HomeMy WebLinkAboutItem 1b: Resolution 6694 CDBG - Recovery Funds for Low/Moderate Income Residential RehabI.eor~. .tM
A.9..c S, 1919
STAFF REPORT
DATE: September 15, 2009
TO: Mayor and City Council
Development Services Department
FROM: Jason Kruckeberg, Development Services Director 3zl4
By: Jim Kasama, Community Development Administrator/f/.
SUBJECT: RESOLUTION NO. 6694: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ARCADIA, CALIFORNIA, APPROVING THE USE
OF THE COMMUNITY DEVELOPMENT BLOCK GRANT -
RECOVERY (CDBG-R) FUNDS FOR LOW/MODERATE INCOME
SINGLE-FAMILY RESIDENTIAL REHABILITATION.
This is to revise the use of the CDBG-R funds from energy efficiency
improvements for multiple-family residential facilities occupied by
low/moderate income senior citizens to rehabilitation of low/moderate
income single-family residences.
Recommendation: Adopt Resolution No. 6694
BACKGROUND
In early May 2009, the Los Angeles County Community Development Commission
(CDC) advised the City of Arcadia that the Department of Housing and Urban
Development (HUD) had issued a notice that the American Recovery and
Reinvestment Act of 2009 (Recovery Act) had appropriated one billion dollars in
Community Development Block Grant (CDBG) funds for states and local agencies
to utilize on an expedited basis on activities eligible under the CDBG program to
stimulate the economy. The CDC indicated that HUD was placing an emphasis on
projects that modernize the Nation's infrastructure, improve energy efficiency and
conservation, expand educational opportunities, improve access to health care, and
provide employment.
The City of Arcadia will receive approximately $120,195 in Community Development
Block Grant - Recovery (CDBG-R) funds. The CDC is retaining 5% (±$6,010) of
the funds for its administration of the Recovery Act funds, and a maximum of 25%
(±$30,048) may be used by the local agency for its administrative costs. The
Development Services Department anticipates that no more than 10% (±$12,019) of
the funds will be needed to manage a project with the remaining $102,166 to be
used for project costs.
Since the City of Arcadia is already using a substantial portion of its regular CDBG
funds for rehabilitation of low/moderate income single-family homes, the City
Council approved at its July 7, 2009 meeting a project for the rehabilitation or
energy efficiency retrofitting of either, or both of the following low/moderate income
senior citizen residential developments:
Naomi Gardens at 655 W. Naomi Avenue, and
Heritage Park at Arcadia at 150 Las Tunas Drive.
Upon learning of the availability of these funds, Naomi Gardens responded that it
would be interested in participating, but their corporate management has since
decided that providing the necessary qualification information is too burdensome.
Heritage Park initially did not respond to our inquiries because they thought the
program was a loan and not a grant. Nevertheless, their corporate management
has also declined to participate. Therefore, the CDBG-R funds must be used on a
different project.
DISCUSSION
The Recovery Act emphasizes that the CDBG-R program be quickly implemented
to stimulate economic activity, and the CDC expects that the funds will be available
in September. All of the CDBG-R funds must be expended by September 30, 2011.
Due to the emphasis on expeditious use of the CDBG-R funds, a replacement
project needs to be submitted to the CDC as soon as possible. Therefore, the
Development Services Department is recommending that the CDBG-R funds be
used to expand the current $12,000 maximum grant program for low/moderate
income single-family home improvements, and that the home improvement program
have energy efficiency improvements as its second priority after basic health and
safety improvements. Since the home improvement program is ongoing,
administration is already in place, applications have already been received, and
processing is underway. The only changes that staff would have to make are to
advise prospective participants that after basic health and safety improvements,
there is an emphasis on energy efficiency improvements, and that the first 9 or 10
home improvement applications that are eligible, be funded by the CDBG-R
program.
FISCAL IMPACT
There is not a fiscal impact to the City's General Fund to implement the CDBG-R
project or for this revision. All funds, including the administrative allowance comes
from the grant. However, CDBG project appropriations are included in the City's
CDBG-R Project Revision
September 15, 2009
Page 2
operating budget and are required to be approved by the City Council prior to the
expenditure of the funds. At its July 7, 2009 meeting, the City Council approved an
appropriation of $120,195, which is equal to the expected amount of the grant. The
only change is that these funds will now be used for low/moderate income single-
family home improvement projects.
RECOMMENDATION
The CDC advises that the City Council approve the project by resolution with a
provision that authorizes the City Manager to make amendments as necessary.
The Development Services Department recommends the adoption of City Council
Resolution No. 6694:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, APPROVING THE USE OF THE COMMUNITY DEVELOPMENT
BLOCK GRANT - RECOVERY (CDBG-R) FUNDS FOR LOW/MODERATE
INCOME SINGLE-FAMILY RESIDENTIAL REHABILITATION.
Approved:
y~e
Donald Penman, City Manager
Attachment: Resolution No. 6694
CDBG-R Project Revision
September 15, 2009
Page 3
RESOLUTION NO. 6694
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, APPROVING THE USE OF THE COMMUNITY
DEVELOPMENT BLOCK GRANT - RECOVERY (CDBG-R) FUNDS FOR
LOW/MODERATE INCOME SINGLE-FAMILY RESIDENTIAL
REHABILITATION.
WHEREAS, the City of Arcadia participates in the Community Development
Block Grant program through the Los Angeles County Community Development
Commission (CDC); and
WHEREAS, City staff has proposed to program the newly available Community
Development Block Grant - Recovery Act (CDBG-R) funds of $120,195 into the City's
ongoing low/moderate income single-family residential rehabilitation program with an
emphasis on energy efficiency; and
WHEREAS, the City has allowed written comment and public testimony on the
City's Community Development Block Grant programs; and
WHEREAS, on September 15, 2009, the City Council held a public hearing on
the proposed program for the CDBG-R funds.
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 programming of the newly
available $120,195.00 of CDBG-R funds to the City's ongoing low/moderate income
single-family residential rehabilitation program with, after basic health and safety
improvements, a secondary priority of energy efficiency improvements.
SECTION 2. The City Council appoints the City Manager or his/her authorized
designee to execute and submit all necessary documents including, but not limited to
any contracts, agreements and amendments with the Los Angeles County Community
Development Commission (CDC) including each approved recipient/ subrecipient of the
program.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this 15th day of September, 2009.
ATTEST:
City Clerk
APPROVED AS TO FORM:
sNir~ P. -ODP~
Stephen P. Deitsch
City Attorney
Mayor of the City of Arcadia
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