HomeMy Public PortalAbout10) 8B CDBG Funds for FY 2018-19AGENDA
ITEM 8.8.
COMMUNITY DEVELOPMENT DEPARTMENT
DATE:
TO:
FROM:
MEMORANDUM
January 16 , 2018
The Honorable City Council
Bryan Cook , City Manager
Via : Michael D. Forbes, Community Development Director
Scott Reimers , Planning Manager
By : Adam Gulick, Associate Planner
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR FISCAL
YEAR 2018-19
RECOMMENDATION:
The City Council is requested to :
1. Hold a public hearing regarding the proposed allocation of Commun ity
Development Block Grant (CDBG) funds for Fiscal Year (FY) 2018-19 ;
2 . Authorize the City Manager to amend CDBG-funded program allocations up to 50
percent of the approved allocation as necessary throughout the FY; and
3. Adopt one of the options below indicating the programs and allocations fo r FY
2018-19 . The total CDBG Budget for FY 2018-19 includes the estimated a ll ocation
of $179 ,000 for FY 2018-19 , plus an estimated $121 ,000 of unallocated funds :
Option A:
i. Housing Rehabilitation Loan and Handyworker Grant Program :
11. Asbestos Testing and Removal Program :
111. Youth Scholarship Program:
Total FY 2018-19 CDBG Budget:
Option B:
1. Housing Rehabilitation Loan and Handyworker Grant Program :
11 . Asbestos Testing and Removal Program:
iii. Youth Scholarship Program :
1v . Potential one-time Economic Development/Job Creation Program
using reserve carryover funds :
Total FY 2018-19 CDBG Budget:
$220 ,000
$ 53 ,150
$ 26 ,850
$300 ,000
$127 ,000
$ 25 ,150
$ 26 ,850
$121 ,000
$300 ,000
City Council
January 16 , 2018
Page 2 of 5
BACKGROUND:
1 . In 197 4 , the CDBG Program was enacted through the Housing and Community
Development Act of 1974. The City has been receiving CDBG funds from the Los
Angeles County Community Development Commission (LAC DC) since 197 4 .
2 . On April 25 , 2017 , the C ity was informed of the 2017 income guidelines through a
CDBG Bulletin (Attachment "A "). At this time, the 2018 i ncome guidelines have not
been released . The City is required to follow the 2017 i ncome guideli nes unti l
further notice.
3 . On December 28, 2017, a public notice was published in the Temple City Tri bune
stating the intended CDBG-funded programs and allocations for FY 2018-19
(Attachment "8 ").
ANALYSIS:
The CDBG Program was established with the primary objective of developing v iable
communities by creating suitable living environments, maintain ing and creating decent
housing , and creating and maintaining job opportun ities for low-and moderate-income
persons . Every city receives an annual CDBG allocation based upon popu lation . C it ies
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 certain pre-designated national objectives
set forth by th is federal program . Specifically, funds need to address slum and b li ghted
conditions , to assist or benefit low-and moderate-income fam ili es , to assist w ith
emergency conditions (e.g . natural disasters) threatening publ ic health and safety, or to
meet the needs of special population groups, such as the d isabled or senior ci t izens .
Due to the high average household income levels in the community, Temple C ity 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 P rogram , the Youth Scholarship Program , the i nstall ation of Americans with
Disabi lities Act (ADA) approved surfacing for the playgrounds at Temple C ity Park and
Live Oak Park, the installation of ADA ramps at various inte rsections throughout the
City, and ADA improvements to pub li c parking lots along Las Tunas Drive and Temple
City Boulevard .
The City is required to allocate an estimated $300 ,000 of CDBG funds for FY 20 18-19.
This includes the City's esti mated annua l allocation of $179,000 and approxi mately
$121 ,000 of unallocated funds carrying over from the prev ious f i scal year a nd /or prior
home improvement loans paid back to the City. The $179 ,000 amount may be adj usted
by the LACDC based upon the eventual United States Department of Housing and
City Council
January 16 , 2018
Page 3 of 5
Urban Development (HUD) allocation of CDBG funds distributed to the LACDC . Si nce
the actual allocation or carry over funds may be different than the estimates , staff is
recommending that the City Council authorize the City Manager to adjust the program
allocations as needed to reflect the available funding.
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 notice in the newspaper (Attachment "B") notifying the
public of the City 's intended CDBG programs and allocations for FY 2018-19 . Staff
recommends that the programs and relat ive funding levels from FY 20 17-18 be
continued for FY 2018-19 , as follows.
• Housing Rehabilitation Loan and Handyworker Grant Program:
This Housing Rehabilitation Loan Program has been popular in the commun ity since
it was established in the m id-1990's . In FY 2016-17 , the loan and grant program
were combined into one program to help streamline projects and reduce
administrative work . The Housing Rehabil itation Loan Program provides deferred
loans (maximum $35 ,000) to below moderate-income homeowners to make
necessary major home repairs and/or correct Building and Zoning Code violations .
Since FY 2014-15 , the City have assisted nine below moderate-income househo lds.
A lien recorded on the property requiring that the owners pay back their loan when
the house is sold , is changed to a rental , or the property is refinanced . When the
loan is pa id back , the money is recycled back into the City 's CDBG Programs .
Due to a significant level of interest in the community , the City brought back the
Handyworker Grant Program in FY 2015-16 . This program also assists income-
eligible households with necessary and essential home repa irs (maximum $10 ,000 ).
The program is geared towards smaller repairs to help improve the qua lity of life ,
such as : roof repairs or replacement , window rep lacement , pa inti ng , st ucco ,
electrical and plumbing repairs or replacement. Since FY 2015-16 , the City has
issued grants to 10 below moderate-income households .
At the t ime of this report , there are approximately 20 residen ts on the waiting list for
th is program . Staff recommends allocating $220 ,000 in FY 20 18-19 , wh ich includes
$176 ,000 to assist below moderate-income households w ith needed repa irs and up
to $44 ,000 of program administration costs to cover the C ity 's consultant.
• Asbestos/Lead-Based Paint Testing and Removal Program:
This ongoing program offers grants to home improvemen t 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 haza rdous cond itions i n c on j un ct ion
with the loan and grant programs ; such abatement is required since federal funds
are being utilized. The funds required for abatement vary based on the number of
City Council
January 16 , 2018
Page 4 of 5
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 res idence . If the proposed
area of construction tests positive for asbestos and/or lead-based pa int, 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 2018-19 allocation be $53 ,250 . This amount would
provide for abatement work, if needed , for the households that are ass isted through
the Housing Rehabilitation Loan Program and Handyworker Grant Program . The
$53 ,250 allocation also includes up to $10 ,650 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 ove r to the
following fiscal year.
• Youth Scholarship Program:
The Youth Scholarship Program qualifies as a "public service" program . Under the
HUD CDBG guidelines , a maximum of 15 percent of the annual CDBG a l location
can be used for public service programs . This is an ongo ing program enabling
Temple City youth under the age of 18 to participate in various C ity-sponsored
recreation activities . The scholarship amount covers a portion of the recreat ion
activ ity fee for members of eligible households . For youths from extremely low-and
low-income households, the scholarship would cover 75 percent of the fee . Th is is
the most utilized CDBG program in the City, which typ ically expends al l of the
program funds by April or May of the program's fiscal year. The program issues
approximately 75 to 100 scholarships each fiscal year.
Staff recommends that the FY 2018-19 allocation be $26 ,750 , wh ich is t he
maximum allowed 15 percent of the City's estimated annua l allocation .
• Economic Development/Job Creation Program:
The C ity Council has expressed interest i n establishing a new econom ic
development program us i ng CDBG funds . Cities use these loans in an attempt to
attract and assist new businesses with tenant improvement costs . In return , the
business rece iving the loan is required to c reate a full-t ime pos ition that is specifically
for individuals who are below moderate-income . Most cities w i ll forgive the loan if the
be low moderate-income individual is retained for at least five years. If the business
fails to retain a full-time below moderate-income individua l, they would be requ i red to
pay back a portion of the loan to the City, wh ich is returned to the LACDC and goes
back into the City's CDBG unallocated balance .
If the City Council decides to move forward with this program , it w i ll be brought back
at a future City Council meeting. Because this program was not included in the
City Council
January 16 , 2018
Page 5 of 5
December 28 , 2017 notice and HUD's deadlines , it will be cons idered an out-of-cycle
program (wil l not coincide with fiscal year). All out-of-cycle programs requ ire a 30-day
public hearing notice as specified by HUD .
CITY STRATEGIC GOALS :
Approval of the CDBG Allocations for FY 2018-19 will further the City's Strategic Goals
of Public Health and Safety , Quality of Life , and Economic Deve lopment.
FISCAL IMPACT:
This action will impact the FY 2018-19 City Budget by designating the expenditure of
CDBG funds as follows :
Option A :
Housing Rehabilitation Loan and Handyworker Grant Program :
Asbestos Testing and Removal Program :
Youth Scholarship Program :
Option 8:
Housing Rehabilitation Loan and Handyworker Grant Program :
Asbestos Testing and Removal Program :
Youth Scholarship Program :
Potential one-time Economic Development/Job Creation Program
using reserve carryover funds:
$220 ,000
$ 53 ,150
$ 26 ,850
$127 ,000
$ 25 ,150
$ 26 ,850
$121 ,000
The programs are funded entirely with CDBG funds , so there is no impact on the
General Fund .
ATTACHMENTS:
A. CDBG Bulletin 17-0008-2017 CDBG Income Guidelines
B. CDBG FY 2018-19 Public Hearing Noti ce , Temple City Tribune , December 28 ,
2017
LOS ANGELES COUNTY
ATTACHMENT A
~@
COMMUNITY DEVELOPMENT COMMISSION • 700 W. Main Street • Alhambra • California 91801
NUMBER : CDBG17-0008 SUBJECT: REVISED 2017 INCOME GUIDELINES
DATE :
HPI17-0001
HHPF17-0001
FRHS17-0001
A ril 25 2017 EFFECTIVE DATE : IMMEDIATELY
TO: PARTICIPATING CITIES
COMMUNITY-BASED ORGANIZATIONS
OTHER PUBLIC AGENCIES
COUNTY DEPARTMENTS
CDC DIVISIONS
PAGE 1 OF 2
The 2017 income guidelines (eHec tive April 14, 2017) for use in the Community Development Block
Grant (CDBG), Homeless and Housing Program Fund (HH PF), Homeless Prevention Initiative (HPI ),
and the Family Reunificati on Housing Subsidy (F RHS ) are listed bel ow. These guidel ines should be
used to determine compliance with each program's objective of providin g benefit to elig ible persons .
They are also used in determ ining eligibi lity for the Public Hous ing and Section 8 Prog rams, and are
eHective until a new schedule is issued.
The CDBG Prog ra m 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 Median Income (AMI ) l imits are not the same as the
"Extremely Low-Income" limits , the CDBG Program must use the income guidelines, as outlined below .
2017 INCOME LIMITS
Number of Persons Extremely Low-Income Low-Income Moderate-Income
$18,950 $31,550 $50,500
2 $21,650 $36,050 $57,700
3 $24,350 $40,550 $64,900
4 $27,050 $45,050 $72,, 00
5 $29,250 $48,700 $77,900
6 $32,960 $52,300 $83,650
7 $37,140 $55,900 $89,450
8 $41,320 $59,500 $95,200
Please note that t he 2017 median family income for Los Angeles County is $64,300.
Community Development Division-Grants Management Un it (CDD-GMU)
Putting Dollars Into Actioll
Participating Agencies
April 25, 2017
Page Two
These guide lin es refe r t o the terms in determin ing income levels for the above -mentioned programs .
In order to clarify any m isunderstanding from the differences in terms between the Public Housing ,
Section 8, CDBG, FRHS , HHPF and HPI Programs , the following is provided for your information :
COMPARISON OF TERMS IN DETERMINING INCOME LEVELS
HPI HHPF FRHS CDBG SECTION B %OF MEDIAN
Extremely Extremely Extremely Extremely Extremely Eq ual to or
Low-Income Low-Income Low-Income Low-Income Low-Income less than 30%
Not Eligible* Not Eligible* Not Eligible* Low-Income Very 31 % to 50% Low-Income
Not Eli ible Not Eli ibl e Not Eli ible Moderate-! ncome Low-Income 51 % to 8 0%
*On a case -by-case basis, up to 50% AMI is allowab le fo r Rapid Re ho using only and is limited to 25%
of the total families se rv ed through th is assistan ce .
For all agencies utilizing CDBG-approved Pub lic Service Self-Certification Forms, please be sure to
incorporate these revised income guidelines into your forms immediately (the Pub lic Service
Self-Certification Form does not apply t o the HHPF, HPI , and FRHS Programs ).
Should you have any questions, please contact your Program Manager.
SCOTT STEVENSON, Director
Commun ity Development Division
SS:OV:BT:RG :ec
K:IGMU COMMONIPMl\BULLETINS\2017 Income Guldelines .docx
ATTACHMENT B
CITY OF TEMPLE CITY
PUBLIC HEARING NOTICE
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
FOR FISCAL YEAR 2018-2019
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 2018-2019 at their meeting
of January 16 , 2018 , 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 (C DBG ) Funds must be used to achieve the
stated nationa l 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 condi tions , 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, 2018 through June 30 , 2019 , it is anticipated that the
programs and the amounts to be expended , will be as follows : Housing Rehab ili tation
Program (Loans and Grants -$220 ,000); Lead and Asbestos Testing and Removal Program
($53 ,250); 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 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 i nterested person s wishing to provid e input on housing and communi ty
developm e nt as it relates to the use of the 2018-2019 CDBG funds may contact the
Community Development Department at City Hall by phone (626 ) 656 -7315 . Written
comments may also be submitted to : City of Tem ple City Community Development
Department , 9701 Las Tunas Drive , Templ e City, CA 91780 . Comments will be received
through January 16, 2018 .
Publish ed : Temple City Tribune
Date : De ce mber 28 , 2017
Peggy Kuo
City Clerk