HomeMy WebLinkAboutItem 08b - Community Development Block Grant (CDBG) Funds
DATE: January 16, 2024
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
Jeramie Brogan, Management Analyst
SUBJECT: RESOLUTION NO. 7540 AUTHORIZING THE ALLOCATION OF
COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) FUNDS FOR
FISCAL YEAR 2024-25, AND APPROVING A STATEMENT OF
OBJECTIVES AND PROJECTS FOR USE OF CDBG FUNDS
CEQA: Not a Project
Recommendation: Adopt and Approve
SUMMARY
In January of each year, the City is required to hold a public hearing and approve a
Statement of Objectives and Projects for use of Community Development Block Grant
(“CDBG”) funds for the next fiscal year. Following City Council approval, the approved
project summaries and budgets are submitted to the Los Angeles County Development
Authority (“LACDA”) for their final review and coordination with the U.S. Department of
Housing and Urban Development (“HUD”) on disbursement of funds. For Fiscal Year
2024-25, LACDA has advised that the City will have an estimated total allocation of
$425,200.65 in CDBG funds available for use.
It is recommended that the City Council adopt Resolution No. 7540 authorizing the
allocation of Community Development Block Grant (“CDBG”) funds for Fiscal Year 2024-
25 and approving the projects set forth in this report for Fiscal Year 2024-25, which
include continuation of the Home Improvement Program, Congregate Meals for Senior
Citizens, and Information and Referral Services for Senior Citizens.
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. Arcadia’s use of these funds is restricted to meet the objectives
of assisting low- and moderate-income families and individuals or improving disability
access. Federal regulations allow for a 15% maximum of a grantee’s anticipated annual
Resolution No. 7540 - Community Development Block Grant (“CDBG”) Funds
January 16, 2024
Page 2 of 5
allocation can be used for public service programs (decreased from 20% in previous
years). The balance of the annual funds must be directed towards projects that directly
support and benefit low- and moderate-income families and individuals or disabled
community members.
For this upcoming Fiscal Year, it is recommended that unspent carryover CDBG funds in
the amount of $133,523.65 (“unallocated funds”) are directed to the City’s existing Home
Improvement Program, while other options for the use of these unallocated funds are
considered. Some potential options for the use of funds include implementing an
accessibility-related project (consistent with previous years) or a multifamily rehabilitation
pilot program. If a replacement project is considered, it will be presented to the City
Council at a subsequent meeting.
DISCUSSION
For Fiscal Year 2024-25, the City will receive an estimated allocation of $291,677 in new
CDBG funding. The City also has an existing unspent balance of $133,523.65 in CDBG
funds from prior years, proposed to be utilized in 2024-25 for a total of $425,200.65 in
available funding. The following table is a summary of the projects and funding amounts
approved for Fiscal Year 2023-24, and the recommended projects and funding amounts
for Fiscal Year 2024-25:
Projects Current FY 2023-24 Proposed FY 2024-25
Home Improvement Program $303,517 $381,449.65
Public Service Projects
Congregate Meals for Seniors $38,423 $23,751
Info. & Referral Services for Seniors $20,550 $20,000
Totals $362,490 $425,200.65
More details on each CDBG project activity proposed for Fiscal Year 2024-25 are
provided below. In addition to the proposed use of unallocated funds for the upcoming
Fiscal Year, a change to the Home Improvement Program guidelines to increase the
maximum grant award amount per eligible household is also recommended, explained in
further detail below.
Home Improvement Program
Since 1974, the Home Improvement Program (“HIP”) has been comparatively the largest
of the City’s CDBG programs, having assisted more than 500 low- and moderate-income
homeowners in Arcadia. The current maximum grant amount is $20,000 for single-family
Resolution No. 7540 - Community Development Block Grant (“CDBG”) Funds
January 16, 2024
Page 3 of 5
homes and $15,000 for condominiums. Grants benefit income-qualified homeowners by
providing needed home improvements and repairs, including painting, roofing, new
windows, plumbing and HVAC improvements, energy-efficiency upgrades, and disabled
accessibility modifications. Each year, approximately 10 to 15 income-qualified
homeowners in Arcadia receive grants through this program. Due to increases in the cost
of construction, labor, and materials over the past several years, it is recommended to
increase the maximum award per grant. For single-family dwelling units, it is
recommended to increase the maximum from $20,000 to $25,000, per grant; and for
townhomes and condominiums, from $15,000 to $20,000 per grant.
The recommended level of funding for the Home Improvement Program for Fiscal Year
2024-25 is $381,449.65. Of these funds, 20% ($76,289.93) 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 approximately 12 to 15 income-qualified homeowners
during Fiscal Year 2024-25.
To participate in the Home Improvement Program, a property owner is required to have
owned and resided in their home for a minimum of five years prior to receiving a grant.
The combined household income of all residents at the property may not exceed 80% of
the area median income for Los Angeles County, which is calculated as combined annual
earned income plus up to 10% of all financial assets. The current program income limits
for Fiscal Year 2023-24 are listed below.
HIP INCOME LIMITS FOR FY 2023-24
HOUSEHOLD
MAXIMUM INCOME*
1 $70,650
2 $80,750
3 $90,850
4 $100,900
5 $109,000
6 $117,050
7 $125,150
8 $133,200
*80% median household income for L.A. County
A property owner also may not own any additional real estate property besides their
residence. As a condition of the program, homeowners authorize a Grant Memorandum
of Agreement recorded on their property deed, requiring them to reimburse the City for
the entire grant amount if they sell their property, or if the title is transferred within a five-
year period following completion of their HIP project. Additional information on program
eligibility requirements and processes can be found in the HIP Guidelines and
Procedures, included in Attachment “B” to this report.
Resolution No. 7540 - Community Development Block Grant (“CDBG”) Funds
January 16, 2024
Page 4 of 5
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 15% of the annual CDBG budget. This is an ongoing
program that provides senior citizens with a nutrition program featuring midday meals,
Monday through Friday, at the Community Center. The proposed funding of this project
for Fiscal Year 2024-25 is $23,751. It is anticipated that approximately 20,000 meals will
be served during the next Fiscal Year. Further information on the Senior Meals program
can be found through Attachment “C”.
Information and Referral Services for Senior Citizens – (Public Service Project)
The Information and Referral Services program provides seniors with information that is
essential for maintaining independent and healthy lifestyles. Offerings include essential
services and referrals such as Medicare/Medi-Cal assistance, legal assistance, health
services, transportation, social security, housing assistance, in-home services, and
educational opportunities. With a proposed budget of $20,000, the current level of service
can be maintained, which will serve approximately 700 clients during Fiscal Year 2024-
25. Additional details on the Information and Referral Services Program can be found in
Attachment “D”.
This item was noticed on December 21, 2023, and no public comments have been
received.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), as 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
A total of $425,200.65 is proposed to be expended during Fiscal Year 2024-25. 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. The funding amounts,
as proposed, will help maintain existing service levels for each of the City’s three ongoing
CDBG funded programs.
RECOMMENDATION
It is recommended the City Council determine that this action does not constitute a project
under the California Environmental Quality Act (“CEQA”); adopt Resolution No. 7540,
authorizing the allocation of Community Development Block Grant (“CDBG”) funds for
Fiscal Year 2024-25, and approving the Statement of Objectives and Projects for use of
Resolution No. 7540 - Community Development Block Grant (“CDBG”) Funds
January 16, 2024
Page 5 of 5
Community Development Block Grant (“CDBG”) Funds for Fiscal Year 2024-25; 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 Development Authority (“LACDA”).
Attachment “A”: Resolution No. 7540
Attachment “B”: HIP Guidelines & Procedures for Fiscal Year 2023-24
Attachment “C”: Congregate Meals for Senior Citizens Program Summary
Attachment “D”: Information & Referral Services for Seniors Program Summary
RESOLUTION NO. 7540
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, AUTHORIZING THE ALLO CATION OF COMMUNITY
DEVELOPEMTN BLOCK GRANT ("CDBG") FUNDS FOR FISCAL YEAR
2024-25, AND APPROVING A STATEMENT OF OBJECTIVES AND
PROJECTS FOR USE OF CDBG FUNDS
WHEREAS, the Community Development Block Grant ("CDBG") Program has
operated since 197 4 to provide local governments the resources to meet the needs of
persons of low-and moderate-income; and
WHEREAS, the City of Arcadia contracts with the Los Angeles County
Development Authority ("LACDA") for the disbursement of Community Development
Block Grant Funds, through the Small Cities Program; and
WHEREAS, the City of will receive an estimated total of $291,677 in Fiscal Year
2024-25 in Community Development Block Grant Funds and $133,523.65 in previous
year unallocated funds, for a total of $425,200.65; and
WHEREAS, the City Council has conducted a public hearing, with the required
prior noticing to provide the public an opportunity to comment on the programs.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS.
Section 1. The City Council approves the Community Development Block Grant
("CDBG") Program Budget for Fiscal Year 2024-25 and instructs staff to submit the
necessary documents and a copy of this Declaration to the Los Angeles County
Development Authority ("LACDA'').
Section 2. The City Council authorizes the City Manager to adjust the Program
budget as necessary throughout the Fiscal Year. This includes, but is not limited to,
1
Attachment "A"
City of Arcadia
HOME IMPROVEMENT PROGRAM
Guidelines and Procedures
FISCAL YEAR 2023-2024
EFFECTIVE 07/01/2023
City of Arcadia
Development Services Department
240 West Huntington Drive
PO Box 60021
Arcadia, CA 91066-6021
(626)574-5409
www.ArcadiaCA.gov
Attachment "B"
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H.I.P. Guidelines
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HHOOMMEE IIMMPPRROOVVEEMMEENNTT PPRROOGGRRAAMM
GGUUIIDDEELLIINNEESS
I. OBJECTIVE
The purpose of Arcadia’s Home Improvement Program (HIP) is to assist low to
moderate income homeowners with home improvements to their primary residence.
The homes must be located within residential zones and owner-occupied. An income
eligibility table is included as Attachment A.
II. TYPE OF ASSISTANCE
The City of Arcadia operates a Home Improvement Program (HIP) utilizing Community
Development Block Grant Funds (CDBG) though the Los Angeles County Community
Development Authority (LACDA) to provide eligible households with grants. The
Program provides maximum grants of $20,000 per single family home and $15,000
per condominium or townhouse. Exception: The cost of any required lead-based paint
and/or asbestos testing and clearance inspections for a project shall not be counted
towards the maximum grant amount.
III. ELIGIBILITY CRITERIA
A. Homeowner Eligibility Requirements
1. Household Income
Adjusted Gross annual household income may not exceed 80% of the
Los Angeles County Median income adjusted for family size as provided
by the U.S. Department of Housing and Urban Development (HUD). The
City will require documentation of both household size and household
income information to determine application eligibility.
2. Definition of Household: For households applying for the City of
Arcadia’s Home Improvement Program, all persons on title are
considered household members and all persons in residence are
considered household members for the purpose of determining income
eligibility.
3. Definition of Annual Household Income: For the purpose of
determining Program eligibility, annual income will include:
• Adjusted gross income.
• Cash income received from such sources as rents, Social Security
benefits, pensions, and periodic income from insurance policy
annuities.
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• Periodic cash benefits from public assistance and other
compensation, including AFDC, SSI, Worker’s Compensation, State
Disability Insurance, and unemployment benefits; and
• Interest earned on savings, checking, money market accounts and
all other assets/investments.
• Payments designated specifically for foster children or their non-
disposable income.
• Two percent (2%) of the value of all financial assets is included in
addition to the above income for purposes of determining “household
income”. For liquid assets, ten percent (10%) of the combined asset
value over $200,000 is included for purposes of determining
household income.
4. Annual Income does not include:
• Non-cash income such as food stamps or vouchers received for the
purpose of food or housing.
• Capital gains or losses.
• One-time unearned income such as scholarships and fellowship
grant, accident, health or casualty insurance proceeds, prizes or
gifts, inheritances; and
• Payments designated specifically for medical or other costs.
The City will make the final decision in situations where the classification
of income is disputed.
B. Property Eligibility Requirements
Following determination of homeowner eligibility, the owner must demonstrate
property eligibility. To be eligible to receive Program assistance, real property
will be evaluated and must meet each of the requirements set forth below:
1. Location and Type of Property
The property must be a single-family home, condominium, or townhouse
to be eligible for the Program. The Property must be owner-occupied and
located within the city boundaries of Arcadia. Participating properties
must be the primary residence of the participating property owner.
Owners of condominiums and townhomes will need to provide pre-
approval from their HOA of the approved improvements before work
begins. (Repairs are limited to the interior of each qualified unit. No
common areas or exterior repairs are eligible under the Home
Improvement Program).
2. Condition
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The single family units must be in need of exterior repairs to (i) correct
existing nonconforming development standards, (ii) correct existing
nonconforming local and/or state code requirements, (iii) correct existing
local and/or state code violations, (iv) protect the structural integrity of
the property, (v) refurbish exterior and/or eligible interior improvements
(necessary for health and safety), or (vi) aid the mobility of the physically
disabled and/or elderly.
All eligible improvements must be pre-approved by the City of Arcadia.
Submission of receipts, invoices and/or bills for work completed prior to
City approval/ inspection will be considered ineligible for reimbursement.
3. Ownership and Owner-Occupancy Requirements
The income eligible homeowner(s) must hold record fee simple title to
the property and must occupy the property as a primary residence. The
city will not approve homeowners listing their home for sale.
4. Restriction on Owning Additional Property
To be eligible for this program, homeowner(s) may not own any rental,
investment, or other real estate property besides their primary residence.
Exceptions to this participation limitation may be considered for
properties with emergency building and safety issues and/or code
compliance violations on a case-by-case basis, but only to fund
improvements that address the specific outstanding issue or violation.
5. Residency Requirement
Property owners applying for the Home Improvement Program are
required to have owned and occupied the residence for a minimum of
five (5) years prior to applying for the Home Improvement Program. The
purpose of this requirement is to ensure that property owners have
established permanent residency within the City prior to receiving a
grant.
6. Mortgage Status
Homeowner(s) cannot be delinquent on their mortgage or in foreclosure
as it pertains to the primary residence. Documentation listed in Section
IV.8 must be submitted for determining eligibility.
7. Previous Program Participation
Property owners can only participate in this program once every five
years and receive a maximum of two grants. First-time participants are
given priority over previous participants. Exceptions to these participation
limitations may be considered for properties with emergency building and
safety issues and/or code compliance violations on a case-by-case
basis, but only to fund improvements that address the specific
outstanding issue or violation
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H.I.P. Guidelines
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IV. APPLICATION PROCEDURES
Application materials for participation in the HIP program can be obtained from and
returned to the Development Services Department at City Hall, located at 240 West
Huntington Dr., Arcadia, CA 91007 or on the City’s website. The application must be
completed in its entirety and submitted to the location indicated in the guidelines.
When funding becomes available, staff will contact homeowners who have submitted
an HIP application and schedule interviews to determine program qualification. At the
interview appointment, the following documentation must be provided for
consideration:
1. Verification of personal income and assets which will include, but is not limited to
the applicant’s two most recent pay stubs, award letters from social
security/pension and recent federal income tax returns (if self-employed, up to 2
years of returns and profit and loss statements for the past 2 years)
2. Proof of ownership (Grant Deed, Trust and/or current Property Tax Bill)
3. Proof of residency (utility bills, car registration)
4. Bank/Financial statements for the past 3 months
5. Proof of current property insurance
6. Copy of current mortgage statement for subject property
7. Sign notification/acknowledgement of Lead Based Paint and Asbestos
8. Completed Real Estate Form indicating no additional investment properties
9. Approve Program Guidelines
Application approval is subject to funding availability, income eligibility and past
participation in the Program.
V. SELECTION OF HOMEOWNER(S)/SCREENING PROCESS
A. Applications will only be accepted from low to moderate income property
owners located within the City of Arcadia. Properties located within the
unincorporated Los Angeles County area are ineligible for this program. Those
out of the city limits will be referred to the Los Angeles County’s Program.
B. Eligible participants will be selected on a first-come, first-served basis, and the
availability of CDBG funds.
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C. Pre-qualification - Each application filed with the City shall be date stamped and
will be processed in the order received. Staff will review applications for
completeness and will verify property and income eligibility. Incomplete
applications will not be processed until all requested information is submitted by
a specified time. Staff will notify in writing all ineligible households.
The City requires all households participating in the Home Improvement
Program to meet specific income limits as determined by Housing Urban
Development (HUD), based upon household size. For reference, HUD
published income limits, according to household size, for Los Angeles County is
attached (Attachment A).
D. Annual income is the gross amount of income that is anticipated to be received
by all members of the household during the twelve months following the
effective date of determination, as well as reviewing the income from the
preceding year.
E. An applicant is considered ineligible, if:
1. The property is not located within the city boundaries and in the
designated residential zones.
2. The property is non-conforming, i.e., more than one structure on the
property is a dwelling unit.
3. The household income exceeds the income limit established by HUD.
4. The property is not the owner’s primary residence. (Rental properties are
ineligible).
5. The information on the application is found to be inaccurate or insufficient
to determine the household income for program eligibility.
F. Property owners can only participate in this program once every five years and
receive a maximum of two grants. First-time participants are given priority over
previous participants. Exceptions to these participation limitations may be
considered for properties with emergency building and safety issues and/or code
compliance violations on a case-by-case basis, but only to fund improvements
that address the specific outstanding issue or violation.
VI. METHOD OF CALCULATING ASSISTANCE
The amount of HIP Program funds provided to an eligible project shall be established
through the property inspection work write-up, cost estimate, and bidding results as
described below and shall not exceed $20,000 per participating household/property for
single-family dwellings, and $15,000 for townhomes and condos. Exception: The cost
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of any required lead-based paint and/or asbestos testing and clearance inspections for
a project shall not be counted towards the maximum grant amount.
A. Property Inspection Procedures
The City will conduct the initial, interim, and final property inspection for code
compliance, with the homeowner(s), or the owner's representative. The
inspection will include:
1. Interview with the homeowner(s), or owner's representative to identify
specific housing issues.
2. Walk through of property with a checklist, accomplished by the property
owner(s) identifying recommended and necessary improvements.
3. A summary list of repairs complied and approved by City staff with
recommendations from the homeowner(s).
4. Only when components of the scope of work is suspected to have lead
paint or asbestos issues, a certified LBP/asbestos inspector will be
utilized for any inspections involving the areas contaminated with LBP or
asbestos.
B. Preparation of Work Write-up and Cost Estimate
1. The City will be responsible to inspect property to identify violations of
health, safety, and building codes.
2. The City will prepare a detailed work write-up (specifications) that
addresses all violations of health, safety, and building codes, and
provides (for properties constructed before 1978) for testing and
abatement/removal of lead-based paint, limited asbestos testing (if
applicable) and identifies any other rehabilitation efforts to be conducted.
3. The city will file the completed deficiency list, work write-up and cost
estimate that notes dates of inspection, (and if needed) persons in
attendance at walk through and any special circumstances.
4. The City will obtain architectural design approval from Planning Services
for all exterior rehabilitation work prior to the contractor selection
process.
5. If the property is not suitable for rehabilitation and/or if the homeowner
discontinues the process, a termination/denial letter will be mailed to the
homeowner.
C. Contractor Selection Procedures
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1. Upon approval by the City, the homeowner will obtain a minimum of two
(2) bids (per LACDA’s program audit) from qualified contractors that are
licensed contractors that have not been placed on a debarment list by
HUD and are in good standing with the State of California’s Contractor
Licensing Board.
2. The homeowner’s selected bid from a qualified contractor will be
examined by the City and must be the lowest responsible bidder to be
awarded the contract.
3. More than one contractor/subcontractor can be selected for rehabilitation
work, depending upon the nature and scope of the rehabilitation work.
4. Contractors are responsible for obtaining and/or verifying architectural
design approval from Planning Services for all exterior rehabilitation work
(paint color, window material, mechanical equipment enclosures, etc.).
5. The lowest responsible contractor must have a valid city business
license, current and valid general liability, and workmen’s compensation
insurance (if applicable) and a current State of California contractor’s
license prior to receiving award of the contract. The Contractor will be
responsible for obtaining the necessary building permit(s) and ensuring
that permit(s) is/are finalized.
VII. CALCULATION OF SUBSIDY/COST REASONABLE REVIEW
The City will determine reasonable rehabilitation cost for work to be performed based
upon the scope of work. This cost shall be established by utilizing market data and
published construction cost guidelines. The city will review bids to determine cost
reasonableness and will ensure compliance with the Scope of Work.
VIII. ELIGIBLE COSTS
A. Eligible Hard Costs - Program funds are available for rehabilitation costs to
properties that either correct substandard conditions, correct violations of local
housing codes or address health and safety issues and are physically attached
to the property and permanent in nature. General repairs not corrective in
nature shall be given lower priority. Eligible repairs include, but are not limited to
the following:
1. Repairs that remedy existing nonconforming uses such as garage
conversions, additions, etc.
2. Exterior work to help preserve or protect structures such as painting,
roofing, trimming or removal of hazardous/dead trees,
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repair/replacement of screens/windows, doors, and door locks, structural
and/or foundation damage, repair of sidewalks and driveways, fencing.
3. Interior work to make a structure more livable and repair/replace/ restore
important parts such as cabinets, counters, plumbing, damaged flooring,
faulty or inadequate heating, damaged ceilings, water heaters, electrical
wiring and service, painting.
4. Fumigation and treatment of termites and pest control.
5. Testing/abatement of lead-based paint and asbestos hazards.
6. Weatherization and energy conservation items such as insulation,
caulking, weather stripping and new energy efficient windows and HVAC
system.
7. Modifications which aid the mobility of the elderly and physically disabled
such as shower units with seats, lever hardware, retrofitting toilets to
achieve adequate height, moving power points and light switches,
ramping reconstructing doorways, lowering sinks in kitchens and
bathroom.
8. Energy audits, if applicable.
9. Approved emergency repairs, such as plumbing, roofing and electrical.
10. Lead-based painting testing and clearance inspections
11. Asbestos testing and clearance inspections.
IX. INELIGIBLE COSTS
1. Repair, purchase, or installation of appliances/or structures that are
designed and manufactured to be freestanding and window air
conditioning units.
2. Recreational items such as barbecues, hot tubs/jacuzzi, swimming pools,
saunas, tennis courts.
3. Non-essential items such as security alarms and protection bars,
decorative items, window coverings, awnings, patios, decks, and storage
sheds/workshops, driveways, and landscaping. Repairs to garage
structures only are not allowed (must be linked with repairs to the home).
4. Other proposed improvements as determined ineligible by the City of
Arcadia and/or the LACDA.
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5. Regarding condos and townhomes, common areas such as windows,
walkways, certain electrical and plumbing repairs, exterior painting,
HVAC units and insulation.
X. GRANT DOCUMENT PREPARATION
A. Once the bid is awarded and the grant amount has been approved, the
participating Homeowner will be required to sign a Grant Memorandum
Agreement (Attachment B). The Community Development Administrator will
then approve and sign the Agreement.
B. The original signed document will then be forwarded to the Los Angeles
County’s Recorder’s Office for recording.
XI. CONSTRUCTION PROCESS
A. Upon contractor selection and full execution of the Grant Agreement by the
affected homeowner(s) (which shall list work as described in the bid
specifications), homeowner(s) must sign the Construction Contract. Once
signed by the homeowner(s) and the awarded contractor, a Notice to Proceed
will be issued by the City.
At that time, the Contractor will carry out the required work under the
supervision of staff. Work shall commence no later than thirty (30) days from
the date the last agreement is executed by the affected homeowner(s) and be
completed no more than ninety (90) days after the start date.
B. A building permit will be required for all projects that require a permit. A “Final
Inspection” will be required for these projects, prior to any payments being
made.
C. All awarded Contractors working with the Home Improvement Program will be
required to meet the requirements listed in this guideline (Section VI, Part C).
D. Rehabilitation projects will be closed subsequent to Building Department staff
approval of the rehab work performed, and data entered the LACDA rehab
panel.
XII. CONSTRUCTION/PROJECT MANAGEMENT
A. The City will be responsible for conducting initial, interim, and final inspections
for participating properties. These inspections shall be performed to ensure
code compliance, adherence to work write-ups, and progress inspections. The
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City will also assume responsibility for determining cost reasonableness based
upon market data and published construction cost guidelines.
B. The City must determine initial areas where health, safety, building, city, and
other codes must be addressed and will monitor progress in correcting these
deficiencies.
C. The City must identify all rehabilitation activities to be conducted and shall
create a work-write up which addresses all code requirements and rehabilitation
activities, lead based paint testing and removal/abatement, if necessary, while
excluding all ineligible activities.
D. The City will conduct all progress inspections to ensure the continued quality of
all construction, including adherence to the scope of work and all building
codes.
E. During the approval and construction management process, staff will input all
required documentation regarding household income and property description
onto Los Angeles County Development Authority’s (LACDA) website –
rehabilitation panel.
XIII. CONSTRUCTION PAYMENTS
Upon the completion of the rehabilitation project, the following documents must be
submitted to Community Development Division for the processing of payments:
• A Contractor Payment Request form must be completed and signed by the
contractor as well as the homeowner. The Contractor must provide his/her City
of Arcadia business license information and the Tax ID number to process the
requested payment.
• The “Waiver and Release” form must be completed and signed by the
Contractor.
• An original invoice must be submitted by the Contractor.
• If applicable, a copy of the permit finalized by the City’s Building and Safety
Department must be submitted by the contractor or homeowner(s).
If the homeowner(s) has paid for any portion of the improvement, proof of payment
must be provided to the Community Development Division along with the above
documents. Payment will not be made to the contractor without the proof of payment
by the homeowner.
Upon processing the final payment, payment and final inspection information will be
entered into the County’s rehab panel for final submission.
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XIV. GRANT PROVISION AND MONITORING COMPLIANCE
Home Improvement Program participants must sign an agreement indicating that they
will remain in the home a minimum of five (5) years following completion of the grant-
funded improvements. If the home is sold or the title is transferred within five (5)
years, the property owner is required to reimburse the City for the entire grant amount.
EXCEPTION: If the home is sold or the title is transferred due to a legitimate hardship
as determined by the Development Services Director, or designee, the grant recipient
may be exempt from part or the total reimbursement amount.
For the purposes of this program, “sale or transfer of title” shall mean any sale or
transfer that will cause the assisted property to be reassessed by the Los Angeles
County Assessor’s Office pursuant to Article XIII A of the California Constitution
(commonly referred to as Proposition 13).
To verify compliance, staff may also conduct site visits or consult Los Angeles County
records for homeowners who has participated within the past five years to confirm
continued occupancy of the property as their primary residence.
XV. EQUAL OPPORTUNITY
Program participants will be selected on a first-come, first-served basis and based
upon previous participation.
No person shall be excluded from participation in, be denied the benefits of or be
subjected to discrimination under any program or activity funded in whole or in part
with Home Improvement funds. In addition, Home Improvement funds must be made
available in accordance with all federal laws and regulations.
XVI. AFFIRMATIVE MARKETING PROCEDURES
Program information is available to the Arcadia community through various sources.
The application and brochure explaining the Program are available at the
Development Services Department, City of Arcadia, and 240 West Huntington Drive,
Arcadia, California, 91007. The Home Improvement Program is advertised in the
City’s local newsletter, which is mailed quarterly to all properties located within the
City. Additionally, the program is published on the City’s website and can be viewed
periodically on the local cable station to reach the City’s diverse population.
XVII. FAIR HOUSING
This policy will be implemented consistent with the City’s commitment to fair housing
practices. No person shall be excluded from participation in, denied the benefit of, or
be subject to discrimination on the basis of his or her religion or religious affiliation,
age, race, ancestry, national origin, gender, marital status, familial status (children),
physical or mental disability, sexual orientation, or any other arbitrary causes.
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XVIII. LEAD-BASED PAINT AND ASBESTOS
Properties constructed prior to 1978 will require that a Lead Based Paint Notice be
given to all property owners. As required by the County, all participating homeowners
are provided a copy of the brochure entitled, “The Lead-Safe Certified Guide to
Renovate Right” and sign a notice indicating receipt of this brochure issued by the
EPA. The City of Arcadia is required to follow the federal LBP hazard regulations
when implementing the home improvement program. When a grant application is
approved, the city will provide the homeowner with information about potential lead
hazards and the abatement and safety requirements of participating in the program.
As part of the grant program, the city will test Home Improvement assisted units
constructed before 1978 for the presence of lead-based paint utilizing a licensed third-
party vendor. Any lead-based found as a result of these tests shall be removed and/or
abated as a priority item for rehabilitation.
In accordance with CDC requirements, all participating homeowners are provided a
copy of the brochure entitled, “A Consumer Guide to Asbestos” and sign a notice
indicating receipt of this brochure. Depending on the type of repairs, the property may
require asbestos testing. The testing must be completed by a qualified third-party
vendor and if necessary, the asbestos shall be removed and/or abated during the
rehabilitation work.
XIX. DEBARMENT AND SUSPENSION
As required, the city and participating homeowner(s) will comply with all contractor
debarment and suspension certifications.
XX. REPORTING
In accordance with federal requirements, Quarterly Performance Reports must be
submitted to the Los Angeles County Development Authority (LACDA). The report is to
identify the number of applicants, number of projects in progress, total number of
projects completed, income range of clients, ethnicity, sex, and any disability of the
head of household.
In accordance with federal requirements, the annual Contract/Subcontract Activity
Report must be submitted to the Los Angeles County Development Authority
(LACDA). HUD requires all contracts and subcontracts of $10,000 or more executed
during the specific period must be reported.
XXI. CONFLICT OF INTEREST
No member of the governing body of the City and or other official, employee or agent
of the City government who exercises policy or decision-making authority in
connection with the planning or implementation of the Home Improvement Program
shall directly or indirectly be eligible for this Program.
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XXII. PHOTO PERMISSION USAGE
All participating property owners must allow the City of Arcadia to photograph before
and after pictures of the interior and exterior of the house, garage and other structures
present at the subject property. The participating property owners understand that
these photographs will be used to document the conditions and justify the assistance
under the Home Improvement Program. The participating property owners also agree
for the City of Arcadia to place these photographs in local newspaper articles and/or
the City’s newsletters as a method to promote and advertise the Home Improvement
Program at any time.
All participating property owners will be required to complete and sign a Photography
Permission Form (Attachment C) agreeing to the requirements stated in Section XXII
of these guidelines. A signed form must be present in the project file prior to approval
of the application and before any photos are taken and/or published by the City of
Arcadia.
XXIII. AMENDMENTS
Amendments to these Guidelines may be made by the City whenever appropriate to
improve the program effectiveness and to resolve program issues. As part of the
amended adoption process, the City will review updated federal regulations issued by
LACDA in their bulletins to participating cities, to ensure continued compliance with
CDBG regulations.
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ATTACHMENT A
CITY OF ARCADIA
HOME IMPROVEMENT PROGRAM
LACDA PUBLISHED INCOME LIMITS
(Effective June 2023)
Number of Persons in Household Annual Income Limit
1 $70,650
2 $80,750
3 $90,850
4 $100,900
5 $109,000
6 $117,050
7
$125,150
8 $133,200
Income limits are subject to change by the Los Angeles County
Development Authority (LACDA)
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ATTACHMENT B
Recording Requested by:
CITY OF ARCADIA
When Recorded Return to:
CITY OF ARCADIA
240 W. Huntington Dr.
Arcadia, CA 91007 FREE RECORDING
Attn: GOVERNMENT CODE SECTION 6103
__________________SPACE ABOVE THIS LINE FOR RECORDING USE____________
GRANT MEMORANDUM OF AGREEMENT
This Memorandum of Agreement is made and entered into this day of __________by and between _________(Homeowners)
and the CITY OF ARCADIA, a municipal corporation (“City”). Homeowners and City hereby agree as follows:
1. As a participant in the Home Improvement Grant Program (“Program”), Homeowners are receiving from City a Community
Development Block Grant funded Home Improvement Grant in the amount of, _________________ Dollars ($ _____-.00) (the
“Grant”) for rehabilitation of property described in Exhibit A, which is attached hereto and incorporated herein, (the Property”), and
has a street address of __________ in the CITY OF ARCADIA.
2. Pursuant to the Program, among other things Homeowners agree to retain ownership of the Property for no less than five (5) full
calendar years after the completion of all rehabilitation work.
3. The required five-year period of ownership of the Property by Homeowners ends on __________ when the grant is forgiven.
4. If Homeowners choose to transfer any interest in the Property before the date set forth in paragraph 3, above, then Homeowners
must reimburse City the full amount of the Grant.
5. If Homeowners transfer any interest in the Property before the date set forth in paragraph 3, above, then the City must receive
notice addressed to the following:
CITY OF ARCADIA
HOME IMPROVEMENT PROGRAM
240 W. HUNTINGTON DR.
ARCADIA, CA 91007
6. This Memorandum is prepared for the purpose of recordation only and it in no way modifies any provision of the Agreement.
7. Reference is hereby made to the Agreement and all documents related to the Grant, in their entirety, for any and all purposes.
True copies of the Agreement and those documents are on file in the offices of City at 240 W. Huntington Dr., Arcadia, CA 91007.
CITY OF ARCADIA
Date: ______________________ By: ______________________________
Community Development Administrator
HOMEOWNER(S)
Date: _______________________ __________________________________
Date: _______________________ __________________________________
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ATTACHMENT C
CITY OF ARCADIA
DEVELOPMENT SERVICES DEPARTMENT
HOME IMPROVEMENT PROGRAM
PHOTOGRAPHY PERMISSION FORM
I, the undersigned, hereby grant permission to the City of Arcadia and its officials, officers,
employees, representatives, and agents (collectively the “City”), and also the Development
Authority of the County of Los Angeles, the Housing Authority of the County of Los Angeles,
the County of Los Angeles and their officers, employees and agents (collectively the “
County”), to use and/or publish for the City and County purposes, the photographs of the
persons, properties and facilities described herein.
I, the undersigned, hereby hold harmless and specifically waive and release the City and
County from any and all claims, now or in the future that may arise out of the City and
County’s use and/or publication of the photographs described herein.
________________________________________
Date of Photograph
__________________________ and/or_________________________________
Name of Person(s) Photographed Name of Property and Facility Photographed
________________________________________________________________
Name of Person(s) Granting Permission (“Permittor”)
________________________________________________________________
Address and Telephone Number of Person(s) Granting Permission (“Permittor”)
________________________________________________________________
Relationship of Permittor to the Person(s) and Facility Photographed
___________________________________________
Signature(s) of Permittor
___________________________________________
Date
City of Arcadia
CDBG Senior Meal Program Policy
Mission
The mission of the City of Arcadia Senior Meal Program is to provide low-cost, nutritious
meals, and socialization to the community. The program is open to people 50 years or
older and does not have residency requirements. Clients who are 55 years of age and
older, or meet other criteria of eligibility, qualify for subsidized assistance through the
Community Development Grant Program (CDBG).
Services Provided
Arcadia Senior Meal Program not only provides seniors with a healthy, affordable meal
option, but provides a social environment for individuals to combat isolation and extend
lifelong learning. Throughout the year, several events are held during Senior Meal
Program including birthday lunches, entertainment, and educational presentations.
Tracking
First time clients who wish to purchase a meal will be asked to show verification by
State/Federal Issued ID. Individuals 55 years of age and older and older or who meet
CDBG eligibility will be given a Client Intake Form that is to be completed and returned
back to staff. All Client Intake Forms will be entered into CDBG website as soon as
possible. Completed Client Intake Forms and tracking sheets are filed and stored in
Recreation Supervisor’s Office. The intake forms will be kept in storage for 5 years. When
clients return to purchase lunch, staff will check the CDBG data base to confirm they
have submitted a Client Intake Form for the current fiscal year.
Implementation
Arcadia Senior Meal Program, in conjunction with the contracted caterer, creates a
monthly menu that is publicly posted and is subject to change. Tickets for lunch are sold
at the front desk starting at 7:30am until 12:15pm or until lunch is sold out. Individuals
between the ages of 50-54 may purchase a meal for $4, while people 55 years of age
and older or who meet CDBG eligibility, pay a subsidized price of $2. The clients must pay
prior receiving a meal and no reservations are to be made for any subsequent day’s
lunch. At the conclusion of the program at 12:15pm, if there is leftover food, clients are
allowed to have second portions, so long as it is consumed in the dining room. Taking
food home is not allowed and materials are posted informing clients that doing so can
put them at risk for food borne illnesses.
Reporting
In accordance with Federal requirements for CDBG, staff will document the number of
clients 55 years of age and older or who meet CDBG eligibility receiving meals. Staff will
also submit a CDBG Quarterly Performance Reports.
Attachment "C"
City of Arcadia
CDBG Information and Referral Program Policy
Mission
The mission of the City of Arcadia Information and Referral Program is to assist people in
need of social services and information on a variety of topics. The program is open to the
public, regardless of age, race, gender, sexual orientation, physical ability or residency.
Clients who are 55 years of age and older qualify for subsidized assistance through the
Community Development Grant Program (CDBG).
Services Provided
The City of Arcadia Information and Referral Program provides the public with essential
information to navigate the world around them. For the seniors, it allows them to maintain
independent living and healthy lifestyles. Information is compiled and distributed for the
following topics: government benefits, income taxes, notary public, housing,
Medicare/Medi-Cal assistance, homelessness information, and veteran’s resources.
Tracking
When a client 55 years of age and older or who meet CDBG eligibility inquires in person
about information and referral services, they will be given a Client Intake Form that is to
be completed and returned back to staff. Staff will then ask for verification of age by
State/Federal Issued ID. All Client Intake Forms will be entered into CDBG website as soon
as possible. Completed Client Intake Forms are filed and stored in Recreation Supervisor’s
Office.
Implementation
When an individual is requesting information, staff and volunteers will first look through the
complied Information and Referral cabinet for relevant handouts on the topic inquiry. If
the cabinet does not hold the desired information or more assistance is required, the
participant will be referred to the Recreation Coordinator supervising the Information and
Referral Program. At that point, the Recreation Coordinator will research more resources
and/ or refer the individual to the appropriate social service agency.
Reporting
In accordance with Federal requirements for CDBG, staff will document the number of
clients 55 years of age and older or who meet CDBG eligibility receiving information and
referrals. Staff will also submit a CDBG Quarterly Performance Reports.
Attachment "D"