HomeMy WebLinkAbout2012/11/06 Item 03~.~,-
_ --~-----~°~~ CITY COUNCIL
-~ ~ ~ AGENDA STATEMENT
~~ CITY OF
CHUTAVISTA
NOVEMBER 6, 2012, Item 3
ITEM TITLE: RESOLUTION OF TFIE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING (1) AN AMENDMENT TO
THE FISCAL YEAR 2012/20li HUD ANNUAL ACTION
PLAN TO REPROGRAM $357,000 OF COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS TO TWO
ELIGIBLE PROJECTS; AND (2). _ APPROPRIATE
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
IN THE AMOUNT OF $245,000 TO THE GREEN HOMES
FOR ALL-REHABILITATION AND ENERGY UPGRADE
PROGRAM AND $90,000 TO THE COMMUNITY
HOUSING IMPROVEMENT PROG~R~A/~M (CHIP)
SUBMITTED BY: ASSISTANT CITY MANAGEt~ / DEVELOPMENT
SERVICES DIRECT R "~
REVIEWED BY: CITY MANAGER
4/STHS VOTE: YES ^X NO
SUMMARY•
This item will amend the 2012/2013 Annual Action Plan to allocate unencumbered
Community Development Block Grant funds, including program income generated
through the Section 108 Loan Guarantee Program, to other eligible projects and
appropriate the fiords in the current fiscal year budget.
ENVIRONYIENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed action for compliance
with the National Environmental Protection Act (NEPA) due to the use of Federal funds
and has determined that pursuant to Section 58.30 (b), Subpart D, Title 24 of the Code
Federal Regulations, further review and environmental determination as appropriate, will
be required for each project as it is identified. Thus, no further NEPA envirorunental
review or documentation is necessary at this time.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
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NOVEMBER 6, 2012, Item 3
Page 2 of 3
DISCUSSION
Community Housing Improvement Program (CHIP)
For many years, the Community Housing Improvement Program (CHIP) has provided
financial assistance to low income households, helping them address necessary repairs to
their home. Because of CDBG grant reductions the program was not funded in the
current tscal year. However, City staff indicated that they would return to City Council
if any available CDBG funds were identified mid-year.
After a review of unused CHIP balances, we have determined that there is $68,000 of
CDBG funds already allocated to CHIP in prior years that can be appropriated in the
current fiscal year. These funds are currently allocated through HUD, specifically
designated for this use. In addition, there is $22,000 of CDBG funds from closed out
projects that can be used for the CHIP program bringing the total to $90,000. Staff has
prepared a HUD Action Plan Amendment, as well as a budget amendment for necessary
appropriations in the City's Budget. There are approximately 6 income-eligible
households awaiting assistance from the program.
Green Homes for All-Rehabilitation and Energy Up~?rade Program
In 2006, the City received a HUD Section 108 Loan in the amount of $9.Smillion to
complete infrastructure improvements in the Castle Park Area. Additionally, Assessment
Districts were formed to provide homeowners with Yinancing opportunties to cover their
portion of the cost for the new aprons on their property. Assessment payments are
considered Program Income to the CDBG Fund. Currently, there is $245,000 of Program
Income that can be used for improvements within the same project area. Staff is
proposing this funding be added to a new rehabilitation program entitled the Green
Homes for All-Rehabilitation and Energy Upgrade Program. This program is a
collaboration between the City's Housing Division, Conservation Division; GRID
Alternatives, and the statewide Single-Family Affordable Solar Homes (SASH) provider.
The goal is to leverage the resources provided by the Conservation Division, Grid
Alternatives and SASH with the CDBG rehabilitation program. This program will help
residents reduce their utility costs in addition to making the necessary health and safety
related improvements. Participating residents will receive a streamlined delivery of
energy efficiency upgrades and services available to low and moderate income residents.
In addition, the same area will serve as GRID Alternative's Solarthon 2013 site which is
a volunteer-based solar energy installation event. (Refer to Attachment No. 1 - "Green
Homes for All-Rehabilitation and Energy Upgrade Program Designated Targeted
Areas'').
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that a
portion of the action is not site specific and consequently; the 500-foot rule found in
California Code of Regulations section 18704.2(a)(1) is not applicable to this decision.
However, another action is site specific. Staff has reviewed the property holdings of the
City Council and has found no property holdings within 500 feet of the boundaries of the
property which is the subject of this action.
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NOVEMBER 6, 2012, Item 3
Page 3 of 3
CURRENT YEAR FISCAL IMPACT
This action appropriates $245,000 the fiscal year 2012-13 CDBG Fund and $90.000 to
the CHIP Program in the CDBG Housing Program Fund. There is no fiscal impact to the
City's General Fund as project and staff costs are covered by the grants.
ONGOING FISCAL IMPACT
There are no ongoing fiscal impacts as the program is revenue offset by the grant funds.
Prepared by:
_Angelicn Davis, Grants/ Kousing Project Coordinator II, Development Services Department
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Attachment No. 1
Green Homes for All-Rehabilitation and Energy Upgrade Program
%~ .-
Designated Targeted Areas
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OP THE CITY OF
CHULA VISTA APPROVING (1) AN AMENDMENT TO THE
FISCAL YEAR 2012/2013 HUD ANNUAL ACTION PLAN TO
REALLOCATE $267,000 OF COMMUNITY DEVELOPMENT
BLOCK GRANT FUNDS TO TWO ELIGIBLE PROJECTS;
AND (2) APPROPRIATE COMMUNITY DEVELOPMENT
BLOCK GRANT FUNDS IN THE AMOUNT OF $245,000 TO
THE GREEN HOMES FOR ALL-REHABILITATION AND
ENERGY UPGRADE PROGRAM AND $90,000 TO THE
COMMUNITY HOUSING IMPROVEMENT PROGRAM
(CHIP)
WHEREAS, on May 1, 2012, the City Council approved submittal of the Community
Development Block Grant (CDBG) 2017-2013 Annual Action Plan to the U.S. Department of
Housing and Urban Development (HUD);. and
WHEREAS, the City desires to amend the 2012-2013 Annual Action Plan to reallocate
and appropriate $267,000 of CDBG funds to two housing rehabilitation programs, the Green
Homes for All-Rehabilitation and Energy Upgrade Program and the Community Housing
Improvement Program; and
WHEREAS, Federal regulations governing the HUD grant funds (CDBG, HOME and
ESG) programs state that significant programmatic and funding changes to the Plan constitutes a
Substantial amendment to the Plan; and
WHEREAS, in compliance with HUD regulations, an Action Plan Substantial
Amendment to reallocate CDBG funds requires a 30-day public review and comment period,
which began on October 5, 2012, and ended on November 5, 2012 with rio comments received;
and
NOW, THEREFORE, THE CITY COUNCIL OF THE C[TY OF CHULA VISTA DOF,S
HEREBY RESOLVE as follows:
1) That the City Council of the City of Chula Vista does hereby amend the 2012/2013
Annual Action Plan and authorizes the submission of the Substantial Amendment to the
United States Department of Housing and Urban Development.
2) That the City Council appropriates $245,000 to the Green Homes for All-Rehabilitation
and Energy Upgrade Program and $90,000 to the Community Housing Improvement
Program.
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Resolution No.
Page 2
Presented by
Gary Halbert, AICP, PE
Assistant City Manager/Director of
Development Services
Approved as to form by
G'ens
City Attorney
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