CC - Item 2A - Annual Action Plan for Block Grant CDBG and Home ProgramsTO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: ANDREW LAZZARETTO, CITY MANAG
DATE: MAY 9, 2006
RE: PUBLIC HEARING REGARDING ADOPTION OF THE ANNUAL
ACTION PLAN FOR THE COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) AND HOME PROGRAMS
Since FY 1994-1995, the City of Rosemead has participated in the federal CDBG
program as a direct entitlement city. In FY 1996-1997, the City became an
entitlement entity for the HOME program as well.
In order to receive the new allocation and expend the balance of the prior year's,
the City must comply with the following requirements regarding submission:
Fulfill citizen participation requirements by conducting a public hearing to
receive citizen input regarding projected use of funds and adopt the
budget. A public hearing was held on April 11, 2006.
2. Publish the draft Consolidated Plan and Annual Action Plan for a 30-day
comment period in order to receive citizen input regarding the final
document. The Plan was published April 12, 2006.
3. Hold a second public hearing to receive citizen input regarding the Annual
Plan. Public hearing to be held May 9, 2006.
4. Submit to HUD by May 17, 2006.
Annual Action PRAdoption, 2
To date, during the 30-day comment period, the City has received no public
comments.
For your review and approval is the attached Annual Action Plan and 2006-2007
Annual Funding Plan. Any comments received prior to the Council meeting will
be made available to the Council before the meeting.
RECOMMENDATION
Staff recommends that after receiving public input, discussion and after any
changes, that the City Council:
1. Approve submission of the Annual Action Plan; and
2. Authorize the City Manager to execute all appropriate documents and
certifications and submit to HUD.
i 0
CITY OF ROSEMEAD
DRAFT ANNUAL ACTION PLAN: FY 2006-2007
Introduction
The Annual Action Plan details the projects and programs that will be undertaken in FY
2006-2007, principally with the City's federal entitlement funds: CDBG and HOME. The
Plan also outlines the goals and proposed outcomes for funded projects. This is the
second of five (5) Annual Plans under the City's 2005-2010 Consolidated Plan
General
Geographic Areas of Jurisdiction
As stated in the Strategic Plan, the City of Rosemead is located in the San Gabriel
Valley in the eastern portion of Los Angeles County. Rosemead was incorporated as a
City in 1959. The City enjoys good access to major transportation corridors including the
Interstate 10, Interstate 605, Rosemead Boulevard, Mission Drive, Temple City
Boulevard, Valley Boulevard and Walnut Grove Avenue. Rosemead is a predominantly
built-out suburban community and serves as a residential suburb for surrounding
employment centers, such as Los Angeles. Most of the land area has been developed
as low-density housing.
Basis for Allocating Investment for FY 2006-2007
In accordance with the City's Consolidated Plan, the City will allocate CDBG and HOME
funds to the City's High Priority Needs.
Geographic Distribution
As stated in the Consolidated Plan, CDBG and HOME dollars will be spent in the areas
of homeownership, housing rehabilitation and public services without regard for
geographic boundaries, but focusing on low-to-moderate income households south of
Interstate 10. The majority of infrastructure activities will be undertaken in low-to-
moderate income areas. The City will invest in the Zapopan Target Area and in its newly
designated Jess Gonzalez Target Area.
Actions to address obstacles to meeting underserved needs
Potential obstacles to meeting needs and underserved needs are as follows:
• Lack of affordable land
• Funding constraints
2006-2007 Annual Plan, City of Rosemead
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• Continued reduction for CDBG and other funding sources by the federal
government in FY 2007-2008
Actions in FY 2006-2007 will be to look for non-traditional ways to develop affordable
units; to fund at least one project through the development fund; to work with
government to ensure that sufficient funding continues in order to meet needs.
Managing the Process
Lead Agency
As stated in the City's Consolidated Plan, CDBG and HOME functions are part of
Community Development. Community Development administers the City's CDBG and
HOME funds, and other funds such as Department of Justice and Redevelopment funds
for commercial rehabilitation.
Consultation
The City consulted with a variety of agencies and organizations in the development of
this Plan, including the following:
• Internal Departments of the City
• County of Los Angeles
• San Gabriel Valley Homeless Coalition
• Los Angeles Homeless Service Authority
• Non-profit agencies
• Housing Rights Center
• Local cities
Institutional Structure
In the coming fiscal year, the City will pursue the following activities to enhance
coordination and eliminate gaps in the institutional structure:
■ Attend meetings between service providers and non-profit developers and other
interested parties as available.
■ Continue to participate in the Continuum of Care.
■ Continue to be a member of the San Gabriel Valley Homeless Coalition.
■ Continue to promote fair housing through the administration of fair housing
2006-2007 Annual Plan, City of Rosemead 2
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services with Housing Rights of Southern California.
■ Continue to meet with interested local governments regarding regional approach
to issues, including housing
Citizen Participation
The City's Citizen Participation process was held in conformance with its adopted
Citizen Participation Plan, which was updated as part of the 2005-2010 Consolidated
Plan cycle. The Plan was published for a 30-day comment period on April 5, 2006. A
public hearing was held for adoption of the Plan on May 9, 2006.
Regarding the Annual Action Plan, the City received the following public comments:
(to be inserted prior to sending to HUD)
Monitoring
In conformance with the City's Monitoring Plan, which is found in the City's 2005-2010
Consolidated Plan, the City will undertake the following actions in FY 2006-2007:
Perform monitoring of projects funded through the CDBG and HOME programs. This
includes the following actions during FY 2006-2007:
Performance monitoring - this will include desk audit of billing and a review of
reporting information, as well as one on-site visit/interview. Includes subrecipient
agreement used to measure compliance. Includes inspections of HOME-funded
units and collection of income information for renters in HOME units.
Financial monitoring - this includes costs paid on reimbursement basis. Desk
audit of billing and program activity report at time of reimbursement.
Davis-Bacon Compliance - Includes monitoring of bid package, public bid
process, a check with the State Contractors' License Board and federal
Debarment system to ensure they are licensed and not debarred from federal
contracts. Includes Contract to measure performance, Davis-Bacon wage rates,
site visits and interviews of workers.
4. Environmental Review Compliance - Includes NEPA compliance, historic review,
publication and clearance of project. Includes monitoring of all reviews.
5. Other Areas of Compliance - includes review of contractual compliance with fair
housing, minority and women owned business enterprises, Section 3, affirmative
marketing in HOME projects.
2006-2007 Annual Plan, City of Rosemead
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Housing
Specific Housing Objectives
In Fiscal Year 2006-2007, the City will undertake the following housing
programs/projects:
STRATEGY: Continue the Mortgage Assistance Program. Goal: 1 new home buyer and
a review of housing prices aimed at establishing a local median home price.
STRATEGY: Continue residential rehabilitation through the Housing Rehabilitation
Program. Goal: 20 units through all programs.
STRATEGY: Continue to provide Fair Housing. Goal: Provide funding to the HA and to
Housing Rights Center to provide fair housing information and follow up
STRATEGY: Provide funding to Housing Development Fund Goal: To fund one
development/project in FY 2006-2007.
STRATEGY: To do annual inspections and follow up of HOME assisted units. Goal:
inspect units at Los Girasoles and Garvey Senior Housing and to follow up with annual
income verifications.
Resources
Type
CDBG
CDBG Carryover
HOME
NON-FEDERAL
Redevelopment
Department of Justice
Needs of Public Housing
$1,175,157 See Work Plan
$1,501,624
See Work Plan
$519,469
See Work Plan
$100,000
Commercial Rehabilitation
$295,000
Technology for Police Substation
There is no public housing in the City of Rosemead. This section does not apply to the
City.
Barriers to Affordable Housing
Land costs, availability and land constraints continue to be the biggest barriers to
affordable housing. The City will continue with its Affordable housing program and its
Housing Development Fund.
Amount Projects
2006-2007 Annual Plan, City of Rosemead 4
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HOME/American Dream Down Payment Initiative (ADDI)
The City does not receive ADDI funds.
Leveraging and Match
The City is a 100% match reduction community.
Other forms of investment
The City of Rosemead does not use atypical loans or grant instruments of non-
conforming loan guarantees.
HOME Recapture Provisions in Mortgage Assistance Program (MAP)
As stated in the Strategic Plan, HOME regulation 24 CFR 92.254, Section (I3)(ii)
requires that the participating jurisdiction "recoups all or a portion of the HOME
assistance to the home buyers if the housing does not continue to be the principal
residence of the family for the duration of the period of affordability." In accordance with
this requirement, the City of Rosemead has adopted the policy of repayment of HOME
funds lent. If the loan is refinanced or home sold during the affordability period, the City
also charges an interest rate penalty that declines over the life of the loan to the end of
the affordability period. The principal of HOME funds are always repaid. The
affordability period is 10 years.
Affirmative Marketing
For rental projects consisting of five (5) or more HOME assisted units, the City will use
affirmative marketing procedures and requirements. Affirmative Marketing Plans will
include the following:
The methods to be used to inform the public, owners and potential tenants about
fair housing laws.
2. Description of the efforts that will be made to conduct affirmative market housing
units assisted with HOME funds. Owners and leasing agents will place
advertisement to market HOME-assisted units including local sources, public
agencies and social service organizations.
■ Description of efforts to outreach persons not likely to apply for housing without
special outreach. These efforts will include effort to distribute marketing materials
to organizations that likely have contact with these populations.
Maintenance of records to documents actions taken to affirmatively market
HOME-assisted units and to assess marketing effectiveness.
■ Description of corrective actions that will be taken where requirements are not
met.
2006-2007 Annual Plan, City of Rosemead 5.
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Homeless Prevention and Assistance
Actions to support the Consolidated Plan include:
STRATEGY: Continue to be a member of the Homeless Continuum. Goal: eliminate
gaps in the system.
STRATEGY: Provide funding to People for People for homeless assistance and
prevention activities. Goal: Assist over 100 persons.
Resources
CDBG funds will be used. See Work Plan
Community Development
Community Development Activities
In accordance with the Community Development Needs Table in the Consolidated Plan,
the City plans to undertake the following in FY 2006-2007:
STRATEGY: Provide carryover funding for Alley Paving. Goal: complete the paving
project.
STRATEGY: Provide carryover funding for Pedestrian ADA. Goal: Complete the
installation of ADA accessible crosswalk devices
STRATEGY: Provide funding for Street Sign Graffiti Prevention. Goal: complete project
in FY 2006-2007
STRATEGY: Provide carryover and new funding for Virginia Street. Goal: Complete
Virginia Street reconstruction in FY 2006-2007.
STRATEGY: Provide funding for Consolidated Code Enforcement Activities. Goal: 200
cases in FY 2006-2007.
Resources
CDBG funds for infrastructure, Code Enforcement, Rehabilitation and Economic
Development (includes carryover funds). See Workplan
Anti-Poverty Strategy
STRATEGY: The City's proposed economic development - job creation and retention
activities for fiscal year 2006-2007 include the following:
2006-2007 Annual Plan, City of Rosemead 6
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owners in RDA areas.
and
STRATEGY: Funding for business assistance, including the Rebate and Loan program.
Goal: to provide assistance to a minimum of 2 businesses in FY 2006-2007 in either
program.
STRATEGY: Continue other services to assist families. Goal: Continue City's
transportation programs and participation. Continue to support the Housing Authority for
Section 8 rental assistance.
Non-Homeless Special Needs
The City will continue its public service activities, as well as its ADA program. In FY
2006-2007, the City will:
STRATEGY: Provide social services to seniors, youth and battered women. Goal: see
individual projects for goals.
Resources
CDBG funds for ADA activities and CDBG funds for public services. See workplan.
Fair Housing
Minority Business Outreach
The City maintains opportunities for minority businesses and contractors to access its
programs. The City has several avenues of access: it maintains a courtesy contractors
list for its residential rehabilitation program. The City also hosts an annual homebuyer
fair and outreaches minority lenders and agents for representation in its fair for its
mortgage assistance program. For large construction projects, the City uses a variety of
print media to outreach contractors for construction projects. The City will continue
these activities in the 2006-2007 fiscal year.
FY 2006-2007 Activities
The City will undertake the following activities to further fair housing:
■ Work for the development of housing through its CDBG, HOME Housing
programs to assist lower-income households.
■ Expand fair housing outreach through articles, attendance at fair housing events
commercial building owners. Owners must
creation and expansion.
)usinesses, and
retention, or job
2006-2007 Annual Plan, City of Rosemead 7
and possible workshop/outreach meeting.
■ Provide fair housing services and information and tenant-landlord services.
• Continue Mortgage Assistance program to assist lower-income households.
■ Continued to assist state and federal housing enforcement agencies by
investigating fair housing complaints.
■ Implement recommendations from the City's Analysis of Impediments (AI) study
and include results in FY 2005-2006 CAPER.
CDBG and HOME Work Plan and Budget FY 2006-2007
CDBG
Administration
$200,000
Fair Housing
25,000
Consolidated Code Enforcement
241,000
Residential Rehabilitation
300,000
Rehabilitation Activities
67,328
Lead/Asbestos Testing
20,000
Lead and Asbestos Remediation
100,000
Commercial Rehabilitation
100,000
Alley Paving
355,611
Pedestrian ADA
5,000
Virginia Street Reconstruction
676,568
Za o an Police Substation
5,000
Family Counseling
38,400
People for People
27,606
San Gabriel YMCA
9,840
Senior Nutrition
79,794
YWCA Wins
8,500
Rosemead School District
12,134
HOME
Administration
$51,947
Community Housing Dev. Org. Set-
Aside
77,920
Mortgage Assistance Program
150,000
Housing Dev. Fund
239,602
2006-2007 Annual Plan, City of Rosemead 8
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