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CC – Item 2A – Staff Report – Public Hearing Regarding the Proposed Community Development Block Grant and Home Allocation • ---1 ._,,, .�Kstaffs port TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER DATE: MARCH 12, 1998 RE: PUBLIC HEARING REGARDING THE PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG)AND HOME ALLOCATION FOR FISCAL YEAR 1998-1999. Since Fiscal Year(FY) 1994-1995, the City of Rosemead has participated in the federal CDBG program as a direct entitlement entity. In FY 1996-1997, the City became an entitlement entity for the HOME program as well. In FY 1998-1999, the City's CDBG allocation is $1,507,000 and its HOME allocation will be $466,000. As part of the overall budget process, the City must reprogram the FY 1997-1998 allocation carryover which it anticipates will not be spent by June 30, 1998, and any anticipated income received by its programs during the fiscal year. The total amount which is anticipated to be available for the FY 1998-1999 budget, including reprogrammed amounts, is $2,643,638. . Fifteen percent(15%) of the City's current grant amount may be used for Public Service Agencies (PSA's). For FY 1998-1999, the maximum amount of funding available for PSA's is $226,050. The City received one new application for funding. Fair housing activities, which are required as part of the City's contract with the federal Department of Housing and Urban Development, are now considered public service activities. Staffs recommended funding levels COUNCIL AGENDA ITEM No. 7 4. • Proposed CDBG and HOME budget, 2 for public services is for the same amount as last year, with the exception of Senior Nutrition and the Juvenile Diversion Program (JDP) which were adjusted to enable funding of fair housing activities. Included in this year's recommended budget is $10,000 for economic development activities with the Greater San Gabriel Valley Economic Development Corporation and $25,000 for public facility improvements for athletic facilities at Rosemead High School. Regarding the HOME allocation, the City Council has approved use of FY 1996-1997 and FY 1997-1998 funds for the Garvey Avenue Senior Housing development. Staff is proposing that FY 1998-1999 funds also be used for the Garvey Avenue development. Of the HOME allocation, 5% may be used for Administration and 15% must be set aside for local non-profit housing development organizations. The City received$1.2 million dollars in CDBG funds which were transferred from the County's Letter of Credit to the City. However, because of the transfer to a computer-based automated disbursement system known as IDIS,the funding is not currently available. Staff has been in contact with HUD staff in Washington D.C. and should have the situation resolved soon. Once the funds are available in the system, it will be programmed by the City Council. Since the City of Rosemead is an entitlement city,the City Council is required to conduct a public hearing regarding projected use of funds. After publication of the Annual Funding Plan, there will be a 30 day comment period prior to adoption by the City Council. All programs outlined in the proposed Annual Funding Plan are in conformance with the City's stated needs as addressed in the City's approved Consolidated Plan. hi order to receive the new allocation and spend the balance of the prior year's, the City must comply with certain requirements regarding presubmission. The requirements are: 1. Fulfill citizen participation requirements by conducting a public hearing to receive citizen input regarding projected use of funds. 2. Develop an Annual Funding Plan. 3. Publish the draft Annual Funding Plan for a 30 day comment period in order to receive citizen input regarding the final document. 4. Hold a public meeting to receive citizen input regarding the Final Plan. 5. Adopt the Annual Funding Plan. Proposed CDBG and HOME budget,3 For your review and approval is the attached proposed budget for FY 1998-1999.Funding available for public service grants is based on 15%of the current year's grant. In order to meet the requirements of the Annual Funding Plan,the second public hearing and adoption by the City Council should be conducted by the Council on April 28, 1998, in order to meet the HUD deadline of May 15, 1998. The following attachments are included: Table I,Anticipated CDBG and HOME funds; Table II, Proposed Budget; Table III, Proposed HOME Budget; Table IV,Public Service Grant Requests; Applications from Public Service Grant Agencies; Proposal from Rosemead High School. RECOMMENDATION: 1. Staff recommends, after public testimony, review and after any amendments, that the City Council approve the City's proposed CDBG and HOME program and the projected use of funds for Fiscal Year 1998-1999, and authorize staff to include this in the Annual Funding Plan. CDBG Administration $170,000 Code Enforcement 95,000 COPS 127,588 Residential Rehabilitation 250,000 Rehabilitation Inspections 100,000 Street Resurfacing 300,000 Valley Blvd. ADA Compliance 600,000 Lorica Street Reconstruction 260,000 Handicapped Accessibility Project 80,000 Commercial Rehabilitation 250,000 Water Quality Project 150,000 Economic Development 10,000 Rosemead High School 25,000 Unprogrammed Funds 0 Public Service Agencies 226,050 Total 2,643,638 Proposed CDBG and HOME budget,4 HOME Administration 23,300 Garvey Avenue Sr. Housing 372,800 Housing set-aside 69,900 Total 466,000 2. That the City Council, after public testimony,review and any amendment, approve and designate funding for public service agencies for Fiscal Year 1998-1999 and authorize staff to include this in the Annual Funding Plan. 3. That the City Council authorize the City Manager, or designee,to act as the official representative of the City to submit the Annual Funding Plan, and all understanding and assurances contained therein, and directing and authorizing the City Manager, or designee,to act in connection with the submission of the Annual Plan, and to provide such additional information as may be required. ? I \) G) \j ( tel 0 0 00 \ / } 0 } 2 $ - ) t: ( { \ a I( ; : § ) P. ] - 2 P. ra t ea \ / { ) ) } Z ° 0 TABLE!! PROPOSED BUDGET c;^ nOf l"ON B)Sn CC ;co)ttop`7 rC o'n Administration $168,000 $170,000 Code Enforcement 154,000 95,000 COPS 132,000 127,588 Residential Rehabilitation 250,000 250,000 Rehabilitation Inspections 100,000 100,000 Street Resurfacing 294,252 300,000 Valley Blvd. ADA 350,000 600,000 Compliance Lorica Street 200,000 260,000 Reconstruction Handicapped Accessibility 80,000 80,000 Commercial Rehab. 250,000 250,000 Water Quality Project 150,000 150,000 Economic Development 0 10,000 Rosemead High School 0 25,000 Unprogrammed Funds 0 0 Public Service Grants 223,500 226,050 TOTAL 2,367,752 2,643,638 1 I �� 1 \ oi \ } / / \ / ` ` - / { { 0 ti • V ` bo \ o ) - — 0 QS \ ; } ! \ - ! C , 1 2) cc — . ( < 3 g 2 e d � /\ ._\ ƒ z (\ \ } ` - ° \ \© , -1 . E0 [) I (4 \ 0 ) \ - C\ B = } _ _ — — — _ ` - / - - - \ § ! b W\ N ' to)_ - \ / § j of / \ \ \ \ { eib \ \ — 1F-1 I 13;1 \y ._/ o\ _ $ \ \ ?l « cct LLL : / \ 2 ut tat f\ ) \ }\ ; \ \ \ \ \ § . ) [ \ ioi d g w / G \ . . \ - J , 4 -