HomeMy WebLinkAboutD-2 Staff Report - FY 2022_23 CDBG1
D-2
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MATT MARQUEZ, DIRECTOR OF ECONOMIC AND COMMUNITY
DEVELOPMENT
DATE: JANUARY 18, 2022
SUBJECT: PUBLIC HEARING TO CONSIDER APPROVING THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS AND BUDGET FOR THE
NEW CDBG PROGRAM YEAR BEGINNING JULY 1, 2022 THROUGH JUNE 30,
2023
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, 2022
through June 30, 2023, the City estimates receiving $400,535 in new CDBG funds.
Three (3) public service projects totaling $80,000 and two (2) housing-improvement related projects
totaling $320,535 are recommended for funding in the upcoming CDBG Program Year 2022-2023.
RECOMMENDATION:
It is recommended that the City Council take the following action:
1) Open the public hearing, receive testimony and presentation of the proposed projects;
2) Adopt Resolution No. 2022-C03 approving the Program Year (PY) 2022-2023 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), CDBG
Program subrecipients, and CDBG Program consultants.
APPROVED
CITY COUNCIL
1/18/2022
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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
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.
HUD has not formally released the results of the 2020 US Census population counts to LACDA. The
population counts determine CDBG funding levels and entitlement status. Staff recommends that the City
continue its participation with LACDA, however, if notification is received that the City's population
count supports becoming an entitlement city, the City may begin the process of withdrawing from
LACDA.
The City of Azusa anticipates receiving new PY 2022-2023 funding in the amount of $400,535. 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 2022. 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 PY 2022-2023 CDBG
funding for three (3) public service projects and two (2) housing and neighborhood improvement projects.
All proposed CDBG activities benefit low- and moderate-income Azusa residents. The following is the
proposed list of PY 2022-2023 CDBG Program activities and funding recommendations:
Housing and Neighborhood Improvement 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 950 households with more than $6.5 million in improvements. Staff recommends
continuing this project for PY 2022-2023 at its current PY 2021-2022 funding level of $185,000.
Approximately ten to twelve housing rehabilitation projects are completed annually. Housing
Rehabilitation Program administration costs of $35,000 are included in the total Housing Rehabilitation
Program budget of $185,000. The City contracted with FRJ Associates in PY 2021-2022 to perform
Housing Rehabilitation administration services. The approved Agreement with FRJ Associates is for a
three-year period effective July 1, 2021 through June 30, 2024. PY 2022-2023 will be the second year of
a three-year Agreement with FRJ Associates.
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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 $135,535.
Capital Improvement Projects
Sidewalk and Americans-with-Disabilities Act Compliant (ADA) Improvements: Due to insufficient
CDBG funding, the Sidewalk and ADA Improvement project will be postponed until the next CDBG
Program Year (2023-2024).
Public Service Projects (Subject to the 20% Public Service Maximum Funding Limit)
Three public service projects are recommended for PY 2022-2023 CDBG funding. The total amount
requested by all three public service projects combined does not exceed the maximum funding limit 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 PY 2022-2023:
Azusa Family Services ($25,000): This City-staffed program provides 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.
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 22nd year. Annually, this program assists approximately 200
youth from Kindergarten through 12th grade providing tutoring and academic enrichment programs.
Trained staff provides individualized instruction. Neighborhood Homework House also offers English as
a Second Language (ESL) classes for parents and a computer lab for children. 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 fourth 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
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 the
continuing impacts of COVID-19, services were offered virtually. Normal operations (pre-COVID) will
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resume in PY 2022-2023. Home case management and assessment visits offered to Azusa homebound
senior adults occur on an as-needed basis. Housing, nutrition, social security, disability and health
concerns of the 55+ population of Azusa residents are addressed. Approximately 100-150 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.
CDBG Program Administration
Participating cities in the LACDA’s Urban County CDBG Program may charge up to 20% administrative
costs on a per project basis in order to annually implement the CDBG Program. Administrative costs
provide reimbursement for the time spent administering the overall CDBG program, including reporting
requirements, preparation of Memoranda of Understanding, subrecipient agreements, LACDA contracts,
reviews of federally required documentation, CDBG program monitoring, and general CDBG project
management. For PY 2022-2023, a portion of the Code Enforcement total project budget will be allocated
to general CDBG Administration. This allocation lowers the General Fund cost associated with CDBG
program oversight.
PY 2021-2022 is the last year of a three-year Agreement between the City and LDM Associates, Inc. to
administer the City’s CDBG Program. To continue utilizing the services of a qualified CDBG consultant,
a Request for Proposal will be issued in spring 2022. A new Agreement for CDBG administration,
management, and labor compliance consulting services will be awarded, effective July 1, 2022.
CONCLUSION:
The recommended PY 2022-2023 CDBG projects and funding levels are identified below:
PROGRAM YEAR 2022-2023 CDBG ALLOCATION: $400,535
Project
Recommended
Amount
PY 2022-2023 Housing and Neighborhood Improvement
Projects
Single Family Housing Rehabilitation $185,000
Code Enforcement Program* $135,535
Subtotal: $320,535
PY 2022-2023 Public Service Projects
(20% Maximum of PY 2022-2023 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 PY 2022-2023 $400,535
*Includes CDBG Program management and administration
costs
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FISCAL IMPACT:
Approved CDBG projects will be reflected in the 2022-2023 annual City budget adoption process
tentatively scheduled for Council review and approval in June of 2022. 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. 2022-C03
ATTACHMENT 1
RESOLUTION NO. 2022-C03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
ADOPTING THE COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM FOR YEAR 2022-2023
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 2022-2023 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 2022-
2023, 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 2022-2023
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, including professional consulting firms contracted to administer 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 2022-2023 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 18th day of January, 2022.
____________________________________
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. 2022-C03 was duly adopted by the
City Council of the City of Azusa, at a regular meeting of said City Council held on the eighteenth day
of January 2022, 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
PROGRAM YEAR 2022-2023 CDBG ALLOCATION: $400,535
Project
Recommended
Amount
PY 2022-2023 Housing and Neighborhood Improvement
Projects
Single Family Housing Rehabilitation $185,000
Code Enforcement Program* $135,535
Subtotal: $320,535
PY 2022-2023 Public Service Projects
(20% Maximum of PY 2022-2023 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 PY 2022-2023 $400,535
*Includes CDBG Program management and administration costs