HomeMy WebLinkAbout2013/03/19 Item 15CITY COUNCIL
AGENDA STATEMENT
~~(~~ CITY OF
'''~" CHULA VISTA
March 19, 2013 Item ~5
ITEM TITLE: PUBLIC HEARING TO REVIEW THE CITY OF CHULA
VISTA 2013/2014 FUNDING REQUESTS AND
RECOMMENDATIONS FOR THE HOUSING AND URBAN
DEVELOPMENT FEDERAL GRANT PROGRAMS
(COMMUNITY DEVELOPMENT BLOCK-GRANT, HOME
INVESTMENT PARTNERSHIP PROGRAM AND
EMERGENCY SOLUTIONS GRANT)
SUBMITTED BY: ASSISTANT CITY MANAGER DEVELOPMENT
SERVICES DIRECTOR
REVIEWED BY: CITY MANAGER
4/STHS VOTE: YES ~ NO X^
SUMMARY
The City has received and reviewed funding applications for the following U.S. Department
of Housing and Urban Development (HUD) grant programs: Community Development
Block Grant (CDBG), HOME Investment Partnerships Act (HOME) and the Emergency
Solutions Grant (ESG) funds. This Public Hearing will provide the community an
opportunity to provide input on the proposed 2013/2014 funding recommendations for the
City's use of these federal grant programs.
ENVIRONMENTAL REVIEW
At this time, no action is requested to fund specific activities; therefore, no environmental
review is necessary. Upon Council approval of activities to be funded, the Environmental
Review Coordinator will review the proposed activities for compliance with the National
Environmental Protection Act (NEPA) and will determine the environmental review
necessary for each individual project.
RECOMMENDATION
That the City Council conduct the public hearing to solicit input from the community on the
2013/2014 funding recommendations and provide staff with changes, if any, in the
recommended funding amounts.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
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March 19, 2013, Item ~ S
Page 2 of 9
DISCUSSION
As an entitlement community with the U.S. Department of Housing and Urban Development
(HUD), the City receives funds under three block grant programs:
• Community Development Block Grant (CDBG)
• Home Investment Partnerships (HOME)
• Emergency Solutions Grant (ESG)
The grant amounts allocated to each jurisdiction are determined using a formula based on
statistical and demographic data. The funds aim to provide decent housing, a suitable living
environment, and to expand economic opportunities principally for low- and moderate-
income persons.
Five Year Consolidated Plan
As a recipient of these HUD funds, the City is required to approve aFive-Yeaz Consolidated
Plan which represents the City's five-yeaz strategy for allocating HUD funds to specific
goals, objectives, and housing and community development priorities. The City annually
selects activities for funding that best meet the needs of the community as identified
within the Consolidated Plan and also meet the national objectives and requirements
of the CDBG program. This annual selection of activities is submitted to HUD as the
City's Annual Action Plan and constitutes its application for the grant funds.
The City's 2010/2015 Five-Year Consolidated Plan identifies a total of six housing and
community development priorities.
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2. Maintenance and. • Rehabilitation Loan Program (Health
Preservation of Existing and Safety Related and/or Energy
L Infrastructure • ADA Curb/Cut and Sidewalks
• Public Services for Seniors, Youth,
3. Special Needs and Homeless Disabled, Homeless and Low/Income
Individuals
March 19, 2013, Item 15
Page 3 of 9
2013/2014 Annual Action Plan
On November 6, 2012 the City held a public hearing to kick off the Annual Action Plan for
the upcoming 2013/2014 fiscal yeaz (FY) and to discuss any change in funding priorities. At
this hearing, staff advised Council that the final allocation amount had not yet been provided
by HiJD.
On Mazch 1, 2013 a sequestration order was issued, affecting the CDBG, HOME and ESG
programs. Based on initial analysis, we aze anticipating a five percent (5%) reduction from
prior year funding levels. Based on the recent reductions, staff anticipates the following
entitlement amounts.
The following table demonstrates the fluctuation of grant funds within the last five years.
The CDBG grant has steadily decreased by approximately 5% each year, with the
exception of 2010. The HOME program received a 50% reduction from 2009 to
2013. However, ESG has seen a slight increase due to changes to the ESG federal
regulations.
$2soo,ooo
$2,000,000
X1,559.985 tCD6G
$1,500,000
-I-HOME
$1,00',225
$1,000,000 '.
~•-ESG
~~_~ 1. i 06
$SOO,ooo -
$S%,S'.•9 _ $144,215 -'
~.
2009 3010 2011 301' 2013
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CDBG ~ 1,55 `J,Y55
HOME ' $ 561,269
ESG _ $ ...149,215
Mazch 19, 2013, Item IS
Page 4 of 9
In addition to the entitlement amounts, $179,881 of unencumbered funds aze also available.
Unencumbered funds are balances from completed or cancelled prior year project.
Each yeaz the City undertakes a process to solicit requests for grant funding, review the
submitted proposals, and approve the programs and projects to be funded. This yeaz, funding
applications for the three grant programs (CDBG, HOME, and ESG) were made available to all
interested organizations and City departments in December 2012, with a submittal deadline of
January 31S`. All applicants were advised of the estimated cuts to the grant programs and its
impact on funding requests. A copy of all applications received is on file in the City Clerk's
office, referred to as the "2013/2014 Federal Grant Funding Application Notebook".
Staff has completed its review of the applications and has made available its funding
recommendations to applicants. A public meeting was held on Mazch 14a' to solicit feedback
on the recommendations.
Community Development Block Grant (CDBG)
In order to be eligible for this block grant funding, a project must address at least one of the
following CDBG national objectives:
• Benefit primarily low and moderate income families;
• Aid in the prevention or elimination of slums or blight; and,
• Meet other community needs having a major emergency (disasters, etc.)
The City will utilize $1,739,866 of CDBG funds ($1,559,985 entitlement and $179,881
unencumbered funds) for FY 2013/2014. Funding is allocated into 3 distinct functions: 1)
Administration and Planning; 2) Public Service; and, 3) Capital Improvement and Facilities.
In accordance with the federal regulations governing this program, the City cannot exceed the
mandated spending caps for administration and planning (20%) and public service (15%)
activities.
.. „.~...
• Staff costs associated with the management and ailministrati
$311,997 the CDBG program
• Mandatory fair housing services
• Contractual homeless adininistrafive services ;
May include but aze not limited to employment services; chi
$230,412 caze, health services, substance abuse services, welfaze and
recreation needs. Funding recommendations aze based on a
Council approved methodology tier system:
lines and flood/drainage.improvements.
Repayment of Section 108 Loan
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March 19, 2013, Item ~S
Page 5 of 9
Administration and Planning Recommendation:
The estimated $311,997 in available funds is recommended to cover all staff costs associated
with the management and administration of Chula Vista's CDBG program, including
preparation of all planning documents, regulatory compliance, contract administration,
monitoring and fiscal management. In addition, a portion of the administration funds will be
used for mandatory fair housing services and contractual homeless administrative services.
Public Services Program Recommendation:
Staff s funding recommendations for public service activities are based on funding priorities
established in the Consolidated Plan, along with established ranking criteria. As discussed at
the November 2012 public hearing, since 2008, staff has implemented ranking criteria, as
described below, to assist in prioritizing and selecting grant recipients. The methodology
classifies each of the activities in the following three-tier categories, with Tier I activities
being the highest ranked:
• Tier I: Basic/Essential Needs (Food, Housing, Emergency Services)
• Tier II: Special Needs (At-Risk Youth, Family Violence, Special Needs/Disabled)
• Tier III: Other (Transportation Services, Case Management, Preventative Health Care
Services, Recreation (non disabled, non emergency services)
A total of eleven (11) public services applications were received by the deadline. All
projects were deemed CDBG eligible. Of the eleven applications received, three were new to
the funding requests.
g..~ r~°~ T3 at 'zx ~l '; t: e f ~cti ~ ~N
~~~'s~,i'~rp r n ~ ,..~,..ti~. u ~l~ .P 4_.v._..~,._ ,~ :~'
I Provides emergency type medical services
to homeless and low-income persons
II Employment opportunities to high-risk
youth
II Services to special needs/disabled
' members of our community-
As noted in the Notice of Funding Availability and at the applicant workshop held on January
15, 2013, applicants were advised of the Tier System and the anticipated 5% reduction in
grant funds.
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March 19, 2013, Item ~ 5
Page 6 of 9
Staff is recommending funding Tier I and II public services projects at the same funding
levels as in FY 2012/2013; and fully funding the requests for the three new
applicants/projects. Due to limited grant funds, funding is not recommended for Tier III
applicants.
1 Intertaith Shelter Rotational Shelter $ $ 10,350
Network Program $11,000 10,350
Sharp Healthcare Hospital Emergency $
3 Foundation Liaison Program $25,000 - $ 25,000
(H.E.L.P.)
v : , ~,ommumry
Services (formerly Thursdays Meal) , $15,000'.. 10,OD0'' $ 10,000
5 Center for
Employment Employment Reentry for $
750
$ 2
Opportunities
~ qt-Risk Young Adults $28,750 - 8
,Chula of Chula Therapeutic Recreation - ' . $ ~
~
_ _
Vista Recreation _.:
Program & Classes
$31,450. .
- S. 31,450
Chula Vista Family Resource Center
7
Community
Assessment and Referral
$40
000 $
39
312
$ 39,312
Collaborative Services , ,
8 South Bay
Community Family Violence ! $
000
$ 34
Services 7reatmentProgram $34,000 34,OOD' ,
9 South Bay
Community Services for At-Risk and $
550
$ 39
Services Homeless Youth $39,550 39,550 ,
City of Chula Vista Norman Park Center $
1D- ,
Recreation - Afternoon and Friday
$37 500 ;
37
500 ' ' $
-
' _ . Services , ,
11 San Diego Family KidCare Express $ $
-
Health Centers $30,000 17,000
~°
Totals
$304,25
$230
412
0 ,
Capital Improvement and Public Facilities Recommendation:
A total of $1,197,457 is available for eligible public facilities improvements and other
community enhancement related activities from the 2013/2014 grant.
The City has earmarked $752,752 for the City's Section 108 debt service payments and
$375,000, which was pre-committed during the 2012/2013 funding cycle for the Third
Avenue Streetscape project. These obligations total $1,127,752, which leaves $69,705 for
new projects. Three funding requests were submitted to the City for consideration and are
summarized below:
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Mazch 19, 2013, Item ~S
Page 7 of 9
• GRID Alternatives proposes a Chula Vista Solaz Affordable Homes Program to provide
solar electric systems for low-income homeowners using a "barn-raising" model that
engages job trainees, community volunteers, and the homeowners themselves. The
program will save the homeowners approximately 75% on their monthly electricity bills.
The requested amount is $15,000.
The Housing Division requests $60,000 in funding for staff costs associated with projects
and programs funded through the HOME program. Examples of services provided
include the following: Energy auditing, preparation of work specifications, reviewing of
applications, loan processing, inspections, tenant selection, and assisting owners, tenants,
contractors, and other entities participating or seeking to participate in housing projects
assisted with the HOME program. This project received funding in 2012/2013.
• Family Health Centers of San Diego submitted a new application for the installation of a
fire hydrant at Rice Elementary as part of the Rice Health Center located on the school
site. Staff is not recommending firnding for this project based upon insufficient funds to
cover the costs of the project.
GRID
Chula Vista Solaz Affordable $ 15,000
Homes Program
15,000
San Diego Family
Health Centers
City of ChulaVista
Engineering
Housing Services $ 6Q1100 $ 50,000 $ .;54,705
RiceBlementary Fve $ 125,000 $ - $ -
Hydrant Project
Section 10$ $ 752,000 $749,057 $ 7S2,7S2
PreCommitment -Third $ 375,000 $ 375,000 $ 375,000
Avenue Streetscape Project
$1,327,000
1,197,457
Home Investment Partnerships Act (HOME)
For FY 2013/2014, the City will receive $543,967 in HOME funds which may be used to
provide affordable rental housing and home ownership opportunities through:
• New construction
• Acquisition
• Rehabilitation
• First time homebuyer assistance
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March 19, 2013, Item IS
Page 8 of 9
Tenant-based rental assistance HOME regulations require cities to set aside 15% of their
annual allocation to assist Community Housing Development Organizations (CHDOs) in the
creation of affordable housing units. The City is currently exceeding this requirement in an
aggregate amount of 33.9%. In consultation with HUD, due to its good standing, the City is
not required to set aside the 15% of its 2013/2014 HOME entitlement.
However, for FY 2013/201, staff is recommending that HOME funds be set-aside for the
production of affordable housing. With the loss of Redevelopment Low and Moderate
Income housing funds, HOME funds are now the City's main funding source for affordable
housing. Increasing housing that is restricted and affordable for lower income households
remains a priority for the City.
Emergency Solutions Grant (ESG)
Chula Vista is anticipating ESG entitlement funds in the amount of $149,215 for FY
2013/2014. This represents a five percent (5%) decrease from 2012/2013. ESG funds may
be used to provide homeless services through:
• Street Outreach
• Emergency Shelter
• Homeless Prevention
• Rapid Re-Housing
• Homeless Management Information Systems
HUD recently revised ESG eligible activities and requires that the City earmark no less than
40% of the funding for Homeless Prevention and Rapid Re-Housing. The remainder of the
funds could be used for the other four activities. The City received one proposal from South
Bay Community Services, a local homeless service provider, for their emergency shelter.
Staff is recommending funding South Bay Community Services $78,338. This is consistent
with staff s recommendations to keep non-profit public services projects at the same level as
in prior years. Consistent with HUD requirements, the remaining funds will be earmarked for
Homeless Prevention and Rapid Re-Housing Services, to be administered by City staff and
costs associated with homeless management information systems.
Conclusion
Staff recommends that the City Council conduct the public hearing to solicit input from the
community on the 2013/2014 funding recommendations and provide staff with changes, if
any, in the recommended funding amounts. Staff will incorporate these recommendations in
the Annual Action Plan. The Plan will be available fora 30-day review and comment period
from March 26, 2013 to April 26, 2013. Materials will also be posted on the City's website.
Staff will incorporate all public comments received by the deadline and submit the. Annual
Action PIan to HUD by May 14, 2013.
DECISION MAKER CONFLICT
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March 19, 2013, Item l S
Page 9 of 9
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 awaze, 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
The City will allocate federal grant funds from the U.S. Department of Housing and Urban
Development for the CDBG, HOME and ESG grant programs. These funds will be used to
provide public services, housing services, capital improvement projects, production of
affordable housing, and aid the homeless. There is no financial impact to the City's General
Fund as project and staff costs are covered by the grants. Appropriations will be included as
part of the City Manager's 2013/2014 proposed budget.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund as project and staff costs aze
covered by the grants.
ATTACHMENTS
Attachment 1:2013/2014 Federal Grant Funding Application Notebook
(Due to its size, Attachment 1 is on file in the City Clerk's office)
Prepared by: Development Service Department -Housing Division
Angelica Davis, Project Coordinator ZI
Jose Dorado, Project Coordinator I!
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