HomeMy Public PortalAbout19) 9C CDBG AllocationCity Council
January 7, 2014
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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
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January 7, 2014
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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.
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January 7, 2014
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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
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January 7, 2014
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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
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January 7, 2014
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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