CC - Item 5A - CDBG and Home Programs FY 2014-15 Annual Action PlanROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM JEFF ALLRED, CITY MANAGER
DATE: MARCH 25, 2014
SUBJECT: CDBG AND HOME PROGRAMS FY 2014 -15 ANNUAL ACTION PLAN
SUMMARY
On February 11,. 2014, the City Council conducted a public hearing to receive input on
the development of the City's Annual Action Plan for the period of July 1, 2014 -June 30,
2015. Three (3) social service organizations (Family Counseling Services, Family
Promise, and People for People) made presentations at the public hearing. Under
federal regulations, no more than 15% of the Community Development Block Grant
(CDBG) allocation can be used for social service activities. In addition, under the
HOME Investment Partnership (HOME) program, at least 15% must be set aside for a
Community Housing Development Organization (CHDO).
The Federal government is currently working on allocating CDBG and HOME funding
awards and has not yet announced the final amounts to each participating community,
however, it is estimated that the City of Rosemead will sustain a 3% funding reduction
to both allocations. Based on this estimated reduction, a summary of staff - endorsed
projects has been prepared according to 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 FY 2014 -15 Annual Action Plan.
BACKGROUND
The City of Rosemead is a Federal entitlement grant recipient of CDBG and HOME
funds from the U.S. Department of Housing and Urban Development (HUD). As part of
the process to receive funding, the City must undertake development of a Consolidated
Plan and Annual Action Plan. It is called a Consolidated Plan because it consolidates
the application process for HUD's four (4) entitlement grants into one consolidated plan
and application. The four grants are: CDBG, HOME, Housing Opportunities for Persons
with AIDS (HOPWA), and Emergency Shelter Grant (ESG). All four (4) grants are
driven by an entitlement formula process set by the federal government. The City is
eligible to participate in two (2) of these programs. CDBG and HOME.
ITEM NUMBER: -
City Council Report
March 25, 2014
Page 2 or 4
As part of the requirements of the federal Consolidated Plan process, the City is
required to hold a public hearing regarding the projected use of funds prior to adoption
of its Consolidated Plan and Annual Action Plan. In order to receive the FY 2014 -15
allocations, the City must comply with the following requirements of the Consolidated
Plan final rule regarding pre- submission requirements:
Fulfill citizen participation requirements by conducting a public hearing to
receive citizen input regarding annual funding needs;
r Publish a draft Plan and Annual Action Plan for a 30 -day comment period in
order to receive citizen input regarding the final document, and
r Conduct a public hearing adopting the final Plan and the Annual Action Plan.
The Annual Action Plan is a part of the Consolidated Plan, which takes all HUD
requirements regarding planning, needs analysis, reporting, budgeting, citizen
participation, and certifications and incorporates them into one process. The full
Consolidated Plan must be completed once every five (5) years and the Annual Action
Plan must be completed annually.
ANALYSIS
The Federal government is currently working on allocating CDBG and HOME funding
awards and has not yet announced the final amounts to each participating community.
While the City has not yet been notified of the final amounts that will be available to
meet identified needs within Rosemead for the FY 2014 -15, HUD has warned that it is
estimated that Rosemead will receive a 3% decrease to both its current $675,126
allocation of CDBG funds and $209,511 allocation of HOME. When these estimated
figures are combined with anticipated program income, and projected carryover funds,
the City anticipates having a total of approximately $898,199 ($654,872 FY 2014 -15
allocation, $11,802 anticipated program income, and $231,525 FY 2013 -14 carryover
funds) in CDBG funds available; and $795,668 ($203,225 FY 2014 -15 allocation and
$592,443 FY 2013 -14 carryover funds) in HOME funds available for in the FY 2014 -15.
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 FY 2014 -15. In reviewing the CDBG 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 satisfies
an urgent need. In addition, of the CDBG funds received, no more than 15% ($98,230)
of the annual grant amount plus anticipated program income can be used for social
service activities, no more than 20% ($130,974) 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.
City Council Report
March 25, 2014
Pace 3 of 4
There were no new public service funding requests submitted for the FY 2014 -15. Out
of the three (3) existing social service organizations already receiving funding, all have
requested the same level of funding as approved in the current fiscal year (Attachment
"A "). It would be appropriate to continue to support all three social service organizations
at their current level of funding.
There was also one (1) request that qualifies under the Planning and Administrative
services cap (Southern California Housing Rights Center). This organization requested
the same level of funding as approved in the current fiscal year (Attachment "B "). While
this is a worthwhile organization that provides a service required under the CDBG
program, a reduction in funding to a more justifiable level is recommended due to a
continued decrease in program funds, and a recent survey that demonstrated a lower
number of services for Rosemead residents compared to surrounding cities who are
providing lessor funding than Rosemead (Attachment "C ").
A detailed list of funding recommendations under the CDBG program is provided below.
20142015
CDBG Allocation
City Administration
General Administration
_
$109,298
_
General Administration — Program income
$ 2,352
Fair Housing Contract
$ 10,000
Subtotal
$121,650
Rehabilitation
_
Administration
$234,944
Emergency Grants
$ 10,000
Grants
$100,000
Rebates
$ 15,000
Lead /Asbestos Testing_
_
_ $ 11,000
._Lead /Asbestos Remediation
$ 20,000
_
Subtotal
$390,944
_
Public Safet
Code Enforcement
$274,985
Subtotal
$274,985
Social Services
_
Family Counseling Services
_
$ 5,000
Family Promise
_
$ 5,000
People for People
$ 10,000
Senior Nutrition Services
$ 78,200
Senior Nutrition Services — Program
income
$ 12,420
Subtotal
_
$110,620
Total CDBG Allocation
J
$898,199
City Council Report
March 25, 2014
In reviewing the HOME funds recommendations, it would be appropriate for the City
Council to remember that no more than 10% ($20,322) can be used for administrative
and program delivery activities. At least 15% ($30,484) must be set aside for a CHDO,
as constituted under the regulations. In addition, up to 5% ($10,161) can be used by a
CHDO for operating expenses. The balance of funds can only be used for housing
activities. A detailed list of funding recommendations under the HOME program is
provided below.
20142015 H
HOME A
Allocaton
City Administration
General Administration _
$ 2
22,322
_ _
$ 7
7,457
Subtotal $
$ 2
29,779
Rehabilitation
Owner-Occupied Rehabilitation Loans $
$ 3
373,419
Down Pa ment Assistance_ P_ rogram $
$ 1
140,000
Subtotal $
$ 5
513,419
Community Housing Development Organization C
CHDO
Rio Hondo CDC (operating) $
$ 2
2,000
Rio Hondo CDC (Affordable Housing Program) $
$ 3
30,484
Rio Hondo C_ DC (Affordable Housing Program) - Carryover _
_ $ 2
219,986
Subtotal $
$ 2
252,470
Total HOME All ocation 6
65597
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.
Community Development Director
Attachment A— Public Service Funding Request
Attachment B — Planning and Administration Funding Request
Attachment C — Housing Rights Center Comparison Chart
Attachment A
Public Service Funding Request
FY 2014 -15
FY 2013 -14
Agency
Program Description
Funding
Existing
Staff
Request
Provider
Recommendation
Family Counseling
Counseling Services
$ 5,000.00
Yes
$ 5,000.00
Family Promise
Homeless Services
$ 5.000.00
Yes
$ 5,000.00
People for People
Food and Clothing Services
$ 10,000.00
Yes
$ 10,000.00
Attachment B
Planning and Administration Funding Request
Agency I Program Description
Housing
FY 2014 -15
FY 2014 -15
Existing
Funding
Staff
provider
Request
Recommendation
Attachment C
Housing Rights Center Comparison Chart
City
Funding
FY 12/13
People Served
FY 12/13
People Served
Per $1,000
Baldwin Park
$ 8,000.00
153
19
El Monte
$ 17,905.00
306
17
Glendora
$ 15,000.00
67
4
Montebello
$ 5,000.00
162
32
Monterey Park
$ 10,000.00
151
15
Rosemead
$ 18,000.00
135
7.5
West Covina
$ 10,000.00
150
15