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Home My Public Portal About13) 9.A. CDBG Fund AllocationCity Council January 15, 2013 Page 2 for FY 2013-2014. 4. On December 27, 2012, the City was informed of the 2013 income guidelines through a CDBG Bulletin (Attachment "C"). ANALYSIS: The Community Development Block Grant Program was established with primary objective of developing viable communities by creating suitable living environments, maintaining and creating decent housing, and creating and maintaining job opportunities for low and moderate income persons. Communities which are eligible for Community Development Block Grant (CDBG) funds, otherwise known as "entitlement cities" (i.e., populations larger than 50,000), are required to prepare and submit a "Consolidated Plan" that establishes goals for the use of CDBG funds. Grantees are also required to hold public meetings to solicit input from the community, ensuring that proposed projects are aligned with the community's most urgent needs. Since Temple City is a sub-recipient of the LACDC, each fiscal year CDBG funds are distributed by the LACDC. CDBG funds may only be used to accomplish certain pre- designated national objectives set forth by this federal program. Specifically, funds must be used to address slum and blighted conditions, to assist or benefit low and moderate- income families, for emergency purposes, or to meet the needs of special-population groups, such as the disabled or senior citizens. The following is a summary of the annual household income limits for 2013: Family Size 1 2 3 4 5 6 Household Income Limits $46,400 $ 53,000 $59,650 $66,250 $ 71 ,550 $ 76 ,850 Due to the high average household income levels in the community, Temple City has been challenged in developing eligible programs. In the past, the City has been able to use CDBG funds for the Housing Rehabilitation Loan Program , the Handyworker Assistance Program, the Youth Scholarship Program , the installation of American with Disabilities Act (ADA) approved playground equipment in Temple City Park and Live Oak Park, and the installation of ADA ramps at various intersections throughout the City. Due to the high average household income levels in the community, Temple City has been challenged in developing eligible programs. In the past, the City has been able to use CDBG funds for the Housing Rehabilitation Loan Program , the Handyworker City Council January 15, 2013 Page 3 Assistance Program, the Youth Scholarship Program, the installation of American with Disabilities Act (ADA)-approved playground equipment in Temple City Park and Live Oak Park, and the installation of ADA ramps at various intersections throughout the City. Due to reductions in federal funding, the City's CDBG Program has experienced significant cuts over the past several years. Moreover, the City's allowable use of CDBG funds for its own administration costs to participate in the program was reduced from $27,000 to $13,500 during FY 2011-2012, and ultimately eliminated in FY 2012-2013. The City is is still able to utilize up to 20% of each program's allocation for administration purposes. Furthermore, the City was informed on November 13, 2012 (Attachment "A") that the City's CDBG funding allocations for FY 2013-2014 would be distributed based on the Census Bureau's 2006-2010 American Community Survey (ACS) data. Per the ACS, the community has experienced a decrease in poverty and overcrowding levels since 2000. Based on these reduced poverty and overcrowding figures, the City's annual CDBG allocation was reduced to reflect the new reduced poverty and overcrowding levels in the community. The City's CDBG allocation for FY 2013-2014 is estimated to be $179,086 (Attachment "A"). This figure may be adjusted by the LACDC based upon the eventual United States Department of Housing and Urban Development (HUD) allocation of CDBG funds to the LACDC. It should be noted that the combined amounts of the programs below may be more than the estimated allocation for FY 2013-2014. This is due to funds being carried over from previous years, "program income" or interest received from loans paid back from the Housing Rehabilitation Loan Program. For FY 2013-2014, it is staff's assessment that the following CDBG-funded programs can be continued at the funding levels recommended below for the community's benefit and in a manner consistent with the program constraints outlined above. • Housing Rehabilitation Program: This on-going program provides deferred payment loans to extremely low-income, low-income and moderate-income homeowners to make necessary home repairs and/or correct Building and Zoning Code violations. With the Housing Rehabilitation Program, the maximum loan amount is $25,000 with a simple interest rate of 3%. Payment is deferred until the sale of the property, change of occupancy, or a change of title. Staff suggests that the FY 2013-2014 allocation be $100,000 to assist four low-income households with needed repairs. City Council January 15, 2013 Page 4 • Asbestos/Lead~Based Paint Testing and Removal Program: This on-going program offers grants to home improvement loan 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 Housing Rehabilitation Program and such abatement is required since federal funds are being used . Depending on the scope of work, the asbestos and/or lead-based testing can range from $500 to $2,000 per residence. If the proposed area of construction tests positive for asbestos and/or lead-based paint, abatement work is required and can cost up to $8,000. Therefore, staff recommends that the FY 2013-2014 allocation be $25,000. This would provide for abatement if and as necessary for the four households that could be assisted through the Housing Rehabilitation Program. • 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 would cover a portion of the recreation activity fee cost for members of eligible households. For youths from low and extremely low-income households the scholarship would cover 75% of this cost, and for youths from moderate- income households, 50%. The Youth Scholarship Program qualifies as a "public service" program, and under the HUD CDBG guidelines a City can allocate a maximum of 15% of its annual allocation towards public service programs. Staff suggests that the FY 2013-2014 allocation be $26,862, which is 15% of the City's annual allocation. • ADA Curb Cut Program: City staff initially identified 80 curb ramps in the City that were out of compliance in February 2011. However, during follow-up assessment by the City Engineer additional curb ramps were identified. Due to time restraints. the LACDC directed the City to move forward with the 63 curb ramps (the other 17 curb ramps were covered under the Safe Routes to School grant) that were previously approved by them. Last year the City Council allocated $384,000 to this program to address 63 curb ramps that were out of compliance with ADA standards. The project began construction on November 26, 2012, and last week the contractor indicated that 40 curb ramps have been completed so far. It is anticipated that the remaining 23 curb ramps will be completed by January 25, 2013. Staff estimates that there are an additional 15 curb ramps that are out of compliance with ADA standards. Staff will request that the City Engineer conduct a City Council January 15, 2013 Page 5 citywide assessment of deficient sidewalk and curb ramps by March 2013. The new comprehensive list will allow staff to develop a systematic approach to correcting non-compliant sidewalk and curb ramps. It should be noted that curb ramp and sidewalk improvements are subject to the review and approval of the LACDC, to ensure improvements are in compliance with HUD regulations. Staff recommends that the City continue the ADA Curb Cut Program for FY 2013-2014 with an allocation of $75,000. CONCLUSION: The City Council is requested to review and approve above-mentioned CDBG programs and allocations for FY 2013-2014. Once the allocations are approved by the City Council, they will be forwarded to the LACDC for their review and approval, as the LACDC is the agency that distributes CDBG funds to Temple City. FISCAL IMPACT: This action will tentatively impact the FY 2013-2014 City Budget by designating the expenditure of CDBG funds as follows: Housing Rehabilitation Loan Program: Asbestos Testing and Removal Program: Youth Scholarship Program: ADA Barrier Removal Program: ATTACHMENTS: $100,000 $ 25,000 $ 26,862 $ 75,000 A. CDBG Bulletin 12-0026-Estimated Allocations for FY 2013-2014 B. Public hearing notice for CDBG Programs FY 2013-2014 C. CDBG Bulletin 12-0034-Income Guidelines for 2013 Participating Cities November 13, 2012 Page 2 To get a better perspective on HUD's changes, we encourage our participating cities to review the publication "Redistribution Effect of Introducing 2010 Census and 2005-2009 ACS Data Into the CDBG Formula." The publication is available through the following link: http:ljwww.huduser.org/portal/publications/pdf/cdbg redis eff.pdf. In this publication, HUD's Office of Policy Development and Research goes into great detail on the methodology behind the use of both the Decennial Census and the ACS data. Attachment I provides a summary of the differences between the Decennial Census and the ACS. FY 2013-2014 Estimated CDBG Allocations [or Participating Cities The Los Angeles Urban County, as well as each participating city's allocation is based on Formula A or what HUD refers to as "population variable" and takes into account population, poverty, and overcrowding. Formula B or "growth lag variable" consists of population, growth lag, and pre-1940 housing. Calculations are made for both variables and then a grantee's allocation is based on the larger of the two {2) formulas less a pro rata reduction. The Los Angeles Urban County grant is based on Formula A. Beginning with FY 2013-2014, the Community Development Commission (CDC} will use the 2010 census as well as the ACS data to distribute CDBG funding throughout the Los Angeles Urban County. More specifically, the CDC will use the 2010 census for population and the most recent 2006-2010 ACS estimates for poverty and overcrowded housing. The ACS data for the cities has been downloaded from the Census Bureau website at http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml (click on Table 817001 for poverty and Table 825014 for overcrowded housing). For comparison purposes, we have Included the poverty and overcrowded housing data for both the 2006-2010 ACS and 2000 census in Attachments II and Ill, respectively. Attachment IV provides estimates of each city's FY 2013-2014 CDBG allocation based on the use of the new ACS data. Again, we are providing these estimates in advance for planning purposes, and so that you are aware of how the new data will affect your city's CDBG allocation. If you have any questions regarding the ACS or your city's estimated CDBG allocation, please contact Frank Cardenas, Development Specialist, of my staff, at (323) 890-7165. Sincerely, L T~lt:!::~ Community Development Block Grant Division TG:U:RB:RBW:HR:FC:rb K:\CDBG Common\BUllETINS\ACS City CDBG Estimates 13-14\ACS Cities Est Allee 13-14.0ocx Attachments Attachment I Decennial Census and the American Community Survey (ACS) Below is a summary of the differences In the Decennial Census and the ACS and other facts for your information. 1. SAMPLE SIZE • 2000 census mailed to one (1) in six (6) households (about 18 million). • ACS includes only 3 million households per year. 2. PERIOD ESTIMATES • Decennial Census counts the population as of April1 of the year in question. • ACS is administered year round to create multiyear estimates (to increase sample size). i. 1-year estimates for places with a population of more than 65,000; ii. 3-year estimates for places with a populatron of more than 20,000; and iii. 5-year estimates for all geographies down to the census tract. 1. HUD uses the 5-year ACS estimates for the CDBG formula. 3. SMALL SAMPLE SIZE • Decennial Census has much larger sample size. • ACS's 5-year estimates has full sample size of only 12.5% of households-considerably less than the 16.7% of households that received the long form of the 2000 census. 4. PRECISION AND ACCURACY OF DATA • The ACS has a higher sampling error than the Decennial Census long Form Survey because of a smaller sample size. • Professional survey staff administer the ACS versus temporary workers that helped administer the 2000 Census Long Form Survey. 5. RESIDENCE RUlE • Decennial Census requires that households receiving the long Form Survey respond, if the sampling household unit was their "usual place of residence" as of April 1'1 of the year in question. A household that lived in Arizona from September to May, but spent its summer in a vacation home In Maine would not have responded to a census form mailed to the Maine home. • ACS uses "current residence," which is defined as a house where you have lived, or plan to live for at least two (2) months. If the household in the previous example received an ACS survey at its Maine residence in June, they would be considered a current resident of that housing unit and would respond to the survey. i. This rule can substantially affect the population being surveyed in places with a large percentage of seasonal residents. For instance, if Arizona households that summer in Maine are consistently high-income households, the ACS would indicate higher household incomes in Maine and lower household incomes in Arizona when compared to the 2000 census. K:\COBG COMMON\BULLETINS\ACS City CDBG Estimates 13-14\Attachment 1-2012·13 ACS lnfo.docx Attachment II Poverty Counts 2006-2010 ACS City 2000 Poverty Poverty Difference %Change AGOURA HILLS 704 805 101 14.35% ARCADIA 4,150 4999 !M9 20.46% ARTESIA 1.822 1472 [ ~ ~ I I ·19.21% AVALON 327 421 ~4 28.75% A2USA 7,926 7464 l-1b.'l -5.83% BELL 6,762 8034 [I ~··1 • ·8.31% BELL GARDENS 11,879 9507 I, '. -19.97% BEVERLY HILLS 3,058 2668 -12 75% BRADBURY 17 49 32 188.24% CALABASAS 663 1345 6P.:I 103.02% CLAREMONT 2,328 1879 1 ~ ,j (o\ -19.29% COMMERCE 2,223 1661 I>,_,, ·25.28% COVINA 5,408 5061 !J,--6 42% CUDAHY 6,819 5798 11 I . -14 97% CULVER CITY 3,306 2792 \' -15 60% DIAMOND BAR 3,369 2535 'I,, -24 76% DUARTE 2,353 2167 (\•· -7.90% EL SEGUNDO 726 541 (185) -25.48% HAWAIIAN GARDENS 3.251 2255 (996· -30.64% HERMOSA BEACH 839 993 154 18.36% IRWINDALE 240 164 ,,, -31.67% LA CANADA-FLINTRIDGE 662 646 l jr,\ -25.06% LA HABRA HEIGHTS 182 113 I'") -37.91% LA MIRADA 2.542 2390 j 111)J -5.98% LA PUENTE 7.656 4606 L' l':HJj -37 23% LA VERNE 1.464 2060 596 40.71% LAWNDALE 5,457 5118 ··'··: -6.21% LOMITA 2.208 1728 ·1h1 J -21.74% MALIBU 945 707 (238) -25.19% MANHATTAN BEACH 1,104 1043 (61) -5.53% MAYWOOD 6.628 6161 (667) -9 77% MONROVIA 4,797 3576 II" -25.45% RANCHO PALOS VERDES 1,188 1601 413 34.76% ~< jl I I .JI ' If, t J ' 0 0 0 0.00% ROLLING HILLS ESTS 126 136 8 6.25% SAN DIMAS 2,167 1767 II(: ~18.46% SAN FERNANDO 4,450 4050 l'i(l;,, -8.99% SAN GABRIEL 6.140 5368 .. If(' -12.57% SAN MARINO 643 451 IJ ·29.66% SANTA FE SPRINGS 2.109 1392 ·717} -34.00% SIERRA MADRE 389 744 355 91.26% SIGNAL HILL 1,584 645 (739} -46.65% SOUTH EL MONTE 3,957 3130 (827) -20.90% SOUTH PASADENA 1,466 1668 202 13.78'/o TEMPLE CITY 3,069 2473 . 6• -19.42% WALNUT 1,942 1445 (497) -25.59% WEST HOLL YWOOO 4,086 4580 494 12.09% WESTLAKE VlLLAGE 213 278 65 30.52% X:\COBG COMMDN\BUUEliNS\ACS City CDBG Estimates 13·14\Attochment II-20J3-l4 PoVcrty.doc>< Attachment Ill Overcrowding Counts 2000 Census 2006-201 0 ACS Cit:r: Overcrowding Overcrowding Difference %Change AGOURA HILLS 179 40 I' -77_65% ARCADIA 1,998 833 t',l•' -58.31% ARTESIA 1,169 584 (585) ·50 04% AVALON 216 264 48 22.22% AZUSA 3,688 1,960 ( 1,728) -46,85% BELL 4,917 2,427 (2.490) ·50.64% BELL GARDENS 5,950 3.245 (ZJOS) -45.46% BEVERLY HILLS 1,000 377 (623) ·62.30% BRADBURY 10 9 (1) -10.00% CALABASAS 123 12 (111) ·90.24% CLAREMONT 508 245 (26J) -51.77% COMMERCE 1,270 789 (481) -37.87% COVINA 2,035 1.274 (7GI) ·37.40% CUDAHY 3.116 1.856 I '• -4044% CULVER CITY 1,519 587 I' ' -61.36% DIAMOND BAR 1,578 409 ' H.~ t -74.08% DUARTE 1,189 602 ... ._It -49.37% EL SEGUNDO 333 106 '.:, .Q8.17% HAWAIIAN GARDENS 1,595 762 I I -52.23% HERMOSA BEACH 212 17 -91.98% IRWINDALE 88 30 -65.91% LA CANADA-FLINTRIDGE 291 41 I"·' ·85.91% LA HAORA HEIGHTS 30 27 'I -10.00% LA MIRADA 1,408 1.094 •·I -22.30% LA PUENTE 3.733 1.911 t ,;I}~ -48 81% LA VERNE 511 269 !.,' -47 36% LAWNDALE 2.982 1,548 1,1_1\ -48.09% LOMITA 973 559 ' 11,\ -42.55% MALIBU 141 27 ' ill -80.85% MANHATTAN BEACH 220 80 !!:1 I ·63.64% MAYWOOD 3.735 2.152 I.•· '! -42.36% MONROVIA 1,859 782 II I• -57.93% RANCHO PALOS VERDES 536 278 ., -48.13% l•jl-0 (I 0.00% ROLLING HILLS ESTS 52 56 7.69% SAN DIMAS 582 312 -46.39% SAN FF.RNANOO 2,546 1.036 I I -59.31% SAN GABRIEL 3.069 1,319 '111 I -57.02% SAN MARINO 150 13 -91.33% SANTA FE SPRINGS 1,089 621 ll -42.98% SIERRA MADRE 86 37 -56.98% SIGNAL HILL 689 199 -71.12% SOUTH EL MONTE 2,328 1,117 ., I -52.02% SOUTH PASADENA 552 403 ,'1 -26.99% TEMPLE CITY 1.744 618 -64.56% WALNUT 709 222 II H I -68.69% WEST HOLLYWOOD 1275 381 I I ·~I -70.12% WESTLAKE VILLAGE 27 17 I I -37.04% ~.\COBG COMMON\BULLET!NS\ACS City COBG Estimates 13·14\Attaohmenllll ·1013·14 OVercrowding.doe~ Attachment IV Community Development Block Grant (CDBG) Program Formula Allocation Fiscal Year 2013·2014 Estimate 2010 Census 2006·2010 ACS 2006·2010 ACS 2013-14 Ci!l: PoEulation Poverty Overcrowding Estimate AGOURA HILLS 20,330 805 40 S.•.!t.,7t~ ARCADIA 56.364 4999 833 s·\rtt• ·n-. ARTESIA 16.522 1472 584 s 110 . .1/ AVALON 3,728 •121 264 $l~ t~tl£ AZUSA 46,361 7464 1,960 !--IJ 1.30< BELL 35.477 8034 2.427 !.-1 ··~.:;.)J BELL GARDENS 42.072 9507 3,245 L-·~o.n1 BEVERLY HILLS 34,109 2568 377 ! 16~; ~E2 BRADBURY 1,048 49 9 s~1,gr:; CI'LABASAS 23.058 1346 12 l:fH IJOl CLAREMONT 34.926 1879 245 s 1 Jt' ~fl l COMMERCE 12.823 1661 789 fl£'2 7-;·1 COVINA 47.796 5061 1,274 fl<'l.Go'• CUDI'HY 23.805 5798 1,856 t3h.c;7q CULVER CITY 38,883 2792 587 f!Y3.2~1 DIAMOND BAR 55,544 2535 409 ;;>[15 1!11 DUARTE 21,321 2167 602 '·14:.4Jl ELSEGUNDO 16,654 541 106 $51. 71H HAWAIIAN GARDENS 14.254 2255 762 .t t4t ,1 ii HERMOSA BEACH 19,506 993 17 sr;; 11 , IRWINDALE 1,422 164 30 ;"" '97 LA CANADA-FLINTRIDGE 20,246 646 41 S5'· c>r LA HABRA HEIGHTS 5.325 113 27 i11l ~,, LA MIRADA 48,527 2390 1,094 S228.8J5 LA PUENTE 39.816 4806 1,911 $J35.56D LA VERNE 31,063 2060 269 $137,143 LAWNDALE 32,769 5118 1,548 $311,577 LOMITA 20,256 1728 559 $124,290 MALIBU 12,645 707 27 $46,815 MANHATIAN BEACH 35.135 1043 80 $101,798 MAYWOOD 27,395 6161 2.152 SJ70,1J9 MONROVIA 36.590 3576 782 5224.998 RANCHO PALOS VERDES 41.643 1601 278 5142,918 ., ' ~· Ji. II 0 0 0 so ROLLING HILLS ESTS 8.057 136 56 522.-113 SAN DIMAS 33,371 1767 312 51 J•l.b7~ SAN FERNANDO 23,645 4050 1.036 ~l.Il,O!ih SAN GABRIEL 39,718 5368 1,319 SJ ld ·I.IJ SAN MARINO 13,147 451 13 >.l8 qc.' SANTA FE SPRINGS 16.223 1392 621 .5.11t,,': ,')~ SIERRA MADRE 10,917 744 37 ~k;.J8() SIGNAL HILL 11,016 845 199 foLHIJ. SOUTH EL MONTE 20,116 3130 1,117 f~JiJ.hfJ~ SOUTH PASADENA 25.619 1668 403 • l;?;:}j(!J TEMPLE CITY 35,558 2473 618 ; , !'i Cii6 WALNUT 29.172 1445 222 ;, 11 71~ WEST HOLLYWOOD 34.399 4580 381 $228.135 WESTLAKE VILLAGE 8,270 278 17 $24.BGO TOTAL PARTICIPATING CITIES 1,226,651 $7 892.696 K:\CDBG COMMON\BULLETlNS\ACS City COBG E.st>mates 13·14\Attachment' IV· 2013·14 Allocat10n.docx CITY OF TEMPLE CITY PUBLIC HEARING NOTICE ATTACHMENT B Notice is hereby given that the City Council of the City of Temple City will consider the use of Community Development Block Grant Funds for fiscal year 2013-2014 at their meeting on January 15, 2013, at 7:30 p.m. in the City Council Chambers of the City Hall, located at 5938 Kauffman Avenue, Temple City. Community Development Block Grant (CDBG) Funds must be used to achieve the stated national objectives of the Department of Housing and Urban Development (HUD) program. Specifically, the Federal-Government funds must be used to eliminate slum and blighted conditions, assist low and moderate-income households, emergency purposes, or to meet the needs of special population groups, such as the disabled. During the next fiscal year, starting July 1, 2013 through June 30, 2014, it is anticipated that the programs and the amounts to be expended, will be as follows: Housing Rehabilitation Program ($100,000); Lead and Asbestos Testing and Removal Program ($25,000); ADA Access Ramp and Sidewalk Improvements ($75,000); and Youth Scholarship Program ($26,862). The above-enumerated amounts are based upon preliminary estimates of HUD funds available through the Los Angeles County Community Development Commission. The actual amounts to be expended may be modified as part of the City's budget process to reflect the availability of funds. Any interested persons wishing to provide input regarding the Temple City's proposed 2013-2014 CDBG programs and amounts may contact the Community Development Department at (626) 285-2171 . Written comments may also be submitted to: City of Temple City Community Development Department, 9701 Las Tunas Drive, Temple City, California 91780. Comments will be received through January 15, 2013. Published: Date: Temple City Tribune December 13,2012 Peggy Kuo City Clerk