HomeMy WebLinkAbout2011-04-05; City Council; 20503; CDBG AND HOME INVESTMENT PROGRAMCITY OF CARLSBAD - AGENDA BILL
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2011-2012 COMMUNITY
DEVELOPMENT BLOCK GRANT AND
HOME INVESTMENT PARTNERSHIP
PROGRAM
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CITY ATTY. ^^&2>
CITY MGR. (jj^.
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
2011-2012 Community Development Block Grant (CDBG) 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 U.S. Department of Housing and Urban Development
(HUD) CDBG 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 9, 2010. 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
2011-2012 CDBG/HOME Program. The City Council will consider approval of the proposals and
funding levels at a future meeting.
The City of Carlsbad received an allocation of approximately $550,500 in CDBG funds for the 2010-
2011 fiscal year. Recent federal government budget proposals suggest that CDBG allocations for the
2011-2012 fiscal year will be substantially less than the current year's allocation. Staff is estimating
that the 2011-2012 allocation may be approximately $440,400, which is twenty percent less than the
2010-2011 allocation. Approximately $102,800 will be available for allocation from CDBG program
income from lease payments on the Villa Loma Apartments property, which was partially purchased
with CDBG funds. Approximately $134,400 will be available in unused funds from a prior year
allocation to the Street Light Retrofit Project due to favorable bids received on that project. It is
anticipated that the total amount of CDBG funds currently available for allocation to eligible projects
will be approximately $677,600. Staff anticipates that Carlsbad will receive approximately $232,000 in
HOME funds for allocation during the 2011-2012 fiscal year, which is nearly twenty percent less than
the current year's allocation of $289,876.
DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, fboen@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION:APPROVED D
DENIED D
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER - SEE MINUTES D
PAGE 2
The City received twenty-one proposals for use of CDBG or HOME funds in response to a Request
for Proposals distributed in November and December of 2010. The CDBG/HOME Advisory
Committee evaluated the proposals and interviewed applicants prior to developing the funding
recommendations outlined in Exhibit 2. The chart below summarizes the amount of funding
requested and the maximum amount that may be available for allocation in each expenditure
category:
EXPENDITURE CATEGORY
AMOUNT OF
REQUESTED
FUNDING ($)
GDBG-'fi-^^-^^^^i^^" ''',•• v>' ;" %':*v-?' .'"''. <" '•-
Public Services
Public Facility Improvements,
Affordable Housing & Other Projects
Administration and Fair Housing
Total
216,431
932,000
88,000
1,236,431
l_i/"Sfc »r"* •.'>'••. :". - • "•'.-. »J,%~' f^^;':-^~-, ~- '•• ,- >*'• '• • '-'••-,' , , ••>' V-^V.1- • . *HOM& . -.A..;.-;, "v^.^ny,-;;-;^,-,":..' ->^;-.->- «';4-v -:' "•'••-;•. -;-!'-x'"'' • '
Affordable Housing! 932,000
AMOUNT OF
AVAILABLE
FUNDING ($)
, '-•:•/ .'''-.; ,'^.';,,,'' ' •
66,000
523,600
88,000
677,600
' • '/':'J'J^?$&&:> \'::
232,000
CDBG FUNDS
The Committee is recommending that the estimated $66,000 in CDBG funds available for public
service activities be allocated to thirteen different organizations. Two organizations requesting public
service funds are recommended to receive $5,500 in funds and eleven organizations are
recommended to receive $5,000 in funds. The Committee is also recommending that $523,600 in
CDBG funds available in the Public Facility Improvements and Affordable Housing categories be
allocated to Southern California Housing Collaborative to assist them in purchasing an apartment
complex in Carlsbad. The apartments would provide affordable housing for low income households,
some of which would include persons with developmental disabilities. The Committee is also
recommending that $19,100 of funds available for administration be provided to the Center for Social
Advocacy to assist residents with fair housing services as required by HUD to receive CDBG funds.
The Committee is recommending that in the event the City's CDBG allocation is reduced by more
than the estimated twenty percent, the organizations recommended for $5,500 in funding be reduced
to $5,000, and the organizations recommended for $5,000 in funding be reduced a proportionate
amount. The funds recommended for Southern California Housing Collaborative to assist in the
purchase of an apartment complex would also be reduced a proportionate amount. Staff will prepare
an Annual Action Plan for the CDBG/HOME Program for City Council approval based on the City's
actual allocation amount after HUD's budget is approved in April or May of 2011.
HOME FUNDS
The Committee is recommending that the City Council allocate $232,000 in HOME funds to Solutions
for Change to acquire property that will be used as affordable rental housing for graduates of its
homeless prevention program. That amount will be reduced to the actual allocation to the City if it is
reduced by more than the twenty percent estimate. Solutions for Change provides housing, case
management and other services to homeless families with children to assist them in becoming more
productive members of the community. Solutions for Change is in the process of acquiring homes
that they rent to families who have successfully completed their transitional programs and are ready to
return to more traditional housing opportunities.
PAGES
The City Council has already allocated $525,000 in HOME funds to Solutions for Change during last
year's funding process. However, those funds have not been available for use because the allocation
was approved after the County approved their 2010-2011 Annual Funding Plan for the HOME
program. Solutions for Change is requesting the additional funds this year to enhance their ability to
acquire a multifamily complex. The Advisory Committee is also recommending that a condition be
placed on this allocation to require that the property be located in the City of Carlsbad.
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 2011-2012 CDBG/HOME Program
to meet those needs.
FISCAL IMPACT:
It is anticipated that approximately $677,600 will be available for allocation through the City's 2011-
2012 CDBG Program, and approximately $232,000 through the City's HOME Program. The City may
use up to twenty percent (20%) of the new CDBG allocation, or approximately $88,000, for
administration of the City's CDBG program. The Advisory Committee is recommending that $19,100
of those funds be used to contract with the Center for Social Advocacy to provide fair housing
services to Carlsbad residents, which is an administrative requirement by the federal government for
receiving funds through the CDBG Program. The remainder of the allocation ($68,900) available for
administration will be used to reimburse the City for staff and operational expenses related to CDBG
program administration. It is anticipated that the City will receive approximately $7,000 from the
County Consortium to reimburse the City for administrative expenses related to the HOME Program.
The CDBG/HOME Program has no impact on the General Fund.
ENVIRONMENTAL IMPACT:
City Council's action to accept public comments on the needs of low income persons and the
proposals submitted for funding under the City's 2011-2012 CDBG/HOME Program to meet those
needs is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA
Guidelines Section 15061(b)(3)"General Rule", as it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment, that the
acceptance of public comment would not authorize, permit, or guarantee the construction of any
project that would have a significant environmental effect nor commit the City to approve any such
project.
EXHIBITS:
1. 2011-2012 Consolidated Funding Plan Strategy.
2. Advisory Committee Funding Recommendations.
3
Exhibit 1
CITY OF CARLSBAD
CDBG/HOME PROGRAM
2011-2012 FUNDING PLAN
CITY OF CARLSBAD
2011-2012
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
2011-2012
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SUMMARY OF ESTIMATED FUNDS AVAILABLE FOR 2011-2012 PROGRAM YEAR
Source of Funds Amount($)
New Entitlement Grant 440,400
Program Income 102,800
Reallocation of Prior Year Funds 134.400
TOTAL 677,600
Funds Available by Activity Amount ($)
Public Service (Maximuml 5% of new grant.) 66,000
Affordable Housing 261,800
Public Facilities, Improvements/Other 261,800
Program Administration/Fair Housing (Maximum 20% of new grant) 88.000
Total Available Funds 677,600
3 of 5
2011-2012
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 Neighborhood Services 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
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 2011-2012 PROGRAM YEAR
2011-2012 HOME Funding Allocation for Carlsbad $232,000
5 of 5
B
2011-2012 CITY OF CARLSBAD CDBG/HOME PROGRAM
ADVISORY COMMITTEE FUNDING RECOMMENDATIONS
Exhibit 2
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
Boys and Girls Club
Teen Program
Brother Benno
Brother Benno Center
Cardiovascular Disease Foundation
Healthy Habits, Healthy Kids
Casa de Amparo/Food Program for
Neglected and Abused Children
Catholic Charities / La Posada de
Guadalupe Homeless Shelter
City of Carlsbad/Parks and Recreation
Opportunity Grants Program
Community Resource Center
Homeless Prevention and Intervention
Fraternity House
AIDS Caregiving Program
From the Inside Out
CROP, AWARE and CAMP Programs
Hospice of the North Coast
Hope Bereavement Center
Interfaith Community Services
Housing and General Assistance
Ivy Ranch Park Association
Equestrian Therapy Program
Meals on Wheels
Meal Delivery Service
North County Community Services
Food Bank
North County Health Services / Health
Screening and Immunizations
North County Lifeline
Youth Counseling Program
Women's Resource Center
Alternatives to Abuse Shelter
YMCA OZ
Youth Shelter
Solutions for Change
Property Acquistion
So. Cal. Housing Collaborative
Property Acquisition
Center for Social Advocacy
Fair Housing Program
TYPE OF
PROJiCT
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 Services
Public Services
Housing
Housing
Administration
REQUESTED
AMOUNT
$9,500
$10,000
$5,000
$10,000
$10,000
$8,500
$10,000
$7,825
$15,000
$6,000
$19,165
$10,000
$7,000
$8,089
$22,992
$37,360
$15,000
$5,000
$345,000
$587,000
$20,100
RECOMMENDED
FUNDING
$5,000
CDBG Funds
$5,000
CDBG Funds
$5,000
CDBG Funds
$5,500
CDBG Funds
$5,000
CDBG Funds
$5,000
CDBG Funds
$5,000
CDBG Funds
$5,000
CDBG Funds
$5,000
CDBG Funds
$5,000
CDBG Funds
$5,000
CDBG Funds
$5,500
CDBG Funds
$5,000
CDBG Funds
$232,000
HOME Funds
$523,600
CDBG Funds
$19,100
CDBG Funds
Lisa Hildabrand
All Receive-Agenda Item #_
Subject:FW: Agenda item #12 ITY COUNCIL .
Distribution:
:ity Clerk
Asst. City Clerk
)eputy Clerk
From: Frank Boensch
Sent: Tuesday, April 05, 2011 9:27 AM
To: Lisa Hildabrand
Cc: Debbie Fountain; John Coates
Subject: RE: Agenda item # 12
Hi Lisa,
Thanks for the opportunity to clarify the situation with HOME funding allocations. The $525,000 in HOME Funds City
Council allocated to Solutions for Change last year have not yet been available for use due to the timing of the County's
approval of their Annual Funding Plan last year. (The City's plans for use of our HOME funds must be included in the
County Annual Funding Plan because we are a member of the County HOME Consortium.) The $525,000 allocation will
be "rolled over" into the coming year's County Annual Funding Plan. I have coordinated with County staff this year to
ensure that any additional allocation made this year for Solutions for Change can be added to the previous $525,000
allocation so that they can both used in the coming year.
If needed, the City can request that the allocations to Solutions for Change be "rolled over" again next year if they are
unable to spend the funds by the end of the coming program year. The County generally will approve such requests as
long as the Consortium as a whole is in compliance with HDD's expenditure requirements. If the Consortium is in danger
of not meeting the expenditure requirements, the County would likely request that the City reallocate the Solutions for
Change funds to another project that could spend those funds in a more expedient manner. However, Solutions for
Change is planning to use the funds for acquisition of property, which is one of the fastest ways to spend funds, so I do
not anticipate that this will be a problem.
You also had the following questions:
• What will happen if we don't lose 20% of the grant funds? Will we increase the funds or will we save the funds
for the next year applications?
The Advisory Committee is recommending that if additional funds are available, that they be shared between
the two highest ranked applicants in the three public service categories. The affordable housing applicants
would also receive a proportionate share of the increase based on actual funding amounts. I included these
details in the resolution/exhibit that has been drafted for actual approval of funding amounts, but I'm hoping
that we will know actual amounts before the meeting is held on April 26 to allocate the funds. At the meeting
tonight, a decision is not yet required on the funding amounts. This is the public hearing to accept comments
only. This will provide some additional time for the federal government to take action on their budget and
provide us with more specifics on the actual funding amount to be made available.
• For CDBG funds, how long do the recipients have to use up the funds and can for how many years the funds can
be carried forward?
CDBG funding agreements require expenditure within one year unless the organization receives an extension.
They are generally not extended for over one year. There is no set limit for a maximum number of years.
Eventually, staff would recommend reallocation of funds if an organization is unable to spend the funds after
i
o ne year unless there are extenuating circumstances, or if the City has not met its required expenditure cap and
is under a federal directive to reallocate funding to other projects that are ready to proceed.
• How and for what purpose the $5000 that was awarded to the City of Carlsbad Parks and Recreation will be
used?
The funds are to be used for the City's Opportunity Grants Program, which provides scholarships for youth from
lower income households to participate in Parks and Recreation programs.
• Where is YMCA Oz located?
YMCA Oz North Coast is located at 215 Barnes Street in Oceanside.
Please let me know if you have any further questions regarding the CDBG/HOME program.
Thanks,
Frank
CARLSBAD
Frank Boensch
Sr. Management Analyst
Housing & Neigborhood Services
City of Carlsbad
2965 Roosevelt Street, Suite B
Carlsbad, CA 92008
www.carlsbadca.gov
P: 760-434-2818
F: 760-720-2037
frank.boensch@carlsbadca.gov
CDBG/HOME PROGRAM
2011-2012
Program Year
CDBG/HOME Program
•Community Development Block Grant
–To help serve the needs of lower income persons
–To assist in the development of viable
communities
•Home Investment Partnership
–To provide affordable housing opportunities for
lower income persons
CDBG/HOME Public Hearing
•Receive comments on the needs of lower
income residents.
•Opportunity to comment on proposals for
2011-12 program year.
CDBG/HOME FUNDS
Activities
Requested
Funding
Total Funds
Available
CDBG
Public Services 216,431 66,000
Public Facility Improvements
and Affordable Housing
932,000 523,600
Administration and Fair Housing 88,000 88,000
Total 1,236,431 677,600
HOME
Affordable Housing 932,000 232,000
Advisory Committee
Planning Commissioner Julie Nygaard
Housing Commissioner Bobbie Smith
Senior Commissioner Joan Surridge
Northwest Quadrant Dawn Sheals
Northeast Quadrant Brian Butchco
Southwest Quadrant De’Ann Weimer
Southeast Quadrant Joan Kindle
Requested Actions
•Accept public comments on the needs of
lower income residents and CDBG/HOME
Program proposals.
•Express Council’s intent to approve final
funding allocations at a future meeting.
CDBG/HOME PROGRAM
2011-2012
Program Year