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Home My WebLink About2013/11/05 Item 21 .�i�:.=.. �_,y�?p,�. - z�-^�`. .- - �--�'r�- CITY COUNCIL .�-- �:<_-�-� �. -Gy�"r�?"`'��' "f' Lx `�- -_�-}� � AGENDA STATEMENT °.�K��>. . � -..�`k3F'" r .� f: ' `4��3. �� 1�� -- �,� CITY OF CHULA VISfA NOVED4BER �. 20li. Item Z� ITEM TITLE: PliBLIC HEARli\�G: PRESEI�TTATION OF THE 2012/20li . COIvSOLIDATED ANNUAL PERFORMAI�'CE AI�'D EVALUATIOI�' REPORT (CAPER) AI�TD SOLICITATION OF I?�'PUT ON FUI�rD12�iG PRIORITIES FOR THE COn�1iTI��ITY DEVELOPMENT BLOCK GRAI�'T (CDBG), H01�4E II�TVESTI�4ENT PARTITERSHIRS PROGRAM (HOME), AlVD EA4ERGEI�'CY SOLUTIONS GRr1i\'T (ESG) 2014/201� PROGRr1A4 YEAR SUBD4ITTED BP: DIRECTOR OF DEVE OPA4EI�'T SERVICES l� REVIE�i'ED B1': GITY A4ANAGE 4/STHS �'OTE: 1'ES � NO �X SU1VL�4ARY As a recipient of U.S. Department of Housine and Urban De��elopment (HUD) erant funds; the City must conduct a public hearing to present and provide the public with ao opportunin� to comment on the year-end (2012/20li) Consolidated Annual Performance and Evaluation Report (CAPER) for the Cin�'s HU� gants, which includes Communih� De��elopment Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emersency Solutions Grant (ESG). This public hearine is also to solicit public input on fundine priorities for the upcoming erant yeaz (2014/201�). ENVIRONAZENTAL REVIE«' The Environmental Revie�r- Coordinator has revie��ed the proposed activity for compliance �oitb the Califomia Environmental Qualit}� Act (CEQA) and National Environmental Policy Act (i�TEPA). The activitv is not a "Projecr' as defined under Section 1�378 of the State CEQA Guidelines because the proposal consists of a reporting action, is not site specifie project and will not result in a potentially significant physical impact on the en��ironment. Therefore; pursuant to Section 1�060(c)(3) of the State CEQA Guidelines the acti��it}� is not a subject to CEQA. linder NEPA; the acti��itq qualifies for a Certification of Exemption pursuant to Title 24, Pan �83�(a)(2)&(3) of the Code of Federal Regulations and pursuant to the U.S. Department of Housing & Urban Development Environmental Guidelines. Thus; no further environmental revie�� is necessarv. RECOD�'IEn�ATION That Council conduct the Public Hearine and accept the ��eaz-end CAPER. 21-1 NOVEMBER �, 20]3, ltem 2� Page 2 of� BOARDS/COMMISSIOn' RECOMMENDATION Not applicable. � DISCUSSION Each year, the Ciry of Chula Vista receives CDBG, HOME and ESG grants from HUD to be used to benefit lower income persons by providing affordable housing opportunities and community development projects and programs. In fiscal year 2013/2014, the City received $2,46�,213 in combined grant funds. Performance Evaluation: HUD requires that the City report its annual performance in implementina its CDBG, HOME, and ESG grants. The City reports its performance using the HUD CAPER; which includes specific financial and performance information for these grant programs. The CAPER also includes a narrative portion, which describes bow the City carried out its housing and community development strategies, projects, and activities during the fiscal year. A copy of the CAPER is included with this report as Attachment 1 and a copy is on file with the City Clerk. � A review of the CAPER sho�n�s that the City: • Expended fund grants in a timely manner; • Funded only HIJD eligible projects; • Pro��ided detailed accomplishment data for all grant-funded projects; and, • Maintained its administration and public service expenditures within the mandated caps. Annual Process for HUD Grant Pro�rams: With the conclusion of the previous program year and implementation of the current year, the City is now focusing on the developme�t of the upcoming 2014/I S program yeaz. This public hearing represents the first opportunity to solicit public iuput on low income housin� and community development needs and funding priorities for the upcoming yeaz (2014/2015). The City's HUD approved 2010-2015 Consolidated Plan (ConPlan), effective July 1; 2010, identifies its needs and establishes funding priorities and goals (Attachment 2). The Consolidated Plan guides .the City in its development of its annual program. Established priorities and goals are as follo��s: • Housing: o Affordable Rental Housing for ]ow and moderate income households o Maintenance and Preservation of existing housing stock o Homeov�mership Opportunities 21 -2 I�'OVE�'IBER �. 2013. Item 2� Pase 3 of� • Communin� De��elopment Priorities: o Infrastructure Impro��ements in lo�� and moderate income neiehborhoods o Communirv Enhancement o Special I�'eeds and Homeless Priorities includine Public Services, ADA Impro��ements; and Transitional and Homeless Housins and Sen ices o Economic De��elopment job creation/job training acti�ities �'�'hile the Cit�� has not vet recei��ed notification of its allocation for fiscal }�eaz 2014/201�. the Cit}° estimates an eight and a half percent reduction (8.�%) in the combined grants due to the potential budeetarv cuts knoHm as "Sequestration." The Ciri� anticipates receiving the follo��ine for 2014/201�: , ' � J . 1 1 � 1 " ' - -� .. -� CDBG � �1,746;692 �L598,li0 - HOME � ��98;726 ��47,83� ESG � �119,79� �109,610 - Fundine applications for the three erant pro�rams (CDBG, H0�4E, and ESG) �vill be available to all interested oreanizations and Cin• departments in mid \'o��ember; ��ith applications due in Januan� 2014. Staff ��211 re�ie«� all applications to determine elieibility and remm to Council in March to present recommended aliocations to projects. CDBG PROGRA_�4 The CDBG pro�am represents the City's lazgest grant entitlement to fund a variet�� of housing and communih� de�elopment acti�ities to benefit the Citv's lo��er income residents. Fundine is �enerall�� available for public sen�ice acti��ities, capital projects; housing activities, and debt ser�ice payment of a Section 108 loan. Section 108 Lomv: For fiscal ��eaz 2014/201�; the Citv's Section ]08 debt sen�ice payment H�ill be �7�2,7�2. After deductine the required debt sen�ice pa��ment from the anticipated CDBG annual entitlement; approximatelv S8��;380 n�ill remain for pubiic services programs; communin� de��elopment, housing projects; and erant administration. Public Services Categor}�: HLJD re2ulates the amount of fundine ��hich can be utilized on public sen ices activities b�� placing an eapenditure cap of 1�% of the entitlement amount (approzimatel�� 239;720). Annuallv. the Cirv recei��es a lazge number of funding requests for public sen ices which esceed the amount available. In 2008, Staff established additional rating criteria (the "tier" s}�stem) to assist in developine an annual fundin� plan that best met the needs of the communih�. Given the economic co�ditions over the last fe�� years, Staff sati� a sienificant increase in the number of requests and amount of the requests recei��ed bv both non-profit organizations and Cit�� Departments. CDBG funds were pursued to close funding Qaps resulting from losses of fundine at the Federal and State levels and in communin� �i��ine. Several non- profit organizations and Cin� Departments experienced complete cuu in state fundin� and/or experienced decreased le��els of donations. 21 -3 i��OVEMBER �; 20li; ]tem ZL Page 4 of 5 Given the limited financial resources available, the tier system also focuses these resources on basic and essentia] daily living needs and on vulnerable populations where the impact of limited resources can be significant. The funding methodology consists of a three-tier approach, classifying each of the acti��ities in the following three categories for Public Services activities: . • Tier I: Basic/Essential Needs (Food, Housing, Emergency Services) • Tier II: Special Needs (At-Risk Youth, Family Violence, Special Needs/Disabled) • Tier IlI: Other (Transportation Sen�ices, Case Management, Preventative Health Care Services, Recreation (non disabled, non emergency services) Staff recommends continuing the use of the 3-tier system for program year 2014/2015. Historical]}�; there has been sufficient funding for Tier I and Tier II programs. Any remaining Public Sernices funds were distributed among Tier llI programs. Capital Improvement and Housing Related�Activities: Approximately $300,000 is available for capital improvement and housing projects for 2014/2015. n4uch like the public services category, funding recommendations for Capital and Housing Related Acti��ities are prioritized based on the following criteria: • Projects that address the unmet needs of the ConPlan (Attaclunent 2); and • Effectiveness of activiry in meeting needs o Leveragine of other funding sources; and o Number oPclients to be served. Based on a review of the City�s HUD grants performance for tliis ConPlan, the City has met ihe goals of Capital Improvement projects {CIPs) by funding projects such as improvements to the Chula Vista Family Health Center, Lauderbach Center, Castle Pazk Area Sidewalk Improvement Project, Third Avenue Streetscape, and ADA curb cuts. These types of projects, having been previously funded during the 2010-2015 ConPlan period and having addressed or met the goals of the Plan, will receive a lower priority for funding. The City still has an unmet housing need for the rehabilitation of existing housing stock. Therefore, such activities should be prioritized. DECISION A7AKER CONFLICT Staff has reviewed the decision couten�plated by this action and has determiued that it is not site specific and consequently the 500 foot rule found in California Code of Regulatio�s section 18704.2(a)(1) is not applicable to this decision. � Staff is not independently a«�are; nor l�as staff been infonned by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. 21 -4 NOV'E?�4BER �. 2013. Item 2� PaQe � of� CURRENT 1'EAR FISCAL IA�IPACT There is no current fiscal impact to the General Fund as the program is revenue offset bv the erant funds. ONGOING FISCAL IMPACT There aze no oneoina fiscal impacts as the program is re�=enue offset by the erant funds. ATTACHn4E\'TS Attachment 1: CAPER Narrative Anachment 2: Consolidated Plan priorities Prepared by: Jose Dorado; Project Coordinator IL Development Sernices Department, Housing Division 21 -5