CC - Item 6A - Fiscal Year 2018-19 Annual Action Plan for Federally Funded Programs s E Mlik E
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ROSEMEAD CITY COUNCIL
-1 $ STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
E-`"n
FROM: GLORIA MOLLEDA, CITY MANAG `
DATE: MARCH 27, 2018
SUBJECT: FISCAL YEAR 2018-19 ANNUAL ACTION PLAN FOR FEDERALLY-
FUNDED PROGRAMS
SUMMARY
On February 13, 2018. the City Council conducted a public hearing to receive input on the use of
federal Community Development Block Grant (CDBG) and HOME Investment Partnership
(HOME) funds in the development of the City's Fiscal Year 2018-19 Annual Action Plan. The
U.S. Department of Housing and Urban Development (HUD) has not yet announced the final
amounts to be allocated to participating communities; however, cities continue to be warned that
Congress may again make cuts to these programs. In estimating the amount of funding that
could be available in the CDBG & HOME program for FY 2018-19, staff included a
conservative 5% cut to both programs. Based on this 5% cut, along with projected carryover
funds and projected program income, staff anticipates having a total of $1,005,750 of CDBG
funds available and $778,484 in HOME funds available for the 2018-19 year.
After much deliberation and thought, a list of staff-endorsed projects has been developed based
on funding requests and ongoing CDBG and HOME funded activities. These recommendations,
shown below, are consistent with the housing and community development priorities that the
City has set and followed in the past. All the proposed projects meet the CDBG and HOME
eligibility requirements.
BACKGROUND
The City of Rosemead is a federal entitlement grant recipient of CDBG and HOME funds from
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 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 grants are driven by an
entitlement formula process set by the federal government. The City is eligible to participate in
two of these programs(CDBG and HOME).
I rEM NUMBER: 64
City Council Meeting
March 27,2018
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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 2018-19 allocations, the City must comply
with the following requirements of the Consolidated Plan final rule regarding pre-submission
requirements:
- Fulfill citizen participation requirements by conducting a public hearing to receive
citizen input regarding annual funding needs;
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
A 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 years and the Annual Action Plan must be completed annually.
STAFF RECOMMENDATION
It is recommended that the City Council review and finalize the CDBG and HOME funding
recommendations under the City's FY 2018-19 Annual Action Plan.
ANALYSIS
The Federal government is currently working on allocating CDBG and HOME funding awards
for FY 2018-19 and has not yet announced the final amounts to each participating community.
However, cuts to the CDBG and HOME program appear to be an ongoing discussion by
Congress each year. While the City has not yet been notified of the grant amounts that will be
available to meet identified needs within Rosemead for the FY 2018-19, it is anticipated that the
City will receive decreases in its current $646,913 allocation of CDBG funds and $234,004
allocation of HOME funds, but will not be certain until federal notification of awards. Again, in
estimating the amount of funding that could be available in the CDBG & HOME program for FY
2018-19, staff included a conservative 5% cut to both programs along with projected carryover
funds from FY 2017-18.
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% ($95,475) of the annual grant amount plus projected program
income to be received in FY 2017-18 can be used for social service activities, no more than 20%
($126,320) of the grant amount plus anticipated program income to be received in FY 2018-19
can be used for Planning and Administrative services,and at least 70% of all funds must be used
for low-to-moderate income activities.
City Council Meeting
March 27,2018
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There were no new public service funding requests submitted for the FY 2018-19. Out of the
two (2) existing social service organizations already receiving funding, both have requested the
same level of funding as approved in the current fiscal year. It would be appropriate to continue
to support both of these organizations at their current level of funding. In addition,there was one
(I) request that qualifies under the Planning and Administrative services cap (Southern
California Housing Rights Center). This organization requested the same level of funding as
approved in the current fiscal year. A detailed list of funding recommendations under the CDBG
program is provided below.
FY 2018-19
CDBG Allocation
City Administration
General Administration $110,200
General Administration—Projected Program Income $ 2,250
Fair Housing Contract $ 10,000
Subtotal $122,450
Owner-Occupied Rehabilitation
Administration $166,855
Administration (Contingency)- Projected Carryover $147,925
Emergency Grants $ 20,000
Grants $150,000
Rebates $ 15,000
Lead/Asbestos Testing $ 12,000
Lead/Asbestos Remediation $ 40,000
Subtotal $551,780
Public Safety
Code Enforcement _ $ 9,645
Code Enforcement(Projected Carryover) $232,075
Subtotal S241,720
Social Services
Family Counseling Services $ 5,000
Family Promise $ 5,000
Senior Nutrition Services $ 70,800
Senior Nutrition Services—Projected Program Income $ 9,000
Subtotal $ 89,800
Total CDBC Allocation $1,005,750
City Council Meeting
March 27,2018
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In reviewing the HOME funds recommendations, it would be appropriate for the City Council to
remember that no more than 10% ($22,230) can be used for administrative and program delivery
activities. At least 15% ($33,345) must be set aside for a CHDO, as constituted under the
regulations. In addition, up to 5% ($11,115) can be used by a CHDO for operating expenses.
The balance of funds can only be used for housing activities.
FY 2017-18
HOME Allocation
City Administration
General Administration $ 22,230
General Administration—Projected Carryover $ 19,000
Subtotal $ 41,230
Rehabilitation
Owner-Occupied Rehabilitation Loans $ 164,725
Owner-Occupied Rehabilitation Loans - Carryover $ 247,184
Down Payment Assistance Program - Carryover $ 190,000
Subtotal $ 601,909
Community Housing Development Organization (CHDO)
Rio Hondo CDC (Operating) $ 2,000
Rio Hondo CDC (Affordable Housing Program) $ 33,345
Rio Hondo CDC (Affordable Housing Program) - Carryover $ 100,000
Subtotal $ 135,345
Total HOME Allocation S 778,484
Again, all the proposed projects meet the CDBG and HOME eligibility requirements.
FISCAL IMPACT - None
STRATEGIC PLAN IMPACT—None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by: // /J
(Abilit
Michelle G. Ramirez, trectf Public Works