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HomeMy WebLinkAbout2013-04-02; City Council; 21184; 2013-14 CDBG HOME Investment Partnership ProgramCITY OF CARLSBAD - AGENDA BILL 11 AB# 21.184 2013-2014 COMf\nUNlTY DEVELOPIiAENT BLOCK GRANT AND HOME INVESmENT PARTNERSHIP PROGRAM DEPT. HEA^^ry^j/p^C^ MTG. 4/2/2013 2013-2014 COMf\nUNlTY DEVELOPIiAENT BLOCK GRANT AND HOME INVESmENT PARTNERSHIP PROGRAM CITY ATTY. J^j DEPT. HNS 2013-2014 COMf\nUNlTY DEVELOPIiAENT BLOCK GRANT AND HOME INVESmENT PARTNERSHIP PROGRAM CITY MGR. /"Ql^ RECOMMENDED ACTION: Hold a public hearing to accept comments on the housing and community development needs of lower income households within the City of Carisbad. In addition, the City Council may accept comments on the various proposals that have been submitted for funding under the City of Carisbad's 2013-2014 Community Development Block Grant (CDBG) and HOME Investment Partnership Program. ITEM EXPLANATION: Under Title I ofthe Housing and Community Development Act of 1974, the City of Carisbad continues to be eligible to receive funding under the U.S. Department of Housing and Urban Development (HUD) CDBG Program to finance programs that serve the needs of lower income persons. As a participant in the San Diego Urban HOME Investment Partnership (HOME) Consortium, the City will also receive federal funds to provide affordable housing opportunities for lower income households. In identifying the needs of lower income persons, federal regulations require that the City Council hold at least two public hearings to obtain the views of citizens on Carisbad's housing and community development needs. An initial public hearing to invite comments on the City's CBDG/HOME Program Consolidated Funding Plan Strategy was held on November 6, 2012. This second public hearing will provide another opportunity to obtain comments on the Consolidated Funding Plan Strategy (Exhibit 1) and the City's housing and community development needs. In addition, this hearing will provide an opportunity for public comment on the specific proposals submitted for funding through the Carisbad 2013-2014 CDBG/HOME Program. The City Council will consider approval of the proposals and funding levels at a future meeting. The total amount of CDBG funds available to the City forthe 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 for the 2013-2014 program year, the City received approximately $226,140 in program income from affordable housing loans that is available for allocation to new projects. Of the estimated total of $631,690 in CDBG funding, approximately $81,110 will be used for the City's administration of the program and fair housing services. Approximately $60,832 will be available for public service activities. It is estimated that approximately $489,748 will be available for affordable housing and public facilities. Staff anticipates that Carisbad will receive approximately $146,100 in HOME funds for allocation during the 2013-2014 fiscal year. DEPARTMENT CONTACT: Frank Boensch 760-434-2818 frank.boensch@carisbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • WITHDRAWN • RETURNED TO STAFF • AMENDED • COUNCIL RECEIVED THE • REPORT/PRESENTATION OTHER-SEE MINUTES • PAGE 2 The City received eighteen proposals for use of CDBG or HOME funds in response to a Request for Proposals distributed in November and December of 2012. The CDBG/HOME Advisory Committee evaluated the proposals and interviewed applicants prior to developing the funding recommendations outlined in Exhibit 2. The chart below summarizes the amount of funding requested and the maximum amount that may be available for allocation in each expenditure category: EXPENDITURE CATEGORY AMOUNT OF REQUESTED FUNDING ($) AMOUNT OF AVAILABLE FUNDING ($) CDBG Public Services 148,131 60,832 Public Facility Improvements, Affordable Housing & Other Projects 1,022,148 489,748 Administration and Fair Housing* 81,110 81,110 Total 1,251,389 631,690 HOME Affordable Housing 200,000 146,100 Incl. $10,100 for fair hsg svcs CDBG FUNDS The Committee recommends that $60,000 in CDBG funds available for public service activities be allocated to twelve different organizations. The only application for public facility funds came from Hospice of the North Coast for acquisition of a hospice house. The City Council allocated funds from previous years to that organization for that purpose after their application was submitted and they completed that purchase eariier this year. As a result. Hospice of the North Coast withdrew their application for 2013-2014 funds. Because no other applications were received for public facilities from non-city organizations, staff is recommending that $100,000 be allocated to complete a feasibility study and application to the Public Utilities Commission for a pedestrian railway crossing at Chestnut Avenue. Public Works staff has confirmed that this portion of the pedestrian crossing project could move fonA/ard within the next program year, and HUD staff has agreed the project is eligible for CDBG funds. The Citizens Advisory Committee is in favor of allocating those funds for the project. The Committee is also recommending that the remainder of approximately $389,748 in CDBG funds available in the Public Facility Improvements and Affordable Housing categories be allocated to the City's Housing Reserve Fund for future affordable housing; the specific project(s) will need to be reviewed again at a later date by the City Council. Finally, the Committee is recommending that $10,100 of funds available for Administration be provided to the Center for Social Advocacy to assist residents with fair housing services as required by HUD to receive CDBG funds; the City will receive the remaining funds ($71,010) for administration ofthe CDBG program. HOME FUNDS The Committee is recommending that the City Council allocate $146,100 in HOME funds to the City's Down Payment and Closing Cost Assistance Program. This is an existing program that assists lower income households to purchase affordable homes in Carisbad. 5 PAGE 3 RECOMMENDATION: It is staff's recommendation that the City Council accept public comments on the needs of low income persons and the proposals submitted for funding under the City's 2013-2014 CDBG/HOME Program to meet those needs. No action, other than holding the public hearing and accepting comments, is required of the City Council at this meeting. A future meeting will be scheduled at a later date for the City Council to take action on the noted requests and recommended allocations of CDBG funds. FISCAL IMPACT: It is anticipated that approximately $631,690 will be available for allocation through the City's 2013- 2014 CDBG Program, and approximately $146,100 through the City's HOME Program. The City may use up to twenty percent (20%) of the new CDBG allocation, or approximately $81,110, for administration of the City's CDBG program and fair housing services. The Advisory Committee is recommending that $10,100 of those funds be used to contract with the Center for Social Advocacy to provide fair housing services to Carisbad residents as a requirement for receiving federal funds through the CDBG Program. The remainder ofthe allocation available for administration will be used to reimburse the City for staff and operational expenses related to CDBG program costs. It is anticipated that the City will receive approximately $3,500 from the County Consortium to reimburse the City for administrative expenses related to the HOME Program. The CDBG/HOME Program has no fiscal impact on the General Fund. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code Section 21065, this action 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. 2013-2014 Consolidated Funding Plan Strategy. 2. Advisory Committee Funding Recommendations. 3 Exhibit 1 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 Carisbad. The programs must provide one or more of the following activities for adults: employment services, job training, and educational programs. Programs designed for elderiy 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 Amount($) 405,550 226.140 TOTAL 631,690 Funds Available bv Activitv Public Service (Maximum15% of new grant.) Affordable Housing Public Facilities, Improvements/Other Program Administration/Fair Housing (Maximum 20% of new grant) Total Available Funds Amount ($) 60,832 244,874 244,874 81,110 631,690 3 of 5 6 2013-2014 HOME INVESTMENT PARTNERSHIP PROGRAM STRATEGY The City of Carisbad, 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 7 Leverage In so far as possible, HOME funds will be leveraged with other public and private funding sources to enhance program productivity. Area of Activitv HOME funds may be used for housing activities implemented within the City of Carisbad. CITY OF CARLSBAD HOME INVESTMENT PARTNERSHIP PROGRAM SUMMARY OF FUNDS AVAILABLE FOR 2013-2014 PROGRAM YEAR 2013-2014 HOME Funding Allocation for Carlsbad $146,100 5 of 5 9 EXHIBIT 2 2013-2014 CITY OF CARLSBAD CDBG/HOME PROGRAM LIST OF PROJECT PROPOSALS AND FUNDING RECOMMENDATIONS APPLICATION # AGENCY/PROJECT REQUESTED AMOUNT RECOMMENDED FUNDING CATEGORY 1 Boys and Giris Club Teen Scene Program $15,000 $5,000 Public Service 2 Brother Benno Brother Benno Center $10,000 $5,000 Public Service 3 Casa de Amparo/Food Program for Neglected and Abused Children $10,000 $5,000 Public Service 4 Catholic Charities / La Posada de Guadalupe Homeless Shelter $10,000 $5,000 Public Service 5 Community Resource Center Homeless Prevention and Intervention $7,500 $5,000 Public Service 6 Fraternity House HIV and AIDS Caregiving Program $7,825 0 Public Service 7 Interfaith Community Services Housing and General Assistance $20,160 $5,000 Public Service 8 Meals on Wheels Meal Delivery Service $9,000 $5,000 Public Service 9 North County Community Services Food Bank $8,089 $5,000 Public Service 10 North County Health Services / Health Screening and Immunizations $5,000 0 Public Service 11 North County Lifeline Youth Counseling Program $17,160 $5,000 Public Service 12 The Angel's Depot Seniors Meal Program $8,397 $5,000 Public Service 13 Women's Resource Center Alternatives to Abuse Shelter $15,000 $5,000 Public Service 14 YMCA OZ Youth Shelter $5,000 $5,000 Public Service 15 Hospice of the North Coast Hospice Home $422,148 Application withdrawn N/A 16 City of Carisbad Housing Reserve Fund $600,000 $389,748 Affordable Housing 17 City of Carisbad/Down Payment and Closing Cost Program $200,000 HOME Only $146,100 (HOME funds) Affordable Housing 18 Center for Social Advocacy Fair Housing Program $15,000 $10,100 Fair Housing/ Administrative N/A City Administration $71,010 $71,010 Fair Housing/ Administrative N/A Pedestrian Railway Crossing @ Chestnut Avenue No application Staff recommendation $100,000 (see note below) Public Facility Note: An allocation of $100,000 is recommended by staff to be used on completion of a feasibility study and preparation of an application to the Public Utilities Commission for creating a pedestrian railway crossing at Chestnut Avenue. The request was submitted by staff and is being recommended for funding because no other applications were submitted that are eligible for that funding category and residents in the surrounding community would benefit from improved access across the railway corridor to the coastal area. This space is for the County Clerk's Filing Stamp PROOF OF PUBLICATION (2010 & 2011 CC.P.) 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: March 30*^ 2013 Proof of Publication of City of Carlsbad 2013-2014 Annual Funding Plan for Community Development Block Grant (CDBG) Program and HOME Investment Partnership (HOME) Program Notice of Public Hearing The citizens of Carlsbad and other interested parties are hereby notified that Carlsbad's City Council will hold a public hearing on Tuesday, April 2, 2013 at 6:00 pm in the Council Chambers lo-cated 1200 Carlsbad Village Drive to accept public comments on the needs of lower income persons in Carlsbad for development of the City's CDBG/HOME Program's 2013-2014 Annual Funding Plan. Public comments will also be received on proposals sub-mitted for funding through the City's 2013-2014 CDBG/HOME Program. The City has approximately $631,000 available for al-location to eligible CDBG projects and approximately $146,000 for allocation to eligible HOME proiects. The City of Carlsbad is committed to using CDBG/HOME funds to finance projects/services that provide direct benefit to lower income residents. To develop a CDBG/HOME program that meets the needs of the low and moderate-income population, the City of Carlsbad requests assistance from members of the com- munity. Citizen participation is critical to the success of the Carlsbad CDBG/HOME program. Therefore, the City invites all community members to consider the needs of lower income per-sons within Carlsbad, to attend the public meetings, and to pro-vide comments on the housing and community development needs of lower-income persons as part of the development of a 2013-2014 Annual Plan for the program. Public comments are also requested on the various proposals that have been submit-ted for funding under Carlsbad's 2013-2014 CDBG/HOME Pro- gram. Those proposals selected for funding will be identified within the Annual Plan as the activities the City will pursue in the upcoming year to meet the needs of lower income Carlsbad residents. The City has received a total of 18 proposals for CDBG/HOME funding. The application period for 2013-2014 funds has ended. Copies of all proposals are on file in the Hous- ing and Neighborhood Services Department. Persons who have questions or comments regarding the City of Carlsbad's CDBG/HOME Program or who would like more spe- cific information on the proposals submitted for 2013-2014 CDBG/HOME funding consideration and those being recom-j mended for funding, please contact the City's CDBG/HOME Ad-ministration staff at (760) 434-2818. Persons in need of translators or other special services should! contact the City Manager's Office at (760) 434-2821. PUB: March 30, 2013 10730469 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Escondido, California On This 01^ day April, 2013 Jane AUshouse NORTH COUNTY TIMES Legal Advertising City of Carlsbad 2013-2014 Annual Funding Plan for Community Development Block Grant (CDBG) Program and HOME Investment Partnership (l-IOME) Program Notice of Public Hearing The citizens of Carisbad and other interested parties are hereby notified that Carisbad's City Council will hold a public hearing on Tuesday, April 2, 2013 at 6:00 pm in the Council Chambers located 1200 Carisbad Village Drive to accept public comments on the needs of lower income persons in Carlsbad for development of the City's CDBG/HOME Program's 2013-2014 Annual Funding Plan. Public comments will also be received on proposals submitted for funding through the City's 2013-2014 CDBG/HOME Program. The City has approximately $631,000 available for allocation to eligible CDBG projects and approximately $146,000 for allocation to eligible HOME projects. The City of Carlsbad is committed to using CDBG/HOME funds to finance projects/services that provide direct benefit to lower income residents. To develop a CDBG/HOME program that meets the needs of the low and moderate-income population, the City of Carisbad requests assistance from members of the community. Citizen participation is critical to the success of the Carisbad CDBG/HOME program. Therefore, the City invites all community members to consider the needs of lower income persons within Carisbad, to attend the public meetings, and to provide comments on the housing and community development needs of lower-income persons as part of the development of a 2013-2014 Annual Plan for the program. Public comments are also requested on the various proposals that have been submitted for funding under Carlsbad's 2013-2014 CDBG/HOME Program. Those proposals selected for funding will be identified within the Annual Plan as the activities the City will pursue in the upcoming year to meet the needs of lower income Carisbad residents. The City has received a total of 18 proposals for CDBG/HOME funding. The application period for 2013-2014 funds has ended. Copies of all proposals are on file in the Housing and Neighborhood Services Department. Persons who have questions or comments regarding the City of Carlsbad's CDBG/HOME Program or who would like more specific information on the proposals submitted for 2013-2014 CDBG/HOME funding consideration and those being recommended for funding, please contact the City's CDBG/HOME Administration staff at (760) 434-2818. Persons in need of translators or other special services should contact the City Manager's Office at (760) 434-2821. PUBLISH: March 30, 2013 CITY OF y)^ttReceive-AgendaItem#JI.- CARLSBAD Forihelnfomationofm^^ www.caHsbadca.gov CITYCPUNCIL y Asst-CMAZ^CAJ^CCV/ ]\4emOrandum Date3(5a aty Manager^ March 26, 2013 TO: John Coates, City Manager From- Debbie Fountain, Housing and Neighborhood Sen/Ices Director^^^ Via: Kathy Dodson, Acting Community and Economic Development DirectorT^ 3 Habitat for Humanity Grant Proposal for CDBG funds Re: The Citv recently received the attached Habitat for Humanity request for $359,900 in funding from the City's 2013-14 Community Development Block Grant (CDBG) Program to purchase vacant property on the northeast comer of Harding Street and Chestnut Avenue for affordable housing purposes. Habitat for Humanity is proposing to develop two to three homes, in a d uplex or triplex development, to be affordable to low income households, with one home to be reserved for sale to a wounded veteran. Funds are available through the City s 2013-2014 CDBG Program. Staff is recommending that this request for funding be added to the list of CDBG funding allocations to be considered by the City Council on April 2, 2013. Initially no applications for affordable housing grants were submitted by any organizations other than the City during the recently completed annual application review process. The CDBG Citizen Advisory Committee approved the $359,900 in funding to be set-aside in a reserve fund for a future affordable housing development. Staff believes that the attached request from Habitat for Humanity is eligible forthe affordable housing set-aside funds and recommends that the City Council approve the requested funding for the noted property acquisitioir The Advisory Committee has been notified ofthe application by Habitat for Humanity. Staff does not anticipate any objections from the Advisory Committee to the inclusion of this application in the 2013-14 CDBG funding program. A public hearing before the City Council regarding the 2013-14 CDBG Program is scheduled for April 2' 2013- no action is requested at this meeting. It is an opportunity for the City Council to hear from the community and consider the input on the suggested allocations of funding. The City Council will then be asked to consider approving a resolution allocating the recommended funding amounts shown on the attached list during their meeting on April 30, 2013. Please contact my office if you have any questions or require addlllOliyl IllfUlllldUuiiuii Lliis matter. Date: Dittributioii: ' Attachments City Clefk C: Acting Assistant City Manager ASSf, City Clerk _ [Deputy C\evk ^ Housing & Neighborhood Services IBQQK,^.,^, —. M 1200 Carisbad Village Drive I Carlsbad, CA 92008 I 760-434-2810 ||Tg&^20-2037 fax