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HomeMy WebLinkAbout01 CDBG FUNDS 03-04 04-21-03AGENDA REPORT Agenda Item Reviewed: City Manager Finance Director MEETING DATE: APRIL 21, 2003 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: FY 2003-04 ACTION PLAN AND PROPOSED USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS SUMMARY The Community Development Department is proposing to submit to HUD a FY 2003-04 Action Plan which describes the activities that the City will undertake during the program year and the program budget for disbursement of Community Development Block Grant (CDBG) funds. RECOMMENDATION That the City Council adopt Resolution No. 03-59 approving the proposed use of Community Development Block Grant (CDBG) funds for inclusion in the One-year Action Plan for Fiscal Year 2003-04. FISCAL IMPACT The proposed 2003-04 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 City Council Report April 21, 2003 CDBG FY 2003-04 Page 2 of 5 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 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 1, 2003, and ended on March 30, 2003. No public comments were received. 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, 2003. BACKGROUND/OVERVIEW OF CDBG PROGRAM REGULATIONS The City will receive $998,000 of CDBG funds for Fiscal Year 2003-04. 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; or 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 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. City Coucil Report April 21, 2003 CDBG FY 2003-04 Page 3 The program limits the amount of allocation for Public Services activities and Program Administration. A maximum of 15 percent (15% x $998,000 = $149,700) of the total grant award may be allocated to Public Service types of activities. A maximum of 20 percent (20% x 998,000 = $199,600) of the total grant award may be expended on administrative and planning activities. EVALUATION OF FUNDING REQUESTS In November of 2002, the City published a Notice Availability of Funding Application (NOFA) of CDBG funds in the Tustin Weekly and also sent application packages to over 90 non-profit organizations and the City of Tustin's various departments. As a result of the NOFA, 24 applications were submitted totaling $1,239,811 in funding requests. The requests received consisted of $266,123 from Public Services (non- profits) category and $973,688 from Non-Public Services category. The request for the Public Services Category exceeded the maximum allowable allocation by $116,423 or 177 percent. Other requests are within the allowable allocation. In January, 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 (Parks and Recreation, Public Works/Engineering, Community Development, Finance, and the City Manager's Office). The City Council's direction and the criteria, identified as Attachment 3, were used in the ranking process. Funding recommendations of the in-house Project Review Committee were transmitted to the Citizen Participation Committee (CPC). On February 5, 2003, the City held a public meeting/hearing (first of the two required public hearings) and invited all interested organizations and citizens to participate in the CDBG process. The purpose of the meeting/hearing was to review, evaluate, and make a recommendation to the City Council on the disbursement of the FY 2003-04 CDBG funds. The public meeting/hearing was conducted by the Citizen Participation Committee comprised of chairpersons of the City's Planning Commission, Parks and Recreation Commission, Cultural Resources Advisory Committee, Senior Advisory Committee, Audit Committee and two members at large appointed by the City Council. Due to this year's short time frame (The City Council reorganized the CPC in January, 2003), this year's two members at large were represented by City Council members. At the meeting, the CPC agreed with the in-house Project Review Committee funding recommendations with the exception of the allocation for Big Brothers/Big Sisters of Orange County. The Committee reduced the allocation for Big Brothers/Big Sisters of Orange County from $5,000 to $2,500 and increased the allocation for TAFFY Dental Program from $0 to $2,500. The Citizen Participation Committee recommended that the City Council approve the allocation as follows: City Coucil Report April 21, 2003 CDBG FY 2003-04 Page 4 P u b lic Services Activities (max. $149,700) Assessment and Treatment Services Center Big Brothers/Big Sisters of Orange County Boys and Girls Club Feedback Foundation, Inc. Graffiti Removal - CDBG target areas Laurel House TAFFY- Dental Program Tustin Parks and Recreation Department (Youth Center Staff) WTLC's Family Outreach Public Services Subtotal Public Facilities and Improvements East Alley Improvements Prospect Avenue ADA Improvements Senior Center Computer Room Tustin Family Youth Center Improvement Public Facilities and Improvements Subtotal Rehabilitation and Preservation Activities Code Enforcement Code Enforcement Vehicle $ 8,000 $ 2,500 $ 25,000 $ 20,000 $ 23,777 $ 6,720 $ 2,500 $ 58,203 $ 3,000 $149,700 $ 220,000 $ 384,612 $ 12,800 $ 701000 $ 687,412 $ 60,000 $ 25,000 Rehabilitation and Preservation Subtotal $ 85,000 Program Administration and Planning Activities (max. $199,600) Fair Housing Counseling Agency CDBG Program Administration Administration & Planning Subtotal Grand Total for all Activities $ 15,888 $ 60,000 $ 75,888 $998~000 City Coucil Report April 21, 2003 CDBG FY 2003-04 Page 5 Note: Due to the number of applications received, staff developed a chart listing/ranking all applications received (see Attachment 4) 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 21st 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 newspaper of general circulation. The Council may modify the recommended funding allocations; however, the Public Services category is limited to a 15 percent maximum allocation ($149,700). 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, 2003. When final approval has been given by HUD, each public service 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. ~tina Willkom Associate Planner Elizabeth A. Binsack Director of Community Development ATTACHMENTS: , 2. 3. 4. Resolution No. 03-59 Draft Action Plan Evaluation Criteria Table of Request for Funding Applications S:\Cdd~JUSTINA~t, dbg~:crn Action Plan FY 03-04,doc Attachment I Resolution No. 03-59 RESOLUTION NO. 03-59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE ACTION PLAN FISCAL YEAR 2003-04 FOR SUBMISSION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. The City Council of the City of Tustin does hereby resolve as follows: 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 Grant (CDBG) Program; and WHEREAS, on February 5, 2003, a public hearing was held by the Ad Hoc Citizen Participation Committee to obtain and consider citizens' views on the needs, goals, and objectives of the community; and WHEREAS, during the February 5, 2003, public hearing, citizens were furnished with information concerning the CDBG Program, the range of eligible activities, and the proposed use of funds; and WHEREAS, a report has been prepared transmitting to the City Council recommended priority needs, goals, and objectives by the Citizen Participation Committee; and WHEREAS, a public hearing was held by the City Council on April 21, 2003, to respond to questions and comments on the proposed Action Plan FY 2003-04; and WHEREAS, the City Council evaluated needs, priorities, goals, and objectives based on recommendations of the Citizen Participation Committee and public testimony received during the hearing; NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1: The City of Tustin's Action Plan FY 2003-04 is hereby approved as presented to the Council at their hearing of April 21, 2003, and in Exhibit A of this Resolution. Section 2: Staff is hereby directed to include the proposed use of CDBG Funds for Fiscal Year 2003-04 in the One Year Action Plan to be submitted to the U.S. Department of Housing and Urban Development. Resolution No. 03-59 Page 2 of 2 Section 3: The Director of Community Development 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 the City of Tustin at a regular meeting on the 21st day of April, 2003. TRACY WILLS WORLEY MAYOR PAMELA STOKER, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) SS CERTIFICATION FOR RESOLUTION NO. 03-59 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. 03-59 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 21st day of April, 2003, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Pamela Stoker, City Clerk S:\Cdd\CCRESOS\03-59.doc Attachment 2 Draft Action Plan City of Tustin Community Development Block Grant Action Plan Fiscal Year 2003-04 EXECUTIVE SUMMARY Background The Consolidated Plan for the City ofTustin, a five-year planning document (FY 2000-05), 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 bythe Consolidated Plan. Programs and projects indicated in the Action Plan address needs identified in the Consolidated Plan. Organization of the FY 2003-04 Action Plan The City of Tustin Action Plan for Fiscal Year 2003-04 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 2003-04 CDBG funds allocated to the City of Tustin. Geographic Distribution - Maps indicating eligible areas for CDBG funded projects and a map showing the location of projects funded with Fiscal Year 2003-04 CDBG monies. Homeless and Other Special Needs - A description of Fiscal Year 2003-04 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 2003-04 program year. · Certifications and Miscellaneous - HUD required certifications and assurances. City of Tustin 2003-04 Action Plan 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 2003-04 the City of Tustin will receive $998,000 of CDBG funds through the U.S. Department of Housing and Urban Development. The following is a listing of all activities that will be funded for FY 2003-04: Public Services Activities Tustin Parks and Recreation Department (Youth Center Staff) Graffiti Removal - CDBG target areas Feedback Foundation, Inc. Boys and Girs Club Laurel House Big Brothers/Big Sisters of Orange County TAFFY - Dental Program WTLC's Family Outreach Assessment and Treatment Services Center Public Services Subtotal Public Facilities and Improvements Tustin Family Youth Center Improvement City of Tustin - Senior Center Computer Room City of Tustin - East Alley Improvements City of Tustin - Prospect Avenue ADA Improvements Public Facilities and Improvements Subtotal Rehabilitation and Preservation Activities Code Enforcement Program Administration and Planning Activities Fair Housing Counseling Agency CDBG Program Administration Administration & Planning Subtotal Grand Total for ali Activities $ 58,203 $ 23,777 $ 20,000 $ 25 000 $ 6,720 $ 2,500 $ 2,500 $ 3,000 $ 8,000 $149,700 $ 70,000 $ 12,800 $220,000 $384,612 $687,412 $ 85,000 $ 15,888 $ 60,000 $ 75,888 $998,000 City of Tustin 2003-04 Action Plan 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 2003-04 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 bythe City that have or will be undertaken to implement the Action Plan. A. Form Application Standard Form 424 is attached. City of Tustin 2003-04 ActionPlan 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, and 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 following resources are anticipated to be available for the 2003-04 fiscal year: TABLE 1 AVAILABLE PUBLIC AND PRIVATE RESOURCES FOR FY 2003-04 HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES Program Type Program Name Description Eligible Activities Ii ~ede~ai Pro,amS a. Formula/ Community Development Grants awarded to the · Acquisition Entitlement Block Grant (CDBG) City on a formula basis · Rehabilitation 2003-04 Funding - for housing and · Economic $998,000 community development Development activities. · Homeless Assistance · Public Services · Public Improvements/ Facilities · Code Enforcement · Planning Mortgage Credit Certificate Income tax credits · Home Buyer Assistance Program available to first-time homebuyers for the purchase of new or existing housing. Local agencies (County) make certificates available. City of Tustin 2003-04 Action Plan Program Type Program Name Description Eligible Activities b. Competitive McKinncy Act Supportive Grants to develop * Transitional housing Programs Housing Program (SHP) supportive housing and · Permanent Housing services that will enable for homeless with homeless people to live disabilities as independently as · Supportive Services possible, such as child care, employment assistance, outpatient services for the homeless : : : 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. First-time Homebuyer Low Interest Rate and · First-time Homebuyer Program Downpayment Assistance. b. Multi-Family Assistance to owners of · Rehabilitation Residential Rehab - multi-family projects Loan/Grant Program occupied by low- and Funding moderate-income persons. c. Single-Family Assistance to low- and · Rehabilitation Residential Rehab - moderate-income owners Loan/Grant Program occupying Single-family Funding dwellings. d. New Housing Financial Assistance for · New new affordable housing Construction Construction project e. Business Assistance to promote · Business start-up Development the development of new assistance Assistance businesses. · Technical assistance · Site locating & space planning f. Business Financing Financial assistance and · Property acquisition City of Tustin 2003-04 ActionPlan program Type Program Name Description Eligible Activities Assistance incentives to promote · On-site and off-site business growth improvements · Industrial development bonds · Tax increment financing · Micro loans Assistance focused on · Tax credits for job g. Employment the hiring and retention creation Assistance of employees. · Employee home purchase or rental programs · Technical assistance TABLE 2 POTENTIAL PUBLIC AND PRIVATE RESOURCES FOR FY 2003-04 HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES Program Type Program Name Description Eligible Activities a. Formula/ Housing Opportunities for Entitlement and Competitive · Acquisition Entitlement Persons with AIDS (HOPWA) Grants for Housing Assistance and · Rehabilitation Supportive Services for PWAs. · Support Services Grants are awarded to the region on a formula basis and administered by County. HOME Flexible grant program awarded · Acquisition to the City on a formula basis for · Rehabilitation housing activities. · Home Buyer Assistance · Rental Assistance b. Competitive HOPE Home ownership assistance · Public Housing Programs awarded on a competitive basis, Ownership (HOPE1) requires non-Federal matching · Home Ownership of funds. Multi-Family Units (HOPE 2) · Home Ownership for Single-Family Homes (HOPE 3) Emergency Shelter Grants Grants to improve quality of · Homeless Assistance City of Tustin 2003-04 Action Plan Program Type Program Name Description Eligible Activities (ESG) existing shelters/increase number (Acquisition, New of new shelters for the homeless. Construction, Funds are awarded to local Rehabilitation, nonprofits through the Conversion, Support State/county. Services) Supportive Housing Assistance for transitional housing · Acquisition Program (SHP) for homeless individuals and · Rehabilitation families and permanent housing · New Construction for handicapped homeless. · Operating Costs · Supportive Services Shelter Plus Care Program Supportive housing and services for · Rental Assistance (S+C) persons with disabilities - Grants for rental assistance offered with support services to homeless with disabilities and disabled households. Section 8 Moderate Funds for rehabilitating single · Rehabilitation Rehabilitation Single Room room units within a building of up · New Construction Occupancy program (SRO to 100 units. The provision of Section 8). supportive services is optional. Section 8 Rental assistance payments to · Rental Assistance Rental Assistance Program owners of private market rate units on behalf of very low- income tenants. Administered by County Housing Authority. Section 202 Supportive Housing for the · Acquisition Elderly - Grants to nonprofit · Rehabilitation developers of supportive housing · New Construction for the elderly. · Rental Assistance · Support Services Section 811 Grants to nonprofit developers of · Acquisition supportive housing for persons · Rehabilitation with disabilities, including group · New Construction homes, independent living · Rental Assistance facilities and intermediate care facilities. Section 108 Loan guarantee that provides · Acquisition City of Tustin 2003-04 ActionPlan Program Type Program Name Description Eligible Activities community with financing for · Rehabilitation economic development projects. · New Construction · Economic Development Activities Small Projects Processing Mortgage Insurance program for · Acquisition (SPP) - (221 (d)(4) and small multi-family new · Rehabilitation 223(0) construction or substantial · New Construction rehabilitation (221 (d)(4)) and · Economic Development small multi-family rehabilitation Activities (223(f)). 2!State prOgram~ :; California Tax Credit Allocation of Federal and State Allocation Committee Low-income Housing Tax Credit (CTCAC) · Low-income Housing Tax Tax credits for the development · New Construction Credit Program (LIHTC) and ownership of low-income · Acquisition and rental housing Rehabilitation California Debt Limit Allocation of private activity bond Allocation Committee (tax-exempt mortgage revenue (CDLAC) bond) to single-family housing, multi-family rental housing, · Single-family Mortgage student loans, and economic · Mortgage Credit Tax Credit development. Certificate · Multi-Family rental · Multi-family private housing acquisition, mortgage revenue construction or bond rehabilitation California Department of Housing and Community Development (HCD) a. Multi-family Housing Low Interest loan for multi-family · Acquisition Program (MHP) housing rehabilitation or · Land lease payment acquisition, or rehabilitation and · Rehabilitation acquisition. · New Construction b. Families Moving to Work FMTW provides limited term · New Construction (FMTW) housing assistance combined with · Rehabilitation case management, employment services, child care and other supportive services to welfare recipients. c. California Self Help Grants, loans and mortgage · Rehabilitation City of Tustin 2003-04 Action Plan Program Type Program Name Description Eligible Activities Housing Program assistance to low- and moderate- * New Construction (CSHHP) income families improving property with their own labor. · Acquisition d. Pre-development Loan Loans for Pre-development costs · Pre-development Costs Program (PLP) - Urban or "seed" money to nonprofit and Rural corporations and local governments. · Employee Housing of e. Employee Housing Construction, maintenance, use, five or more and occupancy of privately owned employees and operated employee housing facilities. California Housing Finance Agency (CHFA): a. HELP Program HELP program provides · Acquisition unsecured loan for affordable · Rehabilitation housing projects. · Infill · Code Enforcement b. Proposition 1A School SFFRP provides reimbursement of Facility Reimbursement school facility fees to developers Program (SFFRP) who restrict units for affordable housing for 55 years. c. Special Needs Loan Low interest loans for housing · New Construction Program construction for individuals and families with special needs. d. First-time Homebuyer Low interest and down-payment · First-time Homebuyers Program program for low to moderate- income first-time homebuyers. e. Multi-family Financing Permanent financing for new · Acquisition construction, · New Construction acquisition/rehabilitation, and acquisition ofmulti-family · Acquisition/rehabilitation projects. California State Loans to local government Infrastructure Infrastructure and Economic agencies to improve public Improvements Development Bank (CIB) infrastructure to promote economic development. 3. ~ange counw City of Tustin 2003-04 Action Plan Program Type Program Name Description Eligible Activities Rental Housing Program Financial assistance for affordable · Acquisition multi-family rental projects. · Acquisition and Rehabilitation · New Construction Mortgage Credit Certificate Tax credit for First-time · First-time Homebuyer Program Homebuyers Assistance ~ ReSo~es~inan~ing prOgramS Federal National Mortgage Association (Fannie Mae)' Loan applicants apply to participating lenders for the following programs: 1. Single-family Community Lending a. Community Home CHBP offers 5 percent down- · Homebuyer Assistance Buyers Program payment mortgages with 33/38 (CHBP) debt to income ratios to homebuyers earning no more than 100 percent of the area median income. · Homebuyer Assistance b. 3/2 Option 3/2 offers 3 percent downpayment with 2 percent girl from family member, grant, or unsecured loan. c. Fannie Neighbors Low Down-Payment Mortgages · Homebuyer Assistance for Single-family Homes in under- served low-income and minority communities. d. Fannie 97 Loans up to 97 percent with underwriting ratio of 33/36 for 25 · Homebuyer Assistance years or 28/36 for 30 year terms. e. Community Seconds Second-lien mortgage and low down payment for the qualified · Homebuyer Assistance borrowers. fi Flexible 97 Loans up to 97 percent with · Homebuyer liberal debt ratio of 33/41 to homebuyers with limited savings. Assistance 2. Single-family City ofTusfin 2003-04 Aetion Plan Program Type Program Name Description Eligible Activities Rehabilitation Loans a. Home Style Standard Loans up to 90 percent of the "as · Homebu¥cr Assistance Mortgage completed value." b. Home Style Community Mortgages which fund the · Homebuyer Assistance Home Mortgage purchase and rehabilitation of a · Rehabilitation Improvement Program home. 3. Multi-family Fannie Mae purchases first lien · Multi-family mortgages for acquisition, Affordable Housing a. Targeted Affordable moderate rehabilitation, or Housing (TAH) refinancing of existing or recently b. Delegated completed multi-family Underwriting & developments. Servicing (DUS) 4. American Communities Fund 5. Fannie Mae Foundation Fannie Mae Foundation supports national and local nonprofit corporations involved in the provision and improvement of affordable housing and strengthening of neighborhoods and community. Federal Home Loan Mortgage Corporation (Freddie Mac) a. Affordable Gold Freddie Mac purchases/secures · Homebuyer Assistance (Affordable Gold 97, high loan to value ratio single- Affordable Gold 3/2, family home purchase loans to NeighborWorks, Home assist low-income families. Works, 2- to 4-Unit Affordable Lending Mortgages) b. Other Affordable Housing Affordable Seconds provides loan · Acquisition Programs (Affordable to value ratio to go up to 105 · Rehabilitation Seconds, Federal Housing percent for second mortgages. Administration 203(k) FHA 203 (k) Rehabilitation Rehabilitation Mortgages) Mortgages Program insured mortgages for property acquisition and rehabilitation. California Reinvestment Act (CP~A) City of Tustin 2003-04 ActionPlan Program Type Program Name Description Eligible Activities a. Community Reinvestment Assistance to low-income minority · New Construction Act (CRA) neighborhoods, including the · Rehabilitation construction, rehabilitation, bridge · Acquisition and acquisition financing needs of developers of affordable rental and for-sale housing, as well as first- time, low- and moderate-income homebuyers. b. Affordable Housing Program provides funds to Program (AHP) qualified affordable housing · Affordable Housing projects that would not meet Projects customary criteria or existing secondary mortgage market requirements, or for which there is no secondary market. c. Community Investment Program offers interest rate at 20 Program (CIP) basis point below the 11th District · Homebuyer Assistance costs of funds. · Rehabilitation · Commercial and economic development activities California Organized COIN provides financing for · Affordable Housing Investment Network (COIN) affordable rental or ownership Financing housing. Nonprofit Intermediaries a. Low-income Housing Nonprofit financial institution · Affordable Housing Fund (LIHF) with primary purpose of assisting Financing affordable housing projects with technical assistance, loan guarantee and interest write down program, loan packaging, revolving loan fund, and mortgage banking program. b. Local Initiatives Support Affordable Housing Assistance for · Affordable Housing Corporation land acquisition, construction Financing financing, and equity capital. C. Activities to be Undertaken City of Tustin 2003-04 Action Plan 10 CDBG monies allocated to the City for the 2003-04 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 bythe community as high priorities and their relation to the Five-Year priorities indicated in the Consolidated Plan. Included also are actions that the City will undertake within the program year to address those needs. Table 3 summarizes the City's priorities, objectives, and goals for the program year. Housin~ Needs Priority Activity Type A: First-time Homebuyers Program The 1990 Census data as shown in Consolidated Plan Table I-D indicates that approximately 33 percent of the City's renters with low- and moderate-incomes are cost burdened, but less than 15 percent are severely cost-burdened. These conditions indicate that an oppommity 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: Low Interest Rate/Low Down-payment Mortgages; · Downpayment Assistance; · Mortgage Credit Certificate Program. Priority Type B: Preservation of Existing Affordable Units The City will continue to preserve its existing affordable housing by utilizing CDBG funds and other resources such as housing set-aside funds, and other Federal and State available housing funds. Programs: · Assistance to potential nonprofit acquisition to expired Section 8 project-based contracts. Strategies: City of Tustin 2003-04 ActionPlan · 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 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 Fair Housing Council of Orange County to ensure equal housing oppommities 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 C: 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: Owner Rehabilitation Loans and Grants. Multi-Family Acquisition, Rehabilitation, and Conservation to Ownership Housing. Rental Rehabilitation Loans and Grants. Small Project Multi-Family Rental Acquisition and Rehabilitation. Strategies: City of Tustin 2003-04 Action Plan 12 Require appropriate deed restrictions to ensure continued affordability for low- or moderate-income housing constructed or rehabilitated with the assistance of public or Redevelopment Agency funds, as legally required. Allocate available CDBG and Redevelopment Agency funds to finance 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 write 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 low- and moderate-income households. Priority Activity Type D: New Housing Construction With the exception of development opportunities that will occur on the MCAS-Tustin base site, the City is mostly built out. Consequently, the City has limited opportunities for new ownership and rental construction on infill sites in the City. This program would assist the development of affordable units within newly constructed projects in either South Central or Town Center project areas. Programs: New Owner Housing Construction New Senior Rental Construction Strategy: The City will assist in the development of affordable new owner or senior rental housing. Priority would be given to ownership housing consistent with the City's Housing policy. The City will provide for mixed-use site opportunities in Old Town where new ownership townhomes could be constructed. The City will 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 E: Support and Ancillary Services To support affordable housing units for a particular groups, such as low- and very low-income City of Tustin 2003-04 Action Plan 13 households, homeless, and families in transition from homelessness to independent living. Programs: Homeless Housing Partnership Program Section 8 Certificate and Vouchers Laurel House TAFFY- Dental Program Strategies: The City supports activities of the Orange County Mission in obtaining financial assistance to provide needed rehabilitation of housing facilities located at MCAS- Tustin. 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 and support the County's efforts to obtain continued Federal funding. Allocates CDBG funds to assist Laurel House in providing shelter to runaway teenagers. Allocates CDBG funds to TAFFY to assist Tustin's low-income families with dental care. Community Development Needs The Community Development needs are summarized below. Priority: Youth Centers/Services Youth centers/services have been identified by the community as essential to provide recreational options to area youth. The target area for the CDBG program is severely limited in its park and recreation resources available to area youth desiring to participate in constructive, affordable, and organized activities. Program: Tustin Family Youth Center- CDBG funds will be allocated to the City of Tustin Parks and Recreation Department to provide a full-time recreation coordinator at the Tustin Family Youth Center located in the southwest neighborhood of the City. The Center provides affordable recreation services to children, the majority of whom are of low-income families. City ofTusfin 2003-04 Action Plan 14 Boys and Girls Club - Upward Bound enrichment program is provided by the Boys and Girls Club for the academic, social, fitness, and character development needs of at-risk youth in the southwest area ofTustin (CDBG low and moderate income tracts). The Upward Bound program provides a comprehensive non-student day program for 100 at-risk youth with computerized tutoring and homework assistance, arts, sports, fitness and recreation. CDBG funds will be utilized to pay for a portion of staff's salary. Big Brothers and Big Sisters of Orange County- Bright Future program provides support services for girls ages 10-18. The mission of this program is to provide mentoring to young Latinas and assist them with staying in school and attaining higher education, avoid drug and alcohol abuse, cope with peer pressure, and develop strong leadership to become self confident. Program services include small group workshops, individual mentoring, and group activities with peers, community leaders, and mentors. Priority: Neighborhood Facilities Community facilities to serve children, youth, and adults are high priorities for the City of Tustin. The number of existing facilities in the City are not adequate to serve the growing population and the changing needs of target-area residents. Programs: Senior Center Computer Room Improvement: An improvement to the senior center to accommodate a computer room dedicated for senior citizens. The program will enable the City to provide basic computer lesson to senior adults at affordable fees. Priority: Childcare Facilities/Services Childcare facilities and services that are affordable to low- and moderate-income families are inadequate to serve the number of families in need in the target area. Program: Tustin Family Youth Center Improvements - CDBG funds will be allocated to improve the Tustin Family Youth Center by constructing protective fencing, tot lot and security door system. The Tustin Family Youth Center provides child care facility and services for low income families. Priority: Recreation Facilities The City' s CDBG target area was largely planned and developed prior to its annexation to the City of Tustin 2003-04 Action Plan 15 City of Tustin. Therefore, the area is comparatively limited in terms of park and recreational opportunities. The higher population density within the target area also contributes to the need for recreational facilities. As a result, considerable attention has been focused on ways to provide additional private and public youth, adult, and senior services and facilities to supplement those which are heavily used at this time. Program: MCAS-Tustin Legacy Community Park. With the closing of the MCAS-Tustin in July of 1999, the City is undertaking steps to rehabilitate existing amenities within the base. Prior year CDBG funds will be utilized for the rehabilitation of the existing buildings to accommodate a community center, sports field maintenance, demolition of underutilized structures and facilities, and upgrading health and safety code requirements. Priority: Street and Sidewalk Improvements/Infrastructure The majority of the street and sidewalk improvements, as well as other types of infrastructure in the target area, were constructed more than 25 years ago. Also, some areas were never developed with sidewalks. These facilities have reached the age where they are beginning to deteriorate more rapidly and require reconstruction. With the population growing, the need for new street and infrastructure is also increasing. The City objective is to promote the improvement of existing infrastructure and the creation of new infrastructure where such infrastructure is nonexistent or completely inadequate. Program: Prospect Avenue ADA Improvements: Improvements to the west side of Prospect Avenue to include one-half street reconstruction and remove and replace sidewalk to accommodate ADA improvements. East Alley Improvement Project: pedestrian enhancements including decorative paving, bollards, and lighting facilities along an alley east of E1 Camino Real, between Main Street and Third Street. Valencia/Armstrong Street Construction- Valencia/Armstrong Avenues are located within the former MCAS Tustin. To reuse the former base, major street construction needs to be completed to accommodate future uses at the base. This project is anticipated to be completed in the near future. Prior CDBG funds will be utilized to complete the construction of Valencia/Armstrong Avenues. Newport Avenue Reallignment- Prior CDBG funds will be utilized to reconstruct Newport Avenue. Newport Avenue is located within the CDBG low and moderate income areas. City of Tustin 2003-04 AcfonPlan 16 Priority: Senior Services Area senior services are presently provided through the City's full-service senior center located in Old Town Tustin. Although the senior center is not geographically distant from the target area, multi-cultural and economic limitations and barriers may be preventing full participation in the center's programs. Additional services are necessary to target this population. Program: Feedback Foundation- Tustin TLC Nutrition Program for the Elderly. The Feedback Nutrition Program for the elderly (including congregate and home-delivered meals) provides nutritious meals to the Tustin's elderly. The program objective is to alleviate poor nutrition among the vulnerable elderly population, especially prevalent among those who live alone and/or on limited incomes. The program not only provides meals at a congregate site in Tustin, but also delivers meals to at-risk seniors (homebound) residing within the City. CDBG funds will be allocated to reimburse the raw food and other meals' related costs. Priority: Crime Awareness The target area has become the community's highest priority for crime prevention activities, given the increasing population density and increasing need for police services. The population is a potential target for victim-related crime, which could be prevented by the implementation of crime awareness programs. Program: Assessment and Treatment Services Center (ATSC) - CDBG funds will be allocated to the ATSC to provide staff for youth and family counseling services. ATSC provides counseling to minor and first-time offenders of the law, youth who demonstrate poor school behavior or performance, youth with family problems or who are victims of domestic violence, and youth who use drugs or alcohol or who are delinquent. While program participation is voluntary, a child and his/her entire family must agree to undergo therapy together. Referrals are made to this organization by the Tustin Police and area schools. Counseling services are provided by ATSC staff or coordinated with other agencies. Women's Transitional Living Center (WTLC)- WTLC is a community-based organization committed to seeking solutions to end domestic violence. WTLC provides comprehensive services through its emergency shelters, walk-in center, and community outreach. Working with the Tustin Police Department's Family Violence Unit, WTLC provides domestic violence victims with counseling, temporary shelters, and prevention program. City of Tustin 2003-04 AcfionPlan 17 Priority: Health Services Based on the 1990 census, the Southwest area of the City (CDBG target area) is concentrated with high-density residential and low-income households. Often, the majority of the households' income is utilized to pay for housing. Consequently, limited or maybe none at all is set aside for health insurance. Preventive medical and dental care is a luxury that typical households may not be able to afford. Low-cost health services are needed to help the household with preventive health and dental care. Program: TAFFY (Dental Clinic) - Prior CDBG funds will be utilized to provide dental care to low-income persons with a particular emphasis on children. The program will provide dental care that includes prevention, treatment, and restoration at a sliding-scale fee or at no cost to the low-income persons. Priority: Code Enforcement Property maintenance issues are of significant importance to the community as the majority of residential, commercial, and industrial structures in the target area are at least 25 years in age. Absentee property owners contributed to delayed property maintenance in many cases. Active Code Enforcement is needed to ensure that properties are properly maintained in accordance with City standards. Program: Code Enforcement- CDBG funds will be allocated for salary and benefits for one code enforcement officer to support the City's Housing Rehabilitation program targeting the southwest neighborhood (low- and moderate-income target areas). Graffiti Removal - CDBG funds will be allocated for the removal of graffiti in the southwest neighborhood. The southwest neighborhood has been determined by HUD as the CDBG low- and moderate-income target areas. Priority: Economic Development To stimulate businesses within the CDBG target areas, the City initiated a Commercial Rehabilitation program. The program will provide financial assistance to private for-profit businesses for faqade improvements. Monetary assistance will be provided for either design or construction costs. Program: Old Town Commercial Rehabilitation- Prior CDBG funds will be utilized to provide City of Tustin 2003-04 Action Plan 18 grant funding for design of commercial building rehabilitation within the Old Town redevelopment area. Priority: Planning/Administration Planning Services are needed to administer the CDBG program, to prepare planning documents for Old Town Tustin, and to provide fair housing assistance. These services are necessary to support the other priorities. Program: Fair housing activities - CDBG funds will be allocated to contract with the Fair Housing Council of Orange County to provide fair housing services to Tustin residents. Services include landlord/tenant dispute resolution, education, counseling, and fair housing monitoring and compliance. The contract also includes the implementation of the Analysis of Impediment to Fair Housing Choice. Planning and Administration- CDBG funds will be allocated for the administration of the CDBG program. Old Town Design Guidelines - Prior CDBG funds will be utilized for the preparation of design guidelines for Old Town Tustin. Old Town Tustin is located in the CDBG low-moderate income target area. The design guidelines would provide for economic development oppommities. City of Tustin 2003-04 ActionPlan 19 II 0 ~> ,4--' O0 0 .. ,4--' · - °~ 0 '.~ ='~,~ oo o (,3 o o o ~0 o3 '5 o=R" 3:0 0 0 0 0 0 0 0 0 0 c o o .0 ,< rj CO0000000 0 0 ~ 0 ~- , E '0 I"- 0 0 0 0 0 !"- 0 0 O0 0 0 0 0 ~0 ~0 0 0 0 0 0 0 0 0 c ~- 0 o 0 0 0 0 c: c .-~ 0 0 o 0 0 0 0 0 o o 0 0 0 0 0 0 ~ .ii, 0 0 0 0 0 0 0 0 0 0 0 0 o o o o 0 o 0 0 0 0 0 0 0 0 0 0 0 0 ~ .ii, 0 0 0 0 0 0 0 0 0 ...... 0 0 0 0 0 0 0 ~ 0 o o .. ..-- 0 0 0 0 0 0 0 0 UJ I I ~ 0 <n~ 0 o 0 0 I'~ o ~ -J ~ 0 0 o 0 0 0 ~0 0 0 0 0 0 ~0 0 0 ~0 zO 0 0 o1:3~ 0 0 0 0 0 0 0 0 E < 8 0 ~ ca._ ~~0 0 ~ ~ E ~ ~ ~,, ~._ 0 -0 0 ~ ~0~U ~ m~' ~=~ ~ ~O~E E~Oo ~ 0 ~'~ =.~ 0 0 0 ~ 0 0 0 ~- , EE 'lJ 0 0 E 'n ~ 0 0 0 0 0 ~ 0 0 W W 0 0 o~ O~ 0 0 CO cO 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 eq >- I-~ r.O 0 o o~o~ ow-r T T 0 ,~nl-- E o co o o o 0 0 0 0 0 0 0 0 ~) ~'- 0 cO o 0 o. P..- (D 0 0 0 0 .o 0 0 0 0 0 0 0 o~o~ 0 o mE 0 0 o~c~ 0 0 0 0 0 0 0 0 tO ~- b- CO 0 0 o c) 0 0 0 0o 0 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 2003-04 funds have been allocated on the basis of meeting the national objectives of the CDBG program, including programs addressing slum and blight and/or benefiting 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 2003-04 Action Plan reflects those "geographic" priorities for allocating investment. Maps illustrating Tustin's target areas for CDBG funded projects are on the following pages. City of Tustin 39 2003-04 Action Plan City of Tustin FY 2003-04 Community Development Block Grant Low- and Moderate-Income Areas ,, "\ ~, Low/Mod Income Ho.usehoids Map Layers ~Low&l~oderate in¢, ~New Low & Moderate Areas Streets .r"'.....',~Ctty Boundary City of Tustin 40 2003-04 Action Plan City of Tustin FY 2003-04 Community Development Block Grant Proposed Projects Locations ,,. ap Layers M ~Water Area ......... Streets ?....',1City Boundary' ~) HUD Offices · Proposed Projects Proposed Projects ~ Anti.Crime Programs · ~ Economic Development ~t Homeless & HIV/AIDS Programs '~ Housing ' = Infrastructure · Other ? Planning and Administration · Public Facilities · P ~blic Services ~- 3enior Programs . Youth Programs City of Tustin 41 2003-04 Action Plan 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 issue within the Tustin 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. 1. Activities to Address Emergency Shelter and Transitional Housing Needs of Homeless Individuals and Families In late 1996 and 1998, Tustin was awarded more than $1 million and approximately $800,000, respectively, for a supportive housing facility under the Continuum of Care Homeless Assistance Grant program. On December 28, 2001, the City of Tustin and Orange County Rescue Mission executed a ground lease to support the Rescue Mission's construction/rehabilitation of a 5.1 acre site to establish a 192-unit transitional housing project at the former MCAS Tustin. Currently, construction is underway and it is anticipated to be completed within the next two years. In addition, the grants will be used to perform rehabilitation, new construction, and/or acquisition in support of transitional housing units to be operated by several nonprofit organizations at the Tustin Legacy. Descriptions for these facilities are provided in Table 3. For FY 2003-04, the City will allocate funds for Laurel House, a local temporary shelter for teens, using CDBG funds. 2. Activities to Prevent Low-income Individuals and Families with Children from Becoming Homeless The City of Tustin participates in the County of Orange Continuum Care program. The Orange County Housing Authority (OCHA) established a Family Self-Sufficiency Program. Preference for this program is given to families with children who are homeless or who are in danger of becoming homeless (those paying over 50 percent of household income for rent). In addition to providing housing assistance, this program provides a variety of support services designed to assist participants become economically independent including job training and employment for program participants. 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. These activities include Episcopal Service Alliance (TFFAP Program), Dental Clinic (TAFFY), counseling program (ATSC), and Tustin Family and Youth Center programs. 3. Activities to Help Homeless Persons Make the Transition to Permanent Housing and Independent Living The City recognized that the homeless are often in need of low rent or subsidized housing City of Tustin 42 2003-04 Action Plan in order to make the transition to independent living. The Orange County Housing Authority will continue to assist homeless persons on the Section 8 waiting list. Other efforts to help the homeless also are provided by local nonprofits and churches. 4. Activities to Address the Special Needs of Persons Who Are Not Homeless The City's Senior Center provides assistance to the elderly and frail elderly. These include transportation services, case management, information and referrals, shared housing program, senior activities, health and fitness, and other recreational activities. The City allocates CDBG funds to assist the Feedback Foundation to provide meals services to the elderly and frail elderly (home-bound elderly). The City will continue to refer those persons with special needs, such as persons with disabilities (mental, physical, developmental), persons with alcohol or other drug dependencies, and persons with HIV/AIDS to appropriate agencies. The following table summarizes the organizations that provide homeless services and special needs services for FY 2003-04: TABLE 5 LISTING OF HOMELESS AND OTHER SPECIAL NEEDS ACTIVITIES FOR FY 2003-04. Target Funding Organization Program Name Population Special Needs Amount Federal Formula/Entitlement Grants TAFFY Dental Clinic Children and Low Income $ 2,500 Families Families Episcopal Service Tustin Family Food Families Low Income $ 3,846 Alliance Assistance Program Families (TFFAP) ATSC Counseling Program Youth At-risk youth $ 8,000 Laurel House Transitional Home for Youth (teens) Homeless teens $ 6,720 Teens in crisis Feedback Foundation Project TLC - Senior Meal Elderly Low/mod elderly $20,000 Program City of Tustin 2003-04 Action Plan 43 Federal Competitive Grants City of Tustin/Orange Transitional Living Center Single men Homeless $1,050,552 County Rescue and women individuals Mission City of Tustin Transitional Units Families with Homeless $800,625 Children Families Total $1,892,243 Fo Other Actions 1. General The five-year Consolidated Plan contains a housing and homeless needs assessment which describes estimated housing needs for low- and moderate-income residents, special needs populations, and the homeless. During the 2003-04 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 2003-04 funding year. Secondary Resident Units Deed Restrictions Fees, Extractions, and Permit Procedures Environmental Constraints City of Tustin 44 2003-04 Action Plan Pre-application Conferences Shared Housing Permit Processing and Coordination Section 8 Rental Assistance Recycling Single-Family Uses in R-3 Zones into Multiple-Family Units Housing Referral Program Density Bonus Program Mixed Use Zoning 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; Review 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: City of Tustin 45 2003-04 Action Plan Providing an adequate supply of housing to meet the City's need for a variety of housing types to meet diverse socio-economic needs. Ensuring equal housing opportunities for all existing and future City residents. Ensuring a reasonable balance of rental and owner-occupied housing. Preserving the existing supply of affordable housing. Conserving, maintaining, rehabilitating, and/or replacing 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 nonprofit 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. City of Tustin 46 2003-04 Action Plan 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. The City of Tustin contracts with the Orange County Housing Authority (OCHA) to provide 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 2003-04. G. Program - Specific Requirements CDBG - A description of all CDBG funds expected to be available during the 2003-04 program year is provided in Table 1. A more comprehensive listing of the City's proposed use of those funds is provided in Table 4. No program income has been received from the previous program year; none is anticipated for 2003-04. The City has no urban renewal settlements, grant funds returned to the line of credit, or income from float-funded activities. H. Citizen Participation and Consultation HUD requires that each jurisdiction encourage its citizens to participate in the development of the Consolidated Plan/Action Plan. To ensure that this opportunity is provided, the City of Tustin adopted its Citizen Participation Plan in 1995 and revised in January of 2003. The Citizen Participation Plan sets forth policies and procedures for citizen participation in planning, implementation, and assessment of the City of Tustin Consolidated Plan/Action Plan. The objectives of the Citizen Participation Plan are: To encourage citizens, particularly residents of low- and moderate-income living in areas eligible for the use of program funds, including minorities, non-English speaking persons, and persons with mobility, visual, or hearing impairments, to participate in the development of the Consolidated Plan/Action Plan. . To assure that citizens are furnished with appropriate information about the Consolidated Plan and its various component programs. The City started the Citizen Participation process by publishing a Notice of Funding Availability (NOFA) in the local newspaper seeking Request for Funding Applications for the City of Tustin 47 2003-04 Action Plan 2003-04 CDBG funds. In addition, the City also sent the NOFA to over 90 nonprofit organizations. The City received 24 applications totaling $1,239,811 in funding requests. To develop the City's 2003-04 Action Plan, two public hearings were conducted. The first public hearing was held during the preparation of the Action Plan. The hearing was held on February 5, 2003. The purpose of the first hearing was to obtain citizens' input and views on possible needs, goals, and objectives; to inform citizens about the CDBG program goals and objectives, including its process and procedures; and, to receive input and recommendations on the proposed use of CDBG funds to the City Council. The second public hearing was held on April 21, 2003. The purpose of the second hearing was for the City Council to review the Citizen Participation Committee's recommendation on the proposed use of CDBG funds for Fiscal Year 2003-04 for submission to HUD. All notices for the above hearings were published in the local newspaper at least 10 days prior to the hearing date and notices were posted at City Hall and at the library. All citizens were encouraged to participate, and those who required special accommodation were accounted for. The City also, as required by HUD, published a notice of the availability of a draft Action Plan for public review. The thirty (30) day public review and comment period began on March 1, 2003, and ended on March 31, 2003. No comments were received from this public review. I. Communication The City of Tustin provides its Citizen Participation Committee with a package of CDBG materials and conducted a workshop to explain the CDBG process and procedures. The City also provides maps and tables to assist citizens in understanding the CDBG overall goals and objectives. The City utilized the HUD-provided Community 2020 software in developing the CDBG low- and moderate-income target areas map and the CDBG proposed projects location map. The City, with the help of HUD, posts its Executive Summary on the HUD web page as a tool for interested citizens to understand the type of projects funded by the CDBG program. Information related to the CDBG program is also available on the City's Webpage. The City prepares a performance report at the end of the program year utilizing the IDIS program. J. Community Vision The City delineates the Community's vision in its Five-year (2000-2005) Consolidated Plan. The Consolidated Plan outlines community priority needs and its short-term and long-term goals and objectives. A copy of the Consolidated Plan is available to the public upon request at no cost. The City updates this Consolidated Plan as the community's vision and goals change throughout the years. The City annually submits an Action Plan to HUD as an application to receive funding. Within the Action Plan, the City provides benchmarks on each activity funded. These benchmarks will be utilized to measure the City's progress in achieving the stated goals and vision. City of Tustin 48 2003-04 Action Plan K. Strategies With limited resources, the City strives to address the affordable housing, economic oppommity, and Continuum of Care issues. Section C of this Action Plan describes the activities and strategies that the City will undertake during the program year to address the Affordable Housing issue. Section F indicates strategies that the City will undertake to address obstacles in meeting the under-served needs, foster and maintain affordable housing, remove barriers to affordable housing, evaluate and reduce lead-based paint hazards, reduce the number of poverty-level families, develop institutional structure, and enhance the coordination between the public and private housing and social services agencies. Section E of this Action Plan describes the activities that the City will undertake to address the homeless population. The City in its Consolidated Plan addresses the Continuum of Care strategies in further detail. Section C of this Action Plan describes the activities that the City will undertake to expand its economic opportunities. Due to the closure of the MCAS-Tustin, the City is cautiously undertaking an economic development plan to address all the economic oppommities that will be available. L. Action Plan Each year the City prepares an Action Plan not only for submission to HUD, but also to utilize the Action Plan as a tool to provide the public with information on how the City utilizes its entitlement grant for the program year. The Action Plan provides a description of each activity, the amount of funding, and the projected accomplishment. All of the above are summarized in the Proposed Project Table (Table 4) of the Action Plan. M. Integrated Approach to Planning and Development Utilizing the Consolidated Plan process, the City was able to identify community needs, goals, and objectives. The City also was able to identify available resources and effectively utilize the funds. The Consolidated Plan provides the City with strategies, goals, and identifiable benchmarks that the City can assess at the end of program year for program achievements. Each year the City invites public participation in identifying the needs of the community and prioritizing them in the order of high, medium, low, or no priority. With these identified needs, the City develops its Consolidated Plan/Action Plan by establishing activities to address those needs utilizing the available resources. N. Monitoring System To ensure program compliance, the City conducts a formal on-site monitoring visit to each subrecipient. The City established a monitoring procedure to ensure that each subrecipient is carrying out the eligible activity, utilizing appropriate accounting methods, and verifying City of Tustin 49 2003-04 Action Plan information provided to the City within the quarterly performance report. The on-site monitoring visit also provides the City with an oppommity to identify potential problem areas and to assist the subrecipients with technical assistance. The City utilizes a monitoring checklist form (see Appendix E) as a standard form to monitor the subrecipients. 2003-04 Action Plan City of Tustin 50 CERTIFICATIONS In accordance with the applicable statutes and the regulations goveming 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 anti-displacement 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 drag-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; , 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 City of Tustin C-1 Certification (b) Notify the employer in writing of his or her conviction for a violation of a criminal drag statute occurring in the workplace no later than five calendar days after such conviction; , 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; o 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: , 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 Congress 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 City of Tustin Certification C-2 . The City of Tustin will require that the language of paragraphs 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 City of Tustin Certification C-3 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 2003-04 (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; , 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, ifCDBG 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 City of Tustin Certification C-4 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 fimds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force -- It has adopted and is enforcing: 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 2, 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 City of Tustin Certification C-5 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. 3, 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 drag-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). City of Tustin Certification C-6 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. Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug-Free Workplace common rule 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 defined 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). City of Tustin C-7 Certification Attachment 3 Evaluation Criteria COMMUNITY 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 (see attached). B. FUNDING CRITERIA Evaluation and selection of the requests for funding proposals will also be based upon the following considerations and criteria: 1. Completion of All Application Forms and Requested Information 2. Proposer's General Experience and Capability ao 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 specific services proposed. C. Proposer's demonstrated financial status and ability to finance the proposal submitted. do Local experience - consideration will be given to operators who have demonstrated experience in providing services to Tustin area residents. City of Tustin Page 1 of 3 Evaluation Criteria e. Proposer's other sources of funding. 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. Co 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. 2. 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. 4. Have a Board of Directors whose meetings are open to the public. o 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. City of Tustin Page 2 of 3 Evaluation Criteria . 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 bookkeeping 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 An evaluation team comprised of City personnel will conduct the evaluation of the proposals; 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 allowed to present such evidence, as may be appropriate, for the team to accurately analyze all materials and documentation submitted with 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. S :\CDDkIUSTINA\cdbg~Evalua~on Criteria. doc City of Tustin Page 3 of 3 Evaluation Criteria Attachment 4 Table of Request for Funding Allocations