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HomeMy WebLinkAboutItem 1a: Statement of Objectives and Porjects for Use of Community Development Block Grant (CDBG) Funds for FY 2013-14 (2).DATE: January 15, 2013 TO: Mayor and City Council F Jason Kruckeberg, Assistant City Manager /Development Services Director l< By: Jim Kasama, Community Development Administrator STATEMENT OBJECTIVES AND PROJECTS COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR FISCAL , AUTHORIZE THE CITY MANAGER TO MODIFY THE PROJECT ALLOCATIONS SHOULD AMENDMENTS NECESSARY, BECOME AND EXECUTE A MEMORANDUM OF UNDERSTANDING A DEVELOPMENT i •. Recommended Action: Approve The primary objective of the CDBG program is to provide assistance to low/moderate- income families by enabling them to participate in various community activities, and improve their property and environs. CDBG aims to also improve accessibility for the disabled and eliminate blight or substandard conditions within the City. The Los Angeles County Community Development Commission (CDC) has advised that the City of Arcadia will receive approximately $284,034 in Community Development Block. Grant (CDBG) funds for Fiscal Year (FY) 2013 -14, which is the same allocation as FY 2012 -13. Proposed costs and project summaries must be submitted to the County by February 1, 2013. It is recommended that the City Council approve the projects set forth in this report for FY 2013 -14, which include the Housing Rehabilitation program, congregate meals for seniors, and information and referral services for seniors. The City has been a participant in the Community Development Block Grant (CDBG) program since 1974. CDBG funds come from the U.S. Department of Housing and Urban Development (HUD) and are administered by" the Los Angeles County Community Development Commission (CDC) for many cities in the County, including 2013-2014 CDBG Funding January 15, 2013 Page 2 Arcadia, Use of funds is restricted in order to meet the objectives of assisting low- and moderate-income families and improving accessibility, Federal regulations allow a maximum of 15% of a grantee's aggregate funds 042,605 for FY 12-13) to be used for Public Service programs and a minimum of 70% ($198,824) of the total funds must be used for projects that support and benefit low- and moderate-income families. In the past, 10% of the total CDBG funds could be allocated for administrative costs-, however, due to the significant reduction in funding mandated last Fiscal Year, the CDC determined that it can no longer continue to allow that administrative allocation to the cities participating in the Los Angeles Urban County CDBG program. However, the CDC will continue to allow direct project administration costs to be allocated to the funding for each respective project. The following table is a summary of the funding for the current projects (FY 2012-13) and for the projects recommended for next year (FY 2013-14). Current Funding/ Projects Recommended Funding Housing Rehabilitation $241,429 (85%) Public Service Projects (max. 15%): Congregate Meals $18,187 (6.4%) Sr. Citizen Social Services $24,418 (8.6%) Administration $0 (0%) Total $284,034 (100%) The following are descriptions of the projects. Housina Rehabilitation The Housing Rehabilitation program is the largest of the City's CDBG programs, and has been an ongoing project for many years. The program provides a maximum grant of $15,000 to benefit low- and moderate-income homeowners by providing needed home improvements and repairs such as painting, roofing, electrical upgrades, handicap accessibility, removal of overgrown landscaping, energy-efficiency improvements, and correction of code deficiencies. The current funding for Housing Rehabilitation is the same as is recommended for FY 2013-14 ($241,429). Of these funds, 201% is allowed to be used for administration of this project and will cover a contractor and staff time. It is anticipated that the City will assist a total of 12 homeowners during the current Fiscal Year and the same number of homeowners for FY 2013-14. 2013-2014 CDBG Funding January 15, 2013 Page 3 Congregate Meals for Senior Citizens — (Public Service Protect) This program is one of two (2) public service projects funded for the current Fiscal Year which cumulatively cannot exceed a total of 15% of the total allocation. It is an ongoing program that provides senior citizens with a nutrition program that features hot, noon- time meals, Monday through Friday at the Community Center. For the current Fiscal Year, it is anticipated that almost 13,000 meals will be provided, and the goal is to maintain this level of service for the next Fiscal Year. The recommended funding is $18,187. Senior Citizen Social Services Information and Referrals — (Public Service Proiect) This program provides senior citizens with information that is essential for them to maintain independent and healthy lifestyles. Services include assistance with government benefits (e.g., Medicare/Medi-Cal and Social Security) housing assistance, transportation, legal assistance, in-home services, health services, and educational opportunities. It is projected that 1,300 clients will be served in the current Fiscal Year with a total funding allocation of $24,418, and the recommendation is to maintain this level of service for the coming Fiscal Year, FISCAL IMPACT The overall decrease in CDBG funding and the loss of administration funds in this current Fiscal Year had an impact in that administration funding had to be backfilled by the General Fund. However, these adjustments have been completed and there are no further decreases anticipated for FY 2013-14, and the funding levels for the program are recommended to remain the same. Approval will provide $284,034 in Grant Funds to complete proposed projects. RECOMMENDED ACTION Approve the Statement of Objectives and Projects for Use of Community Development Block Grant (CDBG) Funds for FY 2013-2014; authorize the City Manager to modify the project allocations should amendments become necessary; and execute a memorandum of understanding with the Los Angeles County Community Development Commission. Approv Dominic Lazz`ae o� City Manager