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 •
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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
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Carlsbad, California, as follows that:
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1. The above recitations are true and correct.
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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
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2g noted funding agreements.
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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
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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.