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HomeMy WebLinkAbout2002-12-03; City Council; 16998; Matching Fund Requirement on CDBG FundingAB# 16,998 MTG. 12-3-02 DEPT. CM CITY OF CARLSBAD -AGENDA BILL TITLE: REQUEST FROM THE CARLSBAD BOYS AND GIRLS CLUB THAT THE CITY COUNCIL REMOVE THE MATCHING FUND REQUIREMENT ON THE FUNDING FROM CDBG II DEPT. HD. CITY Amy.& CITY MOR- RECOMMENDED ACTION: Receive presentation and consider action on the request from the Carlsbad Boys and Girls Club that the City Council remove the matching fund provision contained in the Community Development Block Grant awards. ITEM EXPLANATION: The City Council provides an opportunity for citizens and organizations to have an item placed on a City Council Agenda by submitting a letter to the City Manager. Attached is a letter (Exhibit 1) from Ron Sipiora, Chief Professional Officer, of the Carlsbad Boys and Girls Club, requesting that the City Council remove the matching fund provision from the Community Development Block Grant (CDBG). Mr. Sipiora has requested the opportunity to address the Council on this request as it relates to the $12,500 CDBG allocation to the Boys and Girls Club for capital construction purposes. FISCAL IMPACT: None EXHIBITS: 1. Letter to Ray Patchett, City Manager, from Ron Sipiora, Chief Professional Officer, Carlsbad Boys and Girls Club, dated October 29, 2002. October 29,2002 Mr. Ray Patchett City Of Carlsbad BOYS & GIRLS CLUBS OF CARLSBAD 1200 Carlsbad Village Drive Carlsbad, CA 92008 Administrative Office Dear Mr. Patchett, As Boys & Girls Clubs of Carlsbad's Chief Professional Officer, I am www.bgccarlsbad.org requesting to be placed in the near future on the City Council agenda. La Costa Rranch The City of Carlsbad has been generous in its continued financial support of $;~~-~~~ ths Bcys 3 Gr!s C!ub; which has equated to "\!er $300,00S- !he past FAX (7GC; 544-0150 several years. We are very grateful. Most recently the Council approved $5,000 for our teen programming and $1 2,500 for capital improvements of ~~~~~~~~~ Street the Club's Village Branch for the 2002-3 CDBG fiscal cycle. It is this capital Carlsbad, CA 92008 improvement funding that I wish to discuss. (760) 729-0956 Attached to the $12,500 CDBG allocation is a "matching" requirement Board of Directors placed by the Council. Unfortunately, this prerequisite makes the funds Jim Morrison, President inaccessible to the Club without utilizing earmarked operating dollars and Keith Blackbum program support. The Club's board of directors concurs that using Liz Carnes' earmarked dollars or raising additional dollars in not an option. While the ~~P~o~~~~~ PE club understands the council's decisions in the past to place such Jeb B. Hall, Esq. requirements on large CDBG allocations, we feel that such a restriction on David Kulchin" our current improvement request is inappropriate. My request at the Council meeting will be the removal of the matching Kay Matherly requirement placed on the 2002-2003 CDBG grant award. With approval of Alyssa Mercier this request the Club's board will be able to move immediately forward with Brian Milich essential Village Clubhouse improvements. I can assure you the grant will ~;;e~;;~ll** be appropriately used to provide excellent service to Carlsbad Village youth Bailey Noble"' and families. Gordon Schmidt Post Office Box 91 3 Carlsbad, CA 92018 (760) 729-0207 FAX (760) 729-2279 7805 Centella Street FAX (760) 729-2279 Patrick Casinelli," Pres. ProTem Jason Labrum Richard Macgurn"' Jack Maiz Luke Matteson *** Ernie Soczka Steve Tague computer, do their homework, laugh with their friends, swim in the pool, play r:;;r2iE;pd in the gym, join a sports team, and participate in positive proven programs ExecutiveOificers" to help them succeed in today's world. On their behalf, thank you for considering the removal of the matching requirement. Corporate Partners Sincerely, Eve1-y day TilOi'd thsn 200 iliei't 1tai-s vdk thiodyh Cl~b do^;^ io work ~a the Walter winrow Foundation"' Aegis Electronic Group, Inc. City National Bank Standard Pacific Homes The Corky McMilin Companied Brookfield Homes Chief Professional Officer Chief Professional Officer Ronald Sipiora CC: Mayor Lewis City Council Members Debbie Fountain Frank Boensch The mission of the Boys & Girls Clubs of Carlsbad is to provide activities and r \- experiences that enrich the lives of young people in our communify. %l, 16 \\A+ j' ['Debbie 'Fountain 1 Boys and Girls ,Club ~ ' ' > ., _,, , ,. ,,%> ,,,....., ',,,~ ~ ,. ', ,,,~.~ I, , ,_, ., , .'. , . (L, ," ...,. ' .a*<%,,.*,3,* __, ~ . I( ' ' :~. ~~ , , . , - * ,.> ',, ,' ~PT& ii' 1 , ., ,_ i. ~,~ 2 >*# ? .~ %, . ,' :_:s*_ , , All Receive For the Information of the: CITYCOUNCIL From: Debbie Fountain To : Ray Patchett Date: 11/27/02 4:40PM Date&&& Manage Subject: Boys and Girls Club Hi Ray. Here is some additional information on the Boys and Girls Club issue that is on the Council agenda for discussion on Tuesday, December 3rd. In 2001-2002, a City Council CDBGMOME Ad Hoc Committee (Julie Nygaard and Ramona Finnila) made a recommendation to the City Council to require that all funds provided for facility related projects through the CDBG program have a matching funds requirement. This was suggested to ensure that applicants do not rely entirely on the CDBG program to fund their projects. The Committee recommended that this matching funds requirement be placed on all facility related projects approved in the 2002-2003 CDBG program (regardless of dollar amount of allocation). The City Council approved this recommendation and it was included in the instructions set forth within the Request for Proposals package distributed for program year 2002-2003. The Boys and Girls Club submitted a proposal for program year 2002-2003 CDBG funds for facility improvements. The application indicated that the Boys and Girls Club was requesting $25,000 to replace carpet with tile, paint walls and install a heater for the pool area for the Village branch building. The CDBG Advisory Committee recommended to the Council that the Club be allocated $12,500 due to the matching funds requirement approved by the Council. The Club would be required to provide the remaining $12,500 for the proposed project. The Boys and Girls Club is now requesting that the matching funds requirement be removed as a condition of their receipt of the CDBG funds. They would like to use the entire $1 2,500 for improvements to their facility in the Village. The amount will probably not fund the entire project proposed in their original application. They will probably just complete as many improvement projects they can with the noted amount. Just as a reminder, in May/June of this year, the Council denied the request by Join Hands to remove the matching funds requirement from the $150,000 allocation they received for 2002-2003. I will forward hard copies of the various documents addressing the Council's decision on the matching funds requirement to your office in the interoffice mail for further information. Please let me know if you need additional information or have questions on the information provided within this e-mail. Thanks. cc: Sandra Holder TITLE: 2002-2003 CDBGWOME PROGRAM FUNDING PLAN, APPLICATION REVIEW PROCESS, AND CITY ATTY. REQUEST FOR PROPOSALS. RECOMMENDED ACTION: Adopt Resolution No. dm 1-3 3 3, to approve the 2002-2003 Community Development Block Grant (CDBG)/Home Investment Partnership (HOME) Program Funding Plan; approve the CDBG/HOME application review process; terminate an agreement with the County of San Diego for administration of a single family rehabilitation program; and authorize distribution of a "Request for Proposals" for the 2002- 2003 CDBG/HOME Program. ITEM EXPLANATION: In fiscal year 2002-2003, the City of Carlsbad will be entitled to a new allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of' Housing and Urban Development (HUD). As a participant in the San Diego Urban County Home Investment Partnership (HOME) Consortium, the City will also receive federal HOME funds. To receive these funds, the City must submit a "CDBG/HOME Consolidated Funding Plan" to HUD by May 15,2002. CDBG Proqram The total amount of CDBG funding available for the 2002-2003 program year is approximately $778,357. This figure includes an estimated $649,000 in new CDBG entitlement allocation, $44,685 in program income from Villa Loma property lease payments, and $84,672 available for reallocation from the City's single family residential rehabilitation program. Of the $778,357 total CDBG funds available, approximately $129,800 will be used for the City's administration of the CDBG Program, $180,651 will be used for payment of the City's Section 108 Loan for the Villa Loma affordable housing project, and up to $97,350 will be available for public service activities. The remaining $370,556 will be available for facility improvements, affordable housing, or other eligible projects. The primary objective of the CDBG program is to assist low and moderate-income persons/households. Each proposed project must meet at least one (1) of the national objectives for the CDBG Program and at least one of the local housing and community development objectives. The local objectives for the Carlsbad CDBG program are outlined in the attached "Consolidated Funding Plan Strategy" (Exhibit 2). These objectives reflect the City's desire to develop a program which best meets the various needs of low and moderate-income Carlsbad residents. HOME Proaram The primary objective of the HOME program is to provide affordable housing opportunities for lower income households. The City of Carlsbad may use HOME funds to implement the following housing activities directly, through its local housing authority, or through for profit or non-profit organizations: 1) housing acquisition/rehabilitation; 2) housing rehabilitation; 3) housing construction; 4) rental assistancelsecurity deposits; 5) homebuyer assistance; and 5) associated administration/planning activities. The total amount of new HOME funding available for allocation to eligible projects is anticipated to be approximately $251,661. Approximately $233,272 in HOME funds previously allocated for the City's single family rehabilitation program is also available for reallocation to an affordable housing project if a suitable proposal is submitted for use of the funds. The City is under contract with the County of San Diego to administer the rehabilitation program, which provides grants and/or loans to lower income homeowners. Due to federal restrictions related to the implementation of HOME rehabilitation programs, staff has found that the program has been only marginally successful. The key restriction that has hindered the program has been the federal requirement limiting eligible properties to those valued below $239,000 after the Page 2 of AB # I LUaa rehabilitation work is completed. No applications for funding through the program have been eligible for approval during the 2000-2001 or 2001-2002 program years. Due to the limited success of the singld family rehabilitation program, staff is recommending that the agreement with the County for administration of the program be terminated, and the balance of funds in the program be reallocated to other eligible projects. CDBG/HOME Advisorv Committee To facilitate the selection and funding of activities which best meet the objectives of the CDBG/HOME Program, a City Council appointed CDBG/HOME Advisory Committee will be responsible for interviewing each applicant and making funding recommendations. The Advisory Committee will be assisted by staff, who will evaluate and rank each of the eligible proposals according to pre-established criteria. The Advisory Committee’s funding recommendations will then be presented to the City Council for consideration and final approval. The following residents were appointed on December 12, 2000 to serve two-year terms on the Advisory Committee: Senior Commission Representative Southeast Quadrant Representative Staff requests that the City Council appoint Advisory Committee Members to represent the following quadrants and commissions at a future meeting: Housing Commission Planning Commission Northeast Quadrant Northwest Quadrant Southwest Quadrant City Council CDBG/HOME Ad Hoc committee A City Council CDBG/HOME Ad Hoc Committee was formed in 1999 to review the City’s CDBG/HOME Program Funding Strategy and develop recommendations for changes to the Strategy which might better meet the priority needs of lower income households in Carlsbad. The Ad Hoc Committee was again directed to meet after the 2001 -2002 program year selection process to determine if further changes might improve the program. The Committee is recommending that the following changes to the program be implemented for the 2002-2003 program year. 1. Citizen’s Advisory Committee should join staff in the evaluation and scoring of funding applications. This would give committee Members a better understanding of the activities proposed for funding and the ability of applicants to implement the program. 2. Funding applications should receive a minimum average score of 50 out of 100 points to be eligible for funding. This would help to ensure that the most qualified applications are eligible for funding. 3. Funds allocated for public service programs/projects should be evenly distributed among the three subcategories of housing, general social services, and specialized social services for youth or adults. This would help to meet the City’s goal of maintaining a well-balanced program. 4. The $20,000 minimum funding level for public facility projects should be eliminated to allow for funding of smaller projects. 5. All funds provided for facility related projects should have a matching funds requirement. This would ensure that applicants do not rely entirely on the CDBG program to fund a project. 6. Applicants should be discouraged from submitting projects for funding which are not ready for implementation. This would help the City meet federal requirements regarding the timely expenditure of funds. The attached memo to the City Manager (Exhibit 3) provides additional details on the above recommendations. If the above recommendations of the Ad Hoc Committee are approved by Council, the E 4 Page3ofAB# Ib,qdB revisions to all appropriate documents will be made by staff prior to distribution of the ”Request for Proposals”. Recommendation In order to ‘develop Carlsbad’s 2002-2003 CDBG/HOME Program, staff is requesting the following three actions from City Council at this time: 1) approval of the proposed 2002-2003 CDBG/HOME Funding Plan; 2) termination of agreement with County for single family rehabilitation program; 3)approval of an application review process for the CDBG/HOME program; and, 4) authorization to distribute a Request For Proposal for the program. FISCAL IMPACT: It is anticipated that the City will receive an estimated $649,000 in new CDBG entitlement funds and $251,661 in new HOME funds during fiscal year 2002-2003. The City also has a total of $129,357 in CDBG program income and funds available for reallocation to new projects. A total of $863,168 in HOME funds available from previous year allocations is also available for reallocation for the 2002-2003 program year. Federal regulations for the CDBG program allow the City to use a maximum of 20 percent ($1 29,800) of the new allocation for administration costs. Federal regulations for the HOME program allow the San Diego Urban County HOME Consortium, as the administrator, to use a maximum of 5 percent ($12,583) of the total HOME funds for administration costs. Administration of the CDBG/HOME program can be fully funded by use of the federal funds. There is no fiscal impact on the General Fund. EXHIBITS: 1. Resolution No. am I - 3 3 3 authorizing staff to distribute a “Request for Proposals” for the 2002-2003 CDBG/HOME Program, accepting comments and approving the 2002-2003 CDBG/HOME Consolidated Funding Plan Strategy, terminating an agreement with the County of San Diego for administration of a single family rehabilitation program; and approving the CDBG/HOME Program Application Review Process. 2. City of Carlsbad’s 2002-2003 CDBG/HOME Consolidated Funding Plan Strategy. 3. Memo to City Manager dated September 20,2001. 4. “Request for Proposals” for Carlsbad’s 2002-2003 CDBG/HOME Program. 5. CDBG/HOME Program Application Review Process. Exhibit 3 September 20,2001 TO: CITY MANAGER a VIA: HOUSING AND REDEVELOPMENT DIRECTOR w FROM: MANAGEMENT ANALYST CITY COUNCIL CDBG AD HOC COMMITTEE MEETING SUMMARY REPORT Earlier this year, the City Council took action to allocate General Fund contingencies to the Boys and Girls Club and Join Hands-Save a Life to compensate for funding that was not available through the CDBG Program. In past years, the Advisory Committee was able to recommend a minimum amount of CDBG funding to all applicants for operation of various programs. Unfortunately, this past year, the Advisory Committee found that they had did not have adequate funds to meet the minimum requirement of $5,000 set by the Council for public services and fund all the applicants. Therefore, the Advisory Committee made a decision to recommend against CDBG funding for the Boys and Girls Club because 1) the organization did not provide services that met a basic need and 2) the Club was able to raise funds through other resources. As a result of the Advisory Committee’s action, the Council decided to provide supplemental funding through the General Fund to both the Boys and Girls Club and Join Hands. However, due to the concern raised by the Advisory Committee through the funding allocation process, the Council’s Ad Hoc Committee for the CDBG program was instructed to review and give additional consideration to the current selection criteria with the intent to develop recommendations for revisions which might improve the selection process and address the issues raised by the Advisory Committee. Staff recently met with the Ad Hoc Committee (Council Members Finnila and Nygaard) to discuss this and other matters related to the CDBG program. The following provides a brief summary of the recommendations. The remainder of the report provides more details on the reasons for the recommendations and other related comments. Committee Recommendations: Advisory Committee will evaluate and score applications together with staff. Applications must receive a minimum score of 50 to be eligible for CDBG funding. Funds allocated for Public Service ProgramsProjects will be evenly distributed among the three subcategories: housing, general social services and Specialized Social Services for Youth or Adults. Maintain minimum funding level of $5,000 for public service programdprojects. Eliminate $20,000 minimum for public facility projects. 0 All funds provided for facility related projects shall have a matching funds requirement. Applicants should be discouraged from submitting projects for funding which are not ready for implementation. The following report provides additional detail on the above recommendations and further comments by the Ad Hoc Committee. CDBG Ad Hoc Committ a eport . 9/20/200 1 Page2 SELECTION PROCESS The Ad Hoc Committee will be recommending that the City Council approve the following changes to the current project selection and funding allocation process: Advisorv Committee Members will ioin staff in evaluating and scoring the amlications for CDBG funding. Scores will then be averaged and auulications will be ranked according to those scores. This action is intended to encourage the Advisory Committee to more closely follow the previously Council-approved process in which programs or projects which rank higher in the evaluation and scoring process are given funding priority. This has not always been the case in past years. Auplications that do not obtain an average score of at least 50 points will not be eligible for funding. In the past, Advisory Committees have recommended funding for program applications that scored much lower than any of the other applications. Advisory Committee Members recommend funding for low scoring programs for various personal reasons, or in an attempt to provide funding to all applicants. This has sometimes resulted in low scoring applications being recommended for the same amount as much higher scoring applications. The Committee believes that the applicants should obtain a minimum score to be eligible to receive a funding allocation. The Ad H& Committee is recommending that the funds allocated in the Public Service category be distributed evenlv among the three subcategories: Housing. General Social Services, and SDecialized Social Services for Youth or Adults. Federal regulations allow a maximum of fifteen (15) percent of the City’s annual CDBG allocation to be used for Public Service activities. This is generally for administration of a program. The vast majority of funding applications received each year for the CDBG program fall into this category. The Council-approved selection process was developed several years ago to create a balanced distribution of the CDBG public service funds among the three desired subcategories as noted above. However, in past years, the Advisory Committees have used their own criteria for developing funding recommendations and not followed the balanced approach desired by the Council. For example, one. Advisory Committee gave priority to program applications that would provide for the basic needs of food and shelter. In doing so, Specialized Social Services for Youth and Adults were given a low priority and received much less funding than the other subcategories. To return to the original intent of balancing the funding between the three subcategories, the Committee is recommending that the public service funds be divided evenly among the three categories. Consequently, there will be a maximum dollar amount that can be provided under each subcategory. Maintain minimum funding level of $5,000 for uublic service uromams. Eliminate $20.000 minimum for public facilitv Droiects. During development of guidelines for the funding selection process a number of years ago, Council set a minimum funding level of $5,000 for public service related grants and $20,000 for facility related grants. Due to the most recent recommendations from the Advisory Committee, the Council Ad Hoc Committee discussed whether or not the current $5,000 minimum funding amount for public service related activities should be revised to allow for a wider distribution of the funds. The Committee agreed to retain the $5,000 minimum funding amount, as allocating grants in smaller amounts are not a cost efficient use of the funds due to the paperwork and other administrative requirements involved in complying with federal regulations. The Committee is recommending that the $20,000 minimum for facility related grants be eliminated to allow for distribution of smaller amounts if needed. I CDBG Ad Hoc Committee @art 1 b 9/20/2OO 1 Page3 TIMELY EXPENDITURE OF FUNDS The Ad Hoc Committee also discussed the issue of timely expenditure of CDBG funds as described in the attached letter from the Department of Housing and Urban Development (HUD). The letter conveys HUD staff concerns related to the growing balance in the City’s CDBG account. Federal regulation state that 60 days before the end of the program year, an agency’s balance of funds must not exceed 1.5 times the agency’s most recent annual funding allocation. The City’s balance has progressively grown over the years because funds have been allocated for projects that were not ready for implementation. The City’s balance of funds 60 days before the end of the last program year was 1.44 times our annual allocation. If the City does not meet the expenditure ratio described above, a plan must be developed to increase expenditure of funds and other sanctions can be taken against the City, including withholding of CDBG funds. The programs with the largest balance of funds are currently Join Hands-Save a Life facility ($449,OOO), the City’s Housing Reserve Fund ($182,000), and the Boys and Girls Club facility ($167,000). Join Hands-Save a Life recently was issued their building permit for their project. However, the organization is having difficulty raising funds for the complete construction of their project. Council recently agreed to extend use of CDBG funds on their project until June 30, 2002. However, a decision was made to withhold the release of any additional CDBG funds until adequate documentation is provided to demonstrate that funds are available to complete construction of the project. It is unknown at this time if other funding will be obtained in time to construct the project before June 30, 2002. This would require reallocation of those project funds for another use unless the City Council agrees to another extension for Join Hands. Additional extensions could likely prevent the City from meeting the mandated expenditure ratio for the CDBG program as noted above. City staff is currently working to identify properties that might be good candidates for purchase with the Housing Reserve Funds and City HOME allocations. Three properties have been identified for further analysis. It is. Staffs intent to present a recommendation for use of Housing Reserve Funds in their entirety by the end of this calendar year. The Boys and Girls Club plans to use CDBG funds to develop a new facility in south Carlsbad. Tentative plans are to purchase property in Bressi Ranch. However, a number of planning issues related to development of that area will likely delay purchase of the property for approximately two years. It is anticipated that the Boys and Girls Club will continue to apply for additional CDBG funds for the new facility. Any additional funding will add to the City’s difficulty in meeting the federal expenditure ratio requirement. The Council Committee discussed the fact that the City Council may need to consider adoption of policies to restrict organizations from accumulating large balances of funds over a number of years, especially if a project is not ready for immediate implementation. Council may also need to consider reallocation of funds identified for projects that are delayed so that the funds can be used by projects that are ready for implementation. The Council could adopt a policy that gives priority standing for a subsequent funding year to any organization which has their funding reallocated due to delays in implementation. Fundinp Recommendations: The Ad Hoc Council Committee is recommending that all funds provided for facility related projects have a matching funds requirement that must be satisfied in order to obtain CDBG CDBG Ad Hoc Committ6Ceport 9/20/200 1 Pagd funding. In addition, the Council Committee felt that applicants should be discouraged from submitting projects which are not ready for implementation.. The above recommendations will be incorporated into the Funding Strategy and Request for Proposals that will be presented to the City Council for consideration in November. The recommendations may be discussed at that time. Council approval of the Funding Strategy and Request for Proposals is required prior to distribution. If you have any comments or questions regarding this summary of the Ad Hoc Committee’s recommendations and comments, please contact my office at X2818. FRANK BOENSCH Attachment CITY OF CARLSBAD 2002-2003 COMMUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM REQUEST FOR PROPOSALS 1. Introduction Funding for the federal Community Development Block Grant (CDBG) Program is authorized under Title I of the Housing and Community Development Act. The program provides grants on a formula basis to entitled cities and counties to develop viable urban communities through the provision of decent housing, a suitable living environment and by expanding economic opportunities for low and moderate income persons. Funding for the federal Home Investment Partnership (HOME) Program is authorized under Title II of the Cranston-Gonzales National Affordable Housing Act. The program provides grants on a formula basis to entitled cities, counties and cHy/county consortiums to create affordable housing for lower incbme households. The City of Carlsbad receives HOME funds as a member of the San Diego County HOME Consortium, a group consisting of the County of San Diego and various cities in the county formed for the purpose of obtaining federal HOME funds. II. Proaram DeveloDment The City of Carlsbad is eligible to receive CDBG funds on an annual basis. In order for Carlsbad to receive the grants, a list of community development objectives must be developed along with an outline of proposed projects. The City of Carlsbad must also certify that it has followed an approved Consolidated Plan for Housing and Community Development and that not less than 70% of the CDBG funds will be used for activities that benefit low and moderate income persons. Low and moderate income guidelines are based upon household size and a chart is attached for your reference. The City is eligible to receive HOME funds on an annual basis as a member of the San Diego County HOME Consortium. The City submits projects eligible for HOME funds to the Consortium for inclusion in the County’s Consolidated Plan. The eligibility of households for HOME assistance varies with the nature of the funded activity. For rental housing and rental assistance, at least 90% of benefiting households must have incomes that are no more than 60% of the median family income for the area. In rental projects with five or more assisted units, at least 20% of the units must be occupied by families with incomes that do not exceed 50% of the area median income. The incomes of households receiving HOME assistance must not exceed 80% of the area median income. 111. Reauest for ProDosals The total amount of CDBG funds from the U.S. Department of Housing & Urban Development estimated to be available for Carlsbad in 2002-2003 is approximately $778,357. This figure includes an estimated $649,000 in new CDBG entitlement allocation, and $1 29,357 that is available for reallocation from program income and a previously approved program that is currently inactive. Of the $778,357 total CDBG funds available, $129,800 will be used for the City’s administration of the CDBG Program and $180,651 will be used for payment of the City’s Section 108 Loan. Approximately $97,350 will be available for eligible public service activities, and $185,278 will be available for pubic facilities, improvements and other eligible activities. The remaining $185,278 in CDBG funds will be available for selected projects that will provide affordable housing opportunities in Carlsbad. An additional $1 82,845 in CDBG funds allocated for a Housing Reserve Fund during the 2000-2001 and 2001-2002 program years is available for affordable housing CDBG/HOME Program Request for Proposals Page 2 purposes. Oraanizations are stronalv discouraaed from amlvina for funds unless thev are readv to imdement the activiiv DroDosed for fundina. A matchina funds reauirement will be amlied to CDBG funded mblic facilities/imDrovement activities, and documentation showina use of matchina funds will be reauired Drior to distribution of CDBG funds for activities under that cateaorv. CDBG fundina for amounts of $100,000 or more mav be made in the form of a deferred, no interest loan, to be foraiven in twentv vears if the facility remains in use for c)urDoses as stated in the amlication. It is expected that approximately $1,114,829 in HOME funds will also be available for affordable housing projects. The combination of CDBG and HOME funds beina made available for affordable housino totals aDDroximatelv $1,482,952. SDecificallv, the $1.482.952 will be used for acauisition of DroDertv for affordable housina DurDoses. To develop a 2002-2003 CDBG/HOME program which meets the needs of the low and moderate income population, Carlsbad requests assistance from members of the community. Citizen participation is critical to the success of the Carlsbad CDBG/HOME program. Therefore, we are encouraging all qualified nonprofit organizations to consider the needs of low and moderate income persons within Carlsbad and submit an application for a proposed project(s) or service. The Proposal Review Process for the CDBG/HOME Program is attached for your information. Per federal regulations, all HOME funds must be used for affordable housing purposes and CDBG funds may be used for, but are not limited to: public service activities, acquisition of real properly, relocation and demolition, rehabilitation of residential and nonresidential structures, construction of public facilities and improvements and conversion of schools for eligible purposes. In addition, CDBG funds may be used for activities relating to energy conservation and renewable energy resources. The types of activities that generally are not eligible for CDBG funding include: buildings for the general conduct of government, political activities, income payments, construction of new housing and other facilities offering 24-hour care. NATIONAL OBJECTIVES The City of Carlsbad is committed to using CDBG funds to finance projects and services that provide direct benefit to low and moderate income residents. Every project proposed for the CDBG program must address at least one of the three broad National Objectives for the 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 because existing conditions pose a serious and immediate threat to the health or welfare of the community where no other financial resources are available to meet such needs. LOCAL OBJECTIVES In addition to meeting the National Objectives, every project proposed for CDBG funding must meet at least one of the local Community Development Objectives, which are: CDBG/HOME Program Request for Proposals Page 3 1. Affordable Housina: Provide direct benefit to lower income persons through the provision of additional 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 providers are defined as those that provide food, shelter, clothing and, in some cases, health care; Provide assistance to non-profit public service providers who offer counseling and self-improvement programslactivities for lower income Carlsbad residents; and, Provide assistance to non-profit public service providers who offer recreation'al 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, homemaking or personal assistance services, financial assistance services, counseling, transportation, or shared housing or other housing related services. It is the intent of the City to only approve CDBG/HOME assisted projects that do not result in the displacement of low/moderate income persons from their homes. Therefore, all persons submitting project proposals to the City should consider the displacement impact upon low/moderate income households. All persons,. organizations, agencies, etc. wishing to submit an application for funding CDBG/HOME Program Request for Proposals Page 4 consideration under the CDBG/HOME program must obtain a "Funding Proposal Application" from the City of Carlsbad Housing and Redevelopment Department. Interested persons may request a Funding Proposal Application by calling (760) 434-28 18. Ten copies of each project proposal must be submitted to the attention of Frank Boensch prior to 500 p.m. on December 20,2001 at the following address: CITY OF CARLSBAD HOUSING AND REDEVELOPMENT DEPARTMENT 2965 ROOSEVELT STREET, SUITE B CARLSBAD, CA 92008 IV. Technical Asslstance/Questions or Comments City staff is available to provide technical assistance in preparing applications and to answer questions regarding the application review process. Please contact Frank Boensch at (760) 434-28 18 for information regarding technical assistance or if you have questions or comments on the CDBG/HOME Program. ,. VI. Attachments A. Proposed CDBG/HOME Program Development Activities Schedule B. Low and Moderate-Income Guidelines C. Checklist of required documents to be submitted D. Application for the City of Carlsbad 2002-2003 CDBG/HOME Program E. City of Carlsbad Funding Plan Strategy F. CDBG/HOME Application Review Process 2002-2003 COMMUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM PROPOSED SCHEDULE OF PROGRAM DEVELOPMENT ACTIVITIES ACTIVITY - DATE Policies/Prioritles Public Hearing before City Council to November 6, 2001 request authorization to distribute RFP for 2002-2003 CDBG/HOME Program. Solicitation of Distribute Request for Proposals to all November 19,2001 Proposals interested persons, City departments and community groups. Newspaper ad announcing availability November 19,2001 of funds and request for proposals. Submittal deadline for proposals. December 20,2001 500 p.m. euiew/ Staff review of all proposals and Janurary 2,2002 to Recommendation completion of project eligibility January 31,2002 Process determination. Letters to persondagencies submitting January 31,2002 proposals to inform them of staff's determination of proposal's ineligibility for funding. CDBG/HOME Advisory Committee January 24,2002 Workshop. 6 to 7:30 p.m. Advisory Committee reviews February 2002 applications, interviews applicants, and develops recommendations to City Council on funding levels. CDBG/HOME Program Schedule of Activities Page 2 ACTIVITY - DATE Approval of City Council Public Hearing to accept March 5,2002 Consolidated Plan and public testimony on the proposed 6:OO p.m. Activities projects and review staff and Funding Committee recommendations for the CDBG/HOME Program. City Council final selection of projects March 12,2002 and funding levels for 2001 -2001 City 6:OO p.m. of Carlsbad CDBG/HOME Program Funds. "Public Review and Comment Period" March 18,2002 to for proposed 2001 -2003 Carlsbad April 18, 2002 CDBG/HOME Consolidated Plan. City Council to authorize submission of May 7, 2002 the Consolidated Plan as the 6:OO p.m. application for CDBG funding. qeadline for Submittal Submittal of Consolidated Plan to the May 15,2002 cJ.S. Dept of HUD U.S. Department of HUD. Start of CDBG/HOME Program Year July 1 , 2002 and ability to begin activities to be funded during 2002-2003 program year. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM INCOME LIMITS PY 2002-2003 (Based upon 2001 HUD Income Data for San Diego County Effective April 2001) Above ~ousehold Moderate Size (SO% of MFI) 1 31,851 2 36,401 3 40,951 4 45,501 5 49,151 6 52,801 7 56,451 8 60,101 Moderate Low Very Low (51 to 80% of MFI) (31 to 50% of MA) (e 30% of MFI) 31,850 19,900 11,950 36,400 22,750 13,650 40,950 25,600 15,350 45,500 28,450 17,050 49,150 30,750 18,450 52,800 33,000 19,800 56,450 35,300 21,150 60,100 37,550 22,550 CITY OF CARLSBAD COM.MUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM .\ FUNDING PROPOSAL APPLICATION .. 2002-2003 . The following information must be completed by each person/agency/organlzation Interested in being considered for CDBG/HOME funding. All Information requested must be provided or the application will be considered incomplete and will not be further evaluated ‘for funding consideration. Please type or print clearly, Attach additional sheets or Information as necessary. The application must not exceed a total of fifteen (15) pages, Including the required attachments as listed In the Checklist of Req’uired Documents. Ten coples of the completed application package, Including attachments, must be submitted prior to December 20th to Frank Boensch. Housing and Redevelopment Department, 2965 Roosevelt Street, Suite 6, Carisbad, CA 92008. ADMINISTRATING AGENCY Name of Agency: BOYS & GIRLS CLUBS OF CARLSBAD ’ Address: 3115 Roosevelt Street, Carlsbad. CA 92008 Federal Tax ID Number: 95-2131503 PROPOSED PROGRAM/PROJECT Title of Program/ProJect: Village Branch Improvements - ’ Location of Program/Project: Villaize Branch Contact Person: Ron SiDiora TelephoneNo.: (760 729-0207 Requested Fundlng Amount: $ 2 5 , 0 0 0 . 0 0 Brief Descrfpiion of Program/ProJect (Describe the work to be performed, Including the activities to be undertaken or the servlces to be provlded, the goals and objectives of the program/proJect, etc.): .< .. The improvements of our Village facility will revitalize the’overall club atmosphere .and minimize facility maintenance. Upgrades will accomplish the following objectives: Replace current stained and worn carpets with new “kid resistant” VCT tile. Add central heat to the indoor pool facility. Currently there is no heating system for the pool area making early morning and evening activities nearly unbearable during the winter and fall months. Finaily, a new coat of paint for program areas in need to cover three years of heavy use from clubhouse members. These improvements will not only revitalize the interior of the facility and heat our indoor pool area, but also help minimize our maintenance costs. The Village Branch of the Carlsbad Boys and Girls Clubs is an important resource for the Barrio Cilsbad; we hope these improvements will help us to better serve our residents. CITY OF CARLSBAD - AGENDA BILL I TITLE: DEPT. HD&8 APPROVAL OF FUNDING ALLOCATIONS FOR 2002-2003 CITY Amy- CDBWHOME PROGRAM. RECOMMENDED ACTION: Adopt Resolution No.dDO3-O 86/ approving the projects and funding allocations for the City of Carlsbad’s 2002-2003 Community Development Block GrantlHOME 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 CDBG/HOME 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 Request for Proposals distributed in November of 2001. The proposals were reviewed and evaluated by the Council-appointed CDBG/HOME 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 b , b 7 I The chart below summarizes the funding available and the maximum amount that can be allocated in each expenditure category: .. 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 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. Page 3 of Agenda Bill # Id, bcI I RECOMMENDATION: It is recommended that the City Council approve the project funding recommendations of the CDBG/HOME Funding Advisory Committee for the City’s 2002-2003 CDBG/HOME Program. FISCAL IMPACT: A total of $1,246,290 is available for allocation to the City’s 2002-2003 CDBG/HOME 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. . Resolution No. 800 a -0 %approving funding allocations for the 2002-2003 CDBG/HOME 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 7 8 9 10 11 12 ‘1 3 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, CALIFORNIA, APPROVING FUNDING ALLOCATIONS FOR THE 2002-2003 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 submitted for funding consideration under the 2002-2003 Community Development Block Grant/HOME Program; WHEREAS, the City Council considered the CDBG Funding Advisory Committee’s recommendations for project funding allocations; WHEREAS, the City Council selected the projects to be included in the City of Carlsbad’s 2002- 2003 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 Grant/HOME Program. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, 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: 1TTEST: / .OR&iINE Nf/ WOOD, City Clerk 4. EXHIBIT 2 CITY OF CARLSBAD LIST OF PROJECT PROPOSALS AND FUNDING RECOMMENDATIONS 2002-2003 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APP. BY COMMITTEE AMOUNT PROJECT NO. RECOMMENDED REQUESTED TYPE OF AGENCY/PROJECT L 1 0 15,000 Public Services Tri-City Hospital Foundation / 4 10,000 10,000 Public Services North County Community Services / 3 5,000 25,000 Public Services Community Resource Center / 2 10,000 10,000 Public Services Brother Benno Foundation / Brother Benno Center General Emergency Medical Fund .General Food Bank General Homeless Prevention General See attached page for special conditions recommended to be added to these projects. Exhibit 2 . Page 2 Bovs and Girls Club (#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 (#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: FUNDING REQUESTED TYPE OF AGENCY/PROJECT PROJECT BY COMMITTEE AMOUNT RECOMMENDED FUNDING 24 75,000 75,000 Affordable Community Housing of North County/Solutions Family Center Transitional Housing Housing Housing Fund 25 408,794 483,794 Affordable City of CarlsbadHousing Reserve TOTAL 558,794 483,794 7 I. _. A \.- I - . March 26,2002 TO: FROM: CITY MANAGER Management Analyst FRATERNITY HOUSE Fraternity House is an organization that provides residential care and other related services for individuals suffering from W/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 YEAR FUNDS IMPROVEMENTS 1989-90 $2,000 1991 -92 $2,800 1997-98 $5,000 $1 0,000 1998-99 $5,000 $1 0,000 1999-00 $5,000 2000-01 $5,500 200 1 -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 October 29, 2002 Mr. Ray Patchett City Of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Dear Mr. Patchett, Administrative Office Post Office Box 913 Carlsbad, CA 9201 8 (760) 729-0207 FAX-(760) 729-2279 As Boys 8, Girls Clubs of Carlsbad's Chief Professional Officer, I am www.bgccarlsbad.org requesting to be placed in the near future on the City Council agenda. La Costa Branch The City of Carlsbad has been generous in its continued financial support of the Boys & Girls Club; which has equated to over $300,000 the past several years. We are very grateful. Most recently the Council approved $5,000 for our teen programming and $1 2,500 for capital improvements of l- Street the Club's Village Branch for the 2002-3 CDBG fiscal cycle. It is this capital Carisbad, CA 92008 improvement funding that I wish to discuss. (760) 729-0956 7805 Centella Street Carlsbad, CA 92009 (760) 944-921 1 FAX (760) 944-0150 FAX (760) 729-2279 Attached to the $12,500 CDBG allocation is a "matching" requirement Board of Directors placed by the Council. Unfortunately, this prerequisite makes the funds Jim Morrison, President inaccessible to the Club without utilizing earmarked operating dollars and Keith Blackburn program support. The Club's board of directors concurs that using Liz Carnes' earmarked dollars or raising additional dollars in not an option. While the ~~P~o~~~'ici~ PE club understands the council's decisions in the past to place such Jeb 6. Hall, Esq. requirements on large CDBG allocations, we feel that such a restriction on David Kulchin" our current improvement request is inappropriate. My request at the Council meeting will be the removal of the matching Kay Matherly requirement placed on the 2002-2003 CDBG grant award. With approval of Mercier this request the Club's board will be able to move immediately forward with Brian Milich essential Village Clubhouse improvements. I can assure you the grant will ~;;~el;;:ll*' be appropriately used to provide excellent service to Carlsbad Village youth Bailey Noble" and families. Gordon Schmidt Ernie Soczka Patrick Casinelli," Pres. ProTem Jason Labrum Richard Macgurn"' Jack Maiz Luke Matteson *** Every day more than 200 members walk through Club doors to work on the Walter Winrow computer, do their homework, laugh with their friends, swim in the pool, play Dennis Wood in the gym, join a sports team, and participate in positive proven programs ExecutiveOilicers" to help them succeed in today's world. On their behalf, thank you for considering the removal of the matching requirement. Corporate Partners Sincerely, Steve Tague Past President' Foundalion"' Aegis Electronic Group, Inc. City Ngtional Bank Standard Pacific Homes Brookfield Homes Chief Professional Officer ~.''a21---;: s1-;1. ,,-" 7 The Corky McMilin Companies/ I' , Ron Sipiora Chief Professional Officer Ronald Sipiora -/ CC: Mayor Lewis City Council Members Debbie Fountain Frank Boensch The mission of the Boys & Girls Clubs of Carlsbad is to provide activities and experiences that enrich the lives of young people in our community.