HomeMy WebLinkAbout16 CDBG OVERVIEW 11-18-96NO. 16
11-18-96
DATE:
NOVEMBER 18, 1996
Inter-Com
TO:
FROM:
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) OVERVIEW AND
DISCUSSION OF ALLOWABLE USE OF FUNDS FOR FISCAL YEAR 1997-98
SUMMARY: This.report Serves to Provide the City CounCil with a general overview of
Community Development: Block Grant (CDBG) program and alloWable use of funds.
RECOMMENDATION
That the City Council provide input as it deems appropriate.
FISCAL IMPACT
.
No City Council action is being requested at this time; therefore,
no impacts to the General Fund are anticipated.
BACKGROUND/OVERVIEW OF CDBG PROGRAM
The federal Housing and ~ommunity Development 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 suitable living environments, and expanding
economic opportunities, specifically for low- and moderate-income
persons. Grants are awarded to communities to implement a wide
range of community development activities directed toward
neighborhood revitalization, economic development, and the
provision of improved community facilities and services.
Typically, the U.S. Department of Housing and Urban Development
(HUD) informs the City of the amount of its annual grant award in
January. Staff does not yet know the amount of funds that will be
awarded to Tustin for the 1997-98 funding year. For the 1996-97
funding year, Tustin received $730,000; it is likely that a similar
amount could be received for 1997-98.
Due to the length of time necessary to complete the federally
required citizen participation process, staff initiates the
application process in mid-December. A tentative timeline for the
City Council Report
CDBG Orientation/Allowable Use of Funds for FY 97-98
November 18,' 1996
Page 2
1997-98 funding cycle is attached for your information and use.
Please see Attachment A.
CITIZEN PARTICIPATION PROCESS
Federal regulations require jurisdictions receiving CDBG funds to
provide for and encourage citizens to participate in the process of
determining how funds are expended. The steps Tustin has developed
to carry out this process are as follows:
City Council provides input to the staff regarding priorities
to consider when reviewing funding applications. Staff will
coordinate with the in-house Project Review Committee and
Citizen Participation Committee.
To initiate the Citizen Participation process, Community
Development Department staff provides "Request for Funding"
applications to over 70 non-profit public service
organizations and all city departments.
After receiving completed project applications, an in-house
CDBG Project Review Committee evaluates and ranks the funding
requests. The Committee is comprised of representatives from
various City Departments (Community Services, Public Works,
Community Development_ and the City Manager's office). The
specific criteria used in the ranking process is enclosed as
Attachment B.'
Funding recommendations of the in-house Project Review
Committee are transmitted to a Citizen Participation
Committee.
The ad hoc Citizen Participation Committee is comprised of
members of Tustin's standing commissions, boards and
committees (Planning Commission, Parks and Recreation
Commission, Cultural Resources Advisory Committee, and Senior
Advisory Committee) and acts as a citizen review body.
Federal regulations require a jurisdiction to hold at least
two public meetings/hearings to obtain the views of citizens
on such issues as housing and other community development
needs specifically related to the use of the CDBG funding.
The ad hoc Citizen Participation committee holds a
workshop/meeting to receive public input and evaluate
suggested funding requests and makes specific recommendations
to the City Council.
City Council Report
CDBG Orientation/Allowable Use of Funds for FY 97-98
November 18, 1996
Page 3
A hearing held by the Council is the second of the two
required public hearings. During the meeting, the Council has
the authority to modify the proposed funding allocations or
add new qualifying projects.
The City Council's decision regarding funding requests and
priorities is submitted to HUD in the One-Year Action Plan
detailing specific use of the CDBG funds.
NATIONAL OBJECTIVES
The purpose of CDBG funds is to assist in creat~ing viable urban
communities by providing housing, suitable living environments and
expanding economic opportunities for low- and moderate-income
persons. Communities are permitted to use CDBG funding to develop
programs to achieve those goals provided each activity or project
funded meets one of three national objectives. Those objectives
include:
· Projects that benefit low and moderate (L/M) income persons.
Data from the 1990 Census identified the areas of the city
having concentrations of low- and moderate-i~come persons
meeting CDBG requirements. Those areas are illustrated in
Attachment C.
In addition, certain groups such as the handicapped and the
elderly are assumed to be low- and moderate-income.
Projects that aid in the prevention and elimination of slum or
blight
Tustin's two Redevelopment project areas meet federal
requirements for "slum and blighted" areas. The redevelopment
project areas are illustrated in Attachment D.
Programs meeting a particularly urgent community development
need
This national objective is only applied to areas impacted by
natural disasters or civil disturbances.
ELIGIBLE ACTIVITIES
Ail projects and activities funded with CDBG monies must fall
within a specific category of eligible activities. HUD will audit
the City's program to ensure that all projects and programs are
City Council Report
CDBG Orientation/Allowable Use of Funds for FY 97-98
November 18, 1996
Page 4
eligible ones. The funding of ineligible activities could
jeopardize future years' CDBG monies.
Categories of eligible activities include:
Acquisition/Disposition of Real Property including:
o the purchase of property to meet a national objective;
or,
0 disposition costs such as appraisal, surveys, title
reports, etc.
Public Facilities and Improvements (acquisition, construction
rehabilitation) including:
o- shelters for homeless, battered spouses, handicapped and
other special needs groups
0 water and sewer facilities
0 flood and drainage improvements
0 community, senior and health centers
0 streets, curbs, gutters, sidewalks, parks, playgrounds
Privately Owned Utilities (acquisition, rehabilitation,
installation) including:
0 installation of water lines
0 undergrounding power lines
Clearance/Demolition of Buildings, Structures and Improvements
Public Services (new or quantifiable increases to existing
services provided by non-profit organizations or city
departments) including:
o child care
0 health care
o job training
0 fair housing activities
o recreation programs
0 services for seniors, homeless, handicapped
o counseling
0 the cost of operating and maintaining that portion of a
facility in which a public service is located
Interim Assistance including:
0 limited improvements to deteriorating areas as a prelude
to permanent improvements
o activities to alleviate emergency conditions
Relocation/Loss of Rental Income
Removal of Architectural Barriers
ADA Compliance - removal of architectural barriers
Housing Rehabilitation
New Housing Construction for low- and moderate-income persons
and located in eligible areas
Code Enforcement
Historic Preservation
City Council Report
CDBG Orientation/Allowable Use of Funds for FY 97-98
November 18, 1996
Page 5
Special Economic Development
Business Incubation
Job Creation
Assistance' to For-Profit Businesses
Planning and Capacity Building including:
o analysis
o comprehensive plans
o neighborhood plans
Program Administration Costs - general CDBG program
administration and oversight
FUNDING RESTRICTIONS
There are three primary restrictions that must be adhered to when
allocating funding to specific projects, programs and activities.
These restrictions are as follows:
Regulations for the CDBG program state that at least 70
percent of a jurisdiction's annual grant must be used to
benefit low- and moderate-income persons. In other words, a
community cannot focus solely on projects in "slum and
blighted" areas.
Federal law states that no more than 15 percent of the total
grant award to a jurisdiction may be used for public service
programs and activities. Therefore, the allocations to non-
profit public service providers (Boys and Girls Club, Laurel
House, Feedback Foundation, Dayle McIntosh Center, etc.) and
in-house city departments (Community Services Department for
staff at the Youth Center) providing public services cannot
exceed 15 percent of the year's total CDBG grant.
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.
A~olca i aRt~kip~[Ine r
PR: kd\ccreport\cdbgorie. 97
Elizabeth A. Binsack
Director of Community
Development
Enclosures:
Attachment A (Tentative Timeline)
Attachment B (Evaluation Criteria)
Attachment C (Map of Eligible Low- and Moderate-Income Areas)
Attachment D (Map of Redevelopment Project Areas)
ATTACHMENT A
PRELIMINARY
TIMELINE FOR FY 1997-98 CDBG CITIZEN PARTICIPATION/APPLICATION PROCESS
11/18/96
11/27/96
12/16/96
12/20/96
1/08/97
1/20/97
1/29/97
2/04/97
2/10/97
2/14/97
2/19/97
2/26/97
3/05/97
3/05/97
3/17/97
With City Council meeting materials, transmit informational "receive and file"
memo/report to council members regarding 1996-97 funding cycle. Per their request,
packet to include: guidelines for eligible projects and activities; guidelines for citizen
participation committee.
Response due from City Council members regarding suggested projects and priOrities.
Send notice of availability of "Request for Funding" application to newspaper.
Publish notice availability of "Request for Funding" applications; mail application
packets to non-profit organizations on existing list, transmit to in-house City
departments and City Council.
City Department Project Suggestion meeting; distribute "Request for Funding"
applications to City Departments - 8:30 a.m.
Deadline for project proponents, including non-profits and City departments, to
return "Request for Funding" applications.
Distribute packet of non-profit and city-project funding requests to in-house Staff
Review Committee.
In-house Staff Review Committee meeting to rank non-profit and city agency
proposals - 2:30 p.m. ~
Send notice of Citizen Participation Committee Workshop/Meeting to the newspaper.
Publish - Notice of Citizen Participation Committee Workshop/Meeting.
Ad Hoc Citizen Participation Committee training session.
Hold first Citizen's Participation Committee Workshop/public meeting (first required
public hearing) to obtain citizens views on possible proposed use of CDBG funds.
Possible continuation of citizen participation workshop public hearing.
Development of one-year Action Plan, the component of the Consolidated Plan to
be submitted annually.
Send City Council Public Hearing Notice and notice of availability of Action Plan for
30-day public comment period to newspaper.
3/21/97
3/21/97 to
4/21/97
4/0~'/97
4/21/97
5/O6/97
5/15/97
7/01/97
7/01/97 to
9/28/97
Publish - Notice of City Council public hearing on funding requests and availability
of one-year Action Plan.
30-day public comment period on the Action Plan. --
Hold City Council public hearing on Action Plan (second required public hearing).
Possible continuation of City Council public hearing on Consolidated Plan, or
adoption of the Action Plan by consent calendar.
End of 15-day period for City to respond to public comments.
Last day to submit Consolidated Plan to HUD (45 days prior to beginning of funding
year).
Fiscal year 1995-96 begins.
FY 1994-95 Grantee Performance Report due - 90 days after the end of the program
year.
PR:kd~CDBG 97ktimeline.97
(1 O-7-96)
ATTACHMENT B
COMMUNITY DEVELOPMENT BLOCK GRANT
PROJECT SELECTION PROCESS AND EVALUATION CRITERIA
A. SELECTION PROCESS
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.
B. FUNDING CRITERIA
Evaluation and selection of the requests for funding proposals will
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 o
C o
Proposer's demonstrated ability to provide the
specific services proposed.
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.
3. 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.
Attachment B
CDBG - Project Selection Process
Page 2
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.
,
Serve Tustin residents and provide documentation of
such service.
o
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.
o
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.
o
Demonstrate ability to generate financial and human
resources from other sources.
o
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
Attachment B
CDBG - Project Selection Process
Page 3
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
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: kd\cdbg9 6 \adhc 9 6. #b
ATTACHMENT C
SAJITA
CITY OF
TUSTII~
ORANGE COUNTY, CALIFORNIA
ATTACHMENT D
CiTY
MARINE CORPS
AIR STATION
IllYlI~E
CITY OF
TUSTII
ORANGE COUNTY, CALIFORNIA
CITY
OF
ORANGE
COUKTY
OF
ORANGE
REDEVELOPMENT
PROJECT AREAS
r'~ TOWN CENTER
~ SOUTH CENTRAL