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HomeMy WebLinkAbout2012-11-06; City Council; 21040; 2013-2014 CDBG Home Investment ProgramCITY OF CARLSBAD - AGENDA BILL 10 AB# 21,040 2013-2014 COMMUNITY DEPT. HEAD/ MTG. 11/B/12 DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP PROGRAM CITY ATTY. ^ DEPT. HNS DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP PROGRAM CITY MGR. RECOMMENDED ACTION: Adopt Resolution No. 2012-242 approving the 2013-2014 Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) Program Funding Plan and authorizing the distribution of a "Request for Proposals" for the 2013-2014 CDBG/HOME Program. ITEM EXPLANATION: In fiscal year 2013-2014, 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 2013-2014 program year is unknown at this stage in the federal budgeting process. However, it is anticipated that the City may receive less than the $405,550 allocation it received for the 2012-2013 program year. In addition to the new allocation forthe 2013-2014 program year, the City received approximately $3,850 in program income from Cassia Heights Apartments and will have approximately $35,000 in prior year funds available for allocation to new projects. Of the estimated total of $444,400 in CDBG funding, approximately $81,880 will be used for the City's administration of the program and $61,410 will be available for public service activities. It is estimated that approximately $150,555 will be available for affordable housing, and $150,555 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 2012-2013 allocation of $146,106. DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, frank.boensch@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED • CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN • • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • PAGE 2 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; Emelda Bradwell, Housing Commission Shaunee Williams, Northeast Quadrant Staff requests that the Mayor appoint Advisory Committee Members to represent the following quadrants and commissions at a future meeting: Planning Commission Senior Commission Northwest Quadrant Southeast Quadrant Southwest 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 approximately $405,000 in new CDBG entitlement funds and up to $146,000 in new HOME funds during fiscal year 2013-2014. 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 ofthe federal funds. There is no fiscal impact on the General Fund. EXHIBITS: 1. Resolution No. 2012-242 approving the 2013-2014 CDBG/HOME Funding Plan and authorizing the distribution of a "Request for Proposals" for the 2013-2014 CDBG/HOME Program. 2. 2013-2014 CDBG/HOME Funding Plan. 3. "Request for Proposals" for Carlsbad's 2013-2014 CDBG/HOME Program. 3k CITY COUNCIL RESOLUTION NO. 2012-242 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING THE 2013-2014 CDBG/HOME PROGRAM FUNDING PLAN AND AUTHORIZING THE DISTRIBUTION OF A REQUEST FOR PROPOSALS FOR THE 2013-2014 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 2013-2014; and, 7 WHEREAS, the City of Carlsbad, California is entitled to an allocation of HOME Investment Partnership (HOME) funds for the fiscal year 2013-2014 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 2013-2014 CDBG/HOME Funding Plan and to consider approving the 10 distribution of a "Request for Proposals" for the 2013-2014 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 1. That the above recitations are true and correct. 14 2. That the City Council approves the 2013-2014 CDBG/HOME Funding Plan, required by federal regulations, for Carlsbad's CDBG/HOME Program. 15 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 2013-2014 CDBG/HOME Program. 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 6th day of November, 2012, by the following vote to wit: AYES: NOES: Council Members Hall, Kulchin, Blackburn, Douglas and Packard. None. ABSENT: None. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 MATT HALLf, Mayor ATTEST: (SEAL) tant City Clerk Exhibit 2 CITY OF CARLSBAD CDBG/HOME PROGRAM 2013-2014 FUNDING PLAN CITY OF CARLSBAD 2013-2014 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. 4. CITY PROJECTS SERVING LOWER INCOME HOUSEHOLDS: • Provide assistance to City projects which are intended to benefit lower income households. Such projects must be able to demonstrate that they will serve areas of the City that meet HUD requirements regarding household incomes for that area. 2 of 5 CITY OF CARLSBAD 2013-2014 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY OF ESTIMATED FUNDS AVAILABLE FOR 2013-2014 PROGRAM YEAR Source of Funds New Entitlement Grant Program Income Reallocation of Prior Year Funds Amount($) 405,550 3,850 35,000 TOTAL 444,400 Funds Available bv Activity Public Service (Maximum 15% of new grant.) Affordable Housing Public Facilities, Improvements/Other Program Administration/Fair Housing (Maximum 20% of new grant) Total Available Funds Amount ($) 61,410 150,555 150,555 81.880 444,400 3 of 5 7 2013-2014 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. Propertv Acguisition/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 Acguisition/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 2013-2014 PROGRAM YEAR 2013-2014 HOME Funding Allocation for Carlsbad $146,000 5 of 5 EXHIBIT 3 CITY OF CARLSBAD 2013-2014 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 ofthe 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% ofthe 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 2013-2014 is approximately $444,400. This figure includes an estimated $405,550 in new CDBG entitlement allocation, $3,880 available from program income, and $35,000 available for reallocation from prior year activities. Of the $444,400 total CDBG funds available, approximately $81,880 will be used for the City's administration of the CDBG Program and $61,410 will be available for eligible public service activities. Approximately $150,555 will be available for public facilities, improvements and other eligible activities. Approximately $150,555 in CDBG funds will be available for selected projects that will provide affordable housing opportunities in Carlsbad. Approximately $146,000 will be available from the City's allocation of 2013-2014 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 $146,000 available in 2013-2014 program funding. 10 The combination of 2013-2014 CDBG and HOME funds being made available for affordable housing totals approximatelv $296.000. Specificallv. the $296.000 will be targeted for use in acquisition of propertv for affordable housing purposes. Organizations are stronglv discouraged from applying for funds unless thev are readv to implement the activitv proposed for funding. A matching funds reguirement will be applied to CDBG funded public facilities/improvement activities, and documentation showing use of matching funds will be reguired prior to distribution of CDBG funds for activities under that category. CDBG funding for amounts of $100,000 or more mav 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 2013-2014 CDBG/HOME program which meets the needs of the lower income population, Carlsbad requests assistance from members ofthe community. Citizen participation is critical to the success ofthe 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 sen/ices, 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 Reguest 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 10, 2012 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 18, 2012 at the following address: CITY OF CARLSBAD HOUSING AND NEIGHBORHOOD SERVICES DEPARTMENT 1200 CARLSBAD VILLAGE DRIVE CARLSBAD, CA 92008 1^ 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. /3 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: November 02"^ 2012 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Escondido, California On This O^i^'^'TtJav.November 2012 Jane Allshouse NORTH COUNTY TIMES Legal Advertising Proof of Publication of CITY OF CARLSBAD COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP\(HOME) PROGRAM PUBLIC HEARING AND REQUEST FOR PROPOSALS The City of Carlsbad is eligible to receive funding, on an annual basis from the federal Community Development Block Grant (CDBG) Program to finance proiects, which serve the needs of lower income persons. The funds are to be used to develop via-ble urban communities through the provision of decent housing and a suitable living environment and by expanding economic opportunities for lower income persons. The City will also re-ceive funding under the HOME Investment Partnership (HOME) Program, as a participant in the San Diego County HOME Consortium. The funds will be used to increase the sup- ply of decent affordable housing to lower income persons. The total amount of CDBG funds available to the City for the 2013-2014 program year is unknown at this stage in the federal budgeting process. However, it is anticipated that the City may receive less than the $405,550 allocation it received for the 2012- 2013 program year. In addition, the City may receive approxi- mately $3,850 in program income and $35,000 in prior year funds that might be available for allocation to new proiects. Of the es- timated total of $444,400 in CDBG funding, approximately $81,880 will be used for the City's administration of the program and approximately $61,410 will be available for public service activities. It is estimated that approximately $150,555 wMI be available for affordable housing, and $150,555 will be available for facility improvements or other eligible proiects. The total amount of new HOME funds available for allocation to eligible proiects is anticipated to be less than $146,000. To develop a CDBG/HOME Program that meets the needs of the lower income population, the City of Carlsbad requests assis- tance from members of the community. Citizen participation is critical to the success of the Program. A public hearing will be held on Tuesday, November 6, 2012 to obtain comments on the draft 2013-2014 CDBG/HOME Funding Plan. The City en- courages all community organizations to consider the needs of lower income persons within Carlsbad and to submit a proposed proiect, or proiects, for consideration by the City Council at a fu-ture public hearing. 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. Docu- mentation showing use of those matching funds would be re-quired prior to distribution of CDBG funds for activities under that category. CDBG funding for amounts of $100,000 or more will be made in the form of a deferred, no interest loan, to be forgiven in twenty years if the facility remains in use for pur-poses as stated in the application. The City of Carlsbad is committed to using CDBG/HOME funds to finance proiects/services that provide direct benefit to lower, income residents. It is also the City's intent to approve CDBG/HOME projects that do not result in the displacement of lower income persons from their homes. Therefore, all persons submitting proiect proposals to the City should consider the dis- placement impact upon lower income households. If the City does approve a proiect that results in displacement of lower in- come households, the City will provide relocation assistance as required in Section 570.606(b)(2) of the federal regulations for the CDBG program. All organizations wishing to submit a proiect for funding consid-eration under the CDBG/HOME program must obtain an appli- cation package from the City of Carlsbad's Housing and Neigli-borhood Services Department. Interested persons may call (760) 434-2818 to obtain an application. All proiect proposals must be submitted to: CDBG Administrator, Housing & Neigh- borhood Services Department, 1200 Carlsbad Village Drive, Carlsbad, CA 92008 prior to 5:00 p.m. on December 18, 2012.. Persons who have questions or comments regarding the City of Carlsbad's CDBG/HOME Program may contact the CDBG Ad- ministrator at (760) 434-2818, Monday through Friday betwee R-nnnm nnri'5-OOD.m. nct 2324668 11/02/2012 CITY OF CARLSBAD COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM PUBLIC HEARING AND REQUEST FOR PROPOSALS The City of Carlsbad is eligible to receive funding, on an annual basis from the federal Community Development Block Grant (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 City will also receive funding under the HOME Investment Partnership (HOME) Program, as a participant in the San Diego County HOME Consortium. The funds will be used to Increase the supply of decent affordable housing to lower income persons. The total amount of CDBG funds available to the City for the 2013-2014 program year is unknown at this stage In the federal budgeting process. However, It is anticipated that the City may receive less than the $405,550 allocation It received for the 2012-2013 program year. In addition, the City may receive approximately $3,850 In program Income and $35,000 in prior year funds that might be available for allocation to new projects. Of the estimated total of $444,400 In CDBG funding, approximately $81,880 will be used for the City's administration of the program and approximately $61,410 will be available for public service activities. It Is estimated that approximately $150,555 will be available for affordable housing, and $150,555 will be available for facility improvements or other eligible projects. The total amount of new HOME funds available for allocation to eligible projects Is anticipated to be less than $146,000. To develop a CDBG/HOME Program that meets the needs of the lower income population, the City of Carlsbad requests assistance from members of the community. Citizen participation is critical to the success of the Program. A public hearing will be held on Tuesday, November 6, 2012 to obtain comments on the draft 2013-2014 CDBG/HOME Funding Plan. The City encourages all community organizations to consider the needs of lower income persons within Carlsbad and to submit a proposed project, or projects, for consideration by the City Council at a future public hearing. 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. Documentation showing use of those matching funds would be required prior to distribution of CDBG funds for activities under that category. CDBG funding for amounts of $100,000 or more will 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. The City of Carlsbad Is committed to using CDBG/HOME funds to finance projects/services that provide direct benefit to lower Income residents. It Is also the City's intent to approve CDBG/HOME 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. If the City does approve a project that results In displacement of lower Income households, the City will provide relocation assistance as required In Section 570.606(b)(2) of the federal regulations for the CDBG program. All organizations wishing to submit a project for funding consideration under the CDBG/HOME program must obtain an application package from the City of Carlsbad's Housing and Neighborhood Services Department. Interested persons may call (760) 434-2818 to obtain an application. All project proposals must be submitted to: CDBG Administrator, Housing & Neighborhood Services Department, 1200 Carlsbad Village Drive, Carisbad, CA 92008 prior to 5:00 p.m. on December 18, 2012. Persons who have questions or comments regarding the City of Carlsbad's CDBG/HOME Program may contact the CDBG Administrator at (760) 434-2818, Monday through Friday between 8:00 a.m. and 5:00 p.m. PUBLISH: November 2, 2012 ^ CARLSBAD CITY OF Memorandum All Receive-Agenda Item # ]0 For the Information ofthe: CITY COUNCIL Asst. CIil_CA_v£c_ir' DateJiiii^ity Manager www.carlsbadca.gov November 6, 2012 TO: John Coates, Acting City Manager VIA: Debbie Fountain, Housing and Neighborhood Services Directo'''^^ FROM: Frank Boensch, Sr. Management Analyst -^5* RECOMMENDATIONS FOR CDBG/HOME ADVISORY COMMITTEE MEMBERS Terms have expired for the following representatives on the CDBG/HOME Advisory Committee. Northwest Quadrant: Council Member Blackburn appointed the last representative (Dawn Sheals) for this quadrant. Southwest Quadrant: Council Member Douglas appointed the last representative (De'Ann Welmer) for this quadrant. Southeast Quadrant: Council Member Kulchin appointed the last representative (Joan Kindle) for this quadrant. The terms for the Committee Representatives from the Senior Commission (Joan Surridge) and Planning Commission (Julie Nygaard) have also expired. I have contacted staff from those commissions to ask for recommendations for new representatives from their commission chair persons. All of the recommendations will be submitted to the Mayor for his review and consideration for appointment with City Council approval. Please let me know if you have any questions regarding the CDBG/HOME Program. Housing & Neighborhood Services 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 Date: Ditlribulioii: CityClerli Asst. City Ctarti OtputyCttrk Bnnir 760-720-2037 fax 2013-2014 CDBG/HOME Program Community Development Block Grant (CDBG) Home Investment Partnership Program (HOME) CDBG/HOME Program I.Background II.Funding Availability III.Application Review and Funding Process IV.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 •City Projects Home Eligible Projects •Property Acquisition •Housing Rehabilitation •New Construction •Homebuyer Assistance II. Funding Availability Activities 2013-2014 Funding Public Service (15%)61,410 Program Administration (20%)81,880 Facilities, Improvements and Other Eligible Activities 150,555 Affordable Housing 150,555 Subtotal 444,400 Housing Programs/Projects 146,000 TOTAL 590,400 CDBG HOME III. Application and Review Process •Notices published and mailed •Applications available online and from Housing & Neighborhood Services Dept. •Deadline for submission on December 18th 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 2013-2014 CDBG/HOME Program