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HomeMy WebLinkAbout2013/02/12 Item 06CITY COUNCIL AGENDA STATEMENT ..----. ~ ~`vi ~ "'~'CHULAVISTA FEBRUARY 12, 2013 Item ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING (1) AN AMENDMENT TO THE FISCAL YEAR 2012/2013 HUD ANNUAL ACTION PLAN TO REPROGRAM $244,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO THE COMMi_INITY HOUSING IMPROVEMENT PROGRAM (CHIP) AND (2) APPROPRIATING $244,000 TO THE CHIP PROGRAM SUBMITTED BY: ASSISTANT CITY MANAGER /DEVELOPMENT SERVICES DIRECTOR ~ ~-G.y REVIEWED BY: CITY MANAGER ~ ~m ,JpS 4/STHS VOTE: YES ~X NO SUMMARY This item will amend the 2012/2013 Annual Action Plan to allocate unencumbered Community Development Block Grant (CDBG) funds to the Community Housing Improvement Program (CHIP) and appropriate the funds in the current fiscal year budget. ENVIRONMENTAL REVIEW The Envirommental 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 environmental review or documentation is necessary at this time. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 6-1 FEBRUARY 12, 2013 Item__~ Page 2 of 3 DISCUSSION On an annual basis staff prepares a reconciliation of its Community Development Block Grant Funds. This practice identifies unencumbered CDBG funds that resulted from closed projects/programs and any program income generated from loan payoffs and assessment district payments. This yeaz's reconciliation identified a total of $244,000 as being available to fund an eligible CDBG project. The funds may only be used on capital improvement projects and/or housing related activities that meet the City's Five Year Consolidated Plan Goals and Objectives. To date, the City has met and exceeded its Capital Improvement and Public Service Goals (refer to Performance Measurement Table, Attachment 2). However, due to a lack of funding for housing activities under CDBG, we have been unable to fulfill our housing goals. The funds are not available for public service and/or administration activities, as the City has already funded the maximum allotted for these activities for FY 2012/2013 At the May 2012 Council meeting direction was provided to staff to return if any available CDBG funding became available that could be allocated to the CHIP program. The CHIP program has assisted many households since the 1970s to make health and safety related repairs to residents homes. Unfortunately, the number of households benefitting from this program has decreased significantly, assisting only 17 households from 2010-2013. The CHIP program is currently out of program funds and a waiting list has been created. Staff recommends that the available funds be allocated to the City's CHIP program. Funding the CHIP program will help bring the City into compliance with the consolidated plan and address concerns rasied by the U.S. Department of Housing and Urban Development (HUD) that the City was falling behind on its Decent Housing goal to assist 50 households. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it 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. Staff is not independently aware, nor has staff been informed by any City Councilmember, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT YEAR FISCAL IMPACT Approval of this resolution establishes a new Non-CIP project "CHIP Program 2012/13" and authorizes an appropriation from available CDBG grant funds in the amount of $244,000 to this project. 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 is no ongoing fiscal impact as this is a one-time grant appropriation to the CHIP Program. Prepared by: Angelica Davis, Grants/ Housing Project Coordinator II, Development Services Department 6-2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING (1) AN AMENDMENT TO THE FISCAL YEAR 2012/2013 HUD ANNUAL ACTION PLAN TO REPROGRAM $244,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO THE COMMUNITY HOUSING IMPROVEMENT PROGRAM (CHIP) (2) APPROPRIATE COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS EV THE AMOUNT OF $244,000 TO THE CHIP WHEREAS, on May 1, 2012, the City Council approved submittal of the Community Development Block Grant (CDBG) 2012-2013 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 reprogram and appropriate $244,000 of unencumbered CDBG funds generated through program income to 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 was prepared to reallocate CDBG funds. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES 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 authorizes the following appropriations: a. $244,000 to the Non-CIP projects expenditure category of the CDBG fund for a new Community Housing Improvement Program project from the available fund balance of the CDBG fund; $234,000 to the Other Expenses category and $10,000 to the Supplies and Services category of the CDBG Housing Fund to implement the new CHIP project to be offset by CDBG grant revenues. 6-3 Resolution No. Page 2 Presented by Gary Halbert, AICP; PE Assistant City Manager/Director of Development Services Approved as to form by Glen R. Googins City Attorney 6-4