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HomeMy Public PortalAbout19) 9C CDBG AllocationCity Council January 7, 2014 Page 2 of 6 2. On December 27, 2012, the City was informed of the 2013 income guidelines through a CDBG Bulletin (Attachment "A"). At this time, the 2014 income guidelines have not been released. The City is required to follow the 2013 income guidelines until further notice. 3. On October 22, 2013, the City was notified through a CDBG Bulletin (Attachment "B") issued by the LACDC of the City's anticipated allocation of $176,021 for FY 2014-2015. 4. On December 5, 2013, a public notice was published in the Temple City Tribune stating the intended CDBG-funded programs and allocations for FY 2014-2015 (Attachment "C"). ANALYSIS: The CDBG Program was established with the primary objective of developing viable communities by creating suitable living environments, maintaining and creating decent housing, and creating and maintaining job opportunities for low-and moderate-income persons. Every city receives an annual CDBG allocation based upon population. Cities in Los Angeles County with a population under 50,000 receive funds through the LACDC. Since Temple City has a population of 35,558, we receive CDBG funds through the LACDC. CDBG funds can only be used to accomplish certain pre-designated national objectives set forth by this federal program. Specifically, funds need to address slum and blighted conditions, to assist or benefit low-and moderate-income families, for emergency purposes, or to meet the needs of special population groups, such as the disabled or senior citizens. Due to the high average household income levels in the community, Temple City has been challenged in developing eligible programs. In the past, the City has been able to use CDBG funds for the Housing Rehabilitation Loan Program, the Handyworker Assistance Program, the Youth Scholarship Program, the installation of American with Disabilities Act (ADA) approved surfacing for the playgrounds at Temple City Park and Live Oak Park and the installation of ADA ramps at various intersections throughout the City. The City's CDBG funds allocation for FY 2014-2015 is estimated to be $176,021 (Attachment "A"). This figure may be adjusted by the LACDC based upon the eventual United States Department of Housing and Urban Development (HUD) allocation of CDBG funds distributed to the LACDC. Combined amounts of the programs below are more than the estimated allocation for FY 2014-2015. This is due to CDBG funds being carried over from previous years and program income (i.e., interest received from loans paid back from the Housing Rehabilitation Loan Program). If the allocation is more or City Council January 7, 2014 Page 3 of 6 less, staff will add or subtract funds from the proposed Housing Rehabilitation Loan Program and/or the associated Asbestos Testing and Abatement Program. 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 30-day notice in the newspaper (Attachment "C") notifying the public of the City's intended CDBG programs and allocations. For FY 2014-2015, it is staff's assessment that the following CDBG-funded programs continue at the funding levels recommended below for the community's benefit and in a manner consistent with the program constraints outlined above or the City Council has the option to modify the proposed allocations and/or direct City staff to explore alternative programs. • Housing Rehabilitation Loan Program: This on-going program provides deferred payment loans to extremely low-, low- and moderate-income homeowners to make necessary home repairs and/or correct Building and Zoning Code violations. This is a popular program with the community; there are approximately 50 people that have expressed interest in the program however, the number of households that qualify and move forward with improvements will be significantly less. If the City ultimately continues with this program, staff recommends that the loan amounts for the Housing Rehabilitation Program be increased from $25,000 to a maximum of $35,000. The recommended increase is due to the fact that the current $25,000 loan amount has not changed since the mid-1990's and some recent loan recipients have had to reduce scope of the project due to limited loan amounts. Staff recommends considering the higher amount of $35,000, so participants are able to do more comprehensive improvements. Staff is not recommending any changes to the deferred loan terms, and will continue to require that the loan be paid off if the property is sold, refinanced, a change of occupancy from owner-occupied to non-owner occupied, or a change of title. Staff suggests that the FY 2013-2014 allocation be $235,000, which includes $210,000 (i.e., equivalent to six $35,000 loans) to assist five below moderate-income households with needed repairs; the allocation of $235,000 also includes program administration costs of $25,000 to cover the City's housing consultant. • Asbestos/Lead-Based Paint Testing and Removal Program: This on-going program offers grants to home improvement loan 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 Housing Rehabilitation Program and such abatement is required since federal funds are being utilized. The amount of funds required for abatement vary on the number of loans processed requiring asbestos and/or lead-based paint testing, and required abatement work. City Council January 7, 2014 Page 4 of 6 Depending on the scope of work, the asbestos and/or lead-based testing can range from $500 to $2,000 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. Therefore, staff recommends that the FY 2014-2015 allocation be $45,000. This amount would provide for abatement work, if needed, for the households that are assisted through the Housing Rehabilitation Program. Further, the allocated funds will also cover the administration costs for the City's housing 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. • 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. For youths from extremely low-and low-income households, the scholarship would cover 75% of the fee. This is the most utilized CDBG program in the City, which typically expends all of the program funds by April or May of the program's fiscal year. The Youth Scholarship Program qualifies as a "public service" program, and under the HUD CDBG guidelines, a City can only allocate a maximum of 15% of its annual allocation towards public service programs. Staff recommends that the FY 2014-2015 allocation be $26,403, which is 15% of the City's annual allocation. • ADA Improvements: Option 1 -ADA Accessible Playground With the recent community workshops regarding the Parks and Open Space Master Plan, Community Development staff has been exploring ways to assist the Parks and Recreation Department to provide greater recreational opportunities in the City. City staff has determined that special needs children in the community as being an underutilized segment in regards to recreational opportunities. City staff knows of an ADA accessible playground in Pasadena called Reese's Retreat, which is the only universal playground in the San Gabriel Valley. Universal playgrounds utilize specialized playground equipment that not only serves able- bodied users, but also non-able bodied users (i.e., wheelchair accessible). City staff identified that a universal playground could be constructed utilizing CDBG funds, which would be a rare amenity in the San Gabriel Valley. One option would be to allocate $200,000 of FY 2014-2015 to explore the option of upgrading existing playground or constructing a new playground on City property that would be in full compliance with ADA guidelines. Once the specifications and City Council January 7, 2014 Page 5 of 6 bid package is accepted by the LAC DC, City staff will bring back the project to the City Council for approval. Option 2-ADA Curb Ramp Project In 2011, the City used CDBG funds to create an ADA curb-ramp improvement project that brought 63 curb ramps into compliance with ADA guidelines. Last year, the City created two additional ADA improvement projects (i.e., Temple City Boulevard sidewalk and public parking lot improvements) using CDBG funds to address potential issues with ADA compliance that focused on sidewalks and public parking lot improvements along Temple City Boulevard. The City Engineer recently informed City staff that there are still additional curb ramps that need to be brought into compliance with ADA guidelines. However, it is unknown how many curb ramps remain since there is not a current citywide assessment of non-compliant curb ramps. Staff will propose a mid-year budget adjustment that would allocate General Funds to allow the City Engineer to perform a citywide survey that will identify curb-ramps that need repairs. Another option would be to allocate $200,000 worth of FY 2014-2015 CDBG funds to correct the remaining curb-ramps that are out of compliance with ADA guidelines. In summary, staff is recommending that the FY 2014-15 CDBG funds be allocated to the City's on-going programs including: Home Improvement Program; Asbestos Testing and Abatement Program; and Youth Scholarship Program. City Council is also requested to consider installing new ADA compliant playground equipment, concurrent with City's upcoming Parks and Recreation Open Space Master Plan, or establish a new program to address the remaining curb-ramps in the community that do not comply with ADA standards. CONCLUSION: The City Council is requested to review and approve the above-mentioned CDBG programs and allocations for FY 2014-2015 or direct staff to revise the proposed CDBG programs and allocations as it relates to the City's ongoing ADA Improvements and Housing Programs. Once the program and allocations are approved by the City Council, they will be forwarded to the LACDC for their review and approval. FISCAL IMPACT: This action will tentatively impact the FY 2014-2015 City Budget by designating the expenditure of CDBG funds as follows: Housing Rehabilitation Loan Program: $235,000 City Council January 7, 2014 Page 6 of 6 Asbestos Testing and Removal Program: Youth Scholarship Program: American with Disabilities Act (ADA) Playground Improvements or ADA Curb Ramp Improvements: ATTACHMENTS: $ 45,000 $ 26,403 $200,000 A. CDBG Bulletin 12-0034-2013 CDBG Income Guidelines B. CDBG Bulletin 13-0026-Estimated Allocations for FY 2014-2015 C. CDBG FY 2014-2015 Public Hearing Notice, Temple City Tribune, December 5, 2013 FISCAL YEAR (FY) 2014-2015 COMMUNITY DEVELOPMENT BLOCK GRANT PLANNING ESTIMATES CITY AGOURA HILLS ARCADIA ARTESIA AVALON AZUSA BELL BELL GARDENS BEVERLY HILLS BRADBURY CALABASAS CERRITOS CLAREMONT COMMERCE COVINA CUDAHY CULVER CITY DIAMOND BAR DUARTE ELSEGUNDO HAWAIIAN GARDENS HERMOSA BEACH IRWINDALE LA CANADA-FLINTRIDGE LA HABRA HEIGHTS LA MIRADA LA PUENTE LA VERNE LAWNDALE LOMITA MALIBU MANHATTAN BEACH MAYWOOD MONROVIA RANCHO PALOS VERDES ROLLING HILLS ESTS SAN DIMAS SAN FERNANDO SAN GABRIEL PLANNING ALLOCATION AMOUNT $63,667 303,294 109,072 35,088 426,553 451,676 556,568 -568,988* -12,420 165,185 3,918 83,449 182,934 134,856 120,186 315,593 328,852 189,939 -134, 167* 55,772 201,787 139,997 52,847 139,296 66,556 9,334 58,727 14,664 224,918 330,808 134,795 306,244 122,162 46,014 100,055 363,803 221,147 140,471 22,029 132,565 227,101 -344,541* -117,440 312,982 PlANNING AllOCATION CITY AMOUNT SAN MARINO 38,295 SANTA FE SPRINGS 108,266 SIERRA MADRE 44,603 SIGNAL HILL 57,379 SOUTH EL MONTE 197,430 SOUTH PASADENA 120,870 TEMPLE CITY 176,021 TORRANCE 619,030 WALNUT 109,865 WEST HOLLYWOOD 224,230 WESTLAKE VILLAGE 24,434 • Section 108 annual repayment amount for FY 2014-2015. ATTACHMENT C CITY OF TEMPLE CITY PUBLIC HEARING NOTICE COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS Notice is hereby given that the City Council of the City of Temple City will consider the use of Community Development Block Grant Funds for fiscal year 2014-2015 at their meeting of January 7, 2014, at 7:30p.m. in the City Council Chambers of the City Hall, located at 5938 Kauffman Avenue, Temple City. 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, emergency purposes, or to meet the needs of special population groups, such as the disabled. Additionally, the Community Development Commission has advised Temple City that it may utilize CDBG Funds to address "spot blight". During the next fiscal year, starting July 1, 2014 through June 30, 2015, it is anticipated that the programs and the amounts to be expended, will be as follows: Housing Rehabilitation Program ($225,000); Lead and Asbestos Testing and Removal Program ($45,000); American with Disabilities Act (ADA) Playground Improvements ($200,000) and Youth Scholarship Program ($26,403). The above-enumerated amounts are based upon preliminary estimates of HUD funds available through the Los Angeles County Community Development Commission. The actual amounts to be expended may be modified as part of the City's budget process to reflect the availability of funds. Any interested persons wishing to provide input on housing and community development as it relates to the use of the 2014-2015 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 January 7, 2014. Published: Temple City Tribune Date: December 5, 2013 Peggy Kuo City Clerk