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HomeMy WebLinkAbout16 HUD GRANT 05-21-01 NO. 16 AGENDA REPORT MEETING DATE: MAY 21,2001 650-40 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: REDEVELOPMENT AGENCY STAFF SUBJECT: REQUEST FOR ASSIGNMENT OF HUD SUPPORTIVE HOUSING PROGRAM GRANT CA16B961326 AND CA16B802004 PERTAINING TO MCAS TUSTIN SUMMARY Approval is requested to authorize the City Manager or designee to execute contract agreements providing the City of Tustin with federal Housing and Urban Development (HUD) Supportive Housing Program (SliP) grant funds for use in rehabilitation or new construction of transitional housing at the former Marine Corps Air Station (MCAS) Tustin. RECOMMENDATION It is recommended that the City Council adopt Resolution 01-48 authorizing the City Manager or designee to execute the requisite grant agreements between the City of Tustin and HUD and/or County of Orange to provide federal SliP grant funds for use in the rehabilitation or new construction of transitional housing at the former MCAS Tustin. FISCAL IMPACT No fiscal impact. In 1996 (Grant CA16B961326) and 1998 (Grant CA16B802004), HUD approved the City of Tustin's SliP applications providing $1,851,177 in federal funds for the rehabilitation or new construction of transitional housing units at the former MCAS Tustin. Grant approval is conditional upon the provision of a 100% matching cash contribution. Both of the City's applications approved by HUD assigned the City's future responsibility for the 100% cash match to either the approved homeless provider designated in the Reuse Plan for MCAS Tustin or a private developer to be selected for the rehabilitation/new construction of the existing family housing at the easterly edge of MCAS Tustin. Administrative costs associated with the City's proposed administration of the SHP grants would be covered by existing staff, requiring no additional allocations to the current City budget and could be partially reimbursed through a portion of the subject HUD grants. William A. Huston SHP Grant- MCAS Tustin May 21, 2001 Page 2 BACKGROUND/DISCUSSION In October 1991, MCAS Tustin was approved for closure. In October 1996, the City of Tustin approved a Reuse Plan for the former MCAS Tustin that included provisions to accommodate the use of 242 units for transitional housing by five homeless providers (Orange County Rescue Mission, Salvation Army, Families Forward, Human Options, and the Orange Coast Interfaith Shelter). In 1996 and 1998, the City of Tustin applied for SHP grant funding to assist the approved homeless providers in the rehabilitation or new construction of the approved transitional housing at MCAS Tustin. In 1996, HUD approved the City's request for $1,050,552 (SHP Grant CA16B961326) to rehabilitate 192 existing barracks units and construct new support buildings associated with the Orange County Rescue Mission's proposed Village of Hope at MCAS Tustin. In 1998, HUD approved the City's request for $800,625 (Slip Grant CA16B802004) to rehabilitate or reconstruct 50 units of family housing located at the easterly edge of the MCAS Tustin. 36 family transitional housing units would be located in Tustin and operated by the Salvation Army, Human Options and the Orange Coast Interfaith Shelter. 14 family transitional housing units would be located in Irvine and operated by the Families Forward. SHP programs are intended by HUD to be a locally implemented part of a regional, comprehensive plan to address the problem of homelessness. Due to their regional focus, HUD SHP grants are typically administered through regional governments (i.e., the County of Orange). Although MCAS Tustin has been officially closed since July 2, 1999, the Navy has not yet disposed of any property at the base. Due to the complications associated with federal property disposal and given the City of Tustin's unique role as the Local Redevelopment Authority (LRA) for MCAS Tustin, HUD has agreed to allow the City of Tustin to assume direct responsibility from the County of Orange for the administration of both SHP grants. Direct administration of the two grants would facilitate rapid redevelopment of MCAS Tustin and the Reuse Plan's accommodation of homeless transitional housing needs. Once approved by the Tustin City Council, Tustin staff would administer the two SHP grant projects with existing staff in a manner similar to that currently being performed for the City's Community Development Block Grant (CDBG) programs. On April 3, 2001, the County Board of Supervisors approved the assignment of the 1996 and 1998 SHP grants to the City of Tustin. It is recommended that the Tustin City Council adopt Resolution 01-48 authorizing the City Manager or designee to execute the requisite grant agreements between the City of Tustin and William A. Huston SHP Grant- MCAS Tustin May 21,2001 Page 3 HUD and/or the County of Orange to provide SHP grant funds for use in the rehabilitation or new construction of transitional housing at the former MCAS Tustin. Christine A. Shingletgrf'~) - Dana Ogdon Assistant City Manager Program Manager Attachment: Resolution 01-48 rda\ccrepor;.shp.doc 4 RESOLUTION NO. 01-48 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN AUTHORIZING THE ASSIGNMENT OF HUD SUPPORTIVE HOUSING PROGRAM GRANTS CA16B961326 AND CA16B802004 PERTAINING TO THE FORMER MCAS TUSTIN The City Council of the City of Tustin finds as follows: A. The Marine Corps Air Station (MCAS) Tustin officially closed on July 2, 1999; and B. The City of Tustin, acting as the Department of Defense designated Local Redevelopment Authority for MCAS Tustin approved a Reuse Plan for the base that proposes the accommodation of 242 units of homeless transitional housing at the base; and C. The federal department of Housing and Urban Development (HUD) has approved the City of Tustin's applications requesting $1,851,177 in Supportive Housing Program (SHP) grant funds intended for the rehabilitation or new construction of the approved transitional housing at MCAS Tustin; and D. The County of Orange and HUD have agreed to assign administrative responsibility for the approved grants (CA16B961326 AND CA16B802004) to the City of Tustin; and E. City administration of the SHP grants would facilitate rapid redevelopment of MCAS Tustin and the Reuse Plan's accommodation of homeless transitional housing needs. NOW, THEREFORE, the City Council of the City of Tustin resolves as 2~ follows: Section 1. Approves and authorizes the City Manager or designee to execute contract agreements with HUD and/or the County of Orange to provide the City of Tustin with federal HUD SHP grant funds for use in the rehabilitation or new 24 construction of transitional housing at the former MCAS Tustin. 25 Resolution 01-48 2 Page 2 4 PASSED AND ADOPTED at a regular meeting of the City Council held on the 21st day of May 2001. 7 TRACY WILLS WORLEY, Mayor 8 9 ]o PAMELA STOKER City Clerk 11 STATE OF CALIFORNIA ) ~2 COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do 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. 01-48 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 21st day of May 2001, by the following vote: COUNCILMEMBER AYES: COUNCILMEMER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: 19 PAMELA STOKER 2o CITY CLERK DO:'~ccresos',01-48 shp .doc 22 23 25