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HomeMy WebLinkAbout01 FY 2014-15 CDBG PLAN1TY O AGENDA REPORT MEETING DATE: MAY 6, 2014 TO: JEFFREY C. PARKER, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT Agenda Item Reviewed: City Manager Finance Director N/A SUBJECT: FISCAL YEAR 2014 -15 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATION, FISCAL YEAR 2014 -15 ACTION PLAN SUMMARY: The Community Development Department is proposing to submit to the U.S. Department of Housing and Urban Development (HUD) a Program Year (PY) 2014 -15 Action Plan (Attachment A), which describes the activities that the City will undertake during the program year. The Action Plan includes the program budget for disbursement of Community Development Block Grant (CDBG) funds. HUD has notified the City that CDBG funding for the Program Year 2014 -15 will be $688,674. On February 12, 2014, the Citizen Participation Committee conducted a public hearing, received public input and testimony, and considered all public service applications submitted. The Citizen Participation Committee has provided a recommendation to the City Council regarding public service funding allocations for Program Years 2014 -15 (Year 1), 2015 -16 (Year 2), 2016 -17 (Year 3) which may be referenced in Attachment B. RECOMMENDATION: That the City Council adopt Resolution No. 14 -26 approving the PY 2014 -15 Action Plan and funding allocation and authorizing submission of the PY 2014 -15 Action Plan to the U.S. Department of Housing and Urban Development. FISCAL IMPACT: Non - public services activities are proposed to be funded by CDBG grant funds; however, the City's proposed public services activities such as Graffiti Removal, Tustin Parks and Recreation Youth Coordinator, and Tustin Kids Corner will have a fiscal impact to the General Fund since they are not fully funded by CDBG grant funds. CORRELATION TO THE STRATEGIC PLAN: Administration of the CDBG program falls under Goal A of the City of Tustin's Strategic Plan pertaining to Economic and Neighborhood Development. Goal A of the Strategic Plan strives to enable business opportunities and job development and to enhance the vibrancy and quality of life in all neighborhoods and areas of the community. CDBG Program Year 2014 -15 May 6, 2014 Page 2 Neighborhood revitalization and promoting economic development are both primary components within management of the CDBG program. BACKGROUND: The federal Housing and Community Act of 1974, as amended, created the CDBG program to return federal funds to local communities for the purpose of developing viable urban communities by providing adequate housing and a suitable living environment and by expanding economic opportunities, specifically for low- and moderate - income persons. Grants are awarded to communities to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and the provision of improved community facilities and services. For participation in the CDBG program, the federal government requires that local jurisdictions prepare a 5 -year Consolidated Plan document and state within its plan, the jurisdiction's goals and priorities. The City's current Consolidated Plan, adopted on April 20, 2010, covers Program Years 2010 -2015. The City is also required to submit an Annual Action Plan for each of the five years covered in the Consolidated Plan. The Consolidated Plan serves the following functions: 1. A planning document for the City of Tustin; 2. An application for federal funds under HUD's formula grant programs; 3. An action plan that provides a strategy for carrying out goals and priorities (also serve as the City's annual application); and, 4. A basis for assessing performance. 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 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 News. The review period began on March 13, 2014, and ended on April 11, 2014. No public comments were received as of the printing of this staff report. 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 45 days prior to the start of the Program Year, by May 17, 2014. Eligible Activities 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 as follows: 1. Benefit low- and moderate - income persons; 2. Aid in the prevention or elimination of slums or blight; or CDBG Program Year 2014 -15 May 6, 2014 Page 3 3. Meet community development needs having a particular urgency (conditions that pose serious or immediate threats to the health or welfare of the community where other sources of funding are not available). The CDBG program as administered by HUD requires that at least 70 percent of the total CDBG annual expenditures must be used for activities that benefit low- and moderate - income persons over a one -, two -, or three -year period, and individual activities designed to benefit low- and moderate - income persons must assist at least 51 percent of low- 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. The CDBG program limits the amount of allocation for Public Services activities and Program Administration. A maximum of fifteen (15) percent (15% x $688,674 = $103,301) of the total grant award may be allocated to Public Service types of activities. A maximum of twenty (20) percent (20% x $688,674 = $137,734) of the total grant award may be expended on administrative and planning activities. Public Service Activities Multiyear Funding On April 17, 2007, the City Council amended the City's Citizen Participation Plan by designating the Tustin Community Foundation as the Citizen Participation Committee for Public Service Activities and that funding for public services are to be allocated through a three (3) multiyear funding cycle. On November 21, 2013, the City published a Notice of Funding Availability (NOFA) for public service programs /projects for the three -year funding cycle including program years 2014 -15, 2015 -16, and 2016 -17. The Community Development Department compiled a list of public service providers and non - profit organizations expressing interest in applying for a portion of Tustin's CDBG funds. Staff mailed seventy -seven (77) "Request for Funding" applications to various private organizations and transmitted applications to all City of Tustin departments. Eleven (11) completed Public Service applications from non- profit organizations and City departments were returned with funding requests totaling $754,274. On February 12, 2014, the Tustin Community Foundation acting as the City's Citizen Participation Committee held a public hearing, considered funding requests for public service programs, and recommended funding allocation based on a multiyear funding cycle. The City Council is asked to review the Citizen Participation Committee funding CDBG Program Year 2014 -15 May 6, 2014 Page 4 recommendations for public service programs. A list of recommended public service funding allocations by the Citizen Participation Committee is included as Attachment B. The Citizen Participation Committee based their recommendations on an estimated allocation amount of $101,250 whereas HUD has finalized the City's grant allocation which will allow for a maximum of $103,301 available for public service activities. Staff has recommended allocating the additional $2,051 to the graffiti removal and TFYC Coordinator programs. Following the Year One (1) allocation for PY 2014 -15, the approved public service programs would continue to receive Year Two (2) for Program Year 2015 -16 and Year Three (3) for Program Year 2016 -17 funding if they meet the following criteria: a. Activities must continue to meet the priority and objective for which the activities are funded in Year One (1); b. Activities must continue to leverage funds with other sources; C. Activities must be in compliance with contractual obligations; d. Activities must report accomplishments correctly in the Quarterly and Annual Performance Reports and /or other documentation as described in current year contract; e. Activities must receive a successful assessment of project performance and progress from City staff. Nonpublic Services Activities/Programs On November 21, 2013, the City published a Notice of Availability of Funding Application (NOFA) for non - public services projects /programs in the Tustin News and transmitted applications to all City of Tustin departments. The City staff committee, which consists of all directors from various departments and a representative from the City Manager's Office, held a meeting to propose and discuss possible non - public service CDBG projects for PY 2014 -15 and make a recommendation to City Council on the disbursement of projects for public facilities and improvement, rehabilitation and preservation, and program administration project categories. A total of five (5) City applications and two (2) Fair Housing applications from the Fair Housing Council of Orange County and the Fair Housing Foundation were received. Staff reviewed the two Fair Housing service applications and based on proposed level of service, outreach, qualifications, and past working relationships, staff recommends contracting with the Fair Housing Foundation to provide fair housing services to Tustin residents. A list of non - public service projects is attached as Attachment B. CDBG Program Year 2014 -15 May 6, 2014 Page 5 Proposed Funding Allocation Program Year 2014 -15 Public Services Activities (max. $103,301) Year 1 of 3 Recommendations Boys and Girls Club $ 12,500 Community SeniorSery (Senior Meals) $ 15,000 Graffiti Removal - CDBG target areas $ 28,268 Laurel House $ 7,500 Mercy House $ 5,000 Tustin Parks and Recreation Department (Youth Center Staff) $ 20,033 Tustin Parks and Recreation Department (Kids Corner) 15,000 Public Services Subtotal $103,301 Public Facilities and Improvements Williams Street Storm Drain $ 200,000 Frontier Park Playground 159,639 Public Facilities and Improvements Subtotal $ 359,639 Rehabilitation and Preservation Activities Code Enforcement 88,000 Rehabilitation and Preservation Subtotal $ 88,000 Program Administration and Planning Activities (max. $137,734) Fair Housing Services $ 14,545 CDBG Program Administration $ 60,000 Old Town Study 63,189 Administration & Planning Subtotal $137,734 Grand Total for all Activities 67Q CITIZEN PARTICIPATION PROCESS Federal laws relating to CDBG funds require cities to provide citizens with specific information about the amount of monies expected for the program and the range of activities that may be undertaken with those funds. Federal regulations also require a jurisdiction to hold at least two public hearings to obtain the views of citizens on such issues as housing, other community development needs and the use of the CDBG monies. The first public hearing was held on February 12, 2014, and the May 6, 2014, hearing is the second public hearing to consider the proposed Action Plan (a component of the Five - year Consolidated Plan and an annual application for a CDBG grant) and to authorize staff to submit the Action Plan to HUD. After City Council approval, staff will submit the one - year Action Plan to HUD detailing the City's specific use of the funds for PY 2014 -15. The Action Plan is due on May 17, 2014. After receiving final approval of proposed projects, each public service /non - profit organization receiving funding will be asked to enter into agreements with the City requiring compliance with all federal CDBG regulations relating to program management, reporting, auditing, etc. No disbursement of monies can be made to any agency or organization until expenses are incurred and documented to benefit the intended program. CDBG Program Year 2014 -15 May 6, 2014 Page 6 ,�-AQZ �� Adrianne DiLeva- Johnson Senior Management Assistant ..- Community Development Director Attachments: A. Resolution No. 14 -26 and Action Plan B. Public Service and Nonpublic Service Funding Recommendations