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STAFF REPORT
Development Services Department
DATE: January 20, 2015
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director
By: Jim Kasama, Community Development Administrator
Beatrice Picon, CDBG Consultant
SUBJECT: STATEMENT OF OBJECTIVES AND PROJECTS FOR THE PLANNED
USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
FUNDS FOR FISCAL YEAR 2015 -16, AND A MEMORANDUM OF
UNDERSTANDING WITH THE LOS ANGELES COUNTY COMMUNITY
DEVELOPMENT COMMISSION
Recommendation: Approve
SUMMARY
The overall goal of the Community Development Block Grant (CDBG) program is to
provide assistance to low- and moderate - income families and individuals by enabling
them to participate in various local community activities and to eliminate blighted or
substandard housing conditions.
The Los Angeles County Community Development Commission (CDC) has advised that
the City of Arcadia will receive an estimated $303,336 in CDBG funds for the 2015 -16
Fiscal Year. The City's proposed project summaries and budgets must be submitted to
the CDC by February 2, 2015. It is recommended that the City Council approve the
projects set forth in this report for FY 2015 -16, which includes the continuation of the
successful and popular Home Improvement Program, Congregate Meals for Seniors,
and the Information and Referral Services Program for Seniors.
BACKGROUND
For over 40 years, the City has been a participant in the Los Angeles Urban County's
Community Development Block Grant Program (CDBG). 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 to
meeting the objectives of assisting low- and moderate - income families and improving
disabled accessibility. Federal regulations allow for a 15% maximum of a grantee's
anticipated annual allocation ($45,500 for FY 2015 -16) to be used for Public Service
programs. The balance of the annual funds ($257,836) must be directed towards
projects that support and benefit low- and moderate - income families and individuals.
FY 2015 -16 CDBG Funding
January 20, 2015
Page 2 of 3
The City has typically allocated the majority of its CDBG funds to the Home
Improvement Program.
DISCUSSION
The total estimated allocation for FY 2015 -16 is $303,336. The following table is a
summary of the funding for the current FY 2014 -15 projects, and for the recommended
projects and funding for FY 2015 -16:
Projects Current FY 2014 -15 Recommended FY 2015 -16
Home Improvement Program
Public Service Projects (15 %)
Congregate Meals for Seniors
Info. & Referral Services for Seniors
$257,800 (85 %)
$122,652 (Carry-over)
$21,868 (7.2 %)
$23,626 (7.8 %)
$257,836 (85 %)
$21,840 (7.2 %)
$23,660 (7.8 %)
Total $425,946 (100% + Carry-over) $303,336 (100 %)
The proposed FY 2015 -16 CDBG budget will fund the following program activities:
Home Improvement Program
Since 1974, the Home Improvement Program (HIP) has been comparatively the largest
of the City's CDBG programs; having provided assistance to more than 211 low- and
moderate - income homeowners. 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 and plumbing upgrades,
energy- efficiency improvements, and modifications for property owners with special
needs.
The recommended level of funding for the Home Improvement Program for FY 2015 -16
is $257,836. Of these funds, 20% ($51,567) is allowed to be used for administration of
this program and will cover the costs of a consultant and some staff time. It is
anticipated that the City will assist at least 14 income - qualified homeowners during the
next fiscal year.
Currently, there are 16 HIP projects underway, with applications for another four
projects pending. In FY 2013 -14, the Program was expanded to include condominiums
and townhomes in order to reach a greater portion of the community. This has brought
in a 25% increase in first -time applicants. The Program continues to have a positive
impact on Arcadia neighborhoods.
Congregate Meals for Senior Citizens — (Public Service Project)
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
FY 2015 -16 CDBG Funding
January 20, 2015
Page 3 of 3
goal is to maintain this level of service for the next Fiscal Year. The recommended
funding is $21,840 (7.2 %).
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 $23,660 (7.8 %) there is
no reduction in funding and the same level of service is expected to be provided during
the next Fiscal Year.
It is important to note that a major highlight of this Fiscal Year is the receipt of a 2014
Los Angeles County Congressional Recognition of Excellence Award for the Senior
Services Information and Referral Program. An award presentation by Congresswoman
Judy Chu to the City of Arcadia will be held in the near future.
FISCAL IMPACT
Funding levels for the Public Service Projects are recommended to remain essentially
the same to maintain current service levels. There is not a fiscal impact to the City's
General Fund 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 a Statement of Objectives and Projects
for the planned Use of Community Development Block Grant Funds for Fiscal Year
2015 -16; authorize and direct the City Manager to modify the project allocations should
amendments become necessary; and authorize and direct the City Manager to execute
a Memorandum of Understanding with the Los Angeles County Community
Development Commission.
Approved-
Dominic Lanza
City Manager