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