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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 -2-