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HomeMy Public PortalAbout09) 8A Community Development Block Grant Funds Allocations for FY 2016-17City Council January 5, 2016 Page 2 of 5 CDBG funds from the Los Angeles County Community Development Commission (LACDC) since 1974. 2. On April 2, 2015, the City was informed of the 2015 income guidelines through a CDBG Bulletin (Attachment "A"). At this time, the 2016 income guidelines have not been released. The City is required to follow the 2015 income guidelines until further notice. 3. On October 22, 2015, the City was notified at the LACDC's Quarterly Meeting that the anticipated FY 2016-2017 funding levels would be similar to this FY which is $176,000. 4. On November 30, 2015, a public notice was published in the Temple City Tribune stating the intended CDBG-funded programs and allocations for FY 2016-2017 (Attachment "B"). 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, such as Temple City, receive 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, to assist with emergency conditions (natural disaster) threatening public health and safety, 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, the installation of ADA ramps at various intersections throughout the City, and ADA improvements to public parking lots along Las Tunas Drive and Temple City Boulevard. The City is required to allocate $304,400 of CDBG funds for FY 2016-2017. This includes the City's estimated annual allocation of $176,000 and $128,400 of unallocated funds that have carried over from the previous fiscal year and program income (i.e., interest received from loans paid back from the Housing Rehabilitation City Council January 5, 2016 Page 3 of 5 Loan Program). The $176,000 amount 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. If the allocation is more or 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 "B") notifying the public of the City's intended CDBG programs and allocations. For FY 2016-2017, 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. Alternatively, 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 loans to extremely low-, low-and moderate-income homeowners to make necessary home repairs and/or correct Building and Zoning Code violations. This has been a popular program in the community since it was established in the mid-1990's. Two years ago the City increased the loan amount from $25,000 to $35,000 to allow for more comprehensive improvements. Last year the City removed the three percent interest for the loans due to the lack of participation in the loan program. Those changes have proven to make the program more attractive and allowed the City to meet drawdown requirements set by the LACDC. Staff suggests allocating $168,000 in FY 2016-2017, of which includes $134,400 to assist four below moderate-income households with needed repairs and $33,600 of program administration costs to cover the City's consultant. • Handyworker Grant Program: Due to a significant level of interest in the community, the City brought back the Handyworker Grant Program last year to assist income-eligible households with necessary and essential home repairs. The program is geared towards smaller repairs to help improve the quality of life, such as: roof repairs or replacement, window replacement, painting, stucco, electrical and plumbing repairs or replacement. City staff recommends that $60,000 be allocated for the Handyworker Grant Program, of which includes $48,000 to fund approximately five grants with a maximum amount of $10,000. The program allocation would also fund up to $12,000 of program administration costs to cover the City's consultant. City Council January 5, 2016 Page 4 of 5 • Asbestos/Lead-Based Paint Testing and Removal Program: This on-going program offers grants to home improvement loan and handyworker grant 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 loan and grant programs, such abatement is required since federal funds are being utilized. The amount of funds required for abatement vary on the number of grants and loans processed requiring asbestos and/or lead- based paint testing, and required abatement work. 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. Staff recommends that the FY 2016-2017 allocation be $50,000. This amount would provide for abatement work, if needed, for the households that are assisted through the Housing Rehabilitation Loan Program and Handyworker Grant Program. The $50,000 allocation also includes up to $10,000 of program administration costs to cover the City's 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: 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 percent of its annual allocation towards public service programs. 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 percent 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. Staff recommends that the FY 2016-2017 allocation be $26,400, which is 15 percent of the City's annual allocation. In summary, staff is recommending that the FY 2016-2017 CDBG funds be allocated to the City's on-going Housing Rehabilitation Loan Program, Handyworker Grant Program, Asbestos Testing and Abatement Program, and Youth Scholarship Program. City Council January 5, 2016 Page 5 of 5 CITY STRATEGIC GOALS: Approval of the $304,400 of CDBG Allocations for FY 2016-2017 will further the City's Strategic Goals of Public Health and Safety, Quality of Life, and Economic Development. FISCAL IMPACT: This action will tentatively impact the FY 2016-2017 City Budget by designating the expenditure of CDBG funds as follows: Housing Rehabilitation Loan Program: Handyworker Grant Program: Asbestos Testing and Removal Program: Youth Scholarship Program: ATTACHMENTS: $168,000 $ 60,000 $ 50,000 $ 26,400 A. CDBG Bulletin 15-0006-2015 CDBG Income Guidelines B. CDBG FY 2016-2017 Public Hearing Notice, Temple City Tribune, November 30, 2015 ATTACHMENT B 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 2016-2017 at their meeting of January 5, 2016, at 7:30 p.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, address "spot blight", emergency purposes, or to meet the needs of special population groups, such as the disabled. During the next fiscal year, July 1, 2016 through June 30, 2017, it is anticipated that the programs and the amounts to be expended, will be as follows: Housing Rehabilitation Loan Program ($168,000); Handyworker Grant Program ($60,000); Lead and Asbestos Testing and Removal Program ($50,000); and Youth Scholarship Program ($26,750). 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 2016-2017 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 5, 2015. Published: Date: Temple City Tribune November 30, 2015 Peggy Kuo City Clerk