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Home My WebLink About2016-11-29; City Council; ; Approve the 2017-2018 Community Development Block Grant (CDBG) Funding Plan and authorize the distribution of the Notice of Funding AvailabilityItem #8 November 29, 2016 Page 1 of 7 CA Review [}}j_ ® CITY COUNCIL Staff Report Meeting Date: To: From: Staff Contact: Subject: 11/29/2016 Mayor and City Council II Kevin Crawford, City Manage~L Courtney Pene, Management Analyst-Housing & Neighborhood Services courtney.pene@carlsbadca.gov or 760-434-2812 Approve the 2017-2018 Community Development Block Grant (CDBG) Funding Plan and authorize the distribution of the Notice of Funding Availability. Recommended Action Adopt a resolution approving the 2017-2018 Community Development Block Grant (CDBG) Funding Plan and authorizing the distribution of the Notice of Funding Availability. Executive Summary The total amount of CDBG funds from the U.S. Department of Housing & Urban Development estimated to be available for Carlsbad in FY 2017-2018 is $517,929. As described in the Funding Plan, approximately $103,585 of the estimated total CDBG funds available will be used for the city's program administration and $77,689 will be available for eligible public service activities. Approximately $168,327 will be available for public facilities, improvements and other eligible activities. Approximately $168,328 in CDBG funds will be available for selected projects that will provide affordable housing opportunities in Carlsbad. This Funding Plan coincides with the announcement of the 2017-2018 Notice of Funding Availability. Applications will be made available via the city's website on December 1, 2016 and are to be submitted no later than January 6, 2017. The primary objective of the CDBG program is to assist lower income persons/households. Each proposed project must meet at least one ofthe 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" (Attachment A to the Resolution). These objectives reflect the city's desire to develop a program which best meets the various needs of lower income Carlsbad residents. Discussion 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. Staff will present the Advisory Committee's funding recommendations to the City Council for consideration and final approval. Item #8 November 29, 2016 Page 2 of 7 The following residents were appointed in January of 2016 to serve two-year terms on the CDBG Advisory Committee, therefore these residents will continue to serve one more year. No new appointments are needed for the following: Housing Commission Northeast quadrant Shaunee Williams Julie Han 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 2018: Planning Commission Senior Commission Northwest quadrant Southeast quadrant Southwest quadrant Staff will return to the City Council in early spring 2017 to review the funding recommendations. Fiscal Analysis It is anticipated that the city will receive up to $517,929 in new CDBG entitlement funds during fiscal year 2017-2018. Federal regulations allow the city to use a maximum of 20 percent of the new allocation for administration costs and for fair housing services. CDBG is a fully funded program and there is no fiscal impact on the General Fund. Environmental Evaluation (CEQA) 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. Resolution approving the 2017-2018 Community Development Block Grant (CDBG) Funding Plan and authorizing the distribution of the Notice of Funding Availability. Item #8 November 29, 2016 Page 4 of 7 Attachment A CITY OF CARLSBAD CDBG PROGRAM 2017-2018 FUNDING PLAN Prepared October 2016 Housing & Neighborhood Services 1200 Carlsbad Village Drive Carlsbad, CA Item #8 November 29, 2016 Page 5 of 7 CITY OF CARLSBAD FV 2017-2018 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 resid!?ntial 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 of4 Item #8 November 29, 2016 Page 6 of 7 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 of4 Item #8 November 29, 2016 Page 7 of 7 CITY OF CARLSBAD FY 2017-2018 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY OF ESTIMATED FUNDS AVAILABLE FOR FY 2017-2018 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($) $517,929 Program administration/fair housing (maximum 20 percent of new grant) Total Available Funds (Remainder of page intentionally left blank) 4 of4 Amount $77,689 $168,328 $168,327 $103,585 $517,929 FY 2017-2018 Community Development Block Grant Program Courtney Pene November 29, 2016 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 2017-2018 Public service (15 percent)$77,689 Program administration (20 percent)$103,585 Affordable housing $168,328 Facilities, improvements,and other eligible activities $168,327 Estimated total funding $517,929 5 Notice of Funding Availability •Public notice •December 1, 2016-applications available online •January 6, 2017-application deadline 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 2017-2018 Funding Plan •Authorize the distribution of the NOFA 9