HomeMy Public PortalAbout08) 10A Additional CDBG Funds Resulting from Coronavirus Aid
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DATE: May 5, 2020
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
Via: Scott Reimers, Interim Community Development Director
By: Adam Gulick, Associate Planner
SUBJECT: ADDITIONAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
RESULTING FROM THE CORONAVIRUS AID, RELIEF, AND
ECONOMIC SECURITY ACT
RECOMMENDATION:
The City Council is requested to:
1. Direct the City Manager to issue a public notice and allocate $123,206 of Community
Development Block Grant (CDBG) funds that the City will receive as part of the
Coronavirus Aid, Relief, and Economic Security (CARES) Act.
2. Direct staff to return before the end of fiscal year (FY) 2019-2020 with a
recommendation on modifying the CDBG programs for FY 2020-2021 to provide relief
related to the COVID-19 pandemic.
BACKGROUND:
1. On January 21, 2020, the City Council held a public hearing regarding the propos ed
CDBG programs and allocations for FY 2020-2021 (Attachment “A”).
2. On March 4, 2020, Governor Newsom declared a State of Emergency in response to
the COVID-19 pandemic.
3. On March 13, 2020, the President of the United States declared a national state of
emergency due to the COVID-19 outbreak. On this same day, the City Council
adopted Resolution No. 20-5457, declaring a local state of emergency.
4. On March 27, 2020, President Trump signed into law the CARES Act, which includes
$5 billion in additional CDBG funding to prevent, prepare for, and respond to the
City Council
May 5, 2020
Page 2 of 6
COVID-19 pandemic. The Los Angeles Urban County has been allocated
$13,668,315, which is based on the existing formula used to distribute CDBG funds
for FY 2020-2021.
5. On April 7, 2020, the Los Angeles County Development Authority (LACDA) issued a
Grants Management Unit Bulletin (Attachment “B”) informing participating cities that
they will receive additional CDBG funds as a result of the COVID-19 pandemic;
Temple City will receive $123,206. The bulletin also provides guidance on enhancing
existing common CDBG programs and potential new programs to assist the
community relating to the COVID-19 pandemic.
6. On April 14, 2020, the LACDA announced a public-private partnership bringing $28
million to LA County for a COVID-19 Relief Fund. The purpose of the COVID-19 Relief
Fund is to assist hundreds of small businesses (under 25 employees) and non-profits
with critical funding in Los Angeles County.
ANALYSIS:
The City can spend an additional $123,206 of CDBG funds on expenses related to COVID-
19. The following provides information and some analysis on different options on the use of
these funds. As a non-entitlement City, Temple City is required to follow the guidelines and
programs set forth by the LACDA for use of CDBG funds. As described in the bulletin, the
first three programs outlined would be new CDBG programs and the last three options would
make use of the City’s existing CDBG programs. The details of any new program would still
have to be developed and are presented to give the City Council options to consider in using
this specific allocation of funds.
Temporary Rental Assistance Program (new program):
LACDA’s bulletin mentions establishing a housing subsidy program to assist low-
income households that have been laid off – temporarily or permanently - due to
COVID-19. The County of Los Angeles is offering a related program which offers
$1,000 per month for three months to renters who have lost income due to COVID -
19. The target population would be individuals working in the non-essential industries,
such as gyms, nail salons, barbers, retail stores, hotel/lodging, or entertainment
businesses. Recipients would need to demonstrate their income is within certain
household income limits.
Establishing a temporary housing subsidy program would assist low-income residents
that face unemployment, food insecurity and housing instability as a result of COVID-
19 closures. There is some assistance and protections already in place. Stimulus
checks are in the process of being issued by the federal government. City Council
approved an urgency ordinance prohibiting evictions and allowing tenants up to six
City Council
May 5, 2020
Page 3 of 6
months to pay delinquent rent. This does not forgive unpaid rent, only defers payment.
The number of households that would need assistance is unknown until if approved a
City would advertise the program.
COVID-19 Drive-Up Mobile Testing (new program):
LACDA’s bulletin includes the creation of various programs relating to health care
training and activities, which includes providing testing at a fixed or mobile location.
The City of Baldwin Park is using a portion of their COVID-19 CDBG funds to partner
with Baldwin Park Unified School District and a third -party contractor to operate a
drive-up COVID-19 mobile testing site. An appointment is required for the COVID-19
test and priority is given to residents and employees of Baldwin Park businesses who
are showing symptoms, who are 65 years of age and older, who are low income, and
who do not have health insurance. The City of Alhambra will also be using a portion
of their COVID-19 CDBG funds on a drive-up COVID-19 mobile testing site with the
same third-party contractor. The proposed contractor reports the following costs: test
kits are $135 each; a minimum of two medical staff at a site, each costing $1,320 per
day; and a medical director for overseeing the testing facility for the three to four week
period is $5,600. The company requires a minimum of three weeks for the operation,
which would range from $45,200 to $84,800 depending on the number of medical
staff. Alhambra will have capacity to provide 1,600 COVID-19 tests, with the tests
alone costing $216,000. It appears that the minimum operating costs for the drive-up
mobile testing site for both cities will be $261,200 and could go as high as $300,800.
City staff has reached out to the third-party contractor about operating a drive-up
COVID-19 testing site in Temple City but have not heard back from them at the time
of writing this report. If the contractor would allow reducing the minimum number of
COVID-19 tests to 800, given the contractor’s quote to other cities, the minimum start-
up cost to establish a mobile testing site would be an estimated $153,200. This
exceeds the CDBG funds allocated to Temple City through the CARES Act.
It is also unknown what the interest would be in the community if the City were to
establish a drive-up COVID-19 mobile testing site. COVID-19 tests are available with
some primary care givers, at medical clinics and hospitals. Additionally, the County
of Los Angeles has recently established free, drive-up testing sites to anyone
throughout the county. There are five drive-up testing locations within 10 miles of the
central part of Temple City:
El Monte Airport, 4233 Santa Anita Avenue, El Monte, 91731
Beverly Hospital, 309 W. Beverly Boulevard, Montebello, 90640
East Los Angeles Community College, 1304 Avenida Cesar Chavez, Monterey
Park, 91754
City Council
May 5, 2020
Page 4 of 6
AltaMed Medical and Dental Group, 1300 S. Sunset Avenue, West Covina,
91790
Pasadena Rose Bowl, 1001 Rose Bowl Drive, Pasadena, 91003
Assisting Small and Micro Businesses Program (new program):
The LACDA bulletin also describes some examples of potential new programs
combating the COVID-19 pandemic. One program is to assist small and micro
businesses through loans and grants. It is also uncertain how many would be eligible
if the program were limited to businesses with low-income employees. Recently, there
has been movement on expanding the first wave of small business loans. The LACDA
announced the COVID-19 Relief Fund a few weeks ago to assist small businesses in
Los Angeles County with low interest loans. On April 24, the President signed a $484-
billion coronavirus relief package into law that injected an additional $320 billion into
the paycheck protection program, which allows small businesses to continue paying
employees.
Housing Rehabilitation Loan and Handyworker Grant Program (existing
program):
In FY 2020-2021, the City Council approved up to $340,795 of CDBG funds for home
improvement loans and grants that also includes housing consultant costs. The
LACDA bulletin mentions an eligible COVID-19 enhancement to an existing housing
rehabilitation program could include staff distributing program outreach marketing
materials through a CDBG-funded senior meal delivery (public service) program. The
City’s senior meal program is not funded with CDBG funds so this activity would not
be eligible. Additionally, the City has consistently had anywhere from 15 to 30
residents on the waiting list over the past few years; additional outreach is not needed
at this time.
The LACDA bulletin also suggests offering a grant for the installation of broadband
(high-speed) infrastructure wiring or a high-speed internet service subsidy to income-
eligible households. Assisting with the installation or subsidy of high-speed internet
would allow for low-income households to connect with family, friends, teachers, and
receive other important services during the COVID-19 pandemic. Spectrum
announced in March that they will offer free installation and internet for 60 days for
households that do not already have service with them; they also mentioned that they
would allow free public use of their Wi-Fi hotspots that are located throughout the
community. Additionally, Spectrum offers an Internet Assistance program for eligible
low-income households that is less than $20 per month.
City Council
May 5, 2020
Page 5 of 6
Asbestos/Lead-Based Paint Testing and Removal Program (existing program):
No program enhancements were mentioned in the LACDA bulletin.
Youth Scholarship Program (existing program):
The City Council allocated $37,500 for the Youth Scholarship Program for FY 2020-
2021. The LACDA bulletin suggests offering online tutoring and virtual classes , “grab
and go” activity packets, and/or re-program funds to purchase equipment and
supplies. City staff could explore paid online programs for youth programs, the city is
currently utilizing free online programing for the youth programs. The County of Los
Angeles Library is also offering extensive programming options for children including
free online homework help. Given the existing programs, it is unlikely there is a strong
need for this assistance.
Additional CDBG Funds to Address COVID-19:
In addition to the funds provided through the CARES Act, the City receives an annual
allocation of CDBG funds. It is likely that there will be approximately $20,000 of CDBG
funds unspent from this fiscal year due to the cancelling of youth recreation programs.
The City will not lose these funds, but they will be made available to the City in the next
fiscal year. In January, the City Council approved a plan to spend the City’s CDBG funds
on programs related to youth scholarships for recreation programs and home
rehabilitation grants and loans. The final CDBG budget for FY 2020-2021 will be
$377,594, which includes the City’s annual allocation of $209,440 and $168,154 of funds
carried over from the previous fiscal year and previous housing rehabilitation loans paid
back to the City. The final FY 2020-2021 CDBG budget is less than the amounts
approved by City Council in January because the annual allocation and the funds carried
over were estimated. Given the change in circumstances, staff’s recommendation
includes direction to return at the end of the fiscal year to consider changing the FY 20 20-
2021 program to further support COVID-19 relief.
CITY STRATEGIC GOALS:
Approval of the CDBG funds received from the CARES Act will further the City’s Strategic
Goals of Public Health and Safety, Quality of Life, and Economic Development.
FISCAL IMPACT:
This action will require an amendment to add $123,206 to the CDBG revenue and
expenditure budget for FY 2019-2020. The new COVID-19 CDBG funds resulting from
the CARES Act will be entirely funded using CDBG funds. There will be no impact to the
General Fund, as CDBG funds are reimbursed from LACDA
City Council
May 5, 2020
Page 6 of 6
ATTACHMENTS:
A. City Council Staff Report dated January 21, 2020, CDBG Allocations for FY 2020 -
2021
B. LACDA Bulletin 20-0006 – Using CDBG Grant to Respond to the COVID-19
Pandemic
ATTACHMENT A
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DATE:
TO:
FROM:
January 21, 2020
The Honorable City Council
Bryan Cook, City Manager
Via: Scott Reimers, Interim Community Development Director
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
percent of the approved allocation as necessary throughout the FY; and
3.Adopt Resolution 20-5445 establishing the CDBG-funded 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
$171,555 and up to $130,740 of carryover from FY 2019-20:
i.Housing Rehabilitation Loan and Grant Program:
11.Asbestos Testing and Removal Program:
iii.Youth Scholarship Program:
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
Angeles County Community Development Authority (LACDA) since 1974.
City Council
Jan uary 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 th e 2019 in co me guidelines until further
notice .
3 . On Jan uary 2, 2020 , a public notice was publ ished in the Temple City Tribu ne stating
the i ntended CDBG-funded programs and allocations fo r FY 2020-21 (A ttachment
"C"). This notice did not include the poten ti al carry over funds from FY 2019 -20 of up
to $130 ,74 0 .
ANALYSIS:
The CDBG Program was established with the primary objective of developing viable
co mmun ities by creating suitable living e nvironm en ts , mainta in ing and creating decent
housi ng , and c re ating and mai nta in ing job opportunities for low-and mod erate-income
persons . Every city receive s an annual CDBG allocation bas ed upon population . Cities
in Los Angeles County w ith a population under 50 ,000 , such as Temple City , re ce ive
funds th rou gh th e LAC DC and is referred to as a non-entitlement jurisdiction .
CDBG funds ca n only be used to accomplish certai n pre -designated national objectives
set forth by this federal program . Specifica l ly , funds need to address slum and bl ig hted
conditions , to assist o r benef it low-a nd moderate-income fam il ies , to assist with
emergency co nditions (e .g . na t ura l disasters) th reaten ing publi c heal th and safety , o r to
meet the needs of special population groups , such as the d isab led or senior citizens.
In the pa st, th e City has been able to use CDBG fu nds for th e Hous i ng Rehabilitation
Loan Program , the Handyworke r Assistan ce Pr ogram, the Youth Scholarship Program ,
the installation of Americans with Disabilities Act (ADA) approved surfacing fo r th e
playgrou nds at T e mpl e City Pa rk and Liv e Oak Park , the installation of ADA ramps at
various intersections th roughout t he City , and ADA improveme nts to publ ic park ing lots
along Las Tu nas Drive and T emple City Boulevard .
The City is required to allo cate $357 ,555 of CDBG fu nds for FY 2020-21 . T his includes
the City 's estimated annual allocation of $186 ,000 and $171 ,555 of unallocated funds
carry ing over from the prev ious fiscal year and/or prior home improvement loans paid
back to th e City . In the rare event th e City does not expe nd all of its FY 2019-20 CDBG
funds ; the City co uld hav e up to an additional $130 ,740 of CDBG funds to use on FY
2020 -21 programs . This would re sult in a tota l of $488,295 of CDBG fun ds available for
FY 2020-21 ; ho wever , a more conservative estimate of CDBG funds ava ilable for FY
2 020 -2 1 would be $357 ,555 . Since th e actual allocation or carry over funds may be
different from the estimates , staff is recommending that the City Council authorize the
City Manager to adjust the program allocations as needed to reflect the ava ila ble fund ing .
The City is requ ired to conduct a public hearing to solicit input from the community and to
e nsu re that th e proposed CDBG Proje cts m ee t community needs and HUD guidelines . The
City published a notice in th e newspaper (Atta c hm en t "B") notifying the publ ic of th e Ci ty'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 funding levels for FY 2020-21, as follows .
• Housing Rehabilitation Loan and Handyworker Grant Program:
Th is Housing Rehabilitation Loan Program has been popular in the community s ince
it was established in the mid-1990 's . In FY 2016-17 , the loan and grant program were
combined into one program to help streaml i ne projects and reduce administrative
work . The Housing Rehabilitation Loan Program provides deferred loan s (maximum
$35 ,000) to below moderate-income homeowners to make necessary major home
repairs and/or correct Building and Zoning Code violations. Since FY 2014-15 , the
City has assisted 15 below moderate-income households . A lien recorded on the
property requires that 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 , t he money is
recycled back into the C ity's CDBG Programs .
Due to a significant level of interest in the comm unity, the City brought back the
Handyworker Grant Program in FY 2015-16 . This program also assists income-eligible
households with necessary and essential home repairs (maximum $10 ,000). The
program is geared toward s sma ller repairs to help improve the quality of life , such as :
roof repa irs or replacement, window replacement , painting , stucco, electrical , and
plumbing repairs or repla cement. Since FY 2015-16 , the City has issued grants to 17
below moderate-i ncome households .
At the t ime of this report , there are approximately 20 residents on the waiting list for
this program. Sta ff recomm ends allocating $340 ,795 or approximately 69 .8 percent of
the CDBG funds in FY 2020-21 , which includ es $272 ,636 to assist below moderate-
income households with needed repairs and up to $68,159 of program admin istration
costs to cover the City's consultant.
• Asbestos/Lead-Based Paint Testing and Removal Program :
This 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 w ith the
loan and grant programs ; such abatement is requi red since federal funds are being
utilized . The funds vary based on the number of projects requiring asbestos and/or
lead-based paint testing , and required abatement work . Depending on the scope of
work , the asbestos and/or lead -based testing ca n range f rom $200 to $1 ,000 per
residence. If the proposed area of construction tests positive for asbestos and/or lead -
based pa i nt , abatement work is required and can cost up to $8,000 or more depend ing
on the amount of area being disturbed .
Staff recommends that the allocation be $110,000 or 22 .5 percent of the CDBG funds
for FY 2020-21 . This amount would provide for testing and abatement work , if needed ,
for the households that are assisted through the Housing Rehabilitation Loan Program
and Handyworker Grant Program. The $1 10 ,000 allocation 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 2020-2 1 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 CDBG Income Guidelines
C . CDBG FY 2020-21 Public Hearing Notice , Temple City Tribune , January 2 , 2020
ATTACHMENT A
RESOLUTION NO. 20-5455
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE
CITY, CALIFORNIA , APPROVING THE CITY 'S PROPOSED
COMMUNITY DEVELOPMENT BLO CK GRANT PROGRAM S FOR
FISCAL YEAR 2020-202 1
WHEREAS, in 1974, the President of the United Sta t es signed into law th e Hou sing
and Community Development Act of 1974 (Act); and
WHEREAS, the primarily goals of Title I of Act are to develop a v iable urban
communities by providing decent housing and suitable living environment, and expanding
economic opportunities for persons of low and moderate income; and
WHEREAS, the City of Temple City has participated in the Community Development
Block Grant (C DBG) with the County of Los Angeles for several years; and
WHEREAS, the City of Temple City desires to participate with the Los Angeles Urban
County CDBG Prog ram f or Fiscal Year 2020 -2021; and
WHEREAS, the City of Temple City has been notified of the availability of an estimated
$357,555 of CDBG funds for Fiscal Year 2020 -2 021, an allocation of $186,000 and $171,555 of
unallocated funds. The City of Temple City could have up to an additional $130,740 depending
on the final expenditures for Fiscal Year 2019 -2 020, for a total of $488,2 95 ; and
WHEREAS, on January 2, 2020, a public notice was published in the Temp le City
Tribune stati ng the intended CDBG -funded programs for FY 2020 -2021; and
WHEREAS, on January 21, 2020, the City Council of the City of Temple City conducted
a public hearing t o sol icit comments and suggestions form t he community for the utilization
of these funds.
NOW, THERE FORE , BE IT RESOLVED BY THE CITY COUNCIL OF T H E CITY O F TEMPLE
CITY, CAUFORNIA AS FOLLOWS:
SECTION 1 . The City Council finds that al l the fa ct s se t forth in the Recitals of this Re sol ution are
true and correct.
SECTION 2. That the Mayor, City Manager or thei r de signee are authorized and directed to submit
the City 's f inal Planning Summary for Fi sca l Year 2020-2 021 to t h e County of Lo s Angeles,
reflect i ng the funding allocation s se t forth here in . Should the City 's f i nal allocation be less or more
Reso lu tion No. 20-5455
Page 2 of 3
than the, the City Manager is authorized to modify each prog ram up to 150 percent of the figures
listed below:
Program Name HUD Activity Propose Use of Funds Proposed
Allocation
Hou si ng Low/Moderate Provid es deferred loans ($35,000) and $ 340,795
Rehabi l itation Housing grants ($10,000) to in come qualifi ed
Loan and single-fami ly household s to co rre ct code
Handyworke r viol ations and/or to provide dece nt, sa f e,
Grant Program and sa nitary hou sing i n Temp le City.
A sbesto s Testi ng Low/Moderate Pr ovides grants to qua lified low-and $ 110,000
and Rem ova l Hou sing moderate -income hou seh o ld s
Program parti ci pating in th e home improvement
program to test and abate asbe stos
and/o r l ea d -ba se d pa i nt.
Youth Scholarship Provid es scho larships t o children age s 17 $ 37,500
Program yea rs o ld and you nger in below
modera t e-inco m e fami li es al lowing t h em
to participate in va rious recreation
clas ses/activi t ies offered by the City's
Park s and Recreation Department.
SECTION 3 . The City Cl erk sha ll certify to the p assage and adoption of this reso lu t i on.
PASSED, APPROVED , AND ADOPTED this 21 51 day of January, 2020 .
Nanette Fish , Mayor
ATIEST: APPROVED AS TO FORM :
Peggy Ku o, City Clerk Greg Murphy, City Attorney
Resolution No. 20-5455
Page 3 of 3
I, Peggy Kuo, City Clerk of the City of Temple City, hereby certify that the foregoing
Resolution No. 20-5455 was adopted by said Council at the regular meeting held on the 21 st day
of January 2020, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN :
Counci lmember -
Counci l member -
Co un ci l m ember -
Council member -
Peggy Kuo, City Clerk
NUMBER · CDBG19-0002
FRHS19-0001
BFH19-0001
SUB JE CT: 20 19 INCOME GUIDELINES
DATE : MAY 24 , 2019 EFFECTIVE DATE : IMMEDIATELY
TO : PARTICIPATING CITIES
COMMUNITY -BASED ORGANIZATIONS
OTHER PUBLIC AGENCIES
COUNTY DEPARTMENTS
CDC DIVISIONS
PAGE 1 OF 2
The 2019 income guidelin es (effective Apr il 24, 2019) fo r use in Commun ity Devel opment Bl ock
Grant (CDBG), Bring ing Families Home (BFH), and Fam ily Reunificat ion Housing Subsidy (FRHS)
programs are listed below. These guideli nes should be used to determine compli ance with each
program's objective of provid ing benefit to income-eligible persons. They are also used in
determining eli gibility for the Public Housing and Sect ion 8 Programs and a re effective until a new
schedu le is issued .
The CDBG Program defines annual income according to the Section 8 Housing Ass istance Payments
Program, thus we are subject to the definition of "Extreme ly Low-Income," per the 2014 Co nso li dated
Appropriat ions Act. Since the 30 % Average Med ia n Income (AMI) limits are not the same as the
"Extremely Low-Income" lim its, the CDBG Program must use the income guidelines, as outlined
below.
2019 INCOME LIMITS
Number of Persons Extremely Low-Income Low-Income Moderate-Income
1 $21,950 $36,550 $58,450
2 $25,050 $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 $64,75 0 $103 ,550
8 $43 ,430 $68,950 $1 10,250
Please note t hat the 2019 median fami ly income for Los Angeles Cou nty is $73 ,100 .
Com mun ity & Econ o m i c Dev elop men t Divis ion -Grants Ma na gement Un it (CEDD -GMU)
Puffi ng D o llorS In to Action
Partic ipat ing Agencies
May 24, 20 19
Page Two
These guidelines refer 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 Pub lic Housing,
Section 8, CDBG, BFH, and FRHS Programs, the following is provided for your inform ation :
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 utilizi ng CDBG-approved Public SeNice 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 the BFH and FRHS Programs).
Should you have any questions please contact your Program Manager.
GS:DV.BT:JSB ab
K"\GMU COMMONIBULLETINS (Working F1le ·WORD Version)\C DBG\2019\2019 Income Guldelines .doc•
ATTACHMENT C
CITY OF TE MPLE CITY
PUBLIC HEARING NO T ICE
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
FOR FISCAL YEAR 2020-2021
Notice is hereby g iven 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 (H UD )
program . Specifically, these available Federal -Gove rnment funds must be used to eliminate
slum and blight conditions, assist low and moderate-income households , address "spot blight ",
emergency purposes , or to meet the needs of special population groups, such as the d isabled .
The City of Temple City is anticipated to have an allocation of $186 ,000 and an
additional $171 ,555 of unallocated prior yea rs ' funds available for FY 2020 -2021 , for a total of
$357 ,555 . The recommended CDBG programs may includ e but are not limited to :
Hous ing Rehabilitation Program -T his ongoing program offers deferred loans
(maximum $35,000) to below moderate-income homeowners to make necessary major
home repairs and/or correct Building and Zon ing Code violations . The program also
i ncl udes grants to ass ist income-eligibl e households with necessary and essential home
repairs (maximum $1 0 ,000 ). The program is geared towards smaller repa i rs to help
improve the quality of life , such as : roof repairs or replacement, window replacement ,
painting , stucco, electrica l, and plumbing repairs or replacement. Recommended
budget $225,000
Lead and Asbestos Testing and Remova l Program -Th is ongoing program offers
grants to home improvement loan and handyworker grant particip an ts whose homes
have tested pos itive for asbestos and/or lead-based pain t. 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 util ized . Recommended budget
$95 ,055 .
Youth Scholarship Prog ram -This is an ongoing program enabling Temple City youth
under the age of 18 to participate in various City-sponsored recreation activities . The
scho larship amount covers a portion of the rec reat ion activity fee for members of
elig ib le households . Recommended budget: $37 ,500 .
The above-enumerated amounts are based upon preliminary estimates from HUD and actual
amounts to be expended may be modified as part of the City's budget process to ref lect the
r------------------------
availabil ity of funds . The approved CDBG projects and accompanying budget w ill be subm itted
to the Coun ty of Los Angeles Commun ity Development Comm iss ion fo r inclu sion in its
application to HUD .
Any interested persons wish ing to p rov ide 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 Hal l by phone (626 ) 285-21 7 1. Written
comments may also be submitted to : City of Temple C ity Commun ity De velopment
Departmen t, 9701 Las Tunas Dri ve , Temp le City , CA 91780 . Comments w ill be received
t hrough Ja nuary 21 , 2020 .
Publ ished :
Date :
Temple City Tribune
January 2 , 2020
Peggy Kuo
City Clerk
NUMBER : 20-0006 SUBJECT: USING COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) TO RESPOND TO THE COVID-19 PANDEMIC
DATE : April7, 2020 EFFECTIVE DATE: IMMEDIATELY PAGE 1 OF 3
TO: PARTICIPATING CITIES
This bulletin provides information to Los Angeles Urban County CDBG participating cities on additional
funding, revisions to various program provisions, and shares ideas on adjustments cities and service
providers are making to provide a rapid response to the crit ical needs of residents and businesses impacted
by COVID-19 .
On March 27 , 2020, President Trump signed into law the Coronavirus Aid , Rel ief, and Economic Security
Act (CARES Act), which includes $5 billion in additional CDBG funding to prevent, prepare for, and respond
to the COVID -19 pandemic. The following is a breakdown of the funding and how HUD plans to a ll ocate it
nationwide :
• $2 billion as a direct allocation to state and local governments through the existing formula for all
grantees that received a Fiscal Year (FY) 2020-2021 CDBG allocation . The Los Angeles Urban
County has been allocated $13 ,668 ,315 .
);> The Los Angeles Urban County Participating City CDBG-CARES Act supplemental
allocations are included on page 4 of this bulletin. They are based on the current CDBG
allocation methodology and are expected to be available by late April.
• $2 billion allocated d irectly to state and local governments , at the discretion of the Secretary of th e
U .S. Department of Housing and Urban Development (HUD), using a new formula to be developed
by HUD including prioritizing risk of transmission of coronavirus, number of coronavirus cases
compared to the national average , and economic and housing market disruptions. HUD has not yet
determined the amount the Los Angeles Urban County will receive under this allocation method .
• $1 billion to States based on a new formula developed by HUD including taking into account public
health needs, risk of transmission of coronavirus , number of coronav irus cases compared to the
national average, and econom ic and housing market interruptions. States may implement activities
within both entitlement areas and in non-entitlement areas that do not receive a direct allocation
from HUD or participate in an Urban County program. It is currently unknown how much the Los
Angeles Urban County may receive directly or indirectly from the State of Californ ia.
Community Development Division-Grants Management Unit (CDD-GMU)
Putting Dollars Into Action
Participating Cities
April 7 , 2020
Page 2
Revisions to Program Provisions
The CARES Act identifies program provisions that allow revisions to the following CDBG administrative
requirements. These provisi ons apply to current and new FY 2019-2020 and FY 2020-2021 CDBG-funded
activities and new CDBG-CARES Act-funded act iv ities to prevent , prepare for, and respond to the COVID-
19 pandemic:
• Suspends the 15% cap on public services;
• Allows virtual hearings as long as national or local health authorities recommend social distancing
and limit public gatherings for public health reasons ; and
• Allows the public comment period for substantial amendments and for the FY 2020-2021 Action
Plan to be reduced from 30 days to five (5) days .
Responding to Community Needs
As our cities and other partner agencies have taken precautionary measures to keep their employees and
clients safe, many programs are adapting operations to remain focused on the continuity of essential
services . The majority of our cities and agencies are complying with the "safer at home" directive by
allowing personnel to work remotely and begin to implement alternat ive methods of service delivery . With
your input, an assessment of the operational status of your agencies has identified what programs have
proceeded, been modified , or suspended. It has revealed many examples of how agencies have remained
proactive in assessing community needs and remain ing operational through virtual services and other
modifications that adapt congregate activities to virtual services and other changes to program delivery .
On March 18, 2020 , through CDBG-EDL message "HUD Publishes CDBG Quick Guide to Support
Infectious Disease Response • COV/019'', we provided information on COVID19-CDBG eligible
activities. The following shares ideas on what has been learned about some preliminary local efforts and
adjustments you might consider to continue providing valuable serv ices in your community :
ORIGINAL ACTIVITY MODIFIED OR ENHANCED ACTIVITY
Senior Activities include onsite Virtual case management, referrals , and information services
senior club activities, mea ls , home via electronic devices. Meal programs modified to include
visits , case management, information additional deliveries and "grab & go", group online activities via
services and referrals . Zoom or other social platforms, virtual home visits, book clubs ,
games, links to adventure, hobby, and educational websites .
Hand~orker Program activities Staff can conduct program outreach distributing marketing
including minor home repairs and materials while assisting another existing program in the
correction of minor code violations. delivery of senior meals or other community efforts.
Home Rehabilitation Program Offer broadband infrastructure wiring or broadband (internet)
activities include providing service subsidy to income-eligible households.
grants/loans for eligible home repairs
for single-family residences.
Youth Enrichment Program Programs modified to offer teleservices, including online
provides onsite activities such as tutoring and virtual classes . "Grab & Go" activity packets may
homework assistance , youth be provided as a service . Re-program funds to purchase
development, and recreation equipment and supplies.
programs .
Participating Cities
April 7 , 2020
Page 3
Other eligible activities jurisdictions may consider are short-term subsistence payments for up to three (3 )
months of assistance on behalf of an individual or family for rent o r util ities and assisting small and micro
businesses through loans and grants.
Repurposing and Adding CDBG-Funded Programs
If your agency anticipates having unspent funds due to the suspension of currently funded activities or has
available unprogrammed funds, you may amend projects to increase the budgets of other current CDBG-
funded programs that are in greater need . As authorized in the CARES Act, participating cit ies may exceed
the 15% public service cap by allocating additional funds to CO VI D-19-related publ ic service programs.
Unless it is a local requirement, no public notice or Council approval is required .
To allocate additional funds to existing CDBG-funded activities that can respond to CO VI D-19 , please send
an email request with amendment details to your Contract Manager and they will process the amendment
for you . Approved modifications to existin g activities may begin immediately and do not have to wait for
the amendment to be executed . The deadline for amendments to existing CDBG-funded activities is
May 1, 2020.
To add a new project or cancel an existing CDBG-funded activity , the CARES Act has reduced the public
notice period from 30 days to 5 days. The Los Angeles Urban County Consolidated Plan Citizen
Participation Plan is being revised to not require City Council approva l for new projects . Unless it is a local
requirement, this will not be required for new CDBG-funded activit ies implemented under the CARES Act.
Further guidance on the process to add new activities utilizing CDBG-CARES Act Supplemental Funding
is forthcoming . We will also provide any additional information regarding additional funds and other
program requirements and opportunities as soon as it is received .
Thank you for your ongoing partnership. We look forward to wo rking with you in putting CDBG dollars into
action to help our residents and communities affected by the COVID-19 pandem ic.
Should you have any questions, please contact your Contract Manager.
Sincerely,
i7'h77~J>--/ /)y PB
DAVON BARBOUR, Director
Community & Econom ic Development Division
DB:DV :RW:ob
K:\G MU COMM ON\BULLETINS (Working File -W O RD Ve rsion)\C DBG\2 020\Us ing CDBG to respond to COVID-1 9.do cx
Enclosure
CDBG-CARES ACT SUPPLEMENTAL FUNDING
CITY $ ALLOCATION
AGOURA HILLS 44 ,646
ARCADIA 180,088
AVALON 24,702
AZUSA 241 ,825
BELL 290,958
BELL GARDENS 374 ,513
BEVERLY HILLS 100,414
CALABASAS 59,634
CERRITOS 116,563
CLAR EMONT 92 ,759
COMMERCE 74,890
COVINA 177 ,848
C UDAHY 22 0,908
CULVER CITY 130,389
DIAMOND BAR 137,962
DUARTE 9 7,824
ELSEGUNDO 46,359
HAWAIIAN GARDENS 117 ,977
HIDDEN HILLS 3 ,026
HERMOSA BEACH 37,479
IRWINDALE 5 ,625
LA CANADA-FLINTRIDGE 35 ,942
LA HABRA HEIGHTS 10,478
LA MIRADA 157,648
LA PUENTE -211 ,520
LA VERNE 90 ,230
LAWNDALE 194,224
LOMITA 89,52 7
MALIBU 39,450
MANHATTAN BEACH 65,663
MAYWOOD 255,354
MONROVIA 127,380
RANCHO PALOS VERDES 86,499
ROLLING HILLS ESTS 17,856
SAN DIMAS 83,006
SAN FERNANDO 136,373
SAN GABRIEL 186,148
SAN MARINO 30 ,806
SANTA FE SPRINGS 78 ,692
S IERRA MADRE 24 ,880
S IGNAL HILL 64,962
SOUTH EL MONTE 128,099
SOUTH PASADENA 7 3,528
TEMPLE CITY 123,206
TORRANCE 444,081
WALNUT 73,877
WEST HOLLYWOOD 138,241
WESTLAKE VILLAGE 18,250