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HomeMy WebLinkAbout10 AMENDMENT TO THE 2016-17, 2018-19 AND 2020-21 ACTION PLANS FOR CDBGDocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 • Agenda Item 10 AGENDA REPORT Reviewed: Ds City Manager 1W Finance Director N/A MEETING DATE: JULY 20, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: AMENDMENT TO THE 2016-17, 2018-19 AND 2020-21 ACTION PLANS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY: The Federal Housing and Community Act of 1974, as amended, created the CDBG program to return federal funds to local communities for the purpose of developing viable urban communities by providing adequate housing and a suitable living environment and by expanding economic opportunities, specifically for low- and moderate -income persons. Grants are awarded to communities to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and the provision of improved community facilities and services. Federal Law related to CDBG programs indicates that HUD will consider an entitlement recipient (City) to be failing to carry out its CDBG activities in a timely manner if, sixty (60) days prior to the end of the current program year, the amount of entitlement grant funds available is more than 1.5 times the entitlement grant amount for the current program year. In order to meet the timeliness threshold required by HUD, the City would need to spend its allocation expeditiously. As such, the Community Development Department is proposing to amend the 2016-17, 2018-19 and 2020-21 Action Plans by reallocating funds from old activities to the Pine Tree Park Improvements project, which is anticipated to progress during the current 2021-22 Program Year. RECOMMENDATION: That the City Council adopt Resolution No. 21-53 amending the Community Development Block Grant (CDBG) Action Plan for Program Years 2016-17, 2018-19 and 2020-21 to transfer unspent CDBG funds to the Pine Tree Park Improvements project, which is anticipated to progress during the current 2021-22 Program Year. FISCAL IMPACT: The proposal involves the reallocation or redistribution of CDBG funds from previously approved projects. The proposed reallocations do not impact the General Fund. DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 CDBG Action Plan Amendments July 20, 2021 Page 2 CORRELATION TO THE STRATEGIC PLAN: Administration of the CDBG program falls under Goal A of the City of Tustin's Strategic Plan pertaining to Economic and Neighborhood Development. Goal A of the Strategic Plan strives to enable business opportunities and job development and to enhance the vibrancy and quality of life in all neighborhoods and areas of the community. Neighborhood revitalization and promoting economic development are both primary components within management of the CDBG program. BACKGROUND: For participation in the CDBG program, the federal government requires that local jurisdictions prepare a 5 -year Consolidated Plan document and state within its plan, the jurisdiction's goals and priorities. The City's current Consolidated Plan, adopted on April 20, 2020, covers Program Years 2020-2025. The City is also required to submit an Annual Action Plan for each of the five years covered in the Consolidated Plan. The Action Plan details how the City will spend its annual allocation of funds to meet community needs identified in the Consolidated Plan. Federal Law related to CDBG programs indicates that HUD will consider an entitlement recipient (City) to be failing to carry out its CDBG activities in a timely manner if, sixty (60) days prior to the end of the current program year, the amount of entitlement grant funds available is more than 1.5 times the entitlement grant amount for the current program year. In order to meet the timeliness threshold required by HUD, the City would need to spend its allocation expeditiously. As such, the Community Development Department is proposing to amend the 2016-17, 2018-19 and 2020-21 Action Plans by reallocating funds from old activities to the Pine Tree Park Improvements project, which is anticipated to progress during the current 2021-22 Program Year. Pine Tree Park is located within the CDBG Low/Moderate Income Target area, and is in need of renovation (see Figure 1). CDBG funds would be used to improve the neighborhood park through ADA improvements, restroom fixture replacement, picnic shelter replacement, irrigation upgrades, site furniture replacement, and additional play equipment within the existing play structure. Figure 1 Bryan Avenue Red Hill Avenue DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 CDBG Action Plan Amendments July 20, 2021 Page 3 PROPOSED AMENDMENTS / FUNDING REALLOCATIONS: The proposed amendments would reallocate funds from prior Program Year's CDBG projects to the Pine Tree Park Improvements Project as follows: within the 2016-17 Program Year, there is a remaining balance of $167,509 after completion of the Senior Center Alternate Power Source Improvements Project; within the 2018-19 Program Year, there is $211,116 from the Red Hill Improvements Project, in which the project was delayed; and, within the 2020-21 Program Year, there is $513,145 which was previously earmarked for Emergency Response Funding, and is no longer necessary, as the City has other resources for COVID-19 response. The table below summarizes the proposed reallocations: .. Senior Center Alternate Power PY 2016-17 Pine Tree Park Improvements $167,509.00 Source Improvements Project Red Hill Improvements Project PY 2018-19 Pine Tree Park Improvements $211,116.00 Emergency Response PY 2020-21 Pine Tree Park Improvements $513,145.00 Funding Total $891,770.00 In accordance with Federal Law, the City has published a notice in the local newspaper with regard to the proposed amendments. The public was invited to comment on the proposed amendments during the 30 -day review period, from June 17, 2021, through July 16, 2021. As of the date of the preparation of this staff report, there were no public comments received regarding the proposed amendments. Staff recommends that the City Council adopt Resolution No. 21-53 amending the Community Development Block Grant (CDBG) Action Plans for Program Years 2016-17, 2018-19 and 2020-21 to transfer unspent CDBG funds to the Pine Tree Park Improvements project, which is anticipated to progress during the current 2021-22 Program Year. DocuSigned by: DocuSigned by: gkiounkv- �l�V�-0L �a�{i�u �. UviQQ�cenn A9EME5ECDAME3... ED45DA2623B54A5... Adrianne DiLeva Management Analyst II Attachment: A. Resolution No. 21-53 Justina L. Willkom Community Development Director DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 Attachment A City Council Resolution No. 21-53 DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 IG]=19]X09 to] 011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING AMENDMENTS TO THE 2016-17, 2018-19 AND 2020-21 ACTION PLANS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND AUTHORIZING SUBMISSION OF THE AMENDMENTS TO THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. WHEREAS, under the Housing and Community Development Act of 1974, as amended, federal assistance may be provided for the support of community development activities which are directed toward certain specific objectives as set forth in the Act as the Community Development Block Grant; WHEREAS, previously funded CDBG activities have unexpended funds; WHEREAS, it is important that the City of Tustin expend CDBG funds expeditiously to meet the timeliness requirement; WHEREAS, funds must be reallocated to other eligible activities prior to expenditure; WHEREAS, citizens were notified of the proposed amendments to the 2016-17, 2018-19 and 2020-21 Action Plans through a legal notice published in the local newspaper; and WHEREAS, the City Council considered the amendment at the meeting on July 20, 2021. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1: The amendments to the City of Tustin's 2016-17, 2018-19 and 2020- 21 Action Plan shall be as follows: From Projects Program Year To Projects Amount Senior Center Alternate Power PY 2016-17 Pine Tree Park Improvements $167,509.00 Source Improvements Project Red Hill Improvements Project PY 2018-19 Pine Tree Park Improvements $211,116.00 Emergency Response PY 2020-21 Pine Tree Park Improvements $513,145.00 Funding Total $891,770.00 DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 City Council Resolution No. 21-53 Page 2 Section 2: The City of Tustin's amendments to the 2016-17, 2018-19 and 2020-21 Action Plans are hereby approved as presented to the City Council at their hearing on July 20, 2021, and attached hereto as Exhibit A. Section 3: Staff is hereby directed to submit the amendments to the 2016-17, 2018-19, and 2020-21 Action Plans to the federal Department of Housing and Urban Development. Section 4: The City Manager of the City of Tustin or his/her designated representative, such as the Community Development Director, is authorized to execute documents, certifications, contracts or other instruments as may be required to carry out the City's Community Development Block Grant Program. Section 5: 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 20th day of July, 2021. LETITIA CLARK MAYOR ATTEST: ERICA N. YASUDA CITY CLERK DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 City Council Resolution No. 21-53 Page 3 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 21-53 ERICA N. YASUDA, 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. 21-53 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 20th day of July, 2021, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA CITY CLERK DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 Exhibit A to Resolution No. 21-53 (Amended pages from 2016-17, 2018-19, & 2020-21 Action Plan) DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 Amended Pages From 2016-17 Action Plan DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 AP -35 Projects — 91.220(d) Introduction The City of Tustin is implementing a one-year funding cycle for non-public service programs such as public facility improvements, housing/neighborhood rehabilitation and preservation, and program administration/planning activities. Funding requests for these types of projects will be reviewed annually. Public Service programs will be allocated on a three-year funding cycle. This Action Plan covers activities to be funded during PY 2016-17 (Year three of the three-year funding cycle). Notices of Funding Availability (NOFA) for the next three-year funding cycle (2017-18, 2018-19, 2019-20) are anticipated to be released by the City of Tustin in November 2016. For 2016-17, the City of Tustin's CDBG grant allocation is $680,478. Of this amount a maximum of 15 percent may be used for public services and 20 percent for program administration. The following is a listing of the activities that will be funded with CDBG during PY 2016-17: # Project Name 1 CDBG PROGRAM ADMINISTRATION 2 FAIR HOUSING SERVICES 3 OLD TOWN STUDY 4 BOYS AND GIRLS CLUB - UPWARD BOUND 5 COMMUNITY SENIORSERV 6 GRAFFITI REMOVAL - CDBG AREAS ONLY 7 MERCY HOUSE - EMERGENCY SHELTER 8 OLIVE CREST 9 TFYC COORDINATOR 10 KIDS CORNER PRESCHOOL 11 SENIOR CENTER ALTERNATE POWER 12 CODE ENFORCEMENT 13 PINE TREE PARK IMPROVEMENTS Table 7 — Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The City's aim is to leverage, to the maximum extent feasible, the use of available federal, State, and local funds in an effort to create a viable community, develop new affordable housing opportunities, and maintain and preserve existing housing. To ensure the financial feasibility of a project, the City will consider the use of funds from other sources, such as the City's Housing Authority set-aside funds, to further affordable housing and community development goals whenever a match, grant, or loan is necessary or appropriate. The City will continue to allocate its CDBG funding to projects with the CDBG Low/Moderate Census Tract Target Area, or to directly benefit low/moderate income residents. To meet the underserved needs of the community, the City will: make efforts to coordinate with federal, State, and local agencies to provide appropriate assistance to residents; coordinate with public service providers to promote adequate services to residents; and, work to provide physical improvements to slum Annual Action Plan 2016 OMB Control No: 2506-0117 (exp. 07/31/2015) 42 DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 13 project Name Pine Tree Park Improvements Project Target Area CDBG Low/Mod Census Tract Target Area Goals Supported Improvements to existing Parks Needs Addressed Public Facilities Need Funding CDBG: $167,509 (reallocated from unspent funds from Senior Center Alternate Power Source Improvements Project) Description Improvements to Pine Tree Park to include: ADA improvements, restroom fixture replacement, picnic shelter replacement, irrigation upgrades, site furniture replacement, and additional play equipment within the existing play structure. Target Date 6/30/2022 Estimate the number and 32,993 will benefit within the CDBG Low/Mod Census Tract type of families that will Target Area. benefit from the proposed activities Location Description CDBG Low/Moderate Income Census Tract Target Area Planned Activities Improvements to Pine Tree Park to include: ADA improvements, restroom fixture replacement, picnic shelter replacement, irrigation upgrades, site furniture replacement, and additional play equipment within the existing play structure. Annual Action Plan 2016 OMB Control No: 2506-0117 (exp. 07/31/2015) 53 DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 Amended Pages From 2018-19 Action Plan DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 Projects AP -35 Projects — 91.220(d) Introduction The City of Tustin is implementing a one-year funding cycle for public services; non-public service programs such as public facility improvements, housing/neighborhood rehabilitation and preservation; and, program administration/planning activities. Funding requests for all projects will be reviewed annually. For 2018-19, the City of Tustin's CDBG grant allocation is anticipated to be approximately $700,000. This funding amount, and the funding allocations for the projects listed below, are preliminary. The official funding amount(s) will be provided once the City of Tustin receives formal notification from HUD. Of this amount, a maximum of 15 percent may be used for public services and 20 percent for program administration. The following is a listing of the activities that are proposed to be funded with CDBG during PY 2018-19: Projects # Project Name 1 Boys & Girls Clubs of Tustin 2 Graffiti Removal - CDBG Low/Moderate Income Target Area 3 Tustin Family & Youth Center Coordinator 4 Community Senior5ery 5 Family Promise of Orange County 6 Goodwill of Orange County 7 Human Options 8 Mercy House 9 MOMS Orange County 10 Patriots & Paws 11 Veterans Legal Institute 12 YMCA of Orange County 13 Old Town Improvements 44 Red Hill Imprevements Pine Tree Park Improvements 15 Frontier Park Walking Trail and Irrigation Renovation 16 Code Enforcement 17 CDBG Program Administration 18 Fair Housing Services Table 7 - Project Information Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 39 DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 49 Estimate the number 3,500 residents of the Old Town Tustin area. and type of families that will benefit from the proposed activities Location Description Old Town Tustin/Downtown Commercial Core Plan Area located within census tract 755.05 Block Groups 1, 2, and 3. Planned Activities Public facility improvements throughout Old Town Tustin to potentially include, parklets, bollards, Main Street design, sidewalks, park lighting, etc. 14 project Name Red Hill lrnpre„emeRtS Pine Tree Park Improvements Target Area CDBG Low/Mod Census Tract Target Area Goals Supported Infr"+ructuYe Improvements Improvements to existing parks Needs Addressed Sewer IrRpreye RtS k -s n+her Public Facilities Needs Funding CDBG: $211,116 Description D- hke e + a!E) g the Red- Hillye—A- a ruler %yithin the Red Hill Avenue Specific Plan area, iRGlUdiRg, but not himmitedd tA-.' median ;,; ,iS; StFipiRg te aeea rrrrredatebieyelelaReand pcedeStFiaR ,5 e-Rh-anee R t s. Improvements to Pine Tree Park to include: ADA improvements, restroom fixture replacement, picnic shelter replacement, irrigation upgrades, site furniture replacement, and additional play equipment within the existing play structure. Target Date 6/30/2019 6/30/2022 Estimate the number 32,993 residents who live within the CDBG Low/Moderate Income and type of families Census Tract Target Area. that will benefit from the proposed activities Location Description CDBG Low/Moderate Income Census Tract Target Area Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 49 DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 50 Planned Activities Public ; "+� along the Red Hill Avenue , rideryi th n the Red W011 Avenue Specific Plan aFea, including, but net lernited te-.- Median r ts. stFip ng to - e date bicycle lanes; and pedestrian "h r ts Improvements to Pine Tree Park to include: ADA improvements, restroom fixture replacement, picnic shelter replacement, irrigation upgrades, site furniture replacement, and additional play equipment within the existing play structure. 15 Project Name Frontier Park Walking Trail and Irrigation Renovation Target Area CDBG Low/Mod Census Tract Target Area Goals Supported Existing Parks/Recreation Facilities Needs Addressed Other Public Facility Needs Funding CDBG: $237,455 Description This proposal includes a request to construct a walking trail, remove and replace the irrigation system, implement a reduction in turf, and renovation of existing turf. This park is located within the CDBG Low/Moderate Census Tract Target Area. Target Date 6/30/2019 Estimate the number Approximately 32,993 Tustin residents living within the CDBG and type of families Low/Moderate Income Census Tract Target Area. that will benefit from the proposed activities Location Description Frontier Park, 1400 Mitchell Avenue, Tustin, CA 92780. Planned Activities This proposal includes a request to construct a walking trail, remove and replace the irrigation system, implement a reduction in turf, and renovation of existing turf. This park is located within the CDBG Low/Moderate Census Tract Target Area. 16 project Name Code Enforcement Target Area CDBG Low/Mod Census Tract Target Area Goals Supported Code Enforcement Needs Addressed Code Enforcement Funding CDBG: $88,000 Annual Action Plan 2018 OMB Control No: 2506-0117 (exp. 06/30/2018) 50 DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 Amended Pages from 2020-21 Action Plan DocuSign Envelope ID: 8D9F7D6C-0780-42D6-BCD7-8623739C6164 Projects AP -35 Projects — 91.220(d) Introduction The City of Tustin is implementing a one-year funding cycle for non-public service programs such as public facility improvements, housing/neighborhood rehabilitation and preservation, and program administration/planning activities. Funding requests for these types of projects will be reviewed annually. Public Service programs will be allocated on a three-year funding cycle. This Action Plan covers activities to be funded during Program Year (Year -one of the three-year funding cycle). Public service allocations for future years will be included within their respective Action Plans. Funding for future years public service activities will be based on the prior year funding levels, adjusted to account for variations in CDBG grant allocations from HUD. For 2020-21, the City of Tustin CDBG grant allocation is $848,019. Of this amount a maximum of 15 percent ($127,200) may be used for public services and 20 percent for program administration. The following is a listing of the activities that will be funded with CDBG during PY 2020-21: Projects # Project Name 1 Boys & Girls Clubs of Tustin 2 Community Health Initiative of Orange County 3 Families Forward 4 Goodwill of Orange County 5 Human Options 6 Meals on Wheels Orange County 7 Mercy House 8 MOMS Orange County 9 Orange County Gateway to Housing 10 Patriots & Paws 11 Veterans Legal Institute 12 YMCA of Orange County 13 Code Enforcement 14 CDBG Program Administration 15 Fair Housing Services 16 ER;ergeRey RespeRse FuR&;rt Pine Tree Park Improvements Table 56 — Project Information Consolidated Plan TUSTIN 149 OMB Control No: 2506-0117 (exp. 06/30/2018) DocuSign Envelope ID: 8D9F7D6C-07B0-42D6-BCD7-8623739C6164 16 project Name Emergency Response FundiRg Pine Tree Park Improvements Target Area �i+� CDBG Low/Moderate Income Census Tract Target Area Goals Supported Strategies t A,d,drn« He—rnelessness Public Se D--hlir C-,.-ili+ies. Aff.,.rd-,hln Housing Programs Ecen.,mie neyel.,n., en+ Activities Planning Activities Existing Parks/Recreation Facilities Improvements Public Facilities Needs Addressed Senior S„r„i 14e—rneless e-eds a R d Supportive SeFvice Public [-„-ility Needs D--hli.- Serviee Needs Ec c Development P'aRR!Rg Hensing Assist ,nro New Parks and Park Improvements Public Facility Needs Funding $513,145 Description or„i,,,.++„ remain epeR n.d +„ be - HrgeRt , ni+„ deyel, Amen+ n o,J arise fl,r the City of Tustin inelu.diRg but n.,+ Ii. W.- displ-,eer eRtr r eleGatieRi aeclinliSitieR, a Rd replacement of .i+.,.d Improvements to Pine Tree Park to include: ADA improvements, restroom fixture replacement, picnic shelter replacement, irrigation upgrades, site furniture replacement, and additional play equipment within the existing play structure. Target Date 6/30/29216/30/2022 Estimate the number C-itywide benefit, - atel„ 92,000 T„S+in residents. 32,993 would and type of families benefit within the CDBG Low/Moderate Income Census Tract Target that will benefit from Area. the proposed activities Location Description Citywide benefit pF9jer=t 1. eatir,n +„ h„ ,determined- if e. eFgeney respeRse is ranted. CDBG Low/Moderate Income Census Tract Target area Consolidated Plan TUSTIN 161 OMB Control No: 2506-0117 (exp. 06/30/2018) DocuSign Envelope ID: 8D9F7D6C-0780-42D6-BCD7-8623739C6164 Planned Activities or^;^,-++„ remainepenand +„ be fu ndee.d if an urgent cernmunity rleyelr.r,.,- ent reed .-b,r.. �I.J arise fer the City r,f Tw tiR including but Improvements to Pine Tree Park to include: ADA improvements, restroom fixture replacement, picnic shelter replacement, irrigation upgrades, site furniture replacement, and additional play equipment within the existing play structure. Consolidated Plan TUSTIN 162 OMB Control No: 2506-0117 (exp. 06/30/2018)