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CC - Item 5A - Public Hearing on CDBG and HOME Program Annual Action Plan for Fiscal Year 2019-2020ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGER ,,4. M - DATE: MAY 14, 2019 SUBJECT: PUBLIC HEARING ON THE CDBG AND HOME PROGRAMS ANNUAL ACTION PLAN FOR FISCAL YEAR 2019-20 SUMMARY The City has been notified by HUD that Rosemead will be receiving $746,663 in CDBG funds for FY 2019-20 and $351,721 in HOME funds. When combined with projected unencumbered ("carryover") funds and projected program income, the City anticipates having an available total of approximately $1,005,000 in CDBG funds and approximately $1,490,000 in HOME funds for the 2019-20 year. A list of staff -endorsed projects has been developed based on funding requests and ongoing CDBG and HOME funded activities. These recommendations 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. STAFF RECOMMENDATION It is recommended that the City Council take the following actions: 1. Conduct a public hearing and take public testimony on the Annual Action Plan covering the period July 1, 2019 June 30, 2020. 2. Approve the CDBG and HOME funding recommendations and FY 2019-20 Annual Action Plan, as well as authorize the submittal of the FY 2019-20 Annual Action Plan to the U.S. Department of Housing and Urban Development. 3. Authorize the City Manager to execute receive funding and implement approved based as necessary for FY 19-20. all appropriate and necessary documents to use and make necessary budget adjustments 4. Award the following public service agencies with CDBG funds and authorize the City Manager to execute agreements: AGENDA ITEM NO. 5.A City Council Meeting May 14, 2019 Page 2 of 4 • Family Promise of San Gabriel Valley - $5,000 • Southern California Housing Rights Center - $10,000 • Senior Nutrition Program — $65,000 • Summer Youth Employment Program - $25,000 5. Authorize the City Manager to execute a Professional Services Agreement with Barr & Clark, Inc. and Lead Tech Environmental for lead based paint and asbestos testing, assessment, and clearances tests of properties according to federal and state laws in a combined amount not to exceed $19,000. 6. Award $2,000 of HOME fiends to the Rio Hondo Community Development Commission to defray certain costs for the operation as the City's Community Housing Development Organization (CHDO) and authorize the City Manager to execute the necessary operating and service agreements. 7. Approve the CDBG amounts of $257,000 to be allocated for the City's CIP Public Facilities Improvements ($257,000 for Garvey Park Gym HVAC and $128,300 for alleyway improvements), and $250,000 for Commercial Fagade Improvements. BACKGROUND The City of Rosemead is a federal entitlement grant recipient of Community Development Block Grant and HOME Investment Partnership 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 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. In order to receive the FY 2019-20 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 15 -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. City Council Meeting May 14, 2019 Page 3 of 4 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 activities shown in Attachment "A" be funded under the CDBG and HOME programs and included in the City's Annual Action Plan for the FY 2019-20. CDBG ProgNam 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 satisfy an urgent need. In addition, of the CDBG funds received, no more than 15% ($111,999) of the annual grant amount plus anticipated program income can be used for social service activities; no more than 20% ($139,333) 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. It should be noted that there were no new public service funding requests submitted for the FY2019-20. Funding requests from Family Promise of San Gabriel Valley and Housing Rights Center have been received at the same amounts as last year. Unfortunately, Family Counseling Service of West San Gabriel Valley has terminated operation and did not submit a funding request application. The Annual Action Plan continues to include funds for the City's Senior Nutrition Services at the Garvey Center and the Summer Youth Employment Program that was added last year as part of the Substantial Amendment to the Annual Action Plan and it would be appropriate to continue to support the public service agencies at the proposed funding levels. Certain amounts were carried over from FY 2018-19 for Emergency Grants, Handyman Grants, Lead/Asbestos Remediatibn, Commercial Fagade Improvements, and Facilities Improvements which were not fully expended. HOME Prog�am In reviewing the HOME funds recommendations, it would be appropriate for the City Council to remember that no more than 10% ($35,172) can be used for administrative and program delivery activities. At least 15% ($52,758) must be set aside for CHDO, as constituted under the regulations. In addition, up to 5% ($17,586) can be used by a CHDO for operating expenses. The balance of funds can only be used for housing activities. Unexpended amounts were carried over from the FY 2019-20 budget for Owner -Occupied Rehabilitation Loans and the affordable housing program. City Council Meeting May 14, 2019 Page 4 of 4 FISCAL IMPACT — The Annual Action Plan includes HUD funding allocation for CDBG and HOME programs. STRATEGIC PLAN IMPACT -- None PUBLIC NOTICE PROCESS Notice of the public hearing was published in the Rosemead Reader on May 2, 2019, as well as through the regular agenda notification process. Prepared by: Ben Kim Director Development Attachment A — CDBG & HOME Funding Allocations Attachment B — FY 2019-20 Annual Action Plan Attachment A CDBG & HOME Funding Allocations Attachment A P.rogram Administration Cost (PAC) Administration (10% max,) _ -_ $...... .. (34,683) $ (35,172) Housing Rights Center (Fair Housing) Subtotal $ (34,683) $ (35,172) Rehabilitation Subtotal $ - $ (149,333) OwnerOccupied Rehabilitation [OOR) Loans $ (2001000) $ {150,000) Down Payment Assistance Program $ (100,000) $ (100,000) Emergency Grants Subtotal $ (300,000) $ (250,000) Community Housing Development Organization (CHOO) $ (150,000) _$ (100,000) Roo Hondo CDC- Operating (5% max) $ (2,000) $ (2,000) Lead/Asbestos Testing $ - (2,000) $ (21000) Affordable Housing Development.. $ (25,000) Affordable Housing-Veteran's/Senior $ (898,454) $ (1,203,003) Subtotal $ (898,454) $ (1,203,003) Total HOME Allocation'' $ (11235,137) $ ' (1,490,175} P. [*gram Administration Cost (PAC.).- Administration (20%max.) $ (131,744) $ (139,333) Housing Rights Center (Fair Housing) $ (10,000) $ (10,000) Subtotal $ (141,744) $ (149,333) Rehabilitation - Program Administration -Activity Delivery Costs (ADC) $ (70,000) Emergency Grants .. ........... _ .... (6,000) ...$ (2,000) .Owner Occupied Rehabilitation (COR) Grant. $ (150,000) _$ (100,000) Rebates $ (15,000) $ (5,000) Lead/Asbestos Testing $ (4,000) $ _ (4,000) Lead/Asbestos Remediation $ (25,000) Commercial Fanade Improvements $ (150,000)$ (254000) Subtotal $ (420,000) $ (376,000) Public 5afety:: Code Enforcement $ (11,634) Code Enforcement -Carryover $ (206,189) Subtotal $ (217,823) Social Services (15% max.) Family Counsel ingServices $ {5,000) $ Family Promise of San Gabriel Valley $ (5,000) $ (5,000) .Senior Nutrition Services $ (70,800) $ (65,000) Summer Youth Employment $ (25,000) $- _ (25,000) Subtotal $ (1051800) $ (95,000) Public works. Improvement. Garvey Park Bathroom $ (390,000) Garvey Park_Gym HVAC $ (257,000) Alleyway Improvements Subtotal $ (390,000) $ (385,300) Total CDBG Allocation ' ` $ ` (1,275,367] $ (1;005,633) Attachment B Fiscal Year 2019-2020 Annual Action Plan ■ Te m ^ kgry Www Rz- ` 9 Y�Wv ITY OF ROSEMEAD, CALIFORNIA 019-20 ANNUAL ACTION PLAN May 15, 2019 Attachment B FY 2019-20 Annual Action Plan Executive Summary AP -05 Executive Summary - 24 CER 91.200(c), 91.220(b) 1. Introduction Each year between May and July, the City of Rosemead submits an Annual Action Plan ("Action Plan") covering the period July 1st of that year through June 30th of the following year to the U.S. Department of Housing and Urban Development (HUD). An Action Plan is required by HUD in order for the City to receive federal funds under the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs. The Action Plan includes the proposed activities, resources and expenditures for the CDBG and HOME programs. This is the fifth out of five Action Plans under the City's 2015-2019 Consolidated Plan. A more general summary of each project and each amount the City is proposing in the FY 2019- 20 01920 can be found under section AP -20 Annual Goals and Objectives. In general, the City will continue to carry out program administration, fair housing, residential programs, and public services that aid youth, at -risk families, seniors, and the disabled. In addition, the City will continue to use a portion of CDBG funds for its public facility and commercial improvements, which will principally take place in the City's adopted target/revitalization areas. 2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan. The strategies and projects outlined in this plan are intended to benefit low and moderate - income residents, improve distressed and blighted neighborhoods with high concentrations of low and moderate -income residents and positively impact the city as a whole. These Strategies Will be coordinated with other federal and state grant programs and local initiatives to meet the objectives. outlined in the plan. The Annual Plan will focus on goals established in the Five -Year 2015-2019 Consolidated Plan Strategies (CPS). Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2019) 1 During the development of the Annual Action Plan, the City sought input from residents to identify and prioritize the various community needs. Furthermore, the City consulted with local public and private service providers to assess the housing and community development needs of low to moderate -income households and special needs households. The City consulted with the Housing Authority of the County of Los Angeles and nonprofit organizations to determine funding needs for housing and services for homeless persons, low to moderate -income persons, and low- income neighborhoods. Priority areas of need as determined from public participation and research for the Consolidated Plan include: • Preserve the City's existing affordable housing stock for Low and Moderate Incomes (0 to 80% of MFI) • Promote, Increase, Maintain Homeownership for Low and Moderate -Income Households • Provide Safe, Affordable, Decent Housing for Renters with Low and Moderate Incomes • Provide Transitional & Permanent Supportive Services for Homeless Persons • Provide Supportive Services for Non -Homeless Persons with Special Needs • Promote Fair Housing Among all Income Persons 3. Evaluation of past performance This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. The City of Rosemead is near the end of its fifth year of the 2015-2019 Five -Year Consolidated Plan. Each year the City's Community Development Department prepares a Consolidated Annual Performance and Evaluation Report (CAPER) to report the progress of the Consolidated Plan goals. Attached to the CAPER are project reports that show progress on goals established in the 2015-2019 Consolidated Plan through the end of the program year. In carrying out its Annual Action Plan, the City of Rosemead has made considerable progress toward meeting priority needs. Many of the activities performed contribute to stabilizing the City's lower income neighborhoods and improving living conditions for individual, low to moderate -income families. Improvements to housing and public infrastructure improve the appearance of neighborhoods and create a more appealing environment. New housing development and homeownership programs promote pride in ownership and long-term resident stability. Funding of non-profit facilities that serve the homeless and other eligible recipients and neighborhoods help Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2019) 2 organizations better meet the needs of their clients. Renovations were performed on owner - occupied housing eliminating blighted conditions. The scope of the renovations varied depending on the program and households needs with improvements ranging from health and safety improvements to full scale renovations. Homeownership opportunities for low to moderate income persons remain a priority program for the City, however; because of economic conditions, applications and completed projects have fluctuated over the years for the First Time Homebuyer program. Housing, supportive services, and case management were provided to homeless persons through several of the City's subrecipients. Additionally, emergency, transitional, and permanent support was provided based on client need. The most recent past performance evaluation and reporting can be found in the FY 2017- 18 Comprehensive Annual Performance Evaluation Report (CAPER). This report provides both summary and details of resources, distribution and accomplishments for CDBG and HOME funded programs. 4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan. Consultation with both public and private organizations that service residents of Rosemead by either providing shelter/housing; own and manage housing for low income seniors and families; build housing for low income seniors and families; and/or provide some type of services to populations with special needs (i.e. elderly, homeless, disabled, etc.) has been an ongoing process since the development of the original Consolidated Plan. Organizations receiving direct CDBG funding have been in regular contact with City staff. Other organizations are consulted on an as needed basis, are invited to comment on the draft Plan, or have been present at various public hearings held by the City. The City conducted two public hearings. The first public hearing focuses on performance and the needs of the community as they relate to housing, homelessness, and community development needs such as infrastructure, improvements, and public services as well as to review Public Service applications for funding. This hearing took place before the Rosemead City Council on March 26, 2019 at Rosemead City Hall, where the Council received the Draft Action Plan and started the 30 -day public comment period. The second meeting was held May 14, 2019 to approve the Action Plan and took place in front of the Rosemead City Council at Rosemead City Hall. Minutes of these meetings are on file with the City Clerk's Office. Notice of each public hearing was published in the Rosemead Reader 10 days prior to the hearing. Notices of the public hearing Annual Action Plan 3 2019 DMB Control No: 2506-0117 (exp. 06/30/2019) were also posted 10 days prior to each public hearing at City Hall, Garvey Community Center, Rosemead Library, Rosemead Public Safety Center, Rosemead Post Office, Rosemead Community Recreation Center, and the City's Website. A copy of the draft Plan was placed on display at the Rosemead Library, the City's City Clerk's Office, and the City of Rosemead's Community Development Department Individuals were invited to attend the public hearing that was held on May 14, 2019. The City did not receive any comments during this 30 -day review period from the community, agencies or organizations. 5. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. A summary of the comments received is provided under the section "Citizen Participation Comments". 6. Summary of comments or views not accepted and the reasons for not accepting them Not Applicable 7. Summary The City accepted and reported all comments received. Annual Action Plan 2019 OMB Control No; 2506-0117 (exp. 06/30/2019) 2 PR -05 Lead & Responsible Agencies — 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency CDBG Administrator ROSEMEAD Community Development Department HOME Administrator ROSEMEAD Community Development Department Table 1— Responsible Agencies Narrative (optional) Lead Agency - The City of Rosemead's Community Development Department is the lead department for policy direction, review of funding applications, project review, and decisions on the Annual Action Plan ("the Plan") and makes funding recommendations to the City Council. Annual Action Plan Team - The City of Rosemead's Community Development Department is responsible for preparation of the Plan, and for coordinating the update of all the information contained therein of a demographic or programmatic nature. The Community Development Department also conducts a review of applications for eligibility and adherence to HUD National Objectives, which are then submitted to the City Council for further review and funding recommendations. The City Council approves the Plan. The City Council reviews the draft Plan and provides a setting for public testimony. The City Council holds one public hearing on the. Plan to solicit public comments. The City Council also schedules at least one meeting for discussion of the Plan. After which, the City Council holds a public hearing approving the Plan and authorizing the submittal to HUD. HUD has 45 days to review, modify, or reject the Plan. The Community Development Department is also responsible for responding to HUD inquiries regarding the Plan such as HUD -directed new initiatives regarding Plan preparation and budget reporting of project activities. The City's Finance Department, working in cooperation with Community Development and other City departments and agencies, plays an active role in identifying the financial status of slow-moving projects as well as projects ready to fund so that grant resources are used more efficiently. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2019) 5 Consolidated Plan Public Contact Information Ben Kim Director of Community Development (626)569-2169 bkim@cityofrosemead.org Annual Action Plan 2019 OMB Control No: 2506-0117 {exp. 06/30/2019} AP -10 Consultation — 91.100, 91.200(b), 91.215(1) 1. Introduction The strategies and projects outlined in this plan are intended to benefit low and moderate - income residents, improve distressed and blighted neighborhoods with high concentrations of low and moderate -income (LMI) residents and positively impact the City of Rosemead as a whole. These Strategies will be coordinated with other federal and state grant programs and local initiatives to meet the objectives outlined in the plan. The Annual Action Plan will focus on goals established in the Five -Year 2015-2019 Consolidated Plan Strategies (CPS). Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1)) As required by the regulations, the City consulted with a wide range of public and private entities that provide housing, health services, and social services for low to moderate -income residents. Organizations receiving direct CDBG funding have been in regular contact with City of Rosemead staff. Other organizations are consulted on an as needed basis, are invited to comment on the draft Plan, or have been present at various public hearings held by the City. Since the development of the original Consolidated Plan, the City has worked with the following agencies: • American Red Cross San Gabriel Pomona Valley Chapter • Asian Pacific Family Center • Boys & Girls Club of West San Gabriel Valley • Catholic Rainbow Outreach • City of Rosemead, Garvey Community Center • County of Los Angeles, Department of Health Services • Family Counseling Services • Family Promise • Garvey School District • Housing Authority County of Los Angeles • Los Angeles Center for Alcohol & Drug Abuse • Los Angeles Homeless Services Authority • Morrison Health Care • Rosemead High School Annual Action Plan 2019 DMB Control No: 2506-0117 (exp. 06/30/2019) 7 • Rosemead School District • Salvation Army • The Southern California Housing Rights Center • Vietnamese American Senior Association • Volunteer's Center of San Gabriel Valley • YWCA—Wings Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The. City consulted with the Housing Authority of the County of Los Angeles and nonprofit organizations (i.e. Los.Angeles Homeless Services Authority, Family Promise of San Gabriel Valley, etc.) to determine funding needs for housing and services for homeless persons, low to moderate -income persons, and low-income neighborhoods. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City reached out to the Los Angeles Homeless Services Authority for the Point in Time (PIT) count as it relates to the City of Rosemead and the Service Provider Area. The goals of the homeless needs under the Strategic Plan and Action Plan are closely coordinated with the goals of the Los Angeles Homeless Services Authority (LAHSA). 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction's consultations with housing, social service agencies and other entities Table 2 — AEencies. Erouns. oreanizations who participated .1 Agency/Group/Organization Housing Rights Center Agency/Group/Organization Type Service -Fair Housing What section of the Plan was addressed Housing Need Assessment by Consultation? Non -Homeless Special Needs Market Analysis Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2019) 0 Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2019) Briefly describe how the City staff met with the Executive Director of Agency/Group/Organization was the Southern California Housing Rights consulted. What are the anticipated Center to consult regarding the Annual outcomes of the consultation or areas Action Plan process, the Analysis of for improved coordination? Impediments, actions that should be taken to affirmatively further fair housing, etc. 2 Agency/Group/Organization HOUSING AUTHORITY COUNTY OF LOS ANGELES Agency/Group/Organization Type PHA What section of the Plan was addressed Public Housing Needs by Consultation? Briefly describe how the City staff spoke with the Housing Authority of Agency/Group/Organization was the County of Los Angeles (HACoLA) to consulted. What are the anticipated discuss characteristics and data needs outcomes of the consultation or areas regarding HACoLA's Public Housing and for improved coordination? Section 8 inventory and public housing needs and priorities. 3 Agency/Group/Organization Los Angeles Homeless Services Authority Agency/Group/Organization Type Services -homeless What section of the Plan was addressed Housing Need Assessment by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Market Analysis Economic Development Anti -poverty Strategy Briefly describe how the City staff spoke with the Los Angeles Agency/Group/Organization was Homeless Services Authority to discuss consulted. What are the anticipated characteristics and needs of homeless outcomes of the consultation or areas individuals, families, and "at -risk" individuals for improved coordination? and families. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2019) 4 Agency/Group/Organization Family Promise of San Gabriel Valley Agency/Group/Organization Type Services -homeless What section of the Plan was addressed Housing Need Assessment by Consultation? Homeless Needs - Families.with children Homelessness Strategy Market Analysis Economic Development Anti -poverty Strategy Briefly describe how the City staff spoke with the Chair of Family Agency/Group/Organization was Promise of San Gabriel Valley to discuss consulted. What are the anticipated characteristics and needs of homeless outcomes of the consultation or areas families and "at -risk" families. for improved coordination?. 5 Agency/Group/Organization County of Los Angeles: Department of Health Services Agency/Group/Organization Type Health Agency. What section of the Plan was addressed . Lead-based Paint Strategy by Consultation? Briefly describe how the City staff spoke with the Health Assessment Agency/Group/Organization was Division of the Los Angeles County consulted. What are the anticipated Department of Health Services to discuss the outcomes of the consultation or areas number of children/seniors recorded with an for improved coordination? environmental intervention blood lead level (EIB) within Rosemead and the wide range of activities to address the problem of lead- based paint in the housing, including outreach, assessment, and abatement. 6 Agency/Group/Organization MORRISON MANAGEMENT SPECIALISTS, INC. Agency/Group/Organization Type Services -Elderly Persons What section of the Plan was addressed Market Analysis by Consultation? Annual Action Plan 2019 OMB Control No; 2506-0117 (exp. 06/30/2019) 10 Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? City staff contacted the Vice President, Western Region of Morrison Health Care to consult regarding the Annual Action Plan process and services needed for the seniors. Identify any Agency Types not consulted and provide rationale for not consulting The City contacted all agency types to solicit input for the Annual Action Plan. Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? The goals of the homeless needs under the Strategic Continuum of Los Angeles Plan and Action Plan are closely coordinated with the Care Homeless Services goals of the Los Angeles Homeless Services Authority Authority (LAHSA). City staff that prepared the Consolidated Plan were Southern actively involved in the development of the City's Analysis of California Housing Analysis of Impediments (A[). Actions to address Impediments Rights Center impediments identified in the Al are incorporated in the Action Plan and CAPERS. Table 3 — Other local / regional / federal planning efforts Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2019) 11 AP -12 Participation — 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal -setting Two public meeting hearings were scheduled to receive comments and suggestions on the community's housing, public facility, and public service needs. The first meeting was Council Meeting, publicly noticed and held on March 26, 2019, to review Public Service Applications, to introduce the public services and community capital project grant application processes, and to solicit public comment on community development needs. The Council also received the Draft Action Plan for advisory review and recommendation and to commence the 30 -Day Comment Period. The start of the public comment period for the Draft Action Plan began March 27, 2019 and ended on April 30, 2019. The second meeting was held on May 14, 2019, as a public hearing by the City Council to approve and adopt the Action Plan. To ensure maximum participation, a copy of the Draft Action Plan was placed on display at the following locations: Rosemead Library 8800 Valley Boulevard Rosemead, CA 91770 City's City Clerk's Office 8838 E. Valley Blvd. Rosemead, CA 91770 City of Rosemead's Community Development Department 8838 E. Valley Blvd. Rosemead, CA 91770 On March 14, 2019 notice of the availability of the Action Plan was published in the Rosemead Reader announcing the 30 -day public comment period to begin on March 27, 2019 and concluded on April 30, 2019. Individuals were invited to attend the public hearing that was held on May 14, 2019. The City did not receive any comments during this 30 -day review period from the community, agencies; or organizations. Notice of each public hearing was published in the Rosemead Reader 10 days prior to the hearing date and sent to the organizations listed in Appendix B. Notices of the public hearing were also Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 12 posted 10 days prior to each public hearing at City Hall, Garvey Community Center, Rosemead Library, Rosemead Public Safety Center, Rosemead Post Office, Rosemead Community Recreation Center, and the City's Website. Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/ attendance Summary of Comments received Summary of comments not accepted and reasons URL (If applicable) Two notices placed in the Rosemead Reader notifying citizens of the None public hearings. The dates were: March 14, 2019 and May http://www.ros 1 Newspaper Community 2 2019. None emeadreader.c Ad Wide om/ One notice was placed in the Rosemead Reader notifying Citizens of the start of the 30 - day comment period of Action Plan on April 2, 2019. On March 14, 2019 and. May http://www.cit 2 Internet Community 2, 2019, two None None yofrosemead.or Outreach Wide (2) public g/ hearing Annual Action Plan 2019 OMB Control No: 2505-0117 (exp. 05/30/2020) 13 Table 4 — Citizen Participation Outreach Annual Action Plan 2019 OMB Control No: 2506-0117 {exp. 06/30/2020} 14 notices were placed on City of Rosemead's online calendar of events and posted in six (6) locations within the City. Two citywide public hearings http://www.cit Public Community were held: 3 None yofrosemead.o.r Hearing Wide March 26, g/ 2019 and May14, 2019. One (1) notice was placed in the Rosemead Reader on March 14, http://www.ros 4 Newspaper Community 2019 notifying None None emeadreader.c Ad Wide citizens of the om/ 30 -day review period for the Annual Action Plan. The Annual Action Plan was mailed to the Rosemead Direct Community 5 Library for None None Mailing Wide public viewing during the 30 - day comment period. Table 4 — Citizen Participation Outreach Annual Action Plan 2019 OMB Control No: 2506-0117 {exp. 06/30/2020} 14 Expected Resources AP -15 Expected Resources — 91.220(c)(1,2) Introduction The City has been notified by HUD that Rosemead will be receiving $746,663 in CDBG funds for FY 2019-20 and $351,721 in HOME funds. When combined with projected unencumbered ("carryover") funds and projected program income, the City anticipates having an available total of approximately $1,005,000 of CDBG funds available and $1,490,000 in HOME funds for the 2019-20 year. Anticipated Resources Program Source of Uses of Funds Expected Amount Available Year 1 Expected Amount Narrative Description Annual Program Prior Year Total: Funds Allocation: Income: Resources: $ Available $ $ $ Remainder of ConPlan CDBG public Acquisition 746,663 Admin and federal Planning Economic Development Housing Public Improvements Public Services 0 2581970 1,005,633 0 Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 15 Program Source of Uses of Funds Expected Amount Available Year 1 Expected Amount Narrative Description Annual Program Prior Year Total: Funds Allocation: Income: Resources: $ Available $ $ $ Remainder of ConPlan HOME public Acquisition Homebuyer federal assistance Homeowner rehab Multifamily rental new construction Multifamily rental rehab New construction for ownership TBRA 351,721 0 1,138,454 1,490,175 0 Table 5 - Expected Resources — Priority Table Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied The City will continue to use state and local funds to leverage federal entitlement dollars, including but not limited to: • City General Funds (Code Enforcement & Senior Nutrition Services) • In-kind Donations Also, the following service providers budgeted additional federal and non-federal funds to their activities through funding from other cities, in-kind donations, United Way and other charitable organizations, and the Federal and State governments: • Family Promise • Southern California Housing Rights Center In 2018-19, the City was a 50% HOME match reduction community and was required to provide Annual Action Plan 2019 OMB Control No: 2506-011.7 (exp. 06/30/2020) 16 a 12.5% match of non-federal funds towards eligible disbursements completed during that FY. It is assumed that the City will continue to be a 50% HOME match reduction community in FY 2019- 20, and, therefore, still be subject to the 12.5% match requirement. If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the pian The City currently owns one (1) parcel in the City and intends to use it to incentivize developers to address economic development needs. Discussion Not applicable. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 17 Annual Goals and Objectives AP -20 Annual Goals and Objectives Goals Summary Information Sort Goal Name Start End Category Geographi Needs Funding Goal Order Year Year c Area Addressed Outco me lndicat or 1 Planning and 2015 2420 Administration Communit Fair Housing CDBG: Other: 1 Other Administration y Wide Needs $139,333 Homeless HOME: Needs $35,172 Housing Needs Supportive Service Needs 2 Expand Fair 2015 2020 Affordable Communit Fair Housing CDBG: Public service Housing Housing y Wide Needs $10,000 activities other Choice and Public Housing than Access Non -Homeless Low/Moderate Special Needs Income Housing Benefit: 75 Persons Assisted 3 Repair Aging 2015 2020 Affordable Communit Housing CDBG: Homeowner Housing Housing y Wide Needs $100,000 Housing Infrastructure HOME: Rehabilitated: $150,000 10 Household Housing Units 4 Increase the 2015 2020 Affordable Communit Housing CDBG: Homeowner Supply of Lead Housing y Wide Needs $19,000 Housing Safe Housing Rehabilitated: 10 Household Housing Units Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 18 Sort Goal Name Start End Category Geographi Needs Funding Goal Order Year Year c Area Addressed Outco me Indicat or 5 Increase Public 2015 2020 Non -Homeless Communit Supportive CDBG: Public service Services for Special Needs y Wide Service $25,000 activities other the At -Risk Needs than Youth Low/Moderate Income Housing Benefit: 30 Persons Assisted 6 Prevent 2015 2020 Homeless Communit Homeless CDBG: Homeless Homelessness y Wide Needs $5,000 Person Overnight Shelter: 5 Persons Assisted 7 Increase Public 2015 2020 Non -Homeless Communit Supportive CDBG: Public service Services for Special Needs y Wide Service $65,000 activities other Seniors Needs than Low/Moderate Income Housing Benefit: 15,000 Persons Assisted 8 Commercial 2015 2020 Non -Housing Communit Public CDBG: Public service Fagade Community y Wide Services $250,000 activities other Improvements Development than Low/Moderate Income Housing Benefit: community Annual Action Plan 2019 OMB Control No: 2506-0117 {exp. 06/30/2020} 19 Sort Goal Name Start End Category Geographi Needs Funding Goal Order Goal Description Year Year c Area Addressed Outco me Indicat or 9 Public Facilities 2015 2020 Public Facilities CDBG Public CDBG: Public facility or Improvements Target Facilities $385,300 infrastructure Public Area activities other Improvements Public than Improveme Low/Moderate nts Income Housing Benefit 10 Affordable 2015 2020 Affordable Communit Affordable HOME: Homeowner Owner Housing y Wide Owner $1,203,0 Housing Added: Housing Housing 03 Affordable Needs Housing Project 11 Community 2015 2020 Affordable Communit Renter HOME: Other: 1Other Housing Housing y Wide Needs $2,000 Development Org (CHDO) - Admin. 12 Down Payment 2015 2020 Affordable Communit Home HOME: Other: 1 Other Assistance Housing y Wide Owner $100,000 Needs Table 6 — Goals Summary Goal Descriptions 1 Goal Name Planning and Administration Goal Description Efficient and timely oversight of the CDBG and HOME programs. 2 Goal Name Expand Fair Housing Choice and Access Goal Description Support housing opportunities by using funding to promote fair and equal housing. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 20 3 Goal Name Public Infrastructure Goal Description This goal is to find or provide funding for infrastructure improvements to public facilities, including accessibility improvements and infrastructure repairs and improvements in the city's low- and moderate -income neighborhoods. 4 Goal Name Repair Aging Housing Infrastructure Goal Description Provide funding to support a suitable living environment and for preserving existing housing stock. 5 Goal Name Increase the Supply of Lead Safe Housing Goal Description Test for lead paint and perform risk assessments and remediate when necessary. Goal Name Commercial Facade Rehabilitation Goal Description Support economic development by improving commercial districts. 7 Goal Name Increase Public Services for At -Risk Youth Goal Description Provide funds for summer programs for youth under the age of 18 and their families who are low to moderate -income (0 to 80% of MFI). 8 Goal Name Prevent Homelessness Goal Description Provide funding for homeless housing and supportive services for a suitable living environment 9 Goal Name Increase Public Services for Seniors Goal Description Support public service providers to expand resources to benefit seniors 10 Goal Name Affordable Owner Housing Goal Description Provide or find funding for new low-income rental units and down - payment loan assistance for ownership units. Annual Action Plan 2019 DMB Control No: 2506-0117 (exp. 06/30/2020) 21 Projects AP -35 Projects - 91.220(d) Introduction The City has been notified by HUD that Rosemead will be receiving $746,663 in CDBG funds for FY 2019-20 and $351,721 in HOME funds for FY 2019-20. When combined with projected carryover funds and projected program income, the City anticipates having a total of approximately $1,005,000 in CDBG funds and $1,490,000 in HOME funds for the 2019-20 year. Projects # Project Name 1 General Administration 2 Southern California Housing Rights Center 3 Owner -Occupied Rehabilitation Program - Emergency Grants 4 Owner -Occupied Rehabilitation Program -Grants 5 Owner -Occupied Rehabilitation Program - Rebates 6 Owner -Occupied Rehabilitation Program - Lead/Asbestos Testing 7 Owner -Occupied Rehabilitation Program - Lead/Asbestos Remediation 8 Commercial Fagade Improvements 9 Public Works Improvement 10 Family Promise of San Gabriel Valley 11 Senior Nutrition 12 Summer Youth Program 13 HOME Administration 14 Owner -Occupied Rehabilitation Program - Loans 15 Down Payment Assistance Program 16 Rio Hondo Community. Development Corporation - Operating Expense 17 Affordable Housing Development Table 7 - Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The City of Rosemead faces a number of potential obstacles in meeting affordable housing and community development needs and underserved needs through the CDBG and HOME program which includes lack of affordable land for housing development, funding constraints to address community development needs, and continued reductions for CDBG, HOME, and other federal Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 22 funding sources in each fiscal year. Annual Action plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 23 The City will continue to look for non-traditional ways to develop affordable housing units and meet community development needs; work to combine funding sources and leverage private funds to develop affordable housing; and, to work with the federal government to ensure that sufficient funding continues in order to meet needs. AP -38 Project Summary Project Summary Information 1 Project Name General Administration Target Area N/A Goals Supported Planning and Administration Needs Addressed Housing Needs Affordable Owner Housing Needs Homeless Needs Funding CDBG: $139,333 Description Provide funds toward the payment of reasonable administrative costs and carrying charges related to the planning and execution of community development activities financed in whole or in part by CDBG funds. Target Date 6/30/2020 Estimate the number N/A and type of families that will benefit from the proposed activities Location Description Community wide Planned Activities This program will provide for payment of reasonable administrative costs and carrying charges related to the planning and execution of community development activities financed in whole or in part by CDBG funds. 2 Project Name Southern California Housing Rights Center Target Area N/A Goals Supported Expand Fair Housing Choice and Access Needs Addressed Fair Housing Needs Annual Action Plan 2019 OMB Control No: 25060117 (exp. 06/30/2020) 24 Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 25 Funding CDBG: $10,000 Description Provides funds for the Southern California Housing Rights Center to prepare and administer a l=air Housing Counseling Program in the City of Rosemead. Target Date 6/30/2020 Estimate the number 100 and type of families that will benefit from the proposed activities Location Description Communitywide Planned Activities Through a sub -recipient contract with the Southern California Housing Rights Center, this program will provide for the preparation and administration of a Fair Housing Counseling Program. 3 Project Name Owner -Occupied Rehabilitation Program - Emergency Grants Target Area N/A Goals Supported Repair Aging Housing Infrastructure Needs Addressed Homeless Needs Funding CDBG: $2,000 Description Provide funds to homeowners who are low to moderate - income and need funding for correction to emergency code deficiencies that constitute an immediate health and/or safety issue. Target Date 6/30/2020 Estimate the number 10 and type of families that will benefit from the proposed activities [Location Description Communitywide Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 25 Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 26 Planned Activities This program will provide funds toward the Owner -Occupied Rehabilitation Program for Emergency Grants, which assist low to moderate -income households in maintaining a safe and decent living environment. 4 Project Name Owner -Occupied Rehabilitation Program - Grants Target Area N/A Goals Supported Repair Aging Housing Infrastructure Needs Addressed Housing Needs Funding CDBG: $100,000 Description Provide funds for a $15,000 grant to low and moderate - income senior citizens (62 years or alder) and disabled homeowners for repairs related to interior and exterior code deficiencies and general home improvements. Target Date 6/30/2020 Estimate the number 10 and type of families that will benefit from the proposed activities Location Description Community Wide Planned Activities This program will provide funds toward the Owner -Occupied Rehabilitation Program for Grants, which will assist low to moderate -income households in maintaining a safe and decent living environment. 5 Project Name Owner -Occupied Rehabilitation Program - Rebates Target Area N/A Goals Supported Repair Aging Housing Infrastructure Needs Addressed Housing Needs Funding CDBG: $5,000 Description Provide funds for a continuing program that provides rebates of 50% off the cost of home improvements (up to $15,000 for $30,000 worth of improvements) to homeowners who meet low to moderate -income criteria. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 26 Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 27 Target Date 6/30/2020 Estimate the number 2 and type of families that will benefit from the proposed activities Location Description Communitywide Planned Activities This program will provide funds towards the Owner -Occupied Rehabilitation Program for Rebates, which assist law to moderate -income households in maintaining a safe and decent living environment. 6 Project Name Owner -Occupied Rehabilitation Program - Lead/Asbestos Testing Target Area N/A Goals Supported Increase the Supply of Lead Safe Housing Needs Addressed Housing Needs Funding CDBG: $4,000 Description Provide funds for testing and clearance testing (including risk assessment) of units constructed prior to 1978 that participate in the City's Owner -Occupied Rehabilitation Program. Target Date 6/30/2020 Estimate the number 5 and type of families that will benefit from the proposed activities Location Description Communitywide Planned Activities This program will provide for the testing and clearance testing (including risk assessment) of lead/asbestos hazards of units constructed prior to 1978 that participate in the City's Owner - Occupied Rehabilitation Program. 7 Project Name Owner -Occupied Rehabilitation Program - Lead/Asbestos Remediation Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 27 Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) W. Target Area N/A Goals Supported Increase the Supply of Lead Safe Housing Needs Addressed Housing Needs Funding CDBG: $15,000 Description Provide grant funds to remediate lead/asbestos hazards in units participating in the City's Owner -Occupied Rehabilitation Program. Target Date 6/30/2020 Estimate the number 5 and type of families that will benefit from the proposed activities Location Description Community Wide Planned Activities This program will provide remediation of lead/asbestos hazards of units constructed prior to 1978 that participate in the City's Owner -Occupied Rehabilitation Program. S Project Name Facilities Improvement Target Area .Eligible Law and Moderate -Income Block Groups Goals Supported Suitable living environment Public Infrastructure Needs Addressed Handicapped Center/ Facility Homeless Facilities Youth Centers Neighborhood Facilities Parks and/or Recreation Facilities Street Improvements Sidewalks - Accessibility Other Infrastructure Needs Funding CDBG: $385,300 Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) W. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 29 Description Provide funds for public facility improvements in eligible low and moderate-income block groups based on an official designation of deteriorating and/or deteriorated areas. Target Date 6/30/2020 Estimate the number 2 and type of families that will benefit from the proposed activities Location Description Eligible Low and Moderate-Income Block Groups Planned Activities This program will provide HVAC system for Garvey Park Gym. 9 Project Name Summer Youth Program Target Area N/A Goals Supported Increase Public Services for the At-Risk Youth Needs Addressed Supportive Service Needs Funding CDBG: $25,000 Description Recreational summer program services to youth under the age of 18 and their families who meet certain income requirements. Target Date 6/30/2020 Estimate the number 12 and type of families that will benefit from the proposed activities Location Description Community wide Planned Activities Through a sub-recipient contract with the Santa Anita Family Service, this program will provide low-cost crisis intervention and crime prevention services to youth under the age of 18 and their families who meet certain income requirements. 10 Project Name Family Promise of San Gabriel Valley Target Area N/A Goals Supported Prevent Homelessness Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 29 Annual Action Pian 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) Wo Needs Addressed Homeless Needs Funding CDBG: $5,000 Description Provide funds for the partial funding of a Homeless Shelter for families. The shelter provides temporary transitional housing for families, as well as a full range of social services for clients. Target Date 6/30/2020 Estimate the number 25 and type of families that will benefit from the proposed activities Location Description Community wide Planned Activities Through a sub -recipient contract with Family Promise of San Gabriel Valley, this program will provide the partial funding of a Homeless Shelter for families. The shelter provides temporary transitional housing for families, as well as a full range of social services for clients. 11 Project Name Senior Nutrition Target Area N/A Goals Supported Increase Public Services for Seniors Needs Addressed Supportive Service Needs Funding CDBG: $65;000 Description Provide funds for the Senior Nutrition Program. The Senior Nutrition Program provides high quality, cost efficient, nutritious meals at one City location (Garvey Community Center) to seniors living in Rosemead and promotes the role of nutrition in preventative health and long-term care. Target Date. 6/30/2020 Estimate the number 500 and type of families that will benefit from the proposed activities Location Description Community wide Annual Action Pian 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) Wo Annual Action Plan 2019 OMB control No: 2so6-0117 (exp: 06/30/2020) 31 Planned Activities The Senior Nutrition Program will provide high quality, cost efficient, nutritious meals at the Garvey Community Center to seniors living in Rosemead and promotes the role of nutrition in preventative health and long-term care. 12 Project Name Commercial Fagade Improvements Target Area Eligible Low and Moderate -Income Block Groups Goals Supported Suitable living environment Needs Addressed Handicapped Center/ Facility Homeless Facilities Youth Centers Neighborhood Facilities Parks and/or Recreation Facilities Street Improvements Sidewalks - Accessibility Other Infrastructure Needs Funding CDBG: $250,000 Description Improvements to prevent blight of commercial CDBG target areas. Target Date 6/30/2020 Estimate the number 5 and type of families. that will benefit from the proposed activities Location Description Community wide Planned Activities Support a suitable living environment by improving commercial facades in the City's commercial. districts. 13 Project Name HOME Administration Target Area N/A Goals.Supported Planning and Administration Annual Action Plan 2019 OMB control No: 2so6-0117 (exp: 06/30/2020) 31 Annual Action Plan 32 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) Needs Addressed Housing Needs Funding HOME: $35,172 Description Provide funds toward the payment of reasonable administrative costs and carrying charges related to the planning and execution of community development activities financed in whole or in part by HOME funds. Target Date 6/30/2020 Estimate the number N/A and type of families that will benefit from the proposed activities Location Description Community wide Planned Activities Assist low to moderate home buyers. 14 Project Name Owner -Occupied Rehabilitation Program.- Loans Target Area Community Wide Goals Supported Repair Aging Housing Infrastructure Needs Addressed Housing Needs Funding HOME: $150,000 Description Provide funds for the City's low interest (0 to 3%) deferred payment loans to seniors, persons with a disability, and families of low to moderate -income who own and occupy their homes and need financial assistance to make repairs and improvements. Target Date 6/30/2020 Estimate the number 2 and type of families that will benefit from the proposed activities Location Description City wide Annual Action Plan 32 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 33 Planned Activities This program will provide funds toward the Owner -Occupied Rehabilitation Program for Loans, which assist low to moderate -income households who own and occupy their homes and need financial assistance to make repairs and improvements. 15 Project Name Down Payment Assistance Program Target Area N/A Goals Supported Affordable Owner Housing Needs Addressed Affordable Owner Housing Needs Funding HOME: $100,000 Description Provide funds for first time homebuyers through the City's Down Payment Assistance Program. The amount of the loan will vary depending on the value of the house to be purchased to assist the homebuyer in achieving a 25% down payment. The maximum allowable loan will be $95,000. Target Date 6/30/2020 Estimate the number 1 and type of families that will benefit from the proposed activities Location Description N/A Planned Activities This program will provide funds for first time homebuyers through the City's Down Payment Assistance Program. The amount of the loan will vary depending on the value of the house to be purchased to assist the homebuyer in achieving a 25% down payment. The maximum allowable loan will be $95,000. 16 Protect Name Rio Hondo Community Development Corporation - Operating Expense Target Area N/A Goals Supported Community Housing. Development Org (CHDO) _ Admin. Needs Addressed Renter Needs Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 33 Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 34 Funding HOME: $2,000 Description Provide funds for general operating support during the development of CHDO set-aside funded affordable housing projects. Target Date 6/30/2020 Estimate the number 1 and type of families that will benefit from the proposed activities Location Description Community Wide Planned Activities This program will provide for the general operating support during the development of CHDO set-aside funded affordable housing projects. 17 Project Name Affordable Housing Development Target Area Community Wide Goals Supported Creation of Affordable Housing Needs Addressed Renter Needs Funding HOME: $1,203,003 Description Provide funds for the production of affordable housing opportunities using available funds under the HOME Investment Partnerships (HOME) entitlement grant. Target Date 6/30/2020 Estimate the number 1 and type of families that will benefit from the proposed activities Location Description Community Wide Planned Activities This program will provide for the production of affordable housing opportunities available funds under the HOME Investment Partnerships (HOME) entitlement grant. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 34 AP -50 Geographic Distribution — 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed To prevent the concentration of low-income persons, City housing programs are marketed and available throughout the City. The programs are not directed to any one geographical area but rather the extremely low to moderate -income (0 to 80% of the MFI) persons and families. The City wants to promote a balanced and integrated community and is committed to providing assistance throughout the City, There are exceptions to this policy for activities limited to low and moderate -income block groups. Eligible activities in areas found to be low and moderate -income block groups include street improvements, improvement to public facilities, improvements to facilities for persons with special needs. The low and moderate -income (LMI) area benefit national objective applies if the activities benefit all persons in a residential area where at least 51% of persons will benefit from the activities. The LMI Census tracts include 4823.03, 4824.01, the eastern portion of 4336.01, 4823.04, 4825.02, 4825.03, the northern portion of 4824.02, and 4336.02, Housing conditions survey data report that many of these tracts (mostly multi -family residential) consist of a majority of structures and properties within the block require major repair of building systems. The LMI residential areas in Rosemead cover the very most northern part and the Garvey district in the southern half of the City, below Highway 10. The Garvey district is comprised primarily of residential land uses. Neighborhoods west of Walnut Grove Avenue in Garvey consist mostly of medium density residential with three smaller zones of low density residential. All residential east of Walnut Grove Avenue is low density residential. The City is nearly completely built out and consists primarily of residential development. Most of the housing stock was built prior to 1989 and the rate of development of new units has tapered substantially. The new Low and Moderate -Income Summary Data (LMISD), resulting from the 2000 Census, became effective on July 1, 2003. The LMISD is the data that the City uses for our official determinations of activity compliance with the low and moderate -income area benefit national objective, in accordance with the Housing and Community Development Act of 1974, as amended, and the CDBG regulations. Because timely use of this data is required by regulation, changes to the City's existing service area boundaries would need to be approved by the City Council. Each year, through the adoption of the City's Annual Action Plan, the City Council approves the service area boundaries (shown in Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 35 Appendix Q as the City's official low and moderate -income "Target Areas" and "Deteriorating Areas". The City has traditionally used 80% or more of its CDBG resources to benefit these special areas and/or to operate programs available exclusively to low and moderate -income people (whereas HUD regulations only require a minimum 70% low/mod benefit level for CDBG activities). To continue to achieve this high ratio of low/mod benefit for its CDBG resources, and because of the compelling need to assist these target areas, the City will continue to target CDBG resources to these special geographic areas. Geographic Distribution Target Area Percentage of Funds E=ligible Low and Moderate -Income Block Groups 30 Community Wide 60 Table 8 - Geographic Distribution Rationale for the priorities for allocating investments geographically To accommodate future residential development, improvements are necessary in infrastructure and public services related to man-made facilities such as sewer, water, and electrical services. Portions of the City are also constrained by various environmental hazards and resources that may affect the development of lower priced residential units. Although these constraints are primarily physical, and hazard related, theyare also associated with the conservation of the City's natural resources. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 36 Affordable Housing AP -55 Affordable Housing — 91.220(g) Introduction The demand for affordable housing for low- and moderate -income households in Rosemead has been persistent, as the analyses in the Consolidated Plan have demonstrated. The City established maintenance of affordable housing as a high priority need and established a goal of rehabilitating 50 owner -occupied housing units in order to maintain the City's stock of affordable units over the five-year period of the Consolidated Plan. In addition, the City is focusing on creating new affordable units in cooperation with an affordable housing developer. One Year Goals for the Number of Households to be Supported Homeless 0 Non -Homeless 13 Special -Needs 0 Total 13 Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 0 Rehab of Existing Units 12 Acquisition of Existing Units 1 Tota 1 13 Table 10 - One Year Goals for Affordable Housing by Support Type Discussion The City of Rosemead anticipates assisting 10 low to moderate -income homeowners through the Owner -Occupied Rehabilitation Program, 2 low to moderate -income first-time homebuyers with the purchase of a home, and the acquisition of land for 1 low to moderate -income Veterans Housing Project. Low to moderate -income is defined as 0 to 80% of the MFI. The City of Rosemead uses HOME funds for homebuyer assistance and rehabilitation of owner - occupied single-family properties. The City must use the HOME affordable homeownership limits provided by HUD when setting price limits for affordable home sales and when using HOME funds Annual Action Plan 2019 OMB Control No: 2506-0117 {exp. 06/30/2020} 37 for home rehabilitation. Also, the use of funds for HOME assisted activities requires that the value of the property after rehabilitation must not exceed 95 percent of the median purchase price for the area. The HOME Final Rule offers two options for determining the 95 percent of median purchase price limit for owner -occupied single-family housing, as noted below: (1) HUD will provide limits for affordable housing based on 95 percent of the median purchase price for the area; OR (2) Perform a local market survey to determine the 95 percent of median purchase price limit. After review of the published 2019 HOME affordable homeownership limits provided by HUD, for Los Angeles County for determining 95 percent of the median purchase price limit, it was determined that the median price for Rosemead homes is $451,000. For a newly constructed unit, the limit is $491,000. Based on FHA standard practice, the following multipliers are used for 2-, 3-, and 4 -unit properties: 1.28, 1.55, and 1.92 times the 1 -unit limit respectively. Based on a comparison of local housing market listing prices and sales information, it was determined that the FHA limits do not accurately reflect current actual home purchase prices for the area. Therefore, a local market survey was conducted for Rosemead home sales for a three-month period using HdL data. This survey shows a median price of $550,000 in the City of Rosemead and a 95% median value price of $522,500 (see home sales data table below). FHA — Market Median Price $451,000 FHA — Market Median Price for newly constructed $491,000 Rosemead Local Market Survey Median Price $550,000 95% of Rosemead Local Market Survey Median Price $522,500 As a result of this conclusion, it is our recommendation that the City of Rosemead use the local market survey price as the determinant of the 95 percent median purchase price limit as it is higher than the FHA -Market Median Price. City of Rosemead. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 38 3 Months Home Sales Data January 2019 to March 2019 Annual Action Plan 2019 OMB Control No: 2506-0157 (exp. 06/30/2020) 39 Sale Date Parcel Situs Address — Price 1 2/20/2019 5285-030-023 2537 Del Mar Ave $228,000 2 3/12/2019 5287-037-001 7919 Virginia St $350,000 3— 2/27/2019 5277-001-019 -- T7156 Mooney Dr $384,000 4 2/26/2019 5390-013-039 8928 Ralph St $400,000 5 03/06/19 5287-034.008 8134 Whitmore St $403,750 6 . 01/29/19 5286-033-010 3213 Isabel Ave $450,000 7 03/01/19 5281-032-065 1070 Walnut Grove Ave $459,977 - __._ 8 - .:....----.._.-.._. 01/18/19 ---- -- - 8592-019-089 _._........ 4518 Livia Ave $463,800 9 . 03/12/19 5279-032-116 8364 Rush St $465,000 10 01/13/19 -- — 5281-032-007 8655 Landis View Ln $480,000 11 03/17/19 5279-032-131 1911 Delta Ave $482,000- 12 02/07/19 5279-029-019 1129 Walnut Grove Ave $483,000 13 01/31/19 5277-004-019 7328 Mooney Dr $490,000 14 03/14/19 5275-005-0141410 Potrero Grande Dr $495,000 15 01/17/19 5285-021-021 - 7742 Young Ave W............ -- $495;846 --_ 16 01/17/19 5285-021-021 7742 Young Ave $510,000 17 03/18/19 5289-004-047. 3111 Burton Ave $539,047 18 01/11/19 5284-004-021 2533 San Gabriel Blvd $530,000 19 . 03/20/19 5283-034-020 8242 Klingerman St $532,000 -- 20 __--------- 02/25/19 5279-029-063 8559 Village Ln $539,000 — 21 m ^ 03/18/19 8593-015-001 J3568 Lashbrook.Ave . $540;000 22 02/22/19 5284-022-020 2121 Kelburn Ave $550,000 Annual Action Plan 2019 OMB Control No: 2506-0157 (exp. 06/30/2020) 39 24 02/28/19 5279-023-049 8303 Village Ln $560,000 25 03/12/19 5390-005-061 8808 Olney St $570,000 - 26 03/18/19 5289-014-039 3378 Earlswood Dr $574,000 27 03/06/19 5285-036-014 7701 Newmark Ave $645,000 . 28 29 02/10/19 —-._.............._._. 03/11/19 5371-006-052 _..._.._._.._ -- - 8594-007-017 3734 N Charlotte Ave --,..._.._..._._ - 9312 Steele St $650;000 -__------------- .._..-- $668,000 30 02/19/19-_.___.__ -- 5279-019-013 - - -- 8329 Sierra Bonita Ave $662,291 31 01/23/1.9 5286-009-008 7562 Columbia St ..._..._--- $678,000 - ----._.._......._ _.. 32 ----............._..... 02/05/1.9 _. --- ._..__.. 5282-005-019 .--—._............ 2732 Bartlett Ave $680,000 33 03/05/1.9 5281-032-010 8617 Landis View Ln $6801000 34 01/09/19 5389-012-047 8743 Faircrest Dr $682,000 35 01/29/19 i 5288-018-011 3313 Stallo Ave $695,000 36 02/07/19 8593-017-002 3634 Marybeth Ave $700,000 37 02/07/19 5285-01.7-006 2230 Cathryn Dr _------- $700,000 -- — --- — _..... ..... 38 03/14/19 5289-013-026 3442 Muscatel Ave $710,000 39 02/06/19 5288-013-017 3407 Charlotte Ave $7307000 40 01/16/19 8592-013-048 4314 Encinita Ave $770,000 41 01/23/19 5287-038-036 791.3 Virginia St __....... - $850,000 - --LL 42 01/22/19 5279-008-040 2000 Falling Leaf Ave $865,500 43 02/14/19 8593-026-015 3738 Temple City Blvd — $1,02.0,000 44 01/25/19 8595-013-009 3022 Sullivan Ave .$1,102,000 45 01/22/19 5391-015-050 4134 Rosemead Blvd $1;200,000 Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) In addition to HOME to provide affordable housing, Rosemead implements the goals, objectives, and policies of the City's Housing Element by creating the incentive of density bonuses to developers that provide housing units affordable to low to moderate income households. A density bonus is allowed in development with five or more units, excluding density bonus units. The new mixed-use project at the intersection of Garvey Avenue and Earle Avenue will allow for 20%o f 35 apartments to be low-income with the City's density bonus. Annual Action Plan 2019 CMB Control No: 2506-0317 (exp: 06/30/2020) 41 AP -60 Public Housing -91.220(h) Introduction There are no public housing projects in the City. The City works with the Housing Authority of the County of Los Angeles who provides rental assistance to the residents of Rosemead through the Federal Section 8 Voucher program. The primary objective of this program is to assist low- income (0 to 50% of MFI) persons and households in making rents affordable. There is currently a lengthy waiting list for the Section 8 Program with the average wait from seven to ten years, if not longer. Each applicant is selected from the waiting list in sequence, based upon date of preliminary application and Voucher availability. As shown below, there are four (4) housing developments that have received mortgage assistance with the help of Federal, State, or local funds. Angelus Senior Apartments -The Angelus Senior Apartment was completed in 1995 and is owned by the Rosemead Housing Development Corporation. It consists of 51 one -bedroom units. The term of the lease is for 55 -years from the effective date of the Development Agreement between the City of Rosemead and the Rosemead Housing Development Corporation or until February 7, 2050. To qualify for this complex a person must be 62 years of age or older and must income qualify: The maximum income is 40% of the area median income adjusted for household size. The income limits are reviewed every year and are subject to change without prior notice. Risk of Conversion: The risk of conversion will not be an issue during the next five years of the Consolidated Plan. As mentioned earlier, the earliest possible conversion date for the Angeles Senior Apartment is February 7, 2050. Garvey Senior Apartments - The Garvey Senior Apartment was completed in 2002 and is owned by the Rosemead Housing Development Corporation. It consists of 64 one -bedrooms and 8 two bedrooms. The term of the lease is for 55 -years from the effective date of the Development Agreement between the Rosemead Community Development Commission, the City of Rosemead, and the Rosemead Housing Development Corporation or until October 30, 2057. To qualify for this complex a person must be 62 years of age or older and must income qualify. The maximum income is 40% of the area median income adjusted for household size. The income limits are reviewed every year and are subject to change without prior notice. Risk of Conversion: The risk of conversion will not bean issue during the next five years of the Consolidated Plan. As mentioned earlier, the earliest possible conversion date for the Garvey Senior Apartment is October 30, 2057. Two (2) 3 -Bedroom Single Family Homes - In FY 2007-08 and FY 2010-11, the City entered into Annual Action Plan 42 2019 DMB Control No: 2506-0217 (exp. 06/30/2020) agreements with Rio Hondo Community Development Corporation (RHCDC) for the production of affordable housing using the 15% CHDO set-aside funding as required under the HOME entitlement grant. As a result, the City approved two (2) separate 0% deferred payment loans for the purchase of two (2) three-bedroom rental property in Rosemead. Both properties are restricted as rental property for low- to moderate -income households and are subject to a 55 -year affordability covenant until May 2063 and March 2066, respectively. Actions planned during the next year to address the needs to public housing As mentioned in the Introduction to this section, the City works closely with the Housing Authority of the County of Los Angeles who provides rental assistance to the residents of Rosemead through the Federal Section 8 Voucher program. In addition, the City coordinates with and funds public service providers that provide homeless families in the region with shelter and food, while helping them find work, housing and regain and sustain their independence. Actions to encourage public housing residents to become more involved in management and participate in homeownership N/A If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or. other assistance N/A Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 43 AP -65 Homeless and Other Special Needs Activities — 91.220(i) Introduction Given the limited resources and small amount of homeless in the City of Rosemead, homeless activities have been given a low priority in the 2015-2019 Consolidated Plan and subsequent annual action plans. The City is relying on coordinated efforts with the Los Angeles Homeless Services Authority (LAHSA) to provide shelter opportunities; the East San Gabriel Valley Coalition for the Homeless to provide information, counseling, and referral services to homeless persons that reside in Rosemead; Family Promise of San Gabriel Valley to provide emergency shelter services and social services for families with children; as well as other local agencies in providing services for homeless persons. Everyyear, LAHSA conducts a census of the homeless population through the Greater Los Angeles Homeless Count. To understand the level of homelessness in the City, on January 23, 2019, volunteers participated in the homeless count for Rosemead. The count reported 25 unsheltered persons, 2 living in cars, 3 living in vans, 3 in campers or recreational vehicles (RVs), 2 living in tents, and 3 living in makeshift shelters. The amount of homeless in 2019 has decreased from the amount in 2018. The homeless count for the City of Rosemead in 2018 revealed 81 unsheltered and zero sheltered persons. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City. will work with the above agencies to reach out to homeless persons and assess their individual needs. As mentioned above, the City is in close coordination with the Los Angeles Homeless Services Authority (LAHSA). To facilitate regional coordination for homeless needs, Los Angeles County is divided into eight Service Planning Areas (SPAS), 1 through 8. The division of the County allows the Department of Public Health to target and track the needs of each area. The City of Rosemead is in SPA 7. Every year, the Los Angeles Continuum of Care coordinates a Shelter/ Housing Inventory Count (HIC) and a point -in -time (PIT) inventory of service projects within the Los Angeles Continuum of Care. The HIC records how many beds and units are dedicated to serving the homeless, as well as a record of utilization of services on the night of the count. Family Promise is an emergency shelter for the homeless families with children located in the City of Rosemead. Family Promise is in SPA 7. The PIT count at Family Promise for 2018 reported 14 as the number of beds for households with children and 4 as the number of units for households with children; the population of homeless persons in the program on the night of the homeless count was 10, the Annual Action Plan 44 2019 OMB Control No: 2506-01 7 (exp. 06/30/2020) percentage of total beds that were in use on the night of the homeless count was 71%, and the percentage of total units that were in use on the night of the Homeless Count was 75%. The utilization rates revealed there is availability of accommodations, however it may not always be used to capacity. Amounts for 2019 will be released later this year. Addressing the emergency shelter and transitional housing needs of homeless persons. The City provides an annual allocation of CDBG funds toward the operation of Family Promise of San Gabriel Valley, a homeless shelter for families with children located in the City of Rosemead. This year the City expects this investment of CDBG funds will benefit 5 families. The City will also work with LAHSA and the East San Gabriel Valley Coalition for the Homeless. to address emergency shelter and transitional housing needs of homeless persons Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again and a record of utilization of services. As stated above, the City is relying on coordinated efforts with LAHSA, the East San Gabriel Valley Coalition for the Homeless, and Family Promise of San Gabriel Valley to make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address Dousing, health, social services, employment, education, or youth needs. In addition to the agencies above, the City will continue to seek and work with local nonprofit agencies who provide emergency food, clothing, and referral services to low-income Rosemead Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 45 residents; many of which are homeless or at -risk of homelessness Annual Action Plan 2019 OMB Control No: 2506-03.17 (exp. 06/30/2020) 46 AP -75 Barriers to affordable housing — 91.220(j) Introduction: The City of Rosemead is committed to addressing the negative effects of public policies over which it has control. In order to promote integration and prevent low-income concentrations, the City designed its affordable housing programs to be available Citywide. This priority also serves to make sure that the City does not have any policies, rules, or regulations that would lead to minority or racial concentrations. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Over the years, Rosemead has demonstrated a willingness to encourage housing development of all types. It has approved several zone changes and Code amendments to allow for development of a variety of housing types, including those that benefit low and moderate - income people. It also makes an effort to fast-track projects and process permits in a timely manner. The City maintains its current posture of openness and willingness to entertain new ideas and eliminate any regulatory barriers under its control in the provision of a variety of housing to meet the needs of all income groups. As mentioned, Rosemead has incorporated density bonuses into its Zoning Ordinance to incentivize developers to provide housing units affordable to low to moderate income households by allowing higher densities in zoning districts otherwise zoned for lower densities. Other zoning now allows for transitional housing in all residential districts. Emergency shelters are now permitted in light industrial areas of the City. The mentioned zoning is a recent change to the City's Zoning Ordinance and is an of example of one of the City's efforts to lift barriers to housing that is affordable to persons with low to moderate incomes. In addition, the City continues to work cooperatively within existing legislatively mandated constraints and worked to develop and/or encourage public policies that foster further affordable housing development and assistance. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 47 AP -85 Other Actions — 91.220(k) Introduction: The City of Rosemead plans to undertake additional actions throughout to further address obstacles to meeting underserved needs, fostering and maintaining affordable housing, reducing the number of poverty level families, and removing barriers to affordable housing. Actions planned to address obstacles to meeting underserved needs The City of Rosemead faces a number of potential obstacles in meeting affordable housing and community development needs and underserved needs through the CDBG and HOME program which includes lack of affordable land for housing development, funding constraints to address community development needs, and continued reductions for CDBG, HOME; and other federal funding sources in each fiscal year. The City will continue to look for non-traditional ways to develop affordable housing units and meet community development needs; work to combine funding sources and leverage private funds to develop affordable housing; and, to work with the federal government to ensure that sufficient funding continues in order to meet needs. Actions planned to foster and maintain affordable housing The City of Rosemead will foster and maintain affordable rental and owner -occupied housing through the different programs funded with CDBG and HOME funds. Successful implementation of these efforts relies on the collaborative effort of many community partners including public agencies, government, housing developers, non-profit agencies, and neighborhoods. The City will use its own City newsletter and website, as well as community events to promote these services, and to promote its housing and community service programs. Actions planned to reduce lead-based paint hazards As of FY 2001-02, the City of Rosemead began implementing the new HUD Lead Based Paint Regulations (Title X), which requires all federally assisted housing programs, including rehabilitation, homeownership, and tenant -based subsidy systems, to address lead hazards. The City will continue its program of education and eradication of lead-based paint through the operation of its Owner -Occupied Rehabilitation Programs and Down Payment Assistance Loan Program. These two programs provided assistance to low-income homeowners; the target Annual Action Plan 2019 OMB Control No: 2506-0177 (exp. 06/30/2020) 48 groups most likely to be living in older housing with lead-based paint. The City has procured the service of a State Certified Lead Consultant to provide the following: • Lead-based paint and soil inspection • Lead-based paint risk assessment • Lead-based paint hazard reduction monitoring • Post -hazard reduction clearance test Under the Owner -Occupied Rehabilitation Programs, the City will continue to provide each owner who participates with both oral and written information regarding the dangers of lead- based paint and what to do about it. Owners of properties constructed prior to 1978 will be required to meet certain lead-based paint requirements prior to being assisted. These requirements include the following: • Distribution of lead-based paint notification pamphlets to all households occupying assisted units. • Inspection of all properties for defective paint surfaces. • Abatement of all defective paint surfaces identified at the time of the inspection. Through the Owner -Occupied Rehabilitation Programs, financial assistance will be provided to eradicate the problem. Full abatement will be undertaken in all rehabilitation projects over $25,000. It is the responsibility of the City's Housing Coordinator to ensure that properties constructed prior to 1978 meet the lead-based paint requirements and any abatement of defective paint surfaces are completed by contractors certified by the State of California Department of Health Services. A copy of the contractor's certification is kept on file. The Down Payment Assistance Loan Program will also provide participants with oral and written information regarding the dangers of lead-based paint. The selected units will undergo a Housing Quality Standards (HQS) inspection that checks for danger of lead-based paint and will require any peeling, cracking, flaking, paint and/or chewable surfaces to be properly treated. The City personnel responsible for conducting the visual inspection of the units for HQS compliance have completed the Visual Assessment Course and received the proper course completion certification. In addition, the City requires clearance for all properties that fail an HQS inspection due to chipping, peeling, cracking surfaces greater than 2 sq. ft. on the interior and 20 sq. ft. on the exterior of the unit or in common areas. A risk assessment will be required to be completed by a certified risk assessor whenever the City is notified that a child with an environmental Annual Action Plan 49 2019 OMB Control No: 2505-0117 (exp. 06/30/2020) intervention blood lead level (FIB) plans to live in a unit under the Down Payment Assistance Loan Program. Actions planned to reduce the number of poverty -level families The City has established goals and policies designed to improve the local economy and reduce the level of poverty within the community. The strategy is outlined in the following sections. Housing and Community Development • Angelus/Garvey Senior Housing— rental assistance for seniors • Dial -A -Ride - transportation service for seniors and disabled • Down Payment Assistance Program -- purchase of first home • Fair Housing Services - landlord/tenant information and assistance • Family Promise — homeless services for families • Garvey Community Center/Rosemead Community Recreation Center - variety of services including counseling services, social service programs, recreational programs, and information and referral services • Housing Authority County of Los Angeles County — rental assistance • Merci - supported employment and living, independent living, and community inclusion services for those. with severe to profound developmental disabilities • Owner -Occupied Rehabilitation Programs - rehabilitation of home • Senior Nutrition Program - nutritious meals • Vintage California Mission Inn -assisted Living facility. for seniors and. disabled • YMCA of West San Gabriel Valley — variety of services including child care, after-school enrichment, youth leadership and development, mentoring and tutoring, youth and adult sports, fitness, camping, and family support activities • YWCA— Wings -emergency shelter for women and children Economic Development - The City provides the Commercial Fagade Improvement Program to support activities that promote economic development including the Business Attraction/Retention Program. Through this program, the City attracts new businesses. as well as retaining the current businesses within Rosemead. Low Income Housing Tax Credit Coordination (LIHTC) - Currently, the City uses CDBG funds a.nd HOME funds for affordable housing development. The City has participated in one tax credit development project. The City has a HOME -funded development fund. As part of that, there may be additional opportunities to use the Low-income Housing Tax Credit funds. In order to Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 50 coordinate and assess the need of tax credits for the development of a housing project, the Housing Division staff will work with developers and non-profit agency's pro forma, serve as part of the team developing tax credit financing and will calculate the financing gap, along with the maximum and minimum subsidies. This will ensure that the City's HOME coordination will meet HOME requirements for the L1HTC program. Actions planned to develop institutional structure The City of Rosemead is governed by a five -member City Council. The City Council reviews, holds hearings, approves.the funding priorities, and approvesthe submission of the Action Plan to HUD, The City's Community Development Department is the lead agency in the coordination of the Action Plan. It coordinates the economic activities, develops and implements the programs that rehabilitate and preserve the neighborhoods, develops and rehabilitates affordable housing, and provides rental assistance to. the very low-income and special -needs segments of the City's population. While the Community Development Department has the major responsibility for the Action Plan budgeting, project formulation, and program implementation, other City departments, government agencies, social service agencies, and Rosemead residents play an important role. There are several inter -departmental programs, primarily in the area of neighborhood quality of life that are composed of a wide variety of City agencies. All are funded through the CDBG or HOME as a funding source; but in many cases, departmental funds and other funding augment and leverage Action Plan Resources. Guidelines for expenditure of CDBG and HOME funds are provided as needed or when changes to programs occur. Periodically, the Community Development Department provides departments and City -related agencies with training in HUD grant regulations. There are many organizations that actively collaborate in the areas of housing, homeless services, and community and economic development, and coordinate closely in both the preparation and implementation of the Action Plan. The City, for its part, will promote and encourage fair housing, housing assistance, and. single-family home rehabilitation. One of the biggest challenges facing the City is the lack of or ever -decreasing amount of funds available in maintaining and furthering housing and community development goals.In addition, foundation giving is declining. A related challenge is the need for better coordination and cooperation between the City and social service and health providers. For homeless activities, a seamless approach to provision of transitional and permanent housing services requires that such providers be actively involved in each facet of the Continuum of Care. However, other Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 51 housing activities, such as rehabilitation, demolition of abandoned or hazardous units, acquisition of sites for potential single family and multifamily affordable housing, home ownership assistance, and new construction need to be integrated within the social service and health provider community as well. The key to a strong institutional structure is the ability to develop and share data on the progress and status of beneficiaries through the development of integrated information systems. There are now several data information systems in place that, to various degrees, track the progress of a variety of beneficiaries from initial intake, through provision of services, and to completion of participation Institutions playing a major role in delivery of community development programs often have different mandates, and consequently different priorities and strategies to achieve them. These mandates are most often imposed by Congress and reflected through the regulations of federal funding agencies. In several cases, goals may overlap or conflict. Actions planned to enhance coordination between public and private housing and social service agencies The City will carry out.this Action Plan through various organizations including a number of social service agencies funded through CDBG grant funds (Family Promise, Morrison Health Care - Senior Nutrition Provider, and Southern California Housing Rights). In addition, various City departments will work togetherto achieve the goals of this Action Plan, including the Community Development Department, Public Works Division and the Finance Department. The City also works with the State, other local governments (County. of Los Angeles), private industry construction contractors, non-profit organizations and social service providers .to provide community, housing, and social service programs and projects. The City is committed to extend and strengthen partnerships among all levels of government and the private sector, including for-profit and non-profit organizations. The means of cooperation and coordination with these various groups will continue to enhance the services provided to our residents. Discussion: While the primary actors in the Action Plan process is the City Council, and the Community Development Department, there are a significant number of City agencies and.departments that oversee a wide variety of grants and programs that provide services to low and moderate -income Annual Action Plan 52 2019 OMB Control No: 2506-0117 (exp. 06/30/2020 City residents and play an important role in implementing the Action Plan as mentioned above. Annual Action Plan 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) 53 Program Specific Requirements AP -90 Program Specific Requirements — 91.220(1)(1,2,4) Introduction: Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(1)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0 5. The amount of income from float -funded activities 0 Total Program Income: 0 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 75.00% Annual Action Plan 2019 OMB control No: 2506-0117 (exp, 06/30/2020) 54 HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(1)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: The City of Rosemead does not use atypical loans or grant instruments of non -conforming loan guarantees. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: HOME regulation 24 CFR 92.254, Section (B)(ii) requires that the participating jurisdiction recoups all or a portion of the HOME assistance to the homebuyers if the housing does not continue to be the "principal residence" of the family for the duration for the period of affordability, which is 15 years. In accordance with the requirement, the City of Rosemead has adopted the policy of repayment (also known as "recapture") of HOME funds lent (i.e. direct subsidy - which is defined as the amount of HOME assistance provided that enable the homebuyer to buy the unit). The City limits the amount to be recaptured to the net proceeds available from the sale. The net proceeds are the sales price minus loan repayment (not including HOME funds) and closing costs. This limitation applies to all units regardless of the nature of the sale (voluntary sales including short sales, and involuntary sales including foreclosures), or if the unit is found not to be the "principal residence" of the applicant. If the home is sold or is not the "principal residence" of the applicant during the first 10 years of the 15 -year affordability period, the City will charge an interest rate (simple interest) penalty to be collected along with the principal amount of HOME funds based on the amount of HOME funds. This will be limited to net proceeds. This interest rate penalty, which is at 5% during the first two years and declines by a % percent every full year after is calculated as follows: Program loan x applicable interest rate (which is based on year of sale/year the unit was no longer the applicants "primary resident"). For example, if the home is sold in year 5, the interest rate would be calculated by multiplying the program loan x 3%. If the HOME is sold a day after year 10 of the affordability period, there would be no interest rate due to the City. In addition, if the home is sold or is not the "principal resident" of the applicant before the end of the 15 -year affordability period and there is appreciation in the property value, then an equity share is required based on the following formula: Equity Share formula: (Program Loan / (Purchase Price + Qualified Capital Improvements) xTotal Appreciation. This amount is the portion of the appreciation that must be provided to the City and the remaining amount goes to the homeowner. If after 15 years, the housing is still the "principal resident" Annual Action Plan 55 2019 OMB Control No: 2506-0117 (exp. 06/30/2020) of the applicant, then the covenant regarding the equity share will be removed. If at anytime the applicant ceases to occupy the home, then the loan will become due. Annually, each applicant is sent a self -certification form that must be completed certifying the home continues to be the applicants "primary resident". In addition to this form, the applicant must provide proof of residency (i.e. utility bill, car insurance, tax returns, etc.). 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92,254(a)(4) are as follows: See above. 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: N/A The City of Rosemead proactivity advertises the Owner -Occupied Rehabilitation Loan program and First Time Homebuyer program on its website (www.cityofrose mead. org), through the Parks and Recreation brochure (which is published three times a year and mailed in the fall, winter/spring, and summer), press releases, and marketing material that is available at Rosemead facilities open to the public. In addition, Community Development staff works closely with Code Enforcement staff in making field visits to homes that have a code, building, or health & safety violations, Applications for either program can be accessed through the City's website or by visiting City Hall. All Owner -Occupied Rehabilitation Loan applications and First Time Homebuyer applications are submitted to the City's Community Development Department, Housing Division.and placed on a waiting list on a first-come, first-served basis. The waiting list is maintained by date. When funds become available applicants are selected from the tap of the waiting list. Each time a group of applications are selected from the waiting list, processing priority will be given only under the Owner -Occupied Rehabilitation Loan program to applicants who have been deemed by the Public Safety Department as having code, building, or health & safety violations that require immediate assistance. Annual Action Plan 2019 0MB Control No: 2506-0117 (exp. 06/30/2020) 56