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HomeMy WebLinkAboutD-1 Staf Report - FY 2021_22 CDBG ProgramCDBG PROGRAM February 1, 2021 Page 1 1 SCHEDULED ITEM/PUBLIC HEARING D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ, DIRECTOR OF ECONOMIC AND COMMUNITY DEVELOPMENT DATE: FEBRUARY 1, 2021 SUBJECT: PUBLIC HEARING - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM YEAR 2021/2022 – ADOPTION OF RESOLUTION APPROVING THE CDBG PROGRAM YEAR 2021/2022 BACKGROUND: Since 1974, the City of Azusa has participated under the County of Los Angeles Community Development Block Grant (CDBG) Program. Effective with the start of the new CDBG Program Year, July 1, 2021 through June 30, 2022, the City estimates receiving $406,969 in new CDBG funds. Three (3) public service projects totaling $80,000 and three (3) capital improvement and housing- improvement related projects totaling $326,969 are recommended for funding in the upcoming CDBG Program Year 2021-2022. RECOMMENDATION: It is recommended that the City Council take the following actions: 1) Open the public hearing, receive public testimony, and close the Public Hearing; 2) Adopt Resolution No. 2021-C05 approving the Program Year 2021-2022 Community Development Block Grant (CDBG) Program; and 3)Authorize the City Manager to execute all contracts and Agreements, in a form approved by the City Attorney, with the Los Angeles County Development Authority (LACDA). ANALYSIS: Each year, Community Development Block Grant (CDBG) funds are allocated to cities by the federal Housing and Urban Development Department (HUD) and administered through the Los Angeles County Development Authority (LACDA). Participating cities receive funding based upon the total number of APPROVED CITY COUNCIL 2/1/2021 CDBG PROGRAM February 1, 2021 Page 2 2 cities participating in the County's program, census population counts, estimates of poverty, overcrowding and aged housing stock. The City of Azusa has participated in the Community Development Block Grant (CDBG) Program since its inception in 1974, utilizing federal CDBG funds for various housing and community development projects within the City. Annually, a public hearing is conducted to allow public comment on the City’s proposed use of CDBG funds. The City of Azusa anticipates receiving new FY 2021-2022 funding in the amount of $406,969. Of that amount, there is a 20% maximum cap (approximately $80,000) for allocation to public service projects. The City’s estimated CDBG allocation is consistent with the amount of funding the City has received in the past. The City’s proposed CDBG allocation is a planning estimate only; the Los Angeles County Development Authority (LACDA) will release final appropriations in spring 2021. The City's final CDBG allocation is generally within five percent (5%) of the estimate provided. DISCUSSION: The Azusa Department of Economic and Community Development recommends FY 2021-2022 CDBG funding for three (3) public service projects, two (2) housing related projects, and one infrastructure improvement project. All proposed CDBG activities benefit low- and moderate-income Azusa residents. The following is the proposed list of 2020/2021 CDBG Program activities and funding recommendations: Capital Improvement Projects Sidewalk and Americans-with-Disabilities Act Compliant (ADA) Improvements: Sidewalks make neighborhoods more accessible and offer all persons, especially elderly and severely disabled persons safe and clear paths of travel. This continuing project will improve pedestrian safety by repairing existing sidewalks that pose risk or prohibit safe pedestrian paths of travel. 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 more than 16,000 linear feet of deteriorated sidewalk and constructed 146 ADA-compliant curbs with truncated domes. According to the Public Works Department, over four miles of sidewalks remain in need of repair and more than 400 curb ramps do not meet ADA standards. This project was previously funded in FY 2019-2020. New FY 2021-2022 CDBG funds in an amount of $31,969 will be allocated to this project. Additionally, it is anticipated that after the close of FY 2020-2021, unspent CDBG funds will be carried forward into this project to increase the project budget and complete approximately ten to twelve ADA-compliant curb ramps. 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 approximately 900 households with more than $6.0 million in improvements. Staff recommends continuing this project for FY 2021-2022 at its current FY 2020-2021 funding level of $185,000. Approximately ten to twelve housing rehabilitation projects are completed annually. Housing CDBG PROGRAM February 1, 2021 Page 3 3 Rehabilitation Program administration costs of $35,000 are included in the total Housing Rehabilitation Program budget of $185,000. Code Enforcement Program/CDBG: This project will continue to fund the salary and benefits of one full- time community improvement inspector, to 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 approximately 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 $110,000. Public Service Projects (Subject to the 20% Public Service Cap of approximately $80,000) Three public service projects are recommended for FY 2021-2022 CDBG funding. The total amount requested by all three public service projects combined does not exceed the maximum funding cap of 20%, or approximately $80,000. Los Angeles County Development Authority (LACDA) imposed a $10,000 minimum for any CDBG public service project funded. Staff recommends funding the following public service projects for FY 2021-2022: Azusa Family Services ($25,000): This City-staffed program will continue to provide a comprehensive array of supportive services to youth and families. These supportive services include providing information, referral and outreach for mental health, substance abuse, domestic violence, counseling, disabled services, homeless resources, and access to health and social services. Outreach will be conducted through the after-school program and through other city programs and events to engage interested residents. This year, due to COVID-19, fewer residents participated in the Azusa Family Services program. Virtual services are available and may continue, if necessary, in the upcoming CDBG Program Year 2021-2022. CDBG funds partially support the salary and benefits of a Community Resources Program Specialist, who is trained in public health and/or social work in order to best meet the needs of Azusa youth and their families. Staff recommends funding this continuing project at its current funding level of $25,000. Neighborhood Homework House ($15,000): This Azusa-based project was initially approved by the City Council in 2000/2001, and will be in its 21st year. Annually, this program assists approximately 200 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 for parents and a computer lab for children. During this current school year and due to COVID -19, Neighborhood Homework House successfully integrated virtual and remote learning within its curriculum. Virtual and remote services may continue, if necessary, in the upcoming CDBG Program Year 2021-2022. This program has been successful in serving approximately 200 at-risk Azusa children annually. Staff recommends funding this continuing project at its current funding level of $15,000. Senior Case Management ($40,000): The YWCA San Gabriel Valley will begin its third year of offering Azusa senior adults’ comprehensive information, referral and case management services. The YWCA San Gabriel Valley maintains a qualified level of staffing, service and capacity. Additionally, the YWCA CDBG PROGRAM February 1, 2021 Page 4 4 provides an expanded level of services to Azusa senior adults that include bio-psychosocial assessments and comprehensive case management. The YWCA San Gabriel Valley typically assigns Case Managers to the Azusa Senior Center for a minimum of sixteen (16) hours weekly. However, this year, due to COVID-19, services were offered virtually. Home case management and assessment visits offered to Azusa homebound senior adults occur on an as-needed basis. The YWCA sends trained Case Managers to visit Azusa home-bound senior adults. Housing, nutrition, social security, disability and health concerns of the 55+ population of Azusa residents are addressed. A total of 160 Azusa seniors receive direct services annually and more than 350 contacts are made to Azusa’s seniors. Given the dedicated level of services including case management, assessment information and referral services to senior adults, staff recommends funding this continuing project at $40,000. CONCLUSION: The recommended FY 2021-2022 CDBG projects and funding levels are identified below: FY 2021/2022 New Year CDBG Funds: $406,969 Project Recommended Amount FY 2021/2022 Infrastructure, Housing and Neighborhood Improvement Projects Single Family Housing Rehabilitation $185,000 Code Enforcement Program $110,000 Sidewalk and ADA Improvements* $31,969 Subtotal: $326,969 FY 2021/2022 Public Service Projects (20% Maximum of FY 2021-2022 CDBG Allocation or approximately $80,000) YWCA of San Gabriel Valley $40,000 Azusa Family Services $25,000 Neighborhood Homework House $15,000 Subtotal: $80,000 Total CDBG Amount Available in FY 2021/2022 $406,969 *Please Note: A twenty percent (20%) CDBG Program cost may be charged for administrative and labor compliance services. CDBG PROGRAM February 1, 2021 Page 5 5 FISCAL IMPACT: Approved projects will be requested through the FY2021/2022 annual City budget approval process tentatively scheduled for Council review and approval in June of 2021. Recommended amount is based on preliminary planning figures. Staff will make any minor adjustments to reflect the actual, final grant allocation awarded to the City. CDBG programs not only allow the City to respond to community needs with little impact to the General Fund, but decreases general fund subsidies on many programs. Prepared by: Reviewed by: Tina Gall Matt Marquez CDBG Consultant Director of Economic and Community Development Fiscal Impact Review: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachment: 1) Resolution No. 2021-C05 ATTACHMENT 1 RESOLUTION NO. 2021-C05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ADOPTING THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR YEAR 2021-2022 WHEREAS, the City of Azusa participates under the County of Los Angeles Community Development Block Grant (CDBG) Program; and WHEREAS, City staff considered and evaluated projects and programs fulfilling important community needs; and WHEREAS, the City Council provided the opportunity for public input regarding the City's Community Development Block Grant Program for the 2021-2022 Program Year. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Azusa does hereby take the following actions: SECTION 1. Select and approve the Projected Use of CDBG Funds for Program Year 2021- 2022, attached hereto as Exhibit A, and submit the approved projects to the Los Angeles County Development Authority. SECTION 2. Approve inclusion of said projects in the City of Azusa Fiscal Year 2021-2022 budget. SECTION 3. Authorize the Mayor or authorized designee to execute all necessary contracts, agreements, and amendments with the Los Angeles County Development Authority and with each approved recipient/subrecipient of the CDBG program, together with any changes therein which may be approved by the City Manager and, as necessary, the City Attorney. SECTION 4. Authorize staff to adjust the FY 2021-2022 CDBG Program and budget, as necessary, to take into account the final CDBG allocation from the U.S. Department of Housing and Urban Development, any amounts remaining unspent at the close of the preceding fiscal year, and programmatic changes necessary to fulfill the requirements of the CDBG Program. SECTION 5. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED this first day of February, 2021. ____________________________________ Robert Gonzales Mayor ATTEST: ____________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2021-C05 was duly adopted by the City Council of the City of Azusa, at a regular meeting of said City Council held on the first day of February 2021, by the following vote of the Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ___________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: ___________________________________ Best Best & Krieger, LLP City Attorney Exhibit A Proposed Use of Community Development Block Grant (CDBG) Funds Fiscal Year (FY) 2021/2022 New Year CDBG Funds: $406,969 Project Recommended Amount FY 2021/2022 Infrastructure, Housing and Neighborhood Improvement Projects Single Family Housing Rehabilitation $185,000 Code Enforcement Program $110,000 Sidewalk and ADA Improvements* $31,969 Subtotal: $326,969 FY 2021/2022 Public Service Projects (20% Maximum of FY 2021-2022 CDBG Allocation or approximately $80,000) YWCA of San Gabriel Valley $40,000 Azusa Family Services $25,000 Neighborhood Homework House $15,000 Subtotal: $80,000 Total CDBG Amount Available in FY 2021/2022 $406,969 *Please Note: A twenty percent (20%) CDBG Program cost may be charged for administrative and labor compliance services.