HomeMy Public PortalAbout12) 8D CDBG Funds for FY 2017-18AGENDA
ITEM 8.0.
COMMUNITY DEVELOPMENT DEPARTMENT
DATE:
TO:
FROM:
MEMORANDUM
January 17, 2017
The Honorable City Council
Bryan Cook , City Manager
Via : Michae l D. Forbes , Community Development Di rector *f'
Scott Re im ers , Planning Manager
By: Adam Gulick, Associate Planner
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR
FISCAL YEAR (FY) 2017-18
RECOMMENDATION:
The City Council is requested to :
1. Hold a public heari ng regardi ng th e proposed allocation of CDBG funds for FY
2017-18 ;
2 . Authorize the City Manager to amend CDBG-funded program allocations up to 50
percent of th e approved allocation ; and
3 . Adopt th e staff re commended CDBG-funded programs and allocatio ns for FY
2017-18 ; the total CDBG fund s includ e the estimated allocation of $179 ,000 for FY
2017-18 , plus $71 ,000 of unallocat ed fund s carri ed over from FY 2016-17 :
i. Hous ing Rehabilitation Loan and Handyworker Grant Program :
ii . Asbestos Testing and Removal Program :
111. Youth Scholarship Program :
iv . Lo s Angeles County Homeless Initiatives :
Total FY 2017-18 CDBG Budget:
$155 ,000
$ 48 ,000
$ 27,000
$ 20,000
$250 ,000
City Counc il
January 17 , 2017
Page 2 of 6
BACKGROUND:
1. In 1974, the CDBG Program was enacted through the Housing and Community
Development Act of 197 4 . According to City records , the C ity has been receiving
CDBG funds from the Los Angeles County Community Deve lopment Commission
(LACDC) since 1974.
2 . On April 5 , 2016 , the City was informed of the 2016 income guidelines through a
CDBG Bulletin (Attachment "A "). At this tim e , the 2017 income guidelines have not
been released . The City is required to follow the 2016 in c ome gu idel ines until
further notice.
3. On October 12, 2016 , the City met with its program manager from the LACDC to
review current year programs and discuss the anticipated CDBG programs and
allocations for FY 2017-18 . The program manager informed staff that it is
anticipated that the City's CDBG allocation would be sim ilar to the allocation for FY
2016-17 (i.e ., $179 ,000).
4. On December 15 , 2016 , a public notice was published in the Temple City Tribune
stating the intended CDBG-funded programs and allocations for FY 201 7-18
(Attachment "B ").
5 . On December 15, 2016 , City staff received an email from LACDC informing the
City of two L.A. County homeless initiatives that are CDBG eligible . The L.A.
County Board of Supervisors made combating homelessness a high priority ,
creating two opportunities for participating cities to use their CDBG funds .
6 . On December 22 , 2016 , a revised public notice , includ ing the two homeless
initi ative s , was published in the Temple C ity Tribune stating the intended CDBG-
funded programs and allocations for FY 2017-18 (Attachment "C ").
ANALYSIS:
The CDBG Program was established w ith 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 C ity , receive
funds through the LACDC .
CDBG funds can only be used to accomplish c ertain pre-designated national obj ect ives
set forth by this federal program . Specifically, funds need to address slum and blighted
conditions , to assist or benefit low-and moderate-income fami l ies , to ass ist with
City Council
January 17 , 20 17
Page 3 of 6
emergency con ditions (natural disaster) threatening public health and safety , or to meet
the needs of special population groups, such as the disabled or sen ior citizens .
Due to the high average household income levels in the community , Temple City has
been challenged in deve lop i ng el igibl e programs . In the past, the City ha s been able to
use CDBG fund s for the Housi ng Rehabilitat io n Loan Program , the Han dyworker
Assistance Program, th e Youth Scholarsh ip Program, th e installation of American with
Di sab ili ties Act (A DA) approved surfac ing for the playgrounds at Temple City Park and
Live Oak Park , the in st all ation of ADA ram ps at variou s intersectio ns throughout the
City, and ADA improvements to pub lic parking lots a long La s Tunas Drive and Temple
City Bou levard .
The City is require d to allocate $250,000 of CDBG funds for FY 2017-18 . This includes
the City's estimat ed annual allocation of $179,00 0 and approximately $71 ,000 of
unallocated funds carrying over from th e previous fi scal year and/or prior home
improvement loans paid back to the City. The $179 ,000 amount may be adjusted by the
LACDC based upon the eventua l United States Department of Housing and Urban
Deve lopment (HUD) allocation of CDBG funds distributed to the LACDC . If the
allocation o r carry over funds are more or less, st aff will add or subtract fund s from the
proposed Hous ing Rehabil itation Loan Program and/or the associated Asbestos
T esting and Abatement Program as authorized by City Council.
The City is required to conduct a pu bli c hearin g to solicit i nput fr om the community and
to ens ure t hat the proposed CDBG Projects meet commun ity needs and HUD
guidelines . The City pub lished a 30-day notice in the newspaper (Attachment "B")
notifying the public of the City's i nte nd ed CDBG programs and allocations . A revised
public hearing notice was published in the newspaper (A ttachmen t "C") after City staff
was notifi ed of two new opportunities for the City Council to cons ider that would
address Los Ange les County's homeless populations . For FY 2017-18 , it is staff's
assessment that the f ollowing CDBG-funded prog rams continue at the funding levels
recommended below for the commu nity's benefit and in a manner consistent with the
program constra ints outlined above. Alte rnat ive ly , the City Council has the option to
modify the proposed allocations and/or direct City staff to exp lore alternative programs .
• Housing Rehabilitation Loan and Handyworker Grant Program:
The City's program manager recommended combining the Housing Rehabilitation
Loan (maximu m $35 ,000) and Handyworker Grant (maximum $10 ,000) programs
fo r FY 2017-18 . Combining the two home improvement programs will reduce the
amount of administrative work (i.e ., work write u ps , contracts, environmenta l
clearan ce , etc.) betwee n the City and the LACDC , and el iminate the need to transfer
CDBG funds between the two programs. Five years ago , the City consolidated the
asbestos and lead -based paint programs .
City Council
January 17 , 2017
Page 4 of 6
The Housing Rehabilitation Loan Program provides deferred loans (maximum
$35 ,000) to extremely low-, low-and moderate-income homeowners to make
necessary home repairs and/or correct Building and Zoning Code violat ions . This
has been a popular program in the community since it was established in the mid-
1990's. Due to a significant level of interest in the community , the City brought back
the Handyworker Grant Program in 2015-16 . This program assists income-eligible
households with necessary and essential home repairs (maximum $1 0,000). The
program is geared towards smaller repairs to help improve the quality of life , such
as : roof repairs or repla ceme nt , window repla ce ment, painting , stucco , electrical and
plumbing repairs or replacement.
Staff suggests allocating $155 ,000 in FY 2017-18, of which includes $124 ,000 to
assist below moderate-in come households with needed repairs and up to $3 1,000
of program administration costs to cover the City's consultant.
• Handyworker Grant Program:
It is recommended that this program be combined with the Housing Rehabil itation
Loan Program for FY 2017-18.
• 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 based 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 $200 to $1 ,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 or more depending on
the amount of area being disturbed.
Staff recommends that the FY 2017-18 allocation be $48 ,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
$48 ,000 allocation also includes up to $9 ,600 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.
City Counci l
January 17 , 2017
Page 5 of 6
• Youth Scholarship Program:
The Youth Scholarship Program qualifies as a "public service" program , and under
the HUD CDBG guidelines , a jurisdiction 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 2017-18 allocation be $27,000, wh ich rs the
maximum allowed 15 percent of the City's estimated annual allocation .
• Los Angeles County Homeless Initiatives:
According to the Los Angeles Homeless Services Authority (LAHSA), L.A. County
experienced a 12.4 percent increase in the homeless population and an 85 percent
increase in the homeless population living in tents , makeshift shelters , and vehicles
between 2013 and 2015 . The L.A. County Board of Supervisors adopted a
Homeless Initiative that includes strategies to help the increasing homeless crisis in
L.A. County . City staff was notified by LACDC of two CDBG eligible activities that
were approved by the L.A. County Board of Supervisors . One LACDC activity is
Rap id Re -Housing Match , which helps homeless families/individuals/youth with low-
to-moderate housing barriers to be quickly re-housed and stabilized in permanent
housing . The second LACDC activity is Shelter Partnership , which is a non-
governmental agency that provides goods to shelters throughout L.A. County . The
City would need to contribute a minimum of $10 ,000 for each activity . Cities
contributing CDBG funds to one or both activities would be used in the same
Service Provider Area (SPA) the city is located in. Temple City is located in SPA 3,
which encompasses the San Gabriel Valley.
Staff recommends that the City allocate $20 ,000 worth of CDBG funds ($1 0 ,000 for
each activity) on activities to assist Los Angeles County in combating homelessness
in the San Gabriel Valley. These activities are considered a "public service", but will
not be counted towards the maximum 15 percent of the City's annual allocation .
In summary, staff recommends that the FY 2017-18 CDBG funds be allocated to the
City's on -going Housing Rehabilitation Loan and Handyworker Grant Program,
Asbestos Testing and Abatement Program , and Youth Scholarship Program .
Additionally, staff recommends that $20 ,000 of CDBG funds for FY 2017-18 be
allocated towards the two LACDC activities to help combat homelessness in the San
Gabriel Valley.
City Council
January 17 , 2017
Page 6 of 6
CITY STRATEGIC GOALS :
Approval of th e $250,000 of CDBG Allocations for FY 2017-18 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 2017-18 City Budget by designating the
expenditure of CDBG funds as follows :
Housing Rehabilitation Loan and H andyworker Grant Program :
Asbestos Testing and Removal Program :
Youth Scho larship Program :
Los Ange les County Homeless Initiatives :
ATTACHMENTS:
A. CDBG Bulletin 16-0004-2016 CDBG In come Guidelines
$155 ,000
$ 48 ,000
$ 27 ,000
$ 20 ,000
B. CDBG FY 2017-18 Public Hearing Notice , Temple City Tribune , December 15 ,
2016
C. CDBG FY 2017-18 Revised Public Hearing Notice , Temple City Tribune ,
December 22, 2016
ATTACHMENT A
LOS ANGELES COUNTY
COMMUNITY DEVELOPMENT COMMISSION • 700 W. Main Street • Alhambra • California 91801
NUMBER : 16-0004 SUBJECT: REVISED 20161NCOME GUIDELINES
DAT E: April 5, 2016 EFF ECTIVE DATE : IMMEDIATELY
TO: PARTICIPATING CITIES
COMMUNITY-BASED ORGANIZATIONS
OTHER PUBLIC AGENCIES
COUNTY DEPARTMENTS
CDC DIVISIONS
PAGE 1 OF 2
The 2016 income guidelines (effective March 28, 2016) for use in the Community Development Block
Grant (CDBG), First Five LA (F5) Programs, Homeless and Housing Program Fund (HHPF), and the
Homeless Prevention Initiative (HPI) are listed below. These guidelines should be used to determine
compliance with each program's objective of providing benefit to eligible persons. They are also used
In determining eligibility for the Public Housing and Section 8 Programs, and are effective until a new
schedule is issued.
The CDBG Program defines annual income according to the Section 8 Housi ng Assistance Payments
Program , thus we are subject to the definition of "Extremely Low-Income,• per the 2014 Consolidated
Appropriations Act. Since the 30% Average Med ian Income (AMI) li mits are not the same as the
"Extremely Low-Income• limits, the CDBG Program must use the income guidelines, as outl ined below.
20161NCOME UMITS
Number of Persons Extremely Low-Income Low-Income Moderate-Income
1 $18,250 $30,400 $48,650
2 $20,850 $34,750 $55,600
3 $23,450 $39 ,100 $62,550
4 $26,050 $43 ,400 $69,450
5 $28,440 $46,900 $75,050
6 $32,580 $50,350 $80,600
7 $36,730 $53,850 $86,150
8 $40,890 $57 ,300 $91,700
Please note that the 2016 median family income for Los Angeles County is $62,400 .
These guidelines refer to the terms in determining income levels for the above-mentioned programs .
In order to clarify any misunderstanding from the differences in terms between the Public Housing,
Community Development Division-Grants Management Unit (CDD-GMU)
Putting Dollars Into Action
Participating Agencies
Apri l5,2016
Page Two
Section 8, CDBG, F5 , HHPF and HPI Program s , the following is provided for your information :
COMPARISON OF TERM S IN DETERMINING INCOME LEVELS
HPI HHPF F5 CDBG SECTION 8 %OF MEDIAN
Extremely Extremely Extremely Extremely Extre me ly Equal to or
Low-Income Low-In come Low-I n come Low-Income Low-In co me less th an 30%
Not Eligible Not Eligib le Not Eligib le Low-Income V ery 31% to 50 % Low-Inco me
Not Eligibl e Not Eligible Not Elig ible Mod erat e-Income Low-In come 51% to 80%
For all agencies utilizin g CDBG-approved Public Service Self-Certifica tion Forms, pl ease be sure to
incorporate these revis ed income guidelines into your fo rm s immediately (the Public Service
Self-Certification Form does not apply to th e F5 , HHPF, and HPI Program s).
Shoul d you have a ny questions , please co nta ct your Progra m Manager.
SCOTI STEVENSON , Directo r
Community Deve lopme nt Di visio n
SS :AM:BT:KYH :RG:ec
K :\GMU COMMO N\P Mn BU LLETINS\2016 Incom e Guide lin es .d ocx
ATTACHMENT 8
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 2017-2018 at their meeting
of January 17 , 2017, at 7 :3 0 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 ach ieve the
stated national objectives of this Department of Housing and Urban Development (HUD)
program . Specifically , these available Federal-Government funds must be used to elimi nate
slum and blight conditions, assist low and moderate-inco me 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, 2017 through June 30 , 2018 , it is anticipated that the
programs and the amounts to be expended , will be as follows : Housing Rehabilitation
Program (Loans and Grants -$175 ,000); Lead and Asbestos Testing and Removal Program
($48,000); and Youth Scholarship Program ($27 ,000). Th e above-enumerated amounts are
based upon preliminary estimates of HUD funds available through the Los Angeles County
Community Development Commission and CDBG funds carried over from the previous fiscal
years. 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 prov ide input on housing and community
development as it relates to the use of the 2017-2018 CDBG funds may contac t the
Community Development Department at City Hall by phone (6 26) 656-7315. Written
comments may also be submitted to : City of Temple City Community Development
Department, 9701 Las Tun as Drive , Temple City , CA 91780 . Comments will be received
through January 17, 2017 .
Published : Temple City Tribune
Date : December 15, 2016
Peggy Kuo
City Clerk
ATTACHMENT C
CITY OF TEMPLE CITY
REVISED PUBLIC HEARING NOTICE
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
Noti ce is hereby given that the City Council of the City of Temple City will consider the
use of Community Developm ent Block Grant Fund s for fiscal year 2017-2018 at their meeting
of January 17 , 2017, at 7 :30 p .m. in the City Council Chambers of the C ity Hall , located at
5938 Kauffman Avenue, Templ e City .
Community Development Block Grant (CDBG ) Funds must be used to achieve the
stated national objectives of th is Department of Housing and Urban Development (HUD)
program . Specifically , these available Federal-Government funds must be used to el iminate
slum and blight conditions, assist low and mod erate-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, 2017 through June 30 , 2018 , it is anticipated that the
programs and the amounts to be expe nded , will be as follows: Housing Rehabilitation
Program (Loans and Grants -$155 ,000); Lead and Asbestos Testing and Removal Program
($48,000); and Youth Scholarship Program ($27,000). Th e City Council will also consider
allocating a portion ($20,000) of its CDBG funds to s upport Los Angeles County's Homeless
Initiative in the San Gabri el Valley . The above-enumerated amounts are based upon
preliminary estimates of HUD funds available through the Los Angeles County Community
Development Commission and CDBG funds carried over from the previous fiscal years. 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 2017-2018 CDBG funds may contact the
Community Development Department at City Hall by phone (6 26) 656-7315 . Written
comments may also be submitted to : City of Temple City Commun ity Development
Department, 9701 Las Tuna s Drive , Temple City, CA 91780. Comments will be received
through January 17 , 2017.
Published : Temple City Tribun e
Date : December 22 , 2016
Peggy Kuo
City Clerk