HomeMy WebLinkAboutItem 10a - Community Development Block Grant Program
DATE: January 18, 2022
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
Tim Schwehr, Economic Development Manager
By: Janessa Kalanjian, Administrative Assistant
SUBJECT: STATEMENT OF OBJECTIVES AND PROJECTS FOR USE OF
COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) FUNDS FOR
FISCAL YEAR 2022-23
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 Development Authority
(“LACDA”) has advised that the City of Arcadia will receive an estimated $336,589 in
CDBG funds for Fiscal Year 2022-23, consisting of $299,617 in new funding and $36,972
in carry-over funds from the prior fiscal year. Following City Council approval, the
proposed project summaries and budgets must be submitted to the LACDA.
It is recommended that the City Council approve the projects set forth in this report for
Fiscal Year 2022-23, which include the Home Improvement Program, Congregate Meals
for Seniors Program, and the Information and Referral Services for Seniors Program.
BACKGROUND
Since 1974, 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 Development Authority (“LACDA”) 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 20% maximum of a grantee’s anticipated annual allocation
to be used for Public Service programs. The balance of the annual funds must be directed
towards projects that support and benefit low- and moderate-income families and
individuals or the homeless.
Community Development Block Grant (“CDBG”) Funds
January 18, 2022
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DISCUSSION
The total estimated allocation for Fiscal Year 2022-23 is $299,617. Additionally, there is
an unspent balance of $36,972 from the prior fiscal year which is proposed to be utilized
in Fiscal Year 2022-23 for a total budget amount of $336,589. The following table is a
summary of the funding for the current Fiscal Year 2021-22 projects, and for the
recommended projects and funding for Fiscal Year 2022-23:
Projects Current FY 2021-22 Proposed FY2022-23
Home Improvement Program $242,457 $269,271
Public Service Projects
Congregate Meals for Seniors $40,067 $46,770
Info. & Referral Services for Seniors $20,548 $20,548
Totals $303,072 $336,589
The proposed Fiscal Year 2022-23 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 HIP provides a maximum grant of $20,000
for single-family homes and $15,000 for condominiums 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. As a condition of the program, participants are expected to keep
the property for at least three years and are required to sign an agreement to reimburse
the City for the entire grant amount should the property be sold, or if the title is transferred
within the three-year period. This agreement is recorded on the property deed and the
homeowner is required to pay back the full grant amount to the City prior to closing
escrow. The HIP has proven to be a positive and successful program in improving and
maintaining aging building stock throughout the City.
On average, approximately ten income-qualified homeowners in Arcadia receive grants
each year through this program. For the current fiscal year, the City is on pace to issue
a total of nine home improvement grants consisting of grants for seven single-family
homes and two owner-occupied condominiums. The recommended level of funding for
the Home Improvement Program for Fiscal Year 2022-23 is $269,271. Of these funds,
20% ($53,854) 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 this funding will allow the City to
assist approximately 10 income-qualified homeowners during the next fiscal year. Interest
in the program has risen substantially in the past year, as enhanced outreach has led to
more awareness of the program among residents in need of assistance.
Community Development Block Grant (“CDBG”) Funds
January 18, 2022
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Congregate Meals for Senior Citizens – (Public Service Project)
This Program is one of two public service projects funded for the current Fiscal Year,
which cumulatively cannot exceed a total of 20% 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. The proposed
funding of this project for Fiscal Year 2022-23 is $46,770. It is anticipated that
approximately 20,500 meals will be served during the next Fiscal Year. In the event
adjustments to this program become necessary due to changes in COVID-19 health
restrictions, any unspent funds will be carried-over for use in Fiscal Year 2023-24.
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 maintaining 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 of $20,548, the current level of
service can be maintained, which will serve approximately 700 clients during Fiscal Year
2022-23. In the event adjustments to this program become necessary due to changes in
COVID-19 health restrictions, any unspent funds will be carried-over for use in Fiscal Year
2023-24.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA per Section 15061(b)(3) of the
CEQA Guidelines.
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 funding amount is similar to prior years and will maintain existing service levels for
each of the City’s three on-going CDBG funded programs.
RECOMMENDATION
It is recommended the City Council determine that this action does not constitute a project
and is therefore exempt under the California Environmental Quality Act (“CEQA”);
approve the Statement of Objectives and Projects for use of Community Development
Block Grant (“CDBG”) Funds for Fiscal Year 2022-23; and authorize and direct the City
Manager to modify the project allocations should amendments become necessary, and
Community Development Block Grant (“CDBG”) Funds
January 18, 2022
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execute a Memorandum of Understanding with the Los Angeles County Development
Authority (“LACDA”).