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.
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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.
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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.
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ATTEST:
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i^^hESOWCity Clerk
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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