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Home My WebLink About2002-03-26; City Council; 16691; Funding Allocations for 2002-03 CDBG/Home ProgramCITY OF CARLSBAD - AGENDA BILL ,B# lb,4S I DEPT. HDC@ m: ITG. 3-JL -’a CITY dz APPROVAL OF FUNDING ALLOCATIONS FOR 2002-2003 ~ CDBGMOME PROGRAM. IEPT. WRED RECOMMENDED ACTION: Adopt Resolution No.dbba-4 gf approving the projects and funding allocations for the City of Carlsbad‘s 2002-2003 Community Development Block Grant/HOME 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 Consortium, the City will also receive federal HOME funds to provide affordable housing opportunities for lower income households. An initial public hearing to invite comments on the City’s CBDG/HOME Program Consolidated Funding Plan Strategy was held on November 6, 2001. Another public hearing was held on March 5, 2002 to obtain further comments on the needs of lower income households in Carlsbad and the specific proposals submitted for funding through the Carlsbad CDBG/HOME Program. Staff is now requesting that the City Council make the final project selections and funding allocations for the 2002-2003 CDBGIHOME Program. 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 which 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 CDBG/HOME funds from various organizations in response to a the Council-appointed CDBGlHOME Advisory Committee and staff prior to interviewing representatives Request for Proposals distributed in November of 2001. The proposals were reviewed and evaluated by 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 # !lo, 6 4 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 Hands allocation requiring that a five-year business plan for operation of the proposed youth center be approved by the Housing and Redevelopment Director prior to approval of a funding agreement with the organization. This recommendation is made as a result of the Committee's concern that Join Hands did The Committee supported the project, but wanted to ensure that adequate thought has been given to not appear to have a strategy for funding operations of the proposed facility once it is actually constructed. future operations funding before any CDBG funds are disbursed for construction of the facility. d . Page 3 of Agenda Bill # Id, 69 I RECOMMENDATION: CDBG/HOME Funding Advisory Committee for the City’s 2002-2003 CDBG/HOME Program. It is recommended that the City Council approve the project funding recommendations of the 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. 1. Resolution No. $m a -0 gbapproving funding allocations for the 2002-2003 CDBGlHOME Program. 2. Summary of CDBG funding allocation recommendations. 3. Summary of HOME funding allocation recommendations. 4. Copies of CDBG/HOME Project proposals. (On file in the City Clerk‘s Office) 3 1 2 3 4 5 6 I 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CITY COUNCIL RESOLUTION NO. 2002-088 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, COMMUNITY DEVELOPMENT BLOCK GRANTlHOME PROGRAM. WHEREAS, the City Council of the City of Carlsbad, California, held a public hearing on March 5, 2002 to accept comments on the needs of low and moderate income persons and the proposals iubmitted for funding consideration under the 2002-2003 Community Development Block GrantEIOME ?rogram; CALIFORNIA, APPROVING FUNDING ALLOCATIONS FOR THE 2002-2003 WHEREAS, the City Council considered the CDBG Funding Advisory Committee’s .ecommendations for project funding allocations; WHEREAS, the City Council selected the projects to be included in the City of Carlsbad’s 2002- ,003 Community Development Block Grant/HOME Program; and, WHEREAS, the City Council has taken all testimony into account. NOW, THEREFORE BE IT HEREBY RESOLVED as follows: 1. That the above recitations are true and correct. 2. That the funding allocations selected at the City Council meeting of March 26, 2002 are hereby approved at the indicated funding levels for inclusion in the City’s 2002-2003 Community Development Block GranmOME Program. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Zarlsbad, California, held on the 26th day of MARCH , 2002, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Finnila, Hall NOES: None ABSENT: Council Member Nygaard ABSTAIN: ITTEST: / 1 CITY OF CARLSBAD LIST OF PROJECT PROPOSALS AND FUNDING RECOMMENDATIONS 2002-2003 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM EXHIBIT 2 . See attached page for special conditions recommended to be added to these projects. 5 Exhibit 2 Page 2 Bovs and Girls Club 1#22) 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 (a31 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. 6 EXHIBIT 3 CITY OF CARLSBAD HOME INVESTMENT PARTNERSHIP PROGRAM 2002-2003 HOME PROPOSAL AND FUNDING RECOMMENDATION NO. REQUESTED TYPE OF AGENCYIPROJECT PROJECT FUNDING Affordable Community Housing of North 24 BY COMMIITEE AMOUNT RECOMMENDED FUNDING County/Solutions Family Center Transitional Housing Housing Fund 75,000 75,000 25 City of CarlsbadRlousing Reserve 483,794 Affordable 408,794 Housing TOTAL 558,794 483,794 7 March 26,2002 TO: CITY MANAGER FROM Management Analyst FRATERNITY HOUSE Fraternity House is an organization that provides residential care and other related services for individuals suffering from HIV/AIDS. The chart below has been prepared in response to your request for information regarding the City’s allocation of funds to the organization. All allocations have been from the Community Development Block Grant program. OPERATING FACILITY 1991 -92 $2,800 1997-98 $5,000 $1 0,000 1998-99 $5,000 $10,000 1999-00 $5,000 2000-01 $5,500 2001 -02 $5,000 TOTAL $30,300 $20,000 Please let me know if you have any other questions or need additional information. 7d FRANK BOENSCH c: Community Development Director Housing and Redevelopment Director