HomeMy WebLinkAboutD-2 Staff Report - 2024-2025 CDBG Funding Public HearingPUBLIC HEARING/SCHEDULED ITEM
D-2
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: JOSE JIMENEZ, DIRECTOR OF ECONOMIC AND COMMUNITY
DEVELOPMENT
DATE: JANUARY 16, 2024
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, 2024 THROUGH
JUNE 30, 2025
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.
The City of Azusa anticipates receiving funding in the amount of $370,795 in new CDBG funds
for the 2024-2025 Program Year (effective July 1, 2024 through June 30, 2025). Of that amount,
CDBG guidelines limit public service projects to a 15% maximum cap (approximately $55,619)
of a city’s annual CDBG allocation. Additionally, $70,341 in previously unspent, unallocated
CDBG funds are available for reprogramming into FY 2024-2025 CDBG projects for a total
estimated FY 2024-2025 CDBG Program budget of $441,136.
Approved
City Council
January 16, 2024
CDBG Public Hearing
January 16, 2024
Page 2
3% lower than the amount of funding the City received in the past. This is consistent with the
annual fluctuations by the federal government’s appropriation for the CDBG Program.
It is recommended that $441,136 in 2024-2025 CDBG funds support two housing-improvement
related projects totaling $325,000, two public service projects totaling $41,136, and one new
economic development project totaling $75,000.
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1)Open the public hearing, receive testimony and presentation of the proposed projects, and
adopt the resolution approving the 2024-2025 Community Development Block Grant
(CDBG) Program;
2)Authorize staff to release a Request for Proposal to seek qualified consulting firms for the
provision of CDBG Housing Rehabilitation Services for Fiscal Year 2024-2025;
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; and,
4)Adopt Resolution No. 2024-C01, Adopting the Community Development Block Grant
Program for Year 2024-2025.
ANALYSIS:
The Azusa Department of Economic and Community Development recommends 2024-2025
CDBG funding for two housing and neighborhood improvement projects, two public service
projects, and one economic development project. All proposed CDBG activities are intended to
benefit low- and moderate-income Azusa residents. The following is the proposed list of 2024-
2025 CDBG Program activities and funding recommendations:
PROGRAM YEAR 2024-2025 CDBG ALLOCATION
Estimated New Year Funds: $370,795 Carryover Funds: $70,341
Total Amount Available $441,136
The City’s proposed CDBG allocation is a planning estimate only; LACDA will release final
appropriations in spring 2024. The City's final CDBG allocation is generally within five percent
(5%) of the estimate provided. The City’s estimated 2024-2025 CDBG allocation is approximately
CDBG Public Hearing
January 16, 2024
Page 3
Subtotal: $325,000
Public Service Projects
YWCA of San Gabriel Valley $21,136
Neighborhood Homework House $20,000
Subtotal: $41,136
Economic Development
Gladstone Business Incentive Project $75,000
Total $441,136
*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 985 households with
more than $7.0 million in improvements. Staff recommends continuing this project for 2024-2025
at its current funding level of $185,000. Approximately ten housing rehabilitation projects are
anticipated to be completed with a maximum grant amount of $15,000 per eligible household.
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 was for a three-year period and will expire on June 30, 2024. Staff is requesting
that the City Council approve the release of a Request for Proposal in spring 2024 to solicit
proposals from qualified firms to provide Housing Rehabilitation administration services.
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,
$140,000
Project
2024-2025 Housing and Neighborhood Improvement
Projects
$185,000
Code Enforcement Program*
Recommended
Amount
Single Family Housing Rehabilitation
CDBG Public Hearing
January 16, 2024
Page 4
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. Staff
recommends that, in 2024-2025, CDBG funds continue to support our existing public service
providers to maintain the quality programs that serve Azusa residents and ensure continuity of
programming. The following public service projects are recommended for 2024-2025 CDBG
funding:
Neighborhood Homework House ($20,000): 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 $20,000.
Senior Case Management ($21,136): 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 75-100 Azusa
seniors receive direct services annually and more than 300 contacts are made to Azusa’s seniors.
Staff recommends funding this continuing project at $21,136.
Economic Development Project
This year, staff is proposing that CDBG funds support a new Economic Development Project,
tentatively titled, “Gladstone Business Incentive Project”. The City intends to use CDBG funds
totaling $75,000 to create an economic incentive to attract a business owner/operator to improve,
occupy, and bring a highly desirable grocery store to the premises at 153 E. Gladstone Avenue.
The economic incentive is proposed to be in the form of City permits and entitlement fee waivers.
CDBG funds may be used for this purpose if the business assisted demonstrates a public benefit
that results in the delivery of goods or services to residents of a low- and moderate-income
benefiting 1,500 households. This program works in conjunction with the Single-Family Housing
Rehabilitation Program. Staff recommends funding this program at $140,000.
Public Service Projects (Subject to the 15% Public Service Maximum Funding Limit)
Two public service projects are recommended for 2024-2025 CDBG funding. The total amount of
the two public service projects combined does not exceed the maximum funding limit of 15%, or
approximately $55,619. Los Angeles County Development Authority (LACDA) imposed a
$10,000 minimum for any CDBG public service project funded.
CDBG Public Hearing
January 16, 2024
Page 5
subrecipient agreements, LACDA contracts, reviews of federal required documentation, CDBG
program monitoring, and general CDBG project management. For 2024-2025, a portion of the
Code Enforcement 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 third year of the
three-year Agreement.
FISCAL IMPACT:
Approved CDBG projects will be reflected in the 2024-2025 annual City budget adoption process
tentatively scheduled for Council review and approval in June of 2024. 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 Jose Jimenez
Director of Economic and Community
Development
Fiscal Review by: Reviewed and Approved by:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
residential area. If unsuccessful in attracting a business owner/operator to occupy 153 E. Gladstone
Avenue, staff may amend the proposed project scope to expand and/or modify the specific business
and or location of the CDBG Economic Development Project, provided that all CDBG
requirements are met.
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,
ATTACHMENT 1
1
RESOLUTION NO. 2024-C01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
ADOPTING THE COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM FOR YEAR 2024-2025
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 2024-2025 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 2024-
2025, 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 2024-2025
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 and
implement CDBG activities and programs, 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 2024-2025 CDBG Program and budget, as
necessary, to take into account the final CDBG allocation from the U.S. Department of Housing and
Attachments:
1) Resolution No. 2024-C01
2
____________________________________
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. 2024-C01 was duly adopted by the
City Council of the City of Azusa, at a regular meeting of said City Council held on the sixteenth day of
January 2024, by the following vote of the Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
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. Authorize staff to release a Request for Proposal to seek qualified consulting
firms for the provision of CDBG Housing Rehabilitation Services for Fiscal Year 2024-2025.
SECTION 6. The City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED AND ADOPTED this sixteenth day of January, 2024.
SIGNATURES ON PAGE 2
3
PROGRAM YEAR 2024-2025 CDBG ALLOCATION
Estimated New Year Funds: $370,795 Carryover Funds: $70,341
Total Amount Available $441,136
Project
Recommended
Amount
2024-2025 Housing and Neighborhood Improvement
Projects
Single Family Housing Rehabilitation $185,000
Code Enforcement Program* $140,000
Subtotal: $325,000
Public Service Projects
YWCA of San Gabriel Valley $21,136
Neighborhood Homework House $20,000
Subtotal: $41,136
Economic Development
Gladstone Business Incentive Project $75,000
Total $441,136
*Includes CDBG Program management and
administration costs
___________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
APPROVED AS TO FORM:
___________________________________
Best Best & Krieger, LLP
City Attorney