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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 Page 2 of 4 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 Page 3 of 4 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 Page 4 of 4 execute a Memorandum of Understanding with the Los Angeles County Development Authority (“LACDA”).