CC - Item 10A - Annual Action Plan for Fiscal Year 2010-11ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: APRIL 13. 2010
SUBJECT: ANNUAL ACTION PLAN FOR FISCAL YEAR 2010-11
SUMMARY
On February 9, 2010, the City Council conducted a public hearing on the City's Five
Year Consolidated Plan covering the period July 1, 2010 through June 30, 2015 which
includes the FY 2010-11 Annual Action Plan. A Five Year Consolidation Plan as well as
an Annual Action Plan is required by the U.S. Department of Housing and Urban
Development (HUD) in order for the City to receive federal funds under the Community
Development Block Grant (CDBG) and HOME Investment Partnership (HOME)
programs. The Consolidated Plan is a planning document for the jurisdiction, an
application for federal funds under HUD's formula grant programs, a strategy to be
followed in carrying out HUD programs, and an action plan that provides a basis for
assessing performance. The City's current Plan is set to expire on June 30, 2010. The
Annual Action Plan includes the proposed activities, resources and expenditures for the
CDBG and HOME programs.
Six organizations (Family Counseling Services, Legends of Character, People for
People, Rosemead High School, Rosemead School District, and Southern California
Housing Rights Center) made presentations at the public hearing. Copies of these
organizations written proposals are enclosed.
A summary of staff-endorsed projects has now been prepared based on the funding
requests and ongoing CDBG and HOME funded activities.
Staff Recommendation
Staff recommends that the City Council review and finalize its CDBG and HOME
funding recommendations under the City's Annual Action Plan for the Fiscal Year 2010-
11.
ANALYSIS
It has been confirmed that the City of Rosemead will receive $1,242,049 in CDBG funds
and $547,221 in HOME funds for the 2010-11 fiscal year. When combined with
carryover funds of $378,142 and anticipated program income of $27,162 in CDBG and
carryover funds of $677,177 in HOME, the City will have a total of approximately
$1,647,353 of CDBG funds available and $1,224,398 in HOME funds available for the
2010-11 year.
APPROVED FOR CITY COUNCIL AGENDA: ITEM N®.. I A
City Council Report
April 13, 2010
Page 2 of 4
After much deliberation and thought, staff is proposing that the following activities be
funded under the CDBG and HOME programs and included in the City's Annual Action
Plan for the Fiscal Year 2010-11.
2010-2011 CDBG Allocation
City Administration
General Administration
$217,978
General Administration - Program Income
$ 5,432
Fair Housing
$ 25,000
Subtotal
$248,410
Rehabilitation
Administration
$280,742
Emergency Grants
$ 10,000
Grants
$150,000
Rebates
$ 30,000
Lead/Asbestos Testing
$ 13,750
Lead/Asbestos Remediation
$125,000
Subtotal
$609,492
Public Safe
Code Enforcement
$414,134
Subtotal
$414,134
Social Services
Family Counseling Services
$ 40,000
People for People
$ 27,600
Rosemead School District
$ 11,698
Rosemead High School
$ 13,650
Senior Nutrition Services
$ 60,639
Senior Nutrition Services - Program Income
$ 21,730
Subtotal
$175,317
Public Works
Targeted Public Works Project
$200,000
Subtotal
$200,000
Total CDBG Allocation
$1,647,353
In reviewing these recommendations it would be appropriate for the City Council to
remember that only three broad funding categories are considered eligible under
CDBG-regulations. A project must either provide benefits to low or moderate-income
persons, eliminate slum or blighted conditions, or is an urgent need. In addition, of the
CDBG funds received, no more than 15% ($186,307) of the annual grant amount can
be used for public services, no more than 20% ($248,410) of the grant amount plus
program income can be used for Planning and Administrative services, and, at least,
70% of all funds must be used for low-to-moderate income activities.
City Council Report
April 13, 2010
Page 3 of 4
There was one (1) new public service funding request (Legends of Character)
submitted. While this appears to be a most deserving organization it does not meet the
federal qualification for CDBG funding because it does not posses an approved IRS
501(c)(3) determination letter. Legends of Character was aware of this requirement
when they submitted their funding request. Unfortunately, they just recently submitted
their paperwork for review by IRS to determine their non-profit status. The average
review time by IRS is 6 to 9 months. The remaining combined funding requests for
ongoing activities equaled $175,317 which is $10,990 under the allowable limit of
$186,307. One organization (Rosemead School District) requested an increase, while
the remaining organizations requested the same level of funding as approved in the
current year. While Rosemead School District is a worthwhile organization, it has not
shown a need for an increase to its funding level. Over the last several years it has
continuously requested $12,000 but has only spent an average of $8,738.61
($10,427.11 FY 2005-06, $8,190.64 FY 2006-07, $9,053.51 FY 2007-08, $7,283.16 FY
2008-09, and no funds have been requested to date for FY 2009-2010). At this time, it
would be appropriate to continue to support them at there current level of funding.
2010-2011 HOME Allocation
City Administration
General Administration
$ 54,722
General Administration - Carryover Funds
$ 57,177
Subtotal
$ 111,899
Rehabilitation
Owner-Occupied Loans
$ 793,055
Mortgage Assistance Payment
$ 210,000
Subtotal
$1,003,055
Community Housing Development Organization CHDO
Rio Hondo Community Development Corp. (Operating)
$ 27,361
Rio Hondo Community Development Corp.
Affordable Housing Program)
$ 82,083
Subtotal
$109,444
Total HOME Allocation
$1,224,398
Of the HOME funds received, no more than 10% ($54,722) can be used for
administrative and program delivery activities. At least 15% ($82,083) must be set
aside for Community Housing Development Organizations (CHDO), as constituted
under the regulations. In addition, up to 5% ($27,361) can be used by a CHDO for
operating expenses. The balance of funds can only be used for housing activities.
It should be noted that all the proposed projects meet the CDBG and HOME eligibility
requirements.
City Council Report
April 13, 2010
Page 4 of 4
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
(A tb 9
Michelle G. Ramirez
Economic Development Administrator
Submitted by:
ong
*klopment Director
Attachment A - CDBG & HOME Funding
FY 2009-10 Approved Budget vs. FY 2010-11
Attachment,B - Social Service Funding
FY 2009-10 Approved Budget vs. FY 2010-11
Proposed Budget
Proposed Budget
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