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HomeMy WebLinkAbout2018-11-27; City Council; ; 2019-2020 Community Development Block Grant Funding Plan~ CITY COUNCIL \1!7 Staff Report Meeting Date: To: From: Staff Contact: 11/27/2018 Mayor and City Council Scott Chadwick, City Manager Courtney Pene, Management Analyst Courtney.Pene@carlsbadca.gov or 760-434-2812 CA Review ~ Subject: 2019-2020 Community Development Block Grant Funding Plan Recommended Action Hold a public hearing and adopt a resolution approving the 2019-2020 Community Development Block Grant (CDBG) Funding Plan and authorize the distribution of the Notice of Funding Availability (NOFA). Executive Summary The total amount of CDBG funds estimated to be available from the U.S. Department of Housing & Urban Development for Carlsbad in FY 2019-2020 is $568,606. As described in the Funding Plan (Attachment A to the Resolution), $85,290 will be available for eligible public service activities, approximately $184,798 for affordable housing opportunities in Carlsbad, and approximately $184,797 will be available for public facilities, improvements and other eligible activities. As indicated in the Funding Plan, a total of $113,721 will be available for program administration which includes funding for fair housing services. This Funding Plan coincides with the announcement of the 2019-2020 Notice of Funding Availability (Exhibit 2). Applications will be made available via the city's website on November 1, 2018 and are to be submitted for review no later than December 17, 2018. Federal regulations require an entitlement agency to hold a minimum of two public hearings per year to allow for public participation in the grant funding process. The City Council's public hearing will open up this process to the public, allow for additional input, and bring further awareness to the NOFA process. Discussion 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 CDBG 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. This is the time each year where the City Council has an opportunity to receive input from the public and make decisions as to whether or not there are any desired changes in funding policies, goals and/or objectives for the CDBG program. If the City Council desires to make changes to the funding policies, staff may be directed to make the appropriate revisions to the CDBG Funding Plan. In 2017, the City Council adopted a theme for 2018-2019 year to fund November 27, 2018 Item #10 Page 1 of 15 strictly homeless programs and services. Staff proposes to carry forward that designated theme which address the ongoing community concern for all homeless residents. This would also be the appropriate time to consider any changes in minimum funding amounts or limitations on use of funding for general administrative or non-program costs. A Citizen Advisory Committee assists the City Council in reviewing applications for the CDBG funding and makes recommendations as to which programs, projects or services to fund for 2019-2020 program year. Staff will return to the City Council in early spring 2019 to review the funding recommendations of the advisory committee. Advisory Committee A City Council appointed CDBG Advisory Committee will be responsible for interviewing applicants, evaluating applications, and developing recommendations for funding amounts. The Advisory Committee will facilitate the selection of activities to be funded, which best meet the objectives of the CDBG program and related city policies. Staff will present the Advisory Committee's funding recommendations to the City Council for consideration and final approval. The following residents were appointed in 2018 to serve two-year terms on the CDBG Advisory Committee, therefore these residents will continue to serve one more year. Committee Representation Housing Commission Northeast quadrant Appointment Joy Evans Steven Sobieraj Term Expiration June 2019 June 2019 At a future City Council meeting, staff will request the appointment of additional CDBG Advisory Committee members to represent the following commissions and neighborhoods, with these two-year appointments ending in June 2020: Committee Representation Appointment Term Expiration Northwest quadrant TBD June 2020 Southeast quadrant TBD June 2020 Southwest quadrant TBD June 2020 Planning Commission TBD June 2020 Senior Commission TBD June 2020 Fiscal Analysis Staff forecasts that for FY 2019-2020, the city will receive up to $568,606 in new CDBG entitlement funding. Federal regulations allow the city to utilize a maximum of 20 percent of the new allocation ($113,721) for administration costs and for fair housing services. CDBG is a fully funded Federal program and there is no fiscal impact on the General Fund. Next Steps Beginning November 28, 2018, organizations will be able to access the FY 2019-2020 NOFA on the city's website. Deadline for all applications is December 17, 2018. Public Notification November 27, 2018 Item #10 Page 2 of 15 In accordance with CDBG guidelines, this item required a 10-day public notice period. Staff published the notice of Public Hearing in the Friday, November 16, 2018 edition of the Coast news and on the City's website. 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. City Council Resolution 2. 2019-2020 Application November 27, 2018 Item #10 Page 3 of 15 RESOLUTION NO. 2018-198 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE 2019-2020 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDING PLAN AND AUTHORIZING THE DISTRIBUTION OF THE NOTICE OF FUNDING AVAILABLITY. Exhibit 1 WHEREAS, the City Council of the City of Carlsbad, California held a noticed public hearing to obtain comments on the 2019-2020 CDBG Funding Plan (Attachment A) and authorize the distribution of the Notice of Funding Availability (Exhibit 2); and, WHEREAS, the City of Carlsbad is anticipating a new allocation of CDBG funds from the U. S. Department of Housing and Urban Development (HUD) for fiscal year 2019-2020; and, WHEREAS, 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: /Ill Ill/ Ill/ Ill/ Ill/ Ill/ Ill/ 1. That the above recitations are true and correct. 2. That the City Council approves the 2019-2020 CDBG Funding Plan (Attachment A) for Carlsbad's CDBG program. 3. That the Community and Economic Development Director, or designee, is authorized to distribute the Notice of Funding Availability for the City of Carlsbad 2019-2020 CDBG program and accept applications for funding, and process them for review by the Citizen Advisory Committee. November 27, 2018 Item #10 Page 4 of 15 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 27th day of November, 2018, by the following vote, to wit: AYES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. None. BARBARA E (SEAL) November 27, 2018 Item #10 Page 5 of 15 CITY OF CARLSBAD FY 2019-2020 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: 2. 3. • 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. 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. 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 November 27, 2018 Item #10 Page 7 of 15 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 hou~ehold incomes for that area. (Remainder of page intentionally left blank) 3 of 4 November 27, 2018 Item #10 Page 8 of 15 CITY OF CARLSBAD FY 2019-2020 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY OF ESTIMATED FUNDS AVAILABLE FOR FY 2019-2020 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($) $568,606 Program administration/fair housing (maximum 20 percent of new grant) Total Available Funds (Remainder of page intentionally left blank) 4 of 4 Amount $85,290 $184,798 $184,797 $113,721 $568,606 November 27, 2018 Item #10 Page 9 of 15 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FY 2019-2020 FUNDING PROPOSAL APPLICATION ('city of Carlsbad The following information must be completed by each qualified nonprofit organization interested in being considered for CDBG funding. Please type or print clearly. Attach additional sheets or information as necessary. All information requested must be provided or the application will be considered incomplete and will not be further evaluated for funding consideration. The application must not exceed a total of fifteen {15) pages, please reference the Checklist of Required Documents. (Attachments D and E may also be required depending on the proposed project, but will not count towards the 15 page limit.) Ten copies, unstapled and three hold punched, of the completed application package, including appropriate attachments, must be submitted prior to 5 P.M. on December 28, 2018 to Courtney Pene, Housing and Neighborhood Services Department, 1200 Carlsbad Village Drive, Carlsbad, CA 92008. Electronic and faxed applications will NOT be accepted. Applicants may obtain a copy of this form in Microsoft Word format via internet email by contacting Courtney.Pene@carlsbadca.gov. Organizations that have not received CDBG funds from the City of Carlsbad within the last three years must attend an orientation meeting at the address above on December 4, 2018 at 6 p.m. Applications will only be accepted from organizations that have attended this or another orientation meeting on CDBG funds within the last five years. •THEME: Preference will be given to the applications which specifically address homeless programs and services for Carlsbad residents. FUNDING APPLICANT Name of Agency: Address: Federal DUNS Number: ____________________________ _ PROPOSED PROGRAM/PROJECT Title of Program/Project: Location of Program/Project: Contact Person: ____________ Telephone No.: ~--~-------- Email address: _____________ Requested Funding Amount: $ ______ _ Brief Description of Program/Project (Describe the work to be performed, including the activities to be undertaken or the services to be provided, the goals and objectives of the program/project, etc.): 1 Exhibit 2 November 27, 2018 Item #10 Page 10 of 15 I. ORGANIZATIONAL ABILITY/CAPACITY A. This agency is: • Nonprofit D Local public agency • Other (Please specify.) • • For-profit State public agency --------------- B. What is the purpose/mission of the agency? C. How long has this agency been in operation? Please include the date of incorporation? D. How long has this agency been providing the proposed program/project? E. Please submit an organizational chart for the agency as Attachment B. F. Please describe the agency's existing staff positions directly responsible for the proposed program/project and their qualifications and experience in implementing such a program/project. (Resumes may also be submitted as an optional Attachment C but not in lieu of a complete response.) G. Please indicate your agency's level of experience with the CDBG program. CDBG program: • No or little experience (up to 1 year of using CDBG funds} D Some experience (2 to 3 years of using CDBG funds) • Moderate experience (4 to 5 years of using CDBG funds) • Considerable experience (more than 5 years of using CDBG funds) 2 November 27, 2018 Item #10 Page 11 of 15 H. If you have received federal funds, including CDBG funds, in previous years, have program violation findings ever been made against your agency/organization? • No • Yes If yes, please explain nature of finding(s) and how finding(s) has been addressed by your organization. II. FINANCIAL CAPACITY/STABILITY A. Please complete Page 6 itemizing revenues and expenses (sources and amounts) for the proposed program or project in which CDBG funds would be used. Indicate how the requested CDBG funds would relate to the overall proposed budget. B. Did you receive any of the following sources of funding from the City of Carlsbad within the last two fiscal years (2016-2017 and 2017-2018) for the proposed program/project? Sources of Funding Yes No • CDBG • • Community Activities (or other General Fund monies) • If yes, please indicate amount and status of previously awarded funds (fully expended, funds remaining, program/project discontinued, etc.). Amount Received CDBG funds Community Activities/Other C. Did you receive any federal funds, including CDBG funding from other cities, last year (July 2016 - June 2017)? • No Program Source Amount Received $ $ $ • Yes (Please list funds below) D. Will additional CDBG funds be required in future years for the project? 3 November 27, 2018 Item #10 Page 12 of 15 • No • Yes Ill. BENEFITS & BENEFICIARIES A. How accessible or convenient is the proposed program/project to Carlsbad residents? (Please be specific such as direct services to client's home, transportation provided to and from facility, or relation to public transportation.) B. What is the approximate percentage of your clients that have annual family incomes in each of the following ranges: (Percentages should add to 100%; Please see the 2014 Income Limits for the CDBG Program included in the Request for Proposals package.) ____ %of clients are at 30 percent or below of the area median income ____ %of clients are between 31 and 50 percent of the area median income ____ %of clients are between 51 and 80 percent of the area median income ____ %of clients are above 80 percent of the area median income C. Please describe how low and moderate income persons will benefit from the proposed program/project. Include the need or problem to be addressed in relation to Consolidated Plan housing and community development priorities, as well as the population to be served or the area to be benefited. (Reference Consolidated Plan Priorities) D. Please indicate. the number of clients benefiting from the proposed activity and the percentage that are Carlsbad residents. ___ Persons of which __ % are Carlsbad residents E. Does your agency focus its activities on populations with special needs? • No • Yes (Please specify) Please specify which special needs populations. (homeless individuals/families, persons with disabilities, persons with substance abuse problems, veterans, farm workers and day laborers, seniors, children, etc.) F. Does your organization charge recipients for the provided services? 4 November 27, 2018 Item #10 Page 13 of 15 • No • Yes {Please specify) -L--------- IV. IMPLEMENTATION OF ACTIVITY A. Please submit a schedule for implementation as Attachment C if this proposal is for construction, rehabilitation, property acquisition, and construction related activities, or a new public/community service program/project. Acquisition of property or construction related projects must also include an Attachment E for plans, scope of work, cost estimates, property listing, or other appropriate documents. THE AGENCY MUST ENSURE THE EXPENDITURE OF ALL CDBG FUNDS AWARDED WITHIN THE PROGRAM YEAR. I, the undersigned, do hereby attest that the above information is true and correct to the best of my knowledge. Signature Title Date NOTE: Applications must include a resolution from your organization's Board of Directors authorizing the person 1 signing above to submit funding applications and to enter into funding agreements if selected. Information below to be completed by Housing and Neighborhood Services Department staff. Date Received: Date Reviewed: Staff Person Completing Review: National Objective: Local Objective: Eligibility Determination: 5 November 27, 2018 Item #10 Page 14 of 15 2019-2020 PROJECT BUDGET Organization: ________________ Total organization budget$ _________ _ Program/Project name requesting funds: CDBG funds requested:~--------Total program/project budget:~-------- Note: Indicate with an asterisk(*) funds that are volunteer time or in-kind contribution. 1. Sources of funding for program/project: a. Funding requested from the City b. Other federal funds (if any) c. State or local government funds d. Donations and contributions e. Fees or memberships f. In-kind contributions/ Volunteer time g. Other funding h. TOTAL PROJECT FUNDING (project budget) 2. Uses of CDBG funds requested for the program/project: (1.a.) a. Wages and salaries b. Personnel benefits C. Materials and supplies d. Program expenses and evaluation e. Rent and utilities f. Insurance g. Mileage(_@ SSC/mile) h. Incentives and Special Events i. Indirect costs j. k. I. TOTAL REQUESTED FUNDING (same as 1.a.) 3. Percentage of project budget represented by CDBG request % 6 November 27, 2018 Item #10 Page 15 of 15 TO: DATE OF PUBLIC HEARING: SUBJECT: AFFIDAVIT OF MAILING NOTICE OF PUBLIC HEARING DATE NOTICES MAILED TO PROPERTY OWNERS: -------------NUMBER MAILED: ------- I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carlsbad and the foregoing is true and correct. CITY CLERK'S OFFICE (Date) SENT TO FOR PUBLICATION VIA E-MAIL TO: ~ Union Tribune D Coast News PUBLICATION DATE: Union Tribune -------------- Coast News --------------- I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carlsbad in the City Clerk's Office and the foregoing is true and correct. (Jl ·'".'NV 1 --~.-:»1 ~~~. Date: I I)! y /(i? ~J:~~-ji;_fLk-~Yl-,/ (Signature) Attachments: 1) Mailing Labels 2) Notice w/ attachments • NOTICE FOR PUBLIC REVIEW AND PUBLIC HEARING NOTICE IS HEREBY GIVEN, the City of Carlsbad will conduct a public hearing on November 27, 2018 at 6 p.m. at the Carlsbad Council Chamber, 1200 Carlsbad Village Drive, Carlsbad, California to discuss and obtain comments on the draft 2019-2020 Community Development Block Grant (CDBG) Funding Plan and release of the Notice of Funding Availability (NOFA). For the 2019-2020 CDBG Funding Plan, the estimated total amount of CDBG funds available to the City of Carlsbad is $568,606; an estimated $85,290 will be available for public service activities and up to $113,721 will be available for program administration. It is estimated that up to $184,798 will be available for affordable housing and up to $184,797 may be available for facility improvements or other eligible projects. The release of the associated Notice of Funding Availability (NOFA) is scheduled for November 28, 2018 and applications for funding are due before the close of business on December 28, 2018. The City of Carlsbad is eligible to receive funding, on an annual basis from 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. 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. Documentation showing use of those matching funds would be required prior to distribution of CDBG funds for activities under that category. CDBG funding for amounts of $100,000 or more will 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. The City of Carlsbad is committed to using CDBG funds to finance projects/services that provide direct benefit to lower income residents. It is also the City's intent to approve CDBG 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. If the City does approve a project that results in displacement of lower income households, the City will provide relocation assistance as required in Section 570.606(b)(2) of the federal regulations for the CDBG program. The draft 2019-2020 CDBG Funding Plan and the NOFA will be available for public review beginning on Friday, November 16, 2018, at the Housing & Neighborhood Services Department located at Carlsbad City Hall, 1200 Carlsbad Village Drive, the City Clerk's Office, 1200 Carlsbad Village Drive, and also available on the City's website at www.carlsbadca.gov. All interested persons are encouraged to submit written comments on the draft 2019-2020 CDBG Funding Plan and the NOFA, or before, the Tuesday, November 27, 2018, to the Housing & Neighborhood Services Department, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, or to Courtney Pene, Management Analyst (Contact information: Phone -760-434-2010 or email -courtney.pene@carlsbadca.gov) CASE NAME: 2019-2020 CDBG Funding Plan and Notice of Funding Availability PUBLISH: FRIDAY, NOVEMBER 16, 2018 CITY OF CARLSBAD FY 2019-2020 Community Development Block Grant Program Courtney Pene November 27, 2018 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 2019-2020 Public service (15 percent)$85,290 Program administration (20 percent)$113,721 Affordable housing $184,798 Facilities, improvements,and other eligible activities $184,797 Projected total funding $568,606 5 Notice of Funding Availability •Public notice •November 28, 2018-applications available online •December 17, 2018-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 2019-2020 Funding Plan •Authorize the distribution of the NOFA 9