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HomeMy WebLinkAboutItem 09a - Statement of Objective and Use of Community Development Block Grant ("CDBG") Funds DATE: January 15, 2019 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Patricia Auriemmo, Senior Administrative Assistant SUBJECT: STATEMENT OF OBJECTIVES AND PROJECTS FOR USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) FUNDS FOR FISCAL YEAR 2019-20 Recommendation: Approve SUMMARY The overall goal of the Community Development Block Grant (“CDBG”) program is to assist 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 $327,683 in CDBG funds for Fiscal Year 2019-20. Proposed project summaries and budgets based on this estimation must be submitted to the CDC by February 1, 2019. It is recommended that the City Council approve the projects set forth in this report for FY 2019-20, 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 ($49,152 for FY 2019-20) to be used for Public Service programs. The Statement of Objectives Community Development Block Grant (“CDBG”) Funds January 15, 2019 Page 2 of 4 balance of the annual funds ($278,531) 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 an accessibility-related project in the current Fiscal Year. The project will utilize previously unspent carryover funds , and will fund ADA-related improvements to Transit stops throughout the City. It will be presented as an Addendum to this Statement of Objectives once the scope is finalized. DISCUSSION The total estimated allocation for FY 2019-20 is $327,683, which does not include carryover funds. The following table is a summary of the funding for the current FY 2018- 19 projects, and for the recommended projects and funding for FY 2019-20: Projects Current FY 2018-19 Recommended FY 2019-20 Home Improvement Program $235,836.40 $238,531 Homeless Initiatives Programs $20,000 $40,000 Public Service Projects (15%) Congregate Meals for Seniors $24,600.00 $28,604 Info. & Referral Services for Seniors $20,547.60 $20,548 Totals $300,984.00 $327,683 The proposed FY 2019-20 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 500 low- and moderate-income homeowners. Currently, the Program provides a maximum grant of $15,000 to benefit income-qualified homeowners by providing needed home improvements and repairs such as painting, roofing, specific modifications for property owners with special needs, and energy-efficiency improvements. The grant amount was last increased in 2010, raising the maximum amount from $12,000 to $15,000. Due to increases in the cost of construction, labor, and materials since 2010, staff recommends increasing the maximum grant amount to $20,000 per grant for single-family dwelling units, and from $10,000 to $15,000 per grant for townhomes and condominiums. The recommended level of funding for the Home Improvement Program for FY 2019-20 is $238,531. Of these funds, 20% ($47,706) is allowed to be used for administration of this program and will cover the cost of a consultant and staff time. Statement of Objectives Community Development Block Grant (“CDBG”) Funds January 15, 2019 Page 3 of 4 It is anticipated that the City will assist a total of 10-12 income-qualified homeowners during the next Fiscal Year. Los Angeles County Homeless Initiatives In Fiscal Year 17-18, 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 loc al jurisdictions are provided to nearby facilities. In past years, the City has contributed $20,000 annually to these two homeless initiatives: $10,000 to Rapid Re-Housing and $10,000 to Shelter Partnership. Due to available unallocated funds in Fiscal Year 18-19, a one-time $40,000 additional contribution was made by Amendment, for a total allotment of $60,000 ($30,000 to each program). As there is funding available for Fiscal Year 19-20, it is recommended that a total of $40,000 be allocated to the homeless initiative programs. 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. 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 $28,604, which is a slight increase from last year, and is 58% 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 $20,548 the current level of service can largely be maintained, which will serve approximately 700 clients during FY 2019-20. The proposed funding level is very similar to last year, and is 42% of the public service allowance. Statement of Objectives Community Development Block Grant (“CDBG”) Funds January 15, 2019 Page 4 of 4 FISCAL IMPACT All CDBG funding comes from HUD. However, CDBG project appropriations are included in the City’s 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 2019- 20; 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.