HomeMy WebLinkAbout2012-06-05; City Council; 20923; Amendment 2011-2012 Community Development Grant Program Action PlanCITY OF CARLSBAD - AGENDA BILL
DEPT. DIRECTOR '(^
CITY ATTY.
CITY MGR.
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DEPT.
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6/6/12
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AMENDMENT TO 2011-2012
COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM ACTION PLAN
RECOMMENDED ACTION:
Adopt City Council Resolution No. 2012-125 authorizing the submittal of an
amendment to the City's 2011-2012 Community Development Block Grant (CDBG) Program
Action Plan and authorizing the City Manager to enter into agreements related to projects
funded through the amended Action Plan.
ITEM EXPLANATION:
The U.S. Department of Housing and Urban Development (HUD) requires the preparation of
an annual CDBG Program Action Plan to describe how those federal funds will be used. Any
substantial change to the plan requires that an Amended Action Plan be submitted to HUD
after completion of a public hearing and review process. The City must amend its 2011-2012
Action Plan to allow for two proposed changes to the plan.
One amendment proposed for the Action Plan is the reallocation of $333,906 previously
intended to assist in the acquisition of property for an affordable housing project in
partnership with a private developer. Funding for that project is no longer needed because
the owner of the property identified for acquisition has decided not to sell. No other available
property appropriate for affordable housing has been identified for acquisition. Staff is
recommending that the funds be reallocated for use in preconstruction activities related to the
building of a pedestrian railway crossing at Chestnut Avenue. Staff is in preliminary
discussions with North County Transit District and Public Utilities Commission
representatives regarding this potential project.
The second proposed amendment regards the allocation of up to $538,400 to Southern
California Housing Collaborative (SCHC) to purchase property in Carlsbad for affordable
housing to accommodate persons with developmental disabilities. SCHC has not been able
to find a property in Carlsbad that would be suitable for their specific needs that would be
cost effective for affordable housing due to high property values in Carlsbad. City staff
suggested that they may wish to partner with an experienced affordable housing developer
on a larger project to benefit from the efficiencies of scale that could be gained. As a result,
SCHC is requesting that the City Council approve the assignment of their $538,400 allocation
of funds to Community HousingWorks for a proposed affordable housing project in Vista.
DEPARTMENT CONTACT: Frank Boensch 760-434-2818 frank.boensch@carlsbadca.qov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED X
DENIED •
WITHDRAWN •
AMENDED •
CONTINUED TO DATE SPECIFIC •
CONTINUED TO DATE UNKNOWN •
RETURNED TO STAFF •
COUNCIL RECEIVED THE •
REPORT/PRESENTATION
OTHER - SEE MINUTES •
Page 2
Community HousingWorks has formed a partnership with North County Lifeline to develop a
project that would be located just north of Vista Village Drive and east of North Santa Fe
Avenue. If the City Council agrees to reallocate the SCHC funds to the Community
HousingWorks project, the number of units set-aside for developmentally disabled persons
will be in proportion to the ratio of those funds to the total amount of funds needed for gap
financing. Community HousingWorks has agreed that at least four apartments will be set-
aside for developmentally disabled persons.
RECOMMENDATION:
Although staff prefers that affordable housing funds be used in the City of Carlsbad, there are
frequently problems encountered when attempting to identify available properties that are
suitable for development of affordable housing. The high cost of land in the City is often one
of these problems. High property values frequently make it infeasible to develop affordable
housing because of the need for extremely high subsidies that are undesirable due to the
limited amount of funding available for this purpose.
In time, staff and SCHC may be able to find available property suitable for affordable housing.
However, because of expenditure requirements tied to the CDBG funding, time constraints
made it necessary for SCHC to expand their search into surrounding cities to see if more cost
effective partnership opportunities could be found outside of Carlsbad. Staff recommends
that SCHC be allowed to assign their funding allocation to Community HousingWorks for the
Vista project and that the other available funds previously allocated for affordable housing be
reallocated for preconstruction activities related to the proposed pedestrian railway crossing
at Chestnut Avenue.
FISCAL IMPACT:
The City of Carlsbad has received CDBG allocations to adequately fund the two projects
described above. Use of these funds needs to be expedited to ensure that the City can meet
federal expenditure requirements in 2013. Noncompliance with those requirements may
result in the loss of future federal funds. The CDBG Program has no impact on the General
Fund.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code Section 21065, approval of the submittal of an
amendment to the 2011-2012 Action Plan, 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.
EXHIBITS:
1. Resolution No. 2012-125 approving the submittal of the 2011-2012 Amended Action
Plan to the U.S. Department of Housing and Urban Development.
2. List of recommended funding reallocations.
3. Location map of proposed Community HousingWorks development.
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RESOLUTION NO. 2012-125
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE SUBMITTAL OF AN AMENDMENT TO
THE 2011-2012 ACTION PLAN FOR THE CITY'S COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM TO THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
WHEREAS, the City must prepare an amendment to the 2011-2012 Action Plan
to add new projects to be undertaken that were not included as part of the original
Action Plan; and,
WHEREAS, the City Council has taken all testimony into account.
NOW, THEREFORE BE IT HEREBY RESOLVED as follows:
1. That the above recitations are true and correct.
2. That the City Council approves the submittal of an amendment to the 2011-
2012 Action Plan for the Community Development Block Grant Program to the
j3 U.S. Department of Housing and Urban Development which revises projects
in the Action Plan at funding levels as indicated in attached Exhibit 2.
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3. That the City Manager is authorized to execute funding agreements with
15 organizations for approved funding amounts as listed in the attached Exhibit
2, subject to review as to form by the City Attorney, and the Finance Director
16 is authorized to appropriate and disburse said funds to the subject projects
upon final approval by the U.S. Department of Housing and Urban
17 Development and subject to the noted funding agreements.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 5^^ day of June, 2012, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Kulchin, Blackburn, Douglas and Packard.
None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
, AssSsjjant City Clerk
''''^//,m.o^^''' (SEAL)
Exhibit 2
RECOMMENDED REALLOCATION OF FUNDS BY AMENDMENT TO
2011-2012 CITY OF CARLSBAD ACTION PLAN
AGENCY/PROJECT CURRENT
FUNDING
RECOMMENDED
FUNDING
Southern California Housing
Collaborative/Pacific Collaborative
Affordable Housing)
$538,400 0
City of Carlsbad/Acquisition of Property
for Affordable Housing
$333,906 0
Community
HousingWorks/Predevelopment
Activities or Acquisition of Property for
Affordable Housing
0 $538,400
City of Carlsbad/Preconstruction
Activities Related to Pedestrian Railway
Crossing
0 $333,906
5
Exhibit 3 AV Proposed Vista Location for
Community HousingWorks Development
CITY OF CARLSBAD
PUBLIC HEARING AND NOTICE OF PUBLIC REVIEW PERIOD FOR
AMENDMENT TO 2011-2012 COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM ACTION PLAN
THE PUBLIC IS HEREBY NOTIFIED THAT the City of Carlsbad has prepared an amendment
to its 2011-2012 Community Development Block Grant (CDBG) Action Plan to allow for the
expenditure of program income as required by the U. S. Department of Housing and Urban
Development (HUD). The Carlsbad City Council will be holding a public hearing to obtain
comments on the proposed amendment on Tuesday, June 5, 2012.
The City of Carlsbad is eligible to receive funding through the federal CDBG Program to finance
projects which serve the needs of lower income persons. The funds are to be used to develop
viable urban communities through the provision of decent housing and a suitable living
environment and by expanding economic opportunities for lower income persons. The total
amount of CDBG program income available for reallocation by the City is $827,306.
As identified in the Annual Plan, the general policy of the City of Carlsbad is to assist very low
and low-income groups as a first priority through the use of available Federal, State, and local
resources. In addition to affordable housing strategies, the City has established other local
objectives within the Annual Plan, as the strategies the City will pursue in the upcoming year to
meet the community development needs of low and moderate income Carlsbad residents.
The City is committed to contributing at least 70% of the total CDBG funds received from HUD
each year to assist low/moderate income persons throughout Carlsbad. It is also the intent of
the City that no CDBG assisted project will result in the displacement of low/moderate income
persons from their homes. However, if low/moderate income persons are displaced as a result
of a CDBG funded project, the City will provide relocation assistance as required by Section
570.606(b)(2) of the federal regulations for the CDBG Program.
Residents of Carlsbad are hereby notified that the City of Carlsbad's draft amendment to its
2011 Annual Plan will be available for public review and comment from May 28, 2012 to June
26, 2012. Copies of the document are available for review at the Carlsbad City Libraries (1250
Carlsbad Village Drive and 1775 Dove Lane), City Clerk's Office (1200 Carlsbad Village Drive),
and the Housing and Neighborhood Services Department (2965 Roosevelt Street, Suite B).
Written or verbal comments will be accepted until 5:00 pm on June 26, 2012 at the Housing
and Neighborhood Services Department. Comments must be submitted to the attention of
CDBG Coordinator, City of Carlsbad, Housing and Neighborhood Services Department, 2965
Roosevelt, Suite B, Carlsbad, CA 92008. Questions or Comments Call (760) 434-2818.
LEGAL ADVERTISING
Printed on 05/29/2012 at 08:41 by 11
(760) 434-2917 Acct# 16158
CITY OF CARLSBAD
12 00 CARLSBAD VILLAGE DR.
CITY CLERK
CARLSBAD, CA 92 008
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237.36
CITY OF CARLSBAD PUBLIC HEARING AND NOTICE OF PUBLIC REVIEW PERIOD FOR AMENDMENT TO 2011-2012 COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM ACTION PLAN
THE PUBLIC IS HEREBY NOTIFIED THAT the City of Carlsbad has prepared
an amendment to its 2011-2012 Community Development Block Grant (CDBG) Action Plan to allow for the expenditure of program income as required by the
U. S Department of Housing and Urban Development (HUD). The Carlsbad
City Council will be holding a public hearing to obtain comments on the pro-
posed amendment on Tuesday, June 5, 2012.
The City of Carisbad is eligible to receive funding through the federal CDBG
Program to finance projects which serve the needs of lower income persons
The funds are to be used to develop viable urban communities through the
provision of decent housing and a suitable living environment and by expand-
ing economic opportunities for lower income persons. The total amount of
CDBG program income available for reallocation by the City is $827,306.
As identified in the Annual Plan, the general policy of the City of Carlsbad is to
assist very low and low-income groups as a first priority through the use of
available Federal, State, and local resources. In addition to affordable housing
strategies, the City has established other local objectives within the Annual
Plan, as the strategies the City will pursue in the upcoming year to meet the
community development needs of low and moderate income Carisbad
residents.
The City is committed to contributing at least 70% of the total CDBG funds
received from HUD each year to assist low/moderate income persons through-
out Carisbad. It is also the intent of the City that no CDBG assisted project will
result in the displacement of low/moderate income persons from their homes.
However, if low/moderate income persons are displaced as a result of a CDBG
funded project, the City will provide relocation assistance as required by Sec-
tion 570.606(b)(2) of the federal regulations for the CDBG Program.
Residents of Carisbad are hereby notified that the City of Carisbad's draft amendment to its 2011 Annual Plan will be available for public review and
comment from May 28, 2012 to June 26, 2012. Copies of the document are
available for review at the Carisbad City Libraries (1250 Carlsbad Village Drive
and 1775 Dove Lane), City Cleric's Office (1200 Carisbad Village Drive), and
the Housing and Neighborhood Services Department (2965 Roosevelt Sti-eet
Suite B).
Written or verbal comments will be accepted until 5:00 pm on June 26, 2012
at the Housing and Neighborhood Services Department. Comments must be submitted to the attention of CDBG Coordinator, City of Carisbad, Housing and Neighborhood Services Department, 2965 Roosevelt. Suite B, Carisbad CA
92008. Questions or Comments Call 760-434-2818
net 2316077 06/02/2012
Amendment to 2011‐2012 Community Development Block Grant (CDBG) Annual Action Plan
Amendment to 2011‐2012 Community Development Block Grant (CDBG) Annual Action Plan•Annual Action Plans are required to describe how CDBG funds will be used to benefit lower income households.•Substantial changes to the Plan must go through public hearing and review process prior to submittal to U.S. Department of Housing and Urban Development (HUD)
Amendment to Annual Action Plan•Funds previously allocated for acquisition of property for affordable housing are not needed because the property is no longer for sale.•City Transportation Department requests use of those funds for potential development of pedestrian railway crossing at Chestnut Avenue.
Amendment to Annual Action Plan•Preliminary discussions are underway between Transportation Department and North County Transit District staff regarding a possible crossing.•Up to $333,900 in CDBG funds could be used for preconstruction activities such as engineering studies and design work.
Amendment to Annual Action Plan•Proposed change to allow use of $538,000 on affordable housing in City of Visa to include individuals with developmental disabilities.•Partnership with established nonprofit developer includes agreement to set aside at least 4 units to serve a regional housing need.
Recommendations•Allow funds to be used in the City of Vista to serve regional needs and to meet expenditure requirements.•Accept public comments•Approve resolution authorizing the submittal of Annual Plan amendment and execution of documents related to reallocation of funds.
Amendment to 2011‐2012 Community Development Block Grant (CDBG) Annual Action Plan