HomeMy Public PortalAbout11) 8A CDBG for FY 2020-21AGENDA
ITEM 8.A.
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DATE: January 21 , 2020
TO: The Honorable City Council
FROM: Bryan Cook , City Manager
V ia : Scott Reimers , Interim Community Development Di rector
By : Adam Gulick , Associate Planner
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR FISCAL
YEAR 2020-21
RECOMMENDATION:
The City Council is requested to :
1. Hold a public hearing regarding the proposed allocation of Community Development
Block Grant (CDBG) funds for Fiscal Year (FY ) 2020-21 ;
2. Authorize the City Manager to amend CDBG-funded program allocations up to 50
perce nt of the approved allocation as necessary throughout the FY ; and
3. Adopt Resolution 20 -5445 esta blishi ng the CDBG-fund ed programs and allocations
below for FY 2020-21 (Attachment "A "). The total CDBG Budget for FY 2020 -21
includes the estimated allocation of $186 ,000 , unallocated prior years ' funds of
$17 1,555 and up to $130 ,740 of carryover from FY 2019-20 :
1. Housing Rehab ilitation Loan and Grant Program :
11. Asbestos Testing and Removal Program :
ii i. Youth Scholarsh ip Prog ram :
Total FY 2020-21 CDBG Budget:
BACKGROUND:
$340 ,795 (70 %)
$110 ,000 (23 %)
$ 37 ,500 (7 %)
$488,295
1. In 1974 , the CDBG Program was enacted through the Housing and Community
Development Act of 1974 . The City has been receiving CDBG funds from the Los
Ang e les County Community Development Authority (LACDA) since 1974 .
City Council
January 21 , 2020
Page 2 of 5
2 . On May 24 , 2019, the City was informed of the 2019 income guidelines through a
CDBG Bulletin (Attachment "B"). At this time , the 2020 income guidelines have not
been released . The City is required to follow the 2019 income guidelines until further
notice .
3 . On January 2, 2020 , a public notice was published in the Temple City Tribune stating
the i ntended CDBG-funded programs and allocations for FY 2020-21 (Attachment
"C "). This notice did not include the potential carryover funds from FY 2019-20 of up
to $130 ,740 .
ANALYSIS:
The CDBG Program was established with the primary objective of developing viable
communities by creating su itable living environments, maintaining and creating decent
housing , and creating and maintaining job opportunities for low-and moderate-income
persons. Every city receives an annual CDBG allocation based upon population . Cities
in Los Angeles County with a population under 50 ,000 , such as Temple City , receive
funds through the LAC DC and is referred to as a non-entitlement jurisdiction .
CDBG funds can only be used to accomplish certain pre-designated national objectives
set forth by this federal program . Specifically , funds need to address slum and bl ighted
conditions , to assist or benefit low-and moderate-income families , to assist with
emergency conditions (e .g . natural disasters) threatening public health and safety , or to
meet the needs of special popu lation groups, such as the disabled or senior citizens.
In the past, the City has been able to use CDBG funds for the Hous i ng Rehabilitation
Loan Program , the Handyworker Assistance Program, the Youth Scholarship Program ,
the installation of Americans with Disabilities Act (ADA) approved surfacing for the
playgrounds at Temple City Park and Live Oak Park, the installation of ADA ramps at
various intersections throughout the City , and ADA improvements to public park ing lots
along Las Tunas Drive and Temple City Boulevard .
The City is required to allocate $357 ,555 of CDBG funds for FY 2020-21 . Th is includes
the City 's estimated annual allocation of $186 ,000 and $171 ,555 of unallocated funds
carrying over from the previous fiscal year and /or prior home improvement loans paid
back to the City . In the rare event the City does not expend all of its FY 2019-20 CDBG
funds ; the City could have up to an additional $130,740 of CDBG funds to use on FY
2020 -21 programs . This would result in a total of $488 ,295 of CDBG funds available for
FY 2020-21 ; however, a more conservative estimate of CDBG funds ava ilable for FY
2020-21 would be $357 ,555 . Since the actual al location or carry over funds may be
different from the estimates , staff is recommending that the C ity Council authorize the
City Manager to adjust the program allocations as needed to reflect the availab le fund ing .
The City is required to condu ct a public hearing to so licit input from the community and to
ensure that the proposed CDBG Projects meet community needs and HUD guidel ines . The
City published a notice in the newspaper (Attachment "B") notifying the publ ic of the City 's
City Council
January 21 , 2020
Page 3 of 5
intended CDBG programs and allocations for FY 2020-21. Staff recommends that the
programs and relative fund ing leve ls for FY 2020-21, as follows .
• Housing Rehabilitation Loan and Handyworker Grant Program:
Th is Housing Rehabil itation Loan Program has been popular in the community s ince
it was estab lis hed in the mid-1990 's . In FY 2016-17 , the loan and grant program were
combined into one program to he lp streaml i ne projects and reduce administrative
wo rk. The Housing Rehabilitation Loa n Program pro vi des deferred lo ans (maximum
$35 ,000) to below moderate-income homeowners to make necessary major home
repairs and/or co rre ct Building and Zoni ng Code violations . Since FY 2014-15 , the
City has assisted 15 below moderate-i ncome ho useho ld s . A li en recorded on the
property requires th at the owners pay back their loan if the house is sold , is changed
to a rental , or the property is refinanced . When the loa n is paid back , the money is
recycled back into the City's CDBG Programs .
Du e to a signifi cant level of interest in the com munity, the City brought back the
Hand yworker Grant Program i n FY 2015-16 . This program a lso assists income-eligib le
households with necessary and essential home repa irs (maximum $10 ,000). The
program is geared towards sma ll er repairs to help imp ro v e the qual ity of life , such as :
roof repa i rs or re pla cement, window replacement , painting , st ucco, electrical , and
plumb ing repa irs or replacement. S in ce FY 2015-16 , the City has issued grants to 17
below moderate-income house ho ld s .
At the t ime of th is report , there are approx imately 20 residents on the waiting list for
this program. Sta ff recommends allocati ng $340 ,795 o r approximate ly 69 .8 percent of
the CDBG funds in FY 2020-21 , which in cludes $272 ,636 to assist below moderate-
income househo lds with needed repairs and up to $68,159 of prog ra m admin istration
costs to cover the City's co ns ul ta nt.
• Asbestos/Lead-Based Paint Testing and Removal Program :
This ongoing program offers grants to home imp rovement loan and handyworker grant
participants whose homes have tested positive for asbestos and/or lead-based paint.
T he grant is us ed to mitigate or abate hazardous condi ti ons in conjunction w ith the
loan and grant prog ra ms ; suc h abatement is requi red since federal funds are being
util ized . The funds vary based on t he number of projects re quiring asbestos and/or
lead-based paint testing , and required abatement work . Depending on the scope of
work, the asbest os and/or lead -ba sed testing ca n range from $200 to $1 ,000 pe r
residence. If the propose d area of construction tests pos itive for asbestos and/or lead-
based pa i nt , abatement work is requ ired and can cost up to $8,000 or more depend ing
on t he amount of area being distu rbed .
Staff recommends that the allocation be $110,000 or 22 .5 percent of th e CDBG funds
for FY 2020-21 . This amount would provid e for testing and abatement work , if needed ,
for the households that are ass isted through the Housi ng Rehabilitation Loan Prog ra m
and Handyworke r Grant Program. The $1 10 ,000 a lloca tion includes up to $22 ,000 of
,-----------------------------
City Counci l
January 21 , 2020
Page 4 of 5
program administration costs to cover the City's consultant. As with all of the CDBG
funded programs, any funds left remaining at the end of the program 's fiscal year
would be carried over to the following fiscal year .
• Youth Scholarship Program:
The Youth Scholarship Program qualifies as a "public service" program . Under the
HUD CDBG guidelines , a maximum of 15 percent of the annual CDBG allocation can
be used for public service programs, however, LACDA informed City staff that Temple
City can use up to 20 percent of the annual allocation for this fiscal year. This is an
ongoing program enabling Temple City youth under the age of 18 to participate in
various City-sponsored recreation activities . The scholarship amount covers a portion
of the recreation activity fee for members of eligible households . For youths from
extremely low-and low-income households , the scholarship would cover 75 percent
of the fee . For youths from moderate-income households , the scholarship would cover
50 percent of the fee . This is the most utilized CDBG program in the City , which
typically expends all of the program funds by May of the program's fiscal year. This
program typically issues 75 to 100 scholarships each fiscal year.
Staff recommends that the allocation be $37 ,500 or 7 .7 percent of the total CDBG
funds for FY 2020-21 and is also limited to 20 percent of the City's annual allocation
for this fiscal year.
CITY STRATEGIC GOALS :
Approval of the CDBG Allocations for FY 2020-21 will further the City 's Strategic Goals
of Public Health and Safety , Quality of Life , and Economic Development.
FISCAL IMPACT:
This action will impact the FY 2020-21 City Budget by designating an estimated $488 ,295
worth of CDBG funds as follows :
Housing Rehabilitation Loan and Handyworker Grant Program :
Asbestos Testing and Removal Program :
Youth Scholarship Program :
Total
$340 ,795
$110 ,000
$ 37 ,500
$488 ,295
The programs are funded entirely with CDBG funds , so there is no impact on the General
Fund.
ATTACHMENTS:
A. Resolution 20-5445
City Council
January 21 , 2020
Page 5 of 5
B. LACDA Bulletin 19-0002-2019 C DB G Income Guidelines
C . CDBG FY 2020-21 Public Hearing Notice , T emp le City Tribune , January 2 , 2020
ATTACHMENT A
RESOLUTION NO. 20-5455
A RESOLUTION OF THE CITY COUNCIL OF TH E CITY OF TEMPLE
CITY, CAUFORNIA , AP PRO VIN G THE CITY'S PROPOSED
COM MUNITY DEVELOPM ENT BLOCK GRA NT PROGRAMS FOR
FISCAL YEAR 2020-2021
WHEREAS, in 1974, the Preside nt of th e United States signed into law the Housing
and Community Development Act of 1974 (Act); and
WHEREAS, the primari ly goals of Title I of Act are to deve lop a viable urban
communities by providing decent housing and suitable living environment and expanding
eco nom ic opportunities for persons of low and moderat e i ncome; and
WHEREAS, the City of Temple Ci t y has participated in the Community Development
Block Grant (CDBG) with the County of Lo s Angeles for several years; and
WHEREAS, the City of Temple City desires t o pa rti cipate with the Los Angeles Urban
Co unty CDBG Program f or Fiscal Year 2020 -202 1; and
WHEREAS, th e City of Temple Ci ty has been notified of the availability of an es t imated
$357,555 of CDBG funds for Fiscal Year 2020 -202 1, an allocation of $186,000 and $171,555 of
unallocated funds. Th e City of Temple City could have up to an additional $130,740 depending
on the final expenditures for Fiscal Year 20 19-2020, for a t otal of $488,295; and
WHEREAS, on January 2, 2020, a pub lic notice was published in the Temple Ci t y
Tribune stating the intended CDBG -funded programs for FY 2020 -2021; and
WHEREAS, o n Jan u ary 21, 2020, th e Ci t y Council of the City of Temp le City conducted
a public hearing to so li cit comments and suggestions form the co mmun ity for the utilization
of these funds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TEMPLE
CITY, CALIFORNIA AS FOLLOWS:
SECTION 1 . The City Co unci l finds that all the facts set forth in the Recita ls of this Resolution are
t ru e and correct.
SECTION 2. That the Mayor, City Manager or their designee are authorized and directed to submit
t he City's final Pla nnin g Summary for Fi sca l Year 2020-2 021 to the County of Los Angeles ,
reflect i ng the funding allocations set forth herein . Should t he City 's final all ocatio n be less or more
Reso lution No. 20-5455
Page 2 of 3
t ha n the, the City Ma nager is authorized to m odify each prog ram up to 150 percent of the figures
listed b el ow:
Program Name HUD Activity Propose Use of Funds Proposed
Allocation
Ho u sin g Low/M o d erate Prov ides def erred lo an s ($35 ,000) and $ 340,795
Re habi l itation Housing grants ($10 ,000) to in come qualifi ed
Loan and sin g le-fami ly house ho ld s to co rre ct code
Hand ywo rke r v iolatio ns and/o r to prov ide d ece nt , sa fe,
Grant Program and sanitary hous ing in Temple City.
Asbestos Testing Low/Moderate Provides grants to qualified low-and $ 110,000
and Removal Ho u si n g moderate-i ncome households
Prog ram participating in the home improvement
program to test and ab ate asbestos
and/o r l ead -ba se d pai nt.
Youth Scho l arsh ip Provid es sc holars hips t o ch il dren ages 17 $ 37,500
Prog ram yea r s o ld and younge r in below
moderat e-income fami li es al lowing them
t o partic ipate in various rec reation
classe s/activities offe red by the City's
Pa rk s and Recreation Department.
SECTION 3. The City Clerk shall certify to the pa ssage and ado ption of th is resoluti o n.
PASSED, APPROV ED, AND ADOPTED thi s 2P1 day of January, 202 0 .
Nanette Fish, Mayor
ATIEST: APPROVED AS TO FORM:
Peggy Kuo, City Cle rk Greg Murphy, City Attorney
Resol uti o n No. 20-5455
Page 3 of 3
I, Peggy Kuo, City Clerk of the City of Templ e City, hereby certify t hat the forego ing
Re so lu tion No. 20-5455 was adopted by said Counc il at the regu la r meeting h eld on the 21st day
of Janu ary 2020, by the foll owing vo te :
AYES:
NOES:
ABSENT:
ABSTAIN :
Council member -
Council member -
Co un cilmember-
Co un ci lm ember-
Peggy Kuo , City Clerk
NUMBER · CDBG19-0002
FRH$19-0001
BFH19-0001
SUB JEC T: 2019 INCOME GUIDELINES
DATE : MAY 24 ,2019 EFFECTIVE DATE : IMMEDIATELY
TO : PARTICIPATING CITIES
COMMUNITY -BASED ORGANIZATIONS
OTHER PUBLIC AGENCIES
COUNTY DEPARTMENTS
CDC DIVISIONS
ATTACHMENT B
PAGE 1 OF 2
The 2019 income guidelines (effective Apr il 24, 2019) for use in Community Development Bl ock
Grant (C DBG), Bring ing Familie s Home (BFH), and Fam ily Reunificat ion Housing Subsidy (FRHS)
programs are listed below. These guidelines should be use d to determine compliance with eac h
program's objective of provid ing benefit to income-eligible persons. They are also used in
determining eli gibility for the Public Housing and Section 8 Programs and a re effective until a new
schedu le is issued .
The CDBG Program defines annua l income accord ing to the Section 8 Housing Ass istance Payments
Program , thus we are subject to the definitio n of "Extreme ly Lo w-Income ," per the 2014 Consoli dated
Appropriat ions Act. Since the 30 % Average Med ian Income (AMI) limits are not the same as the
"Extremel y Low-Income" lim its, the CDBG Program must use the income guidel ines, as outlined
below.
20191NCOME LIMITS
Number of Persons Extremely Low-Income Low-Income Moderate-Income
1 $21,950 $36,550 $58,450
2 $25,05 0 $4 1,800 $66,800
3 $28,2 00 $47,000 $75,150
4 $31,3 00 $52,200 $83 ,500
5 $33,850 $56,400 $90 ,200
6 $36,350 $60,600 $96 ,900
7 $39,010 $64,750 $103 ,550
8 $43,430 $68,950 $110,250
Please note t hat the 20 19 median fami ly in com e for Los Angeles Cou nty is $73 ,100.
C om mun ity & Econ o m i c De velo pment Divis io n -Gran ts M a na gement Un it (CEDD -GMU)
Puffi ng DollarS Into Action
Part icipat ing Agenc ies
May 24,20 19
Page Two
These gu idelines refe r to the terms in determining income levels for the above-mentioned programs.
In order to clarify any misunderstanding from the differences in terms between the Public Housing,
Section 8, CDBG, BFH, and FRHS Programs, the fo llowing is provided for your information :
COMPARISON OF TERMS IN DETERMINING INCOME LEVELS
BFH & FRHS CDBG SECTION 8 %OF MEDIAN
Extremely Extremely Extreme ly Equal to or
Low-Income Low-Income Low-Income less than 30%
Not Eligible Low-Income Very 31 % to 50% Low-Income
Not Elig ible Moderate-Income Low-Income 51 % to 80 %
For all agencies util izing CDBG-approved Public Service Self-Certification Forms, please be sure to
incorporate these revised income guidelines into your forms immediately (the Public Service
Self-Certification Form does not apply to th e BFH and FRHS Programs).
Should you have any questions please contact your Program Manager.
GS:OV:BT:JSB ab
K-IGMU COMMON\BULLETINS (Worl<ilg Flle ·WORD Versoon)\COOGI2019\2019lncome Guldelr\es docx
ATTACHMENT C
CITY OF TEMPLE CITY
PUBLIC HEARING NOTICE
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
FOR FISCAL YEAR 2020-2021
Notice is hereby given that the City Council of the City of Temple City w ill consider the
use of Community Development Block Grant Funds for Fiscal Year (FY) 2020 -2021 at their
meeting of January 21, 2020 , at 7 :30 p.m . in the City Council Chambers of the City Hall ,
located at 5938 Kauffman Avenue , Temple City .
Commun ity Development Block Grant (CDBG) Funds must be used to achieve the
stated national objectives of this Department of Housing and Urban Development (HUD)
program . Specifically, these available Federal -Government funds must be used to eliminate
slum and bl igh t conditions, ass ist low and moderate-i ncome households , address "spot blight ",
emergency purposes , or to meet the needs of spec ial population groups , such as the disabled .
The City of Temple City is anticipated to have an allocation of $186 ,000 and an
additional $171 ,555 of unallocated prior years ' funds available for FY 2020-2021 , for a total of
$357,555. The recommended CDBG programs may include but are not limited to :
Hous in g Rehabilitation Program -This ongoing program offers deferred loans
(maximum $35,000) to below moderate -income homeowners to make necessary major
home repairs and/or correct Building and Zoning Code violations . The program also
includes grants to assist income-e ligible households with necessary and essential home
repairs (maximum $10 ,000 ). The program is geared towards smaller repa irs to help
improve the quality of life , such as : roof repairs or replacement, window replacement ,
painting, stucco, electrica l, and plumbing repairs or rep lacement. Recommended
budget $225,000
Lead and Asbestos Testing and Removal Program -Th is ongoing program offers
grants to home improvement loan and handyworker grant participants whose homes
have tested positive for asbestos and/or lead -based paint. The grant is used to mitigate
or abate hazardous conditions in conjunction with the loan and grant programs ; such
abatement is required since federal funds are being utilized . Recommended budget
$95 ,055 .
Youth Scholarship Program -This is an ongoing program enabling Temple City youth
under the age of 18 to participate in various City-sponsored recreation activities . The
scholarship amount covers a portion of the recreation activity fee for members of
el igible households . Recommended budget: $37 ,500 .
The above -enumerated amounts are based upon preliminary estimates from HUD and actua l
amounts to be expended may be modified as part of the City 's budget process to reflect the
availabil ity of funds . The appro ved CDBG projects and accompanying budget w ill be subm itted
to the County of Los Angeles Commun ity Development Comm iss ion fo r inclu sion in its
application to HUD .
Any i nterested persons wishing to provide input on housing and community
development as it relates to the use of the 2020-2021 CDBG funds may contact the
Commun ity Deve lopment Department at City Hall by phone (626) 285-2171 . Written
comments may also be subm itted to : City of Temple C ity Community Development
Department , 9701 Las Tunas Dr ive , Temp le City , CA 91780. Comments w i ll be received
through January 21 , 2020 .
Published :
Date :
Temple C ity Tribune
January 2 , 2020
Peggy Kuo
City Clerk