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01 CDBG FUNDS 04-20-98
NO 1 · · ' i ~ 4-20-98 ! DATE: TO' FROM' SUBJECT: APRIL 20, 1998 Inter-Com WILLIAM A. HUSTON, CiTY MANAGER ADOPTED RESOLUTION NO. COMMUNITY DEVELOPMENT DEPARTMENT ~~" ~~ ~,,,..:/ ~ .~ FY'1998-99 ACTION PLAN AND PROPOSED USE OF COMMUNITY~9/?-/z' DEVELOPMENT BLOCK GRANT (CDBG) FUNDS RECOMMENDATION That the City Council adopt Resolution No. 98-30 approving the proposed use of Community Development Block Grant (CDBG) funds for inclusion in the one-year Action Plan for Fiscal Year 1998-99. FISCAL IMPACT The proposed 1998-99 programs and expenditures will be implemented with CDBG funds. No impacts to the General Fund are anticipated. oVERVIEW OF ONE-YEAR ACTION PLAN The Housing and Community Development Act of 1974, as amended, established the Community Development Block Grant (CDBG) program to return federal funds to local communities for the purpose of developing viable urban communities by providing decent housing, suitable living environments, and by expanding economic opportunities, specifically for Iow and moderate income persons. To participate in the CDBG program, each jurisdiction is required to prepare a Consolidated Plan, "The Plan", a five-year planning document intended to identify a jurisdiction's overall needs for affordable and supportive housing, community development, public services, and economic opportunities. The Plan also outlines a five-year strategy for addressing those needs and identifies resources and programs which might assist in meeting these goals. A section of the Consolidated Plan, called the one-year Action Plan, serves as the City's application to HUD for CDBG program funding. The City must submit an Action Plan annually to receive the entitlement money. The purpose of the Action Plan is to detail how the City will spend its annual allocation of funds to meet community needs identified in the City Council Report FY 1998-99 Action Plan April 20, 1998 Page 2 Consolidated Plan. This Action Plan, as required by federal regulations, must be available for public review for a period of not less than 30 days. The City advertised the availability of this document in the Tustin Weekly. The review period began on March 2, 1998 and ended on March 31, 1998. This document may be amended based on the City Council's action at this meeting. HUD mandates that the Action Plan must be submitted no later than May 15, 1998. BACKGROUND/OVERVIEW OF CDBG PROGRAM REGULATIONS The City will receive $708,000 of CDBG funds for Fiscal Year 1998-99. These funds are allocated on a formula basis to cities to carry out activities that provide opportunities to develop viable urban communities. Communities are permitted to develop their own programs and funding priorities, as long as each activity meets one of the three CDBG National Objectives. These objectives are projects that: 1) 2) 3) Benefit Iow- and moderate-income persons; Aid in the prevention or elimination of slums or blight; Meet community development needs having .a particular urgency (conditions that pose serious or immediate threat to the health or welfare of the community, where other sources of funding are not available). The program also requires that at least 70 percent of the total CDBG fUnds must be used 'for activities that benefit Iow- and moderate-income persons over a one-, two-, or three- year period; and individual activities designed to benefit Iow- and moderate-income persons must assist at least 51 percent Iow- and moderate-income persons. To assure that activities will meet the National Objectives, HUD established guidelines for Eligible and Ineligible activities. Eligible activities include: Housing related type of activities Removal of Architectural Barriers to Public Facilities Rehabilitation and Preservation Activities Public Facilities and Improvements Public Services Activities Economic Development Activities Planning and Program Administration, etc. In addition, the program also limits the amount of allocation for Public Services activities and Program Administration. A maximum of 15 percent ($106,200) of the total grant award may be allocated to Public Services types of activities. A maximum of 20 percent ($141,600.00) of the total grant award may be expended on administrative and planning activities. City Council Report FY 1998-99 Action Plan April 20, 1998 Page 3 EVALUATION OF FUNDING REQUESTS In November of 1997, the City published a Notice Availability of Funding Application (NOFA) of CDBG funds in the Tustin Weekly and also sent application packages to over 70 non-profit organizations and City of Tustin's various departments. On December 1, 1997, the City Council provided direction, to staff and the Citizen Participation Committee regarding priorities for the disbursement of the Fiscal Year 1998- 99 CDBG funds. The Council indicated that funds should be allocated to youth programs and other types of activities which benefit the greatest number of Tustin residents. The Council also identified City-operated or City-assisted youth programs, such as those provided at the Boys and Girls Club, Tustin Family Youth Center, Feedback Foundation, and Orange Children and Parents Together as high priorities. As a result of the NOFA, 23 completed applications were received totaling $848,629.00 in funding requests. These requests consisted of $264,992.00 from Public Services (non- profits) category and $583,637.00 from Non-Public Services category. The request for the Public Services Category exceeded the maximum allowable allocation by $158,792.00 or 149 percent. An in-house CDBG Project Review Committee evaluated and ranked the Public Services funding requests. The Project Review Committee is Comprised of representatives from various City Departments (Community Services, Public Works, Community Development, Finance, and the City Manager's Office). The City Council's direction and the criteria identified as Attachment B was used in the ranking process.' Funding recommendations of the in-house Project Review Committee were transmitted to the Citizen Participation Committee. On February 18, 1998 the City held a public hearing (first of the two required public hearings) and invited all interested organizations and citizens to participate in the CDBG process. The workshop/meeting was conducted by the Citizen Participation Committee comprised of members of City of Tustin standing commissions, boards and committees (Planning COmmission, Parks and Recreation Commission, Cultural Resources Advisory Committee, and Senior Advisory Committee). The purpose of the meeting was to review, evaluate and make a recommendation to the City Council on the disbursement of 1998-99 CDBG funds. As a result of the public input received during the hearing, the Committee modified the CDBG Project Review Committee's recommendation by: reducing the funding amount from City of Tustin Parks and Recreation Services Department, Laurel House, Easter Seal Society and Assessment and Treatment Center by $2,500, $2,000, $1,000, and $1,100 respectively; and increasing the funding amount for the Boys and Girls Club at Heideman School from $2,400 to $9,000. City Council Report FY 1998-99 Action Plan April 20, 1998 Page 4 The following reflects the Citizen Participation Committee's final recommendation: Public Services Activities (Maximum Funding - $106,200) Tustin Community Services Department (Tustin Family Youth Center Staff) $ 37,800 Graffiti Removal - CDBG target areas $ 7,500 Feedback Foundation, Inc. (Project TLC) $15,000 Orange Children and Parents Together, Inc. (Headstart Pre-school Program - facility rent) $ 20,000 Boys and Girls Club of Tustin. ("Branch" Boys and Girls School at Heideman School) $ 9,000 Assessment and Treatment Services Center (Youth/Family Counseling Center) $ 8,900 Laurel House (Temporary Housing for Teenager in Crisis) $ 8,000 Public Services Subtotal $106,200 Public Facilities and'Improvements Valencia Avenue/Armstrong Avenue Construction $430,000 Boys & Girls Club of Tustin (Facility Improvements/Renovation) $ 38,163 Rehabilitation and Preservation Activities Code Enforcement (Southwest Neighborhood) $ 57.500 Other Projects Subtotal $525,663 Program Administration and Planning Activities (Maximum Funding - $141,600) Fair Housing Counseling Agency $11,137 CDBG Program Administration (Salary and Contingency) $ 45,000 MCAS-Tustin Marketing Strategy and Media Plan $ 20,000 Administration & Planning Subtotal $ 76,137 Grand Total for all Activities $708~000 City Council Report FY 1998-99 Action Plan April 20, 1998 Page 5 Note: Due to the number of applications received, staff developed a chart listing/ranking all applications received (see Attachment C) to facilitate the Council in making the final decision. Complete applications can be reviewed at the Community Development Office and will be available at the April 20th City Council Meeting. The hearing held by the Council is the second of two required public hearings. All organizations and agencies returning funding applications to the City were notified of the hearing. This public hearing also was advertised in the Tustin Weekly, a newspaper of general circulation. The Council may modify the recommended funding allocations; hoWever, Public Services category is limited to a 15 percent maximum allocation ($106,200). A change in allocation amount of an activity under the Public Services category would result in a change of funding amount of other activities within the same category. The Council's decision regarding funding allocation and priorities will be incorporated within the Action Plan and will be submitted to HUD by May 15, 1998. When final approval has been given by HUD, each public services/non-profit organization receiving funds will be asked to enter into agreements with the City requiring compliance with all federal CDBG regulations relating to reporting, auditing, labor standards, etc. All CDBG funds are distributed on a reimbursement basis; typically, no disbursement of monies can be made until expenses are incurred and documented to benefit the intended program. Justina Willkom Associate Planner ~~ A.-Bins~l~ ' - Director of Community Development ATTACHMENTS: o 2. 3. 4. Resolution No. 98-30 Attachment A (Draft Action Plan) Attachment B (Evaluation Criteria) Attachment C (Table of Request for Funding Applications) f:~u sers~justina~:lbg98~staffccm Attachment A City of'Tustin 1998-99 Action Plan: One-Year Use of Community Development Block Grant (CDBG)Funds TABLE OF CONTENTS Executive Summary ............................................................ i A. Form Application - Standard Form 424 .......................................... 1 B. Housing and Community Development Resources ................................. 3 C. Activities to be Undertaken ................... . ................................ 9 D. Geographic Distribution ...................................................... 33 E. Homeless and Other Special Needs ............................................ 36 F. Other Actions .............................................................37 G. Program-Specific Requirements .............................................. 40 Certifications ................................................................ 41 Support of Applications by Other Entities Report ..................................... 49 Funding Sources ..............................................................50 LIST OF TABLES Table Available Public and Private Resources for Housing and Community Development Activities .............................. 3 Potential Public and Private Resources for Housing and Community Development Activities .............................. 5 3 Housing Needs ......................................................... 15 4 Special Needs/Non-Homeless Needs .......................................16 5 Community Development Needs .......................................... 17 6 Listing of Proposed Projects .............................................. 20 7 Listing of Homeless and Other Special Needs Activities ........................ 36 EXECUTIVE SUMMAR Background The Consolidated Plan for the City of Tustin, a five-year planning document submitted to the U.S. Department of Housing and Urban Development (HUD) in May of 1995, introduced a new consolidated application process for major HUD entitlement grants, including the Community Development Block Grant (CDBG) program. The Consolidated Plan identifies the City's overall housing and community development needs and outlines a strategy to address those needs for low- and moderate-income persons and families. One section of the Consolidated Plan, called the Action Plan, details a community's specific, use of funds for one grant year. An Action Plan is required annually for each of the five years covered by the Consolidated Plan. Programs and projects indicated in the Action Plan address needs identified in the Consolidated Plan. Organization of the 1998-99 Action Plan The City of TUstin Action Plan for Fiscal Year 1998-99 contains all federally required sections. Those include:' · Standard Form 424 Housing and Community Development Resources A description of available and 'potential private and public funding sources. Activities to be Undertaken A description of community needs indicated in the Consolidated Plan and a list of projects and programs funded'with 1998-99 CDBG funds allocated to the City of Tustin. Geographic Distribution Maps indicating eligible for CDBG funded projects and a map showing the location of projects funded with Fiscal Year 1998-99 CDBG monies. Homeless and Other Special Needs A description of Fiscal Year 1998-99 activities targeting the needs of the homeless. Other Actions A description of actions the City of Tustin will undertake to meet underserved needs. Specific Program Requirements A description of CDBG funds expected to be available during the 1998-99 program year. Certifications and Miscellaneous HUD required certifications and assurances. One'Year Use of Funds The City of Tustin has allocated. CDBG funds to a variety of eligible projects to meet community housing and non-housing needs. For Fiscal Year 1998-99 the City of Tustin will receive $708,000 of CDBG funds through the U.S. Department of Housing and Urban Development. The following is a listing of all activities funded for FY 1998-99: Public Services Activities (Maximum Funding - $106,200) Tustin Community Services Department (Tustin Family Youth Center Staff) $ 37,800 Graffiti Removal - CDBG target areas $ 7,500 · Feedback Foundation, Inc. (Project TLC) $15,000 Orange Children and Parents Together, Inc. (Headstart Pre-school Program - facility rent) $ 20,000 Boys and Girls Club of Tustin ("Branch" Boys and Girls School at Heideman School) $ 9,000 Assessment and Treatment Services Center (Youth/Family Counseling Center) $ 8,900 Laurel House (Temporary Housing for Teenager in Crisis) $ 8.000 Public Services Subtotal $106,200 Public Facilities and Improvements Valencia Avenue/Armstrong Avenue Construction $430,000 Boys & Girls Club of Tustin (Facility Improvements/Renovation) $ 38,163 Rehabilitation and Preservation Activities Code Enforcement (Southwest Neighborhood) $ 57,500 Other Projects Subtotal $525,663 Program Administration and Planning Activities (Maximum Funding - $141,600) Fair Housing Counseling Agency $11,137 CDBG Program Administration (Salary and Contingency) $ 45,000 MCAS-Tustin Marketing Strategy and Media Plan $ 20,000 Administration & Planning Subtotal $ 76,137 Grand Total for all Activities .$708,000 ACTION PLAN: ONE YEAR USE OF FUNDS The Action Plan delineates the City of Tustin's funding priorities and allocations for the use of Program Year 1998-99 Community Development Block Grant (CDBG) funds. The Plan describes: the resources available for program implementation; activities to be undertaken during the year; programs for the City's homeless and other special needs groups; and, other actions taken by the City. that have or will be undertaken to implement the Action Plan. A. Form Application- Standard Form 424 is attached. Application for Federal Assistance 1. Type of Submission: Application: Non - Construction Preapplication: 2. Date Submitted 05/15/98 3. Date Received by State 4. Date Received by Federal Agency Applicant Identifier · B-98-MC-06-0583 State Application Identifier Federal Identifier 5. Applicant Information Legal Name Organizational Unit City of Tustin Community Development Department Address ContaCt 300 Centennial Way Tustin, CA 92780 Orange 6. Employer Identification Number (EIN): 956000804 8. Type of Application: Type: Continuation 10. Catalog of Federal Domestic Assistance Number: Catalog Number: 14-218 Assistance Title: Title I - Community Development Block Grant 12. Areas Affected by Project: City of Tustin Justina Willkom, Associate Planner (714) 573-3174 7. Type of Applicant: Municipal 9. Name of Federal Agency: U.S. Dept. of Housing & Urban Development 11. Descriptive Title of Applicant'sproject: Community Development'Block Grant Program (FY 1998-99) One-Year Action Plan: To provide funding for eligible activities to beneffi Iow- and moderate-income persons and eliminate slum and blight. 13. Proposed Project: Start Date I Start Date 07/01/98 I 06/30/99 15. Estimated Funding: a. Federal b. Applicant c. State d. Local e. Other f. Program Income g. Total $708,000 $0 $0 $0 $0 $0 $ 708,000 14. Congressional Districts of: ' I a. Applicant b. Project 4b"th and 47th Districts 46th and 47th Districts 16. Is Application Subject to Review by State Executive Order 12372 Process? Review Status: Program not covered 17. Is the Applicant Delinquent on Any Federal Debt? No 18. To the best of my knowledge and belief, all data in this application/preapplication are true and correct, the document has been duly authorized by the governing body of the applicant and the applicant will comply with the attached assurances if the assistance is awarded. a. Typed Name of Authorized Representative Elizabeth A. Binsack d. Signature of Authorized Representative lb. Title Director of Comm. Dev. c. Telephone Number (714) 573-3118 e. Date Signed 05/08/98 B. Resources There are numerous potential sources 'of funding which might enable the City of Tustin to address priority housing and community development needs and specific objectives identified in the Strategic Plan component of the Consolidated Plan. However, actual financial resources currently available to the City are somewhat limited. A variety of resources must be used to attain the City's goals and objectives, described in the Consolidated Plan. Throughout the fiscal year, the City will continue to pursue additional funding opportunities. The City's goal is to leverage, to the maximum extent feasible, the use of available federal, state, local funds with private monies in the creation of viable communities, development of affordable housing, and the maintenance and preservation of existing housing. To ensure the financial feasibility of a project, the City will consider the use of funds from other sources, such as Redevelopment Housing Set-Aside Funds, to further affordable housing and community development goals whenever a match, grant or loan is necessary or appropriate. The City of Tustin does not currently own property which is available to be used for provision of housing and suitable living environments or expanding economic oppommities primarily for 10w- and moderate-income persons. The following resources are anticipated to be available for the 1998-99 fiscal year: TABLE 1 AVAILABLE PUBLIC AND PRIVATE RESOURCES FOR FY 1998-99 HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES Program Program Name Description Eligible Activities Type a. Formula/ Community Development Grants awarded to the · Acquisition Entitlement Block Grant (CDBG) City on a formula · Rehabilitation 1998-99 Funding - basis for housing and · Economic $708,000 community Development development · Homeless activities. Assistance · Public Services · Public Improvements/ Facilities · Code Enforcement · Planning HOME Flexible grant program · Acquisition Funding - $190,000 awarded to the City on · Rehabilitation allocated a formula basis for · Home Buyer under Urban County housing activities. Assistance Program · Rental Assistance Program Program Name Description Eligible Activities Type Mortgage Credit Income tax credits · Home Buyer Certificate Program available to first-time Assistance Funding - $300,000 homebuyers for the purchase of new or existing housing. Local agencies (County) make certificates available. b. Competitive McKinney Act Assistance for · Rehabilitation Programs Supportive Housing transitional housing for · New Construction Program (SHP) - single men and women. $1,050,552 Tustin Redevelopment 20 percent of Agency · Acquisition Agency Housing Set-Aside funds are set aside for · Rehabilitation affordable housing · New Construction activities governed by state law. a. Multi-Family Assistance to owners of · Rehabilitation Residential Rehab - multi-family projects Loan/Grant Program occupied by low- Funding - $275,000 income persons. b. Single-Family Assistance to low- · Rehabilitation Residential Rehab - income owners Loan/Grant occupying single family Program Funding - dwellings. $75,00O c. Business Assistance to promote · Business start-up Development the -development of new assistance Assistance businesses. · Technical assistance · Site locating & space planning d. Business Financing Financial assistance and · Property acquisition Assistance incentives to promote · On-site & off-site business growth impr. ovements · Industrial development bonds · Tax increment financing · Micro loans e. Employment Assistance focused on · Tax credits for job Assistance the hiring and retention creation ,. of employees. · Employee home purchase or rental programs · Technical assistance TABLE 2 POTENTIAL PUBLIC AND PRIVATE RESOURCES FOR FY 1998-99 HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES Program Type Program Name Description Eligible Activities a. Formula/ Housing OpPortunities for Entitlement and · Acquisition Entitlement Persons with AIDS (HOPWA) Competitive Grants for · Rehabilitation Housing Assistance and · Support Services Supportive Services for PWAs. Grants are awarded to the region on a formula basis and administered by County. b. Competitive HOPE ~ Home ownership · Public Housing Programs assistance awarded on a Ownership (HOPE1) competitive basis, · Home Ownership of requires non-federal Multi-Family Units matching funds. (HOPE 2) · Home Ownership for Single-Family Homes (HOPE 3) McKinney Act Grants to improve quality · Homeless Assistance a. Emergency Shelter Grants of existing (Acquisition, New (ESG) shelters/increase number Construction, of new shelters for the Rehabilitation, homeless. Funds are Conversion, Support awarded to local non- Services) profits through the state/county. b. Supportive Housing Assistance for transitional · Acquisition Program (SHP) housing for homeless · Rehabilitation individuals and families · New Construction and permanent housing · Operating Costs for handicapped · Supportive Services homeless. c. Shelter Care Plus Program Supportive housing and · Rental Assistance (S&C) services for persons with disabilities - Grants for rental assistance offered with support services to homeless with disabilities and disabled households. d. Section 8 Moderate Funds for rehabilitating · Rehabilitation Rehabilitation Single single room units within a · New Construction Room Occupancy Program building of up to 100 (SRO Section 8). units. The provision of supportive services is optional , Program Type Program Name Description Eligible Activities Section 8 Rental assistance · Rental Assistance Rental Assistance Program payments to owners of private market rate units on behalf of very low income tenants. Administered by County housing authority. Section 202 Supportive Housing for · Acquisition the Elderly - Grants to · Rehabilitation non-profit developers of · New Construction supportive housing for the · Rental Assistance elderly. · Support Services Section 811 Grants to non-profi~t · Acquisition developers of supportive · Rehabilitation housing for persons with · New Construction disabilities, including · Rental Assistance group homes, independent living facilities and intermediate care facilities. Emergency Shelter Program Grants awarded to non- · Support Services profit organizations for shelter support services. Mobile Home Park Funds awarded to mobile · Acquisition Conversion Program home park tenant · Rehabilitation organizations to convert mobile-home parks to resident ownership. Rental Housing Construction Assistance for new · New Construction Program (RHCP) construction of rental units affordable to low income households. Pre-development Loan Loans for Pre- · Acquisition Pr%re'am (PLP) - Urban and development costs or · Pre-development Costs Rural "seed" money to nonprofit corporations and local governments. California Housing Finance Below market rate · New Construction Agency (CHFA) financing offered to · Rehabilitation a. Multiple Rental Housing builders and developers of · Acquisition of Programs multiple-family and Properties from 20 to elderly rental housing. 150 units Tax exempt bonds provide below-market mortgage money. Program Type Program Name Description Eligible Activities b. Minority and Small Encourages minority and ® New Construction Business women-owned businesses Development Program in CHFA program to provide affordable housing. c. Self Help Housing Program Homebuyer loans where ® New Construction down payment is · Home Buyer Assistance provided by owner/builder labor or "sweat equity." d. Home Mortgage Purchase CHFA sells tax-exempt · Home Buyer Assistance Program bonds to make below market loans to first time homebuyers. Program operates through participating lenders who originate loans for CHFA purchase. Low Income Housing Tax Tax credits available to · New Construction Credit (LIHTC) individuals and · Rehabilitation corporations that invest in · Acquisition low income rental housing. Tax credits sold to corporations and people with high tax liability, and proceeds are used to create housing. California Homeownership Assistance to families at · Home Buyer Assistance Assistance Program (CHAP) or below the area median income. California Self-Help Housing Grants, loans and · Rehabilitation Program (CSHHP) mortgage assistance to · New Construction low- and moderate- income families improving property with their own labor. State/Local Rental Housing Assistance to multi-family · New Construction Program development sponsored by non-profit organizations or to which a local jurisdiction has made a loan or grant of a minimum of 10% of the development cost. Small Multi-Family Mortgage Loans for small lOw- · New Construction Program income multi-family housing projects. Program Type Program Name Description Eligible Activities Tax Exempt Affordable Mortgage loan assistance · Acquisition Mortgage Program (TEAM) for multi-family rental · Rehabilitation housing for low-income · New Construction households. Single-Family Housing Home Mortgage loan assistance · Home Buyer Assistance Mortgage Purchase Program - to low- and moderate- income families. a. First Time Homebuyer b. Developer/Builder Construction financing · New Construction assistance to developers building affordable single-family housing. Self-Help Building Assistance Interim financing to non- · Site Acquisition Program profit organizations · Pre-Development sponsoring self-help · New Construction housing project~,. California Housing Low interest loans for the · Rehabilitation (Repair- Rehabilitation Program - rehabilitation of of Code Violations, a~ Owner Component substandard homes owned Accessibility (CHRP-O) and occupied by lower- Improvements, Room income households. City Additions, General .. and non-profits sponsor Property Improvements) housing rehabilitation projects. b. California Housing Low interest loans for the · Rehabilitation Rehabilitation Program - rehabilitation of Repair of Code Renter Component substandard homes owned Violations, (CHRP-R) and occupied by lower- Accessibility income households. City Improvements, and non-profits sponsor Room Additions, housing rehabilitation General Property projects. Improvements Federal National Mortgage Loan applicants apply to Association (Fannie Mae): participating lenders for the following programs: a. Community Home Buyers Fixed rate mortgages · Home Buyer Assistance Program issued by private mortgage insurers. b. Community Home Mortgages which fund the · Home Buyer Assistance Mortgage Improvement purchase and · Rehabilitation Program rehabilitation of a home. c. Fannie Neighbors Low Down-Payment · Home Buyer Assistance Mortgages for Single Family Homes in underserved low-income and minority communities. Program Type Program Name Description Eligible Activities d. Savings Association Pooling process to fund New Construction of Mortgage Company Inc. loans for affordable single family and (SAMCO). ownership and rental multiple family rentals, housing projects. Non- cooperatives, self help profit and for profit housing, homeless developers contact shelters, and group member institutions, homes for the disabled. California Community Non-profit mortgage · New Construction Reinvestment Corporation banking consortium · Rehabilitation (CCRC) designed to provide long- · Acquisition term debt financing for affordable multi-family rental housing. Non- profit and for-profit developers contact member banks. Federal Home Loan Bank Direct subsidies to non- · New Construction Affordable Housing Program profit and for-profit developers and public agencies for affordable low income ownership and rental projects. Ce Activities to be Undertaken Table 3, 4 and 5 depict the City of Tustin's Housing, Special Needs/Non- Homeless and Community Development needs and estimates funding amounts to address those needs during the five-year period covered by the plan (July 1, 1995 to June 30, 2000). CDBG monies allocated to the City for the 1998-99 funding year will not address all of the community's priority needs. Instead, allocations are focused toward specific projects addressing high community priorities and producing tangible community benefits. The following are the needs rated by the community as high priorities and their relation to the Five Year priorities indicated in the Consolidated Plan. Included also actions that the City will undertake within the program year to address those needs. Housing Needs Priority Activity Type A: First-Time Homebuyers Program The 1990 Census data as shown in the Consolidated Plan indicates that approximately 1,500 of the City's renters with low and moderate incomes are cost burdened, but less than 5 percent are severely cost burdened. These conditions indicate that an opportunity may exist for low and moderate income renter households to transition to becoming first-time homebuyers with some assistance. To address the above opportunities, various resources will be expended. Housing programs currently assisted by the City include: Programs: Mortgage Credit Certificate Pr6gram, administered through the County of Orange, providing homeownership opportunities for moderate-income persons. First-time homebuyers program using HOME and Redevelopment funds Priority Type B: Cosmopolitan Apartments The City's Redevelopment Agency provided direct monetary assistance to the Shea Homes in the early 1990s to demolish the problems infested Cosmopolitan Apartment, and redevelop the land with affordable housing units. As a result, 143 units are maintained as affordable units. The City also placed a twenty year covenants to ensure affordability of 13 units to low and moderate income households, and eight units to very low income households. In addition, the City utilized the Mortgage Credit Certificate funds to assist h°mebuyers. Priority Type C: Preservation of Existing Affordable Units The City will continue to preserve its existing affordable housing by utilizing CDBG funds and other resources ~uch as housing set-aside funds, and other federal and state available housing funds. Programs: Undertaking a study to identify opportunities and constraints for redevelopment in the soUthwest neighborhood. The consultant conducting the study will provide the City with three possible alternatives for housing/redevelopment programs. Strategies: o Continue to preserve existing assisted housing. Monitor the implementation of the affordable housing program adopted as a part of the East Tustin Specific Plan. Continue to require developers converting apartments to condominiums to process a use permit,, provide relocation assistance, and/or to provide incentives and assistance for purchase of the units by low- and moderate-income households. Continue to provide housing referral services to families in need of housing assistance and information. Code enforcement. Funding is provided for code enforcement activities focused in low- and moderate-income neighborhoods. The code enforcement efforts support a housing rehabilitation program funded with non-federal monies. Continue to provide opportunities for affordable granny flats and secondary residential dwelling units in the single-family residential district lots through existing Zoning Ordinance provisions. Continue the prOvision of counseling and dispute resolution services by the Fair Housing Council of Orange County. Continue the provision of services by the Orange County Fair Housing Council to assure equal housing opportunities within the City. Ensure that processing of permits for low- and moderate-income housing are fast- tracked with low and moderate income housing permits being given priority over other permit applications. Priority Activity Type D: Rehabilitation of Existing Housing Stock As indicated in the Consolidated Plan, a large number of.older housing units are located within the South Central and Town Center Redevelopment Project Areas. These older homes are in need of'rehabilitation. Currently rehabilitation programs have been targeting specific areas located in the southwest portion of the City. Programs: Use of Redevelopment Project Area Housing Set-Aside Funds to finance rental multi- family and owner-occupied single-family rehabilitation loan and grant programs. Strategies: Require appropriate deed restrictions to ensure continued affordability for low- or moderate-income housing constructed or rehabilitated with the assistance of any public or Redevelopment Agency funds, as legally required. Allocate available CDBG and Redevelol~ment Agency funds to f'mance public improvements and rehabilitation of residential units in the City's target areas. Use 20 percent housing set-aside' funds aS subsidies (i.e., land ~x~te downs, acquisition and rehabilitation assistance grants and loans, etc.) from the South/Central Redevelopment Project to reduce the affordability gap for developing new and rehabilitating existing owner and rental units for Iow--and moderate-income households. Priority Activity Type E: New Housing Construction With the exception of development oppommities that will occur on the MCAS, Tustin base site after the closure scheduled for 1999, the City is mostly built-out. Consequently, the City is looking towards the development of primarily infill housing development. This development will be targeted to first-time homebuyers program, affordable rental project and substantial rehabilitation projects. Programs: o New for-sale housing projects assisted with Housing Set,Aside Funds. Strategy: Provide referrals to the Orange County Housing Authority where necessary for the development and operation of federally assisted low- and moderate-income housing programs. Priority Activity Type F: Support and Ancillary Services To Support affordable housing units for a particular groups such as: low and very low income households, homeowners whose homes are in danger of foreclosure, and residents of high density areas, the City currently participate in development of the following programs: Programs: Section 8 Certificate and Vouchers programs through the Orange County Housing Authority. o Emergency rental assistance program o Emergency mortgage assistance program Strategies: Encourage the availability of Section 8 rental assistance certificates and voucher certificate program assistance funds through Orange County Housing Authority. Encourage the maintenance of existing and establishment of new certificates, support the County's efforts to obtain continued Federal funding. Community Development Needs The Community Development Needs are summarized below. Public Facility Needs c> Youth centers, neighborhood facilities, child care centers, Parks and recreational facilities. Previous year's CDBG and Redevelopment Project area funds were monies allocated to a youth center construction and rehabilitation project and staff salaries. Current year's funding is also provided for salaries and benefits for program staff. Infrastructure Improvements o Street and sidewalk improvements. o Engineering design, related to the reuse of MCAS-Tustin. o Replacement of flood control and/or.storm drain improvements. Previous CDBG funds were allocated for infrastructure improvements in low- and moderate- income areas. Public Service Needs o Senior services, youth services, employment, crime awareness, child care services. Funding is provided to organizations which directly benefit low- and moderate-income persons through the provision of senior meal services; youth counseling, early education, and recreation services; after-school care for disabled children; and ~affiti removal. Economic Development Needs Incentive programs for job creation, especially at MCAS-Tustin. o Commercial/Industrial infrastructure, other economic development needs. Current fiscal year's funding is allocated to the promotion of a Marketing Strategy and Media Plan. The Plan will market the Base to interim users and permanent employers and developers. Planning/Administration o Various planning studies Fair housing activities Funding is provided for roadway construction, a marketing/media plan for the reuse of MCAS-Tustin, a CDBG low- and moderate-income target area. Funding is also provided for fair housing complaint resolution, monitoring and planning activities. PR:kd\cdbg9 8'~ctPlan. doc Housing Needs -- Renter TABLE'3. Small Related Large Related Elderly All Other Need Level Units Estimated $ 0-30% of MFI I Low I 1429 I 15526,050 31-50"/o of MFI I Low I 1699 J 15851,700 51- 80% of MFI I Low I 1930 I 151,127,250 0-30% ofMFI I Low I I~s~ I 15429,000 31-50% of MFI l Low I 1319 I J$775,500 51-80% ofUFI I Low I I~ss I 15445,s0o 0- 30% of MFI I Low I 1327 I J$208,380 31-50% of MFI I Low I 1148 I 1593,62° 51 -80% ofMFI INone. I I?S I I$0 0-30%ofMFI Igow I 13~s I I$o 31- 50% of MFI J Low ,! 1353 I I$0 51- 80% of MFI IL°w J 1555 J I$0 -- Owner 0-30% of MFI ILow J 1400 I 15186,57° 31-50% of MFI I Low I 1541 I 15248,760 51- 80% of MFI [Low J '1562 J ['$255,670 · Sources; HUD Data Book City of Tustin Comprehensive Housing and Affordability Strategy (CHAS) City of Tustin 1995-2000 Consolidated Plan Special Needs/Non-Homeless B Sub-Populations TABLE 4 Elderly Frail Elderly Severe Mental Illness Developmentally Disabled Physically Disabled Persons with Alcohol/Other Drug Addiction Persons with HIV/AIDS Priority Need IHigh , IHigh I None I None - I Low I Med [None Estimated l$s6,25° 1518,75o 152o,ooo L$5o,ooo I$o TOTAL L$14s,ooo! Sources: City of Tustin Comprehensive Housing and Affordability Strategy (CHAS) City of Tustin 1995-2000 Consolidated Plan Community Needs m Anti-Crime Programs TABLE 5 Overall Need Level Units 0 Estimated $ $125,000 Sub-Categories' Crime Awareness (051) High $125,000 Economic Development Overall Need Level High Units 0 Estimated $ $184,050,000 Sub-Categories Rehab; Publicly or Privately-Owned Commer (14E) CI Land AcquisitionlDisposition (17A) Cl Infrastructure Development (17B) CI Building Acquisition, Construction, Re (17C) Other Commercial/Industrial Improvements (17D) ED Direct Financial Assistance to For-Pro (18A) ED Technical Assistance (18B) Micro-Enterprise Assistance (18C) Low High Med Med None Low Low o $5oo,ooo 0 $0 0 $180,000,000 0 $0 0 $2,500,000 0 $500,000 0 $300,000 0 $250,000 ---Infrastructure Overall Need Level Units 0 Estimated $ $13,000,000 Sub-categories Flood Drain Improvements (031) Water/Sewer Improvements (03J) Street Improvements (03K) Sidewalks (03L) Tree Planting (03N) Removal of Architectural Barriers (10) Privately Owned Utilities (11) Med Med High High ---- $4,100,000 $4,200,000 $4,2OO,OOO SS00,000 $o $o $o Planning and Administration Overall Need Level Units 0 Estimated $ $275,000 Sub-Categories HOME Admin/Planning Costs of PJ (not part (19A) Planning (20) General Program Administration (21A) Indirect Costs (21B) Public Information. (21C) Fair Housing Activities (subject to 20% A (21D) Submissions or Applications for Federal P (21E) HOME Admin/Planning Costs of PJ (subject (21H) HOME CHDO Operating Expenses (subject to (211) -m High Med $0 $250,000 $o $o $o $25,000 $o $o $o Community Needs (Page 2) w Public Facilities Overall Need Level Units 0 Sub-Categories Public Facilities and Improvements (Gener (03) Handicapped Centers (03B) Neighborhood Facilities (03E) Parks, Recreational Facilities (03F) Parking Facilities (03G) Solid Waste Disposal Improvements (03H) Fire Stations/Equipment (030) Health Facilities (03P) Asbestos Removal (03R) Clean-up of Contaminated Sites (04A) Interim Assistance (06) Non-Residential Historic Preservation (16B) Low High Med Public Services Overall Need Level Units 0 Sub-Categories Public Services (General) (05) Handicapped Services (05B) Legal Services (05C) Transportation Services (0SE) Substance Abuse Services (05F) Employment Training (05H) Health Services (0SM) Mental Health Services (050) Screening for Lead-Based Paint/Lead Hazar (05P) LOw Med High Senior Programs Overall Need Level Units 0 Sub-Categories Senior Centers (03A) Senior Services (0SA) None High Estimated $ $1,035,000 $0 $1o,ooo $o $1,000,000 $o $o $o $o $o $o $o $25,000 Estimated $ $190,000 $0 $20,000 $o $2O,OO0 Sso,oo0 $100,000 $o $o $0 Estimated $ $75,000 $0 $75,000 Community Needs (Page 3) -- Youth Programs Overall Sub-Categories Youth Centers (03D) Child Care Centers (03M) Abused and Neglected 'Children Facilities (03Q) Youth Services (0SD) Child Care Services (05L) Abused and Neglected Children (05N) Need Level High High .- High High Units 0 Estimated $ $1,750,000 $950,000 $400,00O $o $275,000 $125,000 $o Other Overall Sub-Categories Urban Renewal Completion (07) CDBG Non-profit Organization Capacity Bui (19C) · CDBG Assistance to Institutes of Higher E (19D) Repayments of Section 108 Loan Principal (19F) Unprogrammed Funds (22) Need Level Units 0 Estimated $ $0 $0 $o $o $o $o Sources: City of Tustin 1995-2000 Consolidated Plan 0 0 0 0 0 0 0 ~8oo~-~o 't~ c o o o 0 0 0 0 0 0 0 0 ~oo~=o 0 0 0 o 0 0 0 0 0 0 0 0 0 0 ~ 0 ~ 0 co 0 m 0 0 0 0 0 0 0 0 0 ~oo~o >- o ~- ~ 0 E~ 0 0 ~0 ~ 0 0 I.O ~-- 0 0 0 0 Z Z '~ o IJJ ~ ._1 0 ~oo~=o o 0 0 ~> '--0 W CO ..~ 0 0 0 0 0 0 0 0 0 ~> . ~o o 0 0 ~ o o o L~ 0 0 CO 0 0 0 0 0 O~ 0 I'-- CO 0 0 ~ 0 0 0 0 0 0 0 0 w ~. o 0 0 ~v) 0 o 0 0 ~0 0 O~ o o o o 0 0 0 0 I.D. ~. - o~ m 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o o I~0 o o~ E ' >~-~ ~E .__2 o o o o o I-- o 0 o D. Geographic Distribution Tustin is a relatively small jurisdiction with limited areas which meet the federal criteria of slum and blight, as defined under California State Redevelopment Law, or concentrations of low- and moderate-income persons. Nevertheless, FY 1998-99 fimds have been allocated on the basis of meeting the national objectives of the CDBG program, including programs addressing slum and blight and/or benefitting low- and moderate-income persons. Further, boundaries of the South Central Redevelopment Project Area overlap areas of low- and moderate-income concentrations. The Tustin community believes it is important to focus public services and improvements in that portion of the city, known as the Southwest Neighborhood. The 1998-99 Action Plan reflects those "geographic" priorities for allocating investment. Maps illustrating Tustin's target areas for CDBG funded projects are on the following pages. Low/Mod Income Households !ii~i~!i~i~ili~i L ow& U o d e rate Inc. ~Streets .r-..~' ~census Place CITY OF TUSTIN CDBG ELIGIBLE AREAS OF L 0 IF~ODERA TE INCOME CONCENTRATIONS Map Layers (~) HUD Offices iii~iiii~ii~ii~i!~iiiiiii~?i L o w& M o d e rat e Inc. Streets · Proposed Projects ."'='__, ~Census Place Proposed Projects · Anti-Crime Programs -~ Economic Development fl Homeless & HIV/AIDS Programs Housing · Infrastructure · Other Planning and Administration · Public Facilities · Public Services Senior Programs Youth Programs CITY OF TUSTIN 1998-99 COMMUNITY DEVELOPMENT BLOCK GRANT PR OPOSED PR OJECTS L OCA TIONS E. Homeless and Other Special Needs Activities Statistical data,, including, the 1990 census and data maintained by the Tustin Police Department, indicate that homelessness is not a major component of our community. Nevertheless, it is recognized that homelessness is a regional issue for which the City of Tustin must provide a "fair share" of services to address the needs of the homeless. In late 1996, Tustin was awarded more than $1 million for a supportive housing facility under the Continuum of Care Homeless Assistance Grant program. The grant will be used to renovate existing military barracks for use as a transitional living facility for 190 single men and women. In addition, Tustin has allocated the maximum allowable amount of its CDBG funds to public service programs. While some of the organizations funded do not directly serve the homeless, many of their activities may prevent homelessness. For the 1998-99 fiscal year, the following organizations providing homeless services have been selected for funding: TABLE 7 LISTING OF HOMELESS AND OTHER SPECIAL NEEDS ACTIVITIES FOR FY 1998-99. Target Funding Organization Program Name Population Special Needs Amount Laurel House Temporary housing for Youth Youth in crisis $ 8,000 teenagers in crisis Feedback Foundation Project TLC - Senior Meal Elderly Low/mod elderly $ 15,000 Program ::::::: .......... Ci~ of Tusti~Or~ge Tr~sitional living center ' Single men ~d Homeless $1,050,552 Coun~ Rescue women individuals Mission To~ $1,070.152 F. Other Actions 1. General The five-year Consolidated Plan contains a housing and homeless needs assessment which describes estimated housing need for low- and moderate-income residents, special needs populations and the homeless. During the 1998-99 funding year, the City of Tustin will undertake the following actions to address obstacles to meeting underserved needs including: · Foster and maintain affordable housing The City will continue to use available federal, state and local resources to foster and maintain affordable housing through housing rehabilitation programs for multi- and single-family dwelling units and provide and/or maintain homeownership opportunities through a first-time homebuyer program and an emergency mortgage program. · . Remove barriers to affordable housing As stated in the Consolidated Plan, the City has adopted indirect assistance programs to address negative impacts created by barriers to affordable housing. The following summarizes the types of programs Tustin has included into its Housing Element and will continue to promote during the 1998-99 funding year: o Secondary Resident Units o Deed Restrictions o Fees, Exactions, and Permit Procedures o Environmental Constraints Pre-application Conferences o Shared-Housing o Permit Processing and Coordination Section 8 Rental Assistance Recycling Single-Family Uses in R-3 Zones Into Multiple-Family Units Housing Referral Program Evaluate and reduce lead-based paint hazards The City's Consolidated Plan notes that there does not appear to be a great number of housing units at risk of lead-based paint hazard..However, to comply' · with Title X of the Housing and Community Development Act of 1992, the City will implement into its housing policies over the next five years the following: Include lead-based paint hazard reduction as an eligible activity in rehabilitation programs; RevieTM existing regulations, housing and rehabilitation codes to assure lead- based paint hazard reduction is incorporated; Require testing and hazard reduction in conjunction with rehabilitation; and, -Require inspections for lead at appropriate times when housing is otherwise being inspected or evaluated. Reduce the number of poverty-level families The City continues to support and implement several goals, policies and programs, as noted in the Housing Element of the General Plan, designed to provide adequate, safe and affordable housing to all segments of the population. Those goals include: Providing an adequate supply of housing to meet the City's need for a variety of housing types to meet diverse socio-economic needs. Ensure equal housing oppommities for all existing and future city residents. Ensure a reasonable balance of rental and owner-occupied housing. Preserve the existing supply of affordable housing. Conserve, maintain, rehabilitate and/or replace existing housing in neighborhoods which are safe, healthful and attractive, in accordance with adopted Land Use policy. · Develop institutional structure The City will continue to be involved in "network-building" activities with governmental, for-profit and non-profit organizations. This includes attendance at quarterly meetings of the Orange County Housing Authority Advisory Committee. Tustin will also continue to fund the Fair Housing Council of Orange County which provides fair housing and advocacy services for the region. Further, the City will continue to encourage and participate in efforts to work collectively and cooperatively with other Orange County jurisdictions. Enhance coordination between public and private housing and social service agencies The City of Tustin does not own or operate any public housing projects. Nevertheless, the City will continue to support and encourage efforts of the Orange County Housing Authority to coordinate between private housing and social service agencies. · Foster public housing improvements and resident incentives While the City does not own or operate any public housing projects, Tustin will continue to support and encourage public housing improvements and resident incentives as carried out by the Orange County Housing Authority. Use available federal, state and local financial resources to meet underserved needs. Coordinate with federal, state, and local agencies to provide appropriate assistance to residents. Coordinate with public service providers to promote adequate services to residents. Work to provide physical improvements to slum and blighted areas and. neighborhoods with concentrations of low- and moderate-income areas. 2. Public Housing The City of Tustin does not have a Housing Authority. Instead, the Orange County Housing Authority (OCHA) provides public housing and a variety of housing assistance programs to qualifying city residents. The City does not Own or operate public housing and no public housing developments are proposed for Fiscal Year 1998-99. G. Program - Specific Requirements 1. CDBG A description of all CDBG funds expected to be available during the 1998-99 program year is provided in Table 1. A more comprehensive listing of the City's proposed use of those funds is provided in Table 3. No program income has been received from the previous pro,am year; none is anticipated for 1998-99. The City has no urban renewal settlements, grant funds returned to the line of credit or income from float-funded activities. CERTIFICATIONS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the City of Tustin certifies that: Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti-displacement and Relocation Plan -- It will comply with. the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies. Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace -- It will or will continue to provide a drug-free workplace by: o Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about- (a) The dangers of drug abuse in the workplace; (b) The grantee's policy of maintaining a drug-free workplace; (c) Any available drag counseling, rehabilitation, and employee assistance programs; and (d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; o Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; . Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will - (a) Abide by the terms of the statement; and (b) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; o Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; Se Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted - (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; o Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Anti-Lobbying -- To the best of the jurisdiction's knowledge and belief: o No Federal appropriated funds have been paid or will be paid, by or on behalf of the City of Tustin, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; . If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Con~ess in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form,LLL, "Disclosure Form to Report LObbying,'' in accordance with its instructions; and o The City of Tustin will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction -- The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Signature/Authorized Official Date Director of Community_ Development Title Specific CDBG Certifications The Entitlement Community certifies that: Citizen Participation- It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan -- Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long-term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570). Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds -- It has complied with the following criteria: . Maximum Feasible Priority. With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and mOderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); . Overall Benefit. The aggregate use of CDBG funds including section 108 guaranteed loans during program year 1998-99 (a period consisting of one program year) shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; o Special Assessments. It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate- income (not low-income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force-- It has adopted and is enforcing: o A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent Civil rights demonstrations; and . A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction; Compliance With Anti-discrimination laws -- The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. Lead-Based Paint- Its notification, inspection, testing and abatement proCedures concerning lead- based paint will comply with the requirements of 24 CFR §570.608; Compliance with Laws -- It will comply with applicable laws. Signature/Authorized Official Date Director of Community Development Title APPENDIX TO CERTIFICATIONS INSTRUCTIONS CONCERNING LOBBYING AND DRUG-FREE WORKPLACE REQUIREMENTS: A. Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. B. Drug-Free Workplace Certification By signing and/or submitting this application or grant agreement, the grantee is providing the certification. . The certification is a material representation of fact upon which reliance is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug-Free Workplace Act, HUD, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug-Free Workplace Act. . Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of'application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee's drug-free workplace requirements. , Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employeeS in each local unemployment office, performers in concert halls or radio stations). . If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the workplaces in question (see paragraph three). o The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code). Tustin City Hall 300 Centennial Way Tustin, CA 92780 Check ~ if there are workplaces on file that are not identified here. The certification with regard to the drag-free workplace is required by 24 CFR part 24, subpart F. o Definitions of terms in' the Nonprocurement Suspension and Debarment common rule and Drug-Free Workplace common role apply to this certification. Grantees' attention is called, in particular, to the following definitions from these rules: "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C.812) and as further def'med by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drag statute" means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: (i) All "direct charge" employees; (ii) all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and (iii) temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee's payroll; or employees of subrecipients or subcontractors in covered workplaces). PR:kd\cdbg97~ActPlan2.doc 04/09/98 14:39:41 U.S ,artment of Housing and Urban Dev~ lent CPD Consolidated Plan System Support of Applications by Other Entities Report Funding Source Support Application by Other Entities? A. Formula/Entitlement Programs ESG Public Housing Comprehensive Grant B. Competitive Programs HOPE 1 HOPE 2 HOPE 3 ESG Supportive Housing HOPWA Safe Havens Rural Homeless Housing Sec. 202 Elderly Sec. 811 Handicapped Moderate Rehab SRO Rental Vouchers Rental Certificates Public Housing Development Public Housing MROP Public Housing ClAP LIHTC Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Funding Sources Entitlement Grant (includes reallocated funds) CDBG ESG HOME HOPWA Total $708,000 $0 $0 $0 Prior Years' Program Income NOT previously programmed or reported CDBG $0 ESG $0 HOME $0 HOPWA $0 Total Reprogrammed Prior Years' Funds CDBG ESG HOME HOPWA Total $0 $o $o $0 Total Estimated Program Income Section 108 Loan Guarantee Fund $708,000 $0 $0 $0 $0 TOTAL FUNDING SOURCES $708,000 Other Funds $0 Submitted Proposed Projects Totals $708,000 Un-Submitted Proposed Projects Totals $0 ATTAC~IMENT B COMI~fUNITY DEVELOPMENT BLOCK GRANT PROJECT SELECTION PROCESS AND EVALUATION CRITERIA The City reserves the right to act as sole judge of the content of the proposals submitted for City's evaluation and selection. The City further reserves the right to reject any or all project proposals. A. CONSOLIDATED PLAN - PRIORITY NEEDS To participate in the federal Community Development Block Grant (CDBG) program, the City of Tustin has submitted to the U. S. Department of Housing and'Urban Development a five£year planning document entitled the Consolidated Plan. The Plan details community needs and provides a strategy for addressing those needs. The Consolidated Plan contains a Listing of Priority Needs table which rates (high, medium or low) a wide variety of community needs, including housing, homeless assistance, public facilities, infrastructure improvements, public services, economic development and other community development needs. When considering projects and programs to be funded with CDBG monies, the proposals should address the community's priority needs. B. FUNDING CRITERIA Evaluation and selection of the requests for funding proposals will also be based upon the following considerations and criteria: Completion 'of Ail Application Forms and Requested Information 2. Proposer's General Experience and Capability a o Proposer's demonstrated experience in the operation of programs similar to the one for which funding is requested.. b. Proposer's demonstrated ability to provide the Attachment B CDBG - Project Selection Process Page 2 . specific services proposed. C . Proposer's demonstrated financial status and ability to finance the proposal submitted. d. Local experience '- consideration will be given to operators who have demonstrated experience in providing services to Tustin area residents. e. Proposer's other sources of funding. f . Proposer's verified history of compliance with obligations and responsibilities associated with contractual responsibilities or requirements of state and/or federal grants. General Program Concepts and Approach a . Demonstration of a critical need for the proposed project by Tustin area residents. b , The anticipated number of low and moderate income Tustin residents to be served by the proposal. C · The size of the service area for said program and whether the project will indirectly benefit areas within Tustin having a concentration of low and moderate income residents. d. The proposal's response to any needs identified in the City's Consolidated Plan. General Mandatory Guidelines for Funding Requests Submitted by Public Service Providers and Non-Profits Each organization must: Be a non-profit community organization committed to enhancing the quality of life for Tustin residents. Attachment B CDBG - Project Selection Process Page 3 . Serve Tustin residents and provide documentation of such service. . Be registered with the State of California as a non-profit community organization, or for new organizations be registered at the time the funds are allocated. Have a Board of Directors whose meetings are open to the public. . Provide the City of Tustin with a copy of current constitution/bylaws and policies and procedures. . Demonstrate ability to generate financial and human resources'from other sources. . Not discriminate in employment or in clients served because of race, religion, sex, or national origin. o Be accountable for revenue and expenditures through standard book-keeping procedures. An annual audit at the agency's expense may be required, with the results available to the city' of Tustin upon request. C. EVALUATION PROCESS The evaluation of the proposals will be conducted by an evaluation team comprised of City personnel; however, it may also include elected officials and other community leaders. In all cases, members of the team will have appropriate experience in the evaluation and administration of projects, proposals, lease agreements, construction contracts, bid documents and public service program operations. In connection with its evaluation, the team maY, at its option, request interviews with those individuals or organizations proposing projects. During these interviews, the proposers will be Attachment B CDBG - Project Selection Process Page 4 allowed to present such evidence as may be appropriate for the team to accurately analyze all materials and documentation submitted as part of the proposals. The selection team will employ the applicable criteria and their expertise in evaluating all proposals and shall submit a report to the City Council detailing a highest- to-lowest ranking of all responsive proposals. D. APPROVAL OF FUNDING PROPOSAL Subsequent to the evaluation process, recommendations will be presented to the City Council for review and approval. Specific amounts of recommended' allocations may not correlate with the amount requested by an agency. Funding recommendations shall be presented at a regular meeting of the City Council and are subject to public review and comment~ Distribution of grant funds is contingent on receipt of-monies from the Federal government and funding granted in one fiscal year does not assure an applicant of any future funding. PR: kbm\cdbg9 8 \adhoc#b. att Z 0 o o o 0 CD z © Z © .< © 0 0 .-"'o _o~=° r,~ 0 -,--~ "~ .< Z .< 0 0 O. (D 0 o ·