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HomeMy WebLinkAbout2013-01-29; City Council; 21116; Amendment 2012-2013 Community Block Grant CDBGCITY OF CARLSBAD - AGENDA BILL 11 AB# 21,116 AMENDMENT TO 2012-2013 DEPT.DIRECTOffV MTG. 1/29/13 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ACTION PLAN CITY ATTY. DEPT. HNS COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ACTION PLAN CITY MGR. , RECOMMENDED ACTION: Adopt City Council Resolution No. 2013-027 authorizing the submittal of an amendment to the City's 2012-2013 Community Development Block Grant (CDBG) Program Action Plan and authorizing the execution of related documents. 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 2012-2013 Action Plan to allocate funds on a project that will allow those funds to be used in a timely manner to meet HUD expenditure requirements. The City Council previously allocated $333,906 in CDBG funds for use on preconstruction activities related to the potential development of a pedestrian railway crossing at Chestnut Avenue. Those predevelopment activities have not advanced as fast as staff initially planned. Only $15,314 has been committed so far to contract with a consultant for preliminary engineering services necessary to take the proposal to the California Public Utilities Commission for consideration. The remaining $318,592 needs to be reallocated to a faster moving project to help the City meet the HUD expenditure requirement. The City Council has allocated a total of $661,583 in CDBG funds to Catholic Charities for predevelopment activities related to the construction of a new La Posada de Guadalupe homeless shelter to replace a smaller shelter on Impala Drive in Carlsbad. Predevelopment activities costing a total of $507,585 are now complete and Agriculture Conversion Mitigation Fee Program funds from the City are currently being used to construct the new shelter. The City needs to amend the Action Plan to allow for a reallocation of the remaining $153,998 in CDBG funds that are no longer required by Catholic Charities for predevelopment expenses. The City Council allocated $84,000 in CDBG funds to Interfaith Community Services to assist them in the acquisition of a facility in Oceanside that they currently lease as a site where they provide social services. Interfaith was unable to complete the purchase and the City must now amend the 2012-2013 Action Plan to reallocate those funds to an alternate project. DEPARTMENT CONTACT: Frank Boensch 760-434-2818 frank.boensch(a)carlsbadca.gov FOR CITY CLERKS USE ONL Y. COUNCIL ACTION: APPROVED DENIED • WITHDRAWN • AMENDED • CONTINUED TO DATE SPECIFIC • CONTINUED TO DATE UNKNOWN • RETURNED TO STAFF • COUNCIL RECEIVED THE • REPORT/PRESENTATION OTHER - SEE MINUTES • Page 2 The Annual Plan also provides $538,400 in 2011 program year funds and $370,120 in 2012 program year funds to Community Housing VVorks for acquisition of property and/or predevelopment costs related to construction of affordable housing in the City of Vista. Due to a delay in reaching agreements for use of the funds, the $538,400 in 2011 program year funds will need to be reallocated for use on an activity that is more likely to be completed prior to the end of March of 2013 in order for the City to meet HUD expenditure requirements. POTENTIAL REALLOCATION OF FUNDS The City Council recently approved $7,408,000 in financial assistance for the acquisition of properties with duplex homes on Carol Place, Harding Street and Magnolia Avenue for affordable housing purposes. Until recently, staff planned to recommend that the City Council reallocate funds available from the projects mentioned above to be included as part of the $7,408,000 in financial assistance for those duplex property acquisitions. However, use of CDBG funds on the development would have required that additional relocation financial assistance be provided to those currently residing in the duplexes; this federal requirement would have substantially increased the cost of the project. Therefore, it would not be cost effective to use CDBG funds on this development due to the increase in relocation costs. As a result of this change in plans for use of the funds, a request for proposals for use of the funds was distributed to organizations that have applied for CDBG funds over the past three years. The request for proposals made it clear that the funds would need to be expended before the end of March of 2013 in order for the City to meet HUD spending requirements for this reallocated funding. It was requested that proposals be submitted for acquisition of property only; this is one of the few eligible uses for the funds that can be completed prior to the March, 2013 deadline. Hospice of the North Coast was the only organization that submitted a proposal for use of the funds. They are proposing to use the funds to acquire a home in Carlsbad at 4411 Park Drive that is currently being used as a residential care facility for the elderly. The residential care facility would be ideal for conversion to a hospice home to care for terminally ill patients. A majority of those served by the facility would be elderly patients from lower income households. There is a great need for such a facility in Carlsbad as there are no other hospice homes located within the City. HUD representatives have provided the City with a written determination that acquisition of property for a hospice home is an eligible use for the funds. The property is being offered for sale at $1,500,000 based on an appraisal conducted in 2007. The appraisal will need to be updated to reflect a current fair market value and the actual purchase price will likely be based on the updated appraised value. Hospice of the North Coast is requesting that the City provide up to $1,065,000 to assist in the purchase. They would be providing matching funds for the balance of acquisition costs. RECOMMENDATION: A total of $1,094,990 in CDBG funds are available for reallocation from the four projects mentioned above. It is recommended that the City Council approve amending the Annual Plan to allow for an allocation of $1,065,000 to Hospice of the North Coast for the purchase Page 3 of property at 4411 Park Drive for a hospice home in Carlsbad. The remaining funds of $29,990 will be reallocated at another time. FISCAL IMPACT: The City of Carlsbad has CDBG funds available to reallocate to Hospice of the North Coast to adequately fund the $1,065,000 in financial assistance 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 2012-2013 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. 2013-027 approving the submittal of the 2012-2013 Amended Action Plan to the U.S. Department of Housing and Urban Development and authorizing the Interim City Manager to enter into related agreements. 3 1 RESOLUTION NO. 2013-027 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE ^ SUBMITTAL OF AN AMENDMENT TO THE 2012-2013 4 ACTION PLAN FOR THE CITY'S COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM TO THE U.S. 5 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND AUTHORISING THE EXECUTION 6 OF DOCUMENTS RELATED TO THE ACQUISITION OF PROPERTY FOR A HOSPICE HOME BY HOSPICE OF 7 THE NORTH COAST. 8 ^ WHEREAS, the City must prepare an amendment to the 2012-2013 Action Plan 10 to add new projects to be undertaken that were no included as part of the original Action 11 Plan; and 12 WHEF^S, the City Council has taken all testimony into account. 1^ NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 14 Carlsbad, California, as follows that: 15 1. The above recitations are true and correct. 16 2. That the City Council approves the submittal of an amendment to the 2012- jg 2013 Action Plan for the Community Development Block Grant Program to 19 the U.S. Department of Housing and Urban development to allow for the 20 expenditure of $1,065,000 in CDBG funds to assist in the acquisition of 21 property for a hospice home in Carlsbad by Hospice of the North Coast for primarily low income households. 3. That the Interim City Manager is authorized to execute agreements for the funding assistance to Hospice of the North Coast to purchase property for a hospice home in Carlsbad, subject to review as to form by the City Attorney, and the Finance Director is authorized to disburse said funds subject to the 23 24 25 26 27 2g noted funding agreements. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council of the City of Carlsbad on the 29*^ day of January 2013, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Blackburn, Douglas. None. ABSENT: None. MATT WALL, Mayor ATTEST: stant City Clerk (SEAL) .v^^r^o';':-. ^ 0..--\v»Hu ••...-7.'. CITY OF CARLSBAD PUBLIC HEARING AND NOTICE OF PUBLIC REVIEW PERIOD FOR AMENDMENT TO 2012-2013 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ACTION PLAN THE PUBLIC IS HEREBY NOTIFIED THAT the City of Carlsbad has prepared an amendment to its 2012-2013 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 pubiic hearing to obtain comments on the proposed amendment on Tuesday, January 29, 2013. 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 expanding economic opportunities for lower income persons. The total amount of CDBG program funds available for reallocation by the City is up to $1,094,990. As identified in the Annual Plan, the general policy of the City of Carisbad 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 throughout 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 Section 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 2012 Annual Plan will be available for public review and comment from January 25, 2013 to February 25, 2013. Copies of the document are available for review at the Carisbad City Libraries (1250 Carisbad Village Drive and 1775 Dove Lane), and the Housing and Neighborhood Services Department (1200 Carisbad Village Drive). Written or verbal comments will be accepted until 5:00 pm on February 25, 2013 at the Housing and Neighboriiood Services Department. Comments must be submitted to the attention of CDBG Coordinator, City of Carisbad, Housing and Neighborhood Services Department, 1200 Carisbad Village Drive, Carisbad, CA 92008. Questions or Comments Call (760)434-2818. PUBLISH 1/25/13 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: January 25^\ 2013 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Escondido, California This 25^^ day January 2013 Proof of Publication of Jane Allshou; NORTH COUNTY flMES Legal Advertising CITY OF CARLSBAD •X PUBLIC HEARING AND NOTICE OF PUBLIC RE VIEWPERIODFORAMENDMENT TO 2012-2013 ° COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ACTION PLAN THE PUBLIC IS HEREBY NOTIFIED THAT the City of Carlsbad has prepared an amendment to its 2012-2013 Communi- ty Development Block Grant (CDBG) Action Plan to a low for the expenditure of program income as required by the U S. De-partment 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, January ^v, 2013. The City of Carlsbad is eligible to receive funding through the federal CDBG Program to finance proiects which serve the needs of lower income persons. The funds are to.be used to de-velop 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 funds available for reallocation by the City is up to $1,094,990. 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 tirs, priority through the use of available Federal, State, and loca 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 proiect will result n 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 proiect, the City will provide relo- cation assistance as required by Section 570.606(b)(2) of the fed-eral regulations for the CDBG Program. Residents of Carlsbad are hereby notified that the City of Carlsbad's draft amendment to its 2012 Annual Plan vyiH be available for public review and comment from January 25, iOM to February 25, 2013. Copies of the document are availab e for revilw at the Carlsbad City Libraries (1250 Carlsbad ViHage Drive and 1775 Dove Lane), and the Housing and Neighborhood Services Department (1200 Carlsbad Village Drive). Written or verbal comments will be accepted until 5:00 pm on February 25, 2013 at the Housing and Neighborhood Services De-partment. Comments must be submitted to the attention of CDBG Coordinator, City of Carlsbad, Housing and Neighbor-hood Services Department, 1200 Carlsbad VUlage Drive, Carlsbad, CA 92008. Questions or Comments Call (760) 434-281 a. PUBLISH 1/25/13 10710168 Amendment to 2012-2013 Community Development Block Grant Annual Action Plan Annual Action Plan Amendment •U.S. Department of Housing and Urban Development (HUD) requires Annual Plan to receive federal Community Development Block Grant (CDBG) funds. •Annual Plan provides details on how funds will be used. Annual Action Plan Amendment •Public hearing for amending the Plan is required for any substantial change. •Amendment is needed to reallocate funds from slow moving and completed projects to meet HUD expenditure regulations. Annual Action Plan Amendment •Request for Proposals was distributed when planned use of funds for affordable housing was found to be not cost effective. •One proposal was received from Hospice of the North Coast to use $1.065 million to assist in the acquisition of property for a hospice house at 4411 Park Drive in Carlsbad. Annual Action Plan Amendment •Property at 4411 Park Drive was originally offered for sale at $1.5 million based on 2007 appraised value. •Owner now agrees to sell property for new appraised value of $1.25 million. Recommended Action Approve Resolution No. 2013-027 authorizing the submittal of an amended Annual Plan to allow for the expenditure of funds to assist in the acquisition of property by Hospice of the North Coast.