Loading...
HomeMy WebLinkAbout2013-04-30; City Council; 21212; Approval Allocations 2013-2014 CDBG Home ProgramCITY OF CARLSBAD - AGENDA BILL 24 AB# 21.212 APPROVAL OF ALLOCATIONS FOR 2013-2014 CDBG/HOME PROGRAM DEPT. HEAD(0a^5i MTG. 4/30/13 APPROVAL OF ALLOCATIONS FOR 2013-2014 CDBG/HOME PROGRAM CITY ATTY. ^-^pT" DEPT. HNS APPROVAL OF ALLOCATIONS FOR 2013-2014 CDBG/HOME PROGRAM CITY MGR. RECOMMENDED ACTION: Adopt Resolution No. : 2Q13-094 approving funding allocations for the City of Carlsbad's 2013-2014 Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Program, authorizing the City Manager to enter into funding agreements for the approved projects, and authorizing the submittal of an Annual Funding Plan based on the approved funding allocations. ITEM EXPLANATION: Under Title I of the Housing and Community Development Act of 1974, the City of Carlsbad 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 Carlsbad'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. A second public hearing was held on April 2""^ to provide another opportunity to obtain comments on the Consolidated Funding Plan Strategy and the specific proposals submitted for the 2013-2014 CDBG/HOME 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 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 Carlsbad will receive approximately $146,100 in HOME funds for allocation during the 2013-2014 fiscal year. The City received eighteen proposals for use of CDBG or HOME funds in response to a Request for Proposals distributed in November and December of 2012. The CDBG/HOME Advisory Committee evaluated the proposals and interviewed applicants prior to developing the funding recommendations outlined in Exhibit 2. The chart on page 2 summarizes the amount of funding requested and the maximum amount that may be available for allocation in each expenditure category: DEPARTMENT CONTACT: Frank Boensch 760-434-2818 frank.boensch^carlsbadca.gov FOR CITY CLERKS USE ONLY. X COUNCIL ACTION: APPROVED X CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • WITHDRAWN • RETURNED TO STAFF • AMENDED • COUNCIL RECEIVED THE • REPORT/PRESENTATION OTHER-SEE MINUTES • PAGE 2 EXPENDITURE CATEGORY AMOUNT OF REQUESTED FUNDING ($) AMOUNT OF AVAILABLE FUNDING ($) 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 *ind. $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 earlier 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 fon/vard 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 recommended 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. However, staff received a proposal from Habitat for Humanity to use funds for affordable housing after the Committee completed their application review process. The proposal is to use up to $359,000 in CDBG funds to assist with the purchase of vacant property on the corner of Chestnut Avenue and Harding Street for development of up to four units of affordable housing that would be sold to lower income households. At least one of those units would be sold to a wounded veteran. Staff supports this proposed use of funds as no other project has been identified that could use them in a timely manner needed to meet HUD expenditure guidelines and it will provide long term affordable housing opportunities for four households. The Advisory Committee has also been notified of this proposal and responses have been supportive of this funding request. 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. The City is required by HUD to provide these services in order to receive CDBG funds and may use Administrative category funds for this purpose. The City will receive the remaining $71,010 in funds from this category for administrative costs related to the CDBG program. PAGE 3 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 Carlsbad. The City will receive approximately $3,500 from the County of San Diego HOME Consortium to offset staff costs incurred from administering the HOME program. 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 Carlsbad residents as a requirement for receiving federal funds through the CDBG Program. The remainder of the 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. Resolution No. 20.13-094 approving funding allocations for the City of Carlsbad's 2012-2013 Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Program, authorizing the City Manager to enter into funding agreements for the approved projects, and authorizing staff to submit an Annual Funding Plan to the U.S. Department of Housing and Urban Development with the approved funding allocations. 2. List of Project Proposals and Funding Recommendations. 3 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 1 CITY COUNCIL RESOLUTION NO. 20T3-094 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING FUNDING ALLOCATIONS FOR THE 2013-2014 COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP PROGRAMS, AUTHORIZING THE CITY MANAGER TO ENTER INTO FUNDING AGREEMENTS FOR THE APPROVED PROJECTS, AND AUTHORIZING THE SUBMITTAL OF AN ANNUAL PLAN BASED ON THE APPROVED ALLOCATIONS. . WHEREAS, the City Council of the City of Carlsbad, Califomia, held a public hearing on April 2, 2013 to accept comments on the needs of lower income persons and the proposals submitted for funding under the 2013-2014 Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs; and, WHEREAS, the City Council considered the CDBG/HOME recommendations for project funding allocations; and, WHEREAS, the City Council selected the projects to be included in the City of Carlsbad's 2013- 2014 CDBG/HOME Program Annual Plan; and, WHEREAS, the City Council has taken all testimony into account. NOW, THEREFORE BE IT HEREBY RESOLVED as follows: 1. That the above recitations are true and correct. 2. That the projects selected by the City Council and attached as Exhibit 2 are hereby approved at the indicated funding levels for inclusion in the City's 2013-2014 CDBG/HOME Program. 3. That the City Manager, with City Attomey concurrence, is authorized to execute funding agreements with the County of San Diego and selected organizations for the approved funding amounts to be adjusted in accordance with actual funding amounts allocated by the U.S. Department of Housing and Urban Development. 4. That the Housing and Neighborhood Services Director is authorized to submit an Annual Plan for the 2013-2014 CDBG/HOME Program to the U.S. Department of Housing and Urban Development based on the approved allocations as indicated in Exhibit 2. /// /// /// /// /// PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 30* day of April, 2013, by the following vote to wit: AYES: NOES: Council Members Hall, Packard and Douglas. Council Members Wood and Blackburn. ABSENT: None. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTEST: %7 * i^^hESOWCity Clerk o = 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 Girls Club Teen Scene Program $15,000 $5,000 Public Sen/ice 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/Intervention $7,500 $5,000 Public Service 6 Fraternity House HIV and AIDS Caregiving Program $7,825 0 Public Sen/ice 7 Interfaith Community Services Housing and General Assistance $20,160 $5,000 Public Sen/ice 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 Sen/ices Hearing Screenings for Children $5,000 0 Public Sen/ice 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 Sen/ice 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 Carlsbad Housing Reserve Fund $600,000 $29,848 Affordable Housing 17 City of Carlsbad/Down Payment and Closing Cost Program $200,000 HOME Only $146,000 (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 at Chestnut Avenue No application Staff recommendation $100,000 (see note below) Public Facility N/A Habitat for Humanity/Property Acquisition for Affordable Housing No application Staff recommendation 0 (see note below) Affordable Housing 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. CDBG/HOME PROGRAM 2013-2014 Program Year CDBG/HOME Program •Community Development Block Grant –To help serve the needs of lower income persons –To assist in the development of viable communities •Home Investment Partnership –To provide affordable housing opportunities for lower income persons CDBG/HOME Public Hearing Held on April 2,2013 •Received comments on the needs of lower income residents. •Provided an opportunity to comment on proposals for 2013-2014 program year. Habitat for Humanity Proposal •Request for up to $359,000 to purchase vacant property on the northeast corner of Harding Street and Chestnut Avenue. •Up to four units can be built on the property. •Use of federal funds would require purchase price to be determined by appraisal. Habitat for Humanity Proposal •Recent appraisal indicates market value of the property of $307,000. •City subsidy of $76,750 per unit is in the range of past assistance for affordable housing. Requested Action Approve resolution allocating funds for the 2013-2014 CDBG/HOME Program, authorizing the City Manager to execute related agreements and authorizing the submittal of an Annual Funding Plan to HUD based on the approved allocations. 2013-1014 CDBG/HOME PROGRAM