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Home My WebLink About2015-12-01; City Council; 22156; Approval FY 2016-2017 Community Development Block Grant Funding PlanCITY OF CARLSBAD-AGENDA BILL 7 AB# 22 156 APPROVAL OF THE FY 2016-2017 COMMUNITY DEPT. DIRECTOR @_.,> MTG. 12/01/15 DEVELOPMENT BLOCK GRANT PROGRAM FUNDING CITY ATTORNEY f(r;c_ DEPT. CEO PLAN AND AUTHORIZING DISTRIBUTION OF THE CITY MANAGER ~ NOTICE OF FUNDING AVAILABILITY RECOMMENDED ACTION: Adopt Resolution No. 2015-301 , approving the 2016-2017 Community Development Block Grant (CDBG) Funding Plan and authorizing the distribution of the Notice of Funding Availability. ITEM EXPLANATION: The total amount of CDBG funds from the U.S. Department of Housing & Urban Development estimated to be available for Carlsbad in FY 2016-2017 is $511,394. Of the estimated total CDBG funds available, approximately $102,278 will be used for the city's program administration and $76,709 will be available for eligible public service activities. Approximately $166,203 will be available for public facilities, improvements and other eligible activities. Approximately $166,203 (figures have been rounded) in CDBG funds will be available for selected projects that will provide affordable housing opportunities in Carlsbad. 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 of the local housing and community development objectives. The national and local objectives for the program are outlined in the attached "CDBG Program Funding Plan" (Exhibit 2). These objectives reflect the city's desire to develop a program which best meets the various needs of lower income Carlsbad residents. Application Review Process No changes are proposed to the application review process as previously adopted by the City Council. CDBG Advisory Committee To facilitate the selection and funding of activities which best meet the objectives of the CDBG Program, a City Council appointed CDBG Advisory Committee will be responsible for interviewing applicants, evaluating applications, and developing recommendations for funding amounts. The Advisory Committee's funding recommendations will then be presented to the City Council for consideration and final approval. The following residents were appointed in January of 2015 to serve two-year terms on the CDBG Advisory Committee, therefore these residents will continue to serve one more year: Planning Commission Jeff Segall Senior Commission Northeast quadrant Southeast quadrant Southwest quadrant Kevin Min Shelly Sander Michele O'Reilly Fred Muir DEPARTMENT CONTACT Courtney Pene 760-434-2812 courtney.pene@carlsbadca.gov FOR CITY CLERKS USE ONLY. .ve(' COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC D DENIED D CONTINUED TO DATE UNKNOWN D CONTINUED D RETURNED TO STAFF D WITHDRAWN D OTHER-SEE MINUTES D AMENDED D Community Development Block Grant Dec. 1, 2015 Pagel At a future City Council meeting, staff will request that the Mayor appoint Advisory Committee Members to represent the following commissions and neighborhoods, with these two year appointments ending in June 2017: Housing Commission Northwest quadrant Recently, staff recommended that City Council raise the local grant funding threshold to $10,000 for public service grant funds. Organizations are aware of this potential policy change and are anticipated to modify their requests accordingly. Staff will return to the City Council in early spring 2016 to review the funding recommendations. FISCAL IMPACT: It is anticipated that the city will receive up to $511,394 in new CDBG entitlement funds during fiscal year 2016-2017. Federal regulations allow the city to use a maximum of 20 percent of the new allocation for administration costs. The 20 percent allocation will fully fund the city administrative costs so there is no fiscal impact on the General Fund. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code Section 21065, approval of a funding plan and request for proposal, 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. City Council Resolution No. 2015-301 approving the 2016-2017 CDBG Funding Plan and authorizing the distribution of the Notice of Funding Availability 2. 2016-2017 CDBG Funding Plan 3. 2016-2017 CDBG Program Notice of Funding Availability 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 RESOLUTION NO. 2015-301 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING THE 2016-2017 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDING PLAN AND AUTHORIZING THE DISTRIBUTION OF THE NOTICE OF FUNDING AVAILABILITY AND MODIFICATIONS TO THE APPLICATION REVIEW PROCESS. Exhibit 1 WHEREAS, the City of Carlsbad, California, is anticipating a new allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) for fiscal year 2016-2017; and WHEREAS, the City Council of the City of Carlsbad held a public hearing to obtain comments on the 2016-2017 CDBG Funding Plan and to consider approving the distribution of the Notice of Funding Availability for the 2016-2017 CDBG Program; 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 City Council approves the 2016-2017 CDBG Funding Plan, required 18 by federal regulations, for Carlsbad's CDBG Program. 19 3. That staff of the Housing and Neighborhood Services Department is 20 authorized to distribute the Notice of Funding Availability for the City of Carlsbad's 2016-2017 21 22 CDBG Program, and accept applications for funding and review and funding recommendations 23 by the CDBG Citizen Advisory Committee. 24 4. That the City Council intends to set a minimum grant amount of $10,000 25 wherever feasible and as appropriate for the CDBG funding. 26 II 27 II 28 3 1 PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council of the City 2 of Carlsbad on the 1st day of December 2015, by the following vote to wit: 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 AYES: Council Members Hall, Blackburn, Packard,, Wood, Schumacher. NOES: None. ABSENT: None. ATTEST: CITY OF CARLSBAD FY 2016-2017 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 Carlsbad. The programs must provide one or more of the following activities for adults: employment services, job training, and educational programs. Programs designed for elderly 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. 2 of 4 (p 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 of Carlsbad that meet HUD requirements regarding household incomes for that area. (Remainder of page intentionally left blank) 3 of 4 CITY OF CARLSBAD FY 2016-2017 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY OF ESTIMATED FUNDS AVAILABLE FOR FY 2016-2017 PROGRAM YEAR Source of Funds New Entitlement Grant Funds Available by Activity Public service (maximum of 15 percent of new grant) Affordable housing Public facilities, improvements/other Amount($) $511,394 Program administration/fair housing (maximum 20 percent of new grant) Total Available Funds *For clarity, the total figures listed have been rounded. 4 of 4 Amount($) $76,709 $166,203 $166,203 $102,278 $511,394' f'!-'. EXHIBIT 3 (.__City of Carlsbad FY 2016-2017 COMMUNITY DEVELOPMENT BLOCK GRANT NOTICE OF FUNDING AVAILABITY I REQUEST FOR PROPOSALS I. Introduction Funding for the federal Community Development Block Grant (CDBG) Program is authorized under Title I of the Housing and Community Development Act. The program provides grants on a formula basis to entitled cities and counties to develop viable urban communities through the provision of decent housing, a suitable living environment and by expanding economic opportunities for lower income persons. II. Program Development The City of Carlsbad is eligible to receive CDBG funds on an annual basis. In order for Carlsbad to receive the grants, a list of community development objectives must be developed along with an outline of proposed projects. The City of Carlsbad must also certify that it has followed an approved Consolidated Plan for Housing and Community Development and that not less than 70 percent of the CDBG funds will be used for activities that benefit low and moderate income persons. Low and moderate income guidelines are based upon household size and a chart is attached for your reference. Ill. Request for Proposals The total amount of CDBG funds from the U.S. Department of Housing & Urban Development estimated to be available for Carlsbad in FY 2016-2017 is $511,394. Of the estimated total CDBG funds available, approximately $102,278 will be used for the City's program administration and $76,709 will be available for eligible public service activities. Approximately $166,203 will be available for public facilities, improvements and other eligible activities. Approximately $166,203 (figures have been rounded) in CDBG funds will be available for selected projects that will provide affordable housing opportunities in Carlsbad. Organizations are strongly discouraged from applying for funds unless they are ready to implement the activity proposed for funding. A matching funds requirement will be applied to CDBG funded public facilities/improvement activities, and documentation showing use of matching funds will be required prior to distribution of CDBG funds for activities under that category. CDBG funding for amounts of $100,000 or more may be made in the form of a deferred, no interest loan, to be forgiven in twenty years if the facility remains in use for purposes as stated in the application. To develop a FY 2016-2017 CDBG program which meets the needs of the lower income population, Carlsbad requests assistance from members of the community. Citizen participation is critical to the success of the Carlsbad CDBG program. Therefore, we are encouraging all qualified nonprofit organizations to consider the needs of lower income persons within Carlsbad and submit an application for a proposed project or service. The Proposal Review Process for the FY 2016-2017 CDBG program is attached for your information. Per federal regulations, all CDBG funds may be used for, but are not limited to: public service activities, acquisition of real property, relocation and demolition, rehabilitation of residential and nonresidential structures, construction of public facilities and improvements and conversion of schools for eligible purposes. The types of activities that generally are not eligible for CDBG funding include: buildings for the general conduct of government, political activities, income payments, construction of new housing and other facilities offering 24-hour care. NATIONAL OBJECTIVES The City of Carlsbad is committed to expending CDBG funds to finance projects and services that provide direct benefit to lower income residents. Every project proposed for the CDBG program must address at least one of the three broad National Objectives for the program. The National Objectives are: 1. Provide direct benefit to lower income persons; 2. Aid in the prevention or elimination of slums or blight; and 3. Meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where no other financial resources are available to meet such needs. LOCAL OBJECTIVES In addition to meeting the National Objectives, every project proposed for CDBG funding must meet at least one of the local Community Development Objectives, which are: 1. Affordable Housing Provide direct benefit to lower income persons through the provision of additional 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 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 public service providers who meet the basic needs of lower income Carlsbad residents. Basic needs providers are defined as those that provide food, shelter, clothing, and in some cases, health care; Provide assistance to public service providers who offer counseling and self- improvement programs/activities for lower income Carlsbad residents; and, Provide assistance to 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 lower income adults living in Carlsbad. The programs must provide one or more of the following activities for adults: employment services, job training, and educational programs. Programs designed for elderly 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. It is the intent of the City of Carlsbad to only approve CDBG assisted projects that do not result in the displacement of lower income persons from their homes. Therefore, all persons submitting project proposals to the City should consider the displacement impact upon lower income households. IV. Submission of Request for Proposals All persons, organizations, agencies, etc. wishing to submit an application for funding consideration under the CDBG program must obtain a "Funding Proposal Application" from the City of Carlsbad Housing and Neighborhood Services Department. Interested persons may request a Funding Proposal Application by calling {760) 434-2812. Organizations that have not received CDBG funds from the City of Carlsbad within the last three years must attend an orientation meeting on December 3, 2015 at 4 P.M. Applications for funding will not be accepted from organizations that have not received CDBG funds from the City within the last three years if they do not have a representative attend the orientation meeting. TEN COPIES, UNSTAPLED and THREE HOLE PUNCHED, of each project proposal must be submitted to the attention of Courtney Pene prior to 5 P.M. on January 5, 2016 at the following address: CITY OF CARLSBAD HOUSING AND NEIGHBORHOOD SERVICES DEPARTMENT 1200 CARLSBAD VILLAGE DRIVE CARLSBAD, CA 92008 IV. Technical Assistance/Questions or Comments City staff is available to provide technical assistance in preparing applications and to answer questions regarding the application review process. Please contact City staff at (760) 434-2812 for information regarding technical assistance or if you have questions or comments on the CDBG program. FY 2016-2017 Community Development Block Grant Program Courtney Pene Dec. 1, 2015 FY 2016-2017 Community Development Block Grant Program Courtney Pene Dec. 1, 2015 CDBG Program •Community Development Block Grant –Serves the needs of lower income persons –Helps develop viable communities CDBG National Objectives •Provide benefits to lower income persons •Aid in the prevention or elimination of blight •Meet other community development urgent needs if no other funds are available 3 Local Objective Categories •Affordable housing •General services •Specialized services •City projects 4 Estimated Funding Availability CDBG activity Estimated FY 2016-2017 Public service (15 percent)$76,709 Program administration (20 percent)$102,278 Affordable housing $166,203 Facilities, improvements,and other eligible activities $166,203 Estimated total funding $511,394 5 Notice of Funding Availability •Public notice •NOFA, applications available online •January 5, 2016 6 Advisory Committee •Housing Commissioner •Senior Commissioner •Planning Commissioner •Northwest quadrant •Northeast quadrant •Southwest quadrant •Southeast quadrant 7 Application Review Process •Applications reviewed for eligibility •Eligible applications evaluated and scored •Applicants interviewed •Committee develops recommendations •Public hearing and Council approval of recommendations 8 Recommended Actions •Accept public comments •Approve the FY 2016-2017 Funding Plan •Authorize the distribution of the NOFA 9 CDBG Program •Community Development Block Grant –Serves the needs of lower income persons –Helps develop viable communities CDBG National Objectives •Provide benefits to lower income persons •Aid in the prevention or elimination of blight •Meet other community development urgent needs if no other funds are available 3 Local Objective Categories •Affordable housing •General services •Specialized services •City projects 4 Estimated Funding Availability CDBG activity Estimated FY 2016-2017 Public service (15 percent)$76,709 Program administration (20 percent)$102,278 Affordable housing $166,203 Facilities, improvements,and other eligible activities $166,203 Estimated total funding $511,394 5 Notice of Funding Availability •Public notice •NOFA, applications available online •January 5, 2016 6 Advisory Committee •Housing Commissioner •Senior Commissioner •Planning Commissioner •Northwest quadrant •Northeast quadrant •Southwest quadrant •Southeast quadrant 7 Application Review Process •Applications reviewed for eligibility •Eligible applications evaluated and scored •Applicants interviewed •Committee develops recommendations •Public hearing and Council approval of recommendations 8 Recommended Actions •Accept public comments •Approve the FY 2016-2017 Funding Plan •Authorize the distribution of the NOFA 9