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HomeMy WebLinkAbout2008-04-01; City Council; 19377; Allocation for the CDBG/HOME programCITY OF CARLSBAD - AGENDA BILL AB# 19,377 MTG. 4/1/08 DEPT. HRED APPROVAL OF ALLOCATIONS FOR THE 2008-2009 CDBG/HOME QQ/*\X"*Oyi MjffPROGRAM DEPT. HEABTD^>^ CITY ATTYr^££ CITY MGR. JLA- — RECOMMENDED ACTION: Adopt Resolution No. 2008-092 approving the projects and funding allocations for the City of Carlsbad's 2008-2009 Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Program and authorizing the City Manager to enter into funding agreements for the approved projects. 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 CDBG Entitlement Program to finance programs that serve the needs of lower income persons. As a participant in the San Diego County 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 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. A second public hearing was held on March 18, 2008 to provide another opportunity to obtain comments on the needs of lower income households and the specific proposals submitted for funding through the 2008-2009 CDBG/HOME Program. 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 $416,566 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 $282,000. The City received twenty-one proposals for use of CDBG or HOME funds from various organizations in response to a Request for Proposals distributed in November of 2007. The proposals were reviewed and evaluated by the CDBG/HOME Advisory Committee and staff prior to interviewing representatives from the organizations. The Committee then met to develop the funding recommendations outlined in Exhibit 2. FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED *D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D PAGE 2 The chart below summarizes the amount of funding requested and the maximum amount that may be available for allocation in each expenditure category: EXPENDITURE CATEGORY AMOUNT OF REQUESTED FUNDING ($) CDBG ' . " -' :..-. ;\-v. :••••' -• ., •./:=''*;,•• ' : 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 281,665 281,665 1,434,623 AMOUNT OF AVAILABLE FUNDING ($) 74,860 232,105 648,675 99,810 1,055,450 281,660 281,660 1,337,110 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 developmentally 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 $281,660 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 CONTINGENCY FUNDS During the Public Hearing held on March 18th, a majority of the City Council requested that staff include the consideration of providing $6,500 from the General Fund Council Contingency to assist in the operation of Fraternity House by Fraternity House, Inc. Authorization for the Finance Director to appropriate and expend those funds is included in the attached resolution for City Council consideration. RECOMMENDATION: It is recommended that the City Council adopt Resolution No. 2008-092 approving the program funding recommendations as outlined in Exhibit 2 for the City's 2008-2009 CDBG/HOME Program authorizing the City Manager to enter into funding agreements for the approved projects. FISCAL IMPACT: Approximately $1,055,450 is available for allocation through the City's 2008-2009 CDBG Program. An additional $281,660 is expected to be available in 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 $6,400 from the County Consortium to cover City administrative expenses for the HOME Program. The CDBG/HOME Program has no impact on the General Fund. Adequate funds are available in the General Fund Council Contingency to provide $6,500 to Fraternity House, Inc. to assist with the operation of Fraternity House. EXHIBITS: 1. Resolution No. 2008-092 approving funding allocations for the 2007-2008 CDBG/HOME Program and authorizing the City Manager to enter into funding agreements for the approved projects. 2. Summary of CDBG funding allocation recommendations. DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, fboen@ci.carlsbad.ca.us 3 CITY COUNCIL RESOLUTION NO. 2008-092 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, SELECTING SPECIFIC PROJECTS FOR FUNDING UNDER THE 2008-2009 COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP PROGRAMS AND AUTHORIZING THE CITY MANAGER TO ENTER INTO FUNDING AGREEMENTS. WHEREAS, the City Council of the City of Carlsbad, California, held a public hearing on March 18, 2008 to accept comments on the needs of lower income persons and the proposals submitted for funding under the 2008-2009 Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs; and, WHEREAS, the City Council considered the CDBG/HOME Funding Advisory Committee's 10 recommendations for project funding allocations; and, 11 WHEREAS, the City Council selected the projects to be included in the City of Carlsbad's 2008- 12 2009 CDBG/HOME Program; and, 13 WHEREAS, the City Council has taken all testimony into account. 14 NOW, THEREFORE BE IT HEREBY RESOLVED as follows: 15 1. That the above recitations are true and correct. 16 2. That the projects selected by the City Council and attached as Exhibit 2 are hereby approved at the indicated funding levels for inclusion in the City's 2008-2009 CDBG/HOME Program. 17 3. That the City Manager, with City Attorney concurrence, is authorized to execute funding 18 agreements with the County of San Diego and selected organizations for the approved funding amounts. 19 4. That the Finance Director is authorized to appropriate and expend $6,500 from the General 20 | Fund Council Contingency for the operation of Fraternity House by Fraternity House, Inc. 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 1st day of April, 2008, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall and Nygaard. NOES: Council Member Packard. ABSENT: None. "CLAUDE A LEWIS, Mayor ATTEST: V. ,fl/ \ / • •NUJ^*' HE M. Wotob, City^-^-^ 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 Abused 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 $281,667 HOME $795,000 ** * Grants for Boys and Girls Club Improvements and United We Paint include 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.