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Home My WebLink AboutD-3 Staff Report - FY 18_19 CDBG Program1 SCHEDULED ITEM/PUBLIC HEARING D-3 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS VIA: DON PENMAN, INTERIM CITY MANAGER FROM: KURT E. CHRISTIANSEN, FAICP, DIRECTOR OF ECONOMIC AND COMMUNITY DEVLOPMENT DATE: JANUARY 16, 2018 SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM YEAR 2018/2019 – ADOPTION OF RESOLUTION APPROVING THE 44TH YEAR CDBG PROGRAM SUMMARY: Since 1974, the City of Azusa has participated under the County of Los Angeles Community Development Block Grant (CDBG) Program. For the upcoming CDBG Program Year beginning July 1, 2018 through June 30, 2019, the City estimates receiving approximately $423,312 in new CDBG funds. Three (3) public service projects totaling $63,496 and three (3) capital improvement and housing- improvement related projects totaling $359,816 are recommended for funding in the upcoming CDBG Program Year 2018-2019. RECOMMENDATION: Staff recommends the City Council take the following actions: 1)Open the public hearing, receive public testimony and presentation of the proposed projects, and adopt Resolution No. 2018-C09 approving the 44th Year Community Development Block Grant (CDBG) Program. BACKGROUND: The City of Azusa has participated in the Community Development Block Grant (CDBG) Program since its inception in 1974, utilizing these federal funds for various housing and community development projects within the City. Annually, a public hearing is held to program the City’s annual CDBG funding allocation. Approved Council Meeting 1/16/2018 2 The City of Azusa anticipates receiving new funding in the amount of $423,312 for FY 2018/2019. Of that amount there is a 15% cap ($63,496) on Public Service Projects. This City’s estimated CDBG allocation is based on current CDBG funding levels and is consistent with the amount of funding the City has received in the past. This proposed CDBG allocation is a planning estimate only; the Los Angeles County Community Development Commission (CDC) will release final appropriations in spring 2018. The City's final CDBG allocation is generally within five to ten percent (5%-10%) of the estimate provided. LACDC allows cities a ‘general’ CDBG Program administration allocation of up to 20% in administrative costs on a per project basis. The Code Enforcement Project is assigned a $23,312 administrative allocation that will lower the General Fund salary cost associated with program oversight. DISCUSSION: Staff received three (3) Non-Public Service and three (3) Public Service proposals from City Departments and nonprofit organizations. Public service funding requests exceeded the maximum total allocation of $63,496 by $35,566. Requests for Non-Public Service projects remained consistent with the available CDBG funding allocation. Staff analyzed all of the submitted proposals. Analysis was based on, in order of importance, 1) benefit to low/moderate income persons, 2) if the project is a City-staffed project, 3) number of Azusa residents assisted, and 4) whether the project is a continuing program. All applicants are required to have administrative capacity to run and monitor a federally-funded program. Prior CDBG funding experience is preferred. Staff then analyzed the public service funding amounts requested. Three public service providers submitted funding requests. The three public service providers received CDBG funds in the past and continue to provide vital services to the City’s senior, disabled and youth populations. Staff recommends that all three (3) public service projects be funded again at similar levels funded in 2017/2018. Staff also took into account that all non-profits must be annually monitored at their site by City staff, incurring additional City staff hours. The following is the proposed list of 2018/2019 CDBG Program activities and staff’s funding recommendations: Capital Improvement Projects Sidewalk and Americans-with-Disabilities Act Compliant (ADA) Improvements: Sidewalks make neighborhoods more accessible and offer pedestrians safe and clear paths of travel. This continuing project will improve pedestrian safety by repairing existing sidewalks that prohibit pedestrian access or cause injuries, minimizing the risks of trip and fall incidents. In addition, this project will upgrade existing curb ramps to comply with the Americans with Disabilities Act (ADA). Since 2014, CDBG funds have repaired and replaced 10,986 linear feet of deteriorated sidewalk and constructed 107 ADA- compliant curbs with truncated domes. According to the Public Works Department, over 5 miles of sidewalks remain in need of repair and more than 500 curb ramps do not meet ADA standards. Staff recommends funding this project for FY 2018/2019 in an amount of $61,504. 3 Housing and Code Enforcement Projects Single Family Housing Rehabilitation Program: This owner-occupied single family housing rehabilitation grant program is ongoing. The maximum grant amount allowed for a single family residence is $12,000. Grants are used to correct code, health, and safety violations in conjunction with the Code Enforcement/Community Improvement Program. Funds are provided based on income eligibility of each applicant, i.e., those households earning 80% or less of median income. Since 1991, this program has assisted over 850 households with nearly $5.8 million improvements. Staff recommends continuing this project for FY 2018/2019 at its current FY 2017/2018 funding level of $185,000. This recommendation is based upon the fact that this program will meet its goal of completing approximately twelve or thirteen minor home repair grants. It is anticipated that the same number of minor home repair grants will be funded in FY 2018/2019 for a total of $155,000. Project management costs of $30,000 are included in the total budget. Code Enforcement Program/CDBG: This project will continue to fund the salary and benefits of one full-time community improvement inspector, and will provide additional code enforcement activities concentrated in the eligible low-to-moderate income areas of the City. The continued funding of the code enforcement staff position will allow for 500 properties to be inspected annually, benefiting 1,500 households. This program works in conjunction with the Single Family Housing Rehabilitation Program. Staff recommends funding this program at $90,000 with an overall administrative cost of $23,312. Public Service Projects (Subject to the 15% Public Service Cap of $63,496) Funding requests typically exceed the allowed amount for public service projects. Funding for public service projects has been severely limited. This year, funding requests received from the public service providers exceeded the available public service cap by $35,566. Staff recommends funding the same public service projects at similar funding levels as in FY 2017/2018. Los Angeles County has imposed a $10,000 minimum for any project funded. After School Playground Program: This City-staffed program is in its 23rd year of operation in conjunction with the School District. After school programs have been statistically proven to reduce juvenile crime and acts of vandalism. After school recreational and tutoring activities are currently provided at six school sites; Murray, Powell, Dalton, Mountain View, Lee, and Gladstone Street Schools. These programs serve elementary-aged youth in conjunction with the Recreation and Family Services Department and School District. Staff recommends funding this project at $43,496 for FY 2018/2019. Neighborhood Homework House: This Azusa-based project was initially approved by the City Council in 2000/2001, and will be in its 18th year. Annually, this program assists approximately 190 youth from Kindergarten through 12th grade providing tutoring and academic enrichment programs. A trained volunteer tutoring staff provides individualized instruction. Neighborhood Homework House also offers English as a Second Language (ESL) classes to parents, and a computer lab for children. This program has been successful in empowering a large number of at-risk Azusa children at a reasonable cost and is leveraged with funding from several sources besides the City. The requested funding is only a small fraction of the program’s cost but very critical as expenditures have exceed revenues in recent years. Staff recommends fully funding this program in the amount of $10,000; the program has been historically funded at $10,000 per year. 4 Sr. Referral and Case Management: This continuing program complements existing programs offered to seniors by the Azusa Senior Center. City-based referral and case management services are offered to Azusa seniors by social workers from Santa Anita Family Service, a nonprofit organization. Santa Anita Family Service provides a trained counselor weekly on-site at the Azusa Senior Center. Housing, nutrition, social security, disability and other concerns of the 55+ population of Azusa residents are addressed. This year (2017/2018) 90 seniors are expected to receive services. Staff recommends continuing this project in FY 2018/2019 at a funding level of $10,000; the same as awarded in FY 2017/2018. CONCLUSION: Funding was requested for six (6) projects, including three (3) public service projects. Staff is recommending funding all six continuing projects, staffed by City employees, and City-based, all which benefit low-to-moderate income Azusa residents. Although Staff may recommend project funding levels, final selection lies with the Azusa City Council. A summary of all projects and funding amounts are below: Proposed Statement of Objectives and Projected Use of 44th Year CDBG Funds FY 2018/2019 New Year Funds: $423,312 Project Requested Amount Recommended Amount Infrastructure, Housing and Neighborhood Improvement Projects ($359,816 Available): Single Family Housing Rehabilitation $194,400 $185,000 Code Enforcement Program $89,856 $90,000 20% Administrative Cost* $23,312 $23,312 Sidewalk and ADA Improvements $64,793 $61,504 Subtotal: $372,361 $359,816 Public Service Projects (15% Cap Limit of $63,496) After School Program (After School Playgrounds) $70,977 $43,496 Homework House $10,000 $10,000 Sr. Referral & Case Management $18,085 $10,000 Subtotal: $99,062 $63,496 Overage of 15% Cap Limit $35,566 $0 Total Amount Requested $471,423 $423,312 Total Amount Programmed in FY 2018/2019 $423,312 *Please Note: A twenty percent (20%) CDBG Program administrative allowance may be charged on a per project specific basis. FISCAL IMPACT: The program year FY2018-19 estimated allocation amount of $423,312 is based on preliminary planning figures, and the information was obtained from the U.S. Department of Housing and Urban 5 Development’s (HUD’s) most recent estimate. When the final CDBG allocation is approved by HUD at a later date, the City will update the FY 2018/2019 Annual CDBG City Budget with the exact approved allocation amount. Staff will make any necessary adjustments to reflect the actual, final grant allocation to the City. Prepared by: Reviewed and approved: Tina Gall Kurt Christensen, FAICP CDBG Consultant Director of Economic and Community Development Reviewed and Approved Reviewed and approved: Louie F. Lacasella Don Penman Senior Management Analyst Interim City Manager Attachments: 1) Resolution No. 2018-C09 2) Eligible Service Area Map