HomeMy WebLinkAbout04 CDBG PROGRAM 04-15-96,= ENDA
NO. 4
4-15-96
DATE:
APRIL 15, 1996
inter-Com
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: ELIZABETH A.'BINSACK, DIRECTOR OF COMMUNITY DEVELOPMENT
SUBJEC~ CLARIFICATION OF VARIOUS CITY COUNCIL ACTIONS RELATED TO THE
CDBG PROGRAM
The following summarizes and clarifies the recent City Council
action related to the Community Development Block Grant (CDBG)
program.
On April 1, 1996 the City Council adopted Resolution No. 96-25
approving the use of Fiscal Year 1996-97 CDBG funds.
Per the direction given by the Council at the April 1 meeting,
staff will develop guidelines for suggesting eligible programs
and projects for possible funding with CDBG monies. The
guidelines will be approved by the City Council and used by
the Citizen Participation Committee and City departments at
the start of the process for selecting projects for the 1997-
98 funding.cycle.
The two CDBG program items placed on the April 15 City Council
agenda are unrelated to the Council's action on April 1.
Specifically, the items to be considered by the City Council on
April 15 are:
Item No. 4 - reallocating remaining CDBG funds from Fiscal
Years 1992-93, 1993-94, 1994-95 and 1995-96 from previously
approved projects to other CDBG-funded programs (ie. Newport-
Sycamore Youth Center) to reduce shortfalls in the project
budgets. This action requires a public hearing.
Item No. 17 - authorizing staff to enter into Separation
Agreements transferring from the County of Orange to the City
of Tustin authority for CDBG funds remaining under the County
program. This includes CDBG funds allocated by the County
prior to the City becoming a direct entitlement city.
Assuming administrative authority for the funds will provide_
the City with increased flexibility in expending the monies.
A portion of the funds proposed for reallocation in Item No.
4, discussed above, are the County program monies. This item
was placed on the consent calendar becaUse no public hearing
is required.
If you have any questions or would like additional clarification,
please let me know.
EAB: PR: kd\CDBG96 \ccactns. mem
DATE:
APRIL 15, 1996
inter-Com
TO:
FROM:
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
SUBJEC~ AMENDED FINAL STATEMENT OF OBJECTIVES AND ONE-YEARACTION PLAN
(APPLICATION) FOR PROPOSED USE OF COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) FUNDS
RECOMMENDATION
That the City Council adopt Resolution No. 96-33 approving
amendments to the Final Statement of Objectives and One-Year Action
Plan (application) for the proposed use of Community Development
Block Grant (CDBG) funds.
FISCAL IMPACT
The proposal involves the reallocation of CDBG funds from
previously authorized projects to other eligible activities. The
activities proposed will be accomplished entirely with federal CDBG
monies. No impacts to the General Fund are anticipated.
BACKGROUND
The Housing and Community Act of 1974, as amended, created the
Community Development Block Grant (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 implement a wide range of community
development activities directed toward neighborhood revitalization,
economic development, and the provision of improved community
facilities and services. Communities are encouraged to obtain
citizen suggestions as to potential uses for these funds prior to
submitting a formal application.
Examples of eligible projects include public services such as child
care, health care, job training, recreation programs, services for
abused person, seniors or the homeless; removal of architectural
barriers; housing rehabilitation; commercial or industrial
rehabilitation; and the acquisition, construction or rehabilitation
of shelters and community, senior, or health centers.
City Council Report
Objectives and One-Year Action Plan
April 15, 1996
Page 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.
Federal law also limits the amount of funds spent on administrative
activities, including planning studies, to a maximum of 20 percent
of the grant award.
The application submitted to the U.S. Department of Housing and
Urban' Development (HUD) indicating a jurisdiction's projected use
of funds was previously called the Final Statement of Objectives.
With the adoption of the Consolidated Plan for grant year 1995-96,
the application became known as. the One-Year Action Plan.
Prior to and including the 1993-94 grant year, CDBG funds were
allocated to the City through the County of Orange, under the Urban
County Program. Beginning with the 1994-95 grant year, Tustin
became an "entitlement community," and began receiving funds
directly from HUD.
While approximately $60,000 in unexpended funds remain allocated to
Tustin under the County program, only $36,000 would be reallocated
to new projects. The balance would remain allocated to the current
programs. In addition, $85,000 in funds received directly from HUD
would be reallocated.
At the time the funds were awarded to the City~ they were ear-
marked for specific projects. But since then, community priorities
have changed and the original intended use of the funds no longer
seems appropriate. For example, the Commercial Rehabilitation
Program was initially very popular; numerous structures, primarily
in the Old Town area, were seismically renovated or given facade
upgrades. However, in recent years there has been less demand for
such rehabilitation funds.
During the past 18 months, the need for a youth center in the
~southwest neighborhood has become a community priority. The vacant
.building located at 14722 Newport Avenue was recently purchased by
the City for use as both a drop-in youth center and Head Start pre-
school program, benefitting children and families living in the
predominantly low-income southwest area of the City. A substantial
amount of funds will be required for the renovation of that
structure. In addition, as the closure date for the Marine Corps
Air Station (MCAS) Tustin approaches, funds will be needed to
implement reuse plans. It seems appropriate to reallocate unused
monies from inactive programs to provide funds for current
community needs and priorities.
City Council Report
Objectives and One-Year Action Plan
April 15, 1996
Page 3
The City is in the process of developing a Separation Agreement
with the County of Orange and obtaining approval from HUD .to
transfer administrative authority for the Urban County funding from
prior years from the County of Orange to the City of Tustin. The
transfer of funds from the County provides the City with the
opportunity to reallocate program funds from previously authorized
projects to other eligible activities. Proposed amendments to
those program allocations are as follows:
Urban County Funds Transferred to City
·
FY 1992-93 (Grant Year 18)
From the Commercial Rehabilitation Program to the Youth Center
Design/Construction - $11,498.67 or the amount of the fund
balance as of March 31, 1996.
·
FY 1993-94 (Grant Year 19)
a. From the Commercial Rehabilitation Program to Youth
Center Design/Construction - $10,000 or the amount of
the fund balance as of March 31, 1996.'
b·
From Public Facilities to the Youth Center
Design/Construction - $3,271.44 or the amount of the fund
balance as of March 31, 1996.
Ce
From Public Facilities to the Youth Center
Design/Construction - $778.17 or the amount of the fund
balance as of March 31, 1996.
d·
From Graffiti Removal Citywide to Graffiti Removal on
Private Property Within the Southwest Neighborhood -
Approximately $10,770.50 or the amount of the fund
balance as of March 31, 1996.
Entitlement Funds
·
FY 1994-95 (Grant Year 20)
From the Historic Property Rehabilitation program to the
Valencia Avenue/Armstrong Avenue preliminary roadway and
project engineering design - $50,000 or the amount of the fund
balance as of March 31, 1996.
·
FY 1995-96 (Grant Year 21)
a. From Park Master Plan (MCAS) to Valencia Avenue/Armstrong
Avenue preliminary roadway and project engineering design
- $34,000 or the amount of the fund balance as of March
31, 1996.
City Council Report
Objectives and One-Year Action Plan
April 15, 1996
Page 4
b o
From Park Master Plan (MCAS) to CDBG Program
Administration for preparation of an Analysis of
Impediments to Fair Housing Choice - $1,000
ANALYSIS
It is important that Tustin draw down CDBG funds as quickly as
possible. During the federal monitoring of our program, HUD will
examine the rate at which the City of Tustin has expended grant
awards. Regulations discourage a jurisdiction from accruing more
than 1.5 times its total grant award. Inadequate spending may
jeopardize our future years grants. Reallocating funds tO current
City priorities, such as the Youth Center and the Base reuse will'
help ensure full awards in subsequent years.
Ail applicable HUD regulations have been folloWed in the processing
of this change in the use of CDBG monies. Staff has published a
notice of the amended Final Statement of Objectives and One-Year
Action Plan (application to HUD), and the required public hearing
in the local newspaPer.
CONCLUSION
Based on the above analysis, staff recommends that Council support
the amendments to the Final Statement of Objectives and One-Year
Action Plan. Resolution No. 96-33 has been prepared for Council
action. Staff will be available during the public hearing'to make
a presentation on the CDBG Program and the amendment, as well as
answer questions about the above-listed recommendations.
'[t~s~o~c iRal~ ~p l~anne r
Community Development
Department Director
PR: kd\ccreport \cdbgact. pln
I RESOLUTION NO. 96-33
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, APPROVING AMENDMENTS TO THE
CITY'S FINAL STATEMENT OF OBJECTIVES AND ~ONE-YEAR
ACTION PLAN (APPLICATION) FOR COMMUNITY DEVELOPMENT
BLOCK GRANT FUNDS AND AUTHORIZING SUBMISSION OF
SUCH AMENDMENTS TO THE FEDERAL DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT.
WHEREAS, under the Housing and Community Development Act
of 1974, as amended, Federal assistance may be provided for
the support of community development activities which are
directed toward certain specific objectives as set forth in
the Act as the Community Development Block Grant (CDBG)
Program; and
WHEREAS, prior to and including the 1993-94 CDBG Grant
Year, the County of Orange allocated CDBG monies to the City
of Tustin through the Urban County Program; and
WHEREAS, the County of Orange and the City of Tustin are
in the process of developing a Separation Agreement to
transfer administrative authority of that funding from the
County to the City; and
WHEREAS, the transfer of funds from the'County provides
the City the opportunity to reallocate the monies from
previously authorized projects to other eligible activities;
and
WHEREAS, the application submitted to the U.S. Department
of Housing and Urban Development for funds .was previously
called the Final Statement of Objectives, and is now known as
the One-Year Action Plan; and
WHEREAS, beginning with the 1994-95 Grant Year, CDBG
funds have been allocated to Tustin directly from the U.S.
Department of Housing and Urban Development; and
WHEREAS, in the time since the initial allocation of
those CDBG funds, staff has re-evaluated planned expenditures
and finds that City and community needs have changed; and
WHEREAS, citizens were notified of the proposed changes
in use of CDBG funds through an advertisement published in the
local newspaper; and
WHEREAS, a staff report has been prepared recommending
proposed funding reallocations; and
WHEREAS, a public hearing to obtain the view of citizens
on the amended Final Statement of Objectives and One-Year
Action Plan was held by the City Council on April 15, 1996.
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Resolution No. 96-33
Page 2
NOW THEREFORE BE IT RESOLVED, the City Council of the
city of Tustin resolves as follows:
Section 1- -The Amendments to the City of Tustin Final
Statement of Objectives and One-Year Action Plan shall be as
indicated:
Urban County Funds Transferred to City
i ·
·
FY 1992-93 (Grant Year 18)
From the Commercial Rehabilitation Program to the Youth
Center Design/Construc{ion - $11,498.67 or the amount of
the fund balance as of March 31, 1996.
'FY 1993-94 (Grant Year 19)
a- From the Commercial Rehabilitation Program to Youth
Center Design/Construction - $10,000 .or the amount
of the fund balance as of March 31, 1996.' ~
be
From Public Facilities to the Youth Center
Design/Construction - $3,271.44 or the amount of
the fund balance as of March 31, 1996.
Ce
From Public Facilities to the Youth Center
Design/Construction - $778.17 or the amount of the
fund balance as of March 31, 1996.
de
From Graffiti Removal Citywide to Graffiti Removal
on Private Property Within the Southwest
Neighborhood - Approximately $10,770.50 or the
amount of the fund balance as of~ March 31, 1996.
Entitlement Funds
·
FY 1994-95 (Grant Year 20)
From the Historic Property Rehabilitation program to the
Valencia Avenue/Armstrong Avenue preliminary roadway and
project engineering design - $50,000 or the amount of the
fund balance as of March 31, 1996.
·
FY 1995-96 (Grant Year 21)
a. From Park Master Plan (MCAS) to Valencia
Avenue/Armstrong Avenue preliminary roadway and
project engineering design - $34,000 or the amount
of the fund balance as of March 31, 1996.
be
From Park Master Plan (MCAS) to CDBG Program
Administration for preparation of an Analysis of
Impediments to Fa£r Housing Choice - $1,000
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Resolution No. 96-33
Page 3
Section 2: Staff is hereby directed to prepare and
submit an Amended Final Statement of Objectives and an Amended
One-Year Action Plan to the federal Department of Housing and
Urban Development reflecting 'Council's direction for the
City's funding allocations to eligible program activities.
Section 3: The City Manager of the City of Tustin or his
designated representative is authorized to execute such
documents, certifications, contracts or other instruments as
may be required to carry out the City's Community Development
Block Grant Program.
Section 4: The City Clerk shall certify to the adoption
of this Resolution and shall file a copy of said application
with the minutes of this City Council meeting.
PASSED and ADOPTED by the City Council of Tustin this
15th day of April, 1996.
JIM POTTS
Mayor
Pamela Stoker
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
SS
CERTIFICATION FOR RESOLUTION NO. 96-33
PAMELA STOKER, City Clerk and ex-officio Clerk of the City
Council of the City of TuStin, California, does hereby certify
that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing
Resolution No. 96-33 was duly adopted at a regular meeting of
the Tustin City Council, held on the 15th day of April, 1996.
COUNCILMEMBER AYES:
~COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER:ABSENT:
PAMELA STOKER
City Clerk
PR: br: kd\CCRESOS \ 96-33. pr