HomeMy Public PortalAbout15) 8A_CDBG_Staff Report CDBG Program Amendments w attachmentCOMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
DAT E: September 7, 2021
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
Via: Scott Reimers, Community Development Director
By: Adam Gulick, Associate Planner
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SUBSTANTIAL AMENDMENTS FOR FY 2021-2022
RECOMMENDATION:
The City Council is requested to:
1.Hold a public hearing regarding substantial amendments to the City’s Community
Development Block Grant (CDBG) programs for Fiscal Year (FY) 2021-22; and
2.Adopt Resolution 21-5549(Attachment “A”) approving substantial amendments to the
CDBG program allocations for FY 2021-22.
BACKGROUND:
1.On February 2, 2021, the City Council established the CDBG programs and
allocations for FY 2021-22.
2.On July 20, 2021, City staff provided an update to the City Council regarding the
CDBG programs that focused on COVID-19 relief. City staff informed the City Council
that there would be a sizable balance in the City’s unallocated CDBG funds and that
City staff would bring back the item for a public hearing at the first meeting in
September 2021.
3.On August 7, 2021, a public notice was published in the Pasadena Star News
regarding the recommended substantial amendments to the FY 2021-22 CDBG
programs.
AGENDA
ITEM 8.A.
City Council
September 7, 2021
Page 2 of 4
ANALYSIS:
UNALLOCATED CDBG FUNDS:
Any CDBG funds that are not used during FY 2020-21 are placed in the City’s Unallocated
CDBG balance. The City’s Unallocated CDBG balance also includes any housing
rehabilitation loans that are paid back. The City’s current Unallocated CDBG balance is
$149,907.
The City’s Unallocated CDBG funds can be used on the FY 2021-22 programs the City
Council already established or can be used to create new CDBG programs. Under the
City Manager’s present authority, which allows him to adjust programs up to 50 percent
of the annual total program budget, the City Manager could assign $62,500 of unallocated
funds into existing FY 2021-22 programs. Any amendment larger than 50 percent of the
annual budget is considered a substantial amendment, which requires action by the City
Council at a public hearing and a 30-day review and comment period.
CHANGES TO FY 2021-22 CDBG PROGRAMS AND ALLOCATIONS:
The Council approved the following CDBG programs and allocations for FY 2021-22:
Housing Rehabilitation Program: $ 80,000
Asbestos and Lead Program: $ 20,000
Youth Scholarship Program: $ 25,000
Total $125,000
HOUSING REHABILITATION PROGRAM:
This program has assisted households since the mid-1990’s with needed home repairs
to lower-income owner occupied households. For the past few years, there have been
approximately 20 residents on the waiting list for the Housing Rehabilitation Program. City
staff recommends allocating funds to this program to help reduce the current wait time,
which is around two years from when residents submit an interest form to when they start
the qualifying process. Specifically, staff recommends allocating $120,000 of the
unallocated funds to this program for an overall budget of $200,000. This will include
$160,000 available for housing rehabilitation projects and up to $40,000 for program
administrative costs to cover the City’s consultant. The additional funds will assist three
to four more houses, depending on the size of the loans.
Housing Rehabilitation Program: $ 80,000
Unallocated Funds: $120,000
Recommended Budget $200,000
ASBESTOS AND LEAD-BASED PAINT TESTING AND ABATEMENT PROGRAM:
This program is in conjunction with the Housing Rehabilitation Program. Since the CDBG
Program uses federal funds, the City is required to test the area where work is being done
for asbestos and lead-based paint. As additional funds are being added to the Housing
Rehabilitation Program, staff recommends allocating $19,907 of the unallocated funds to
City Council
September 7, 2021
Page 3 of 4
this program for an overall budget of $44,908. This will include $35,925 available for
testing, containment, and, or abatement, and up to $8,983 for program administrative
costs to cover the City’s consultant.
Lead and Asbestos Program: $ 20,000
Unallocated Funds: $ 24,907
Recommended Budget $ 44,907
YOUTH SCHOLARSHIP PROGRAM:
The City has offered a Youth Scholarship Program to help lower-income households pay
for youth recreation activities since the mid-1990’s. . The Youth Scholarship Program
qualifies as a “public service” program. Under the CDBG guidelines, a maximum of 15
percent of the City’s annual CDBG allocation can be used for public service programs.
Staff recommends adding $5,000 of unallocated funds to this program to increase the
available balance to approximately 15 percent of the City’s annual CDBG allocation. The
new total for the program would be $30,000; the City does not use CDBG funds for City
staff time or consulting costs for this program.
Youth Scholarship Program: $ 25,000
Unallocated Funds: $ 5,000
Recommended Budget $ 30,000
CITY’S STRATEGIC GOALS:
City Council’s direction for the City’s Unallocated CDBG funds promotes the City’s
Strategic Goals of Quality of Life and Economic Development.
FISCAL IMPACT:
This action will modify the FY 2021-22 City Budget by adding Unallocated CDBG funds
to the CDBG Programs for FY 2021-22. This action will impact the FY 2021-22 City
Budget by designating an estimated $149,907 worth of CDBG funds as follows:
Original FY 2021-22 CDBG Program Allocations
Housing Rehabilitation Program: $ 80,000
Asbestos Testing and Removal Program: $ 20,000
Youth Scholarship Program: $ 25,000
Total CDBG Budget for FY 2021-22 $125,000
City Council
September 7, 2021
Page 4 of 4
Revised FY 2021-22 CDBG Program Allocations
Housing Rehabilitation Program: $200,000
Asbestos Testing and Removal Program: $ 44,907
Youth Scholarship Program: $ 30,000
Total CDBG Budget for FY 2021-22 $274,907
These programs are funded entirely with CDBG funds, so there is no impact on the
General Fund.
ATTACHMENT:
A. Resolution 21-5549
RESOLUTION NO. 21-5549
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA, APPROVING SUBSTANTIAL AMENDMENTS TO THE CITY’S 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 2021-2022; and
WHEREAS, the City of Temple City has been notified of the availability of an estimated $149,907 of unallocated CDBG funds that can be used on FY 2021-2022 CDBG Programs; and
WHEREAS, on August 7, 2021, a public notice was published in the Pasadena Star-News stating that the City Council will consider amending the FY 2021-2022 CDBG Programs for by adding $149,907 of unallocated CDBG funds; and
WHEREAS, on September 7, 2021, the City Council of the City of Temple City conducted a public hearing to solicit comments and suggestions from the community for the utilization of these additional CDBG 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.
SECTION 2. That the Mayor, City Manager or their designee are authorized and directed to submit
substantial amendments for FY 2021-2022 to the County of Los Angeles, reflecting the funding
allocations set forth herein. Should the City’s final unallocated CDBG balance be less or more
than $149,907, the City Manager is authorized to modify each program up to 50 percent of the
allocations below:
ATTACHMENT A
Resolution No. 21-5549 Page 2 of 3
Temple City FY 2021-2022 CDBG Programs and Allocations
Program Name HUD Activity Program Description Proposed
Allocation
Housing
Rehabilitation
Loan and
Handyworker
Grant Program
Low/Moderate
Housing
Provides loans ($35,000) and 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.
$200,000
(increased by
$120,000)
Asbestos Testing and Removal Program
Low/Moderate Housing Provides grants to income qualified households participating in the housing rehabilitation program to test and abate asbestos and/or lead-based paint.
$ 44,907 (increased by $24,907)
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.
$ 30,000
(increased by
$5,000)
SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution.
PASSED, APPROVED, AND ADOPTED this 7th day of September, 2021.
________________________
Vincent Yu, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _______________________
Peggy Kuo, City Clerk Greg Murphy, City Attorney
Resolution No. 21-5549 Page 3 of 3
I, Peggy Kuo, City Clerk of the City of Temple City, hereby certify that the foregoing
Resolution No. 21-5549 was adopted by said Council at the regular meeting held on the 7th day
of September 2021, by the following vote:
AYES: Councilmember –
NOES: Councilmember –
ABSENT: Councilmember –
ABSTAIN: Councilmember –
________________________ Peggy Kuo, City Clerk