CC - Item 4A - Public Hearing on Substancial Amendments to the 2015-2020 Consolidated Plan and The 2018-2019 Annual Action PlanROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER .
DATE: NOVEMBER 13, 2018
SUBJECT: PUBLIC HEARING ON SUBSTANTIAL AMENDMENTS TO THE 2015-
2020 CONSOLIDATED PLAN AND THE 2018-2019 ANNUAL ACTION
PLAN
SUMMARY
In accordance with the U. S. Department of Housing and Urban Development (HUD), and the
City of Rosemead's Citizen Participation Plan, the City of Rosemead required to amend its 2015-
2020 Consolidated Plan and the 2018-2019 Annual Action Plan. The reason for the "Substantial
Amendment" is to reallocate CDBG and HOME funds for new activities and programs,
including Commercial Fayade Improvement Program, Garvey Park bathroom renovation for
ADA Compliance, Parks & Recreation Summer Youth Employment Program, and new
affordable housing creation.
STAFF RECOMMENDATION
That the City Council:
1. Conduct a public hearing and receive public testimony; and
2. Approve the Substantial Amendment to the 2015-2020 Consolidated Plan and the 2018-
2019 Annual Action Plan.
HUD requires every state and local government that receives CDBG and HOME funding to
prepare a five-year comprehensive plan which brings community needs and resources together to
achieve statutory goals, and thereby address decent housing, create a suitable living environment
and expand economic opportunities for the City's residents; particularly for low -and -moderate
income persons. As an Entitlement Community, the City of Rosemead is required to prepare and
submit a five-year Consolidated Plan that serves as the federal planning document for receiving
CDBG and HOME Program funds.
AGENDA ITEM NO. 4.A
City Council Meeting
November 13, 2018
Paee 2 of 4
The City is also required to prepare and submit an Annual Action Plan to HUD which serves to
update and delineate efforts in the program year ahead toward meeting the priorities established
by the City in its Consolidated Plan. The Annual Action Plan operates on a single program year
established by the City (i.e., July 1, 2018 through June 30, 2019), whereas the Consolidated Plan
covers a five-year planning period (July 1, 2015 through June 30, 2020).
The City shall amend the approved Consolidated Plan and Annual Action Plans when:
A substantial change (e.g., 50% or more) in its allocation priorities or a substantial
change in the method of distribution of funds takes place; or
• Carries out an activity, using funds from any program covered by the Consolidated Plan
(including program income), not previously described in the action plan; or
• Substantially change the purpose, scope, location, or beneficiaries of an activity.
The substantial change criteria utilized by the City of Rosemead is determined by a change in an
activity which had been originally initiated through the HUD Program and in which the change
would exceed:
• 50% of the original allocations or when beneficiaries are impacted by the change; and/or
• The description of the activity is modified to the extent whereby the general public would
consider it to be a new activity for that particular program year.
For this particular amendment, the City is reallocating CDBG and HOME Program funds to add
new programs, including Commercial Fayade Improvements, Garvey Park bathroom renovation
for ADA compliance, Summer Youth Employment Program, and new affordable housing
creation (CHDO). In addition, the Substantial Amendment will reallocate the CDBG and
HOME Program funds to better reflect the performance history of the City's Owner Occupied
Rehabilitation Loans and Grant programs, as well as an updated budget based on the actual fiscal
year 2017-2018 closing cycle.
Public Hearing for the 2018-2019 Annual Action Plan was approved by the City Council at its
meeting on June 12, 2018. Subsequently, the approved Action Plan was submitted to HUD on
June 25, 2018, and the Action Plan Grant Agreements (CDBG and HOME) were executed and
sent to HUD on October 4, 2018. For Fiscal Year 2018-2019 the City received from HUD
CDBG amount of $708,721 and HOME Program amount of $346,837; for a total amount of
$1,055,558.
The following tables exhibit the approved 2018-2019 Annual Action Plan CDBG and HOME
Program allocations, and the proposed reallocation amounts.
City Council Meeting
November 13, 2018
Paee 3 of 4
JROSEMEAD PROPOSED 2018-2019 SUBSTANTIAL AMENDMENT HOME PROGRAM BUDGET
City Administration (10% Cap)
Previous: Funding
':. Proposed. Funding
Administration - Program Administration Costs (PACs)34,683
Proposed Funding
Administration- Program Administration Costs(PACs)
$
34,683
Administration - Carryover
$
19,000
$
-
Subtotal
$
53,683
$
34,683
Subtotal
$
128,500
$
141,744
Rehabilitation
Owner Occupied Rehabilitation Loans
$
258,128
$
200,000
Owner Occupied Rehabilitation Loans- Carryover
$
320,500
$
-
Down Payment Assistance Program - Carryover
$
190,000
$
100,000
Subtotal
$
768,628
$
300,000
$
150,000
$
150,000
Community Housing Development Organization (CHDO) (15% Cap)
$
30,000
$
Rio Hondo CDC Operating Expenses
$
2,000
$
2,000
Rio Hondo CDC -Affordable Housing Program
$
52,026
$
-
Rlo Hondo CDC -Affordable Housing Program Carryover
$
131,402
$
-
Affordable Housing Program (e.g., Senior/Veteran's Housing)
$
$
- $
898,454
Subtotal
$
185,428
$
900,454
TOTAL
$
S,OD7,739
$
1,235,137
ROSEMEAD PROPOSED FY 2018-2019 SUBSTAN nAL AMENDMENT CDBG BUDGET
City Administration (20% Cap)
Previous Funding
Proposed Funding
Administration- Program Administration Costs(PACs)
$.
118,500
$
- 131,744
Fair Housing
$
10,000
$
10,000
Subtotal
$
128,500
$
141,744
Rehabilitation -
ProgramAdministration- Activity Delivery Costs (ADCs)
$
214,037
$
70,000
Emergency Grant
$
50,000
$
6,000
Handyman Grant
$
150,000
$
150,000
Rebates
$
30,000
$
15,000
Lead/Asbestos Testing
$
6,000
$
4,000
Lead/Asbestos Remediation
$
40,000
$
25,000
Commercial Eapde improvements
$
-
$
150;OD0:
Subtotal
$
490,037
$
420,000
Public Safety -
Code Enforcement
$
11,634
$
11,634
Code Enforcement - Carryover
I $
380,000
$
206,189
Subtotal
$
391,634
$
217,823
Social Sewkes.(15%Cap)
Family Counseling Services
$
5,000
$
5,000
Family Promises
$
51000
$
5,000
Senior Nutrition Services
$
70,800
$
70,800
Senior Nutrition Services - Program income
$
9,000
$
-
SummeTYouth Employment Program
$
-
$
25;000:
Subtotal
I $
89,800
$
105,800
Public Facilities Improvements
Garvey Park
$
",$
390,000:
Subtotal
$
390,000
TOTAL
$
1,699,971
$
1,275,367
City Council Meeting
November 13,2018
Pave 4 of 4
A draft Substantial Amendment was made available for public comment between November 1,
2018 and December 1, 2018.
FISCAL IMPACT — On June 12, 2018, the Annual Action Plan was approved with a total
CDBG fund balance of $1,099,971 and HOME fund balance of $1,007,739. The Substantial
Amendment to the Annual Action Plan accounts for the actual fiscal year 2017-2018 closing
cycle (July 1, 2017 to June 30, 2018) whereby the HOME fund balance is increased to
$1,235,137 and CDBG fund balance is increased to $1,275,367. The Substantial Amendment
reallocates the increased funding amounts to better reflect the anticipated expenditures for
ongoing programs and administrative costs based on the City's historic performances, as well as
adding funding for new programs and activities.
STRATEGIC PLAN IMPACT — The Substantial Amendment to the Annual Action Plan
implements the "Key Organizational Goals" of ensuring the City's continued financial viability
by actively pursuing quality economic development; enhance public safety and quality of life;
and beautify residential neighborhoods and commercial corridors.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process, which includes a
public hearing notice published in the Rosemead Reader on November 1, 2018, and posting of
the notice at the six (6) public locations.
Prepared by:
Ben Kim, Dir or o�Community Development
Attachment A: Substantial Amendment to the Consolidated Plan 2015-2020 and Annual
Action Plan 2018-2019
Attachment A
Substantial Amendment to the Consolidated Plan
2015-2020 and Annual Action Plan 2018-2019
CITY OF ROSEMEAD
CONSOLIDATED PLAN 2015 — 2020
2018 — 2019 ANNUAL ACTION PLAN
SUBSTANTIAL AMENDMENT
Introduction
Each year the US Department of Housing and Urban Development (HUD) provides
funding for housing and community development programs to the City of Rosemead,
specifically Community Development Block Grant (CDBG) and Home Investment
Partnerships (HOME) Program funds. To receive these funds, the City must complete a
report every five year called the Consolidated Plan.
The purpose of the Consolidated Plan is to identify Rosemead's housing and community
development needs, priorities, goals, and strategies and to stipulate how funds will be
allocated to housing and community development activities over the period of the
Consolidated Plan, which in this case is every five years.
The City shall amend the approved Consolidated Plan and Annual Action Plans when:
• A substantial change (e.g., 50% or more) in its allocation priorities or a substantial
change in the method of distribution of funds takes place; or
• Carries out an activity, using funds from any program covered by the consolidated
plan (including program income), not previously described in the action plan; or
• Substantially change the purpose, scope, location, or beneficiaries of an activity.
The substantial change criteria utilized by the City of Rosemead is determined by a
change in an activity which had been originally initiated through the HUD Program and in
which the change would exceed:
1. 25% of the original allocations or when beneficiaries are impacted by the change;
and/or
2. The description of the activity is modified to the extent whereby the public would
consider it to be a new activity for that particular program year.
Proposed Amendment to the 2015 — 2020 Consolidated Plan
During the five-year plan period, the City expects to receive approximately $700,000
annually in CDBG funds and $350,000 annually in HOME funding. Over a five-year
period, this equates to $3.51M in CDBG and a five-year total of $1,750,000 in HOME funds.
These funds are being awarded to the City based on the goals submitted to HUD in
previous fiscal years.
The City has not expended some of these funds and is in jeopardy of returning some of
these funds to HUD. This proposed Substantial Amendment will reallocate these funds to
programs that will expend the dollars in accordance with HUD Guidelines.
In addition, some of the Goals set forth in the five-year Consolidated Plan have become
unattainable. The City would like to amend those goals in order not to jeopardize future
funding from HUD. The goals that are being requested to be amended are provided in the
table below:
Goal
Strategic
Strategic
Program
Program '
Difference
New 5
Plan -
Plan -
Year -
Year -
in Strategic
Year
Expected
Actual
Expected
Actual
Plan
Goal
Affordable
50
0
2
0
50
1
Owner
Housing
(FTHB)
Senior
75,000
35,587
4,000
560
39,413
40,000
Nutrition
Program
Lead
50
16
10
4
34
25
Abatement
Housing
50
14
10
4
36
25
Rehabilitation
Program
Affordable
2
0
1
0
2
1
Housing
(CHDO)
All the above activities are significantly below what was stated in the City's Consolidated Plan.
As a part of the Substantial Amendment, we are proposing to redefine the five-year
expectations to closely align with performance to date.
Proposed Amendment to the 2018 — 2019 Action Plan
As mentioned above, the City has decided to reallocate some of its available dollars, so
the funds are not at risk of being returned to HUD. Below is a list of CDBG and HOME
Programs that we wish to amend and reallocate funds. The current and proposed
amounts are included:
CDBG Proposed Revisions are listed in the table below:
ROSEMEAD PROPOSED FY 2018-2019 SUBSTANTIAL AMENDMENT CDBG
BUDGET
Previous Funding
Proposed Funding
City Administration (20% Cap)
Administration
$118,500
$131,744
Fair Housing
$10,000
$10,000
Subtotal
$128,500
$141,744
Rehabilitation
Program Administration
$214,037
$70,000
Emergency Grant
$50,000
$6,000
Handyman Grant
$150,000
$150,000
Rebates
$30,000
$15,000
Lead/Asbestos Testing
$6,000
$4,000
Lead/Asbestos Remediation
$40,000
$25,000
Commercial Fagade Improvements
$ -
$150,000
Subtotal
$490,037
$420,000
Public Safety
Code Enforcement
$11,634
$11,634
Code Enforcement - Carryover
$380,000
$206,189
Subtotal
$391,634
$217,823
Social Services (15% Cap)
Family Counseling Services
$5,000
$5,000
Family Promises
$5,000
$5,000
Senior Nutrition Services
$70,800
$70,800
Senior Nutrition Services - Program
Income
$9,000
$ -
Summer Youth Program - Parks &
Recreation
$ -
$25,000
Subtotal
$89,800
$105,800
Public Facilities Improvements
Garvey Park
$ -
$390,000
Subtotal
$390,000
TOTAL
$1,099,971
$1,275,367
HOME Proposed Revisions are listed in the table below:
A description of the new activities being added to the fiscal year are as follows:
- Commercial Fagade Improvement Program
The Job Creation and Business Incentive Program is designed to assist new and
existing businesses through the provision of financial assistance. Financial assistance
is in the form of a forgivable no interest loan that is predicated on the creation of new
jobs for moderate- and low-income persons. Maximum assistance under the program
is $50,000. One permanent full-time equivalent position for moderate- and low-
income persons is required per $25,000 loaned or portion there -of above $25,000.
- Garvey Park Improvements
The project consists of the demolition of an existing 500sf restroom that is not in
compliance with current ADA rules. The City will replace this restroom with a new
680 sf restroom for men and women including the installation of the required ADA
Previous
Funding
Proposed
Funding
City Administration (10% Cap)
Administration
$34,683
$34,683
Administration -Carryover
$19,000
$_
-
btotal
btotal
$53,683
$34,683
Rehabilitation
Owner Occupied Rehabilitation Loans
$258,128
$200,000
Owner Occupied Rehabilitation Loans - Carryover
$320,500
$_
-
Down Payment Assistance Program - Carryover
Down
$190,000
$100,000
Subtotal
$768,628
$300,000
Community Housing Development
Organization CHDO
Rio Hondo CDC Operating Expenses
$2,000
$2,000
Rio Hondo CDC - Affordable Housing Program
$52,026
$ -
Rio Hondo CDC - Affordable Housing Program
Car over
Car
$131,402
$_
-
Affordable Housing Program (e.g., SeniorNeteran's
Housing)
$ -
$898,454
Subtotal
$185,428
$900,454
TOTAL
$1,0071739
$1,235,137
A description of the new activities being added to the fiscal year are as follows:
- Commercial Fagade Improvement Program
The Job Creation and Business Incentive Program is designed to assist new and
existing businesses through the provision of financial assistance. Financial assistance
is in the form of a forgivable no interest loan that is predicated on the creation of new
jobs for moderate- and low-income persons. Maximum assistance under the program
is $50,000. One permanent full-time equivalent position for moderate- and low-
income persons is required per $25,000 loaned or portion there -of above $25,000.
- Garvey Park Improvements
The project consists of the demolition of an existing 500sf restroom that is not in
compliance with current ADA rules. The City will replace this restroom with a new
680 sf restroom for men and women including the installation of the required ADA
fixtures. This project also includes the removal of the existing sidewalk ramps that
are currently not in compliance with ADA and the installation of new sidewalk and
ADA ramps including new lighting and appurtenances.
- Summer Youth Program
Activity provides for the hiring of 20 low and moderate -income community youths to
work in various City locations as Clerical Assistants, Aquatic Personnel; and
Community Services Aides.
In addition to the above, the Proposed Amendment would allocate $898,454 to a
Community Housing Development Organization (CHDO) for Acquisition and
Development of Affordable Housing. If approved Staff will develop an RFP for the
selection of a CHDO and new Senior and/or Veteran's Housing Project
By allocating this money to a CHDO for the development of affordable housing, the City
would continue to meet its five-year goals set forth in the Consolidated Plan by eliminating
potential barriers to affordable housing and the creation of affordable units.
The above activities and funding amounts will be revised in the Annual Action Plan.
HUD requires that entitlement communities provide the public with a 30 -day comment
period to provide residents and other interested parties an opportunity to provide input on
the proposed Amendment. This public comment period ran from November 1, 2018 to
December 1, 2018.
Public Comments
The City will incorporate any comments received during the public comment period