HomeMy WebLinkAbout01 CDBG FUNDS 10-02-95NO. 1
10-2-95
~ATE:
OCTOBER 2, 1995
Inter-Corn
TO:
FROM:
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
SUBJEC¥: AMENDED FINAL STATEMENT (APPLICATION) FOR PROPOSED USE OF
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS - FISCAL YEAR
1994-95
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 95-87
approving an amendment to the Final Statement (application) for the
proposed use of Community Development Block Grant (CDBG) funds for
Fiscal Year 1994-95.
FISCAL IMPACT
The proposal involves the reallocation of previously authorized
CDBG funds. The additional activities to be undertaken as a result
of the proposed amendment will be accomplished' entirely with
federal CDBG monies. No impacts to the General Fund are
anticipated.
BACKGROUND
In May of 1994, the Tustin City Council approved the allocation of
$494,000 of federal CDBG funds to a variety of public facility,
rehabilitation, historic preservation, and public service projects
and programs. At that time, $25,000 was allocated to the City's
Commercial Rehabilitation Program.
That program was initially very popular, and numerous structures,
primarily in the Old Town area, were seismically renovated or given
facade upgrades. However, in recent years there has been less
demand for such rehabilitation funds.
During the past 18 months, the need for a youth center in the
southwest neighborhood has become a community priority. The vacant
building located at 14722 Newport Avenue was recently purchased by
the City for use as both a drop'in youth center and Head Start pre-
school program, benefitting children and families living in the
predominantly low-income southwest area of the city. A substantial
amount of funds will be required for the renovation of that
structure.
City Council Report
Amended Final Statement - CDBG Funds FY 1994-95
October 2, 1995
Page 2
Community Development Block Grant (CDBG) funds and Redevelopment
Agency South Central project area funds have previously been
allocated to the youth center project. From the Fiscal Year 1995-
96 grant of federal funds, $50,000 was allocated for the renovation
of a building for a youth facility; $28,000 was allocated for
operation of the center. In March of 1995, the Agency authorized
the expenditure of up to $50,000 in funds for architectural
services. Further, Community Development Department staff is in
the process of working with the County of Orange to reallocate CDBG
funds allocated to us under the Urban Counties program. The
proposed amendment will provide an additional portion of the
funding necessary for design and rehabilitation of the youth
center.
ANALYSIS
I't is important that Tustin draw down CDBG funds as quickly as
possible. During the federal monitoring of our program, the
Department of Housing and Urban Development (HUD) will examine the
rate at which the City of Tustin has expended its grant awards.
Regulations discourage a jurisdiction from accruing more than 1.5
times its total grant award ($494,000 X 1.5 = $741,000).
Inadequate spending may jeopardize our future year's grants.
Reallocating funds to allow their use for support of the youth
center project will help us ensure full awards in subsequent years.
Ail appiicable HUD regulations have been followed in the processing
of this change in the use of CDBG monies. Staff has published a
notice of the amended Final Statement (application to HUD), as well
as the required public hearing, in the local newspaper.
CONCLUSION
Based on the above analysis, staff recommends that Council support
the amendment to the Final Statement for Fiscal Year 1994-95.
Resolution No. 95-87 has been prepared for Council action. Staff
will be available during the public hearing to make a presentation
on the CDBG Program and the amendment, as well as answer questions
about the above-listed recommendations.
la R~
ASsociate Planner
~C~ristineYA. Shi~gleton
Assistant City Manager
PR :bt :kd\ccreport\cdbg94-5.am2
- 1 RESOLUTION NO. 95-87
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, AppRoVING AN AMENDMENT TO THE
CITY'S 1994-95 FINAL STATEMENT (APPLICATION) FOR
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND
AUTHORIZING SUBMISSION OF SUCH APPLICATION TO THE
FEDERAL DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT.
WHEREAS, under the Housing and Community Development Act
of 1974, as amended, Federal assistance may be provided for
the support of community development activities which are
directed toward certain specific objectives as set forth in
the Act as the Community Development Block Grant (CDBG)
Program; and
WHEREAS, in May of 1994 the City Council approved
Resolution 94-54, authorizing allocation of federal CDBG funds
for Fiscal Year 1994-95 to various projects and programs; and
WHEREAS, in the months since Council's initial allocation
of CDBG funds, staff has re-evaluated some of those planned
expenditures and finds that City and community needs have
changed; and
WHEREAS, Council finds that monies allocated to the
Commercial Rehabilitation Program can be reallocated to design
and/or construction of a neighborhood youth center'
WHEREAS, citizens were notified of the proposed changes
in use of CDBG funds through an advertisement published in the
local newspaper; and
WHEREAS, a staff report has been prepared recommending
proposed projects for the City's participation in the 1994-95
CDBG Program; and
WHEREAS, a public hearing to obtain the views of citizens
on the amended Final Statement, was held by the City Council
on October 2, 1995.
NOW THEREFORE BE IT RESOLVED, the City Council of the
City of Tustin resolves as follows-
Section 1: The Amendment to the City of Tustin's 1994-95
application for CDBG funds eliminates' the allocation of
$25,000 to the Commercial Rehabilitation Program and
reallocates the funds to the design and/or construction of the
Youth Center.
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Resolution l~o. 95-87
Page 2
Section 2: Staff is hereby directed to prepare and
submit an Amended Final Statement to the federal Department of
Housing and Urban Development reflecting Council's direction
for the City's participation in the 1994-95 CDBG funding year.
Section 3: The Assistant City Manager of the City of
Tustin or her designated representative is authorized to
execute such documents, certifications, contracts, or other
instruments as may be required to carry out the City's
Community Development Block Grant Program.
Section 4: The City Clerk shall certify to the adoption
of this Resolution and shall file a copy of said application
with the minutes of this City Council meeting.
PASSED and ADOPTED by the City Council of Tustin this 2nd
day of October, 1995.
JIM POTTS
Mayor
Pamela Stoker
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
SS
CERTIFICATION FOR RESOLUTION NO. 95-87
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. 95-87 was duly adopted at a regular meeting of
the Tustin City Council, held on the 5th day of December,
1994.
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER:ABSENT:
PAMELA STOKER
City Clerk
PR: kd\CCRESOS\95-87, pr