CDC - Item 4A - Proposed Uses Of CDBG And Home Funds For Fiscal Year 2007-08E M E.
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ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
STAFF REPORT
HONORABLE CHAIRMAN AND COMMISSION MEMBERS
FROM: ANDREW C. LAZZARETTO
DATE: APRIL 24, 2007
EXECUTIVE DIRECTOR A NDREN C'l~teac~c/ISNC~^
SUBJECT: PROPOSED USES OF CDBG AND HOME FUNDS FOR FISCAL YEAR
2007-08
SUMMARY
The City of Rosemead is a federal entitlement grant recipient of Community
Development Block Grant (CDBG) and HOME funds from the U.S. Department of
Housing and Urban Development (HUD). To better utilize the available CDBG and
HOME funds, staff is proposing modifications to the existing program administration and
delivery.
Staff Recommendation
Staff recommends that the Commission discuss the proposed modifications to the
CDBG and HOME administration, program delivery, and staffing.
ANALYSIS
As part of the process to receive CDBG and HOME funds, the City is required to
develop a Consolidated Plan and Annual Action Plan. Both Plans describe the City's
strategy to achieve HUD's community development goals, with the Action Plan prepared
every year to detail the projects and programs to be undertaken in that particular
funding year.
The proposed Action Plan for FY 2007-08 has been prepared and is attached to a
separate staff report prepared for tonight's City Council meeting. The proposed projects
and programs are also summarized in that staff report. This report will focus on issues
regarding grant administration, program delivery, and staffing.
Challenges/Opportunities
The City receives approximately $1,700,000 of CDBG and HOME funds from HUD each
year. In addition, the City currently has approximately $3,864,083 unallocated CDBG
APPROVED FOR COMMUNITY DEVELOPMENT COMMISSION AGENDA: ~Y'h. G-;-
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April 24, 2007
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and HOME funds, generated from several years of unspent funds and program income.
The City must allocate these funds to eligible programs and spend these funds as soon
as possible to avoid losing the funds.
For many years, the City has contracted the CDBG and HOME administration and
implementation services to a consulting firm, namely Willdan. Willdan's contract
includes the overall administration of the CDBG and HOME programs, and the
implementation of Residential and Commercial Rehabilitation Programs, Mortgage
Assistance Program, and Consolidated Code Enforcement Program. In FY 2006-07,
the Willdan's total CDBG and HOME contract amount is $548,853.
With the existing Willdan's contract expiring on June 30, 2007, the City has the
opportunity to review and analyze the current structure of the CDBG and HOME
program administration and program delivery.
Proposed Modifications
After careful review and analysis of the City's current performance/expenditure level and
staffing structure for CDBG & HOME administration and program delivery, staff is
proposing the following modifications.
1. Program Administration and Delivery
Understanding the value of the expertise provided by consultants, staff proposes to
continue the consulting) service for general administration of CDBG and HOME funds.
The scope of service would be reduced from the current day-to-day operation/oversight
to include advisory service, preparation of various HUD reports, assistance with HUD
IDIS computer system, and monitor of City's compliance with applicable CDBG and
HOME rules and regulations. Per HUD requirement, the City would need to procure
such a service contract through a Request of Proposals (RFP) process.
In addition to consulting service, staff recommends that the day-to-day administration
and program implementation be modified.
Currently, each consultant has an established weekly work schedule. For housing
programs and our Commercial Rehabilitation Program, although the office is usually
staffed during City Hall business hours, service is often interrupted when the consultant
who handles certain cases or provides a particular service is not scheduled to be in the
office. Program participants often need to call back on the day the particular consultant
is working to receive the service. By modifying the staffing structure, there would be
continuity in service delivery and staff would be available everyday.
For our Code Enforcement Program, consultants currently provide service four days a
week. The newly proposed in-house staffing structure would provide the service six
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days a week (Monday to Saturday) out of the Zapopan Public Safety Center. The
proposed staffing structure would allow the Public Safety Center to be open on
Saturday providing extended service to the public. In addition, by working with other
agencies, such as law enforcement, probation, City prosecutor, animal control, refuse
service, and the City's Building and Safety and Planning divisions, the City could lead
the coordinated effort with better control and accountability to improve the quality of life
in the community.
Based on historical data, consultants provide approximately 50 hours of service per
week at an average cost of $96 per hour for CDBG and HOME administration and
implementation, and approximately 48 hours of service per week for Code Enforcement
at an average cost of $77 per hour.
Under the newly proposed structure, staff would provide approximately 150 hours of
service per week at an average cost of $53 per hour for the CDBG and HOME
administration and program delivery, and approximately 150 hours of service per week
at $42 per hour for Code Enforcement Program. In comparison, the proposed structure
would provide over three times of coverage at a rate that is approximately half of the
current contract amount.
Staff believes the new staffing structure coupled with a consulting service component
would offer improved efficiency and cost effectiveness to the uses of the CDBG and
HOME funds.
Under this new proposal, CDBG and HOME funds would be allocated towards existing
and new positions. Existing positions to be funded with CDBG and HOME dollars
include: Chief Financial Officer, Economic Development Administrator, Public Safety
Administrator, and Code Enforcement Supervisor. New Positions to be funded with
CDBG and HOME dollars include:
Position Duties and Responsibilities
Management Analyst Overall program administration and
(1 position) implementation of Commercial and Residential
Rehabilitation Programs and special affordable
housing development projects
Grant Specialist Implementation of Residential Rehabilitation
(1 position) Program and special affordable housing
development projects
Code Enforcement Officer
(2 positions)
Proactive code enforcement in the low- to
moderate-income areas, including the Target
Areas
Public Safety Administrative Assistant
(1 position)
Clerical assistance to Code Enforcement effort
in the low- to moderate-income areas
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Attachment "A" is a flow chart describing the current contract structure and Attachment
"B" is a flow chart of the proposed staffing structure.
2. Commitment to Spend HOME Funds
The City is required to commit its HOME funds for particular uses within 24 months after
HUD's appropriation of the entitlement allocation. To comply with this requirement, staff
recommends that the City contract with the Rosemead Housing Development
Corporation (RHDC) to administer the HOME funded Mortgage Assistance Program,
Residential Rehabilitation Program, Tenant-Based Rental Assistance (TBRA) Program,
and the Garvey Housing Revitalization Project. By executing the contract with RHDC
for the implementation of these particular programs, the funds would be committed and,
therefore the City would avoid the risk of losing the funds. The programs would still be
implemented by City staff.
FINANCIAL REVIEW
The abundant unallocated CDBG and HOME funds of $3,864,083 have created a one-
time opportunity for the City to fund some special projects and administrative expense
that would have been paid for by the City's General Fund and RDA's Housing Set-Aside
Funds. Such one-time projects include the Dinsmoore Historical House Renovation
Project, the Garvey Housing Revitalization Project, Tenant-Based Rental Assistance
(TBRA) Program, and a large portion of the Community Housing Development
Organization (CHDO) funds for affordable housing activities.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
Jess Duff
Community Development Director
Prepared by:
Eileen Cheng
Economic Development dministrator
Attachment A: Current CDBG & HOME Staffing and Contract Services
Attachment B: Proposed CDBG & HOME Staffing and Contract Services
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