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Home My WebLink About2009/03/24 Item 16CITY COUNCIL AGENDA STATEMENT ~`,,,~;~ cIIY of CHULA VISfA Mazch 24, 2009 Item Ito ITEM TITLE: PUBLIC HEARING TO REVIEW THE CITY'S HOUSING AND URBAN. DEVELOPMENT FEDERAL GRANT PROGRAMS FOR 2009/2010 (COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIP ACT AND EMERGENCY SHELTER GRANT) SUBMITTED BY: DEPUTY CITE' MANAGER /DEVELOPMENT SERVICES The City has received and reviewed funding applications for the Community Development Block Grant (CDBG), the Home Investment Partnerships Act (HOME) and the Emergency Shelter Grant (ESG) Funds. This item will provide the public with the opportunity to provide input on the community's housing and community development needs. Staff will also offer Council funding level recommendations for all eligible projects/programs for the 2009/2010 fiscal yeaz. DIRECTO REVIEWED BY: CITY MANAGE 4/STHS VOTE: YES ~ NO X^ SUMMARY ENVIRONMENTAL REVIEW At this time, no action is requested to fund specific activities; thus, no environmental review is necessary. Once Council selects which activities to fund, the Environmental Review Coordinator will review the proposed activities for compliance with the National Environmental Protection Act (NEPA) and will deternune the level of environmental review necessary for each individual project. RECOMMENDATION That the City Council conduct the public hearing to review and accept public comment on the funding proposals received for fiscal yeaz 2009/2010 CDBG, HOME, and ESG grant programs, and provide direction to staff on the draft funding recommendations. 16-1 Mazch 24, 2009, Item ~ ~ Page 2 of 5 BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION As an entitlement community with the Department of Housing and Urban Development (HUD), the City receives funds under three of their block grant programs: CDBG, ESG, and HOME. The entitlement amounts allocated to jurisdictions aze determined using a formula based on statistical and demographic data. The funds aze to be expended to provide decent housing, a suitable living environment, and to expand economic opportunities, principally for low- and moderate-income persons. Each entitlement community develops their own programs and funding priorities. Due to a delay in Congress, the fmal 2009/2010 HUD Budget has not been passed. Therefore the City has not been notified of the upcoming allocation amounts. The City has been advised by HUD staff to assume a 2% reduction from prior yeaz funding. Refer to Attachment 1, "2009/2010 Federal Grants Budget" for total funding levels. Each yeaz the City undertakes a process to solicit requests and approve programs and projects for these grant funds, and similaz to previous years will include both requests for funding from various City departments and local organizations. The purpose of this public heazing is to offer residents, non-profit organizations and other interested parties an opportunity to provide input on the 2009/2010 proposals received as well as funding recommendations (Attachment 2 - "2009/2010 Federal Grants Funding Requests and Recommendations"). Accompanying this report is the 2009/2010 Federal Grant Funding Application Notebook (Attachment 3), which compiles all funding categories: ~ Administration/Planning ~ Public Services; ~ City Capital Improvement and Public Facility projects; ~ Housing; and, Emergency Shelter Programs. The Notebook describes in greater detail all the grant requests for funding received on an annual basis. The Notebook is on file in the City Clerk's office and was distributed to City Council under sepazate cover on Mazch 18, 2009, to provide adequate time for review. On February 17 of 2009, the American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law to jumpstart our economy through various federal grants including the City's CDBG and ESG program. The City has been notified that the City will receive an additional $549,017 under the CDBG program and $819,738 specifically designated for homeless prevention programs. Regulations for the administration of the newly identified funds have not been fmalized. For this reason, these funds will not be allocated through this funding cycle. Staff will be returning to Council at a later date to allocate the new funds. 16-2 Mazch 24, 2009, Item) i~ Page 3 of 5 There may also be opportunity to apply for other Recovery Act funds. A cross- departmental outreach effort to educate the community on potential funds available through the Recovery Act and to receive input on the priority criteria for project selection is scheduled for later this month. The City Council will be included in this effort at a workshop scheduled not yet scheduled. 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 total amount of CDBG funding requested is summarized below. It should be noted that the total amount of requests exceeds the amount available by over $300,000. Public Services $576,003 15% Cap- allowable budget: ($285,858) $290,144 Capital Improvement and $1,320,000 $1,257,292 ($62,708) Public Facility Projects Subtotal Administration and $425,859 20% Cap-allowable budget: ($29,000) Planning $396,859 TOTAL +R Public Services Proeram: The City may allocate up to fifteen percent (15%) of the CDBG entitlement amount to public service programs, based on a cap of the entitlement funds. Public service activities include but aze not limited to: employment services, child caze, health services, substance abuse services, welfaze and recreation needs. Staff provides funding recommendations based on the funding priorities established in the Consolidated Plan. Along with the funding priorities, staff also established additional criteria in response to the current economic state, achieving a funding plan which best meets the needs of our community. The funding methodology consists of a three-tier approach, classifying each of the activities in the following three categories: Tier I: Basic/Essential Needs (Food, Housing, Emergency Services) Tier II: Special Needs (At-Risk Youth, Family Violence, Special Needs/Disabled) Tier III: Other (General) 16-3 March 24, 2009, Item ~~ Page 4 of 5 All funding requests received for the public service programs aze CDBG-eligible as they meet the national objective to primarily benefit low-income families. Available funding was distributed based on this priority system. Staff is recommending that applicants in Tier I and Tier II receive the same amount of funding as in 2008/2009. Anew program, the San Diego Food Bank -Food 4 Kids Backpack Program, has been included in this category as it is deemed a Tier I program by providing an essential need and is being recommended for approximately half of the amount of their request. As it is a new project, staff recommends a small pilot project to gauge performance in the first yeaz. Based on remaining funds, staff is recommending funding Tier III applicants receive 74% of their prior yeaz funding. Any applicant who was not a prior yeaz recipient and not a Tier I program was not recommended for funding this program yeaz. ~ Canital Improvement and Public Facilities: This category includes five requests .including $637,370 for principal and interest payments on a $9.5 million Section 108 Loan which is being used for infrastructure improvements in the Castle Park Area. This leaves $619,922 available for capital improvement and public facility projects. This category does not have a funding cap limit, but is limited by available funds. Capital Improvement Projects may include acquisition, construction or installation of eligible public facilities improvements (except for buildings for the general conduct of government). Improvements include streets, sidewalks, curbs, gutters, parks, playgrounds, water/sewer lines and flood/drainage improvements. ~ Administration and Plannine: The City may allocate up to twenty percent (20%) of the CDBG entitlement amount to administration and planning activities. The funds 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 is used for fair housing services and contractual homeless administrative services. HOME Investment Partnership Act Program (HOME) Approximately $899,000 in HOME funds will be received for fiscal yeaz 2009/2010. HOME funds may be used to provide affordable rental housing and home ownership opportunities through: • New construction; • Acquisition; • Rehabilitation; • First time homebuyer assistance; and, • Tenant-based rental assistance. In past years the City has used these funds to support aFirst-time Homebuyer program, rental assistance, and new constructionlacquisition activities related to the development of affordable housing. HOME funds will be set-aside to assist qualified developers in the production of affordable housing. Apre-commitment of funding for the Landings II was 16-4 Mazch 24, 2009, Item~lo Page 5 of 5 already approved by the City Council on 2/3/09. The project is still pursuing permanent financing. If successful, the allocation of funds for that project will be brought forward to City Council before June 30, 2009. Emergency Shelter Grant Program (ESG) Chula Vista will receive ESG entitlement funds in the amount of $87,879 for fiscal yeaz 2009/2010 through the regulaz annual entitlement process. The City received one proposal from South Bay Community Services, a local homeless service provider, for the use of these funds. As previously mentioned, the City will receive additional ESG funding in the amount of $800,000 through the Recovery Act for the purpose of providing homeless prevention services. These funds will be allocated once the regulations are established through an amendment to the Action Plan in June 2009. DECISION MAKER CONFLICT Staff has determined that the activities under the Administration and some Public Service programs of the CDBG, HOME and ESG programs aze 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, several Public Services programs and Capital Improvement and Community Enhancement projects aze site specific. For this reason, Staff reviewed the property holdings of the City Council and found no property holdings within 500 feet of the boundazies of the projects and programs. FISCAL IMPACT The City will receive a total of $1,934,295 in combined 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; complete capital improvement projects; produce affordable housing; and, aid the homeless. There is no cost to the City's General Fund as project and staff costs aze covered by the grants. ATTACHMENTS Attachment 1: 2009/2010 Federal Grants Budget Attachment 2: 2009/2010 Federal Grant Summary of Requests and Recommendations Attachment 3: 2009/2010 Federal Grant Funding Application Notebook (On file in the City Clerk's office, and to provide the City Council with adequate time for review, the Application Notebook was provided under sepazate cover on March 18, 2009) Prepared by: Angelica Davis, Redevelopment and Housing Project Coordinator II, Development Services Department 16-5 FY 2009/2010 FEDERAL GRANTS BUDGET Department of Housing and Urban Development Community Development Block Grant (CDBG) Home Investment Partnership Act Grant (HOME) Emergency Shelter Grant (ESG) Attachment No. 1 16-6 2009/2010 Federal Grants Funding Requests and Recommendations CDBG ~ HOME ~ ESG Regional Task Force on the 1 Homeless Task Force on the Homeless $ 1,000 $ 1,000 $1,000 2 Redevelopment and Housing Fair Housing Counseling Services $ 35,000 $ 35,000 $35,000 3 Fair Housing Council of San Diego Fav Housing Audt Services $ 39,000 $ - $10,000 CDBG Program Planning and 4 Redevelopment and Housing Administraton $ 35Q,859 $ 358,754 $340.859 Total Re uested and Recommended $ '425,859 $386,859 Surplus/Shortfall $ (39,000) $0 ,,,:: ~ ..,. uo~, .., ,.., y, . .. .. .. ~:..~.,;. "•~~~~' S Meals on Wheels Meals-On-Wheels Chula Vista $ 13,000 $ - $12,00 E - ... 6 Lutheran Social Services Project Hand $ 24,000 $ 7,380 $7,38 f: u 7 Lutheran Social Services Caring Neighbor $ 24,000 $ 20,000 $20,00 r La:E 8 South Bay Community Services Family Violence Treatment $ 50,000 $ 34,000 $34,00 ) 9 South Bay Community Services Thursdays Meal $ 11,000 $ 10,000 $10,00 ~" 10 Interfaith Shelter Network Interfaith Shelter Network - $ 10.350 $ 10,350 $10,35 I I San Diego Food Bank Food 4 Kids Backpack Program $ 31,663 $ $15,00 12 Chazles Cheneweth Foundation Community Access Program $ 15,000 $ 11,000 $11,00 - ~ 13 Chula Vista Recreation Dept. Therapeutic Recreation Services $ 133,068 $ 17,936 $17,93 YMCA Youth Development ~". 14 YMCA of San Diego (South Bay) Programs $ 30,000 $ 29,854 $29,85 ;~ ~. Youth Services for High-Risk 15 South Bav Community Services Youth $ 39,550 $ 39.550 $39.55 : .~ i South Bay Adult Day Health Care ~ ~ 16 Adult Protective Services Transportation $ 11,000 $ 11,000 $8,855 ,.5 ~;i(~"'is Chula Vista Community Chula Vista Family Assessment and FP: +'~~; ^ 17 Collaborative Referral $ 45,000 $ 35,000 $28,172 ;:; ',ar, Family Health Centers of San ' 18 Diego KidCare £xpress Mobile Urut $ 30,000 $ 27,000 $21.73 ~" 19 Los Niilos Project EVE $ 25,300 $ - $ ~ Chula Vista Veterans Home ,' ~'" 20 Support : Rehabilitation Services $ 3,600 $ 3.500 $2,81 , Community Medical Non-emergency Medical ~ j ... °' 21 Transportation Transportation $ 35,000 $ - $ Boys and Girls Club of Chula 2.2 Vista Safe Kids Transportation Services $ 25,912 $ 14,413 $11,60 23 Chula Vista Recreation Dept. WizKidz Program $ 18,560 $ 12,299 $9,9 Total Re uested and Recommeoded $ 576,003 $290,144 Surplus/Shortfall $ (285,859) $0 ** ** tx Attachment No. 2 16-~ 2009/2010 Federal Grants Funding Requests and Recommendations (Coufiuued) 24 Engineering _ ADA Curb Cut Program $ 505,000 $ 390,000 $504,92 25 Finance Department Section 108 Payment - Yeaz Two $ 635,000 $ 637,370 $637,37 26 MAAC.Project - Telecommunication System S. 30,000 $ - $ Family Health Centers of San Chula Vista Family Health Center. 27 Diego Expansida $ 40,000 $ 30,000 $ South Bay Regional Homeless 28 South Bay Community Services Center $ 175,000 S - $115,00 Total Requested and Recommended $ 1.325,000 $1157,292 29 Redevelopment and Housing 30 Redevelopment and HOME Program Planning and Administraton $ Production of Affordable Housing $ 88,000 $ 89,949 93,548 $ 809,545 Surplus/Shortfall $ * Applicant did not receive funding in 2008/2009: however did recive funding in 2007/2008 * * Denotes new applicant * * * Funding Methodology (Tiers I, II and III) Tier 1: Basic Needs (Food, Housing, Emergency Services) Tier 2: Special Needs (At Risk Youth, Family Violence, Special NeedstDisabled) Tier 3: Other (Genemq Attachment No. 2 16-8 Attachment 3 2009/2010 Federal Grant Funding Application Notebook Previously distributed with Info Memo on 3/18/09 16-9