HomeMy WebLinkAbout2011-11-08; City Council; 20739; 2012-13 DEVELOPMENT BLOCK GRANT HOME INVESTMENTCITY OF CARLSBAD - AGENDA BILL
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MTG.
DEPT.
20,739
11/8/11
HNS
2012-2013 COMMUNITY
DEVELOPMENT BLOCK GRANT AND
HOME INVESTMENT PARTNERSHIP
PROGRAM
DEPT. HEAD^CHP^
CITY ATTY. /&/
CITY MGR. \jj^
RECOMMENDED ACTION:
Adopt Resolution No. 2011-268 approving the 2012-2013 Community Development Block
Grant (CDBG) and Home Investment Partnership (HOME) Program Funding Plan and authorizing the
distribution of a "Request for Proposals" for the 2012-2013 CDBG/HOME Program.
ITEM EXPLANATION:
In fiscal year 2012-2013, the City of Carlsbad may 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 may also be eligible to receive federal HOME funds.
CDBG Program
The total amount of CDBG funds available to the City for the 2012-2013 program year is unknown at
this stage in the federal budgeting process. However, it is anticipated that the City may receive less
than the $461,489 allocation it received for the 2011-2012 program year. In addition to the new
allocation for the 2012-2013 program year, the City may receive approximately $131,000 in program
income from the Villa Loma Apartments available for allocation to new projects. Of the estimated total
of $592,489 in CDBG funding, approximately $92,000 will be used for the City's administration of the
program and $70,000 will be available for public service activities. It is estimated that approximately
$215,000 will be available for affordable housing, and $215,000 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 of the national objectives for the CDBG Program and at least
one of the local housing and community development objectives. These national and local objectives
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 funds available for allocation to eligible projects is
anticipated to be less than the 2011-2012 allocation of $255,000.
DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, frank.boensch@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
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Application Review Process
No changes are proposed to the application review process as approved by the City Council for use
during previous program years.
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 last year to serve two-year terms on the Advisory Committee:
Julie Nygaard, Planning Commisson
Dawn Sheals, Northwest Quadrant
Joan Kindle, Southeast Quadrant
De'Ann Weimer, Southwest Quadrant
Staff requests that the Mayor appoint Advisory Committee Members to represent the following
quadrants and commissions at a future meeting:
Senior Commission
Housing Commission
Northeast Quadrant
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code Section 21065, approval of a funding plan and request for
proposal, does not constitute a "project" within the meaning of CEQA in that it has no potential to
cause either a direct physical change in the environment, or a reasonably foreseeable indirect
physical change in the environment, and therefore does not require environmental review.
FISCAL IMPACT:
It is anticipated that the City will receive up to $461,489 in new CDBG entitlement funds and up to
$255,000 in new HOME funds during fiscal year 2012-2013. Federal regulations allow the City to use
a maximum of 20 percent of the new allocation for administration costs. The City's Cooperative
agreement with The San Diego County HOME Consortium allows the City to recover approximately
$6,000 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. 2011-268 approving the 2012-2013 CDBG/HOME Funding Plan
and authorizing the distribution of a "Request for Proposals" for the 2012-2013 CDBG/HOME
Program.
2. 2012-2013 CDBG/HOME Funding Plan.
3. "Request for Proposals" for Carlsbad's 2012-2013 CDBG/HOME Program.
CITY COUNCIL RESOLUTION NO. 2011-268
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA APPROVING THE 2012-2013 CDBG/HOME PROGRAM
FUNDING PLAN AND AUTHORIZING THE DISTRIBUTION OF A REQUEST
FOR PROPOSALS FOR THE 2012-2013 CDBG/HOME PROGRAM.
5 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
6 Development (HUD) for fiscal year 2012-2013; and,
7 WHEREAS, the City of Carlsbad, California is entitled to an allocation of HOME
Investment Partnership (HOME) funds for the fiscal year 2012-2013 as a member of the San
8 Diego County HOME Consortium; and,
9 WHEREAS, the City Council of the City of Carlsbad held a public hearing to obtain
comments on the 2012-2013 CDBG/HOME Funding Plan and to consider approving the
10 distribution of a "Request for Proposals" for the 2012-2013 CDBG/HOME Program; and,
11 WHEREAS, the City Council has taken all testimony into account.
12 NOW, THEREFORE BE IT HEREBY RESOLVED as follows:
13 i. That the above recitations are true and correct.
14 2. That the City Council approves the 2012-2013 CDBG/HOME Funding Plan, required
by federal regulations, for Carlsbad's CDBG/HOME Program.
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3. That staff of the Housing and Neighborhood Services Department is authorized to
16 distribute a "Request for Proposals" for the City of Carlsbad's 2012-2013
CDBG/HOME Program.
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1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
2 of the City of Carlsbad on 8th day of November 2011, by the following vote to wit:
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AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
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5 NOES: None.
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7 ABSENT: None.
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11 MATT HALL, Mayor
12 ATTEST:
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LORRAINE M. WOOD, City Clerk
16 (SEAL)
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Exhibit 2
CITY OF CARLSBAD
CDBG/HOME PROGRAM
2012-2013 FUNDING PLAN
CITY OF CARLSBAD
2012-2013
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.
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CITY OF CARLSBAD
2012-2013
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SUMMARY OF ESTIMATED FUNDS AVAILABLE FOR 2012-2013 PROGRAM YEAR
Source of Funds Amount($)
New Entitlement Grant 461,000
Program Income 131,000
Reallocation of Prior Year Funds 1,250
TOTAL 593,250
Funds Available by Activity Amount ($)
Public Service (Maximum 15% of new grant.) 92,000
Affordable Housing 215,625
Public Facilities, Improvements/Other 215,625
Program Administration/Fair Housing (Maximum 20% of new grant) 70,000
Total Available Funds 593,250
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2012-2013
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.
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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 2012-2013 PROGRAM YEAR
2012-2013 HOME Funding Allocation for Carlsbad $255,000
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EXHIBIT 3
CITY OF CARLSBAD
2012-2013
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 2012-2013 is approximately $593,250. This figure
includes an estimated $461,000 in new CDBG entitlement allocation, $131,000 available from
program income, and $1,250 available for reallocation from prior year activities.
Of the $593,250 total CDBG funds available, approximately $92,000 will be used for the City's
administration of the CDBG Program and $70,000 will be available for eligible public service
activities. Approximately $215,625 will be available for public facilities, improvements and other
eligible activities. Approximately $215,625 in CDBG funds will be available for selected projects
that will provide affordable housing opportunities in Carlsbad. Approximately $255,000 will be
available from the City's allocation of 2012-2013 HOME funds to assist in providing affordable
housing opportunities for lower income households. Additional HOME funds from prior program
years may be available for reallocation from other programs if a suitable proposal requires more
than the estimated $255,000 available in 2012-2013 program funding.
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The combination of 2012-2013 CDBG and HOME funds being made available for
affordable housing totals approximately $470.000. Specifically, the $470.000 will be
targeted for use in acquisition of property for affordable housing purposes.
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, 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.
To develop a 2012-2013 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 Neighborhood Services Department. Interested persons
may request a Funding Proposal Application by calling (760) 434-2818, or by sending a request
via internet email to frank.boensch@carlsbadca.gov.
Organizations that have not received CDBG/HOME funds from the City of Carlsbad within
the last three years must attend an orientation meeting on December 1, 2011 at 3:00 PM.
Applications for funding will not be accepted from organizations that have not received
CDBG/HOME funds from the City within the last three years if they do not have a
representative attend the orientation meeting.
Ten copies of each project proposal must be submitted to the attention of Frank Boensch
prior to 5:00 p.m. on December 12, 2011 at the following address:
CITY OF CARLSBAD
HOUSING AND NEIGHBORHOOD SERVICES DEPARTMENT
2965 ROOSEVELT STREET, SUITE B
CARLSBAD, CA 92013
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.
2012‐2013CDBG/HOME ProgramCommunity Development Block Grant (CDBG)Home Investment Partnership Program (HOME)
CDBG/HOME ProgramI.BackgroundII.Funding AvailabilityIII.Application Review and Funding ProcessIV.Recommendations
CDBG/HOME Program•CDBG–Serves the needs of lower income persons–Helps develop viable communities•HOME–Improve affordable housing opportunities for lower income persons
CDBG National Objectives•Provide benefits to lower income persons•Prevent or eliminate blight•Meet urgent needs if no other funds available
Local Objective Categories•Affordable Housing•General Services•Specialized Services
Home Eligible Projects•Property Acquisition•Housing Rehabilitation•New Construction•Homebuyer Assistance
II. Funding AvailabilityActivities 2012-2013 FundingPublic Service (15%) 70,000Program Administration (20%) 92,000Facilities, Improvements and Other Eligible Activities 215,245Affordable Housing 215,245Subtotal 592,490Housing Programs/Projects 250,000TOTAL 842,490CDBGHOME
III. Application and Review Process•Notices published and mailed•Applications available online and from Housing & Neighborhood Services Dept.•Deadline for submission on December 12th
Advisory Committee•Planning Commissioner•Housing Commissioner•Senior Commissioner•Southeast Quadrant•Southwest Quadrant•Northeast Quadrant•Northwest Quadrant
Application Review Process•Applications reviewed for eligibility•Eligible applications evaluated and scored•Applicants interviewed•Committee develops recommendations•Public hearing on proposals
IV. Requested Actions•Accept Public Comments•Approve Funding Plan•Authorize Distribution of Request for Proposals
2012‐2013 CDBG/HOME Program