HomeMy Public PortalAbout08_8A_CDBG FundCOMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DATE: February 2, 2021
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
Via: Scott Reimers, Interim Community Development Director
By: Adam Gulick, Associate Planner
SUBJECT: ALLOCATE ADDITIONAL COMMUNITY DEVELOPMENT BLOCK
GRANT FUNDS FOR THE FISCAL YEAR 2020-21 SMALL BUSINESS
GRANT PROGRAM AND ESTABLISH THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAMS AND ALLOCATIONS
FOR FISCAL YEAR 2021-22
RECOMMENDATION:
The City Council is requested to:
1.Hold a public hearing regarding the proposed additional Community Development
Block Grant (CDBG) funds for Fiscal Year (FY) 2020-21 and proposed CDBG
programs and allocations for FY 2021-22;
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 21-5509 (Attachment “A”) approving a substantial amendment to the
FY 2020-21 Small Business Grant Program and establishing the CDBG-funded
programs and allocations for FY 2021-22. The programs below include the City’s
Allocation for FY 2021-22 and the City’s Unallocated CDBG funds:
FY 2020-21
Small Business Grant Funds FY 2020-21 $276,500 (49.1%)
City’s Unallocated CDBG Funds $143,036 (25.4%)
Borrowed Portion of City’s Allocation for FY 2021-22 $143,440 (25.5%)
Total FY 2020-21 Small Business Grant Program Budget: $562,976
AGENDA
ITEM 8.A.
City Council
February 2, 2021
Page 2 of 5
FY 2021-22
Housing Rehabilitation Loan and Grant Program: $ 36,000 (54.5%)
Asbestos Testing and Removal Program: $ 10,000 (15.2%)
Youth Scholarship Program: $ 20,000 (30.3%)
Total FY 2021-22 CDBG Budget: $ 66,000
BACKGROUND:
1. On January 6, 2021, LACDA staff contacted City staff to see if the City would be
interested in partnering with LACDA for Round 2 of a joint LACDA-City Small Business
Grant Program. LACDA partnered with six other non-entitlement cities (Azusa,
Commerce, Duarte, La Cañada Flintridge, Malibu, and Maywood) for Round 1 of the
LACDA-City Small Business Grant Program. LACDA staff processed small business
grant applications on behalf of the cities. Cities were responsible for conducting
outreach and involved with ensuring the randomly selected businesses did not have
any outstanding violations.
2. On January 7, 2021, a public notice was published in the Temple City Tribune stating
the intended CDBG-funded programs and allocations for FY 2021-22 (Attachment
“B”).
3. On January 14, 2021, City staff was informed that the City’s CDBG allocation for FY
2021-22 will be slightly higher than last FY. However, the final City’s final allocation
will not be known until late February or early March.
4. On January 25, 2021, a revised public notice was published in the Temple City Tribune
adding the recommendation of a substantial amendment to the FY 2020-21 Small
Business Grant Program established to assist businesses impacted by the COVID-19
pandemic (Attachment “C”).
ANALYSIS:
The City is required to allocate $209,440 of CDBG funds for FY 2021-22. Since the actual
allocation 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
available funding. The City is required to conduct a public hearing to solicit input from the
community and to ensure that the proposed CDBG Projects meet community needs and
HUD guidelines. The City published a revised notice in the newspaper (Attachment “C”)
notifying the public of the City’s intended CDBG programs and allocations for FY 2021-22.
Staff recommends that the programs and relative funding levels for FY 2021-22, as follows.
City Council
February 2, 2021
Page 3 of 5
▪ FY 2020-21 Small Business Grant Program
Since the City has Unallocated CDBG funds available and given that the COVID -19
pandemic is still impacting businesses 10 months later, staff recommends increasing
the FY 2020-21 Small Business Grant Program budget from $276,500 to $562,976 by
adding $143,036 of Unallocated CDBG funds and $143,440 of the City’s CDBG
allocation for FY 2021-22.
When the City Council established this program, City staff anticipated funding for
approximately 30 grants, however, the final budget provided by LACDA ($276,500)
was slightly lower than anticipated so the City can only provide approximately 26
$10,000 grants. City staff has contacted all 131 Temple City businesses that submitted
interest forms. There were 51 businesses that submitted an application. Thirty-two
applications were set aside because the business indicated that it had received
COVID-19 related financial assistance from a government agency (Payroll Protection
Program, Small Business Administration Disaster Loan, etc.). At the time of writing this
report, five grants have been issued with another six applications being reviewed by
City staff. The program has been challenging for City staff, especially with
administering the Temporary Rental Assistance Program at the same time. Due to the
City’s guidelines giving priority to businesses that had not received other COVID
related funds, the number of grants given was limited. Staff recommends removing
this provision since 131 interest forms have been reviewed and five grants have been
funded.
Given the doubling of the small business grant program’s funds and expected increase
in applications, staff recommends partnering with the LACDA to review and fund grants
in a timely manner. The LACDA has presented an opportunity for the City to expedite
the review process for this program by participating in Round 2 of the LACDA-City
Small Business Grant Program. The LACDA is not proposing to charge the City any
money to process grants on the City’s behalf. The City will do the outreach and will be
involved with the selection process. City staff reached out to the cities that participated
in Round 1 of the LACDA-City Small Business Grant Program (Azusa, Commerce,
Duarte, La Cañada Flintridge, Malibu, and Maywood) and the cities that responded
said they were satisfied with LACDA and indicated that they would participate again.
▪ FY 2021-22 Housing Rehabilitation Loan and Handyworker Grant Program:
This Housing Rehabilitation Loan Program has been popular in the community since
it was established in the mid-1990’s. The Housing Rehabilitation Loan Program
provides deferred loans (maximum $35,000) to below moderate-income homeowners
to make necessary major home repairs and/or correct Building and Zoning Code
violations.
City Council
February 2, 2021
Page 4 of 5
At the time of this report, there are approximately 18 residents on the waiting list for
this program. The program is supported by the Housing Element and it is especially
helpful to the community preservation staff, who often refer residents to the program
to assist in addressing code enforcement issues. Staff recommends allocating
$36,000 for FY 2021-22, which includes $30,000 to assist below moderate-income
households with needed repairs and up to $6,000 of program administration costs to
cover the City’s consultant.
▪ FY 2021-22 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.
Depending on the scope of work, the asbestos and/or lead -based testing can range
from $200 to $1,000 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 or more depending on the amount of area being disturbed .
Staff recommends that the allocation be $10,000 for FY 2021-22. 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 $10,000 allocation includes up to $2,000 of 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.
▪ FY 2021-22 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 eligible households. 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. However, due to the COVID-19
pandemic resulting in the cancellation of City-sponsored recreation activities, no
scholarships have been issued since March 2020.
Due to the continued uncertainty of the COVID-19 pandemic, staff recommends that
the allocation be $20,000 for FY 2021-22.
CITY STRATEGIC GOALS:
Approval of the substantial amendment to the FY 2020-21 Small Business Grant Program
and establishing the recommended CDBG Programs and Allocations for FY 2021-22 will
further the City’s Strategic Goals of Public Health and Safety, Quality of Life, and
Economic Development.
City Council
February 2, 2021
Page 5 of 5
FISCAL IMPACT:
This action will modify the FY 2020-21 City Budget by adding $143,036 of Unallocated
CDBG funds and $143,440 of FY 2021 -2022 CDBG funds to the FY 2020-21 Small
Business Grant Program. This action will also impact the FY 2021-22 City Budget by
designating an estimated $66,000 worth of CDBG funds.
FY 2020-21
Small Business Grant Program FY 2020-21 $276,500
City’s Unallocated CDBG Funds $143,036
Borrow Portion of City’s Allocation for FY 2021-22 $143,440
Total CDBG Budget for FY 2020-21 $562,976
FY 2021-22
Housing Rehabilitation Loan and Handyworker Grant Program: $ 36,000
Asbestos Testing and Removal Program: $ 10,000
Youth Scholarship Program: $ 20,000
Total CDBG Budget for FY 2021-22 $ 66,000
These programs are funded entirely with CDBG funds, so there is no impact on the
General Fund.
ATTACHMENTS:
A. Resolution 21-5509
B. CDBG FY 2021-2022 Public Hearing Notice, Temple City Tribune, January 7, 2021
C. CDBG FY 2020-2021 and FY 2021-2022 Public Hearing Notice, Temple City
Tribune, January 25, 2021
RESOLUTION NO. 21-5509
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA, APPROVING A SUBSTANTIAL AMENDMENT TO THE CITY’S COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMS FOR FISCAL YEAR 2020-2021 AND ESTABLISHING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMS FOR FISCAL YEAR 2021-2022.
WHEREAS, in 1974, the President of the United States signed into law the Housing and Community Development Act of 1974 (Act); and
WHEREAS, the primarily goals of Title I of Act are to develop a viable 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 (CDBG) 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 Program for Fiscal Year 2020-2021 and 2021-2022; and
WHEREAS, the City of Temple City has been notified of the availability of an estimated $352,476 of CDBG funds, which include the City’s allocation of $209,4400 for FY 2021-22 and
$143,036 of unallocated CDBG funds that can be used on FY 2020-21 and FY 2021-22; and
WHEREAS, on January 7, 2021, a public notice was published in the Temple City Tribune stating the City’s intended CDBG-funded programs for FY 2021-22; and
WHEREAS, on January 25, 2021, a revised public notice was published in the Temple City Tribune stating the City’s intention of a substantial amendment to the FY 2020-21 Small
Business Grant Program and intended CDBG-funded programs for FY 2021-22; and
WHEREAS, on February 2, 2021, the City Council of the City of Temple City conducted a public hearing to solicit comments and suggestions form the community 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 Council finds that all the facts set forth in the Recitals of this Resolution are
true and correct.
ATTACHMENT A
Resolution No. 21-5509 Page 2 of 4
SECTION 2. That the Mayor, City Manager or their designee are authorized and directed to submit
the substantial amendment for FY 2020-21 and the City’s final Planning Summary for FY 2021-22
to the County of Los Angeles, reflecting the funding allocations set forth herein. Should the City’s
final allocation be less or more than the, the City Manager is authorized to modify each program
up to 150 percent of the figures listed below:
Temple City FY 2020-21 CDBG Programs and Allocations
Program Name HUD Activity Program Description Allocation New Allocation
Housing Rehabilitation Loan and
Handyworker Grant Program
Low/Moderate Housing Provides grants ($10,000) to income qualified single-family households to
correct code violations and/or to provide decent, safe, and sanitary housing in Temple City.
$ 36,000 No Change
Asbestos Testing and Removal Program
Low/Moderate Housing Provides grants to qualified low- and moderate-income households participating in the home improvement program to test and abate asbestos and/or lead-based paint.
$ 10,000 No Change
Youth Scholarship Program Low/Moderate Clientele Provides scholarships to children ages 17 years old and younger in below moderate-income families allowing them to participate in various recreation classes/activities offered by the City's Parks and Recreation
Department.
$ 20,000 No Change
Temporary Rental Assistance Program
Low/Moderate Clientele Provides rental assistance up to $1,000 a month, for three months, to qualified
low/moderate income
households that have been
impacted by the COVID-19
pandemic.
$183,000 No Change
Resolution No. 21-5509 Page 3 of 4
Temple City FY 2020-21 CDBG Programs and Allocations, Continued
Program Name HUD Activity Program Description Allocation New Allocation
Small Business Grant Program Low/Moderate Job Creation or Retention
Provides grants up to $10,000 to businesses that have been impacted by the
COVID-19 pandemic. The
business must create,
retain, or rehire an
employee that lives in a
low/moderate income
household.
$276,500 $562,976 (adding $143,036 of
unallocated
funds and
$143,440 of
FY 2021-22
Allocation)
Temple City FY 2021-22 CDBG Programs and Allocations
Program Name HUD Activity Program Description Proposed Allocation
Housing Rehabilitation Loan and Handyworker Grant Program
Low/Moderate Housing Provides grants ($10,000) to income qualified single-family households to correct code violations and/or to provide decent, safe, and sanitary housing in Temple City.
$ 36,000
Asbestos Testing and Removal Program
Low/Moderate Housing Provides grants to qualified low- and moderate-income households participating in the home improvement program to test and abate asbestos and/or lead-based paint.
$ 10,000
Youth Scholarship Program Low/Moderate Clientele Provides scholarships to children ages 17 years old and younger in below moderate-income families allowing them to participate in various recreation
classes/activities offered by the City's
Parks and Recreation Department.
$ 20,000
Resolution No. 21-5509 Page 4 of 4
SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution.
PASSED, APPROVED, AND ADOPTED this 2nd day of February, 2021.
________________________
Tom Chavez, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _______________________
Peggy Kuo, City Clerk Greg Murphy, City Attorney
I, Peggy Kuo, City Clerk of the City of Temple City, hereby certify that the foregoing Resolution No. 21-5509 was adopted by said Council at the regular meeting held on the 2nd day of February 2021, by the following vote: AYES: Councilmember – NOES: Councilmember – ABSENT: Councilmember – ABSTAIN: Councilmember – ________________________ Peggy Kuo, City Clerk
CITY OF TEMPLE CITY
PUBLIC HEARING NOTICE
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
FOR FISCAL YEAR 2021-2022
Notice is hereby given that the City Council of the City of Temple City will consider the
use of Community Development Block Grant Fu nds for Fiscal Year (FY) 2021-2022 at their
teleconference meeting on February 2, 2021, at 7:30 p.m.
Pursuant to Section 3 of Executive Order N-29-20, issued by Governor Newson on
March 17, 2020, cities are allowed to hold City Council meetings via tele conferencing and
members of the public can observe and address the meeting telephonically or electronically.
To listen to the meeting telephonically, please call 1 -408-650-3123, Access Code 598-072-533
or through City’s live webcast on Youtube, ConnectWith TC.
Community 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 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 disabled.
The City of Temple City is anticipated to have an allocation of $209,440 and an
additional $143,036 of unallocated prior years’ funds available for FY 2021-2022, for a total of
$352,476. The recommended CDBG programs may include but are not limited to:
Housing 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-eligible households with necessary and essential home
repairs (maximum $10,000). The program is geared towards smaller repairs to help
improve the quality of life, such as: roof repairs or replacement, window replacement,
painting, stucco, electrical, and plumbing repairs or replacement. Recommended budget
$36,000.
Lead and Asbestos 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 with the loan and grant programs ; such
abatement is required since fed eral funds are being utilized. Recommended budget
$10,000.
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 eligible
households. Recommended budget: $20,000.
Small Business Grant Program – The City established a small business grant program
last year to assist businesses impacted by the COVID-19 pandemic. The program offers
grants up to $10,000 to businesses that have been impacted by the COVID-19
pandemic and have owners or employees that live in a household that is at or below the
moderate-income level. Recommended budget: $286,476.
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 reflect the
availability of funds. The approved CDBG projects and accompanying budget will be submitted
to the County of Los Angeles Community Development Commission for inclusion in its
application to HUD.
Any interested persons wishing to provide inp ut on housing and community
development as it relates to the use of the 2021-2022 CDBG funds may contact the
Community Development Department at City Hall by phone (626) 285-2171. Written
comments may also be submitted to: City of Temple City Community Development
Department, 9701 Las Tunas Drive, Temple City, CA 91780. Comments will be received
through February 2, 2021.
Peggy Kuo
City Clerk
Published: Temple City Tribune
Date: January 7, 2021
CITY OF TEMPLE CITY
REVISED PUBLIC HEARING NOTICE
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
FOR FISCAL YEAR 2021-2022 AND
A SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2020-2021
SMALL BUSINESS GRANT PROGRAM ESTABLISHED TO ASSIST BUSINESSES
IMPACTED BY THE COVID-19 PANDEMIC
Notice is hereby given that the City Council of the City of Temple City will consider the
use of Community Development Block Grant (CDBG) Funds for Fiscal Year (FY) 2021-2022,
and consider a substantial amendment to the FY 2020-2021 Small Business Grant Program at
their teleconference meeting on February 2, 2021, at 7:30 p.m.
Pursuant to Section 3 of Executive Order N-29-20, issued by Governor Newson on
March 17, 2020, cities are allowed to hold City Council meetings via teleconferencing and
members of the public can observe and address the meeting telephonically or electronically.
To listen to the meeting telephonically, please call 1 -408-650-3123, Access Code 598-072-533
or through City’s live webcast on Youtube, ConnectWithTC.
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 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 disabled.
The City of Temple City is anticipated to have an allocation of $209,440 for FY 2021-
2022. It is recommended that the City Council allocate $143,440 for the FY 2020-2021 Small
Business Grant Program, resulting in a balance of $66,000. The recommended CDBG
programs may include, but are not limited to:
Housing 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-eligible households with necessary and essential home
repairs (maximum $10,000). The program is intended for smaller repairs to help
improve the quality of life, such as: roof, windows, painting, stucco, electrical, and
plumbing. Recommended budget $36,000.
Lead and Asbestos Testing and Removal Program – This ongoing program offers
grants to home improvement loan and handyworker gra nt 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 home improvement program;
such abatement is required since federal funds are being utilized. Recommended
budget $10,000.
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 recre ation activity fee for members of eligible
households. Recommended budget: $20,000.
City staff has reviewed all the applications submitted for the FY 2020-2021 Small
Business Grant Program established to assist businesses impacted by the COVID-19
pandemic. City staff has determined additional funds are needed for the program. It is
recommended that $143,036 of the City’s Unallocated CDBG funds and $143,440 of the City’s
FY 2021-2022 CDBG funds are added to the FY 2020-2021 Small Business Grant Program.
Recommended budget $562,976.
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 reflect the
availability of funds. The approved CDBG projects and accompanying budget will be submitted
to the County of Los Angeles Community Development Authority (LACDA) for inclusion in its
application to HUD.
Any interested persons wishing to provide input on housing and community
development as it relates to the use of CDBG funds for FY 2020-2021 and FY 2021-2022 may
contact the Community Development Department at City Hall by phone (626) 285-2171.
Written comments may also be submitted to: City of Temple City Community Development
Department, 9701 Las Tunas Drive, Temple City, CA 91780. Comments will be received
through February 2, 2021.
Peggy Kuo
City Clerk
Published: Temple City Tribune
Date: January 25, 2021