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HomeMy WebLinkAbout2014-04-08; City Council; 21553; Approval Community Development Block Grant Allocations, Participation in Home Investment Partnership ProgramCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 21.553 4/8/14 CED APPROVAL OF COMMUNITY DEVELOPMENT BLOCK GRANT ALLOCATIONS AND PARTICIPATION IN HOME INVESTMENT PARTNERSHIP PROGRAM DEPT. DIRECTOR CITY ATTORNEY CITY MANAGER J4 RECOMMENDED ACTION: That the City Council ADOPT Resolution No. 2014-056 approving funding allocations for the City of Carlsbad's Community Development Block Grant (CDBG) Program and participation in the HOME Investment Partnership (HOME) Program, authorizing the City Manager to enter into agreements related to the programs, 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 may also participate in Consortium programs receiving 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 Program Funding Plan Strategy was held on November 11, 2013. A second public hearing was held on March 11th to provide another opportunity to obtain comments on the Funding Plan Strategy and the specific proposals submitted for the 2014-2015 CDBG Program. The total amount of CDBG funds available to the City for the 2014-2015 program year is unknown at this stage in the federal budgeting process. However, it is anticipated that the City may receive less than the $470,769 allocation it received for the 2013-2014 program year. Of the estimated total of $470,769 in CDBG funding, approximately $94,000 will be used for the City's administration of the program and fair housing services. Approximately $69,000 will be available for public service activities. It is estimated that approximately $307,000 will be available for affordable housing and public facilities. Staff anticipates that Carlsbad will participate in a HOME funded down payment assistance program through the County of San Diego for lower income households wishing to apply for loans of up to $70,000 for the purchase a home in Carlsbad. CDBG Program The primary objective of the CDBG program is to assist lower income persons/households. Each proposed project must meet at least one of the national objectives for the CDBG Program and at least one ofthe local housing and community development objectives. These national and local objectives are outlined in the CDBG/HOME Program Funding Plan. These objectives reflect the City's desire to develop a program which best meets the various needs of low and moderate-income Carlsbad residents. 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 • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • PageZ The City received seventeen proposals for use of CDBG or HOME funds in response to a Request for Proposals distributed in November and December of 2014. The CDBG/HOME Advisory Committee evaluated the proposals and interviewed applicants prior to developing the funding recommendations outlined in Exhibit 2. The Committee recommends that $69,000 in CDBG funds available for public service activities be allocated to twelve different organizations. The only applications for public facility funds came from Solutions for Change for improvements to their Solutions Farms facility. No allocation of funds is recommended for that project due to eligibility concerns expressed by HUD representatives. The only applications for affordable housing were from Community Housing Works for a down payment assistance program and from staff for the City's Housing Reserve Fund. No allocation is recommended for the Community Housing Works proposal as the County will be implementing a down payment assistance program as described in the section regarding HOME funds below. The Committee recommends that approximately $307,000 in funds available for housing, facility improvements, or other eligible activities be allocated to the City's Housing Reserve Fund for future affordable housing. Recommendations for the specific project(s) to be funded through the Housing Reserve Fund will be presented for City Council consideration at a later date. The Committee is also recommending that $11,000 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 approximately $83,000 for administration ofthe CDBG program. HOME Program The primary objective ofthe HOME program is to provide affordable housing opportunities for lower income households. The County of San Diego is the lead agency for the County's HOME Consortium, which also includes a number of other cities. In past years, the County has allowed member cities to use HOME funds for any eligible program within their communities. Carlsbad has allocated the majority of its share of HOME funds for a down payment assistance program since it was started over six years ago. Much more restrictive regulations have recently been adopted for the use of HOME funds and the County has determined that it must restrict the use of those funds because of the added administrative burden brought about by the new regulations. As a result, member cities will no longer be able to choose what programs they wish to provide with HOME funds. Instead, the County of San Diego will administer a down payment assistance program that will be available to any eligible household wishing to purchase a home in the County unincorporated area, or within the boundaries of any of the Consortium member cities. The County program will allow households earning up to 80% ofthe area median income to obtain loans of up to 33% of a home's purchase price, up to a maximum of $70,000. FISCAL IMPACT: The CDBG and HOME Programs have no fiscal impact on the General Fund. No new HOME funds will be available for allocation, but City residents will be eligible to participate in the County's down payment assistance program funded through the HOME Program. It is anticipated that approximately $470,000 will be available for allocation through the City's 2014-2015 CDBG Program. The City may use up to twenty percent (20%) of the new CDBG allocation, or approximately $94,000, for administration of the City's CDBG program and fair housing services. The Advisory Committee is recommending that $11,000 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 is recommended to be used to reimburse the City for staff and operational expenses related to the CDBG program. A Pages 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. 2014-056 approving funding allocations for the City of Carlsbad's 2014- 2015 Community Development Block Grant and participation in the HOME Investment Partnership Program, authorizing the City Manager to enter into agreements related to the programs, and authorizing staff to submit an Annual Funding Plan to the U.S. Department of Housing and Urban Development based on the approved funding allocations 2. List of Project Proposals and Funding Recommendations. 1 RESOLUTION NO. 2014-056 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING FUNDING ALLOCATIONS FOR THE 2014- 3 2015 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND PARTICIPATION IN HOME INVESTMENT PARTNERSHIP PROGRAM, 4 AUTHORIZING THE CITY MANAGER TO ENTER INTO AGREEMENTS RELATED TO THE PROGRAMS, AND AUTHORIZING THE SUBMITTAL OF AN ANNUAL PLAN BASED ON THE APPROVED FUNDING ALLOCATIONS. 7 WHEREAS, the City Council of the City of Carlsbad, California, held a public 8 hearing on March 11, 2014 to accept comments on the needs of lower income persons and the proposals submitted for funding under the 2014-2015 Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs; and WHEREAS, the City Council considered the CDBG and HOME recommendations for project funding allocations; and 9 10 11 12 13 24 WHEREAS, the City Council selected the projects to be included in the City of 15 Carlsbad's 2014-2015 CDBG Annual Plan; and 16 WHEREAS, the City Council has taken all testimony into account. NOW, THEREFORE BE IT HEREBY RESOLVED as follows: 18 1. That the above recitations are true and correct. 19 2. That the projects selected by the City Council and attached as Exhibit 2 are 20 hereby approved at the indicated funding levels for inclusion in the City's 2014-2015 CDBG/HOME Program. 22 3. That the City Manager, with City Attorney concurrence, is authorized to execute funding agreements with the selected organizations for the approved funding amounts 23 to be adjusted in accordance with actual funding amounts allocated by the U.S. Department of Housing and Urban Development. 24 25 4. That the City Manager, with City Attorney concurrence, is authorized to execute agreements with the County of San Diego for the automatic renewal of the three-year 2g HOME Cooperative Agreement previously approved by the City Council. 27 5. That the Housing and Neighborhood Services Director is authorized to submit an Annual Plan for the 2014-2015 CDBG/HOME Program to the U.S. Department of Housing and 28 Urban Development based on the approved allocations as indicated in Exhibit 2. 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 ofthe City of Carlsbad on the 8*^ day of April, 2014, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Schumacher and Blackburn. None. ABSENT: None. MATT HALL, Mayor ATTEST: BARBARA ENGLESON, City Clerk .A:k^^^7oT EXHIBIT 2 2014-2015 CITY OF CARLSBAD CDBG/HOME PROGRAM LIST OF PROJECT PROPOSALS AND FUNDING RECOMMENDATIONS APP.NO. AGENCY/PROJECT REQUESTED AMOUNT FUNDING RECOMMENDATION 1 Boys and Girls Club Teen Scene Program $15,000 $5,000 2 Brother Benno Brother Benno Center $10,000 $5,000 3 Casa de Amparo/Food Program for Neglected and Abused Children $10,000 $5,000 4 Catholic Charities / La Posada de Guadalupe Homeless Shelter $10,000 $8,000 5 Community Resource Center Homeless Prevention and Inten/ention $7,500 $8,000 6 Interfaith Community Services Housing and General Assistance $20,000 $5,000 7 Meals on Wheels Meal Delivery Service $8,000 $8,000 8 North County Community Sen/ices Food Bank $8,089 $5,000 9 North County Lifeline Youth Counseling Program $39,000 0 10 The Angel's Depot Seniors Meal Program $10,000 $5,000 11 Women's Resource Center Alternatives to Abuse Shelter $15,000 $5,000 12 YMCA OZ Youth Shelter $5,000 $5,000 13 Community Housing Works Down Payment Assistance Program $152,500 0 14 North County Solutions for Change Employment Related Training $5,000 $5,000 15 North County Solutions for Change Solutions Farms Improvements $40,000 0 16 CSA San Diego County Fair Housing Program $15,000 $11,000 17 City of Carlsbad Housing Resen/e Fund $500,000 $307,000 NOTE: The amounts listed above may need to be adjusted based on the actual grant amount received by the City of Carlsbad. EXHIBIT 2 2014-2015 CITY OF CARLSBAD CDBG/HOME PROGRAM LIST OF PROJECT PROPOSALS AND FUNDING RECOMMENDATIONS APP.NO. AGENCY/PROJECT REQUESTED AMOUNT FUNDING RECOMMENDATION 1 Boys and Girls Club Teen Scene Program $15,000 $5,000 2 Brother Benno Brother Benno Center $10,000 $5,000 3 Casa de Amparo/Food Program for Neglected and Abused Children $10,000 $5,000 4 Catholic Charities / La Posada de Guadalupe Homeless Shelter $10,000 $8,000 5 Community Resource Center Homeless Prevention and Intervention $7,500 $8,000 6 Interfaith Community Services Housing and General Assistance $20,000 $5,000 7 Meals on Wheels Meal Delivery Service $8,000 $8,000 8 North County Community Services Food Bank $8,089 $5,000 9 North County Lifeline Youth Counseling Program $39,000 0 10 The Angel's Depot Seniors Meal Program $10,000 $5,000 11 Women's Resource Center Alternatives to Abuse Shelter $15,000 $5,000 12 YMCA OZ Youth Shelter $5,000 $5,000 13 Community Housing Works Down Payment Assistance Program $152,500 0 14 North County Solutions for Change Employment Related Training $5,000 $5,000 15 North County Solutions for Change Solutions Farms Improvements $40,000 0 16 CSA San Diego County Fair Housing Program $15,000 $11,000 17 City of Carlsbad Housing Reserve Fund $500,000 $307,000 NOTE: The amounts listed above may need to be adjusted based on the actual grant amount received by the City of Carlsbad.