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CC - Item 2B - Adoption Of The Proposed Consolidation and Annual Funding Plansstaf lep TO: HONORABLE MAYOR. AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGE�� DATE: MAY 2, 2000 - RE: PUBLIC HEARING REGARDING ADOPTION OF THE PROPOSED CONSOLIDATED PLAN AND ANNUAL FUNDING PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME PROGRAMS . Since FY 1994, 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 FY 2000 -2001, the City's CDBG allocation is $1,513,000 and its HOME allocation is $504,000. As part of the overall budget process, the City must reprogram the FY 1999 -2000 allocation carryover that is anticipates will not be spent by June 30, 2000 and any anticipated program income received by its programs during the fiscal year. The total amount of CDBG funding which is anticipated to be available by the FY 2000 -2001 budget, including reprogrammed amounts is $3,983,812 and $955,150 in HOME funds. 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: 1. Fulfill citizen participation requirements by conducting a public hearing to receive citizen input regarding projected use of funds (April 11, 2000). MAY 0 9 ?_JQfl ITEM No.- 13 COUNCIL , GEC DA CONSOLIDATED PLAN, pg. 2 2. Publish the draft Annual Funding Plan for 30 -day comment period in order to receive citizen input regarding the final document (published April 12, 2000). 3. Hold a second public hearing to receive citizen input regarding the Consolidated Plan and to adopt the Annual Funding Plan (May 9, 2000). 4. Submit to HUD (deadline for submission is May 15,2000). The 30 -day comment period is due to end on May 11, 2000; however, the City Council is being asked to adopt the Plan on May 9, 2000. The reason for this is due to federal submission requirements. May 9, 2000 is the last Council meeting before the May- 1-5, 2000 submission deadline. If any comments are received between May 9 and May 11, 2000, the Council will be notified. If any comments require a change to the Consolidated Plan, those comments will be agendized at a later meeting as a proposed change to the Plan. During the 30 -day comment, the City has received one comment from a member of the public, stating that the proposed funding reduction for the Rosemead School District is not proportional since the School District receives only $12,134 per year and the next largest grant is $24,600. Council had earlier directed that the cuts be distributed among the four largest agencies equally. Based on public comment, staff proposes that the cuts be made among the four largest agencies in proportion to size. Funding to Senior Nutrition, People for People and A & R Community Childcare would remain the same. This would mean that the agencies would receive funding as follows: Agency Current Funding Reduction Approved 4111/00 Proposed Revised Reduction Boys and Girls 24,600 24,056 24,171 Family Counseling 40,000 39,456 39,301 Juvenile Diversion 48,000 47,456 47,163 Rosemead .School District 12,134 11,590 11,923 Senior Nutrition 78,000 N/A N/A People for People 8,259 N/A N/A A & R Childcare 9,133 N/A N/A CONSOLIDATED PLAN, pg. 3 Attached for your review is the 2000 -2005 Consolidated Plan which includes the 2000 -2001 Annual Funding Plan on pages 35 through 41. Any comments received between now and the Council meeting will be made available to the Council before the meeting. RECOMMENDATION Staff recommends that the City Council: 1. Approve the revised funding for the four largest public service agencies; 2. Approve the 2000 -2005 Consolidated Plan and Annual Funding Plan for FY 2000 -2001; - 3. Authorize the city Manager to execute all appropriate certifications and submit to HUD. City of Roses May 200 2000 -2005 Consolidated Plan City of Rosemead DRAFT May 2000 Table of Contents 2000 -2005 Consolidated Plan .......................................................... ............................... 1 Cityof Rosemead ......................................................................... ............................... 1 Introduction....................................................................................... ..............................4 NeedsAssessment .......................................................................... ............................... 5 Community Description .................................................................. ..............................5 Citizen Participation and Consultation .......................................... ............................... 5 LeadAgency ............................................................................. ............................... 5 CitizenParticipation .................................................................. ............................... 5 Consultation with other entities ................................................. ............................... 5 Summary of Citizen Comments ................................................. ............................... 5 Market Conditions and Housing Needs ........................................ ............................... 6 Population, Age, Race and Ethnicity .......................................... ..............................6 HouseholdSize .......................................................................... ..............................7 HouseholdIncome .................................................................... ............................... 7 Areas of Low Income Concentration ......................................... ............................... 8 -_ Characteristics of the Housing Market ...................................... ............................... 8 PublicHousing: ...................................................................................................... 16 SectionEight: ......................................................................................................... 16 Nature and Extent of Homelessness ......................................... .............................16 Needs of Sheltered and Unsheltered Homeless ..................... ............................... 17 Definitions:_ ............................................................................ ............................... 17 Homeless Subpopulations ......................................................... .............................17 Special Needs Populations ........................................................... .............................19 LeadBased Paint ....................................................................... ............................... 19 YearBuilt ................................................................................. ............................... 20 Barriers to Affordable Housing ...................................................... .............................20 Other Community Development Needs ........................................ ...........................:.23 Public Facilities and Public Services ......................................... .............................23 ADAImprovements ................................................................... .............................23 Capital Improvements ( Infrastructure) ....................................... .............................23 PublicServices ........................................................................ ............................... 24 Economic Development .......................................................... ............................... 24 Housing And Community Development Strategic Plan ................. .............................25 Housing and Community Development Resources ................... .............................25 Housing and Community Development Projects and Programs ... .............................26 General Priorities for Allocating Investment Geographically .... ............................... 26 General Relative Priorities for Allocating Investment .............. ............................... 26 Obstacles to Meeting Needs and Reduction of Barriers ............. ............................... 27 PriorityHousing Needs ........................................................... ............................... 27 Lead -Based Paint ...................................................................... .............................28 Institutional Structure ................................................................ .............................29 Integrated ApproachNision and Regional Connections ............ .............................29 Continuum of Care .................................................................... .............................30 2000 -2005 Consolidated Plan 2 SpecialNeeds ........................................................................... .............................30 Priority Community Development Needs ................................. ............................... 30 Anti - Poverty Strategy .............................................................. ............................... 31 FairHousing (AI) ..................................................................... ............................... 32 One -Year Action Plan, 2000 -2001 .............................................. ............................... 35 Funding Sources ( Annual) ......................................................... .............................35 Leveraging.............................................................................. ............................... 35 Summary of Work Program ......................................................... ............................... 36 CDBGand HOME ..................................................................... .....................:.......36 CDBG...................................................................................... ............................... 36 HOME..................................................................................... ............................... 36 Integrated ApproachNision ....................................................... .............................36 Coordination and Institutional Structure .................................... .............................36 PublicHousing ........................................................................ ............................... 37 Homelessness......................................................................... ............................... 37 Lead -Based Paint Hazards ..................................................... ............................... 37 Reduction of Barriers .............................................................. ............................... 38' Anti - Poverty Strategy .............................................................. ............................... 38 Monitoring.- .............................................................................. .............................38 -- -� 2000 -2005 Consolidated Plan 3 INTRODUCTION The City of Rosemead's 2000 Consolidated Plan coordinates all elements of community development: housing, neighborhood development, economic development and human services into a single plan and vision of community development activities to be undertaken with respect to Community Development Block Grant (CDBG) and HOME activities. The Consolidated Plan states the City's plan to pursue the overall goals of the community development and planning programs of the Department of Housing and Urban Development (HUD): 1. To provide decent housing; 2. To establish and maintain a suitable living environment; and 3. To expand economic development opportunities. The Consolidated Plan serves the following functions: 1. A planning document for the City, based on a participatory process; 2. An application for federal funds under HUD's formula grant program of CDBG and HOME 3. A strategy for carrying out HUD programs; and 4. An action plan that provides a basis for assessing performance. The 2000 Plan is organized into three (3) basic sections: Needs Assessment, which describes the community, the citizen participation process, market conditions and housing needs, nature and extent of homelessness,- the needs of special populations and other community development needs; the Housing and Community Development Five -Year Strategic Plan, which describes the anticipated resources over five years to meet needs, the priority needs summary tables, general priorities for allocating resources, and priority needs based on the Needs Assessment; the One -Year Action Plan, which describes the actions the City plans to undertake in FY 2000 -2001 after receipt of federal funds. 2000 -2005 Consolidated Plan 4 NEEDS ASSESSMENT Community Description The City of Rosemead is located in the San Gabriel Valley in East central Los Angeles County. Rosemead was incorporated as a city in 1959, with a population of 15,476 and by 1999 had a population of over 56,000. Rosemead enjoys good access to major transportation corridors including Interstate 10, Interstate 605, Rosemead Boulevard, Mission Drive, Temple City Boulevard, Valley Boulevard and Walnut Grove Avenue. Rosemead functions as a residential suburb for surrounding employment centers, such as Los Angeles, and the majority of its land has been developed as low- density housing. Overall, Rosemead has a lower median income and a higher percentage of low- income residents than a majority of the cities in the County. _ Citizen Participation and Consultation Lead Agency The Community Development Division of the City of Rosemead is the lead agency in the development and implementation of the City's Consolidated Plan. Citizen Participation The City of Rosemead has an active citizen participation process and has worked with citizens to develop both its Consolidated Plan and One -Year Action Plan. The City held a Consolidated Plan workshop and two (2) public hearings relating to the proposed Consolidated Plan. _ The City held its Consolidated Plan workshop on January 6, 2000. The City held its first public hearing on April 11, 2000, regarding the proposed Consolidated Plan and published the plan for a 30 -day comment period on April 12, 2000. The City held its second public hearing regarding Plan adoption on May 9, 2000. Consultation with other entities The City consulted with the Los Angeles Community Development Commission, which serves as the housing authority of the City of Rosemead, as well as with departments and divisions within the City structure -and with non - profit organizations. In addition, other cities within the jurisdiction were invited to comment. A copy of the final Plan will be sent to the State of California. Summary of Citizen Comments At its Consolidated Plan workshop, the City did not receive any public comments. 2000 -2005 Consolidated Plan 5 At the public hearing held on April 11, 2000, the City did not receive any public comments. During the 30 -day public comment period, the City received the following public comments: • A comment from a resident that the amount of funding reduction for Rosemead School District was proportionally greater than for the other agencies receiving funding reductions, since the School District only receives $12,134 per year and the next largest agency receives $24,600. At the public hearing held on May 9, 2000, the City received the following public comments: Market Conditions and Housing Needs Population, Age, Race and Ethnicity In 1980, the City had a population of 42,604 people. By 1990, that figure had grown to 51,638, an increase of 17.5 %. Current projections for the City put the population at 56,664 in 1999 - (Department of Finance, Official State Estimates), an increase of 8.1 % over 1990. Table 1 Population Estimates (U.S. Census 1960, 1970, 1980, 1990, Department of Finance 1999 c��em1i96„0 �� 1,970, i1;980g ,'r1 1990 yT9_9,9'a ,; 15,476 40,972 42,604 51,638 56,664 During the years 1980 -1990, the ethnic distribution of the City also changed. Between 1980 and 1990, the City's white population decreased from 65% to 16 %, with a concurrent increase in minority population. 2000 -2005 Consolidated Plan 6 Table 2 Population 1990 kyV 3� �'tjl �1. L? Il + '' + � + y' � } p �� } T ' '�ty� K fj 1 � .,� oIO Lt y 1� Ti' �1hX z� y�^ra�: 5�s.�P u.{" �3 .F u`�.._.7.�.:I.1 � ��.'w�. t u... I Y�.'r`rt`3�.n e5.��.. CY�✓JJ1��Ylwi °TotaIGPopuI tl 51,638 100 Mlu'Fl�4 ,White "(not, - ispanic WN 8,282 t 16 � Black�(not'hispanic) 146 �' SL"'"U .03 RLttiw '�Y�E"IIT.f'H,v3`:G�u'CLu ;Hispanic: {alb ar cng" 25,463 49 NafiveAmencan 142 g �' 03 SEEM. �. �t ;Asian /I I`slantler 17,424 34 s`2Fx "Ri r '° s''k: kOth g%�g 181 .4 Source: 1990 Census _ Household Size Household size is one indicator identifying household growth as well as overcrowding in individual housing units. A city's average household size will increase over time if trends move towards larger families. In communities where the population is aging, the average household size typically declines. There was an average of 3.19 persons per household in 1980 and 3.72 persons per household in 1990. In comparison with Los Angeles County, average household size in Rosemead is larger. Between 1990 and 1999, average household size is estimated to have increased in both the City of Rosemead and the County of Los Angeles. This increase can be partly attributed to cultural differences in relation to household size, privacy and co- habitation of extended families. Larger households in the City will result in an increased demand for larger sized housing units and apartments, relative to other types of housing. Since the City is predominantly built out, the most likely method of accommodating this growth is through additions to existing housing. Household Income The major factor that constrains the ability of households to obtain adequate housing is income. The 1990 Census reported that median household income in the City was $29,970, which was 14% lower than that for the County. This difference in income is reflective of higher residential costs in other areas of the County, which has historically attracted a more affluent population. According to the 1990 Census, household income levels vary widely in Rosemead. Table 3 presents the estimated number and proportion of the City's 1990 households that fall 2000 -2005 Consolidated Plan 7 within a series of ten (10) income ranges. Nearly 61% of the City's households, in 1990, earned an annual income between $10,000 and $49,999. At the opposite end of the spectrum, 14% of Rosemead households earned less than $10,000 per year, while 25% earned $50,000 or more annually. Table 3 Household Income, 1990 f 'x. 'tYS,ra"F r,IncomeRa.�sge ; � ? < -:- '�.as r eY..,.:�;�, �' • # Ho °Id a U � .2F,TSC;'�+wa&'s"TF. r /oO Under $5,000 699 5.1 $5,000 - 9,999 1,233 9 $10,000 - 14,999 1,343 9.8 $15,000 - 24,999 2,425 17.7 $25,000 - 34,999 2,316 16.9 $35,000 - 49,999 2,261 16.5 $50,000 - 74,999 2,247 16.4 $75,000 - 99,999 808 5.9 $100,000 - 149,999 301 2.2 $150,000 or more 68 .5 Totals 13,701 100.0 source: iaau census Areas of Low Income Concentration According to the 1990 Census, the greatest concentration of very low income and low income households were located between Valley Boulevard and Garvey Avenue, primarily adjacent to the San Bernardino freeway (Interstate 10). The median household income in these areas was below the County median income- Characteristics of the Housing Market Household Size and Type The Department of Finance estimates that in 1999, there are an estimated 14,313 single units, making Rosemead a medium -sized community. During the 1990's, Rosemead grew at a slightly slower rate (1.3 percent) than other San Gabriel Valley cities, including Alhambra, which grew by 1.7 percent and Monterey Park, which grew by 1.8 percent. The County as a whole experienced a growth rate of nearly twice that of Rosemead's during the 1990's. 2000 -2005 Consolidated Plan 8 - - - -- Table 4 Housing Trends, Rosemead and Los Angeles County, 1990 -1999 Number of Housing d nits .� . ���'����* + "rr aar caw '+w fJunsdlctlon " *.: . "sst�3 R,*a'^ s."vpn"L' atu.E' ,� 1990 �v= Yk.rw i ..'a'.`,5' 551 —A4" "L.kra+cV ...a" sg#*r.' -.�Y^ r Percent Increase Alhambra 29,598 30,112 1.7 Monterey Park 20,298 20,658 1.8 Rosemead 14,134 14,313 1.3 San Gabriel 12,736 12,860 1.0 Los Angeles County 3,163,310 3,261,750 3.1 source: uepartment or t- tnance, cttyicounty roputation ana mousing estimates, 1 -1 -9u ana 1 -1 -99 Housing Availability Analysis SCAG's current RHNA estimates are detailed in the table below and show estimated need in the community based on estimated replacement and rehabilitation requirements: Table 5 Hou�se-tiold, �" 1/98 6%05 1. -tq -- ) °� y �Vacaricy Need'o,�;' ' f t ” Replacement „ Need : a i.u � Coristr Need ` ` ROME , " hO I Annual r _ kC no structiori3Need 551 44 1 181 776 103 aource: rsegtonat mousing tveeas Assessment, 7999 This need is further defined by income distribution as follows: Table 6 ^a } Very Low Income # y h Low lnp ome h y rModerate Income �AboveYMode-rate c xr Total Construction r a.r r a : fi , ,, Income 6� -w. �'� 1l�nits /Perdent a Units /Percent, Units /Percentn" Need s "� a, raw :. E'. Units /Percent 202/26% 132/17% 155/20% 287/37 % 776 source: Kegtonal mousing Neeas Assessment, 1999 As can be seen in this table, the highest construction need is found in households between moderate and above moderate income (37 %), with 26% of the need to be found in very low income households. 2000 -2005 Consolidated Plan 9 Housing Supply, Condition and Tenure The 1990 Census reported 37,341 occupied housing units in the City. Of these, 53.8% were single family detached units. Not all of . these, however, had owner - occupants. Eighty -eight percent of single family units were owner occupied and the other 12% were rented. Condominiums comprised another 9.4% of the housing stock and a little less than half, 49.8 %, were owner occupied during the 1990 Census, with the other 50.2% being rental units. Multi- family housing, comprised of 2+ units, represented 29.5% of the housing units in the City. Nearly all units were renter occupied, but 7.5% were owner occupied. Finally, a small proportion, 7.4 %, of all units were characterized as mobile homes or other types of units. These units were overwhelmingly owner occupied, 86.8 %, with only 13.2% being renter occupied. Housing units in the City of Rosemead tend to be smaller in the City than in the County as a whole. In 1990, 66.5% of all housing units in the County had six or more rooms; while in the City, only 39.9% had six or more rooms. The majority of the City's housing stock, approximately 74 %, was built prior to 1960 and an additional 12% is between 20 and 30 years old. - Figure 1 Year Built Y C d U N �O �O' �O' 6 0' �O' �O' �G N ^0J N ^C O % of Total -— 2000 -2005 Consolidated Plan 1 Affordability State and Federal standards for housing overpayment are based on an income -to- housing cost ratio of 30 percent and above. Households paying greater than this amount have less income left over for other necessities such as food, clothing, utilities and health care. It is recognized, however, that upper income households are generally capable of paying a larger proportion of their income for housing and, therefore, estimates of housing overpayment generally focus on lower income groups. . According to the 1990 Census, an estimated 4,430 of Rosemead's lower income households were paying more than 30 percent of their income on rent or mortgage payments. Of these overpayers, 2,916 are classified as very low income, translating to 76 percent of the City's total 3,836 very low income households overpaying for housing. Among low income households, the rate of overpayment drops to 59 percent, or a total of 1,514 households. Moderate and upper income households who are paying more than 30 percent of their income for housing are likely to be first -time home buyers who have chosen to spend more for housing in order to obtain home ownership. - The distinction between renter and owner housing overpayment is important because, while home owners may over - extend themselves financially to afford a home purchase, the owner retains the option of selling the home. Renters, however, are limited to the rental market and are generally required to pay the rent established in that market. The 1990 Census has broken down housing overpayment by housing tenure as presented in the following table. Table 7 se Hou holtl c r Uery L =ow Income +; t •x 2 Low Incomerf �� . � r ; sx � g rTotalr �", ��r Owner 543 610 1,153 Renter 2,373 904 3,277 Total 2,916 1,514 4,430 6ource: 7 vvu uensus Repoli Of the total 4,430 lower income households in Rosemead identified as overpayers, 3,277 were renter households and only 1,153 were owner households. This difference is largely reflective of the tendency of renter households to have lower income than owner households. 2000 -2005 Consolidated Plan 11 With the continued escalation in rents and home prices, affordable rental and home ownership continues to be difficult for low- income households. Rosemead is not alone in this area. As outlined in "Widening the Gap: New Findings on Housing Affordability in America," housing affordability has continued to decline nationwide for lower income households. The California Associates of Governments (SCAG) has estimated the current needs of households based on the 1990 and data projections for household growth. This is known as the Regional Housing Needs Assessment (RHNA). The SCAG RHNA Table for the City of Rosemead is detailed below: Table 8 Source: SCAG RHNA, DOF98, Census 1990 1HUD CHAS 1990 2000 - 2005 Consolidated Plan 12 30 50 /o 0�,80 /o}of Y`^Medtan�r . 6 Median( ���Medianr� s� ��;'Total�`�" C�r�,�e,�'1 InCiQmery inCiome 1 i r`S',. ; - ae71'`k r ,Households ;�R_e` =� 1,770 1,222 1,823 557 1,641 7,013 ? 861 635 1,402 576 3,352 6,827 (Total2 2,631 1,858 3,225 1,133 4,993 13,840 Households �' s7`4`r' fir, E Housing , Problem' {= Renters,, =l 1,621 1149 1,239 281 640 4,930 ,Owner 439 349 682 251 1,153 2,873 ,4 , =Total r 2,059 1,498 1,922 531 1,792 7,802 Households } dr4 '� aP191 .: Overp ymenttA Renters 1,539 980 658 90 47 3,314 Qwners 434 262 591 165 525 1,976 , Tgfa "": 1,972 1,243 1,249 255 572 5,290 Housek olds . Overcrowding" Renters r 1,041 690 814 268 467 3,280 Owners �;_; 113 163 430 128 8051 1,639 ' F To bP, 1,154 853 1,244 395 1,272 4,919 Source: SCAG RHNA, DOF98, Census 1990 1HUD CHAS 1990 2000 - 2005 Consolidated Plan 12 The Census definition of a large family is one with five or more members. The 1990 Census indicated that almost 32% of the City's households have five or more members and the majority of these were in family units. This translates into 4,421 households. The low income, large household presents special problems because of the average size of units in the City and the potential for disparity between household income and housing cost. Large households with children have an even more difficult time finding housing as rental housing often may have only one -to -two bedrooms. The 1990 Census indicated that 4,592 persons, or approximately 8.9% of the City's population was 65 years or older. The proportion of elderly can be expected to increase as those persons between age 35 and 64 grow older. Escalating housing costs, particularly in the rental market, severely impact housing affordability for the elderly, who are usually on fixed incomes. While an estimated 37% of Rosemead's elderly are homeowners, a significant number of the City's mobile -home park residents are elderly. According to the 1990 Census, there are 180 seniors whose income fell below the poverty level in Rosemead. The cost of housing determines whether or not a household will be able to obtain an adequately sized unit in good condition in the area in which they wish to locate. In 1990, the median home value in Rosemead was $193,000, which was 22 percent below that for San Gabriel and the Countywide median. Updated comparative sales data was obtained by the California' Association of Realtors for October 1999. this information shows that housing sales prices have fallen County -wide from 1990 levels, with the exception of San Gabriel. At a $159,000 median sales price, housing prices in Rosemead in 1999 are still well below the County median, although the differential has narrowed to some extent. Table 9 Housing Values: Rosemead and Surrounding Jurisdictions y � ;Junsdtcttonk �'x a co'}(^ { F x�q t .u1,�r r ' 1990`Medtan Houstng ems. j � s 'r X1999 " October,„ Rosemead $193,000 $159,000 Alhambra 227,900 191,000 El Monte 172,000 141,000 Monterey Park 235,400 174,000 San Gabriel 248,000 258,000 Los Angeles County 248,000 178,000 Source: 1990 Census Report, California Association of Realtors, October 1999 Median housing prices in Los Angeles County in 1999 are still below the real estate market's peak in 1990, despite recent increases. Median prices of single - family homes in Rosemead have remained below prices in San Gabriel and other areas of Los Angeles County. Housing and Condominium sales were tracked over the December 1998 — November 1999 period through Data Quick. According to this data, 117 single - family homes were sold in the City, with 56 percent comprised of three- bedroom units, while 53 multi- family 2000 -2005 Consolidated Plan 13 homes /condominiums were sold. The reported sales of single - family homes ranged from a low of $105,000 to a high of $180,000 for two- bedroom units. The median price for a two - bedroom home in Rosemead was $146,000. Three bedroom units ranged from $118,000 to $260,000, while the median home price for a three - bedroom unit was $173,000. The median price for a four - bedroom unit was around $200,000. Table 10 outlines the maximum affordable home prices for very-low, low and moderate - income households. Maximum affordable monthly mortgage payments and maximum affordable mortgages are determined by taking 30 percent of the median income for a family of four for each income category. According to the table, very low- income households can afford a maximum home price of $68,100, low- income households can afford a maximum home price of $107,600 and moderate - income households can afford a maximum home price of $161,400. Comparing the sales prices for a home in Rosemead with the City's income structure, it is evident that there are homes available for purchase at prices that are affordable to the City's low and moderate- income households. By assisting prospective first -time home buyers with down payment and closing costs, the City is expanding the supply of housing that is affordable to these households. Table 10 -- Affordable Homeownership Costs by Income Category At Risk Housing At this time, there is no housing at risk of losing its affordability in the City of Rosemead. Overcrowding The Census definition of overcrowding is 1.01 or more persons per room. The statistics below on overcrowding are based on 1990 Census data. - 2000 -2005 Consolidated Plan 14 30 -year fixed mortgage and monthly payment of 30% of L.A. County Median Family Income of $51,300 for 1999_ 2000 -2005 Consolidated Plan 15 Table 11 OVERCROWDED HOUSEHOLDS According to SCAG estimates for RHNA, as detailed in Table 8 and broken out here in a separate table, estimated households with overcrowding are broken down by income groups as follows: Table 12 n R''Oy ; rM1 5 ° n' L' �,Y, a 'p 30 /o r of &4 *'p �.5i9 aabSi1x S R 0 ^4j" 130 50 /o pf '1, e.w i�d v S U.50 os 6V M 'R g T A 1 o f Y 80 95 /o ofk r � >95 %�' MnnPo:v+ x• of 38" ti 8i. J.r f v SX rt otal c x x`11t k; Median, a Median ^` FMedian I > ' k comet Inco me { comelncome_} , 3 ; ., ,In fHouseholdsr with i :y I nf 1 � r � {O'v_ercrgwdingg r Renters 1,041 690 814 268 467 3,280 � e S 't' . CL 113 163 430 128 805 1,639 0 �, "Fr 3 4 Y r' '" {pl�a_ 1 Total 1,154 853 1,244 395 1,272 4,919 Source: Regional Housing Needs Assessment, 1999 Assisted Housing Inventory Public Housing: There is no public housing in the City of Rosemead Section Eight: - The Los Angeles. Community Development Commission serves as the housing authority for the City of Rosemead. Currently, there are Certificates and Vouchers under lease within the City limits. Nature and Extent of Homelessness In 1998, the Cit of Rosemead Community Development Division, in conjunction with the Los Angeles County Sheriffs office undertook a homeless count night. The Community Development Division, in partnership with the Sheriffs office and the City's Code Enforcement officer, identified potential, sites that were possible sites for homeless populations. These sites were then incorporated into a homeless count night. In that count, the City found eight persons, of which three stated they were not homeless. One stated that he was an illegal immigrant here to work, one stated that he was visiting his. friend and one stated that she was temporarily estranged from her family. There was one unsheltered female and no unsheltered children. The majority of respondents stated that they were unsheltered by choice and had a place for shelter if it was raining or very cold. The majority of the population had identifiable alcohol and /or drug dependencies. In 1999, 2000 -2005 Consolidated Plan 16 the Urban Research group conducted a study of the homeless in the San Gabriel Valley. In its report, it identified 18 persons who had used emergency outreach services from the City of Rosemead. Of these 18, nine reported a permanent address and were not homeless. Based on the foregoing, the City of Rosemead estimates that its homeless population is between 13 and 16, of which approximately five to six are unsheltered. Needs of Sheltered and Unsheltered Homeless According to the U.S. Department of Housing and Urban Development (HUD), the sheltered homeless refers to people living in emergency shelters, transitional housing, or living in motels with the assistance of emergency rent assistance vouchers. The unsheltered homeless refers to people living in places unfit for human habitation, such as the street, a car or garage. Persons paying their own rent, regardless of overcrowding or lack of cooking facilities, are not considered homeless, but are categorized as persons "at risk" of homelessness. Although the needs of the severely mentally ill and those with alcohol and other drug dependencies continues to be high, there has been a trend over the last 10 -15 years towards a "new homeless" population of persons who, because they live on a narrow margin or "paycheck to paycheck ", may find themselves homeless once they have experienced an unexpected expense or loss of job. Once out of housing, it is very difficult for them to reenter the housing market due to the increasing costs of rental and ownership housing. Single parent households, those below 30% of median income, battered women and runaway youth are the most vulnerable to becoming the "new homeless." The City participates with a number of agencies in a Continuum of Care to provide services to the homeless, as well as providing funding to People for People, who provide assistance to the homeless and to those at risk of becoming homeless. Definitions: - Homeless Subpopulations Severely, Mentally III - Definition: A serious and persistent mental or emotional impairment that significantly limits a person's ability to live independently This is the most difficult population to serve and requires intensive periods of time invested in each individual. In addition, this population tends to resist "indoor" living and some need hospitalization and, therefore, are not accepted by motels or shelters. Alcohol and Substance Abuse - Definition: Serious and persistent alcohol or substance abuse that significantly limits a person's ability to live independently. As seen above, substance abuse figures in a significant number of cases handled by homeless providers. There are three types of common profiles: 1) heads of households or individuals who mask or deny the fact that funds available for housing are spent on alcohol or drugs, 2) persons with a history of substance abuse currently in recovery who lack funds or job skills to obtain and maintain adequate housing in a sober environment; 3) persons for whom alcohol or drug dependence is secondary to mental illness or brain damage. 2000 -2005 Consolidated Plan 17 Traditionally, the shortage of recovery beds for indigent persons and the lack of access to affordable sober living environments creates a barrier to continued sobriety. Persons who have completed a detox program need immediate access to a low income sober living environment. Low income persons in recent sobriety need safe, sober and affordable housing in order to move forward with education, job training, parenting skills and other self - sufficiency efforts that cannot be accomplished when trying to pay 80 -90% of income for rental payments. Dually Diagnosed - Definition: Suffers both severe mental illness and substance abuse problems. Dual diagnosis refers to chronically mentally ill abusers. Among homeless persons, there is a heavy prevalence of alcoholism and /or other substance abuse and severe mental illness, approximately 36 percent as a nationwide average. In addition, persons who are substance abusers and have mental illness or brain damage /learning disabilities need access to psychological /neurological evaluation services, affordable housing, assistance with obtaining disability income (when appropriate) and supportive services. Because of impaired mental functioning -- whether due to mental illness, brain damage or other learning disabilities -- achieving and maintaining sobriety is especially difficult. Fleeing Domestic Violence. According to the National Clearinghouse for Defense of Battered Women, on an average night, one half of adult clients in American shelters that primarily serve families with children have been involved in domestic violence (Division of Policy Studies, U.S. Department of Housing and Urban Development, Report on the 1988 National Survey of Shelters for the Homeless, pg. 14). Victims of household violence face the burdens of homelessness, coping with physical /mental trauma and the need for affordable safe and secure housing. Homeless Youth - Definitions: Unaccompanied person (17 or younger) who is living in a "shelter" or "unsheltered" environment. A small percentage of the homeless population falls into this category. In a study by the U.S. Conference of Mayors in 1992, 5 percent of the homeless populations are identified as "run away" or "throw away" teenagers. Many have left home after having been physically and /or sexually abused by a family member. People with Aids (PWA's) or Related Diseases. According to the National Commission on AIDS, one -third to one -half of all persons with AIDS may be homeless or at imminent risk of homelessness due to illness, cost of treatment and lack of support systems. People Threatened with Homelessness. People can be threatened with homelessness when they experience a drop in income and /or a rise in rent, or because they do not have the skills necessary to manage limited resources. Most at risk are those on fixed incomes or the marginally employed, who have few ties to family and friends. They may be people who have been recently and suddenly laid off. Other subpopulations threatened with -- 2000 -2005 Consolidated Plan 18 homelessness include people facing catastrophic illness, emancipated foster youth and the recently deinstitutionalized. Special Needs Populations Elderly - The 1990 Census indicated 4,592 of the City's population at 65 years of age and older. Many elderly residents are affected by the continued rise in the cost of housing. The 1990 Census indicated that of people 65 years of age and older, or 180 residents had incomes below the poverty level. Low - income senior renters are not the only seniors who experience problems as a result of high housing costs. Many elderly homeowners living on limited retirement income have equity in their home, while still having problems meeting the day -to -day cost of living. Developmentally Disabled - The nationally accepted percentage of the population that can be categorized as developmentally disabled is 1 -3 percent. This figure is published_ by the Association of Retarded Citizens (ARC), a national organization for developmentally - delayed and disabled citizens. Based on this figure, the local estimate for the City would be approximately 1, 133. Physically Disabled - The housing needs of disabled persons vary with the type and severity of the handicap. Not all individuals require specialized housing considerations. However, a large percentage of those who are able to live independently require a street level unit with kitchen and bathroom modifications. Accessibility to public transportation is also desirable. In addition to these needs, there is often the need for affordable housing. No statistics are available on the total number of handicap units in the City. In the 1990 Census, 2.5 percent of the City's population, or 1,276 families reported having a mobility or self -care limitation, including 780 persons over the age of 65. People with Aids (PWA's) - Due to the progression of this disease, new medications notwithstanding, the housing goals may be different from other populations with special needs. PWA's may be unable to work and may be dependent on SSI. In addition, as the disease progresses, PWA's may need supportive housing once they are no longer able to live at home. It is assumed that half of those with AIDS will require supportive housing at some point during their lives. Lead Based Paint Since 1978, paint has been allowed to only contain a maximum of 600 parts per million. More than three quarters of pre -1978 homes contain lead -based paint (LBP), according to the federal government. A majority of Rosemead's housing stock is pre -1978, with approximately 9.8 percent built before 1940. By applying nationally recognized percentages to the number of units by age of building and income group, it is estimated that 58 percent of the housing stock may have LBP. Households with low income represent approximately 70 percent of the household population, but occupy only 54 percent of older units. Therefore, contrary to national 2000 -2005 Consolidated Plan 19 statistics, low income households in Rosemead are at no greater risk of exposure to lead hazards than the general population. Table 13 Estimated Lead -Based Paint Hazard Potential by Income Group x >Year B`wlt F,Extre�mely�Low an�d r P "i -�'�5�`.5' 'ac �! °OthergLowTotalNat4L � �BP;%� $ "LBP a, . tr_a� z Very Low lncom-- 4.Income d� FG A tfx . units A<, 1 960 -1979 Owners 298 56 3,445 2,136 Renters 770 2,178 4,092 62 2,537 TOTAL 998 2,234 7,537 4,673 1940 -1959 Owners 67 20 1,616 1,293 Renters 289 639 1,309 80 1,047 TOTAL 356 679 2,925 2,340 Pre 1940 Owners 50 44 857 771 Renters 124 285 556 90 500 TOTAL 174 329 1,413 1,271 TOTAL Pre -1980 Owner 415 120 9,363 4,200 Renter 1,183 3,102 5,957 4,084 TOTAL 1 1,598 3,222 11,875 8,284 Jource t GHAJ5 uata000K, vYY4 Barriers to Affordable Housing One concern in developing housing program strategies is the potential and actual constraints on housing development and maintenance. These can be broken down as physical constraints and market constraints. Physical Constraints The physical constraints to development in Rosemead can be divided into two types: infrastructure constraints and environmental constraints. In order to accommodate future residential development, improvements are necessary in infrastructure and public services related to man-trade facilities such as sewer, water and electrical services. Portions of Rosemead are also constrained by a variety of environmental hazards and resources that may affect the development of lower priced residential units. Infrastructure Constraints: Water and sewer services are the major infrastructure constraints to housing production in Rosemead. 2000 -2005 Consolidated Plan 20 Water. Water services are provided by six (6) purveyors in the City of Rosemead. These agencies have varying abilities to maintain and upgrade their systems to meet current and projected demands. Large portions of western and central Rosemead are deficient in water and /or fire flow capacity. In addition, major capital expenditures will be required to replace deteriorating or substandard water mains in portions of the City. Local groundwater accounts for a major portion of the City's water supply. In recent years, groundwater resources in the United States have been contaminated with a variety of pollutants ranging from pesticides to industrial chemicals and solvents. The San Gabriel Valley Groundwater Basin was discovered in 1979 to have groundwater supplies that were contaminated. As a result of pollution in the Basin, the U.S. Environmental Protection Agency (USEPA) has classified the Basin as a "Superfund" site. Various local, state and federal agencies are cooperating in the clean -up of the Basin and are applying stringent water treatment to ensure the delivery of potable water. Sewer: The existing sewer system is considered to be adequate with minimal growth and a stable land use policy. However, this system is incapable of handling significant increases in development without major capital improvements to upgrade the system. The City of Rosemead is located within Sanitation District No. 15. Wastewater from Rosemead is processed at the Whittier Narrows Wastewater Treatment Facility (WTF). The Whittier Narrows WTF is located on 27 acres off Rosemead Boulevard in the City of El Monte. It was built in 1962 and was the first reclamation plant built by the Sanitation District. It provides primary, secondary and tertiary treatment for 15 million gallons of wastewater per day. It serves a population of 150,000 people. Most of the wastewater treated at this facility is reused as groundwater recharge into the Rio Hondo and san Gabriel Coastal Spreading Grounds, or for irrigation. Public Services: Future residential growth in Rosemead will require additional public service personnel if the existing levels of service for law enforcement, fire protection and other essential services are to be maintained. Environmental Constraints The City of Rosemead is fully urbanized with the general location and distribution of land uses having been previously determined. Substantial changes to the City's incorporated boundaries are not anticipated. Future growth and change in the City will involve the conversion or replacement of existing uses or infill on vacant parcels and the only opportunity for measurable growth is through the intensification of existing land use. There are no environmentally sensitive areas; the local topography does not represent a constraint to housing production. Seismic Hazards: Rosemead is located in a seismically active region as are all Southern California cities and is subject to risks and hazards associated with potentially destructive earthquakes. Although there are no active faults in the City, there are four major active 2000 -2005 Consolidated Plan 21 fault zones located within a 15 -mile radius of the City that .could be responsible for considerable ground shaking in the event of a major earthquake. Most of the City of Rosemead is located within an identified liquefaction zone. According to the definition of this zone, the City lies within an area where historic occurrence of liquefaction, or local geological, geotechnical and groundwater conditions indicate a potential for permanent ground displacements that require mitigation measures in accordance with the Public Resources Code Section 2693 [c]. Market Constraints Table 12 shows the major components of housing cost: construction costs, labor costs, land costs and financing. Table 14 Housing Cost Components x 99N Com Finished lot $37,524 23.6 Construction _ 87,132 54.8 Financing 3,021 1.9 Overhead and general expenses 9,063 5.7 Marketing 2,226 1.4 Sales Commission 5,406 3.4 Profit. . 14,628 9.2 Source: National Association of Home builders (lyplcal cost brealWown of a single - family nome In Rosemead, based on a median price of $159,000) Construction Costs The single largest cost associated with building a new house is the cost of materials, comprising 50 — 60 percent of the sales price of a home. Construction costs for a wood - frame, single- family construction of average to good quality range from $60 to $85 per square foot. Costs for wood- frame, multi - family construction of average to good quality run from $50 to $70 per square parking, exclusive of parking. Land Land costs include the cost of land, site improvements and all costs associated with obtaining government approvals. Land costs can vary significantly in Rosemead dependent primarily on location, zoning and the availability of infrastructure to serve future development. It is estimated that these costs add 20 to 25 percent of the final sales price of a home. The escalating market price of land will tend to encourage mainly higher price development. In January 2000, the Los Angeles Times reported that the median new home sales price per square foot (lot and improvements) in Rosemead is $141.00 2000 -2005 Consolidated Plan 22 Labor Costs Labor, which is included in overall construction costs, is the third most expensive component in building a house, comprising an estimated 20 percent of the cost of construction. The cost of union labor in the construction trades has increased steadily since the mid- 1970's. Financing While interest rates have fallen more than 12 percent from their near 20 percent high in the early 1980's, rates still have a substantial impact on housing costs that are felt by renter, purchasers and developers. The decline in interest rates has enabled more people to enter into homeownership; however, much of conventional financing is now variable rate. The fact that lending institutions may raise rates to adjust for inflation can lead many existing households to overextend financially.. An additional obstacle for the first -time buyer is the down payment required by lending institutions of between 10 and 20 percent. Other Community Development Needs This section covers non - housing related community development needs, including infrastructure, facilities and services. Public Facilities and Public Services - Public facilities include streets, sidewalks, street lighting systems, traffic signals, water systems, storm drains; sanitary sewer systems, parks and recreational facilities and schools. Public services include public health, education, recreation, social services and homeless shelter operations. ADA Improvements The Americans with Disabilities Act (ADA) requires all cities to provide accessibility to the community. Because of this, the City needs to construct improvements to public facilities to accommodate the number of handicapped and disabled individuals in the City. The City has an active program to create curb cuts and other accessible features in its infrastructure improvement programs. Capital Improvements (Infrastructure) The City has also identified areas in its low- income neighborhoods that need improvement in infrastructure, roads, storm drain and community facilities. 2000 -2005 Consolidated Plan 23 Public Services The City has an ongoing need for youth services, including peer programs, tutoring, diversion, social /recreational activities and abuse intervention. The City has an active Parks and Recreation Department to provide recreation services, as well as providing assistance to public service providers for additional services. The City also has an ongoing need for transportation programs for those of low income and those having mobility impairments. The City has a partnership with the County to provide public transportation services through MTA and has a Paratransit program, which is not funded through CDBG. There is an ongoing need for nutrition services for the elderly, along with services for those at -risk of homelessness. Economic Development The City has an active Redevelopment Agency to provide economic development opportunities to the community. The Redevelopment Agency is currently in the process of establishing Redevelopment Project Area Number 2, which will provide economic development and commercial rehabilitation activities to properties located within the boundaries of the Project Area. Also, the City maintains a CDBG- funded economic development and commercial rehabilitation program for properties not located in the Project Area. The Agency is in the planning stages of offering an additional commercial rehabilitation and economic development program in its Project Areas. 2000 -2005 Consolidated Plan 24 -- - -- Housing And Community Development Strategic Plan The Strategic Plan brings resources and needs together in a coordinated five -year housing and community development strategy. The strategy is developed to achieve the following goals: 1. Provide decent, safe and sanitary housing; 2. Create suitable living opportunities 3. Expand economic opportunities The Strategic Plan must also be developed in accordance with the need to eliminate slum and blight, eliminate conditions that are detrimental to the health, safety and public welfare, conserve the nation's housing stock, expand and improve the quantity and quality of community services, better utilize land and other natural resources, reduce the isolation of income groups within communities and geographical areas, restore and preserve properties of special value, alleviate physical and economic stress and conserve the nation's scarce energy resources. Housing and Community Development Resources Resources available to the City to implement the Strategic Plan are Community Development Block Grant (CDBG) funds and HOME funds. The Agency will use Redevelopment funds for infrastructure and other economic development programs. The City may continue to pursue a variety of other resources for the development of programs, including affordable housing, as well as continue to use the Section 8 rental assistance. 2000 -2005 Consolidated Plan 25 Housing and Community Development Projects and Programs The City's goals through the next five (5) years are to: • Preserve the City's existing affordable housing stock through rehabilitation • Assist low -to- moderate income households secure affordable housing, whether rental or home ownership, through a variety of programs • Reduce and /or eliminate slum - blight through active code enforcement in identified target areas • Continue to provide assistance to those at risk of homelessness • Continue efforts to further fair housing so that persons, regardless of race, creed, color, national origin, religion, sex, family status, age, handicap /disability have an equal opportunity to secure decent housing and are treated fairly in accordance with Title VIII of the Civil Rights Law of 1968 in dealing with landlords, real estate brokers and lenders. • Improve infrastructure and economic opportunity for low income areas and persons • Continue activities designed to improve access to public infrastructure for the - handicapped /disabled General Priorities for Allocating Investment Geographically CDBG and HOME dollars will be spent in the areas of home ownership, housing rehabilitation and public services without regard for geographic boundaries, but focusing on low -to- moderate income individuals and households. Infrastructure activities will primarily be undertaken in low -to- moderate income areas, while economic development activities will be undertaken in previously identified areas, e.g. Redevelopment Project areas and the City's identified revitalization area. General Relative Priorities for Allocating Investment Based on HUD recommendations and the City's prior practices, general relative priorities for funding will be as follows: HIGH PRIORITY: Activities to address this need will be funded by the City during the five - year period. 2000 -2005 Consolidated Plan 26 MEDIUM PRIORITY: If funds are available, activities to address this need may be funded by the City during the five -year period. Also, the City may use other sources of funds and take actions to locate other sources of funds. LOW PRIORITY. It is not likely the City will fund activities to address this need during the five -year period. The City will consider certifications of consistency for other entities' applications of Federal assistance. NO SUCH NEED: The City finds there is no need or the City shows that this need is already substantially addressed. No certifications of consistency will be considered. Obstacles to Meeting Needs and Reduction of Barriers The City will work to reduce barriers to meeting needs through the following: The City will continue to look at ways to facilitate the construction of affordable housing. This could include development through the Rosemead Housing Development Corporation, including assistance with land purchase, looking at potential sites for construction and /or recycling of current sites for residential use. The City will assist the Adams Mutual Water Company with funding to drill a new well, thereby providing better and more inexpensive water access to the low -to- moderate income neighborhood served by them. _ -- The City will use HOME funds to help create a first -time homebuyer program to work in conjunction with the Redevelopment Agency homebuyer program in order to promote affordable home ownership for low- income households. Priority Housing Needs STRATEGY: Preserve the City's existing affordable housing stock through rehabilitation. The majority of the housing stock in the City of Rosemead is 30 years of age or older. As the housing stock continues to age, these units will require more rehabilitation. The City will continue to provide rehabilitation through its Residential Rehabilitation Program. The goal is to serve 100 households over the five -year period. STRATEGY: Assist low -to- moderate income households secure affordable housing, whether rental or home ownership, through a variety of programs. The SCAG RHNA numbers indicate that many low -to- moderate income households are overpaying for housing and that there is a need for additional affordable units. In order to help meet this demand, the City will continue to: 2000 -2005 Consolidated Plan -27 • Continue to support the Housing Authority's Section 8 Voucher program. • The City also has established a first time homebuyer program funded through the Redevelopment Agency and its considering adoption of a HOME - funded program for households that require deeper subsidy. • The City is also in the process of completing design work and specifications for 72 units of low income senior housing. The goal over the next five years is to continue the Section 8 program, to complete the 72 units of housing and to create 50 new homebuyers. STRATEGY: Continue to provide assistance to those at risk of homelessness. The City will: .• Continue to participate in the Continuum of Care • The City will continue to provide funding opportunities to those at risk of homelessness through its public service grants program. The goal is to serve 50 clients over the next five (5) years. Public Housing and Section 8 There is no public housing in the City of Rosemead. The City will continue to support the use of Section 8 assistance through its contract with the Los Angeles Community Development Commission ( LACDC). In addition, the City collaborates with the LACDC through the Consolidated Plan and Agency Plan process. Although the LACDC is a separate entity from the City, the City will continue to support efforts on behalf of the Commission to encourage self - sufficiency and homeownership opportunities. Lead -Based Paint The City of Rosemead has a Residential Rehabilitation Program, which is intended to help lower income homeowners preserve affordable housing stock in our community that otherwise would continue to deteriorate without financial assistance. The program is funded by CDBG. Staff for the program adhere to current lead -based paint regulations as they relate to CDBG and rehabilitation programs. Staff will continue to implement lead - based paint regulations in these programs Finally, the City prohibits the use of lead -based paint in its contracts and specifications and refers home owners and contractors to the updated brochures regarding lead -based paint. 2000 -2005 Consolidated Plan 28 Institutional Structure The City has an inclusive approach that uses a variety of organizations and departments within the City to coordinate activities and deliver service. The community continues to work together to streamline the process and to make improvements to the system. As the needs of low -to- moderate income residents change, the demand for types of service delivery modules will change. The following are potential gaps in the institutional structure that will be approached over the next five (5) year period. Gaps in Service Delivery • Identify any need for housing resources available to individuals and households whose needs may not be met within the current program framework; • Because of the high cost of vacant land, look for additional ways, outside of traditional development modules, to develop units. • Partner with the Redevelopment Agency and, possibly others, to coordinate economic - development and job creation opportunities. Integrated ApproachNision and Regional Connections The City has integrated several required programs and plans with its Consolidated Plan to. ensure that all aspects of City government and related agencies (e.g. non - profit providers, the Redevelopment Agency and others) work together on a uniform vision for the benefit of the residents of the City of Rosemead. The CDBG .work programs reflect goals and objectives that are contained in the required programs and plans. Some of these plans and programs are as follows: • The Housing Element, • The Redevelopment Agency Plan, • The Capital Improvement Plan, • The City's ADA Improvement Plan, These plans have been created with input from the public, other City departments and divisions, and other agencies and non- profit providers Organizational Structure City staff is responsible for implementing policy decisions, funding allocations and geographic distribution of the City's CDBG, HOME and other housing funds, management of the CDBG budget, administration of the City's portion of the HOME program and budget, administration of the Redevelopment Housing Set - Aside funds and development, implementation and /or monitoring of other — housing programs. Administration of the -- 2000 -2005 Consolidated Plan 29 Housing Rehabilitation Program, public service agencies and other programs will be the responsibility of the Community Development Division. Continuum of Care In the 1990 Census, 20 people were identified as homeless. According to the Census, there were no unsheltered homeless in the City. In 1999, the City held a Homeless Count night. As seen in the Needs Assessment, there were only 13 -16 homeless persons and no runaway youth. The City is a partner in the Countywide Continuum of Care and also provides funding opportunities through its public service grants for agencies that provide services to at -risk populations. Special Needs STRATEGY: The City supports special needs services for at -risk populations. During the term of this Consolidated Plan, the City will support senior nutrition services through CDBG public service grant amounts as they are available, through its transportation program and through other sources. Primary needs are for youth services, childcare, after - school activities, transportation, meals program and ADA improvements. Priority Community Development Needs STRATEGY. Improve infrastructure. This covers needed infrastructure improvements in low -to- moderate income neighborhoods to improve access and quality of life. Needed infrastructure improvements include storm drain improvements, gutters, sidewalks, curbs, street resurfacing. The goal is to complete five (5) infrastructure projects over the next five years. STRATEGY: Eliminate slum /blight conditions. There is an identified need for Code Enforcement activities in the identified target areas in order to eliminate existing slum /blight conditions. The goal over the next five (5) years: the City will monitor whether such activities remain necessary and will fund as appropriate. STRATEGY. Improve economic opportunity. There is a need for economic development. Over the next five (5) years, this includes creation of Redevelopment Project Area Number 2, commercial rehabilitation and other economic development activities and to create capital improvements to the existing commercial stock, primarily through the Redevelopment Agency. The goal over the next five (5) years is to assist ten-(10) businesses through either CDBG or Redevelopment activities. 2000 -2005 Consolidated Plan 30 STRATEGY: Continue to implement the City's ADA Plan to improve access for the handicapped /disabled. The goal over the next five (5) years involves completing ten (10) ADA curb cuts and infrastructure improvements. Economic Development STRATEGY: As part of its Economic Development Strategy, the City has an active Redevelopment Agency and a Five year Plan for implementation of activities to address redevelopment needs. See above. Jobs Creation and Retention: The City has an active Redevelopment Agency to create an atmosphere which will allow for job creation and retention. In addition, the CDBG commercial rehabilitation program and its economic development loan program require job development for all projects, except for small -scale exterior renovations. All .projects are carried out in the City's designated revitalization area. In the next year, the Agency plans to develop a Redevelopment- funded commercial rehabilitation program and economic development program for its Redevelopment area businesses, to complement the small CDBG- funded commercial rehabilitation program. In addition, the Agency will continue to provide infrastructure improvements in the Redevelopment Project areas, including street lighting, drains, sidewalk, street repair. Anti- Poverty Strategy - - - The City has a Section 3 program that applies to construction projects funded with CDBG and /or HOME funds. The Section 3 program is intended to provide employment opportunities for low- income people and qualified Section 3 businesses. There are also various agencies in the region that provide a wide range of programs and services directed at helping people become self - sufficient, such as non - profit providers. The City relies on cooperation with these entities in the existing institutional structure, including the tACDC, county agencies, colleges- The City supports, through its public service grants, agencies that provide counseling, emergency food, clothing and other requirements to assist families at risk. In addition, the City provides after school recreation, tutoring and child care opportunities to low income households in order to promote learning and to assist working parents and /or parents enrolled - - in school with opportunities for advancement while providing a structured environment for their children. The LACDC provides, and the City supports, the Family Self- Sufficiency program that is operated within the City of Rosemead. This program helps recipients of housing assistance become more self- sufficient and rewards them through an escrow account system, once they no longer receive public assistance and housing assistance. - -- 2000 -2005 Consolidated Plan 31 - The City provides a commercial rehabilitation and economic development program that provides construction opportunities, assistance to micro - businesses and job creation opportunities, as well as promoting economic development. The Community Development Division is responsible for administering the City's CDBG and HOME programs. The Community Development Division is responsible for Residential Rehabilitation, Commercial Rehabilitation, development, other economic development, public services and oversight on CDBG- funded construction projects. Planning is centrally located at City Hall and this makes it possible to coordinate efforts in serving low- income residents of the City. Fair Housing (AI) As a recipient of CDBG funds, the City of Rosemead is required to develop a fair housing program whose specific actions and procedures will have an impact on preventing, reducing or eliminating housing discrimination and other barriers to equal housing choice based on race, color, religion, sex, national origin, ancestry, familial status or physical or mental handicap. In FY 1999, as part of the FY 2000 Consolidated Plan process, the City is in the process of updating its Analysis of Impediments to Fair Housing (AI). Definition of Fair Housing Fair Housing is defined as a "condition in which individuals of similar income levels in the same housing market area have a like range of choice available to them regardless of race, marital status, color, religion, ancestry, sex, sexual orientation, national origin, familial status, age, physical or mental disability, arbitrary or any other category which may be defined by law now or in the future." Impediments to Fair Housinq Impediments are defined as: • any action, omission, or decision taken because of race, color, religion, sex, disability, familial status or national origin which restricts housing choices or the availability of housing choices, or • any action, omission, or decision which has the effect of restricting housing choices or the availability of housing choices on the basis of race, color, religion, sex, disability, familial status, or national origin. Based on the conclusions of the Al, if the CDBG grantee takes lawful steps to eliminate identified impediments to fair housing choice within its jurisdiction, the grantee will be determined to have taken affirmative actions to further fair housing choice. — 2000 -2005 Consolidated Plan 32 Results of Assessment The Assessment was undertaken by the Fair Housing Council of San Gabriel Valley and included testing of rental housing, telephone surveys, examination of home mortgage data. Rental Housing Results of the analysis show that discrimination does exist and consists primarily of Asian landlords discriminating against other ethnic and racial groups, especially Caucasian and Hispanics. This is consistent with the findings of the last Analysis of Impediments (AI). Home Ownership The results of analysis of home mortgage data shows that there is not enough information to draw a conclusion as to whether redlining exists in the City of Rosemead, although the data does show that demand for homes is concentrated in higher- minority areas of Rosemead. Also, unlike the balance of the County, there are significant numbers of minorities in the applicant pool from Asian American and Hispanic groups. African American and Caucasian applicants are a very small percentage of all loan applications in the City of Rosemead. Data does show, however, that Asian Americans and Caucasians have higher levels of home purchases and refinancing rates that Hispanics, when there is a sample large enough on which to make a comparison. Actions The following actions will be undertaken during the term of the Consolidated Plan regarding fair housing activities: 1. Provide ongoing landlord /tenant counseling regarding fair housing, landlord /tenant rights 2. Provide follow -up to complaints of possible discrimination, including testing, mediation, referral to the Department of Fair Employment and Housing and /or the Department of Housing and Urban Development for follow up 3. Continue to provide special outreach and education to landlords of multi - family properties in the City of Rosemead regarding their responsibilities and rights under fair housing in at least one event per year 4. Provide one special event during Fair Housing month in April of each year 5. Continue work under Fair Housing grant to educate immigrant populations regarding fair housing rights and responsibilities _ 6. Provide information materials to the rental market regarding discrimination, fair housing rights and responsibilities, including mailings of literature 2000 -2005 Consolidated Plan 33 7. Prepare flyers and brochures regarding familial status discrimination and provide at outreach events 8. Continue to provide the Redevelopment Agency- funded First Time Home Buyer program and provide HOME funds to target lower- income households 9. Provide homeowner education to each participant as part of the First Time Home Buyer Program 10. Construct 72 units of Redevelopment Agency- funded housing for low income elderly households - - -- -2000 -2005 Consolidated Plan 34 One -Year Action Plan, 2000 -2001 Funding Sources (Annual) The City anticipates receiving: $1,513,000 in CDBG funds as an entitlement entity. Of this, 15% is set aside for public services and a portion is set aside for administrative costs. In addition, the City will reallocate any unexpended CDBG funds to CDBG - eligible projects. $504,000 in HOME funds. Leveraging The City uses a variety of mechanisms to leverage additional resources. In Residential Rehabilitation, products are offered as grants, rebates and loans with payments either required or deferred until sale. The City also leverages funds through its use of Redevelopment funds and Redevelopment Housing Set -Aside funds, through required .down payments in its First Time Home Buyer program, through its transportation monies that fund transportation programs. Some programs are fully leveraged and receive no CDBG or HOME assistance, while others supply the gap funding necessary to operate the program. All HOME funds meet the federal match requirements. HOME match is monitored through the City system as part of program operations. HOME match in the first -time home buyer program will be made through down payments and /or matching Redevelopment Housing Set -Aside funds. Match is made in the Residential Rehabilitation program through lending done by First American Bank and loan repayments by recipients. 2000 -2005 Consolidated Plan 35 --- Summary of Work Program In FY 2000 -2001, the following work program will be implemented: CDBG and HOME Administration of CDBG and HOME programs CDBG Fair Housing activities to ensure equal housing access for all Residential Rehabilitation Economic Development through the Commercial Rehabilitation Program and other economic development activities Public services for youth, seniors and those at risk of homelessness Insert balance of work program here HOME - First Time Home Buyer opportunities through the City Homebuyer Program Funding for Community Housing Development Organizations (CHDO) through the CHDO set -aside Funding for interest rate buy downs in the Residential Rehabilitation Program Integrated ApproachfVision As stated in the Strategic Plan, the City has integrated several required programs and plans into its Consolidated Plan to ensure that all aspects of City government and related agencies work together on a uniform vision for the benefit of the residents of the City. The CDBG and HOME work programs reflect goals and objectives that are contained in the required plans and programs. - Coordination and Institutional Structure The City will continue to focus on improving coordination and elimination of gaps in the institutional structure. The City has continued the liaison between the City and the LACDC. 2000 -2005 Consolidated Plan 36 The City also continue to participate in a variety of organizations to promote economic development, as well as intergovernmental cooperation. In the coming year, the City will pursue the following activities to enhance coordination and eliminate gaps in the institutional structure: • Continue to be a member of the Continuum of Care • Attend meetings between public providers as necessary • Continue contractual relationship with LACDC • Work with LACDC to ensure consistency in Agency Plan • Continue to be member of SCAG and other regional entities Public Housing There is no public housing in the City of Rosemead. Homelessness The following activities will be undertaken to continue to address priority needs of homeless individuals and families: Work with the Redevelopment Agency and the Rosemead Housing Development Corporation to develop opportunities for affordable housing • Continue to be a member of the Continuum of Care Continue to provide funding opportunities through the public service grant program Lead -Based Paint Hazards In the City of Rosemead, the following actions will continue to be undertaken in the fiscal year to evaluate and reduce lead -based paint hazards: • Continue to provide information to staff and residents regarding lead -based paint hazards • Continue to work with contractors to understand lead -based paint hazards and to comply with regulations • Implement new lead paint regulations as they become effective 2000 -2005 Consolidated Plan 37 Reduction of Barriers Of the potential barriers to affordable housing in the City of Rosemead, the greatest barriers are affordability, cost and lack of available land for construction. In FY 2000, the following activities are planned: • Construct the affordable senior housing development • Continue the City's First Time Home Buyer program • Expand the First Time Home Buyer program to those under 80% of median • Continue the City's Residential Rehabilitation program Anti - Poverty Strategy -In the following year, the City will continue to implement its Anti - Poverty Strategy through continuing its CDBG funded public_ service grant program and its non -CDBG funded transportation program. In addition, the City will continue to work to implement Redevelopment Project Number 2, its Section 3 program and other economic opportunities that provide jobs. Monitoring Programs administered and monitored by the City include the following: • CDBG • HOME Performance of planned projects and activities of these funds are monitored in various ways depending on the type of program and reporting requirements. Monitoring is viewed as a way to identify deficiencies and promote corrections in order to improve performance. The actual activity of monitoring helps promote quality performance as well as identify any need for further technical assistance. - -- The following is a description of the types of monitoring performed by staff: • Performance. monitoring • Financial monitoring • Davis -Bacon Compliance • Environmental Review Compliance 2000 -2005 Consolidated Plan 38- Monitoring includes: on -site visits, interviews, telephone contacts and reports. The City's subrecipient agreements are used to measure funded agency compliance. The City operates in compliance with the monitoring plan developed for CDBG and HOME programs, including an annual single audit in conformance with OMB Circular 133 -A. All activity of the program is also monitored on a monthly basis, while financial management is monitored jointly by the Grants person and the City's Finance Department. Financial Monitoring All project costs are paid on a reimbursement basis, rather than paid in advance. A request for reimbursement must have appropriate documentation to verify all expenditures. A current report of program activities must also be attached to the draw down request. The combination of data from the request and program activities report provides the data necessary to input data in the IDIS system. Collecting this data during the program year is very helpful in compiling year end reports. By requiring documentation in association with reimbursement, the City's Planning and Finance Departments are able to closely monitor program requirements and ensure program goals are being met. Davis -Bacon Compliance Davis -Bacon regulations require contractors and subcontractors to pay a certain wage to employees in various labor classifications. These regulations are a requirement of CDBG and HOME program subgrantee agreements. All applicable CDBG and HOME program projects are monitored for compliance with Davis -Bacon requirements. City staff or subgrantees, where appropriate, check the state board to ensure contractors selected are licensed. The debarred list from the HUD Home Page is also used. Once the contractor is selected, the contractor signs a contract. The department or subgrantee holds a pre- construction conference, reviews contractor and subcontractor payrolls, makes site visits and interviews contractor /subcontractor employees. Interview forms are compared with appropriate payrolls to ensure hours and pay are correct- All paperwork requirements are kept by the City. Site visits give staff the visual perspective of project progress and confirm reported performance and supplement written reports. Site visits are made to see how services are delivered to clients, provide technical assistance and inspect progress of construction projects. Resale /Recapture The City will create a first time home buyer program that is funded partially through HOME funds. This program will have resale /recapture provisions that require equity share in accordance with federal regulations. Loans are secured by Deeds of Trust and the City is notified when an owner wishes to sell the property. 2000 -2005 Consolidated Plan 39 Reporting/Tracking Systems Performance is tracked and reported as stated above. Reports are reviewed by labor compliance officers or the Grants Coordinator. Any discrepancies are address with the appropriate entities. Records on performance are kept in the project file. Accuracy of data is confirmed by site visits and monitoring. Environmental Review Compliance Each project that is budgeted is first reviewed for compliance with the National Environmental Protection Agency regulations (NEPA). California Environmental Quality Act (CEQA) regulations may also apply. Projects that are community service in nature are exempt from NEPA. Projects that required further investigation are researched using input from Environmental Regulatory agencies. For projects that fall in this category, a description of the project is sent to the State Office of Historic Preservation (SHPO) and to other applicable regulatory agencies for consultation. Once required consultations have been completed and any mitigation measures identified, the City prepares the appropriate paperwork, including the Statutory Worksheet and publishes a combined NOI/RROF and /or Finding regarding impacts (or Environmental Assessment [EA] if applicable). Once environmental clearance has been obtained, the project can move forward to City Council and /or bid, etc. as appropriate. All Environmental Reviews are monitored by the Grants Coordinator. - Anti - Displacement and Relocation Assistance Plan The City of Rosemead does not intend to undertake any activities in which any occupied lower income housing or any business is demolished or converted to another use. If.the City would undertake such an activity with funds provided under CDBG or HOME, the City would follow federal regulations under 24 CFR 570.496.a(c)(1) and 24 CFR 570.606(c)(1) or their successors regarding relocation, relocation benefits and replacement of housing. Listing of Proposed Projects LOW: Administration $178,000 Fair Housing 23,000 Code Enforcement 97,500 Housing Code Compliance 54,756 Rehab. Activities 58,968 Residential Rehabilitation 250,000 Commercial Rehabilitation 250,000 Garvey Community Center 900,000 2000 -2005 Consolidated Plan 40 Grand Avenue Storm Drain Ralph /Olney /Hart Storm Drain Street Lighting Project Street Resurfacing Public Services TOTAL HOME - Administration Residential Rehabilitation 1 Time Home Buyer TOTAL - $235,000 800,000 425,000 450,000 226,950 3,983,812 $25,200 409,750 520,200 955,150 2000 -2005 Consolidated Plan 41