations which administer programs that directly benefit low income adults living in Carlsbad. The programs must provide one or more of the following activities for adults: employment services, job training, and educational programs. Programs designed for elderly adults only must provide one or more of the following activities: meals, homemaking or personal assistance ‘services, financial assistance services, counseling, transportation, or shared housing or other housing related services. Fund Strategy.doc 2of5 - CITY OF CARLSBAD 2000-2001 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY OF FUNDS AVAILABLE FOR 2000-2001 PROGRAM YEAR Source of Funds Amount($) New Entitlement Grant 622,OOO.OO Program Income 78,849.78 Reallocation of Previous Funds 16.654.66 TOTAL 717,504.44 ComDletedlCanceled Proiect Funds to be Reallocated Activitv Year Status Balance ($1 Section 108 Loan Payment 1999 Completed 16.654.66 TOTAL 16,654.66 Funds Available bv Activity Amount ($1 Public Service Public Facilities, Improvements/Other Program Administration’ Section 108 Loan Payment* 93,300.oo 314,526.44 124,400.OO 185,278.OO TOTAL AVAILABLE FUNDS $717,504.44 1 No proposals will be accepted for CDBG funds available for planning and administrative activities. All funds will be used for the administration of the City’s CDBG Program. 2 Funds will be used for the payment of the City’s Section 108 Loan used for the acquisition of property for the Villa Loma Affordable Housing Project. Fund Strategy.doc 3of5 SAN DIEGO URBAN COUNTY 2000-2001 HOME INVESTMENT PARTNERSHIP PROGRAM STRATEGY The City of Carlsbad, as a member of the San Diego Urban County HOME Consortium, will allocate its HOME Investment Partnership funds to implement the following activities directly, through local housing authorities, or for-profit or non-profit organizations: 1. Propertv Acouisition/Housina Construction HOME funds may be used for property acquisition and all other eligible costs of providing new affordable housing for lower-income persons and special needs groups. 2. Housina Acauisition/Rehabilitation HOME funds may be used for acquisition of existing housing units with or without rehabilitation for lower-income persons and special needs groups. 3. Housina Rehabilitation HOME funds may be used for housing rehabilitation costs incurred separately or in connection with the acquisition of existing housing for lower-income persons and special needs groups. 4. Rental Assistance HOME funds may be used for tenant based rental assistance, related residential security deposit assistance programs, and other eligible related costs. 5. Home Buver Assistance HOME funds may be used for home buyer assistance programs for lower income persons. Such programs may include, but are not limited to, downpayment and closing cost assistance, direct loan to the home buyer, interest subsidy to the lender, or “gap” financing. 6. Administration/Planninq A portion of HOME funding may be used for eligible HOME administration and planning costs, including direct administrative and overhead costs, public information, fair housing, and program development costs. Fundina Process The City’s portion of HOME funds will be awarded to eligible housing activities implemented by the City or by for profit or non-profit organizations on behalf of the City. Staff of the Housing and Redevelopment Department shall evaluate and determine those eligible housing activities to be considered for funding under the HOME Program based upon the housing need priorities established in the City’s General Plan Housing Element and the Consolidated Plan. Staff will present to recommendations for project Fund Strategy.doc 4of5 - funding to the City Council for consideration and final approval. Additionally, the Urban County HOME funding program will be implemented through twice yearly Notices of Funding Availability (NOFA’s). Leveraae In so far as possible, HOME funds will be leveraged with other public and private funding sources to enhance program productivity. Area of Activity HOME funds may be used for housing activities implemented within the City of Carlsbad. SAN DIEGO COUNTY CONSORTIUM 2000-2001 HOME PARTNERSHIP PROGRAM TENTATIVE FUNDING ALLOCATIONS FOR 2000-2001 PROGRAM YEAR Particioatina Jurisdictions Amount ($1 Carlsbad 226,855 Encinitas 204,599 La Mesa 197,846 Santee 185,279 Vista 284,942 Urban Countv 2.126,979 TOTAL $3,226,500 Fund Strategy.doc 5 of 5 - h . EXHIBIT 2 NO. 2 3 4 6 8 16 18 CITY OF CARLSBAD COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 2000-2001 LIST OF PROJECT PROPOSALS AND FUNDING RECOMMENDATIONS Meals on Wheels/Senior Adult Public Service Homeless Shelter FUNDING RECOMMENDED BY COMMITTEE 5,000 5,000 7,000 5,000 6,500 5,000 8,500 6,000 5,000 7,800 6,000 5,500 7,500 6,500 7,000 20,000 60,000 24,526 100,000 80,000 30,000 0 (Proposal Withdrawn) C CITY OF CARLSBAD ’ HOME INVESTMENT PARTNERSHIP PROGRAM 2000-2001 HOME PROPOSAL AND FUNDING RECOMMENDATION NO. AGENCY/PROJECT TYPE OF REQUESTED FUNDING PROJECT FUNDING RECOMMENDED AMOUNT BY COMMITTEE 1 City of Carlsbad/Housing Reserve Affordable $600,000 $226,855 Fund Housing 22 Lifeline Community Services/Deposit Affordable $75,000 0 Assistance Program Housing (Proposal Withdrawn) TOTAL $675,000 $226,855