HomeMy WebLinkAboutD-2 Staff Report - CDBG Funding Public HearingSCHEDULED ITEM/PUBLIC HEARING
D-2
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: NICO DE ANDA-SCAIA, DEPUTY CITY MANAGER/INTERIM DIRECTOR OF
ECONOMIC AND COMMUNITY DEVELOPMENT
DATE: DECEMBER 5, 2022
SUBJECT: A PUBLIC HEARING TO CONSIDER APPROVING THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS AND BUDGET FOR
THE NEW CDBG PROGRAM YEAR BEGINNING JULY 1, 2023 THROUGH
JUNE 30, 2024
BACKGROUND:
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.
APPROVED
CITY COUNCIL
12/5/2022
CDBG Public Hearing
December 5, 2022
Page 2
The City of Azusa anticipates receiving funding in the amount of $382,489 in new CDBG funds
for the 2023-2024 Program Year (effective July 1, 2023 through June 30, 2024). Of that amount,
CDBG guidelines limit public service projects to a 15% maximum cap (approximately $57,373)
of a city’s annual CDBG allocation. In prior years, LACDA granted cities the ability to exceed the
public service cap and allocate 20% of a city’s annual CDBG funding to public service projects.
The City’s proposed CDBG allocation is a planning estimate only; LACDA will release final
appropriations in spring 2023. The City's final CDBG allocation is generally within five percent
(5%) of the estimate provided. The City’s estimated 2023-2024 CDBG allocation is approximately
4.5% lower than the amount of funding the City received in the past. This is mainly due to the
federal government’s appropriation reduction for the CDBG Program.
Additionally, $133,072 in previously unspent, unallocated CDBG funds are available for
reprogramming into FY 2023-2024 CDBG projects for a total estimated FY 2023-2024 CDBG
Program budget of $515,561.
It is recommended that $515,561 in 2023-2024 CDBG funds support three capital improvement
and housing-improvement related projects totaling $458,188, and three public service projects
totaling $57,373.
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1) Open the public hearing, receive testimony and presentation of the proposed projects;
2) Adopt Resolution No. 2022-C82 approving the 2023-2024 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.
ANALYSIS:
The Azusa Department of Economic and Community Development recommends 2023-2024
CDBG funding for three housing and neighborhood improvement projects and three public service
projects. All proposed CDBG activities are intended to benefit low- and moderate-income Azusa
residents. The following is the proposed list of 2023-2024 CDBG Program activities and funding
recommendations:
CDBG Public Hearing
December 5, 2022
Page 3
PROGRAM YEAR 2023-2024 CDBG ALLOCATION
Estimated New Year Funds: $382,489 Carryover Funds: $133,072
Total Amount Available $515,561
Project
Recommended
Amount
2023-2024 Housing and Neighborhood Improvement
Projects
Single Family Housing Rehabilitation $185,000
Code Enforcement Program* $136,000
Sidewalks and ADA Improvement Project (Includes
carry-over CDBG Funds of $133,072 plus new FY 2023-
2024 CDBG funds of $4,116) $137,188
Subtotal: $458,188
Public Service Projects (Maximum 15% of total FY 2023-
2024 CDBG allocation or $57,373)
YWCA of San Gabriel Valley $27,000
Azusa Family Services $15,373
Neighborhood Homework House $15,000
Subtotal: $57,373
Total $515,561
*Includes CDBG Program management and
administration costs
Housing and Neighborhood Improvement Projects
Single Family Housing Rehabilitation Program: This owner-occupied single family housing
rehabilitation grant program is ongoing. Grants are used to correct code, health, and safety
violations in conjunction with the Code Enforcement/Community Improvement Program. Grants
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 975 households with
more than $6.8 million in improvements. Staff recommends continuing this project for 2023-2024
at its current funding level of $185,000. However, due to rising costs of materials and labor, staff
recommends that the maximum grant amount allowed for a single-family residence be increased
from $12,000 to $15,000. Approximately ten housing rehabilitation projects are anticipated to be
completed. 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 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. This will be the third year of a three-year Agreement with FRJ Associates.
CDBG Public Hearing
December 5, 2022
Page 4
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,
benefiting 1,500 households. This program works in conjunction with the Single-Family Housing
Rehabilitation Program. Staff recommends funding this program at $136,000.
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 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 18,000 linear feet of deteriorated
sidewalk and constructed 158 ADA-compliant curbs with truncated domes. Unallocated CDBG
funds in an amount of $133,072 will be added to FY 2023-2024 CDBG funds of $4,116 for a total
project budget estimated at $137,188. This project was previously funded in 2021-2022. A portion
of the Sidewalks and ADA Improvement project budget will cover federal labor compliance
administration costs.
Public Service Projects (Subject to the 15% Public Service Maximum Funding Limit)
Three public service projects are recommended for 2023-2024 CDBG funding. The total amount
of all three public service projects combined does not exceed the maximum funding limit of 15%,
or approximately $57,373. Los Angeles County Development Authority (LACDA) imposed a
$10,000 minimum for any CDBG public service project funded.
The strict and demanding CDBG financial and programmatic regulatory requirements imposed on
public service organizations requires agency capacity and capability. CDBG requirements often
limit most non-profit organizations from even qualifying to receive CDBG funding. For these
reasons, a Notice of Funding Availability was not released for the upcoming year. Rather, staff
recommends that, in 2023-2024, CDBG funds continue to support our existing public service
providers in order to maintain the quality programs that serve Azusa residents and ensure
continuity of critical existing programming. The City may revisit this process in future years as
appropriate. The following public service projects are recommended for 2023-2024 CDBG
funding:
Azusa Family Services ($15,373): 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 Public Hearing
December 5, 2022
Page 5
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 $15,373.
Neighborhood Homework House ($15,000): This Azusa-based project was initially approved by
the City Council in 2000/2001. 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. Staff recommends
funding this continuing project at $15,000.
Senior Case Management ($27,000): The YWCA San Gabriel Valley will begin its fifth 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. 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.
Staff recommends funding this continuing project at $27,000.
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 federal required documentation, CDBG
program monitoring, and general CDBG project management. For 2023-2024, 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.
The City contracted with LDM Associates, Inc., in 2022-2023 to perform CDBG administration
and federal labor compliance services. The approved Agreement with LDM Associates, Inc., is for
a three-year period effective July 1, 2022 through June 30, 2025. This will be the second year of
the three-year Agreement.
FISCAL IMPACT:
Final approved CDBG projects will be reflected in the 2023-2024 annual City budget adoption
process tentatively scheduled for Council review and approval in June of 2023. The recommended
amount outlined in this staff report 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.
CDBG Public Hearing
December 5, 2022
Page 6
Prepared by: Reviewed by:
Tina Gall Nico De Anda-Scaia
CDBG Consultant Deputy City Manager / Interim Director of
Economic and Community Development
Fiscal Review by: Reviewed and Approved by:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachments:
1) Resolution No. 2022-C82
ATTACHMENT 1
RESOLUTION NO. 2022-C82
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
ADOPTING THE COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM FOR YEAR 2023-2024
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 2023-2024 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 2023-
2024, 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 2023-2024
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 2023-2024 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 5th day of December, 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-C82 was duly adopted by the
City Council of the City of Azusa, at a regular meeting of said City Council held on the fifth day of
December 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
PROGRAM YEAR 2023-2024 CDBG ALLOCATION
Estimated New Year Funds: $382,489 Carryover Funds: $133,072
Total Amount Available $515,561
Project
Recommended
Amount
2023-2024 Housing and Neighborhood Improvement
Projects
Single Family Housing Rehabilitation $185,000
Code Enforcement Program* $136,000
Sidewalks and ADA Improvement Project (Includes carry-
over CDBG Funds of $133,072 plus new FY 2023-2024
CDBG funds of $4,116) $137,188
Subtotal: $458,188
Public Service Projects (Maximum 15% of total 2023-
2024 CDBG allocation or $57,373)
YWCA of San Gabriel Valley
$27,000
Azusa Family Services $15,373
Neighborhood Homework House $15,000
Subtotal: $57,373
Total CDBG Amount Available in 2023-2024 $515,561
*Includes CDBG Program management and
administration costs