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HomeMy WebLinkAbout2006-11-21; City Council; 18815; CDBG and Home Programs FundingCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 18,815 11/21/06 HRED 2007-2008 COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP PROGRAM DEPT. HEAD ^_tRPS^' CITY ATTY. <&£ CITYMGR. -^p**-r RECOMMENDED ACTION: Adopt Resolution No. 2006-343 to accept comments and approve the 2007-2008 Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) Program Funding Plan; approve the CDBG/HOME Program application review process; and authorize distribution of a "Request for Proposals" for the 2007-2008 CDBG/HOME Program. ITEM EXPLANATION: In fiscal year 2007-2008, 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 be eligible to receive federal HOME funds. CDBG Program The total amount of CDBG funding available to the City for the 2007-2008 program year is approximately $602,000. This figure includes an estimated $514,000 in new CDBG entitlement allocation and $66,000 in program income from Villa Loma property lease payments. An additional $21,288 is available from prior year allocations that were not used and are available for the 2007-08 program. Of the $602,000 in CDBG funding, approximately $102,000 will be used for the City's administration of the program and $77,000 will be available for public service activities. In addition, pursuant to previous Council direction, approximately $211,000 will be available for affordable housing, and $211,000 will be available for facility improvements or other eligible projects. The primary objective of the CDBG program is to assist lower 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 "CDBG/HOME Program Funding Plan" (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 Program The primary objective of the HOME program is to provide affordable housing opportunities for lower income households. HOME funds may be used 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 assistance/security 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 $288,000. FOR CITY CLERKS USE ONLY. COUNCIL ACTION:APPROVED DENIED D CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D PAGE 2 Request for Proposals and Application Review Process No changes are proposed to the Request for Proposals and application review process as previously approved by the City Council for use during the previous program year. CDBG/HOME Advisory 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 applicants, evaluating applications, and developing recommendations for funding amounts. 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 20, 2005 to serve two-year terms on the Advisory Committee: Mike O'Connell, Senior Commisson Housing Commission, Sandra Roman Northwest Quadrant, Tom Base Northeast Quadrant, Susan Pynes Southwest Quadrant, Jim Smith (Mr. Smith has requested to be replaced in 2007.) Staff requests that the Mayor appoint Advisory Committee Members to represent the following quadrants and commissions at a future meeting: Planning Commission Southeast Quadrant Southwest Quadrant Recommendation In order to develop Carlsbad's 2007-2008 CDBG/HOME Program, staff is requesting the following three actions from City Council at this time: 1) approval of the proposed 2007-2008 CDBG/HOME Funding Plan; 2) approval of an application review process for the CDBG/HOME program; and, 3) authorization to distribute a "Request For Proposals" for the program. FISCAL IMPACT: It is anticipated that the City will receive an estimated $514,000 in new CDBG entitlement funds and $288,000 in new HOME funds during fiscal year 2007-2008. Federal regulations for the CDBG program allow the City to use a maximum of 20 percent ($102,800) of the new allocation for administration costs. The City's Cooperative agreement with The San Diego Urban County HOME Consortium allows the City to recover approximately $7,000 in administrative 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. 2006-343 authorizing staff to distribute a "Request for Proposals" for the 2007-2008 CDBG/HOME Program, accepting comments and approving the 2007-2008 CDBG/HOME Funding Plan, and approving the CDBG/HOME Program Application Review Process. 2. 2007-2008 CDBG/HOME Funding Plan. PAGES 3. "Request for Proposals" for Carlsbad's 2007-2008 CDBG/HOME Program. 4. CDBG/HOME Program Application Review Process. DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, fboen@ci.carlsbad.ca.us 3 CITY COUNCIL RESOLUTION NO.2006-343 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 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA ACCEPTING PUBLIC COMMENTS AND APPROVING THE 2007-2008 CDBG/HOME PROGRAM FUNDING PLAN; APPROVING THE CDBG/HOME APPLICATION REVIEW PROCESS; AND AUTHORIZING DISTRIBUTION OF A REQUEST FOR PROPOSALS FOR THE 2007-2008 CDBG/HOME PROGRAM. WHEREAS, the City of Carlsbad, California, is entitled to a new allocation of Community Development Block Grant (CDBG) funds from the U. S. Department of Housing and Urban Development (HUD) for fiscal year 2007-2008; and, WHEREAS, the City of Carlsbad, California is entitled to an allocation of HOME Investment Partnership funds for the fiscal year 2007-2008 as a member of the San Diego County HOME Consortium; and, WHEREAS, the City Council of the City of Carlsbad held a public hearing to consider the distribution of a "Request for Proposals" for a 2007-2008 CDBG/HOME Program and the required documents for development and implementation of the 2007-2008 CDBG/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 staff of the Housing and Redevelopment Department is authorized to distribute a "Request for Proposals" for the City of Carlsbad's 2007-2008 CDBG/HOME Program. 3. That the City Council approves the 2007-2008 CDBG/HOME Funding Plan, required by federal regulations, for Carlsbad's CDBG/HOME Program. 4. That the City Council approves the proposed CDBG/HOME Application Review Process. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 21st day of November, 2006, by the following vote, to wit: AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: None ABSTAIN: None ATTEST: LORRAINE M. WOOD, City Clerk CDBG/HOME FUNDING PLAN CITY OF CARLSBAD CDBG/HOME PROGRAM PY 2007-2008 CITY OF CARLSBAD 2007-2008 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM STATEMENT OF COMMUNITY DEVELOPMENT OBJECTIVES The City of Carlsbad Community Development Block Grant (CDBG) funds will be allocated to organizations, agencies, City Departments, or persons to implement programs or develop/improve public facilities which meet the following community development objectives: 1. AFFORDABLE HOUSING: • Provide direct benefit to lower income persons through the provision or retention of affordable housing units in Carlsbad; • Provide shelter or services to homeless or near homeless persons/families which result in an improved situation through employment, permanent or transitional 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, homemaking or personal assistance services, financial assistance services, counseling, transportation, or shared housing or other housing related services. 2 of 5 CITY OF CARLSBAD 2007-2008 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY OF ESTIMATED FUNDS AVAILABLE FOR 2007-2008 PROGRAM YEAR Source of Funds Amount($) New Entitlement Grant 514,000 Program Income 66,852 Reallocation of Prior Year Funds 21.228 TOTAL 602,080 Funds Available by Activity Amount f$) Public Service 77,100 Affordable Housing 211,090 Public Facilities, Improvements/Other 211,090 Program Administration/Fair Housing 102.800 Total Available Funds 602,080 3 of 5 2007-2008 HOME INVESTMENT PARTNERSHIP PROGRAM STRATEGY The City of Carlsbad, as a member of the San Diego Urban County HOME Consortium, may allocate its HOME Investment Partnership funds to implement the following activities directly, through local housing authorities, or for-profit or non-profit organizations: 1. Property Acquisition/Housing Construction HOME funds may be used for property acquisition and all other eligible costs of providing new affordable housing for lower-income persons and special needs groups. 2. Housing Acquisition/Rehabilitation HOME funds may be used for acquisition of existing housing units with or without rehabilitation for lower-income persons and special needs groups. 3. Housing Rehabilitation HOME funds may be used for housing rehabilitation costs incurred separately or in connection with the acquisition of existing housing for lower-income persons and special needs groups. 4. Rental Assistance HOME funds may be used for tenant based rental assistance, related residential security deposit assistance programs, and other eligible related costs. 5. Home Buyer Assistance HOME funds may be used for home buyer assistance programs for lower income persons. Such programs may include, but are not limited to, downpayment and closing cost assistance, direct loan to the home buyer, interest subsidy to the lender, or "gap" financing. 6. Administration/Planning 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. Funding 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 4 of 5 8 Element and the Consolidated Plan. Staff will present the recommendations for project funding to the City Council for consideration and final approval. Leverage 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 2007-2008 PROGRAM YEAR 2007-2008 HOME Funding Allocation for Carlsbad $288,356 5 of 5 CITY OF CARLSBAD 2007-2008 COMMUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM REQUEST FOR PROPOSALS I. 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 lower 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 city/county consortiums to create affordable housing for lower income 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. Program Development 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, III. Request for Proposals The total amount of CDBG funds from the U.S. Department of Housing & Urban Development estimated to be available for Carlsbad in 2007-2008 is approximately $602,080. This figure includes an estimated $514,000 in new CDBG entitlement allocation, $66,852 available from program income, and $21,228 available for reallocation from prior year activities. Of the $602,080 total CDBG funds available, $102,800 will be used for the City's administration of the CDBG Program and $77,100 will be available for eligible public service activities. Approximately $211,090 will be available for public facilities, improvements and other eligible activities. The remaining $211,090 in CDBG funds will be available for selected projects that will provide affordable housing opportunities in Carlsbad. An additional $205,225 is available in the City's Housing Reserve Fund to assist in providing affordable housing opportunities for lower income households. Organizations are strongly discouraged from applying for funds unless they are ready to implement the activity proposed for funding. A matching funds requirement will be applied to /O CDBG funded public facilities/improvement activities, and documentation showing use of matching funds will be required prior to distribution of CDBG funds for activities under that category. CDBG funding for amounts of $100,000 or more may be made in the form of a deferred, no interest loan, to be forgiven in twenty years if the facility remains in use for purposes as stated in the application, It is expected that approximately $288,000 in new HOME funds will be available for affordable housing projects. The combination of 2007-2008 CDBG.HOME funds, and Housing Reserve Funds being made available for affordable housing totals approximately $704.315. Specifically, the $704.315 will be used for acquisition of property for affordable housing purposes. To develop a 2007-2008 CDBG/HOME program which meets the needs of the lower 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 lower income persons within Carlsbad and submit an application for a proposed project 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 property, relocation and demolition, rehabilitation of residential and nonresidential structures, construction of public facilities and improvements and conversion of schools for eligible purposes. 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 lower 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 lower 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: 1. Affordable Housing: 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 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 public service providers who offer counseling and self- improvement programs/activities for lower income Carlsbad residents; and, Provide assistance to 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 lower 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 lower income persons from their homes, Therefore, all persons submitting project proposals to the City should consider the displacement impact upon lower income households. IV. Submission of Request For Proposals All persons, organizations, agencies, etc, wishing to submit an application for funding 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) 434-2818. Ten copies of each project proposal must be submitted to the attention of Frank Boensch prior to 5:00 p.m. on December 15,2006 at the following address: CITY OF CARLSBAD HOUSING AND REDEVELOPMENT DEPARTMENT 2965 ROOSEVELT STREET, SUITE B CARLSBAD, CA 92008 IV. Technical Assistance/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- 2818 for information regarding technical assistance or if you have questions or comments on the CDBG/HOME Program. CITY OF CARLSBAD CDBG/HOME PROGRAM APPLICATION REVIEW PROCESS PURPOSE To set forth procedures to be used for allocating the annual City of Carlsbad Home Investment Partnership (HOME) and Community Development Block Grant (CDBG) funds. BACKGROUND Each year the City of Carlsbad is entitled to receive funding from the U.S. Department of Housing & Urban Development through the CDBG Program to finance projects and/or services, which benefit low/moderate income persons/households within the community. The City also receives federal funds through the HOME Program to implement housing activities that benefit lower income households. In response to the City's "Request for Proposals" for the CDBG/HOME Program, the City receives numerous applications for funding from local organizations. In an effort to facilitate the activity selection and funding allocation process, the following procedures have been established for the program. OBJECTIVE The intent of this process is to streamline the CDBG/HOME funding allocation procedures and implement specific proposal evaluation criteria that can be used to assist in the selection of activities for funding on an annual basis. This process describes the CDBG/HOME application process; outlines the review process for activity selection and funding recommendations; and, summarizes the public hearing requirements. A CDBG/HOME Advisory Committee, will be appointed to review and make recommendations to the City Council on funding levels for each of the eligible activities submitted by organizations and/or city departments. PROCEDURES The goal of the City of Carlsbad is to develop a well balanced CDBG/HOME Program that reflects the various needs of its low to moderate income residents, with three primary areas of focus: 1) affordable housing; 2) general social services for lower income persons; and 3) services for children and adults, including the elderly. The following procedures outline the steps to be used by the Advisory Committee and staff of the Housing and Redevelopment Department in selecting activities, which provide for a well- balanced program and in making recommendations for allocation of the funds on an annual basis: 1. Interested persons, non-profit organizations, City departments and others may submit a request for funding on the appropriate application form. A public notice in a local newspaper of general circulation will indicate how to obtain an application and the due date for all proposals. Generally, the application review process will begin in November or December of each year. 2. Upon receipt of proposals/applications for funding, Housing and Redevelopment Department staff will make a determination regarding the eligibility of each proposed project for funding consideration under the program. Requests for funds shall be considered for funding only if the application is complete and demonstrates that the following conditions have been met: a. The governing board formally authorized the organization's request for CDBG 13 APPLICATION REVIEW PROCESS PAGE 2 and/or HOME funds from the City of Carlsbad and authorized official to bind organization into subsequent agreements for CDBG funds; b. The proposed use of funds is an eligible activity, per the Federal regulations for the CDBG and/or HOME program; c. The organization and the proposed activity must not have any outstanding or unresolved findings of violation of the federal regulations governing the CDBG and/or HOME program; d. If applying for CDBG funds, the proposed use of funds meets at least one national objective for the CDBG program, as established by the Federal regulations; e. If applying for CDBG funds, the proposed use of funds meets at least one local objective for the CDBG program, as established by the City of Carlsbad's Community Development Plan; and, f. If applying for HOME funds, the proposed use of funds must be for the purpose of increasing the availability of affordable housing for lower income households. 3. All complete applications, which have met the conditions outlined above, shall be considered eligible for funding consideration and shall continue in the activity selection and funding allocation process. All applications that are deemed ineligible for funding consideration shall receive written notification that the application for funds is ineligible due to a specified reason and will not be reviewed further by staff or the Advisory Committee. 4. The Advisory Committee will consider the needs of lower income Carlsbad residents in developing recommendations to the City Council for the funding of activities which are the "most qualified" to meet those needs. The Committee will consist of seven (7) members and will include the following representatives to be appointed by the City Council: Senior Commissioner, Planning Commissioner, Housing Commissioner, and four citizens-at-large (one from each quadrant of the City). 5. Each eligible application for funds shall be reviewed and evaluated, for ranking purposes, based upon the criteria outlined below. Advisory Committee Members and Housing and Redevelopment Department staff will evaluate each eligible proposal/application for funds and assign a score based on a maximum 100 point scale using the following criteria: a. ORGANIZATIONAL ABILITY/CAPACITY Maximum of 25 Points i. Experience of organization in providing 5 pOjnts services to low/moderate income persons/households and in providing the proposed activity, ii. Capacity/ability of staff assigned to implement 5 Points proposed activity, ii. Organization's experience with the 5 Points administration of CDBG or other State or Federal funds. APPLICATION REVIEW PROCESS PAGE 3 iv. Level of ability demonstrated by organization 10 Points to provide services and to adhere to applicable local, State, or Federal regulations governing funding sources. b. FINANCIAL CAPACITY/STABILITY Maximum of 25 Points i. Leveraging of CDBG funds with outside 15 Points resources to finance proposed activity. II. Relatively stable financial position 10 Points c IMPLEMENTATION OF ACTIVITY Maximum of 10 Points i. Demonstration of organization's readiness to 10 Points implement proposed activity d BENEFITS/BENEFICIARIES Maximum of 40 Points i. Accessibility of activity for use by Carlsbad 10 Points clients, ii. Extent to which proposed activity benefits low 10 Points income persons/households (50% of median family income), iii. Extent to which proposed activity benefits low 10 Points income Carlsbad households iv. Extent to which proposed activity meets the 10 Points needs of low income residents 6. To facilitate the complete evaluation of eligible proposals/applications, applicants will be given the opportunity to participate in a 10 minute interview with the Funding Advisory Committee and staff. The public will also be given the opportunity to comment on the eligible proposals being considered for funding at a City Council meeting. The interview will provide the Advisory Committee and staff with an opportunity to obtain additional information regarding the organization and the proposed activity that may not have been provided, or was unclear in the application. Applicants should provide any documents that may assist the Advisory Committee and staff in evaluating the proposal/application prior to this interview. 7. Following the interview of each eligible proposal/application, Advisory Committee Members and staff will complete their evaluation of the proposal according to the criteria noted above. Committee Members will then submit their proposal scores to staff for averaging. Proposals must receive a minimum average score of 50 out of 100 points to remain eligible for funding. Staff will then rank and categorize the eligible proposals/applications into the following five classifications: a. Public services for the purpose of providing or maintaining affordable housing; b. Public services for the purpose of providing general social services; c. Public services for the purpose of providing specialized social services for children and adults; d. Proposals to create new affordable housing opportunities; and e. Other eligible projects not included in public service categories, such as facility improvements or property acquisitions. This information will then be presented to the Advisory Committee for further review to determine the level of funding to be recommended for each proposal. 8. It is the Advisory Committee's responsibility to make a recommendation on the level of IS APPLICATION REVIEW PROCESS PAGE 4 funding to be allocated to the eligible activities according to the order the proposals/applications were ranked within each classification. The Advisory Committee shall work from the top of each list to the bottom, taking one proposal at a time on a rotation basis from each classification, and recommend a funding level for the proposal until all available funds have been allocated to eligible activities. This process will be used to make funding recommendations for public service, public facility/other, and affordable housing proposals. Recommended funding amounts will be distributed evenly among the three public service categories (housing, general social services, and specialized social services for children or adults). The minimum funding level for each recommended activity shall be $5,000, but shall not exceed the requested funding amount. EXAMPLE: The Advisory Committee shall take the highest ranked public service activity listed within "Affordable Housing" and make a funding recommendation for this activity. Then, the Committee will consider a funding recommendation for the second ranked proposal in that category, then the third, and so on, until no funds are available for that category. The Committee will then move on to the next public service category. This process will be repeated until funding recommendations have been developed for proposals in all of the categories. CDBG/HOME PROGRAM FUND ALLOCATION PROCESS PUBLIC SERVICE ACTIVITIES/PROJECTS TO' TO' FUf Housing 1. 2. 3. TOTAL PAL FUNDS ALLOCATED FAL FUNDS AVAILABLE General Social Services 1. 2. 3. TOTAL $ Social Services - Children & Adults 1. 2. 3. TOTAL $ ^DS OVER/UNDER TOTAL AVAILABLE $ 9. The Advisory Committee's funding recommendations will be presented to the City Council for action during a public hearing. All applications submitted and the funding recommendations made by the Advisory Committee will be submitted to the City Council for consideration by the end of April of each year. 10. After accepting public comments on the proposals and recommendations, the City Council may accept the Committee's recommendations as submitted or modify them as necessary to meet the needs of low/moderate income persons within the community. 11. Following City Council action, a Consolidated Funding Plan, including the list of selected activities and funding amounts for the CDBG/HOME Program, will be submitted to the U.S. Department of Housing and Urban Development for final approval. CITY OF CARLSBAD COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM PUBLIC HEARING AND REQUEST FOR PROPOSALS The City of Carlsbad is eligible to receive funding, on an annual basis from the federal Community Development Block Grant (CDBG) Program to finance projects, which serve the needs of lower income persons. The funds are to be used to develop viable urban communities through the provision of decent housing and a suitable living environment and by expanding economic opportunities for lower income persons. The City will also receive funding under the HOME Investment Partnership (HOME) Program, as a participant in the San Diego County HOME Consortium. The funds will be used to increase the supply of decent affordable housing to lower income persons. The total amount of CDBG funding available for the 2007-2008 program year is approximately $602,080. This figure includes an estimated $598,000 in new CDBG entitlement allocation, $21,228 in funds available for reallocation, and $66,852 in program income. Of the $602,080 total CDBG funds available, approximately $102,800 will be used for the City's administration of the CDBG Program and up to $77,100 will be available for public service activities based on previous Council direction. A total of $211,090 will be available for facility improvements, or other eligible projects. In addition, approximately $211,090 in CDBG funds and $288,356 in HOME funds will be available to create affordable housing opportunities for lower income households. An additional $205,225 may also be available in the Housing Reserve Fund. To develop a CDBG/HOME Program that meets the needs of the lower income population, the City of Carlsbad requests assistance from members of the community. Citizen participation is critical to the success of the Program. A public hearing will be held on Tuesday, November 21, 2006 to obtain comments on the draft 2005-06 CDBG/HOME Funding Plan. The City encourages all community organizations to consider the needs of lower income persons within Carlsbad and to submit a proposed project, or projects, for consideration by the City Council at a future public hearing in 2007. Organizations are strongly discouraged from applying for funds unless they are ready to implement the activity proposed for funding. A matching funds requirement will be applied to CDBG funded public facilities/improvement activities. Documentation showing use of those matching funds would be required prior to distribution of CDBG funds for activities under that category. CDBG funding for amounts of $100,000 or more will be made in the form of a deferred, no interest loan, to be forgiven in twenty years if the facility remains in use for purposes as stated in the application. The City of Carlsbad is committed to using CDBG/HOME funds to finance projects/services that provide direct benefit to lower income residents. It is also the City's intent to approve CDBG/HOME projects that do not result in the displacement of lower income persons from their homes. Therefore, all persons submitting project proposals to the City should consider the displacement impact upon lower income households. If the City does approve a project that results in displacement of lower income households, the City will provide relocation assistance as required in Section 570.606(b)(2) of the federal regulations for the CDBG program. All organizations wishing to submit a project for funding consideration under the CDBG/HOME program must obtain a "Funding Proposal" application from the City of Carlsbad's Housing and Redevelopment Department. Interested persons may call (760) 434-2818 to obtain an application. All project proposals must be submitted to: Frank Boensch, City of Carlsbad, Housing & Redevelopment Department, 2965 Roosevelt Street, Suite B, Carlsbad, CA 92008 prior to 5:00 p.m. on December 22, 2006. Persons who have questions or comments regarding the City of Carlsbad's CDBG/HOME Program may contact Frank Boensch at (760) 434-2818, Monday through Friday between 8:00 a.m. and 5:00 p.m. PROOF OF PUBLICATION (2010 & 2011 C.C.P.) STATE OF CALIFORNIA County of San Diego This space is for the County Clerk's Filing Stamp 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 City of Oceanside and the City of Escondido, Court Decree number 171349, 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: November 17th, 2006 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at SAN MARCOS California This 17th, Day of November, 2006 Signature Jane Allshouse NORTH COUNTY TIMES Legal Advertising Proof of Publication of CITY OF CARLSBADCOMMUNITY DEVELOPMENT BLOCKGRANT (CDBG) ANDHOME INVESTMENT PARTNERSHIPJJHOME) PROGRAMPUBLIC HEARING AND REQUEST FORPROPOSALS The City of Carlsbad is eligible to receive funding, onan annual basis from the federal Community Devel-opment Block Grant (CDBG) Program to financeprojects, which serve the needs of lower incomepersons. The funds are to be used to develop viableurban communities through the provision of decenthousing and a suitable living environment and by ex-panding economic opportunities for lower incomepersons. The City will also receive funding under theHOME Investment Partnership (HOME) Program, asa participant in the San Diego County HOMEConsortium. The funds will be used to increase thesupply of decent affordable housing to lower incomepersons. The total amount of CDBG funding available for the2007-2008 program year is approximately $602,080.This figure includes an estimated $598,000 in newCDBG entitlement allocation, $21,228 in funds avail-able for reallocation, and $66,852 in program income.Of the $602,080 total CDBG funds avaifable, approx-imately $102,800 will be used for the City's adminis-tration of the CDBG Program and up to $77 100 willbe available for public service activities based on pre-vious Council direction. A total of $211,090 win beavailable for facility improvements, or other eligibleprelects. In addition, approximately $211,090 inCDBG funds and $288.356 in HOME funds will beavailable to create affordable housing opportunitiesfor lower income households. An additional $205,225may also be available in the Housing Reserve Fund. To develop a ^DBG/HOME Program that meetsthe needs of the lower income population, theCity of Carlsbad requests assistance from mem-bers of the community. Citizen participation iscritical to the success of the Program. A publichearing will be held on Tuesday, November 21.2006 to obtain comments on the draft 2005-06CDBG/HOME Funding Plan. The City encouragesall community organizations to consider the needs oflower income persons within Carlsbad and to submita proposed project, or projects, for consideration bythe City Council at a future public hearing in 2007. Organizations are strongly discouraged from ap-plying for funds unless they are ready to impte-ment the activity proposed for funding. A match-ing funds requirement will be applied to CDBGfunded public facilities/improvement activities.Documentation showing use of those matchingfunds would be required prior to distribution orCDBG funds for activities under that category.CDBG funding for amounts of $100,000 or morewill be made in the form of a deferred, no interestloan, to be forgiven in twenty years if the facilityremains in use for purposes as stated in theapplication. The City of Carlsbad is committed to using CD-BG/HOME funds to finance projects/services thatprovide direct benefit to lower income residents. It isalso the City's intent to approve CDBG/HOMEprojects that do not result in the displacement of low-er income persons from their homes. Therefore, allpersons submitting project proposals to the Cityshould consider the displacement impact upon lowerincome households. If the City does approve aproject that results in displacement of lower incomehouseholds, the City will provide relocation assis-tance as required in Section 570.606(b)(2) of thefederal regulations for the CDBG program. All organizations wishing to submit a project for fund-ing consideration under the CDBG/HOME programmust obtain a "Funding Proposal" application tromthe City of Carlsbad's Housing and RedevelopmentDepartment. Interested persons may call (760) 434-2818 to obfain an application. AH project proposalsmust be submitted to: Frank Boensch, City ofCarlsbad, Housing & Redevelopment Depart-ment, 2965 Roosevelt Street, Suite B, Carlsbad,CA 92008 prior to 5:00 p.m. on December 22,2006. Persons who have questions or comments re-garding the City of Carlsbad's CDBG/HOME Programmay contact Frank Boensch at (760) 434-2818, Mon-day through Friday between 8:00 a.m. and 5:00 p.m. Publish Date: November 17, 2006 NCT 2001802 2007-2008 CDBG/HOME PROGRAMCommunity Development Block Grant (CDBG)Home Investment Partnership (HOME) CDBG/HOME ProgramI. Program BackgroundII. Funding AvailabilityIII. Application Review and Funding ProcessIV. Recommendations for Council Actions I.BACKGROUNDzCDBG„Serve needs of lower income persons„Develop viable communitieszHOME„Improve affordable housing opportunities for lower income persons National ObjectiveszProvide benefits to lower income persons.zAid in the prevention or elimination of slums or blight.zMeet other urgent needs if no other funds are available to meet those needs. Funding Plan StrategyLocal Objective CategorieszAffordable HousingzGeneral ServiceszSpecialized Services HOME Eligible ActivitieszProperty AcquisitionzHousing RehabilitationzNew ConstructionzRental Assistance and Security DepositszHome Buyer Assistance II. FUNDING AVAILABILITYzNo recommended changes to distribution of funds as approved by Council last year. CDBG/HOME FUNDS Activities2007-2008 GrantReallocations and IncomeTotal Funds AvailablePublic Service (15%) 77,10077,100Program Admin (20%) 102,800102,800Facilities, Improvements and Other Eligible Activities 167,050 44,040211,090Affordable Housing 167,050 44,040211,090Subtotal514,000 88,080602,080Housing Programs/Projects 288,356288,356Subtotal288,356288,356TOTAL802,356 88,080890,436CDBGHOME III. Application Review and Funding ProcesszNotices placed in newspaper and mailed to those on CDBG/HOME interest list.zApplications available from the Housing & Redevelopment Dept. 2965 Roosevelt Street, Suite B Phone No. 760-434-2818 zDeadline for submission: Dec. 21, 2006 CDBG/HOMEAdvisory CommitteezPlanning Commissioner (Vacant)zHousing Commissioner zSenior Commissioner zSoutheast Quadrant Resident (Vacant) zNortheast Quadrant Resident zNorthwest Quadrant ResidentzSouthwest Quadrant Resident (Vacant) Application Review and Funding ProcesszApplications are reviewed for eligibility.zEligible applications are evaluated and scored by the Committee and staff.zApplicants are interviewed Application Review andFunding ProcesszCommittee develops recommended funding levels for Council consideration.zCity Council holds public hearing on proposals and makes final decision on funding. IV. REQUESTED ACTIONSzAccept Public Comments and Approve the CDBG/HOME Funding Plan zAuthorize Staff to Distribute Requests for ProposalszApprove the Proposed Application Review and Funding Process 2007-2008 CDBG/HOME Program