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