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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" FY23-24 H.I.P. Guidelines Page 2 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. FY23-24 H.I.P. Guidelines Page 3 • 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 FY23-24 H.I.P. Guidelines Page 4 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 FY23-24 H.I.P. Guidelines Page 5 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. FY23-24 H.I.P. Guidelines Page 6 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 FY23-24 H.I.P. Guidelines Page 7 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 FY23-24 H.I.P. Guidelines Page 8 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, FY23-24 H.I.P. Guidelines Page 9 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. FY23-24 H.I.P. Guidelines Page 10 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 FY23-24 H.I.P. Guidelines Page 11 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. FY23-24 H.I.P. Guidelines Page 12 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. FY23-24 H.I.P. Guidelines Page 13 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. FY23-24 H.I.P. Guidelines Page 14 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. FY23-24 H.I.P. Guidelines Page 15 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 $133,200 Income limits are subject to change by the Los Angeles County Development Authority (LACDA) FY23-24 H.I.P. Guidelines Page 16 ATTACHMENT B Recording Requested by: CITY OF ARCADIA When Recorded Return to: CITY OF ARCADIA 240 W. Huntington Dr. Arcadia, CA 91007 FREE RECORDING Attn: GOVERNMENT CODE SECTION 6103 __________________SPACE ABOVE THIS LINE FOR RECORDING USE____________ GRANT MEMORANDUM OF AGREEMENT This Memorandum of Agreement is made and entered into this day of __________by and between _________(Homeowners) and the CITY OF ARCADIA, a municipal corporation (“City”). Homeowners and City hereby agree as follows: 1. As a participant in the Home Improvement Grant Program (“Program”), Homeowners are receiving from City a Community Development Block Grant funded Home Improvement Grant in the amount of, _________________ Dollars ($ _____-.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: _______________________ __________________________________ FY23-24 H.I.P. Guidelines Page 17 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"