CC - Item 4A - CDBG and Home Program FY 2015-16 Annual Action PlanROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY
COUNCIL
FROM: JEFF ALLRED, CITY MANAGER ✓
DATE: MARCH 24, 2015 -
SUBJECT: CDBG AND HOME PROGRAMS FY 2015 -16 ANNUAL ACTION PLAN
SUMMARY
On February 10, 2015, the City Council conducted a public hearing to receive input on
the development of the City's updated Five -Year Consolidated Plan covering the period
July 1, 2015 — June 30, 2020 and Annual Action Plan covering the period July 1, 2015 —
June 30, 2016. Four (4) social service organizations (Family Counseling Services,
Family Promise, People for People, and Southern California Housing Rights Center)
made presentations at the public hearing. Under federal regulations, no more than 15%
of the Community Development Block Grant (CDBG) allocation can be used for social
service activities. In addition, under the HOME Investment Partnership (HOME)
program, at least 15% must be set aside for a Community Housing Development
Organization (CHDO).
The City has been notified by HUD that Rosemead will be receiving $647,307 in CDBG
funds for FY 2015 -16, which is a 1.94451% increase from its FY 2014 -15 allocation, and
$201,143 in HOME funds, which is a 6.44814% decrease from its FY 2014 -15
allocation. When combined with projected carryover funds and anticipated program
income, the City anticipates having a total of $756,057 of CDBG funds available and
$736,162 in HOME funds available for the 2015 -16 year.
Staff Recommendation
It is recommended that the City Council review and finalize the CDBG and HOME
funding recommendations under the City's FY 2015 -16 Annual Action Plan.
BACKGROUND
The City of Rosemead is a Federal entitlement grant recipient of CDBG and HOME
funds from the U.S. Department of Housing and Urban Development (HUD). As part of
the process to receive funding, the City must undertake development of a Consolidated
Plan and Annual Action Plan. It is called a Consolidated Plan because it consolidates
the application process for HUD's four (4) entitlement grants into one consolidated plan
and application. The four grants are: CDBG, HOME, Housing Opportunities for Persons
with AIDS (HOPWA), and Emergency Shelter Grant (ESG). All four (4) grants are
driven by an entitlement formula process set by the federal government. The City is
eligible to participate in two (2) of these programs: CDBG and HOME.
ITEM NUMBER: qk
City Council Report
March 24, 2015
As part of the requirements of the federal Consolidated Plan process, the City is
required to hold a public hearing regarding the projected use of funds prior to adoption
of its Consolidated Plan and Annual Action Plan. In order to receive the FY 2015 -16
allocations, the City must comply with the following requirements of the Consolidated
Plan final rule regarding pre- submission requirements:
v Fulfill citizen participation requirements by conducting a public hearing to
receive citizen input regarding annual funding needs;
'v Publish a draft Plan and Annual Action Plan for a 30 -day comment period in
order to receive citizen input regarding the final document; and
Conduct a public hearing adopting the final Plan and the Annual Action Plan.
The Annual Action Plan is a part of the Consolidated Plan, which takes all HUD
requirements regarding planning, needs analysis, reporting, budgeting, citizen
participation, and certifications and incorporates them into one process. The full
Consolidated Plan must be completed once every five (5) years and the Annual Action
Plan must be completed annually.
ANALYSIS
After much deliberation and thought, it is being proposed that the following activities be
funded under the CDBG and HOME programs and included in the City's Annual Action
Plan for the FY 2015 -16. In reviewing the CDBG recommendations it would be
appropriate for the City Council to remember that only three broad funding categories
are considered eligible under CDBG - regulations. A project must either provide benefits
to low or moderate - income persons, eliminate slum or blighted conditions, or satisfies
an urgent need. In addition, of the CDBG funds received, no more than 15% ($97,096)
of the annual grant amount plus anticipated program income can be used for social
service activities, no more than 20% ($129,461) of the grant amount plus anticipated
program income can be used for Planning and Administrative services, and, at least,
70% of all funds must be used for low -to- moderate income activities.
There were no new public service funding requests submitted for the FY 2015 -16. Out
of the three (3) existing social service organizations already receiving funding, all have
requested the same level of funding as approved in the current fiscal year (Attachment
"N'). It would be appropriate to continue to support all three social service organizations
at their current level of funding. There was also one (1) request from the Southern
California Housing Rights Center that qualifies under the Planning and Administrative
services cap. This organization also requested the same level of funding as approved
in the current fiscal year (Attachment "B ").
A detailed list of funding recommendations under the CDBG program is provided below
City Council Report
March 24, 2015
Pace 3 of 4
City Administration
General Administration
$ 85,405
General Administration —program
Income
$ 3,950
Fair Housing Contract
Subtotal
$ 10,000
Rehabilitation
Subtotal
$ 99,355
Rehabilitation
Owner-Occupied Rehabilitation Loans
Administration
$ 373,857
$184,841
Emergency Grants
$ 10,000
Grants
$100,000
Rebates
$ 15,000
Lead /Asbestos Testing
$ 11,000
Lead /Asbestos Remediation
$ 20,000
Subtotal
$340,841
Public Safet
Code Enforcement
$218,765
Subtotal
$218,765
Social Services
Family Counseling Services
$ 5,000
Family Promise
$ 5,000
People for People
$ 10,000
Senior Nutrition Services
$ 61,296
Senior Nutrition Services — Program Income
$ 15,800
Subtotal
$ 97,096
Total CDBG Allocation
$756,057
In reviewing the HOME funds recommendations, it would be appropriate for the City
Council to remember that no more than 10% ($20,114) can be used for administrative
and program delivery activities. At least 15% ($30,171) must be set aside for a CHDO,
as constituted under the regulations. In addition, up to 5°% ($10,057) can be used by a
CHDO for operating expenses. The balance of funds can only be used for housing
activities. A detailed list of funding recommendations under the HOME program is
provided below.
YO15.2Q7
- 6 7 ty Administration
General Administration
$ 20,114
General Administration - carryover
$ 0
Subtotal
$ 20,114
Rehabilitation
Owner-Occupied Rehabilitation Loans
$ 373,857
City Council Report
March 24, 2015
Page 4 o 4
Down Payment Assistance Program
$
140,000
Subtotal
$
513,857
Community Housing Development Organization CHDO
Rio Hondo CDC (operating)
$
2,000
Rio Hondo CDC (Affordable Housing Program)
$
30,172
RIO Hondo CDC (Affordable Housing Program) - Carryover
$
170,019
Subtotal
$
202,191
Total HOME Allocation
$
736,162
It should be noted that all the proposed projects meet the CDBG and HOME eligibility
requirements.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Michelle G. Ramirez
Community Development Director
Attachment A — Public Service Funding Request
Attachment B— Planning and Administration Funding Request
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