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HomeMy WebLinkAbout2003-03-25; City Council; 17112; 2003-04 CDBG/HOME Program Funding AllocationsCITY OF CARLSBAD - AGENDA BILL AB# 17,112 TITLE: 3-25-03 MTG. APPROVAL OF FUNDING ALLOCATIONS FOR 2003-2004 CDBWHOME PROGRAM. DEPT. HD. e CITY ATTY. @ CITY MGR. RECOMMENDED ACTION: Adopt Resolution No. 2003-078 approving the projects and funding allocations for the City of Carlsbad’s 2003-2004 Community Development Block GranVHOME 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 that 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 12, 2002. Another public hearing was held on March 11, 2003 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 2003-2004 CDBG/HOME Program. FUNDING The City of Carlsbad is entitled to receive an anticipated new CDBG allocation of $597,000 during fiscal year 2003-2004. The CDBG Program has $280 available for reallocation that was previously allocated to the canceled single-family home rehabilitation program. The City has also collected $32,860 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 $630,140. The total amount of HOME funding available for allocation to eligible projects is anticipated to be approximately $250,522. The City received 23 proposals for use of CDBG/HOME funds from various organizations in response to a Request for Proposals distributed in November of 2002. The proposals were reviewed and evaluated by the Council-appointed CDBG/HOME Advisory Committee and staff prior to interviewing representatives from the organizations on January 30th and February 6th. The Committee then met again on February 20th and developed the funding recommendations outlined in Exhibits 2 and 3. Page 2 of Agenda Bill # 17 I 112 The chart below summarizes the funding available and the maximum amount that can be allocated in each expenditure category: AMOUNT OF FUNDING ($) FUNDING ($) EXPENDITURE CATEGORY AVAILABLE REQUESTED AMOUNT OF CDBG ' , j: $1. , 1 3' ' ' " i'j& i ,. ' I ~, e *~,S ' (,I, )('( ; : !:~;$ ' 'Sl,, ('1 , > Public Services 1 19.400 1 19.400 Administration 122,081 240,080 Projects 89,550 304,216 Public Facility Improvements & Other Section 108 Loan Repayment 630,140 844,805 Subtotal 122,080 122,080 Affordable Housing 177,029 177,029 HOME Affordable Housing 250,522 250,522 Subtotal 250,522 250,522 TOTAL 880.662 1.095.327 ,~, , > : ,~, ;e ADVISORY COMMITTEE RECOMMENDATIONS The Advisory Committee has made the funding recommendations noted in Exhibits 2 and 3 to this report. The Committee has recommended that all funds available for the Public Facility Improvements/Other Projects category be allocated to the City's Housing Reserve Fund for future affordable housing uses. Join Hands-Save a Life submitted an application for funds to assist them in completing a youth center that they are developing on Roosevelt Street. HUD officials have determined that the use of funds proposed by Join Hands is not eligible because they plan to develop the facility with a combination of volunteers and paid labor. Federal regulations prohibit use of CDBG funds in those cases, and thus HUD views the application for funds to complete the project with CDBG funds as an attempt to circumvent federal regulations as related to the payment of federal prevailing wages. Therefore, staff notified Join Hands that their application was not eligible for CDBG funding. The Boys and Girls Club also applied for funds to provide various improvements to their current facility. The proposed improvements include; new light switches, trophy case, storage area, marquee, and scoreboard. The Advisory Committee recommends that no funds be allocated for these uses as they see the need to provide funds for more affordable housing opportunities as a higher priority than the improvements requested by the Boys and Girls Club. RECOMMENDATION: It is recommended that the City Council approve the project funding recommendations of the CDBGIHOME Funding Advisory Committee for the City's 2003-2004 CDBG/HOME Program. FISCAL IMPACT: A total of $880,662 is available for allocation to the City's 2003-2004 CDBG/HOME Program. The City Council made a previous decision to use the maximum twenty percent (20%) of the new CDBG allocation, or $1 19,400, for administration of the City's CDBG program. The Program has no impact on the General Fund A Page 3 of Agenda Bill # 171 112 EXHIBITS: 1. Resolution No. 2003-078 approving funding allocations for the 2003-2004 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 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CITY COUNCIL RESOLUTION NO. 2003-078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, SELECTING SPECIFIC PROJECTS FOR FUNDING UNDER PROGRAM. WHEREAS, the City Council of the City of Carlsbad, California, held a public hearing on March 1 1, 2003 to accept comments on the needs of low and moderate income persons and the proposals submitted for funding consideration under the 2003-2004 Community Development Block Grant/HOME THE 2003-2004 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 2003- 2004 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 projects selected at the City Council meeting of March 25,2003 are hereby approved at the indicated funding levels for inclusion in the City's 2003-2004 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 25th day of MARCH , 2003, by the following vote, to wit: AYES: Council Members Lewis, Finnila, Hall, Packard NOES: None ABSENT: Council Member Kulchin ABSTAIN: None ATTEST: 1 EXHIBIT 2 TO AB #17,112 CITY OF CARLSBAD 2003-2004 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM LIST OF PROJECT PROPOSALS AND FUNDING RECOMMENDATIONS APP. BY COMMITTEE AMOUNT PROJECT NO. RECOMMENDED REQUESTED TYPE OF AGENCY/PROJECT 1 7,500 15,463 Public Services North County Health Services / 5 9,850 10,000 Public Services North County Community Services / 4 5,000 17,530 Public Services Lifeline Community Services / 3 0 25,000 Public Services Community Resource Center / 2 7,500 20,000 Public Services Brother Benno Foundation / Brother Benno Center General Health Screening and Immunizations General Food Bank General General Services General Homeless Prevention General EXHIBIT 3 to AB #17,112 CITY OF CARLSBAD HOME INVESTMENT PARTNERSHIP PROGRAM 2003-2004 HOME PROPOSAL AND FUNDING RECOMMENDATION NO. FUNDING REQUESTED TYPE OF AGENCYPROJECT PROJECT BY COMMITTEE AMOUNT RECOMMENDED FUNDING 23 250,522 250,522 Affordable City of CarlsbadHousing Reserve Fund Housing I TOTAL 250,522 I 250,522 PROOF OF PUBLICATION (2010 4% 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 Fornleriy 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 Diego, that the notice of which the annexed is a printed copy (set in type not smaller than nonpariel), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: MARCH 21,2003 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at SAN MARCOS, California This 24TH day of MARCH, 2003 This space is for the County Clerk's Filing Stamp Proof of Publication of CITY OF CARLSBAD Program NOTICE PUBLIC HEARING The citizens of Carlsbad and other interested parties are here- by notified that Carlsbad's Ci Council will hold .a ublic hearing on Tuesday March 29 2003 at 600 m in &e Coun- cil Chambers locat6d 1200 Cahsbad Villa e $rive to accept ublic comments on the otential realloc&on of Community gevelopment Block Granr funds previously allocated to the Carlsbad Boys and Girls Club and Join Hands-Save a Life. have been fo&ited &+ they are no able to u&IW the funds in Funds totalin $167 114 allocated to the Bo s and Girls Club a timely manner. hnds totaling $599.063 allocated to Join Hands-Save a Life require reallocation as rant conditions 'have not been met and the funds havenof been utilized in a time1 manner. It is anticipated qat the City Council will cons der alternatives for reallocatlon and provide staff with direction to return at a later date with documents to reallocate the funds. Reallocation of the funds will be included in the 2003-2004 Consolidated Plan which will be available for public review and comment at' a later date. An additional Eublic notice will be published and a public hearing will be eld re arding the Consohdated Plan. The public may also contacpFrank Boensch at 760-434-2818 to be notified when the Consolidated Plan is available for public review. Persons who have uestions or comments re arding the Ci of Carlsbad's CDBS Program or who would 18, more spec& information on the proposed reallocation of funds may contact Frank Boensch at (760 434 2818, Monday through Friday between 8:OO am to 5:Oh pm- IP Persons in need of translators or other s ecial sewices should contact the Housing and RedevelopmenPDepartment at (760) PUBLISH DATE: FRIDAY, MARCH 2 1,2003 434-2818. 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