CC - Item 10A - CDBG and Home Programs Annual Action Plan for Fiscal Year 2011-12ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: APRIL 26, 2011
SUBJECT: CDBG AND HOME PROGRAMS ANNUAL ACTION PLAN FOR FISCAL YEAR
2011 -12
SUMMARY
On February 8, 2011, the City Council conducted a public hearing on the City's Annual
Action Plan for the period of July 1, 2011 -June 30, 2012. 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 Annual Action
Plan includes the proposed activities, resources and expenditures for the CDBG and
HOME programs.
Eight organizations (Family Counseling Services, People for People, Rio Hondo
Temporary Home, Rosemead High School, San Gabriel High School, Southern
California Housing Rights Center, Women's Federation for World Peace, Inc., and
YMCA of W. San Gabriel Valley) made presentations at the public hearing. One other
organization, Rosemead School District, submitted a funding request and was
scheduled to have a representative present; however, they were unable to attend.
It is estimated that the City of Rosemead will sustain funding reductions to its annual
allocations for the CDBG and HOME programs of 16% and 10% respectively. A
summary of staff - endorsed projects has now been prepared based on the funding
requests and ongoing CDBG and HOME funded activities.
Staff Recommendation
It is recommended that the City Council review and finalize the CDBG and HOME
funding recommendations under the City's Annual Action Plan for the Fiscal Year 2011-
12.
ANALYSIS
While the City has not yet been notified of the grant amount that will be available to
meet identified needs within Rosemead for the new year, it is estimated that the City will
receive a 16% decrease in the current $1,242,049 allocation of CDBG funds and a 10%
ITEM NO. -�
APPROVED FOR CITY COUNCIL AGENDA:
City Council Report
April 26, 2011
Page 2 of 4
decrease in the current $547,221 allocation of HOME funds. When combined with
projected carryover funds of $156,891 and anticipated program income of $19,399 in
CDBG and projected carryover funds of $500,000 in HOME, the City anticipates having
a total of approximately $1,219,611 of CDBG funds available and $994,597 in HOME
funds available for the 2011 -12 year.
After much deliberation and thought, it is being proposed 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 2011 -12.
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
City Administration
General Administration
$184,785
General Administration — Program Income
$ 3,879
Fair Housing Contract
$ 20,000
Subtotal
$208,664
Rehabilitation
Administration
$216,325
Emergency Grants
$ 10,000
Grants
$100,000
Rebates
$ 15,000
Lead /Asbestos Testing
$ 13,273
Lead /Asbestos Remediation
$ 53,226
Subtotal
$407,824
Public Safet
Code Enforcement
$431,699
Subtotal
$431,699
Social Services
Family Counseling Services
$ 39,000
People for People
$ 27,600
Rio Hondo Temporary Home
$ 5,000
Rosemead High School
$ 10,000
Rosemead School District
$ 7,000
Senior Nutrition Services
$ 62,304
Senior Nutrition Services — Program
Income
$ 15,520
YMCA of W. San Gabriel Valley
$ 5,000
Subtotal
$171,424
Total CDBG Allocation
$1,219,611
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
City Council Report
April 26, 2011
Paae 3 of 4
persons, eliminate slum or blighted conditions, or satisfies an urgent need. In addition,
of the CDBG funds received, no more than 15% ($156,498) of the annual grant amount
plus anticipated program income can be used for public services, no more than 20%
($208,664) of the grant amount plus anticipated 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.
There were four (4) new public service funding request (Rio Hondo Temporary Home,
San Gabriel High School, Women's Federation for World Peace, Inc., and YMCA of W.
San Gabriel Valley) submitted. Out of the four requests, the San Gabriel High School
never returned a written application for funding due to the participants unwillingness to
provide income verification, and the Women's Federation for World Peace, Inc. does not
meet the needed qualifications for funding as the service provided by this organization
was not identified as a needed service in the Rosemead Five Year Consolidated Plan.
The remaining two (2) organizations are recommended for funding at a level of $5,000
each. Out of the existing organizations already receiving funding, one (1) organization
(Rosemead School District) requested an increase, while the remaining organizations
requested the same level of funding as approved in the current year. While these are
all worthwhile organizations, based on a decrease in CDBG funding, a decrease in
public service funding has been applied for the most part across the board based on
performance and compliance with program guidelines. A detail list of funding request
versus funding recommendation can be found in Attachment "B ".
Of the HOME funds received, no more than 10% ($49,459) can be used for
administrative and program delivery activities. At least 15% ($74,189) must be set
M CA M .
City Administration
General Administration
$
49,459
General Administration - Carryover
$
30,000
Subtotal
$
79,459
Rehabilitation
Owner-Occupied Rehabilitation Loans
$
606,220
Down Payment Assistance Program
$
210,000
Subtotal
$
816,220
Community Housing Development Organization CHDO
Rio Hondo Community Development Corp. (Operating)
$
24,729
Rio Hondo Community Development Corp.
Affordable Housing Program)
$
74,189
Subtotal
$
98,918
Total CDBG Allocation
$
994,597
Of the HOME funds received, no more than 10% ($49,459) can be used for
administrative and program delivery activities. At least 15% ($74,189) must be set
City Council Report
April 26, 2011
Page 4 of 4
aside for Community Housing Development Organizations (CHDO), as constituted
under the regulations. In addition, up to 5% ($24,729) 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.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Michelle G. Ramirez
Community Development Manager
Attachment A — CDBG & HOME Funding
FY 2010 -11 Approved Budget vs. FY 2011 -12 Proposed Budget
Attachment B — Social Service Funding
FY 2010 -11 Approved Budget vs. FY 2011 -12 Proposed Budget
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