Loading...
HomeMy WebLinkAboutItem 1b - Community Development Block Grant Funds (CDBG) for FY 2018-2019 DATE: January 16, 2018 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Pat Auriemmo, Senior Administrative Assistant SUBJECT: STATEMENT OF OBJECTIVES AND PROJECTS FOR USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) FUNDS FOR FISCAL YEAR 2018-19 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 amount of $300,984 in CDBG funds for Fiscal Year 2018-19. Based on this estimation, the proposed project summaries and budgets must be submitted to the CDC by February 1, 2018. It is recommended that the City Council approve the projects set forth in this report for FY 2018-19, which include the Home Improvement Program, Congregate Meals for seniors, the Information and Referral Services for older adults, and participation in the County’s Homeless Initiatives Programs. BACKGROUND For over 40 years, the City has been a participant in the Los Angeles Urban County’s Community Development Block Grant Program. 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 order to meet 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 ($45,147.60 for FY 2018-19) to be used for Public Service programs. Community Development Block Grant (“CDBG”) Funds January 16, 2018 Page 2 of 4 The balance of the annual funds ($255,836.40) must be directed towards projects that support and benefit low- and moderate-income families and individuals. Although not included in the current Statement of Objectives and Projects, it is important to note that the City is implementing two accessibility-related projects in the current Fiscal Year. These projects will utilize previously unspent carryover funds and will fund improvements in ADA-related accessibility and signage deficiencies throughout the City. DISCUSSION The total estimated allocation for FY 2018-19 is $300,984, which does not include carryover funds. The following table is a summary of the funding for the current FY 2017-18 projects, and for the recommended projects and funding for FY 2018-19: Projects Current FY 2017-18 Recommended FY 2018-19 Home Improvement Program $235,478.55 $235,836.40 Homeless Initiatives Programs $20,000 $20,000 Public Service Projects (15%) Congregate Meals for Seniors $24,640.54 $24,600 Info. & Referral Services for Seniors $20,443.91 $20,547.60 Totals $300,563 $300,984 The proposed FY 2018-19 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 250 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, modifications for property owners with special needs, and energy-efficiency improvements. The recommended level of funding for the Home Improvement Program for FY 2018-19 is $235,836.40. Of these funds, 20% ($47,167.28) is allowed to be used for administration of this program and will cover the cost of a consultant and staff time. It is anticipated that the City will assist a total of 12 income-qualified homeowners during the next fiscal year. Community Development Block Grant (“CDBG”) Funds January 16, 2018 Page 3 of 4 Los Angeles County Homeless Initiatives Last Fiscal Year, Los Angeles County offered participation in several new programs designed to address the needs of the County’s homeless population. The use of CDBG funds by participating cities has been approved for two programs: Rapid Re-Housing Match, and the Shelter Partnership. The Rapid Re-Housing Match is a project that awards funds to service providers; either by the Department of Health Services, or the Los Angeles Homeless Services Authority. Cities that participate in the funding of this project will have those funds directed to service providers in the service program area of the city. The Shelter Partnership is an agency that provides goods to over 240 shelters throughout Los Angeles County. Again, funds from the local jurisdictions are designated to be provided to nearby facilities. It is recommended that the City contribute to these programs to assist in regional efforts to combat homelessness. The programs each set a minimum participation rate of $10,000; therefore, it is recommended that a total of $20,000 be allocated to these new programs. It is important to note that should these programs not prove feasible, or if they do not benefit Arcadia to a reasonable extent, this recommended funding can be reallocated to the Home Improvement Program. Contributing funds for these programs will not impact the 15% public service limit. 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. In October of 2017, Congresswoman Judy Chu acknowledged Arcadia’s Senior Meals Program with the Congressional Recognition of Excellence Award. This is an ongoing program that provides senior citizens with a nutrition program featuring mid-day hot meals, Monday through Friday, at the Community Center. It is anticipated that approximately 20,000 meals will be served during the next Fiscal Year. The recommended funding is $24,600, which is a slight decrease of $40.64 from last year, and is 8.2% of the 15% allowed for public service projects. 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. With a proposed budget amount of $20,547.60 the current level of service can largely be maintained, which will serve approximately 700 clients during FY 2018-19. The proposed funding level is very similar to last year, and is 6.8% of the public service allowance. Community Development Block Grant (“CDBG”) Funds January 16, 2018 Page 4 of 4 FISCAL IMPACT All CDBG 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. The combined funding for the Public Service Projects is nearly identical to last year’s numbers, and this ensures that the recommended budgets will maintain current service levels. RECOMMENDATION It is recommended that the City Council approve the Statement of Objectives and Projects for use of Community Development Block Grant (“CDBG”) Funds for Fiscal Year 2018-19; and authorize and direct 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.