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Home My WebLink AboutItem 1a - Fiscal Year 2014-15 Community Development Block GrantGgLIFOk.Vr�':,�r 3 Io< A1 5, [ 5, 1903 STAFF REPORT Development Services Department DATE: January 21, 2014 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director By: Jim Kasama, Community Development Administrator Prepared By: Beatrice Picon, CDBG Consultant SUBJECT: STATEMENT OF OBJECTIVES AND PROJECTS FOR USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR FISCAL YEAR 2014 -15; 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 Recommended Action: Approve SUMMARY The primary objective of the Community Development Block Grant (CDBG) program is to provide assistance to low- and moderate - income families by enabling them to participate in various local community activities, improve their property, and eliminate blighted or substandard housing conditions. The Los Angeles County Community Development Commission (CDC) has advised that the City of Arcadia will receive approximately $303,294 in CDBG funds for the 2014 -15 Fiscal Year (FY 2014 -15). In addition, there is $122,652 of carry -over funds from prior program years. The total CDBG allocation for FY 2014 -15 will be $425,946. The proposed project summaries and budgets must be submitted to the CDC by January 31, 2014. It is recommended that the City Council approve the projects set forth in this report for FY 2014 -15, which include the Home Improvement Program, Congregate Meals for Seniors, and Information and Referral Services for Seniors. DISCUSSION The City has been a participant in the Los Angeles Urban County's Community Development Block Grant Program (CDBG) since 1974. The 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 participating cities in the County, including Arcadia. Use of these funds is restricted in Approve Statement of Objectives for 2014 -15 CDBG Funding January 21, 2014 Page 2 of 3 order to meet the objectives of assisting low- and moderate - income families and improving disabled accessibility. Federal regulations allow for a maximum of 15% of a grantee's anticipated annual allocation ($45,494 for FY 2014 -15) to be used for Public Service programs. The balance of the annual funds ($257,800) must go towards projects that support and benefit low- and moderate - income families. For FY 2014 -15, the total amount of CDBG funding will be $425,946. This consists of $303,294 of FY 2014 -15 funds and $122,652 of carry -over funds from prior program years. The carry -over funds are comprised of $35,222 of additional funding from HUD based on poverty level and overcrowded - housing data from the 2010 American County Survey, and $87,430 of HIP funding that was unspent during the four previous program years. The following table is a summary of the funding for the current FY 2013 -14 projects, and for the recommended projects and funding for FY 2014 -15: Projects Current FY 2013 -14 Recommended FY 2014 -15 Home Improvement Program $262,289 (85 %) Public Service Projects (15 %) Congregate Meals for Seniors $21,868 (6.4 %) Info. & Referral Services for Seniors $24,418 (8.6 %) $257,800 (85 %) $122,652 (Carry -over) $21,868 (7.2 %) $23,626 (7.8 %) Total $308,575 (100 %) $425,946 (100% + Carry -over) The proposed FY 2014 -15 CDBG budget will fund the following activities: Home Improvement Program Since its inception, the Home Improvement Program (HIP) has been the largest of the City's CDBG programs; having provided assistance to more than 200 low- and moderate - income homeowners. The HIP provides a maximum grant of $15,000 to benefit homeowners by providing needed home improvements and repairs such as painting, roofing, electrical and plumbing upgrades, modifications for property owners with special needs, energy- efficiency improvements, and correction of code deficiencies. The recommended level of funding for the FY 2014 -15 HIP is $257,800 from the FY 2014 -15 CDBG allocation, plus $122,652 of carry -over funds for a total allocation of $380,452. Of these funds, 20% ($76,090) is allowed to be used for administration of this program and will cover the cost of a consultant and staff time. With the carry -over funds, it is anticipated that a total of 20 homeowners will be assisted during FY 2014 -15, which is approximately six (6) more projects than the service level established for the current Fiscal Year 2013 -2014. During FY 2014 -15, a portion of the HIP funds may be reallocated to create a multiple - family rehabilitation program to upgrade and improve existing rental housing complexes with needed improvements and repairs such as, painting, roofing, electrical and plumbing upgrades, modifications for tenants with special needs, energy- efficiency improvements, and correction of code deficiencies. Participating landlords will be Approve Statement of Objectives for 2014 -15 CDBG Funding January 21, 2014 Page 3 of 3 required to meet federal regulations to provide at least 51% of the units to low- and moderate - income tenants at specified rental rates for an established period of time. Conareaate Meals for Senior Citizens — (Public Service Proiect 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 annual CDBG allocation. It is an ongoing program that provides senior citizens with a nutrition program featuring mid -day hot meals, Monday through Friday, at the Community Center. For the current Fiscal Year, it is anticipated that approximately 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 $21,868. Information and Referral Services for Senior Citizens — (Public Service Project) The Information and Referral Services 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 1,100 clients will be served in the current Fiscal Year. With a proposed budget amount of $23,626, which is a slight reduction in funding, the same level of service is expected to be provided during the next Fiscal Year by reducing what is spent for printing and supplies. FISCAL IMPACT Approval will provide $425,946 in CDBG funds for the proposed projects. There is not a direct fiscal impact to the City to implement CDBG projects as all funding comes from HUD. However, CDBG project appropriations are included in the operating budget and are subject to City Council approval prior to the expenditures. RECOMMENDATION It is recommended that the City Council approve the Statement of Objectives and Projects for Use of Community Development Block Grant Funds for Fiscal Year 2014- 15; 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. Dominic Lazzareftd City Manager