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HomeMy WebLinkAbout2007-03-20; City Council; 18940; 2007-2008 CDBG and Home investment programCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 18,940 3-20-07 HRED 2007-2008 COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP PROGRAM DEPT. HEACKEK^^ CITYATTY. ^~7W CITYMGR. ^^v^> RECOMMENDED ACTION: Hold a public hearing to accept comments on the housing and community development needs oi lower income households within the City of Carlsbad. In addition, the City Council may accept comments on the various proposals that have been submitted for funding under the City of Carlsbad's 2007-2008 Community Development Block Grant and HOME Investment Partnership Program. ITEM EXPLANATION: Under Title I of the Housing and Community Development Act of 1974, the City of Carlsbad continues to be eligible to receive funding under the federal Community Development Block Grant (CDBG) Entitlement Program to finance programs that serve the needs of lower income persons. As a participant in the San Diego Urban HOME Investment Partnership (HOME) Consortium, the City will also receive federal funds to provide affordable housing opportunities for lower income households. In identifying the needs of lower income persons, federal regulations require that the City Council hold at least one public hearing to obtain the views of citizens on Carlsbad's housing and community development needs. An initial public hearing to invite comments on the City's CBDG/HOME Program Consolidated Funding Plan Strategy was held on November 7, 2006. This second public hearing will provide another opportunity to obtain comments on the Consolidated Funding Plan Strategy (Exhibit 1) and the City's housing and community development needs. In addition, this hearing will provide an opportunity for public comment on the specific proposals submitted for funding through the Carlsbad 2007-2008 CDBG Program. The City Council will consider approval of the proposals and funding levels at a future meeting. The City of Carlsbad is entitled to receive a new CDBG allocation of approximately $514,000 during fiscal year 2007-2008. The City's CDBG Program has also collected $66,852 from lease payments made by the developer of the Villa Loma affordable housing project. These payments represent "program income" to the program because CDBG funds were used to assist in purchasing the Villa Loma property. An additional $21,228 is available from prior year allocations that were not used and are available for the 2007-2008 program year. The total amount of CDBG funds currently available for allocation to eligible projects is approximately $602,000. The total amount of 2007-2008 HOME funds available for allocation to eligible projects is anticipated to be approximately $272,500. An additional $283,971 is available from prior year HOME funds. The City received eighteen proposals for use of CDBG or HOME funds from various organizations in response to a Request for Proposals distributed in November of 2006. The proposals were reviewed and evaluated by the CDBG/HOME Advisory Committee and staff prior to interviewing representatives from the organizations in February. The Committee met again on March 5th to develop the funding recommendations outlined in Exhibit 2. FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES n D D D PAGE 2 The chart below summarizes the amount of funding requested and the maximum amount that may be available for allocation in each expenditure category: EXPENDITURE CATEGORY AMOUNT OF REQUESTED FUNDING ($) CDBG " ' ' '" • -•-<?••. :; -. :" •••'•• : '.-. - •" • Public Services Public Facility Improvements & Other Projects Affordable Housing Administration and Fair Housing Subtotal 197,292 211,090 211,090 102,800 722,272 NOME > •:. .•••':• '"•• . -'>:>; • " ' - ' Affordable Housing Subtotal TOTAL 299,910 299,910 1,022,182 AMOUNT OF AVAILABLE FUNDING ($) 77,100 211,090 211,090 102,800 602,080 , ; -, -t • v 272,500 272,500 874,580 CDBG FUNDS The Advisory Committee is recommending that the $77,100 in CDBG funds available for public service activities be allocated to thirteen different organizations in amounts ranging from $5,000 to $9,700. Exhibit 2 lists the funding recommendations for all eighteen proposals. The Committee is recommending that the $211,090 in CDBG funds available in the Public Facility Improvements/Other Projects category be allocated to the Library Learning Center, which is the only proposal eligible for those funds. City staff's proposal to allocate funds to the Housing Reserve Fund is the only proposal eligible for the $211,090 in CDBG funds available for affordable housing purposes. Any future proposal to use Housing Reserve Funds must be approved by the City Council. HOME FUNDS County staff recently requested that the City allocate all HOME funds available to the City to a program in help the Consortium comply with federal guidelines concerning the commitment of those funds. The Consortium as a whole must meet those commitment requirements or risk losing future funds. As a result, City staff has agreed to recommend that the City Council allocate the estimated $272,500 in 2007-2008 HOME funds, and $283,971 in prior year HOME funds, to a Down Payment and Closing Cost Assistance (DCCA) Program. It is anticipated that the DCCA Program would be used to assist low income households qualify for loans to purchase homes developed as a result of the City's Inclusionary Housing Ordinance. The CDBG Advisory Committee has agreed with staff that establishment of a DCCA Program would be an appropriate use of the HOME funds. Details of the program will be submitted to the City Council for approval at a later date. RECOMMENDATION: It is staffs recommendation that the City Council accept public comments on the needs of low income persons and the proposals submitted for funding under the City's 2007-2008 CDBG/HOME Program to meet those needs. PAGES FISCAL IMPACT: Approximately $874,580 is available for allocation through the City's 2007-2008 CDBG/HOME Program. An additional $283,971 is available in prior year HOME funds. The City Council made a previous decision to use the maximum twenty percent (20%) of the new CDBG allocation, or $102,800, for administration of the City's CDBG program. It is anticipated that the City will receive approximately $7,000 from the County Consortium to cover City administrative expenses for the HOME Program. The CDBG/HOME Program has no impact on the General Fund. EXHIBITS: 1. 2007-2008 Consolidated Funding Plan Strategy. 2. Summary of CDBG funding allocation recommendations. 3. CDBG/HOME funding applications. (On file in the Housing and Redevelopment Department.) DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, fboen@ci.carlsbad.ca.us J EXHIBIT 1 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 S 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 ($) 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 7 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 $272,500 5 of 5 s pQo (N tm xUJ o g Q <z o eo S0 ST S 0 °N UJ aUJ OT li B» § o< § M O 06-07 FUND!APPROVED0 u. «- In syUJ ^a o r- Q.AGENCY/PROJECTli^ mm I T" CN OCJ5O_ ^CM 0Ooo"O) CO0si0 Os < 'o ®CD ^ .O [jj D_ ^4-r O City of CarlsbadLibrary Learning CenterT~ OGOQ O 8wJ y— ^ —CN O 8 ^iin inCNCM in"oCN O)c 'eo Qf n ^~ fQ ^~ O ro"O 1 City of CarlsbadHousing Reserve FundCM o T— COCD"60 O ^"co -5 £ b 0 "O o = o .52 CO TERI, Inc.Playground Refurbishmentco oo<D LO«/» 8oco"6O O0oCD" CO CO ^ £ ^ 0 -o o .b! 'o .£5 CO Meals on WheelsMeal Delivery Service"* 0oo r-T6O CDCN CO •*}"" 60 "co.0 siCO LL 60 ^ CMo"CD "to" §1£b O .N X! CD d!g CO Lifeline Community ServicesAfter School Programm o om CN m" 60 O "co co £ 0 3P 0 (P .^ O N o CO 3 '0Q. 0 CO "c.0 0 Hospice of North Coast/Berea^Center Services for ChildrenCO 0oo in" 8oN." 60 o8 in" 6O "cosf.0 o£b O N & .COI g CO From the Inside OutCROP and AWARE Programs^ o co"60 OOom" 60 .0 gl o in" •» §|£b O N o CD £ g CO Eji 2 "iZb 2 1 8roco CO 0oo in" o 0o in"60 o8 in" 8 |.£ 0 0ja -*- (X L_ N ~® Oco O) 8o in o0om" £ 0o in" CO0o |.E o ° XI X [L Women's Resource CenterAlternatives to Abuse Sheltero 0oo in" o0o m"60 o8 m" CO0o I-E o| J3 •J- Q.Solutions for ChangeSolutions Family CenterT~ o in O5O5N." 60 O CO 8 £ c o | nx D.Fraternity HouseMeals with Care ProgramCM 0o in" 8oo" lo o0o o" (0 8j> g o 8 XI Q_ 0 Catholic Charities / La PosadaGuadalupe Homeless Shelterco 8o in" o0o o" 6O 1 'oCOIX o1 6% § C S| XI X a.Casa de AmparoShelter for Abused ChildrenT~ 0oCN_ O56O COCOco co" 60 o0o CM" CO0O £ ro 0 0CO c XI Q_ x: "co0 ^^_North County Health Services ,Screening and Immunizationsm 8o in" CM CD" feO o CO 8 £ E 0 0 CO C XI °- 8c fl Interfaith Community ServicesSocial Services/Housing AssisCO o8 in" 0oo o" 60 8 CD" o £ ro 0 0CO c o * XI Q. C.g "c0£Community Resource CenterHomeless Prevention and Inte*~ osCD" 60 o8 o" 6O 8oN." 6O CO 8 £ 5 oj XI UD Brother Benno FoundationBrother Benno Centerco LU OI l/^^_ CDinin60 < "Z. o O)_c LU T 2 ~t. il 1 C CO c r ro City of Carlsbad/Down PaymeiClosing Cost Assistance Progr< "Z. City of Carlsbad 2007-2008 Annual Funding Plan for Community Development Block Grant (CDBGJ Program and HOME Investment Partnership (HOME) Program Notice of Public Hearing The citizens of Carlsbad and other interested parties are hereby notified that Carlsbad's City Council will hold a public hearing on Tuesday, March 20, 2007 at 6:00 pm in the Council Chambers located 1 200 Carlsbad Village Drive to accept public comments on the needs of lower income persons in Carlsbad for development of the City's CDBG/HOME Program's 2007-2008 Annual Funding Plan. Public comments will also be received on proposals submitted for funding through the City's 2007-2008 CDBG/HOME Program. The City has approximately $602,000 available for allocation to eligible CDBG projects and $556,500 to eligible HOME projects. The City of Carlsbad is committed to using CDBG/HOME funds to finance projects/services that provide direct benefit to lower income residents. To develop a CDBG/HOME program that meets the needs of the low and moderate-income population, the City of Carlsbad requests assistance from members of the community. Citizen participation is critical to the success of the Carlsbad CDBG/HOME program. Therefore, the City invites all community members to consider the needs of lower income persons within Carlsbad, to attend the public meetings, and to provide comments on the housing and community development needs of lower-income persons as part of the development of a 2007-2008 Annual Plan for the program. Public comments are also requested on the various proposals that have been submitted for funding under Carlsbad's 2007-2008 CDBG/HOME Program. Those proposals selected for funding will be identified within the Annual Plan as the activities the City will pursue in the upcoming year to meet the needs of lower income Carlsbad residents. The City has received a total of 18 proposals for CDBG/HOME funding. Copies of all proposals are on file in the Housing and Redevelopment Department. Persons who have questions or comments regarding the City of Carlsbad's CDBG/HOME Program or who would like more specific information on the proposals submitted for 2007-2008 CDBG/HOME funding consideration and those being recommended for funding, please contact Frank Boensch at (760) 434-2818. If you challenge the proposals submitted for 2007-2008 CDBG/HOME funding consideration and those being recommended for funding in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City of Carlsbad, Attn: City Clerk's Office, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, at or prior to the public hearing. Persons in need of translators or other special services should contact the City Manager's Office at (760) 434-2821. Publish Date: March 17, 2007 City of Carlsbad City Council CDBG/HOME PROGRAM2007-2008Program Year CDBG/HOME ProgramzCommunity Development Block Grant„To help serve the needs of lower income persons„To assist in the development of viable communitieszHome Investment Partnership „To provide affordable housing opportunities for lower income persons CDBG/HOME Public HearingzReceive comments on the needs of lower income residents.zOpportunity to comment on proposals for 2007-08 program year. CDBG/HOME FUNDS Activities Requested Funding Total Funds Available CDBG Public Services 197,292 77,100 Public Facilities/Other Projects 211,090 211,090 Affordable Housing 211,090 211,090 Administration 102,800 102,800 Subtotal 722,272 602,080 HOME Affordable Housing 299,910 272,500 Subtotal 299,910 272,500 TOTAL 1,022,182 874,580 CDBG/HOME Funding Advisory CommitteePlanning Commissioner Bill Dominguez Housing Commissioner Sondra Boddy Senior Commissioner Mike O’Connell Northwest Quadrant Elaine Nielson Northeast Quadrant Susan Pynes Southwest Quadrant Dr. Gary Godward Southeast Quadrant Sharon Redsun Requested ActionszAccept public comments on the needs of lower income residents and CDBG/HOME Program proposals.zExpress Council’s intent to approve final funding allocations at a future meeting. CDBG/HOME PROGRAM2007-2008Program Year