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HomeMy Public PortalAbout11) 10A_CDBG Discussion (sr-ag edits)_v6 w attachmentsCOMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM D ATE: November 16, 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 DISCUSSION ITEM RECOMMENDATION: The City Council is requested to provide direction for the Community Development Block Grant (CDBG) activities the City should fund for Fiscal Year 2022-2023. BACKGROUND: On September 7, 2021, the City Council requested that City staff bring back a discussion item relating to potential CDBG activities for FY 2022-2023. ANALYSIS: Every year the City receives CDBG funds from the Federal government through the Los Angeles Community Development Authority (LACDA). The funds typically average $200,000 a fiscal year, however, there could be additional funds available that carry over from previous fiscal years or housing rehabilitation loans paid back to the City. In January, the City Council holds a public hearing regarding how the next fiscal year’s CDBG funds should be spent. For the City’s CDBG funds for FY 2022-2023, at the direction of the City Council, staff is providing additional information prior to the January public hearing on the types of projects the City Council can fund with CDBG funds. Staff is seeking feedback from the City Council on any new programs it might want to explore for next fiscal year or if the current set of programs is meeting the City’s needs. All CDBG activities (programs) must meet a national objective that typically benefits low- or moderate-income (“L/M Income”) persons or is used to eliminate blight. Below is a list of CDBG Program Objectives: AGENDA ITEM 10.A. City Council November 16, 2021 Page 2 of 5 •L/M Income Area Benefit •L/M Income Limited Clientele •L/M Income Housing •L/M Income Jobs •Slum or Blighted Area •Spot Blight •Urban Renewal Completion •Urgent Needs In addition to meeting a national objective, the activity (program) must be an eligible activity through the CDBG Program. The CDBG funds may be used for a variety of activities, including acquisition of property, rehabilitation of residential and non-residential structures, construction and improvements to of public city facilities accessed by the public and improvements, provision of public services, and economic development and job creation/retention activities. Table 1, below, provides a list of some of the City’s programs/projects that have utilized CDBG funds over the past 20 plus years. Table 1: Existing and Previous CDBG Programs in Temple City Program Name Program Description Budget Housing Rehabilitation Assists lower-income households with loans and, or grants to perform deferred home repairs. L/M Income Housing. $150,000 Asbestos and Lead- Based Program Associated with the housing rehabilitation program. Provides grants to houses that require testing, abatement, and or removal of hazardous building materials. L/M Income Housing. $40,000 Youth Scholarship Program Assists lower-income households with scholarships to pay for a portion of class registration fees for youths participating in recreation programs offered by the City. This is the City’s public service program, which is limited to 15 percent of the City’s annual CDBG allocation. L/M Income Limited Clientele. $35,000 Temple City Library Doors The City paid for the replacement of the doors at the main entrance of the library. The project was eligible since the previous doors were not in compliance with the Americans with Disabilities Act (ADA) standards. L/M Income Limited Clientele. $100,000 ADA Access Ramp and Sidewalk Repair The City paid for the repairs of existing access ramp and sidewalks on, or adjacent to major streets that were not in compliance with ADA standards. L/M Income Limited Clientele. $140,000 City Council November 16, 2021 Page 3 of 5 Temple City Boulevard and City Parking Lot ADA Improvements The City paid for the repairs of existing City parking lot ADA stalls and access ramps that were not in compliance with ADA standards. L/M Income Limited Clientele. $260,000 Playground Surface Replacement The City paid for the removal of the existing playground surface material barrier (sand) and replaced it with new rubberized material to comply with ADA standards. L/M Income Limited Clientele. $130,000 Emergency Temporary Rental Assistance Program The City used Coronavirus Aid, Relief, and Economic Security (CARES) Act funds to assist lower-income households that were impacted by the COVID-19 pandemic. Grants were issued to qualifying households to pay for a portion of rent and, or utilities. L/M Income Clientele. $208,000 Emergency Small Business Assistance Program The City used CDBG funds to temporarily assist small businesses impacted by the COVID-19 pandemic with grants to help pay for rent, payroll, and utilities. The business owner(s) and, or their employee(s) needed to qualify as living in a lower- income household. L/M Income Jobs. $382,000 Gray shaded cells above indicate one-time projects POSSIBLE PROJECTS Below is a list of popular projects that the City could establish that are offered by nearby participating cities in Los Angeles County. Table 2 includes a brief analysis of the program’s potential benefits and downsides. Table 2: Analysis of Possible Projects Program Name Analysis Code Enforcement The City could establish a program to pay for staff time to focus on low- income census tracts in the City to eliminate blight (abandoned vehicles, bulky items, trash and debris, overgrown vegetation, unsafe and illegal additions, fences, or walls in hazardous conditions, etc.). Staff working on this program would need to log hours and report a separate timecard for the CDBG Program. Administrative Services Department would be required to create a detailed breakdown of salary and benefit information based on the hours the employee(s) spend on this CDBG Program for reporting purposes. Additionally, the City’s low-income census tracts make up a very small portion of the City (see Attachment “A”) so staff does not believe this program would be a good use of funds. Slum or Blighted Area or Spot Blight. City Council November 16, 2021 Page 4 of 5 PROJECTS DEEMED NOT APPLICABLE There are many other programs that LACDA allows, however these programs do not fit Temple City’s objectives, or they present other difficulties. For example, given the City’s relatively small CDBG allocation funding the construction of a new Senior Center would not be financially feasible. Additionally, establishing a historic preservation program or employment training program does not match the City’s current objectives. Attached as Appendix “B” is a list of programs that can be funded through CDBG funds. If the City Council is interested in investigating any of these programs, staff can meet with LACDA staff to better understand the specific program limitations and opportunities. CHALLENGES The City has received approximately $200,000 for the past few years. The City receives a limited amount of CDBG funds due to having a smaller population, a limited amount of people living in poverty, and a limited number of overcrowded households (Attachment Senior Programs The City could establish a program providing various public services to senior citizens who are 55 years of age or older. Services could include preparing and delivering meals, welfare checks, and dial-a-ride for those who need to get to a store or doctor. This would be required to utilize the City’s “public service” component of the City’s CDBG Program, which is limited to 15 percent (approximately $30,000) of the City’s annual CDBG allocation that is currently used on the City’s Youth Scholarship Program. An alternative funding source would be required to continue to offer youth scholarships for City recreation programs. L/M Income Limited Clientele. Temporary Rental Assistance Program The state’s Housing Is Key program has a budget of $5.2 billion with $4.1 billion remaining as of November 2, 2021. There have been 88 households assisted in Temple City with assistance totaling almost $1 million as of November 2, 2021. Staff does not believe it is necessary to provide additional funds to this program given the funding available through the state. Additionally, this could be funded through Permanent Local Housing Allocation (PLHA) funds. L/M Income Housing. Economic Development Program Like the small business grant program offered last FY, the City could establish a business assistance program offering grants and, or loans if a business owner, or one of their employees, meet the household income requirements. The City could choose to assist businesses that are still struggling from the COVID-19 pandemic or create a program that is open to any small business owner. Staff does not believe it is necessary to establish a COVID-19 relief program given that the state has lifted most of the restrictions for businesses for almost five months. Additionally, it is unknown how much interest there would be for either program. Staff would need to survey businesses in the City to see how much interest there would be. L/M Income Jobs. City Council November 16, 2021 Page 5 of 5 “A”). The City is limited in its choice of programs and the size of projects because of the small CDBG allocation. If the City were to use its CDBG funds on other programs or projects, the City would need to find another funding source for the Housing Rehabilitation Program since it is included as a program in the City’s Housing Element. The Housing Rehabilitation Program is a major component of the City’s current Housing Element and the draft Housing Element in that it conserves and improves the conditions of existing stock of affordable housing. This assists in keeping low- and moderate-income homeowners in their houses. The City’s Youth Scholarship Program has been a high priority for the City with an annual budget of approximately $30,000 per year, which is a limit of 15 percent of a city’s annual allocation. If the City were to fund another public service programs, such as a senior services program, the City would need to utilize another funding source to continue the Youth Scholarship Program. Another benefit of using the existing programs is that these programs have been vetted, reviewed, and audited by LACDA. The staff has a good track record of managing these programs and can administer the program efficiently. CITY’S STRATEGIC GOALS: City Council’s direction for the City’s future CDBG funds will promote the City’s Strategic Goals of Public Health and Safety, Quality of Life, Economic Development, and, or Citizen Education and Communication. FISCAL IMPACT: This item does not have an impact on the FY 2021-2022 City Budget. ATTACHMENTS: A.Temple City Census Data B.List of Possible CDBG Programs ATTACHMENT A CDBG Projects Deemed Not Applicable • Public Facilities and Improvements • Senior Centers • Centers for the Disabled/Handicapped • Homeless Facilities (Not Operating Costs) • Youth Centers/Facilities • Neighborhood Facilities • Parks, Recreational Facilities • Parking Facilities • Solid Waste Disposal Facilities • Flood and Drainage Facilities • Street Improvements • Child Care Centers/Facilities for Children • Tree Planting • Fire Station/Equipment • Health Facilities • Abused and Neglected Children’s Facilities • Asbestos Removal • Facilities for AIDS Patients (Not Operating Costs) • Operating Costs of Homeless/AIDS Patients Program • Legal Services • Transportation Services • Substance Abuse Services • Battered and Abused Spouses • Employment Training • Crime Awareness/Prevention • Fair Housing Activities • Tenant/Landlord Counseling • Child Care Services • Health Services • Abused and Neglected Children • Mental Health Services • Screen for Lead-Based Paint/Lead Hazards Poisoning • Homeownership Assistance (Not Direct) • Rental Housing Subsidies (HOME Tenant-Based Rental Assistance) • Security Deposits • Operating Costs of Homeless/AlDS Patients Programs • Construction of Housing • Direct Homeownership Assistance • Rehabilitation: Multi-Unit Residential • Public Housing Modernization • Rehabilitation: Other Publicly Owned Residential Buildings • Energy Efficient Improvements • Acquisition For Rehabilitation • Residential Historic Preservation • Commercial/lndustrial Land Acquisition/Disposition • Commercial/lndustrial Infrastructure Development • Commercial/lndustrial Building Acquisition, Construction, Rehabilitation • Other Commercial/Industrial improvements • Rehabilitation: Publicly or Privately Owned Commercial/lndustrial • Economic Development Direct: Technical Assistance • Fair Housing Activities • HOME Administration/Planning Cost • HOME Community Housing Development Organization Operating Expenses • Clearance and Demolition • Clean-up of Contaminated Sites/Brownfields • Urban Renewal Completion • Relocation • Loss of Rental Income • Privately Owned Utilities • Non-Residential Historic Preservation • CDBG Non-Profit Organization Capacity Building • CDBG Assistance to Institutions of Higher Education • CDBG Operation and Repair of Foreclosed Property