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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