HomeMy WebLinkAboutItem 2i: Continuation of City's Participation in Community Development Block Grant (CDGB) Program OF ARC
v��G,�WPOky� �er
4 milor 7
AYYYYI F, 1903
0 STAFF REPORT
Development Services Department
DATE: May 17, 2011
TO: Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Directors
By: AmberAbeyta, Administrative Assistant
SUBJECT: AUTHORIZE THE CITY MANAGER TO APPROVE THE CONTINUATION
OF THE CITY'S PARTICIPATION IN THE LOS ANGELES URBAN
COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM AND DEFER THE CITY'S METROPOLITAN STATUS
DURING THE JULY 1, 2012 THROUGH JUNE 30, 2015 QUALIFICATION
PERIOD.
Recommended Action: Approve
SUMMARY
Every three (3) years, the County of Los Angeles must re- qualify with the U.S.
Department of Housing and Urban Development (HUD) for entitlement status as an
Urban County so that they can participate in the Community Development Block Grant
(CDBG) Program. In order for the City to continue participating in the CDBG Program
for the new qualification period, the County is requesting a letter from the City,
confirming that the City wishes to continue its participation in the Los Angeles Urban
County CDBG Program during the July 1, 2012 through June 30, 2015 qualification
period, even though the City is eligible to become an entitlement jurisdiction.
Furthermore, the City wishes to defer its metropolitan status and maintain the same
relationship with the Los Angeles Urban County CDBG Program as it has previously, for
the qualification period covering the 2012, 2013, and 2014 Fiscal Years.
DISCUSSION
The City has been a participant in the Community Development Block Grant (CDBG)
program since 1974. CDBG funds come from the U.S. Department of Housing and
Urban Development (HUD) and are administered by the Los Angeles County
Community Development Commission (CDC) for many cities in the County, including
Arcadia. The primary objective of the CDBG program is to provide assistance to low
and moderate - income families by enabling them to participate in various community
activities, and improve their property and environs. CDBG aims to also improve
accessibility for the disabled and eliminate blight or substandard conditions within the
City. The City annually receives an average of $396,000 in CDBG funding. The CDBG
projects for fiscal year 2011 -2012 have already been approved by the City Council.
There are two ways the City can receive CDBG funding; first, as a sub grantee
participating in the Los Angeles Urban County CDBG Program where the County acts
as the grantee and second, as an entitlement jurisdiction with a population of 50,000
people or more, the City can receive CDBG funding directly from HUD. Staff conducted
research on becoming an entitlement City (given that the City is eligible due to its
population of 56,000 people) in order to receive CDBG funding directly from HUD, and
determined that it's not desirable due to the small amount of CDBG funding the City
receives. The majority of the cities that have become entitlement jurisdictions and
receive CDBG funding directly from HUD have a population well over 200,000 and
receive CDBG funding of at least double that of Arcadia. Although the County does
charge administration fees, the relationship with the Los Angeles County CDBG
Program has worked well for the City. Staff contacted representatives from HUD and
cities that act as entitlement cities and received the same information from all parties.
As a result, staff agrees that it's in the City's best interest to defer its metropolitan city
status and continue the same relationship with the Los Angeles Urban County CDBG
Program for the 2012 -2015 qualification period.
RECOMMENDED ACTION
Authorize the City Manager to approve the continuation of the City's participation in the
Los Angeles Urban County Community Development Block Grant (CDBG) Program and
defer the City's metropolitan status during the July 1, 2012 through June 30, 2015
qualification period.
Approved:
Donald Penman, City Manager
CDBG Requalification for FY 2012 -2015
May 17, 2011
Page 2 of 2