HomeMy WebLinkAboutReso 2000-191 RESOLUTION NO. 2000-191
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (a) APPROV1NG THE CONSOLIDATED
ANNUAL PLAN FOR FISCAL YEAR 2000-2001 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AND HOME
INVESTMENT PARTNERSHIP (HOME) PROGRAM BUDGETS
AND AUTHORIZING TRANSMITTAL OF THE
CONSOLIDATED ANNUAL PLAN TO THE U.S. DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT (HUD); AND (b)
AUTHORIZING REALLOCATION OF $300,000 FROM PRIOR
YEAR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
TO INCORPORATE IN THE FISCAL YEAR 2000-2001
ENTITLEMENT RECEIVED FROM HUD
WHEREAS, the City of Chula Vista has prepared a Consolidated Annual Plan ("Plan") for
Fiscal Year 2000-2001 per HUD Rules and Regulations; and
WHEREAS, the City will receive a 2000-2001 CDBG entitlement of $2,033,000; and
WHEREAS, additional CDBG funds in the amount of $300,000 have been identified from
prior years which will be incorporated into the 2000-2001 entitlement; and
WHEREAS, the City will receive a 2000-2001 HOME entitlement of $846,000; and
WHEREAS, the City has followed its Citizen Participation Plan and held a public heating
on housing and community needs on May 2, 2000, at which public testimony was received and
considered by the City Council with respect to the Plan; and
WHEREAS, the City has determined that all of the proposed activities meet the CDBG
national objectives to benefit primarily low-income households or aid in the elimination of slums
and blight; and
WHEREAS, the City has determined that it is necessary and appropriate to fund special
activities by certain subrecipients to implement neighborhood revitalization and community
economic development projects in order to meet the goals and objectives of the Plan; and
NOW, THEREFORE, BE IT RESOLVED based on the findings above, the City Council of
the City of Chula Vista does hereby: 1) approve of the Consolidated Annual Plan for Fiscal Year
1999-2000 including both the Fiscal Year 1999-2000 Community Development Block Grant
(CDBG) and HOME Investment Partnership (HOME) program budgets; and authorizing transmittal
of the Plan to the U.S. Department of Housing and Urban Development (HUD); and 2) authorize the
reallocation of $300,000 from prior year CDBG funds to incorporate in the 2000-2001 entitlement
received from HUD.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista approves
the Consolidated Annual Plan, a copy of which is attached hereto and incorporated herein as
Attachment A.
Resolution 2000-191
Page 2
BE IT FLIRTHER RESOLVED, that the Community Development Director is authorized
to transmit the Consolidated Annual Plan for FY 2000-200 lto the U.S. Department of Housing and
Urban Development (HUD).
Presented by Approved as to form by
Cbxis Salomone J " . Kaheny ~
Community Development Director
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 13th day of June, 2000, by the following vote:
AYES: Councilmembers: Davis, Moot, Padilla, Salas, and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None _,
ATTEST: Shiri'ey Hort~,~'Mayor
Susan Bigelow, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2000-191 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 13th day of June, 2000.
Executed this 134 day of June, 2000.
Susan Bigelow, City Clerk
EXHIBIT A
CIIY OF
CHULA VISTA
Consolidated Annual Plan
Fiscal Year 2000-01
This Consolidated Annual Plan delineates the City's plans for use of funds during the fiscal year 2000-01.
The Plan describes: A) the resources available for program implementation; B) activity to be undertaken; C)
monitoring; D) homelessness; E) anti-poverty strategy; F) coordination; G) obstacles to underserved needs;
and H) geographic location for expenditure of CDBG funds. This plan is consistent with the priority housing
needs, priority homeless needs, priority special needs populations, and priority non-housing community
development needs listed in the City of Chula Vista's Draft Consolidated Plan for Fiscal Years 2000-2005.
A. HOUSING AND COMMUNITY DE.VELOPMENT RESOURCES
Financing Resources
Financing resources for addressing housing and community development needs are fairly limited for the
- City. To ultimately reach the goals of the City, a variety of resources must be used to achieve each
objective. Table 1 describes the eligible activities of a variety of resources identified in this section. The
limited City resources must be leveraged with additional funds from private and public sources and
programs. Partnerships with banks, nonprofit, and private developers are needed. Achieving these goals
requires community volunteer efforts to raise funds, solicit grants and donate time. The City can facilitate
the use of developers and potential homeowners of tax-exempt financing (bond issuances), low income tax
credits, and other tax credit programs.
The City anticipates using the following federal programs for implementation of the Consolidated Annual
Plan:
Community Development Block Grant (CDBG) - the City is an entitlement City and receives an
annual grant from the federal government. These funds can be used for public facilities, services, or
housing for low income (80% and below the median County income) persons. For FY 2000-01 the
City is expected to receive $2,033,000 in CDBG funds. In addition to the entitlement funds, the City
has identified $300,000 in prior CDBG funds to be reallocated for a total CDBG budget of
$2,333,000.
· HOME Program - the City also receives an annual grant from the HUD program through a
jurisdictionally competitive process. The funds can be used for new housing construction, housing
rehabilitation, rental assistance or to assist first time home buyers. For FY 2000-01 the City is
expected to receive $846,000 in HOME funds.
· Section 8 Rental Assistance - the County of San Diego operates the City's program and will receive
HUD funding for the next five years to provide rental assistance for low income families (50% of
median County income).
I
· Stewart B. McKinney Homeless Act - a variety of programs are available to fund homeless
transitional housing programs and emergency shelters.
· HUD 202 Program - funds are for new construction of senior housing.
· Federal tax exempt housing revenue bonds provide low interest bonds for the acquisition and
construction of low income housing projects.
The City also plans to use funds through the following State or local government programs:
· Redevelopment Agency 20% Set-Aside Program - every year, the City's Redevelopment Agency
sets aside approximately twenty percent of the tax increment revenue it generates from its five
redevelopment project areas to be used for the development and rehabilitation of affordable housing.
· Mortgage Credit Certificate Program - tax credits for first-time home buyers. To date the City has
assisted approximately 170 first-time home buyers. In 1999, the City joined the Regional MCC
Consortium administered from the County of San Diego.
The City supports the application of other entitie~ Within the city for programs which would assist the City
in reaching the goals of the Plan. These programs include Emergency Shelter Grant, Supportive Housing,
Housing for Persons with AIDS, low income housing tax credits, and mortgage revenue bonds. See Table 2:
Support of Applications by Other Entities.
As other programs from the State and Federal government arise during the five year planning period which
will assist the City in reaching the goals and objectives of the Plan, the City will pursue those resources.
Non-Profit Resources
Non-profit housing developers and service providers are a critical resource to the City. The following
developers and service providers are some of the non profits who have been active in the City and play an
important role in the Plan.
· Local Initiative Support Corporation (LISC) - Residential, commercial or mixed-use projects serving
low income persons. L1SC offers non profit capacity building and pre-development grants and
loans.
· California Community Reinvestment Corporation (CCRC) - Provides permanent financing of multi-
family rental and limited equity housing cooperatives.
· South Bay Community Services (SBCS) - Multi-service social service agency and affordable
housing developer working closely with the City on numerous community improvement projects.
For-Profit Resources
· Bank of America - Residential, commercial or mixed-use projects serving low income persons.
Bank of America offers assistance in the form of construction loans and rehabilitation loans.
Table 2
U.S. Department of Housing and Urban Development
CPD Consolidated Plan
Support of Applications by Other Entities Report
Funding Source Support Application
by Other Entities?
A. Formula/Entitlement Programs
ESG y
Public Housing Comprehensive Grant Y
B. Competitive Programs
HOPE 1 y
HOPE 2 y
HOPE 3 Y
ESG y
Supportive Housing y
HOPWA y
Safe Havens y
Rural Homeless Housing y
Section 202 Elderly y
Section 811 Handicapped y
Moderate Rehab SRO Y
Rental Vouchers Y
Rental Certificates Y
Public Housing Development y
Public Housing MROP Y
Public Housing ClAP Y
LIHTC y
City of Chula Vista 9 Annual Plan:
Consolidated Plan One- Year Use of Funds
B. ACTIVITIES TO BE UNDERTAKEN
Table 3: Funding Sources illustrates the City's CDBG and HOME allocations and program income available
for the coming fiscal year. Table 4: Listing of Proposed Projects identifies the projects requesting financial
assistance from the CDBG and HOME programs.
C. MONITORING
Careful evaluation of the housing and public service delivery system can be the most effective tool in
detecting gaps and making appropriate modifications. Chula Vista monitors its subgrantees, conducts in-
house reviews of progress reports and expenditures and performs on-site visits to ensure compliance with
federal regulations. Agreements made with subgrantees encourage uniform reporting to achieve consistent
information on beneficiaries. Technical assistance is provided when necessary.
D. HOMELESSNESS
The City of Chula Vista will continue to support the efforts of South Bay Community Services transitional
and short-term housing projects which assist the homeless and in addition, will fund the following projects to
help the homeless in fiscal year 2000-01:
· Thursday's Meal
· San Diego Regional Task Force on the Homeless
· Lutheran Social Services - Project Hand.
· County of San Diego - Cold Weather Shelter Voucher Program
E. ANTI-POVERTY STRATEGY
As part of the City's Anti-Poverty Strategy, the City will endeavor to integrate social services and housing
activitiesforhouseholdsbelowthepovertyline. These efforts include, butarenot limited to the following:
South Bay Community Services KIDSBIZ Program: This program teaches "at-risk" youths to use
their entrepreneurial skills in a positive way. Teenagers are taught to develop their own business
plans and to run their own business.
Eamed Income Tax Credit Program: SBCS has hired a program coordinator to do outreach and
education to community residents about the Earned Income Tax Credit. This coordinator assists in
qualifying citizens in applying for the tax credit. The goal of this program is to have 200 families
receive the tax credit. Eligible families are working parents with children earning under $23,050 per
year.
· Park Village Apartments: On-site day care and job training services are offered at this very low
income apartment complex.
· Casa Nueva Vida I & II: Residents are required to secure an income and save money for their first
month's rent plus security deposit. They are referred to outside job training agencies for help in
securing a job. Independent living skills are taught in areas of health, nutrition, immunizations,
parenting, and other pertinent issues. Individual and family counseling is also offered.
F. COORDINATION
The City will coordinate and implement its strategies through the following activities:
Activity: Target available CDBG funding to those areas and population exhibiting the greatest need.
Cir/ of Chula Vista 10 Annual Plan:
Consolidated Plan One- Year Use of Funds
Activity: Encourage social service providers to work with developers and CHDOs to provide
"service-enriched housing". Services include health care referrals, financial counseling, and
case management.
Activity: Assist county, state, federal, educational, and private organizations involved in economic
development and job training in targeting their efforts toward those areas of Chula Vista
exhibiting the greatest need.
G. OBSTACLES TO UNDESERVED NEEDS
the City is continuing in its effort to remove obstacles to undeserved needs throughout the community. The
City has made a commitment to budget CDBG funds at the maximum allowable to offer citizens much
needed programs and services in the area of literacy, job training, youth activities, senior services, violence
prevention, and health care assistance for low income families.
H. GEOGRAPHIC AREAS FOR EXPENDITURE OF CDBG FUNDS
The City plans to use CDBG funds in areas of the City where improvements is most needed. Many of the
projects assisted with CDBG are located in the western portion of the city which is also the oldest areas
where infrastructure improvements and revitalization is needed. The City continues to implement ADA
improvements throughout the community as required by federal mandate.
PROPOSED 2000-01 HOME BUDGET
The Federal HOME Investment Partnership Program (HOME) allocated funds by formula directly to state
and local governments to promote affordable housing. Participating jurisdictions are able to provide this
assistance to both for-profit and non-profit housing developers or directly to qualified home buyers or
renters. The assistance may take the form of grants, loans, advances, equity investments, and interest
subsidies.
To date, the City has been allocated $4,800,000 in HOME funds since 1992 when the program was created.
HOME funds may be used to provide affordable rental housing and home ownership opportunities through
new construction, acquisition, rehabilitation, and tenant-based rental assistance. In addition, HOME funds
can be used to fund operational costs for Community Housing Development Organizations (CHDO). A
CHDO is a non-profit, community-based organization that has, or intends to retain, staff with the capacity to
develop affordable housing for the community it serves. Currently, South Bay Community Services is the
only designated CHDO in the City of Chula Vista.
The City is required to provide a 25 percent match for HOME funds used for rental assistance, housing
rehabilitation, and acquisition of standard housing. A 30 percent match is required for new construction.
Some examples of allowable matching contributions would include Redevelopment Agency Low and
Moderate Income Housing Funds, land value (donated or a loan), on and off-site improvements, waiver of
local and state taxes or fees, voluntary labor in connection with site preparation. Ira project exceeds the
required match, the excess credit can be applied to future projects.
Th~ table on the following page delineates the uses of HOME funds for fiscal year 2000-01.
Ci(v of Chula Vista 11 Annual Plan:
Consolidated Plan One- Year Use of Funds
ESTIMATED 2000-01 USE OF HOME FUNDS CITY OF CHULA VISTA 1
Fundin~ I~cqllcnls I~tcc(~lllntclldcd
]:llll(lill~
Staff Administration $84,600
Community Housing Development $126,900
Organization (CHDO)
Affordable Housing Projects $420,000
HUD 203K Program $214,500
TOTAL $846,000
The following is a brief description of the above HOMEactivities being recommended for funding:
Staff Administration
Administrative costs for city staff to oversee the HOME program. These administrative costs represent 10%
of the HOME budget. These costs include staff costs for coordination, accounting, environmental review,
and HUD reporting requirements.
CHDO 15% Set Aside
Per HUD regulations a City is required to set-aside 15% of the annual allocation for Community Housing
Development Organizations (CHDO) to assist the City in development and/or support in providing
affordable housing projects for low and moderate income families. For FY 2000-01, the City of Chula Vista
is setting aside $126,900 for CHDO housing projects. As part of the CHDO 15% Set Aside, $42,150 is
proposed for CHDO operation costs is earmarked for South Bay Community Services, the only organization
in Chula Vista to be designated as a CHDO. Currently, staff is recommending that the City fund their
Community Development Program with $29,735 in Redevelopment Set-Aside funds. By utilizing HOME
funds to fund the SBCS Community Development Program, the City will free up CDBG funds that can be
used for other activities to benefit low and moderate income households. The Community Development
Program has been funded by the City for the past seven years, and during that time have become a well
respected affordable housing producer. Last year this CHDO operation was funded from both CDBG and
HOME funds.
CHDO Monitoring
A careful evaluation of the CHDO delivery system is an effective way to determine the organization is
carrying out the goals and objectives in providing affordable housing. The City of Chula Vista will be
i The City has the option to modify the amounts by category in the future without HUD approval if the
need arises.
--,,
City of Chula Vista 12 Annual Plan:
Consolidated Plan One- Year Use of Funds
monitoring South Bay Community Services in the same manner that it monitors CDBG subrecipients. An
annual financial examination of the organization will be performed along with requiring South Bay
Community service to submit quarterly progress reports. At year end, staff will tour the South Bay
Community Services facility and related projects that were assisted with HOME funds.
Geographic Location for BOME Funds
The City of Chula Vista has committed HOME funds to various projects throughout the city. These projects
are designed to target low and moderate income households at or under 60% of median income. Located at
Industrial and Ada Street is the Trolley Terrace Town home project. This eighteen unit multifamily complex
is located near retail and transportation facilities. The estimated cost of the project is $3.0 million. On April
22, 1999 a grand opening was held by South Bay Community Services. Funds for the project will came
from HOME ($800,000 in prior year funds), Tax Credits ($1.3 million), Bank of America ($500,000), and
Local Initiative Support Corporation - LISC for gap financing.
Barriers to Affordable Bousing
The City has been proactive in developing affordable housing opportunities for low and moderate income
households. Current affordable housing developments include Trolley Terrace (18 units) and Cordova (40
units). The land for Cordova was donated by the developer, the City provided $400,000 from the Low and
Moderate Income Housing Fund, LISC provided gap financing, and tax credits were also be utilized.
The City actively encourages developers to set-aii~te !0% of newly developed units for affordable housing
purposes. The City also strongly supports the County of San Diego's effort as supplying public housing such
as Dorothy Street and L Street. As part of the Housing Element, the City works closely with developers in
negotiating affordable housing agreements which require a 10% unit set-aside for low and moderate income
housing. Five percent for households at or below 80% of median income and 5% for moderate income
- households. Projects that meet this criteria are Salt Creek Ranch ( 131 units), Sunbow II (97 units), and Otay
Ranch (184 units). All these projects are located on the Eastern portion of the city. Low and Moderate
Income Housing Funds have been targeted for these project, however HOME funds could also be used.
Due to the increase price of for-sale housing, the City is developing a down payment assistance program.
Since the down payment and closing costs require a large cash outlay, the transition from rental to for-sale
housing can be a hardship for most low and moderate income households. The City will provide subsidy
funds for the down payment in the form of a loan and will also provide a portion of the closing costs in the
form of a grant.
Maintaining Affordable Housing
In 1968, HUD developed the 236 program that provided both mortgage insurance and mortgage interest
reduction to any for-profit or non-profit developer who agreed to build affordable housing units for families.
Chula Vista has four projects which were HUD financed using the 236 program. Currently, two of these
projects are nearing the expiration of the affordability term. Castle Park Garden Apartments consisting of 62
non-elderly units and Rancho Vista Apartments consisting of 24 non-elderly units. The city is attempting to
preserve these units through a partnership with the apartment owner, lending institutions, and non-profit
organizations.
The City also maintains affordable housing through the Community Housing Improvement Program (CHIP).
The purpose of this program is to assist low income households rehabilitate their existing home. Both
single-family and mobile homes are eligible to receive assistance. Currently, Low and Moderate Income
Housing funds are used to fund this program. For fiscal year 2000-01, the City anticipates assisting 25
households with over $100,000 in grants.
'° Lead-Based Paint
City of Chula Vista 13 Annual Plan:
Consolidated Plan One- Year Use of Funds
The City currently assists homeowners alleviate lead-based paint hazards through the Community Housing
Improvement Program (CHIP). When lead-based paint is discovered through the rehabilitation of the
property, funds are used to remove and dispose of the paint chips and to repaint the house. The City utilizes
the Low and Moderate Income Housing Funds for this purpose. No federal or state funds are used in
conjunction with this program.
Housing Authority
In 1995 the City received HUD certification to operate as a Housing Authority. The focus of the Chula Vista
Housing Authority is on the development of affordable housing through land acquisition, bond indebtedness,
and rehabilitation of the existing housing stock. The Section 108 rental assistance program will continue to
be administered by the County of San Diego. Chula Vista fully supports the County of San Diego in their
application for vouchers.
City Administration
The City can allocate 10% or $84,600 of its HOME funds for administration. These funds will be used for
overall administration and coordination of the HOME Program as well as staff time devoted to individually
HOME-funded projects and programs. HOME funds used for administration do not require a match.
Table 3
U.S. Department of Housing and Urban Development
CPD Coniolidated Plan
Funding Sources
Entitlement Grant (includes reallocated funds) $3,179,000 2
Unprogrammed Prior Year's Income not previously reported $0
Surplus Funds $0
Return of Grant Funds $0
Total Estimated Program Income $0
Total Funding Sources: [ $3,179,000
2 CDBG Entitlement of $2,020,000 including reallocated CDBG funds of $300,000; and HOME funds in
the amount of $846,000 for a total entitlement amount of $3,179,000.
City of Chula Vista 14 Annual Plan:
Consolidated Plan One- Year Use of Funds
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