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HomeMy WebLinkAbout02 CDBG FUNDS AMEND. 02-20-01..' AGENDA i; .PORT II I II I I I II NO. 02 02-20-01 I I MEETING DATE' TO: FROM' SUBJECT: FEBRUARY 20, 2001 WILLIAM HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT AMENDMENT TO THE 1997-98 AND 1999-00 ACTION PLANS FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS RECOMMENDATION That the City Council adopt Resolution No. 0.1-15 amending the Action Plans for Fiscal Year 1997-98 and 1999-00. FISCAL IMPACT The proposal involves the reallocation or redistribution of CDBG funds between previously approved projects. No impacts to the General Fund are anticipated. PROPOSED AMENDMENTS / FUNDS REALLOCATIONS In May of each fiscal year, the City submits to U.S. Department of Housing and Urban Development (HUD) a one-year Action Plan as an application to receive the Community Development Block Grant (CDBG) funds. The Action Plan describes the activities that the City will undertake during the program year to address the priority needs of housing and community development. The Action Plan also describes program budget for disbursement of CDBG funds to the activities that will be undertaken during the fiscal year. The Community Development Department is proposing to amend the submitted Action Plans by reallocating funds from slower moving activities to more active activities. The amendment is necessary to comply with HUD timeliness requirement. Federal Law Section 573.902(a)(1)(i) related to CDBG program indicates that HUD will consider an entitlement recipient (City) to be failing to carry out its CDBG activities in a timely manner if, sixty days prior to the end of current program year, the amount of entitlement grant funds available is more than 1.5 times of the entitlement grant amount for the current program year. The proposed amendment would reallocate funds from MCAS-Tustin street construction to two (2) active projects. The Valencia/Armstrong street construction project is on hold pending the Department of Navy releasing the land to the City. The amendment, if City Council Meeting February 20, 2001 Page 2 approved by the City Council, would allow the City to continue to draw down CDBG funds to meet the timeliness requirements. The amendments are proposed as follows: · Fiscal Year 1997-98 From Valencia/Armstrong Street Construction activity to the CDBG target Area Sidewalk Improvement activity- Amount $20,000. · Fiscal Year 1999-00 From Valencia/Armstrong Street Construction activity to the CDBG target Area Sidewalk Improvement activity- Amount $60,000. From Valencia/Armstrong Street Construction activity to Old Town Streetscape improvement activity- Amount $122,000. in accordance with Federal Law, the City has published a notice in the local newspaper with regard to the proposed amendment. Staff recommends that the City Council support the amendments to the Action Plans for FY 1997-98 and 1999-00. Associate Planner Elizabeth A. Binsack Director of Community Development Attachment: Resolution No. 01-15 \\COMM_DEV~VOLI\SHARED\CDD-RDA\CDD\CCR EPORT~cdbg reallocation.doc 14 20 2! 22 23 24 25 26 2? 2g 29 RESOLUTION NO. 01-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING AMENDMENTS TO THE CITY'S 1997-98 AND 1999-00 ACTION PLANS FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND AUTHORIZING SUBMISSION OF THE AMENDMENTS TO THE FEDEP~L DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, under the Housing and Community Development Act of 1974, as amended, Federal assistance may be provided for the support of community ---:;' development activities which area directed toward certain specific objectives as ,...,," set fort in the Act as the Community Development Block Grant; and WHEREAS, previously funded programs and projects have not been initiated and remain inactive and funds remain unexpended; and WHEREAS, it is important that the City of Tustin expend CDBG funds expeditiously to meet the timeliness requirement; and WHEREAS, funds must be reallocated to other eligible activities prior to expenditure; and WHEREAS, citizens were notified of the proposed changes in use of CDBG funds through a legal notice published in the local newspaper; and WHEREAS, the City Council considered the amendments at the meeting on February 19, 2001. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1' as follows: The amendments to the City of Tustin's Action Plans shall be Fiscal Year 1997-98 From Valencia/Armstrong Street Construction activity to the CDBG target Area Sidewalk Improvement activity- Amount $20,000. l0 ]? 20 2! 22 24 25 26 2? 28 29 Fiscal Year 1999-00 From Valencia/Armstrong Street Construction activity to the CDBG target Area Sidewalk Improvement activity- Amount $60,000. From Valencia/Armstrong Street Construction activity Streetscape improvement activity-Amount $122,000. to Old Town Section 2' Staff is hereby directed to prepare and submit the amended Action Plans for FY 1997-98 and 1999-00 to the Federal Department of Housing and Urban Development reflecting Council's direction for the City's funding allocations to eligible program activities. Section. 3: the City Manager of the City of Tustin or his designated representative, such as the Director of Community Development, is authorized to execute documents, certifications, contractS or other instruments as may be required to carry out the City's Community Development Program. Section 4' The City Clerk shall certify to the adoption of this Resolution and shall file a copy of said application with the' minutes of this City Council meeting. PASSED AND ADOPTED at a regular meeting of the Tustin City Council, held on the 19th day of February, 2001. Tracy Wills Worley Mayor Pamela Stoker City Clerk