HomeMy WebLinkAbout2008-03-18; City Council; 19371; 2008/09 CDBG and HOME program20
CITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
19.371
3/18/08
HRED
2008-2009 COMMUNITY
DEVELOPMENT BLOCK GRANT AND
HOME INVESTMENT PARTNERSHIP
PROGRAM
DEPT. HEAD,
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
Hold a public hearing to accept comments on the housing and community development needs of
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
2008-2009 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 two public hearings 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 13, 2007. 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
2008-2009 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 $499,000 during
fiscal year 2008-2009. The City's CDBG Program has also collected $92,355 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 $47,455 is available from prior year allocations that were not used and
are available for the 2008-2009 program year. An additional $4^6,566 is available in the CDBG
Housing Reserve Fund from funds that were not allocated in the 2006-07 and 2007-08 program years
due to a lack of housing related applications. The total amount of CDBG funds currently available for
allocation to eligible projects is $1,055,450. The total amount of 2008-2009 HOME funds available for
allocation to eligible projects is anticipated to be approximately $282,000.
The City received twenty-one proposals for use of CDBG or HOME funds from various organizations
in response to a Request for Proposals distributed in November of 2007. The proposals were
reviewed and evaluated by the CDBG/HOME Advisory Committee and staff prior to interviewing
representatives from the organizations. The Committee then met to develop the funding
recommendations outlined in Exhibit 2.
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
D
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
D
D
D
D
Council accepted public comments on the CDBG/HOME program proposals (See Minutes for
Details)
PAGE 2
The chart below summarizes the amount of funding requested and the maximum amount that may be
available for allocation in each expenditure category:
EXPENDITURE CATEGORY
AMOUNT OF
REQUESTED
FUNDING ($)
CDBG . •'• /,,, ' ' :.,--c^r,/"'- '
Public Services
Public Facility Improvements & Other
Projects
Affordable Housing
Administration and Fair Housing
Subtotal
183,148
75,000
795,000
99,810
1,152,958
HOME
Affordable Housing
Subtotal
TOTAL
281,645
281,645
1,434,603
AMOUNT OF
AVAILABLE
FUNDING ($)
74,860
232,105
648,675
99,810
1,055,450
281,645
281,645
1,337,095
CDBG FUNDS
The Advisory Committee is recommending that the $74,860 in CDBG funds available for public
service activities be allocated to twelve different organizations in amounts ranging from $4,953 to
$10,000. Exhibit 2 lists the funding recommendations for all twenty-one proposals. The Committee is
recommending that $25,000 of the CDBG funds available in the Public Facility Improvements/Other
Projects category be allocated to the Boys and Girls Club for facility improvements to their Village
Branch and $50,000 of the funds be allocated to United We Paint for a home improvement program to
be made available to lower income homeowners. These two grants for improvement projects will
include a one dollar matching requirement for every two dollars to be provided in CDBG funds.
The remaining $157,105 in funding available for facilities and $637,895 in funds available for
affordable housing is recommended for allocation to Training, Education and Research (TERI) Inc. to
assist them in purchasing a residential care home for developmental^ disabled individuals. It is
recommended that the funds be provided in the form of a twenty-year loan which would be forgiven if
the property is used as a residential care facility for the entire term of the loan. The loan would
include a one dollar matching requirement for every two dollars to be provided in CDBG funds.
Eligible Carlsbad residents would be given priority in the selection of persons who will be residing in
the home. The remaining $10,780 currently available for affordable housing would be made available
again next year during the selection process for the 2009-2010 program year.
HOME FUNDS
County staff is requesting that the City allocate all HOME funds available to the City to a program to
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 $281,645 in
2008-2009 HOME funds to a Down Payment and Closing Cost Assistance (DPCCA) Program. It is
anticipated that the DPCCA 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. Details of the
program will be submitted to the City Council for approval at a later date.
PAGES
RECOMMENDATION:
It is staff's 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 2008-2009 CDBG/HOME Program
to meet those needs.
FISCAL IMPACT:
Approximately $1,055,450 is available for allocation through the City's 2008-2009 CDBG Program.
An additional $281,645 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 $99,810, 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. 2008-2009 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
CITY OF CARLSBAD
CDBG/HOME PROGRAM
2008-2009 FUNDING PLAN
CITY OF CARLSBAD
2008-2009
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
2008-2009
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SUMMARY OF ESTIMATED FUNDS AVAILABLE FOR 2008-2009 PROGRAM YEAR
Source of Funds
New Entitlement Grant
Program Income
Reallocation of Prior Year Funds
Housinq Reserve Fund
TOTAL
Amount($)
499,074
92,355
47,455
416,566
1,055,450
Funds Available by Activity Amount f$V
Public Service 74,860
Affordable Housing 648,675
Public Facilities, Improvements/Other 232,105
Program Administration/Fair Housing 99.810
Total Available Funds 1,055,450
3 of 5
<o
2008-2009
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
Element and the Consolidated Plan. Staff will present the recommendations for project
funding to the City Council for consideration and final approval.
4 of 5
7
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.
SUMMARY OF FUNDS AVAILABLE FOR 2008-2009 PROGRAM YEAR
It is anticipated that approximately $281,645 in HOME Funding will be available for
Carlsbad during the 2008-2009 Program Year.
5 of 5
EXHIBIT 2
2008-2009 CITY OF CARLSBAD CDBG/HOME PROGRAM
LIST OF PROJECT PROPOSALS AND FUNDING RECOMMENDATIONS
APP.
NO.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
AGENCY/PROJECT
Brother Benno Foundation
Brother Benno Center
Community Resource Center
Homeless Prevention and Intervention
Fraternity House
AIDS Caregiving Program
Hospice of the North Coast
Hope Bereavement Center
North County Community Services
Food Bank
North County Health Services / Health
Screening and Immunizations
Catholic Charities / La Posada de
Guadalupe Homeless Shelter
Interfaith Community Services
Housing Assistance Program
Solutions for Change
Homeless Intake and Access Center
Women's Resource Center
Alternatives to Abuse Shelter
YMCA OZ
Youth Shelter
Boys and Girls Club
Teen Scene Program
Casa de Amparo/Food Program for
Neglected and Abu"sed Children
From the Inside Out
CROP, AWARE and CAMP Programs
Lifeline Community Services
After School Program
TERI, Inc./La Costa Residential Care
Facility Pool Renovation Project
Boys and Girls Club
Village Branch Improvements
United We Paint
Carlsbad Cares
City of Carlsbad
Housing Reserve Fund
City of Carlsbad/Down Payment and
Closing Cost Program
TERI, Inc./Acquisition of Home for
Residential Care Purposes
TYPE OF
PROJECT
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Services
Public Facilities or
Other Eligible Activities
Public Facilities or
Other Eligible Activities
Affordable Housing
Affordable Housing
Affordable Housing
REQUESTED
AMOUNT
$10,000
$7,500
$7,575
$8,000
$5,000
$12,995
$30,000
$12,999
$5,000
$15,000
$5,000
$15,000
$10,000
$11,500
$17,579
$10,000
$25,000
$50,000
$481,340
CDBG
$281 ,665
HOME
$795,000
CDBG
RECOMMENDED
FUNDING
$5,000
0
0
$5,000
$5,000
$9,953
$5,000
$5,000
$5,000
$5,000
0
$10,000
$4,953
$4,953
$10,000
0
$25,000 *
$50,000 *
0
$281,665
$795,000 **
* Grants for Boys and Girls Club Improvements and United We Paint includes a one dollar matching
requirement for every two dollars to be provided in CDBG funds.
** Funding for the TERI Inc. acquisition of property is to be provided in the form of a twenty-year loan
which will be forgiven if the property continues to be used as a residential care home for the entire
term of the loan. The loan is to include a one dollar matching requirement for every two dollars
provided in CDBG funds. Eligible Carlsbad residents must be given priority in the selection of persons
who will be residing in the home.
PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
This space is for the County Clerk's Filing Stamp
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
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:
March 14th, 2008
I certify (or declare) under penalty of perjury that the
foregoing is true and correct.
Proof of Publication of
City of Carlsbad
Notice of Public Hearing
The citizens of Carlsbad and other interested partiesare hereby notified that Carlsbad's City Council willhold a public hearing on Tuesday, March 18,2008 at6:00 pm in the Council Chambers located 1200Carlsbad Village Drive to accept public comments onthe needs of Tower income persons in Carlsbad fordevelopment of the City's CDBG/HOME Program's2008-2009 Annual Funding Plan. Pubjic commentswill also be received on proposals submitted for fund-ing through the City's 2008-2009 CDBG/HOMEProgram. The City has approximately $1,055,000available for allocation to eligible CDBG projects and$282,000 to eligible HOME projects.
The City of Carlsbad is committed to using CD-BG/HOME funds to finance projects/services thatprovide direct benefit to lower income residents. Todevelop a CDBG/HOME program that meets theneeds of the low and moderate-income population,the City of Carlsbad requests assistance from mem-bers of the community. Citizen participation is criticalto the success of Ihe Carlsbad CDBG/HOMEprogram. Therefore, the City invites all communitymembers to consider the needs of lower income per-sons within Carlsbad, to attend the public meetings,and to provide comments on the housing and com-munity development needs of lower-income personsas part of the development of a 2008-2009 AnnualPlan for the program. Public comments are also re-quested on the various proposals that have beensubmitted for funding under Carlsbad's 2008-2009CDBG/HOME Program. Those proposals selectedfor funding will be identified within the Annual Plan asthe activities the City will pursue in the upcoming yearto meet the needs of lower income Carlsbadresidents. The City has received a total of 21 pro-posals for CDBG/HOME funding. The applicationperiod for 2008-2009 funds has ended. Copies of allproposals are on file in the Housing and Redevelop-ment Department. '
Persons who have questions or comments regardingthe City of Carlsbad's CDBG/HOME Program or whowould (ike more specific information oni the proposalssubmitted for 2008-2009 CDBG/HOME funding con-sideration and those being recommended for funding,please contact Frank Boensch at (760) 434-2818.
Persons in need of translators o'r other special ser-vices should contact the City Manager's Office at(760) 434-2821.
PUBLISH: MARCH 14, 2008 NCT 2132809
Dated at SAN MARCOS California
This 14th, day of March, 2008
Jane Allshouse
NORTH COUNTY TIMES
Legal Advertising
City of Carlsbad
2008-2009 Annual Funding Plan for
Community Development Block Grant (CDBG) 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 18, 2008 at 6:00 pm in the
Council Chambers located 1200 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 2008-2009 Annual Funding Plan. Public comments will also
be received on proposals submitted for funding through the City's 2008-2009
CDBG/HOME Program. The City has approximately $1,055,000 available for allocation
to eligible CDBG projects and $282,000 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 2008-2009 Annual Plan for the program. Public
comments are also requested on the various proposals that have been submitted for
funding under Carlsbad's 2008-2009 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 21 proposals for CDBG/HOME funding. The
application period for 2008-2009 funds has ended. 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 2008-2009 CDBG/HOME funding consideration and those being
recommended for funding, please contact Frank Boensch at (760) 434-2818.
Persons in need of translators or other special services should contact the City
Manager's Office at (760) 434-2821.
PUBLISH: MARCH 14, 2008
CDBG/HOME PROGRAM2008-2009Program Year
CDBG/HOME ProgramzCommunity Development Block GrantTo help serve the needs of lower income personsTo 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 2008-09 program year.
CDBG/HOME FUNDS Activities Requested Funding Total Funds Available CDBG Public Services 183,148 74,860 Public Facilities/Other Projects 75,000 232,105 Affordable Housing 795,000 648,675 Administration 99,810 99,810 Subtotal 1,152,958 1,055,450 HOME Affordable Housing 281,645 281,645 Subtotal 281,645 281,645 TOTAL 1,434,603 1,337,095
CDBG/HOME Funding Advisory CommitteePlanning Commissioner Bill Dominguez Housing Commissioner Doris Richie Senior Commissioner Peggy Savary Northwest Quadrant Elaine Nielsen Northeast Quadrant Kathy Blackburn 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 PROGRAM2008-2009Program Year