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HomeMy WebLinkAbout2014-05-20; City Council; 21600; Amendment to 2013-2014 Community Development Block Grant Program Action PlanCITY OF CARLSBAD - AGENDA BILL AB# 21,600 AMENDMENT TO THE 2013-2014 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ACTION PLAN DEPT. DIRECTOR CITY ATTORNEY f?1 MTG. 5/20/U AMENDMENT TO THE 2013-2014 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ACTION PLAN DEPT. DIRECTOR CITY ATTORNEY f?1 DEPT. CED AMENDMENT TO THE 2013-2014 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ACTION PLAN CITY MANAGER /t4^ RECOMMENDED ACTION: That the City Council adopt Resolution No. 2014-095 amending the 2013-2014 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 to benefit low income households. 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 previously allocated $454,000 in CDBG funds to Solutions for Change to allow them to enter into a partnership agreement with the developer of the proposed Encinas Creek Apartments. The partnership agreement would provide that a certain number of apartments would be made available to graduates of the Solutions University Program for homeless families in return for providing the grant funds to assist with predevelopment activities related to the project. Solutions for Change and the developer have thus far been unable to reach an agreement for various reasons. Due to the need for timely expenditure of the noted funds, some flexibility in the project description is necessary to allow Solutions to enter into the same type of partnership arrangement with another developer of affordable housing in Carlsbad. The proposed amendment would not preclude Solutions for Change from entering into an agreement with the developer of Encinas Creek Apartments; it would simply allow Solutions more flexibility and the ability to use the previously allocated funds on an alternate affordable housing development in Carlsbad if a more timely agreement can be negotiated with an alternate developer. The proposed amendment will allow Solutions for Change to enter into a partnership agreement with one or more affordable housing developers in Carlsbad if it meets the intent of the allocation as approved by the City Council, and provides for reserved units for Solutions University graduates in Carlsbad. Staff is continuing to recommend that any partnership agreement contain provisions that will require that a maximum of $20,000 in grant funding will be released for reimbursement of predevelopment expenses for each unit that is to be made available for Solutions University graduates and that those units will be available for a minimum of 20 years. DEPARTMENT CONTACT: Frank Boensch 760-434-2818 frankboensch@carlsbadca.sov FOR CITY CLERKS USE ONLY. X • COUNCIL ACTION: APPROVED X • CONTINUED TO DATE SPECIFIC • DENIED X • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • Page 2 STAFF RECOMMENDATION: Staff recommends that the City Council approve the attached resolution allowing for an amendment to the 2013-2014 CDBG Action Plan for the allocation of up to $454,000 to Solutions for Change for use on predevelopment expenses for their investment in affordable housing in Carlsbad for graduates of the Solutions University program. FISCAL IMPAa: The City of Carlsbad has CDBG funds available to allow for the recommended allocation of funds as described above. Use of these funds needs to be expedited to ensure that the City can meet federal expenditure requirements for the program. Noncompliance with those requirements may result in the loss of future federal funds. The CDBG Program has no fiscal impact on the General Fund as these grant funds are provided by the US Department of Housing and Urban Development. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code Section 21065, approval of the submittal of an amendment to the 2013- 2014 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. 2014-095 approving the submittal of an amendment to the 2013-2014 Action Plan to the U.S. Department of Housing and Urban Development and authorizing the execution of related documents. 1- 17 18 19 22 23 24 25 26 WHERAS, the City Council has taken all testimony into account. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows that: 1 RESOLUTION NO. 2014-095 ^ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, 3 CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN AMENDMENT TO THE 2013-2014 ACTION PLAN FOR THE CITY'S COMMUNITY 4 DEVELOPMENT BLOCK GRANT PROGRAM TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND ^ AUTHORIZING THE EXECUTION OF RELATED DOCUMENTS. 6 7 WHEREAS, the City must prepare an amendment to the 2013-2014 Action Plan to add 8 new projects to be undertaken that were not included as part ofthe original Action Plan; and 9 10 11 12 23 1. The above recitations are true and correct. 14 2. That the City Council approves the submittal of an amendment to the 2013-2014 Action Plan for the Community Development Block Grant Program to the U.S. " Department of Housing and Urban development to allow for the expenditure of $454,000 by Solutions for Change to partner with one or more developers of affordable housing in Carlsbad to provide housing for low income families graduating 20 from the Solutions University. 21 3. That for each unit restricted or reserved by the property owner for residency by a Solutions University graduate household for a minimum of 20 years, the City will release a maximum of $20,000 in Community Development Block Grant funds to Solutions for Change to reimburse the affordable housing developer for predevelopment expenses (including fees) up to the maximum allocation of $454,000, 27 upon the request by Solutions for Change; an alternate per unit subsidy amount may 28 1 be approved by the City Manager, if adequate justification is provided by Solutions for 2 Change and the alternate subsidy amount is deemed reasonable by the City Manager. 3 4. That the City Council approves submittal of an amendment to the 2013-2014 Action 4 ^ Plan that will also allow for the expenditure of $454,000 by Solutions for Change to g acquire property in the City of Carlsbad for affordable housing purposes as an 7 alternative to using the funds for the purpose of entering into a partnership 8 agreement as stated above. 9 5. That the City Manager is authorized to execute related documents for the purposes 10 stated above, subject to review as to form by the City Attorney, and the Administrative 11 ^2 Services Director is authorized to disburse said funds subject to the noted funding j3 agreements 14 PASSED AND ADOPTED at a regular meeting of the City Council of the City of 15 Carlsbad on the 20th day of May 2014, by the following vote, to wit AYES: Council Members Hall, Wood, Schumacher, Blackburn NOES: Council Member Packard. ABSENT: None. 16 17 18 19 20 21 22 23 24 MATT HALL, Mayor ATTEST: BAR^AflA/f NGLESON, Cit^Clerk 27 II '^^^^^^^ CITY OF CARLSBAD PUBLIC HEARING AND NOTICE OF PUBLIC REVIEW PERIOD FOR AMENDMENT TO 2013-2014 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ACTION PLAN THE PUBLIC IS HEREBY NOTIFIED THAT the City of Carlsbad has prepared an amendment to its 2013-2014 Community Development Block Grant (CDBG) Action Plan to allow for the expenditure of available funds as required by the U. S. Department 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, May 20, 2014. The City of Carlsbad 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 $454,000. 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 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 Carlsbad residents. The City is committed to contributing at least 70% ofthe 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 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) ofthe federal regulations forthe CDBG Program. Residents of Carlsbad are hereby notified that the City of Carlsbad's draft amendment to its 2013-2014 Annual Plan will be available for public review and comment from May 21, 2014 to June 21, 2014. Copies of the document will be available for review at the Carlsbad City Libraries (1250 Carlsbad Village 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 June 21, 2014 at the Housing and Neighborhood Services Department. Comments must be submitted to the attention of CDBG Coordinator, City of Carlsbad, Housing and Neighborhood Services Department, 1200 Carlsbad Village Drive, Carlsbad, CA 92008. Questions or Comments Call (760) 434-2818. PUBLISH: May 16, 2014 CITY OF CARLSBAD CITY COUNCIL 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 UT - North County Formerly known as the North County Times and which newspaper has been adjudicated as a newspaper 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 numbers 171349 & 172171, 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: May 16*, 2014 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Proof of Publication of CITY OF CARLSBAD PUBLIC HEARING AND NOTICE OF PUBLIC REVIEW PERIOD FOR AMENDMENT TO 2013-2014 COMMUNITY DEVELOPMENT ^ BLOCK GRANT PROGRAM ACTION PLAN THE PUBLIC IS HEREBY NOTIFIED THAT the City of Carlsbad has prepared an amendment to its 2013-2014 Communi- ty Development Block Grant (CDBG) Action Plan to allow for the expenditure of available funds 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, May 20, 2014. The City of Carlsbad 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 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 $454,000. As identified in the Annual Plan, the general policy of the City of Carisbad is to assist very tow and low-income groups as a first priority through the use of avollable Federal, State, and local resources. In addition to affordable housing strategies, the City has established other local obiectives 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 fu.nds received from HUD each year to assist low/moderate income persons throughout Carlsbad. It is also the intent of the City that rfo CDBG assisted proiect will result in the displacement of lowAnoderale income persons from their homes. However, if lovi/mocpf-ate income persons are displaced as a result of a CDBG funded project, the City will provide relo-cation assistance as required by Section 570.606(b) (2) of the fed-eral regulations for the CC3BG Program. Residents of Carlsbad are hereby notified that the City of Carlsbad's draft amendment to its 2013-2014 Annual Plan will be available for public review and comment from May 21, 2014 to June 21, 2014. Copies" of fhe document will be available for re- view at the Carlsbad City Libraries (1250 Carisbad Village Drive and 1775 Dove Lone), and the Housing and Neighborhood Services Department (1200 Carlsbad Village Drive). Written or verbal comments will be accepted until 5:00 pm on June 21, 2014 at the Housing and Neighlaorhood Services Depart-ment. Comments must be submitted to the attention of CDBG Coordinator, City of Carlsbad, Housing ond Neighborhood Serv-ices Department, 1200 Carlsbad Village Drive, Carlsbad, CA 92008. Questions or Comments Call (760) 434-2818. CITY OF CARLSBAD CITY COUNCIL pub: 5/16/14 Dated at Oceanside, California On This 16^ day May 2014 Jane Allshouse NORTH COUNTY TIMES Legal Advertising Amendment to 2013-2014 Community Development Block Grant Program Action Plan Community Development Block Grant (CDBG) Program •Requires Annual Action Plan to describe how funds will be used. •A Provides federal funds to benefit lower income households. •public hearing is required to amend the plan if substantial changes need to be made to previously approved plans. Solutions for Change Funding Allocation •$454,000 allocated to allow for partnership in the Encinas Creek Apartments. •Partnership agreement is needed to provide up to $20,000 for each apartment to be set aside for graduates of the Solutions University homeless prevention program. Amendment to 2013-2014 CDBG Annual Action Plan •Amendment to Action Plan would allow for flexibility to partner with other developers. •Maintains recommended maximum of $20,000 in funding for each unit to be set aside for Solutions. •Potential increase in subsidy amount with adequate justification and City Manager approval. Requested Actions •Accept public comments on the proposed amendment to the 2013-2014 Annual Action Plan. •Approve the amendment as stated in City Council Resolution No.2014-095. Amendment to 2013-2014 Community Development Block Grant Program Action Plan Optional Addition to Resolution That the City Council approves submittal of an amendment to the 2013-2014 Action Plan that will also allow for the expenditure of $454,000 by Solutions for Change to acquire property in the City of Carlsbad for affordable housing purposes as an alternative to using the funds for the purpose of entering into a partnership agreement as stated above.