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Home My WebLink About09 CDBG OVERVIEW 11-02-98NO.'9 11-2r98 DATE: NOVEMBER 2, 1998 Inter-Com TO: FROM' WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) OVERVIEW AND DISCUSSION OF ALLOWABLE USE OF FUNDS FOR FISCAL YEAR lOOO aa RECOMMENDATION That the City Council provide input as it deems appropriate. FISCAL IMPACT No City Council action is being requested at this time; therefore, there are no impacts to the General Fund are anticipated. BACKGROUND/OVERVIEW OF CDBG PROGRAM The Federal Housing and Community Development Act of 1974, as amended, created the Commtmity Development Block Grant (CDBG) program to return federal funds to local communities for the purpose of developing viable urban communities by providing adequate housing, suitable living environments, and expanding economic opportunities, specifically for low- and moderate-income persons. Grants are aWarded to communities to implement a wide range of community development activities directed toward neighborhood revitalization, economic development, and the provision of improved community facilities and services. Availability of the funding application will be advertised in the local newspaper and posted at various City Hall locations. Completed applications must be submitted to the Community Development Department by 5:00 p.m. on December 14, 1998. In addition, staff will mail the application to nearly seventy non-profit public service providers and City departments. A list of those organizations receiving applications is included as Attachment I. City Council Report CDBG Overview/Allowable Use of Funds for FY 99-00 November 2, 1998 Page 2 After completed applications have been returned, staffwill keep the City Council informed of upcoming workshops and meetings regarding the CDBG program. Typically, the U.S. Department of Housing and Urban Development (HUD) informs the City of the amount of its annual grant award in January. Staff does not yet know the amount of funds that will be awarded to Tustin for the I999-00 funding year. For the 1998-99 funding year, Tustin received $708,000. Based on projected reduction in overall CDBG funding, we anticipate our total grant award will be approximately $700,000. A maximum of 15 percent of that amount or $105,000 may be awarded to non-profit and public agencies for public service projects; a maximum of 20 percent or $140,000, can be used for administrative activities including planning and studies. Further, a minimum of 70 percent must be used to benefit low- and moderate-income residents. Due to the length of time necessary to complete the federally required citizen participation process, staff initiates the application process 'in November. A tentative timeline for the 1999-00 funding cycle is attached for your information and use. Please see Attachment II. .. CITIZEN PARTICIPATION PROCESS Federal regulations require jurisdictions receiving CDBG funds to provide for and encourage citizens to participate in the process of determining how funds are expended. The steps the City of Tustin has developed to carry out this process are as follows: City Council provides input to 'the staff regarding priorities to consider when reviewing funding applications. Staff will coordinate with the in-house Project Review Committee and Citizen Participation Committee. To initiate the Citizen Participation process, Community Development Department staff provides "Request for Funding" applications to over 70 non-profit public service organizations and all city departments. After receiving completed project applications, an in-house CDBG Project Review Committee evaluates and ranks the funding requests. The Committee is comprised of representatives from various City Departments (Community Services, Public Works, Community Development and the City Manager's office). Funding recommendations of the in-house Project Review Committee are transmitted to a Citizen Participation Committee. The ad hoc Citizen Participation Committee, comprised of members of Tustin's standing commissions, boards and committees (Planning Commission, Parks and Recreation COmmission, Cultural Resources Advisory Committee, and Senior City Council Report CDBG Overview/Allowable Use of Funds for FY'99-00 November 2, 1998 Page 3 Advisory Committee) acts as a citizen'review body. Federal regulations require a jurisdiction to hold at least two public meetings/hearings to obtain the views of citizens on such issUes as housing and other' community development needs specifically related to the use of the CDBG funding. The. ad hoc Citizen Participation committee holds a meeting to receive public input and evaluate suggested funding requests and makes specific recommendations to the City Council. A hearing held by the Council is the second of the two required public hearings. During' the meeting, the Council has the authority to modify the proposed funding allocations or add new qualifying projects. The City Council's decision regarding funding requests and priorities is submitted to HUD in the One-Year Action Plan detailing specific use of the CDBG funds. NATIONAL OBJECTIVES The purpose of CDBG funds is to assist in creating viable urban communities bY providing housing, suitable living enviroments and expanding economic opportunities for low- and moderate-income persons. Communities are permitted to use CDBG funding to develop programs to achieve those goals provided each activity or project funded meets one of three national objectives. Those objectives include: 1. Projects that benefit low and moderate (L/M) income persons. Data from the 1990 Census identified the areas of the city having concentrations of low- and moderate-income persons meeting CDBG requirements. Those areas are illustrated in Attachment III. In addition, certain groups such as the handicapped and the eldefly are presumed to be low- and moderate-income. 2. Projects that aid in the prevention and elimination of slum or blight Tustin's two Redevelopment project areas meet federal requirements for "slum and blighted" areas. The redevelopment project .areas are illustrated in Attachment IV. City Council Report CDBG Overview/Allowable Use of Funds for FY 99-00 November 2, 1998 Page 4 o Programs meeting a particularly urgent community development need This national objective is only applied to areas impacted by natural disasters or civil disturbances. ELIGIBLE ACTIVITIES All projects and activities funded with CDBG monies must fall within a specific category of eligible activities. HUD will audit the City's program to ensure that all projects and programs are eligible ones. The funding of ineligible activities could jeopardize future years' CDBG monies.' Categories of eligible activities include: Acquisition/Disposition of Real Property including: · the purchase of property to meet a national objective; or, · disposition costs such as appraisal, surveys, title reports, etc. Public Facilities and Improvements (acquisition, construction rehabilitation) including: · shelters for homeless, battered spouses; handicapped and other special needs groups · water and sewer facilities · flood and drainage improvements · community, senior and health centers · streets, curbs, gutters, sidewalks, parks, playgrounds Privately Owned Utilities (acquisition, rehabilitation, installation) including: · installation of water lines · underground power lines Clearance/Demolition of Buildings, Structures and Improvements Public Services (new or quantifiable increases to existing services provided by non-profit organizations or city departments) including: · child care · health care · job training · fair housing activities · recreation programs · services for seniors, homeless, handicapped · counseling · the cost of operating and maintaining that portion of a facility in which a public service is located City Council Report CDBG Overview/Allowable Use of Funds for FY 99-00 November 2, 1998 Page 5 Interim Assistance including: · limited improvements to deteriorating areas as a prelude to permanent improvements · activities to alleviate emergency conditions Relocation/Loss of Rental Income Removal of Architectural Barriers ADA Compliance- removal of architectural barriers Housing Rehabilitation New Housing Construction for low- and moderate-income persons and located in eligible areas Code Enforcement H{stofic Preservation Commercial or Industrial Rehabilitation Special Economic Development Business Incubation Job Creation Assistance to For-Profit Businesses Planning and Capacity Building including: · analysis · comprehensive plans · neighborhood plans Program Administration Costs - general CDBG program administration and oversight FUNDING RESTRICTIONS There are three primary restrictiOns that must be adhered to when allocating fimding to specific projects, programs and activities. These restrictions are as follows: 1) Regulations for the CDBG program state that at least 70 percent of a jurisdiction's annual grant must be used to benefit low- and moderate-income persons. In other words, a community cannot focus solely on projects in "slum and blighted" areas. 2) Federal law states that no more than 15 percent of the total grant award to a jurisdiction may be used for public service programs and activities. Therefore, the allocations to non- profit public service providers (Boys and Girls Club, ,Laurel House, Feedback Foundation, Dayle Mclntosh Center, etc.) and in-house city departments (Parks & Recreation Department for staff at the Youth Center) providing public services cannot exceed 15 percent of the year's total CDBG grant. City Council Report CDBG Overview/Allowable Use of Funds for FY 99-00 November 2, 1998 Page 6 3) Federal law also limits the mount of funds spent On administrative activities, including planning stUdies, to a maximum of 20 percent of the grant award. FIVE YEAR PRIORITIES AND OBJECTIVES Attachment V depicts the overall Five-year Consolidated Plan goals, objectives and accomplishments. These goals and objectives were set in 1995 as part of the 1995-00 Consolidated Plan. Please note that FY 1999-00 is the last year of the five-year document. The Council may utilize this table as guidelines in prioritizing needs and activities for FY 1999-00. Associate Planner Community Development Elizabeth A. Binsack Director Commtmity Development \\COMM_DLeV~VOL 1 AK~I~JIJSTIlqA~WORI~.~I' i~l~m fro- c~m ! 1-;l-98.doc Enclosures: Attachment I - (Mailing List) Attachment II- (Tentative Timeline) Attachment III - (Map of Eligible Low- and Moderate-Income Areas) Attachment IV - (Map of Redevelopment Project Areas) Attachment V - Five Year Priorities, Goals and Objectives ATTACHMENT I Mailing List Rowana McCoy Program Manager Easter Seal Society, Inc. 1661 N. Raymond Ave., Suite 100 Anaheim, CA 92801 Kimberlee White Director of Development The Eli Home, Inc. 140 S. Imperial Highway Anaheim, CA 92807 Shirley Cohen Project Director Feedback Foundation, Inc. 1200 N. Knollwood Circle Anaheim, CA 92801 Carol Anne Williams Interval House P.O. Box 3356 Seal Beach, CA 90740 Doug Bistry O.C. Affordable Honsing 23861 El Toro Road, Suite 207 Lake Forest, CA 92640-4733 Sue Ko Executive Director Orange Children & Parents Together 3550 E. Chapman Avenue Orange, CA 92869 Jean Wegener Executive Director Serving People in Need 4921 Birch, Suite 190 Newport Beach, CA 92660 Veteran's Service Dept. 4220 Lemon Street Riverside, CA 92501 Elizabeth Jones C.O.P.E.S. 2025 N. Broadway Santa Ana, CA 92706 Cliff Polston Executive Director Boys & Girls Club of Tustin 580 W. Sixth Street Tustin, CA 92780 Melinda Guinaldo Director Assessment & Treatment Services Center 1981 Orchard Road Newport Beach, CA 92660 Dayle Mclntosh Center 150 W. Cerritos, Bldg. 4 Anaheim, CA 92805 Colin Henderson Executive Director Friendship Shelter, Inc. P.O. Box 4252 Laguna Beach, CA 92652 Clyde Weinman Executive Director Irvine Temporary Housing 15029 Sand Canyon Irvine, CA 92620 Allen Baldwin Executive Director OC Community Housing Corp. 1833 E. 17th Street, Suite 207 Santa Ana, CA 92701 Orange Coast Interfaith Shelter 1963 Wallace Street, Apt. A Costa Mesa, CA 92627 Thomas Whaling Shelter for the Homeless 24621 Ridgewood Circle Lake Forest, CA 92630 John Von Glahn Family Service Association 18001 Cowan, # c-d Irvine, CA 92714-6801 Doris La Magna The Villa Center, Inc. 910 Norfl~ French Santa Ana, CA 92701 Beverly Nestande Olive Crest Homes 2130 E. Fourth Street, Suite 200 Santa Ana, CA 92705 YMCA Community Counseling Servi~s 2 Executive Circle, Suite 280 Irvine, CA 92714 David Quezada Executive Director Fair Housing Council of O.C. 1666 N. Main Street, Suite 500 Santa Ana, CA 92701 Wendy Marohnic Human Options Second Step P.O. Box 9445 South Laguna, CA 92677 Patrick Carroll Life Share 11421 Garden Grove Boulevard Garden Grove, CA 92643 Pamela MeGovem Executive Director OC Council of Aging 18552 McArthur Boulevard, #425 Irvine, CA 92715 Warren Johnson O.C. Administration Salvation Army 10200 Pioneer Road Tustin, CA 92780 Jim Miller Executive Director Shelter for the Homeless 8291 Westminster, Suite 215 Westminster, CA 92683 Lynne Tsuda Central Orange County YWCA 146 North Grand Street Orange, CA 92866 Helen Anderson Hunger Coalitions 14452 Wiideve Lane Tustin, CA 92780 Helen Brown Civic Center Bardo 431 S. Bristol, Suite #6 Santa Ana, CA 92703 Donna Core Coordinato~ Meals on Wheels 600 E. Washington Santa Aha, CA 92707 Assistance League of Tustin P.O. Box 86 Tustin, CA 92780 Randy Wenz Orange County Council 3590 Harbor Gateway North Costa Mesa, CA 92626 Suzanne Guthrie Four H Clubs of Orange County 1045 Aflin~on drive Costa Mesa, CA 92626 John Marder Chairman Laurel House 13722 Fairmont Way Tustin, CA 92780 Mary Atkinson Smith The Blind Children's Leaming Center 18542-B Van&flip Avenue Santa Ana, CA 92705 Families First 12012 Ma~olia Street Garden Grove, CA 92641-3346 Jon Schlemmer St. Vincent de Paul Center for Reconciliation 777 South Main Street, Suite 200 Orange, CA 92868 Lila Lieberthal Jamboree Housing Corp. 2081 Business Center Drive Irvine, CA 92714 Sister Marie Therese Executive Director Lestonnac Free Clinic 1215 E. Chapman Avenue Orange, CA 92869 Tustin Area Historical Society & Museum 395 E1 Camino Real Tustin, CA 92780 Joan Basile Director Mary's Shelter 17671 Anglin Lane Tustin, CA 92780 Barbara Resnick Western Dev. for Affordable Housing 2720 E. Walnut, Suite 8 Orange, CA 92867 Mary Hadley Info Line Orange County 2081 Business Center Drive, suite 130 Irvine, CA 92715 Judy Johnson ESA/Corporate Office 23861 El Toro Road Lake Forest, CA 92640-4733 Senior Citizens Legal Advocacy Program Legal Aid Society of Orange County 902 N. Main Street Santa Aha, CA 92701 Jim Lynch Tustin Chamber of Commerce 399 El Camino Real Tustin, CA 92780 Jennifer Feldstein Women Helping Women 661 Hamilton, #650 Costa Mesa, CA 92627 Larry Haynes Executive Director Mercy House Transitional Living Ctr. P.O. Box 1905 Santa Aha, CA 92702 Elmer Hothus Director of Development Christian Temporary Housing Facility 704 N. Glassell Street Orange, CA 92867 Pat Davis Executive Director Big Brothers & Sisters of OC 150 Yorba Street Tustin, CA 92780 Joyce Riley Learning Disabilities of Souther Calif. P.O. Box 3772 Santa Aha, CA 92799 Elaine Lintner OCSPCA-Paws 5660 Avenida Antigua Yorba Linda, CA 92687 Roger Moore Lutheran Social Srvc. of Southern Calif. 704 N. Glassell Street Orange, CA 92867 Bob Winandy Adminisuative Office Pilgrimage Family Therapy 25231 Pasco De Alicia, Suite 205 Laguna Hills, CA 92653 Susan Knopick Children's Bureau of So. Calif. 50 S. Anaheim Boulevard Ananheim, CA 92805 Community Services Program 16842 Von Karman, Suite 425 Irvine, CA 92714 Susan Stokes Turning Point Center for Families 2101 E. 4th Street, #150-B Santa Am, CA 92705-3814 Vanessa Bnmer Learning for Life 3590 Harbor Gateway North Costa Mesa, CA 92626 Theresa Marji Legal Aid of Orange County 902 N. Main Street Santa Ana, CA 92701 Probation Community Action Assoc. I 111 N. Main Street, # 176 Santa Aha, CA 92701 John Drew Family Solutions 203 N. Golden Circle Drive, #101 Santa/ma, CA 92705 Jerry Caminiti Disability Awareness Coalition 3773 University Drive, #118 Irvine, CA 92612 Susan Alexander New Horizons 13821 Newport Avenue Tustin, CA 92780 Becky Johnson Alliance for the Mentally II! 621 S. "B" Street, Suite B Tustin, CA 92780 Julie Damon The Seed Institute 6271 Tarssa Lane Mission Viejo, CA 92691 Tim Shaw Orange County Homeless Issues Task Force 18012 Mitchell Avenue Irvine, CA 92714 Mardan Center of Educational Therapy 10sbom Irvine, CA 92604 Tim Wells Episcopal Service Alliance 1872 Drew Way Orange, CA 92869 Marge Kasalek Tustin Public School Foundation 642-B South "B" Street Tustin, CA 92780 S:\CDDb'USTINA\WORD\99-00 mailing labels.doc ATTACHMENT II Timeline for FY 1999-00 PRELIMINARY TIMELINE FOR FY 1999-2000 CDBG CITIZEN PARTICIPATION/APPLICATION PROCESS DATE ACTION 11/2_/98 11/05/98 11/11/98 11/13/98 11/16/98 12/14/98 12/22/98 01/06/99 01/14/99 01/22/99 01/27/99 02/03/99 02/18/99 02/26/99 Transmit CDBG-related materials to City Council as an informational "receive and file" memo/report and application package for 1999-00 funding cycle. Packet to include: guidelines for eligible projects and activities; guidelines for citizen participation committee. Obtain input on funding priorities for upcoming grant year. Fax notice of availability of "Request for Funding" application to newspaper. Mail application packets to non-profit organizations on existing list, distribute "Request for Funding" applications to City Departments Publish notice availability of "Request for Funding" applications. City Department Project Suggestion meeting. Deadline for project proponents, including non-profits and City departments, to return "Request for Funding" applications. Distribute packet of non-profit and city-project funding requests to in-house Staff Review Committee. In-house Staff Review Committee meeting to rank non-profit and city agency proposals Fax notice of Citizen Participation Committee Meeting to the newspaper. Publish - Notice of Citizen Participation Committee Meeting. Ad Hoc Citizen Participation Committee training session. Hold first Citizen's Participation Committee meeting (first required public hearing) to obtain citizens' views on possible proposed use of CDBG funds. Fax notice of availability of Action Plan for 30-day public comment period to newspaper. Completion of one-year Action Plan, the component of the Consolidated Plan to be submitted annually., Publish - Notice of availability of one-year Action Plan (30 day comment pedod). 03/02/99 to 03/31/99 04/01/99 04~09~99 04/15/99 04/19~99 05/03/99 05/15/99 07/01/99 30-day public comment pedod on the Action Plan. Fax Notice of City Council public hearing on Action Plan and funding allocation Publish Notice of City Council public headng on Action Plan and funding allocation End of 15-day pedod for City to respond to public comments. Hold City Council public hearing on Action Plan and funding allocation(second required public hearing). Possible continuation of City Council public headng on the Action Plan and funding allocation. Last day to submit Consolidated Plan to HUD (45 days prior to beginning of funding year). Fiscal Year 1999-00 begins. \~COM M_DEV~VOL I~SHARED~CDD-RDA~CDDUUSTINA\VVORD~TIMELIN E 1999-2000.doc OF ORAIIBE // / / il // // /iI t! ORAI~ / //' II1¥1~ .CITY OF TU TII ORANGE COUNTY, CALIFORNIA CDBG LOW-MOD TARGET AREAS ATTACHMENT MARINE CORPS AiR STATION CITY OF TUSTII ORANGE COUNTY, CALIFORNIA CITY OF ORANGE COUNTY OF ORANGE REDEVELOPMENT PROJECT AREAS ~ TOWN CENTER i SOUTH CENTRAL ATTACHMENT IV