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HomeMy WebLinkAbout2002-03-05; City Council; 16671; Housing and Community Development NeedsCITY OF CARLSBAD - AGENDA BILL \B# ,/b,,& 7/ THE CDBGIHOME PROGRAM. IEPT. HIRED CITY ATPI. HOUSING AND COMMUNITY DEVELOPMENT NEEDS TG. 3/5/02 DEPT. HD.G<d? m: SOLICITATION OF COMMENTS ON CARLSBAD AND PROPOSALS SUBMllTED FOR FUNDING UNDER RECOMMENDED ACTION: Hold a public hearing to accept comments on the housing and community development needs of lower the various proposals that have been submitted for funding under the City of Carlsbads 2002-2003 income households within the City of Carlsbad. In addition, the City Council may accept comments on Community Development Block GranVHOME 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 programs that serve the needs of lower 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 lower 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 6, 2001. 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 2002-2003 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 $632,000 during fiscal year 2002-2003. The CDBG Program has $84,672 available for reallocation that was previously allocated to the canceled single-family home rehabilitation program. The City has also collected $44,685 from lease payments made by the developer of the Villa Loma affordable housing project, which serves 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 of the Villa Loma property. The total amount of CDBG funds currently available for allocation to eligible projects that meet the needs of lower income persons is $761,357. The total amount of HOME funding available for allocation to eligible projects is anticipated to be approximately $484,933. PROPOSALS The City received 25 proposals for use of CDBGlHOME funds from various organizations in response to a Request for Proposals distributed in November of 2001. The proposals were reviewed and evaluated by the Council-appointed CDBGlHOME Advisory Committee and staff prior to interviewing representatives from the organizations on January 31 and February 4th. The Committee then met again on February 11 th and developed the funding recommendations outlined in Exhibits 2 and 3. Page 2 of Agenda Bill # /i 4' / 1,: I The chart below summarizes the funding available and the maximum amount that can be allocated in each expenditure category: For information purposes, it should be noted that the City Council has previously directed that all allocations for facility related projects be granted with a matching funds requirement with the condition that matching funds must be used on the project prior to the release of CDBG funds. Also, facility related allocations of over $100,000 will be made in the form of a deferred, interest free loan in addition to the matching funds requirement. The loan is forgiven after 20 years if the facility is operated as required in the subrecipient agreement for use of the funds. ADVISORY COMMITTEE RECOMMENDATIONS The Advisory Committee has made the funding recommendations noted in Exhibits 2 and 3 to this report. The Committee has recommended a condition for the funding for the proposed Join Hands-Save a Life youth center and has a comment to share on the recommendation for funding for the Boys and Girls Club. The Committee is recommending that the Boys and Girls Club be allocated one-half ($12,500) of the $25,000 they are requesting for improvements to their facility. The Boys and Girls Club's proposal requested that we fund the entire project costs to add heating facilities to the pool area, paint interior surfaces, and replace worn carpet with tile. However, this is not possible with the existing matching funds requirement. The Committee is recommending that the Join Hands proposal for development of a youth facility be allocated the full requested amount ($150,000) since the cost of completing the project will require additional matching funds. The Committee is also recommending that a condition be placed on the Join approved by the Housing and Redevelopment Director prior to approval of a funding agreement with the Hands allocation requiring that a five-year business plan for operation of the proposed youth center be organization. This recommendation is made as a result of the Committee's concern that Join Hands did not appear to have a strategy for funding operations of the proposed facility once it is actually constructed. The Committee supported the project, but wanted to ensure that adequate thought has been given to future operations funding before any CDBG funds are disbursed for construction of the facility. a Page 3 of Agenda Bill # )L,I b’ 7 1 RECOMMENDATION: It is staffs recommendation that the City Council accept public comments on the needs of low income persons and the proposals submitted for funding under the City’s 2002-2003 CDBGlHOME 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 $1,246,290 is available for allocation to the City’s 2002-2003 CDBGlHOME Program. The City Council made a previous decision to use the maximum twenty percent (20%) of the new CDBG allocation, or $126,400, for administration of the City’s CDBG program. The Program has no impact on the General Fund. EXHIBITS: 1. 2002-2003 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) CONSOLIDATED FUNDING PLAN STRATEGY CITY OF CARL,SBAD CDBG/HOME PROGRAM PY 2002-2003 CITY OF CARLSBAD 2002-2003 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM STATEMENT OF COMMUNITY DEVELOPMENT OBJECTIVES The City of Carlsbad Community Development Block Grant (CDBG) funds will be allocated to facilities which meet the following community development objectives: organizations, agencies, City Departments, or persons to implement programs or develop/improve public 1. AFFORDABLE HOUSING: Provide direct benefit to lower income persons through the provision or retention of affordable housing units in Carlsbad; 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, 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): 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; Provide assistance to non-profit public service providers who offer counseling and self- Improvement programs/activities for lower income Carlsbad residents; and, 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): 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 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, transportation, or shared housing or other housing related services. homemaking or personal assistance services, financial assistance services, counseling, Fund Strategy.dE 2 of 5 CITY OF CARLSBAD 2002-2003 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY OF FUNDS AVAILABLE FOR 2002-2003 PROGRAM YEAR Source of Funds Amount($) New Entitlement Grant 632,000 Reallocation of Previous Funds 84,672 TOTAL Proaram Income 44.685 761,357 Comdeted/Canceled/lnactive Proiect Funds to be Reallocated Activitv - Year Status Balance ($1 Single Family Residential Rehabilitation Program 1996 Inactive 84,672 Funds Available by Activity Public Service Affordable Housing Public Facilities, ImprovementdOther Program AdministratiodFair Housing' Section 108 Loan Pavment' TOTAL AVAILABLE FUNDS Amount ($1 94,800 179,753 179,753 126,400 180,651 $761,357 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 propetty for the Villa Loma Affordable Housing Project. Fund Straiegy.doc 3 of 5 6 SAN DIEGO URBAN COUNTY 2002-2003 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. 2. 3. 4. 5. 6. ProDertv AcauisitionlHousina 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. Housina AcauisitionlRehabilitation HOME funds may be used for acquisition of existing housing units with or without rehabilitation for lower-income persons and special needs groups. 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. Rental Assistance HOME funds may be used for tenant based rental assistance, related residential security deposit assistance programs, and other eligible related costs. Home Buyer Assistance HOME funds may be used for home buyer assistance programs for lower income cost assistance, direct loan to the home buyer, interest subsidy to the lender, or “gap” persons. Such programs may include, but are not limited to, downpayment and closing financing. AdministrationlPlanninq 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 Fund Strategy.doc 4 of 5 7 Element and the Consolidated Plan. Staff will present to recommendations for project 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 (NOFAs). 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. CITY OF CARLSBAD HOME INVESTMENT PARTNERSHIP PROGRAM SUMMARY OF FUNDS AVAILABLE FOR 2002-2003 PROGRAM YEAR Tentative 2002-2003 HOME Funding Allocation for Carlsbad $250,522 HOME Funds from Residential Rehabilitation Program Available for Reallocation $233,272 Previous Carlsbad HOME Allocations to Housina Reserve Fund $629.896 TOTAL $1 ,I 13,690 Fund Strategydoc 5 of 5 I EXHIBIT 2 CITY OF CARLSBAD LIST OF PROJECT PROPOSALS AND FUNDING RECOMMENDATIONS 2002-2003 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM See attached page for special conditions recommended to be added to these projects. 4 Exhibit 2 Page 2 Boys and Girls Club (#E) The Boys and Girls Club is requesting $25,000 to replace carpet with tile, paint walls and install heater for pool area. Advisory Committee Members are recommending that $12,500 be allocated for this project as the City Council has approved a City Council CDBG Ad Hoc Committee recommendation to require that facility related allocations include a condition that matching funds be used on such projects prior to the release of CDBG funds for those uses. Join Hands-Save a Life (#23) Join Hands-Save a Life is requesting $150,000 to develop a youth center. The Advisory Committee is recommending that $150,000 be allocated for the project as requested since the cost of the project will require that amount to be used in additional matching funds. Pursuant to prior City Council direction, facility related allocations for over $100,000 are in the form of deferred, interest free loans that are forgiven after 20 years if the facility is operated as required in the subrecipient agreement for use of the funds. It is also recommended that a condition be placed on this allocation requiring that a 5-year business plan for operation of the facility be approved by the Housing and Redevelopment Director prior to approval of an agreement for use of the funds. EXHIBIT 3 CITY OF CARLSBAD HOME INVESTMENT PARTNERSHIP PROGRAM 2002-2003 HOME PROPOSAL AND FUNDING RECOMMENDATION NO. REQUESTED TYPE OF AGENCYIPROJECT PROJECT FUNDING AMOUNT RECOMMENDED BY COMMITTEE FUNDING 24 75,000 75,000 Affordable Community Housing of North County/Solutions Family Center Transitional Housing Housing Fund Housing 25 408,794 483,794 Affordable City of Carlsbad/Housing Reserve TOTAL 558,794 483,794 I March 5,2002 TO: ACTING CITY MANAGER VIA: HOUSING AND REDEVELOPMENT DIRECTOR @ FROM: Management Analyst CDBGMOME PROGRAM ALLOCATIONS The attached pages provide information requested by City Council Members regarding funding allocations for the CDBG/HOME Program over the last two years. Please let me know if any additional information is needed. F~NK BOENSCH Attachments c: Community Development Director CITY OF CARLSBAD 2001-2002 CDBWOME PROGRAM CITY COUNCIL APPROVED FUNDING AMOUNTS APP. $7,500 $40,465 Public Services Bridae HousindEducation and 1 BY COUNCIL AMOUNT FUNDING PROJECT NO. FUNDING REQUESTED TYPE OF AGENCYIPROJECT APPROVED. L a, d a > - .- cn 0 sc " a, nQ. L Un .I Qo c- 0) .- L T a, cn 0 0 u- S L S m =5 L a, II =5 > 5 0 Y 5 5 c L L in S I a, x m m 0 c/) m m a, a, 0 c .- W > 0) 0) a, n a, x 0 .- n 8 z L L a, S c, c m L c, S 0 .- "r S m U m L 6 CI .- cn cn .- E E ~ 0 ~ m a m L U L; cn cn U m S " U U c, cn u v) 8 cn m a, - 0) S .- a, c r 3 cn II L r S a, 0 I 0 z 0 z n cr) U S m . uo .I 'E m L - m S . iFF 0 *CI sm cn S 0 m 0 0 m 0 S U S 3 .I + - - .I I. L PROOF OF PUBLICATION (2010 & 2011 C.C.P.) STATE OF CALIFORNIA County of San Diego I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years and not a party to or interested in the above- entitled matter. I am the principal clerk of the printer of North County Times Formerly known as the Blade-Citizen and The Times-Advocate and which newspapers have been adjudicated newspapers of general circulation by the Superior Court of the County of San Diego, State of California, for the County of San D,iego, that the notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: February 24, 2002 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at San Marcos , California this 25th day February, 2002 of - FORTH COUNTY TIMES Legal Advertising This space is for the County Clerk's Filing Stamp Proof of Publication of members 01 the community Citize the success of the Carlsbad Therefore. the City invites all comm the needs of lower income persons wi Legal 72379. February 24,2002 b i :, 2002-2003 Community Development Block GranUHOME Program City of Carlsbad Notice of Public Hearing The citizens of Carlsbad and other interested parties are hereby notified that Carlsbad's City Council will hold a public hearing on Tuesday, March 5, 2002 at 6:OO pm in the Council and moderate income persons in Carlsbad and discuss projects to be included in the City's Chambers located 1200 Carlsbad Village Drive to accept public comments on the needs of low 2002-2003 Community Development Block Grant (CDBG)/HOME Program. The City has approximately $767,357 available for allocation to eligible CDBG projects and $484,933 to eligible HOME projects. The City of Carlsbad is committed to using CDBGlHOME funds to finance projectslservices that provide direct benefit to lower income residents. To develop a CDBGlHOME program that meets the needs of the low and moderate-income population, the City of Carlsbad requests assistance from members of the community. Citizen participation is critical to the success of the Carlsbad CDBGlHOME program. Therefore, the City invites all community members to to provide comments on the housing and community development needs of low and moderate- consider the needs of lower income persons within Carlsbad, to attend the public meetings, and Carlsbad's 2002-2003 CDBGlHOME Program. Those proposals selected for funding will be income persons and the various proposals that have been submitted for funding under to meet the needs of lower income Carlsbad residents. identified within the Consolidated Plan as the activities the City will pursue in the upcoming year The City has received a total of 25 proposals for CDBGlHOME funding. Copies of all proposals are on file in the City Clerks Office and the Housing and Redevelopment Department. The following organizations have submitted requests for funding: North County Council on Aging: Community Care for Adults: Brother Benno Foundation: Catholic Charities-La Posada de a Life: From the Inside Out: Women's Resource Center: Casa de Amparo: Fraternity House: Guadalupe; Community Resource Center; Boys and Girls Club of Carlsbad: Join Hands - Save County, North County Solutions for Change, Meals on Wheels, SER Jobs for Progress, MAAC Lifeline Community Services; North County Community Services, Community Housing of North Project, ARDON, YMCA 02 North Coast, Tri-City Hospital Foundation and, the City of CarlsbadlHousing Reserve Fund. Persons who have questions or comments regarding the City of Carlsbad's CDBGlHOME Program or who would like more specific information on the proposals submitted for 2002-2003 CDBGlHOME funding consideration and those being recommended for funding, please contact Frank Boensch at (760) 434-2818, Monday through Friday between 8:00 am to 500 pm. Persons in need of translators or other special services should contact the Housing and Redevelopment Department at (760) 434-2818.