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HomeMy WebLinkAbout2001-104 I RESOLUTION NO. 2001-104 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING AND APPROVING THE (1) REALLOCATION OF 2000-2001 CDBG FUNDS IN THE AMOUNT OF $110,000 3 (ATTACHMENT I(D) AND ESG FUNDS IN THE AMOUNT OF $15,000; (2) 2001-2002 ANNUAL CONSOLIDATED PLAN ("PLAN") WHICH INCLUDES FUNDING ACTIVITIES FOR CDBG, 4 HOME, ESG, IN THE TOTAL AMOUNT OF $6,122,000; (3) MAYOR, OR HER DESIGNEE TO EXECUTE AND SUBMIT TO U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT 5 (HUD) ALL REQUIRED DOCUMENTS AND TO TAKE ALL NECESSARY ACTIONS TO IMPLEMENT THE CITY'S 2001-2002 PLAN, INCLUDING EXECUTION OF CDBG 6 AGREEMENTS WITH RESPECTIVE SERVICE PROVIDERS. 7 SECTION 1. That the Mayor and Common Council hereby approve the 2001-2002 Annual 8 Consolidated Plan and the CDBG funding activities described in Attachment 1 and the ESG and 9 HOME activities described in the agenda staff report, which is on file with the City Clerk. 10 SECTION 2. That the Mayor is authorized to execute and submit to the U.S. Department II of Housing and Urban Development (HUD) all appropriate documents and take all necessary 12 actions to implement the City's 2001-2002 Annual Consolidated Plan, including, but not limited 13 to, the preparation and execution of CDBG Agreements with the respective agencies, as prepared 14 and approved by the City Attorney or, if the City Attorney conflicts off on a specific agency, as 15 prepared and approved by Special Counsel, a standard copy of which is on file with the City 16 Clerk, and incorporated herein by reference as though fully set forth at length. 17 SECTION 3. That the ADA sidewalk improvements for fiscal year 2001-2002 are hereby 18 funded at $250,000.00 from Capital Improvement Fund #129 - Measure "I" - Account No. 129- 19 367-5504-7202. 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III 2001-104 RESOLUTION OF TIlE MAYOR AND COMMON COUNCIL AUTHORIZING AND APPROVING 2 THE (I) REALLOCATION OF 2000-2001 CDBG FUNDS IN THE AMOUNT OF $110,000 (ATTACHMENT I(D) AND ESG FUNDS IN THE AMOUNT OF $15,000; (2) 2001-2002 ANNUAL 3 CONSOLIDATED PLAN ("PLAN") WHICH INCLUDES FUNDING ACTIVITIES FOR CDBG, HOME, ESG, IN THE TOTAL AMOUNT OF $6,122,000; (3) MAYOR, OR HER DESIGNEE TO 4 EXECUTE AND SUBMIT TO U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT (HUD) ALL REQmRED DOCUMENTS AND TO TAKE ALL NECESSARY ACTIONS TO 5 IMPLEMENT THE CITY'S 2001-2002 PLAN, INCLUDING EXECUTION OF CDBG AGREEMENTS WITH RESPECTIVE SERVICE PROVIDERS. 6 7 8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a joint regular meetin 18 19 R.iLe Pwf fYatIv Rachel G. Clark, City Clerk The foregoing Resolution is hereby ~o~~~~!;;'; ~~ 2001. 20 21 22 23 24 Approved as to form and legal content: 25 JAMES F. PENMAN, 26 City Attorney 27 f' " 7 28 By: ~~CJ r. //C..:h..-n.-'.,......""-, (j 2 2001-104 THE CITY OF SAN BERNARDINO DRAFT CONSOLIDATED PLAN for fiscal years 2001-02 CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY I. ANNUAL ACTION PLAN ......................................................................................................1 Introduction .............................................................................................................................. .....1 A. Strategy Implementation...... ...................... ...... ............ .................... .......... ............ ..................2 1. Funding Sources and Available Programs ......................................................................2 2. Support of Applications by Other Entities ......................................................................5 3. Priority Investment Plan ................. ....... .......... ............................ ....................................6 4. Non-Housing Community Development Needs..............................................................9 5. Geographic Distribution........ .......... ............. ............ ...... ................... .......................... ..13 6. Service Delivery Management ......................................................................................13 B. Other Actions..... ............................. .................... .................................................................. .14 I. Public Policies ...............................................................................................................14 2. Institutional Structure ................. .......... ................... ................... ............ ...................... .15 3. Public Housing Improvements ......................................................................................15 4. Public Housing Resident Initiatives ..............................................................................15 5. Lead-Based Paint Hazard Reduction............................................................................. I 5 C. Anti-Poverty Strategy...................... ............. ................... ........... ........... ........... ......... ........... ..16 D. Coordinating Services. ........................ .......... ....... ...... ......... ................ ........ ................... ....... .16 E. Program/Project Monitoring ..................................................................................................16 F. Required Program Requirement.............................................................................................16 Listing ofFY 2001-2002 Proposed Projects..................................................................................19 ATTACHMENT I 1 I. ANNUAL ACTION PLAN INTRODUCTION The City of San Bernardino has developed a five-year strategy to meet the affordable housing and community development needs of its citizens, as described in this Annual Action Plan. In this Plan, the City of San Bernardino sets forth the specific plan for investment and use of affordable and supportive housing funds as well as other funds that are expected to be available during the 2001- 2002 federal fiscal year. This Plan presents the City of San Bernardino's goals for assisting individuals and households with their housing and supportive service needs as well as the City's goals for providing needed public facilities, infrastructure improvements, and economic development activities. The City has established its approach of developing goals and objectives that will have a long- term stabilizing impact on City neighborhoods through the concentration of resources on eight specific citywide priorities. The City involves the community in determining needs and issues and designing programs. The City also coordinates the efforts of various City Departments to meet the identified housing needs, and utilizes housing programs and projects to create sufficient visual impact intended to stimulate additional private investment in the City's housing and neighborhoods. The Annual Action Plan contains the following sections: A. Strategy Implementation. This section provides the City's investment plan for Fiscal Year 2001-2002. The investment plan includes funding sources; programs, funding levels and households to be assisted under each priority; the geographic allocation of resources; and a plan for service delivery and management. B. Other Actions. This section will discuss the City's proposed actions to ameliorate the negative impacts of public policies, to examine and modifY the institutional structure to improve service delivery, to improve public housing, to undertake public housing resident initiatives and to reduce the hazards associated with lead-based paint. C. Anti-Poverty Strategy. This section contains the City's strategy to reduce the number of households with incomes below the poverty line. D. Coordinating Services. This section describes the City's plan to increase coordination between various providers of housing and community services in San Bernardino. E. ProgramIProiect Monitoring. This Section states the process the City will undertake to ensure recipients of federal funds are in compliance with federal and local regulations. F. Program Requirements. This section contains two required certifications that the City will affirmatively further fair housing and is following a residential anti-displacement and relocation plan. G. Summary of Citizen Comments. This section summarizes comments received during the public review period and will describe how these comments were addressed, if applicable. ~ I A. STRATEGY IMPLEMENTATION As stated previously, the mission ofthe City of San Bernardino is to actively maintain, improve and develop quality neighborhoods and housing opportunities throughout the City of San Bernardino. The City has identified eight "needs" and priority areas to pursue. The priority areas are: 1. Preservation and rehabilitation of the "affordable" existing single family units. 2. Expansion of homeowners hip opportunities and assistance to homebuyers with the purchase of affordable housing (existing and new construction). 3. Provision of rental assistance and preservation of existing affordable rental housing. 4. Assistance to homeless and special needs persons with supportive services programs. 5. Expansion of "affordable" housing opportunities through new construction. 6. Promotion of Economic Development and Employment Opportunities for Low- and Moderate-Income Households. 7. Improvement and Expansion of Infrastructure to Meet Current and Future Needs and To Create a Suitable Living Environment. 8. Elimination ofImpediments for Fair Housing Through Education, Enforcement, and Testing. The City's strategy is to aggressively utilize federal, state and local funding sources to operate a number of programs to assist households in each of the eight priority areas. Following is a discussion of funding sources, a summary of each of the priorities listed in the Five Year Strategy section of this Consolidated Plan, the One Year Objectives that have been established by the City, the proposed geographic allocation of resources and a plan for service delivery and management. 1. Fundinl( Sources and Available Prol(rams a. Funding Sources Anticipated to be Available for Programs and Activities. The resources expected to be available to carry out projects and activities identified during the 2001-2002 fiscal year are: Federal Source Propram Resources CDBG $4,014,000 HOME $1,971,000 ESG $152,000 Section 8 - Proiect & Tenant $6,170,829 Section 8 - Moderate Rehabilitation Propram $535,000 Section 108 $1 800,000 TOTAL $14.642.829 2 Local Resources Proprams Resources RDA General Funds (Approximately) $5,000,000 RDA 20% Housine Funds $3,000,000 General Fund (Annroximately) $1,050,000 TOTAL $9,050,000 Non-Profit and For Profit Sources Prol!rams Resources Neiehborhood Housine Services (Aooroximately) $1,000,000 In-kind Donations (Annroximately) $500,000 Deyelooer Inyestment (Aooroximately) $6,000,000 Private Lendine Institutions (Annroximately) $12,000,000 TOTAL $19 500,000 b. Available Programs for Which the City Does Not Intend to Apply. The City of San Bernardino does not intend to apply for the following federal resources during FY 200112002: Rural Homeless Housing The City will not apply for Rural Homeless Housing Funds because there are no rural areas within the City. CPS Table Support of Applications Table on the following page indicates that the City will generally support applications made by other entities for federal grant funds with the exception of Rural Homeless Housing. c. Circumstances under which the City would not certity that applications of other entities are consistent with the Consolidated Plan. During fiscal year 200 1-2002, the City shall support the efforts of all county agencies and all non-profit and other entities in their applications for funding to all available funding sources. However, the City will not support these agencies' applications for funds if such applications are not consistent with the City's Consolidated Plan. The circumstances under which the City will not support such applications are: 1. If there is not a demonstrated ability to carry out the activitylproject in a timely manner. 2. Nature of activity, size of proposed project, and lack of implementation plan to successfully complete and maintain the project. d. Plan for Leveraging Private and Non-Federal Funds by Use of Federal Funds. Local funds will be leveraged to the greatest extent possible by using it as "seed money" or local match for programs funded by state or federal government and/or private agencies. Financial assistance will be provided as grants or loans, and may include equity participation. 3 e. Matching Fund Requirements. The City has made local funding provisions for the two federal programs that require matching funds: the HOME and Emergency Shelter Grants (ESG) Programs. For the HOME program, the City has designated funds from its redevelopment low-moderate income housing fund in an amount sufficient to cover the required match. For the ESG Program, in-kind resources provided by the non-profit providers will be used commensurate to the ESG Grant. Other eligible publiclprivate sources will be pursued when possible. . City orSan Bernardino - Consolidated Plan - FY 2001-2002 u.s. Department of Housing and Urban Development CPD Consolidated Plan Support of Applications by Other Entities Report 2. Funding Source Support Application by Other Entities? A. FormulalEntitlement Programs ESG y Public Housing Comprehensive Grant y B. Competitive Programs HOPE 1 y HOPE 2 y HOPE 3 y ESG y Supportive Housing y HOPWA y Safe Havens y Rural Homeless Housing N Sec. 202 Elderly y Sec. 811 Handicapped y Moderate Rehab SRO y Rental Vouchers y Rental Certificates y Public Housing Development y Public Housing MROP y Public Housing ClAP y L1HTC y 5 City orSan Bernardino - Consolidated Plan - FY 2001-2002 3. Priority Investment Plan The following summarizes how the City of San Bernardino expects to allocate federal and other resources to be received in fiscal year 2001-2002. I Priority #1: Preservation and Rehabilitation of Existin2 Sin21e Family Units. Under this priority, the City seeks to actively maintain, improve and develop quality neighborhoods and housing opportunities throughout the entire City. The program activities are described in detail in the Five-Year Consolidated Plan. The following table provides the funding source, planned funding and households to be assisted through each program. TABLE 1 CITY OF SAN BERNARDINO Prioritv #1: Preservation and Rehabilitation of Enstin!! Sin!!le Familv Units Activity Funding Planned Households to Undertaken Source Fundin!! be Assisted Housing Rehabilitation Program HOME and $350,000 150 Units - Single Family units and mobile RDA Housing Funds $1.2 Million homes Utility Assistance Program RDA Housing Funds $80,000 220 Households ARR Program HUDlPrivate Resources $15,000,000 200 Units Source: City of San Bernardino staff estimates. Priority #2: Expand Homeownership Opportunities and Assist Homebuyers with the Purchase of Affordable Permanent Housing (Existing and New Construction) The City will concentrate a portion of its affordable housing funds on providing low to moderate- income households with the opportunity to own their own home. This effort will be approached with the programmatic tools discussed in the Five-Year Consolidated Plan. Planned funding sources, amounts and households to be assisted in the next year are described below. TABLE 2 CITY OF SAN BERNARDINO Priority #2 - Expand Homeownership Opportunities and Assist Homebuyers with the Purchase of Affordable Housin!! Permanent lEnstin!! and New Construction) Activity Funding Planned Households to be Undertaken Source Fundin" Assisted Mortgage Assistance Program Housing RDA & $400,000 200 (Existing/New Construction- MAP, HOME Funds $700,000 Acquisition & Rehab Programs) Homeownership Financial Counseling HOME Funds $80,000 200 Source: City of San Bernardino staff estimates. 6 City of San Bernardino - Consolidated Plan - FY 2001-2002 Priority #3: Provide Rental Assistance and Preserve Existing Affordable Rental Housing Under this priority, the City, with the assistance of the Housing Authority, will assist low- and very low-income households with rental payments to alleviate rent burden, overcrowding and unsafe or unsanitary living conditions. In addition, the City plans to facilitate the development of new senior rental housing projects. According to the San Bernardino County Department of Public Social Services, over one-third of the City's population relied on some form of public aid during the early and mid-1990s. There is statistical evidence supporting a doubling of applicants for public support service assistance during the three-year period 1992-1995. This was due, in part, to the declining availability of affordable housing in Los Angeles and Orange counties, causing some migration of persons to San Bernardino County in pursuit of more affordable housing. In addition, the impacts of the economic recession that plagued the local economy until at least 1995 cannot be downplayed as a factor. As a consequence, the City projects a continued high level of need for housing assistance during the 200 I - 2002 period, even if economic conditions continue to improve. The Five-Year Consolidated Plan outlines the programs to be used to provide rental assistance under this priority. The following table summarizes the funding sources, funding amounts and households to be assisted in the next year. TABLE 3 CITY OF SAN BERNARDINO Priority #3: Provide Rental Assistance and Preserve Existin Affordable Rental Housin!! Activity Funding Planned Households to be Undertaken Source Fundin" Assisted Section 8 Rental Certificate and Voucher Program Section 8 $6,170,829 1,291 Section 8 Moderate Rehabilitation Program Moderate $535,000 27 Rehabilitation Program Rental Assistance Program RDA Housing $120,000 100 Fund Utility Assistance Program RDA Housing $80,000 220 Fund Development of75 Unit Senior Housing on 202 HUD Funds $7,300,000 75 Units Baseline Street Home Funds Sources: City of San Bernardino staff estimates; County of San Bernardino Housing Authority Estimates. 7 City orSon Bernardino - Consolidated Plan - FY 2001-2002 IPriority #4: Assist Homeless and Special Need Persons with Supportive Services Under this priority, the City provides the greatest amount of housing assistance and supportive services to San Bernardino's homeless population, "at-risk" population, and other special needs populations identified by the City. This priority includes the City's strategies for transitional and emergency shelters for the homeless, the prevention ofhomelessness and helping the homeless make a transition to permanent housing. Other services such as child care, senior services, job training, crisis intervention and counseling, medical assistance and after school programs that will be funded and expected to assist City residents. The following table details the funding sources, planned funding and households to be assisted through various social service programs in the fiscal year. TABLE 4 CITY OF SAN BERNARDINO Priority #4: Assist Homeless and Special Need Persons with SUDDortive Services Activity Funding Planned Households to be Undertaken Source FundiRl! Assisted Emergency Shelter Grant Program ESG $152,000 200 (Emergency/Transitional Programs) Rental Assistance Program RDA Housing Fund $120,000 100 Non-Profit Transitional/Emergency Housing Program Contribution $700,000 200 (in-kind) Battered Women's Shelter Programs CDBGlNon-Profits $80,000 100 Childcare Facilities Proorams CDBG/CMO $120,000 150 Source: Cilv of San Bernardino staff estimates. Priority #5: Expansion of Affordable Housing Opportunities through New Construction Under this priority, the City will concentrate on the development and construction of affordable units that are targeted primarily to seniors and large families earning less than one hundred twenty percent (120%) of area median income. The programs to be utilized under this priority are described in the Five-Year Consolidated Plan and the following table indicates the funding sources, planned funding amounts and households to be assisted through these programs. s ~, r City orSon Bernardino - Consolidated Plan - FY 2001-2002 TABLES CITY OF SAN BERNARDINO Priori #5: Ex ansion of Affordable Honsin 0 ortunities throu h New Construction Activity Funding Planned Households to Undertaken Source Fundin be Assisted Century Crowell Development Private Resources and RDA Housing Funds $4,000,000 24 Units Glacier Property Development Private Resources and RDA Housing Funds $15,000,000 11 0 Units in-Fill Housing Program Private Resources and RDA Housin Funds Source: City of San Bernardino staff estimates. $1,500,000 20 Units 4. Non-Housing Community Development Needs As previously noted in the Non-housing Community Development Needs Assessment, the availability of Community Development Block Grant (CDBG) monies and other local resources, will enable the City to allocate funds to specific low-income areas that are prone to neighborhood decline and dilapidation. Through this effort the City reduces the risk of obvious delineation of lower income neighborhoods; thereby promoting pride of homeownership and residency in all geographic areas within the City limits and in turn, encouraging the economic empowerment of its low- and moderate-income residents. Priority #6: Promotion of Economic Development and Employment Opportunities for Low- and Moderate-Income Households One of the City's highest priorities are: I) to attract industries and employers that provide more higher-paying jobs and a wider range of employment opportunities, and 2) to assure that local workers have the necessary skills to fill those jobs. To implement these priorities, the City, in conjunction with other agencies and private organizations, will pursue strategies that promote the growth of production industries whose goods or services are sold to state, national, or global markets to bring outside income into the community. The City will also promote particular industries that are attracted by the comparative natural resource, transportation, cost, labor force, and other advantages that San Bernardino offers. The primary resource to implement these priorities are the City's Economic Development Agency and the Mayor's Business Advisory Council. During the 2001-2002 fiscal year, the City will continue to support job training, education, downtown revitalization, and infrastructure improvement efforts. Federal assistance in the form of Section 108, float loans, economic development initiatives and other efforts will be resources that will be sought or used to assist the City. 9 City orSon Bernard/no - Consolidated Plan - FY 2001-2002 TABLE 6 CITY OF SAN BERNARDINO Priority #6: Promotion of Economic Development and Employment Opportunities for Low- and Moderate-Income Households Activity Funding Planned Businesses To Undertaken Source Funding Be Assisted or Jobs Created Small Business Development Corporation In-Kind; Private $500,000 60 Institution and CDBG Community Investment Corporation In-Kind; Private $300,000 25 Institutions and CDBG National Development Corporation - Grow San In-Kind; Private $2,000,000 4 Bernardino institutions and CDBG Business Incentive & Downtown Revitalization Redevelopment $500,000 16 Program Funds $1.00 Program 303 West 3'" Street Property Rehabilitation/Reuse Section 108 & $1,840,000 60 (Slwn Blight Eradication) EDl; Private Section 108 Investment $344,000 EDl Cineplex Acquisition NW Corner of North "E" & Section 108 $7,000,000 60 4ili Streets Float Loan & Float Loan EDl; Private Investment Source: City of San Bernard/no staff est/mates. Priority #7: Expand and Improve Existing Infrastructure to Meet Current and Future Needs The City's five-year Capital Improvement Program (1999-2004) represents a key community and economic development tool to implement the priorities discussed in the Consolidated Plan. This Program allocates funding for targeted public investments that support revitalization of older neighborhoods and downtown San Bernardino as well as new development that will create employment for local residents. During the 2001-2002 fiscal year, the City intends to spend $1,050,000 million on capital improvements as noted below. 10 City orSon Bernardino - Consolidated Plan - FY 2001-2002 TABLE 7 CITY OF SAN BERNARDINO Prioritv #7: Exoand and Imorove Existin!! Infrastructure to Meet Current and Future Needs Proiect Descrintion Fundin.. Source Fundin!! Amount Various locations Upgrade traffic signals and signal Traffic Systems Fee $150,000 improvements Fund Rialto Ave. and Sierra Install traffic signals Prop. I I 1 Funds $100,000 Way Rialto Ave. and Mercy SI. Install traffic signals Developer's Fees $100,000 ($68,000) & Traffic Systems Fee Fund ($32,000) Auto Plaza Dr. and Rehabilitate pavement from Developer's Fees Camino Real University Pkwy to Little Min. Dr. ($40,000) & Traffic $100,000 Systems Fee Fund ($60,000) Ninth SI. Install pedestrian signals and loops Prop. III Funds $175,000 on side streets from H SI. to Sierra Way Highland Ave. and Install traffic signals and Prop. III Funds $125,000 Central Ave. interconnect to Patton Hospital Sierra Way and 16'" SI. Install traffic signals and 1/2 Cent Sales Tax $100,000 interconnect to Patton Hospital Fund Central Ave. and Install traffic signals Traffic Systems Fee $100,000 Arrowhead Ave. Fund Pacific SI. and Perris Hill Install traffic signals Developer's Fees $100,000 Rd. ($30,000) & Traffic Systems Fee Fund ($70,000) Various Locations 20 Handicapped Access Ramps CDBG $272,000 TOTAL: $1,322,000 Source: City of San Bernardino Capital Improvement Program 2001-02. L 11 City orSon Bernardino - Consolidated Plan - FY 2001-2002 Priority #8: Elimination of Identified Impediments to Fair Housing through Education. Enforcement. and Testinl!' To support the City's efforts to increase housing availability and accessibility for low- and moderate-income households, the City supports a number of programs and services to promote fair housing, including: . Education and training on state and federal fair housing laws. . Mediation and complaint resolution. . Monitoring of compliance by individuals and organizations involved in the sale, financing, renting, advertisement, and management of housing. . Financial assistance and economic development programs to increase incomes for low- and moderate-income households. The City will focus on two strategies to remove impediments to fair housing: I) increase accessibility to homeownership, and 2) ensure that low- and moderate-income renters have adequate access to sound rental housing. Current and past studies of impediments to fair housing and monitoring of compliance have concluded that the primary difficulties faced by low- and moderate-income households relate to their financial circumstances rather than race, ethnicity, gender, or national origin. Most complaints submitted to the Inland Mediation Board involve landlord-tenant disputes, and many of these involve property maintenance issues. There appears to be a disproportionate number of complaints filed by female-headed households with children, which could indicate that some single mothers experience difficulties in obtaining suitable housing for their families. Of thirteen complaints filed with the California Department of Fair Employment and Housing between 1997 and 1999, race and disability were the primary bases cited for the complaints. Eviction was the most-cited act for which a complaint was filed, followed by refusal to rent and offering of unequal terms. In light ofthese findings, the City will continue to implement programs and support efforts by other agencies to improve economic opportunities for low- and moderate-income households, increase housing availability (particularly homeownership), assist other agencies in providing child care and supportive services for families with children, and ensure that single parents are not unreasonably restricted in their housing choices. TABLE 8 CITY OF SAN BERNARDINO Priorltv #8: Elimination of Imnediments to Fair Housin" Throu"h Educatiou. Enforcement. and Testin~ Activity Funding Planned Households to Undertaken Source Fundin.. be Assisted Fair Housing/LandlordlTenant Program In-Kind/CDBG $80,000 120 Education, Training, Public Announcement In-Kind/CDBG $80,000 5 Testing Cases In-Kind/CDBG $80,000 I Enforcement - Advertisement In-Kind/CDBG $80,000 5 Source: City olSan Bernardino staff estimates. 12 City of San Bernardino - Consolidated Plan - FY 2001-2002 The impediments identified in the City's Analysis are: · Lack of knowledge and awareness of Fair Housing Laws makes it impossible for residents to recognize discriminatory practices by housing providers and lenders. · Recommended Action: Increase the level of education through various means such as newsletters, workshops, paid public announcements on the radio, community billboards, and personal interviews on local cable television. · Discriminatory lending and insuring practices based upon color, race, nationality, and other arbitrary characteristics such as families with children and persons with disabilities . Recommended Action: Conduct intensive lenders and insurer's training with emphasis on fair lending practices. . Lack of affordable large units to accommodate large families. · Recommended Action: Encourage the development of 3+ unit apartments and single-family units. 5. Geo/(raphic Distribution The Economic Development Agency, Administrator of the federal programs and other redevelopment and housing programs, will concentrate most of its rehabilitation and preservation programs and activities within the City's seven identified focus neighborhoods, and redevelopment areas, and will also administer a City-Wide Single-Family and Mobile Home Maintenance Grant Program for low- and moderate-income owners. 6. Service Delivery and Mana/(ement The Economic Development Agency (EDA) has the lead responsibility for the development and implementation of the City's comprehensive housing affordability strategy. The current five-year strategy incorporates all anticipated funding sources: federal, state, tax increment and other local funding, and private developer financing. These funds create single and multiple family housing, as well as senior housing and other identified special needs construction. The types of housing which will receive the greatest level of City advocacy will be housing for the elderly, handicapped, special needs populations and low- and moderate-income families. The EDA will focus on all of these new construction, rehabilitation and special needs housing issues in fiscal year 2001-2002. Numerous projects require the need to involve private developers, as, well as non-profit developers, in order to enhance affordable housing in the City. The EDA is able to establish and implement agreements with developers and provide gap financing, construction financing, and second deeds of trust for first time homebuyer programs. This is coupled with the implementation of rehabilitation 13 City o(San Bernardino - Consolidated Plan - FY 2001-2002 programs, grants for mobile home parks, infill housing, senior housing, and new construction that provide affordable housing in the City. B. OTHER ACTIONS 1. Public Policies To ameliorate the negative effects of public policies, the City of San Bernardino will take the following actions in FY 2001. a. Zoning - Unit allowances (square footage). To ameliorate public policies, the City Planning Department staff made procedurallpolicy changes to allow infill units to reduce minimum square footage requirements from 1300 square feet to 1100 square feet. This will allow for more affordable units to be built. b. Seismic Retrofit Ordinance. The City has also established a seismic retrofit ordinance. As it relates to mobile homes, the EDA's Mobile Home Handyworker Program will assist low- income owners to make necessary repairs to their mobile homes. This will ensure these affordable units remain safe, viable units in the City's overall housing stock. c. The EDA has increased dialogue and project coordination with the various City Departments involved in implementing the City's housing goals and that will continue to provide input on regulations, codes, and ordinances that could potentially have adverse affect on the development of affordable housing. 2. Institutional Structure The EDA and City will continue to aggressively attract housing development, and through extensive surveys and market analysis, will ensure that all development will be completed in harmony with the State Housing Element and Consolidated Plan goals. During FY 2001-2002, specific actions will be taken to achieve cooperation and coordination among state, local, and private agencies or institutions in implementing activities. The City and EDA coordinate the execution of a regional homeless assistance plan with a countywide Homeless Coalition and a Local Coordinating Group. Participation in these groups includes non-profit service providers, County Board of Supervisors, County Department of Public Social Services, County Department of Mental Health, County Department of Public Health, Realtors, the AFL-CIO, Veterans, the Building Industry Association, Habitat for Humanity, local colleges and job training groups. The participation of the City and EDA in this cooperative effort enables and facilitates delivery of homeless services and resources through effective networking. In addition, any development of homeless services outside the city limits serves to lessen the City's homeless problems. 14 City orSan Bernardino - Consolidated Plan - FY 2001-2002 3. Public Housing Improvements The Housing Authority of the County of San Bernardino owns and manages about 800 units of public housing within the City limits, and nearly 2,000 countywide, for occupancy by very low- income families who pay no more than 30 percent of their monthly income for rent. The Authority's public housing program includes a mixture of single family housing, multifamily housing, and special needs housing (such as for seniors and individuals with disabilities) funded under several state and federal housing programs. There are currently nearly 2,200 households on the waiting list for the Public Housing Program. Because the waiting list is currently closed, the number of households eligible for, and desiring assistance is undoubtedly much larger than 2,200. Approximately 18 participants drop out of the program each month, or 220 each year. The turnover rate is extremely low; therefore, and it would take ten years to clear the current backlog of applicants waiting for assistance. The City will continue to work in concert with the Housing Authority to achieve its goals. 4. Public Housing Resident Initiatives The Housing Authority of the County of San Bernardino has an organized Resident Advisory Group for each public housing site, which have become private non-profit organizations. These groups received funding from HUD to support their incorporation efforts and ongoing involvement in management. Resident Advisory Groups have become active in the administration of the on-site community centers, locating and scheduling programs. These groups have continued developing their managerial capacities so that they can become more active in other aspects of the management of their housing. The City, in cooperation with the Authority, has included in its resource statement that it will support the Authority's efforts in applying and receiving HOPE I and 2 funds for planning and administration. This will include resident training in skilled labor, property management, financial management and the creation of resident non-profit organizations. When these supportive programs are in place, residents will undertake structured curriculums on training in home care and maintenance, personal financial planning and debt management and receive certificates for successful completion of classes. After graduation, tenants will be assisted with job placement. 5. Lead Based Paint Hazard Reduction The Lead Based Paint Hazard Reduction Strategy is detailed in the Five-Year Consolidated Plan. It is summarized as follows: (I) Coordinating public and private efforts to reduce lead-based paint hazards and protect young children; (2) Integrating lead hazard evaluation and reduction activities into existing housing programs; (3) Public awareness through educational materials and programs; and (4) Education and advocacy and (5) lead base eradication to the extent finances are available. The City of San Bernardino will begin to implement this strategy in Fiscal Year 2001-2002. 15 City orSon Bernardino - Consolidated Plan - FY 2001-2002 C. ANTI-POVERTY STRATEGY The City has set forth a comprehensive Anti-Poverty Strategy in the Five-Year consolidated Plan which it plans to implement over the five (5) year period. D, COORDINATING SERVICES The City of San Bernardino will continue to meet with public and other housing providers and private and governmental health, mental health, and service agencies to use all available resources to their maximum levels of effectiveness to provide for needy San Bernardino residents. Meetings between these parties will occur regularly throughout the fiscal year to endorse applications for funding and to discuss cooperative ventures as they present themselves. E. PROGRAM/PROJECT MONITORING The City will undertake annual reviews of all agencies it provides financial assistance to in conformance with 24 CFR 91.230. Its findings will be provided as part of the CAPER Report due to HUD annually. The report will describe the current status and success of planned activities as described in the Plan and other information which describes progress and successes of activities. The Five year Consolidated Plan priorities will be evaluated through comparison of goals, set out for the fiscal year compared with productivity characteristics and completion data for each program or activity set for accomplishments of those goals. The numbers with the objective presented in the Report will state each program and priority's overall effectiveness. F. PROGRAMS REQUIREMENTS "CPD Consolidated Plan System Listing of Proposed Projects" identifies the City's Priority Description and One-Year CDBG Funds Investment Plan for non-housing community development activities for the City of San Bernardino. Proposed non-housing activities include public facility improvements such as the rehabilitation of public service facilities including but not limited to senior centers and emergency shelterlhomeless facilities, park/playground improvements, installation of lighting within low- and moderate-income neighborhoods, as well as the funding of a multitude of public services/agencies. A majority of the public service agencies funded provide counseling, food, job training, child care and serve the City' seniors, children/adolescents and households in general. i. Specific CDBG Grant Program Submission Requirements A. CDBG - other resources that may become available in addition to annual grant: None I. Program income expected to be generated during the Program Year: None. a. The amount expected to be generated by and deposited to revolving loan funds: None. 16 City of San Bernardino - Consolidated Plan - FY 2001 -2002 b. The total amount expected to be received from each new float-funded activity that is included in the Plan: $1,000,000 (Chaparral Loan) c. The amount expected to be received during the current program year from float-funded activities described in a prior statement or plan: None. 2. Program income received in the preceding program year that has not been included in a statement or plan: NI A a. Proceeds from Section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the strategic plan: $1,800,000 b. Surplus funds from any urban renewal settlement for community development and housing activities: None c. Any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan: None Float-funded Activities - The City anticipates applying for a CDBG float funded activity in the amount of $7 million during this Plan year for the Downtown Cineplex. Urgent Needs - NIA ii. Specific HOME Submission Requirements: Resale Provisions - The City's resale or recapture provision ensures the affordability of units acquired with HOME funds in compliance with 24 CFR 92.254(a)(4). Specifically, homebuyers agree that for a ten (10) year period commencing on the date of recordation of the Agency Deed of Trust and the Affordable Housing Covenant to notifY the Agency not less than thirty (30) days prior to: (i) the sale of the New Home, (ii) the transfer of any interest in the New Home, or (iii) any refinancing of the lien of the First Mortgage Lender to which the lien of the Agency Deed of Trust is subordinate. After ten (10) years, and provided that no default may then exist, the outstanding principal balance and accrued and unpaid interest of the Loan shall be forgiven as provided in the Promissory Note. HOME Tenant Based Rental Assistance - NIA Other Forms ofInvestment - NIA Affirmative Marketing - The City will use combine efforts of CHDO, Realtors, newspaper advertisement and flyers to affirmatively market homes to all residents and prospective buyers regardless of race, color, gender, marital status, religion and disability. Minority/Women's Business Outreach - The City's outreach effort is fully described in the M1WBE Plan which includes actions that will be taken to establish and oversee the inclusion, to the maximum extent possible, of minority and women, and entities owned by minorities and women, 17 City orSon Bernardino - Consolidated Plan - FY 2001-2002 including without limitation, real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers of legal services, in all contracts, entered into by the City with such persons or entities, public and private, in order to facilitate the activities to provide affordable housing under the HOME Program in compliance with 24 CFR 92.351.(b). Refinancing - NIA iii. Specific ESG Submission Requirements The City solicited, received, reviewed and evaluated all proposals and made funding recommendations based on experience, ability to provide service and the number of households expected to benefit from the program. Match grant funds were also identified in each recipients application. 18 ATTACHMENT I 1. Community Development Block Grant A. Program Administration (EDA) Subtotal $650,000 Recommendations B. Public Service Programsl Activity Name-CDCAC Recommendations I. Adopt-A-Bike/Computer 2. AI-Shifa 3. ASA Learning Center 4. a. Asian-American Resource Center - Working for a Better Tomorrow b. Asian-American Resource Center - ESL Program 5. Assistance League of San Bernardino 6. a. Boys & Girls Club - Job Ready b. Boys & Girls Club - Utility Assistance 7. Camp Fire Boys & Girls 8. Central City Lutheran Mission 9. Children's Fund 10. Elder Citizen Protection Services II. Family Service Agency 12. Frazee Community Center 13. Highland Senior 14. a. Home of Neighborly Services - After School & Homework b. Home of Neighborly Services - Food and Nutrition Education 15. Inland Caregiver Resource Center 16. Legal Aid Society 17. Liberia Del Pueblo 18. Mary's Mercy Center 19. Neighborhood Housing Services (Youthbuild) 20. Option House 21. Planned Parenthood of Orange 22. Salvation Army 23. San Bernardino Child Advocacy Program 24. San Bernardino Communities Against Drugs 25. San Bernardino Sexual Assault Services 26. Victory Outreach Church 27. YWCA CDCAC $15,440 $15,440 $15,440 $7,720 $7,720 $15,440 $7,720 $7,720 $15,440 $15,440 $15,440 $15,440 $15,440 $15,440 $15,440 $7,720 $7,720 $15,440 $15,440 $15,440 $15,440 $15,440 $15,440 $15,440 $15,440 $15,440 $15,440 $15,440 $15,440 $0 $400,000 SUB-TOTAL C. General Proposed Projects - CitylEDA Recommendations I. Tippecanoe Disposition and Development Agreement (Demolition) - EDA Administered 2. City Fire Equipment Leases and Purchase of Ancillary Equipment 3. Code Compliance - Operations - Blight Eradication 4. Code Compliance - Demolition - Blight Eradication 5. Los Padrinos-Graffiti Abatement - Blight Eradication SUB-TOTAL D. 2000/2001 CDBG REALLOCATION OF UNPROGRAMMED FUNDS I. National Development Council (NDC) - EDA Administered 2. Small Business Development Corporation (SBDC) - EDA Administered 3. Fair Housing (HUD Mandated) - EDA Administered SUB-TOTAL TOTAL I Staff $14,846.15 $14,846.15 $14,846.15 $7,423.08 $7,423.08 $14,846.15 $7,423.08 $7,423.08 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $7,423.08 $7,423.08 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $14,000.00 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $14,846.15 $400,000 $750,000 $497,650 $1,500,000 $1l6,350 $100,000 $2,964,000 $50,000 $20,000 $40,000 $110,000 $4,124,000 ATTACHMENT I 2. HOME INVESTMENT PARTNERSHIP ACT GRANT RECOMMENDATIONS (HOME) Activitv Program Administration (10%) Community Housing Development Organizations Housing Projects (CHDO's) (15%) Community Housing Development Organization (CHDO's) - Housing Operations (5%) Other Housing Projects - (i.e., Homebuyers, Home Improvement, Relocation, etc.) 3. EMERGENCY SHELTER GRANT (ESG) RECOMMENDATIONS Activitv Mary's Mercy Center Option House Inc. Frazee Community Center Salvation Army 4. TOTAL FUNDS FOR ALL THREE (3) FEDERAL PROGRAMS 2 TOTAL TOTAL Amount $197,100 $295,650 $98,550 $1.379.700 $1,971,000 Amount $22,494 $33,542 $21,773 $74.191 $152,000 $6,247,000 '. o....;~:11~;..O~ ; T 1I1'IlIIW T ~ b 1111 ; "o?" o"r '" ll~ ~f.~ U.S. Department of Housing and Urban Development Los Angeles Area Office, PacificlHawaii 611 West Sixth Slreet Los Angeles, California 90017 Honorable Judith Valles Mayor City of San Bernardino A TTN: Gary Van Osdel 3QO North D Street, 6'h Floor San Bernardino, CA 92418 FES 0 Z' zeOl SUBJECT: 1999 Program Year Review Letter HUD Consolidated Plan Programs . .,., c::> 0 ~ 0 'Z el' ...,., 0 ~ ..." ~ ,. 0:; r - , ':O- n <:-' (") ~ c> , rn -' ..J: ,T\ "" -;;.~, -<. ,.- .,., - ., <. ~. 0 -U -< rn -n ::3 ,.- ~. 0 co :z N '; 0 rr ~ '2 ~ - Dear Mayor Valles: This letter highlights significant achievements madc by the City of San Bernardino utilizing HUD Consolidated Plan program funds, more spccifically. funds from the Community Development Block Grant (CDBG), the HOME Investmcnt Partnerships (HOME), and the Emcrgency Shelter Grant (ESG) programs. The attached assessment is based on the City's 1999 Consolidated Annual Pcrformance and Evaluation Report (CAPER). rcports from the Integrated Disbursement and Information System (IDlS), and our review of your five year Consolidated Plan. Thc asscssmcnt also calls attcntion to those areas in which thc City should conccntratc its cfforts to improvc pcrformancc. If you have any commcnts. please provide your writtcn comments within 30 calendar days from the date of this lettcr. We will take your comments under careful consideration. If you have no comments. we will proceed to make the Program Year assessment letter available to the public. We also encourage each grantee to share this document with its public. In addition. a copy of the final letter should be provided to the City's independent public accountant andlor external audit team in advance of the annual single audit as required by OMB Circular A-133. Ovcrall Asscssmcnt: Based upon our review of the City's CAPER. we have determined that the City is an overall good performer with a Best Practice rating in the area of Decent Housing. Best Practices exemplify HUD's strategy for working with the communities. The strategy is aimed at improving the "state of the art" of community development across the nation. In addition. Best Practice programs andlor projects display high quality. productivity and efficiency. - L-. .J During the 1999 Program Year, the fifth and final year covered by the five-year Consolidated Plan, City received three Consolidated Plan formula grants, CDBG in the amount of$3,884,000; HOME in the amount of$1,773,000; and ESG in the amount of - $138,000. The City focused on providing affordable, decent housing to its residents, economic development, Continuum of Care, code enforcement, public services and public facility activities. The City has the continuing capacity to administer HUD Community Planning and Development (CPD) programs. Improvement is needed in the area of IDIS and reporting area. The IDlS C04PR03 Summary of Activities - Grantee Performance Report did not provide aaomplishment data for each activity. Future CAPER submissions should include updated IDIS entries including the accomplishment/progress for every activity. Should you have any questions, please contact Cheryl L. Hamilton, Community Planning and Development Representative, at (2] 3) 894-8000, extension 3313. ~erely, '- ~~G6'tZ- Robert G. Ilumin Deputy Director Office of Community Planning and Development Los Angeles Area Office - Enclosure cc: Maggie Pacheco ~ 9DDM3 HamiltonlChoi 2 .--' '-, ~. DETAILED ASSESSMENT OF PERFORMANCE We have organized our conclusions about the City's performance in the following categories: Consolidated Plan, Continuum of Care, Decent Housing, Suitable Living Environment, Economic Opportunity, Program Requirements, !DIS and Reporting, Other HUD Programs, and Single Audit Issues. Consolidated Plan The City of San Bernardino's vision, as described in its 1995 Consolidated Plan, is to provide a wide and balanced range of goods and services to its citizens and . communities, such as adequate infrastructure. public facilities and affordable housing a~ well as employment for its low and moderate income citizens. C;>""T1 )0- rn z. c:;: During the 1999 Program Year, the fifth and final year covered by the five-gar ~ Consolidated Plan, the City received three Consolidated Plan formula grants, CIIB6'in the amount of$3,884,000; HOME in the amount of$I,773,000; and ESG in thc~rn'i1unt~ of $138,000. The City focused primarily on affordable housing. economic devel~mcntT'0 Continuum of Care, code enforcement. public service and public facility activitiGS:> ....... ....... The City's CAPER rcports activities and accomplishments that relate back to strategies in its Consolidated Plan. The CAPER also indicates how it addressed the priority needs and objectives of the City's Plan. Where quantificd. Consolidated Plan goals appears to have been met especially in the areas of providing decent and affordable housing and in assisting thc homeless. The CAPER included tables which identified sourccs of funding and amounts. Federal and non-Federal; and, five-year and annual goals and accomplishments. Continnum of Care (CofC) The City of San Bernardino is a Good Performer in providing assistance to the homeless. Thc City operates under the Continuum of Care of the County of San Bernardino and coordinates its homeless assistance efforts with the County's Community Services Department which oversees the County's Continuum of Care. The City utilizes Emergency Shelter Grant (ESG) monies to fund four non-profit agencies that provide homeless assistance. emergency shelter. transitional housing and homeless prevention services to San Bernardino homeless and at-risk populations. Services. such as the Rent/Deposit Guarantee Program and the Mobile Home Rent Subsidy Program. have dual functions as rental assistance and homeless prevention programs. There are 178 shelter beds that serve an estimated 295 persons monthly (approximately 3.540 unduplicated persons annually). These programs address the needs of those persons living on the streets and others who are homeless but are ready to make "" "., c :::> .,..::t> - rn ~... c; ...~ C)o~ ~~ rn <: .-- < rn ~ Pl 0 IV:: 0..(' --, 3:: en - -' r t..r-, j the transition to permanent housing and independent living. The four agencies funded by the ESG Program provide support services, such as food provision, employment transportation and medical assistance which help the homeless to return to the mainstream of American life. During the 1999 Program Year, the Ci1y assisted 3,500 homeless with emergency shelter and support services. 20 units of transitional housing were provided last year. No numbers were reported for permanent housing, but the City assisted 3,674 low income households with rental subsidies. In addition, the City expended $10,000 in CDBG funds for five computers and support staff to assist 1449 individuals in the Salvation Army Homeless Children's Education program. Decent Housing The City of San Bernardino continued its Best Practice performance in providing decent and affordable housing for the fourth straight year. The City assisted a total of 4.665 eligible households through 18 various housing assistance programs funded by CDBG, HOME and local redevelopment (RDA) program sources. Also, HUD Section 8 Vouchers and Public Housing funds were provided through the Housing Authority ofthc County of San Bernardino. Accomplishments with HUD Section 8 funding are discusscd under the Other HUD Programs section of this letter. CDBG, HOME and local Redevelopment Agency (RDA) funds provided assistance to 1,067 eligible homeowners through six various rehabilitation programs. CDBG funds of $772,598 and HOME funds of $1,773,000 leveraged an additional $3.862.893 in local Redevelopmcnt Agency funds for affordable housing. HOME and RDA funds provided homcownership assistance to 735 eligible homcbuycrs through two homeowncrship assistance programs. Private funds provided 439 new affordable housing units. RDA funds provided rental assistance to 787 units. The City of San Bernardino's activities and strategies are making an impact on identified needs. The housing rehabilitation programs are helping to improve the City's residential units. 1n particular, the Economic Developmcnt Agency's (EDA) Acquisition. Rchabilitation. Rcsale (ARR) Program is helping to arrest the cyele of blight and fix problem properties to a high standard. The EDA has partnered with approved contractorldevelopment companies to purchase properties for rehabilitation. No public funds are used for the acquisition and rehabilitation of these properties. However. the _ EDA does provide a loan guarantee for the contractor's private financing of the acquisition and rehabilitation. This loan guarantee provides the needed security for private lending institutions to loan on very dilapidated houses in tough selling markets and also enables contractors to obtain better loan terms. The resulting monthly mortgage payments are "affordable" in that they are just above the current rent payments. The EDA also provides down payment and closing cost assistance to first time homebuyers making it possible to sell the rehabilitated units in the City's revitalization area. ~ 5 Finally, the EDA coordinates comprehensive homebuyer seminars, teaching the process of homeowners hip, personal finances (savings, debt, investment), code enforcement and security, and neighborhood safety in support of the ARR Program. Additionally, the City's ARR Program produces significant benefits to the new home buyer. Because the houses are fully rehabilitated and are made energy efficient (40% savings in utility bills), the new homeowners have a lower property maintenance requirement in time and cost. The monthly payments are just above the current rent payment and renters will become owners and will pave the opportunity to create stability in the neighborhood. The rehabilitated home provides a quality and stability of the ne-ighborhood, and provides homeownership opportunities to low-income families. In the future, the ARR Program will continue to playa significant role in the provision of affordable housing in the City of San Bernardino by continuing to buy HUD REO properties through agreements with HUD and participation in the new HUD Neighborhood Initiative Program administered by the County of San Bernardino. The annual goal in rental housing. homeownership and rehabilitation have been cxceeded by a wide margin providing assistance to a total of 5.476 units (not including HUD Section 8 assistance) for this program year. In addition, the five-year goal of 11.490 units was exceeded with a total of 13,390 units for the five-year period. Based on the above accomplishments, the City of San Bernardino continues its Best Practicc performance in providing dccent and affordable housing. Suitable Living Environment During the 1999 program year. the City is a Acceptable Performcr in providing a suitable living environment as evidenced by the City's expending of $1,941.1 07 in CDBG funds on 70 various public facility improvement and public service projects to improve the quality of life of its residents. Economic Development In the area of economic opportunity. the City of San Bernardino's performance _ has been found to be Acccptable. The five-year Consolidated Plan indicates that the City of San Bernardino suffers from a combination of several factors which weaken its economic base. These include (I) retirees with lower incomes than other more affluent communities. (2) aid recipients who more than likely will see fallen incomes given today's political climate, (3) the significant impact resulting from the closure of Norton Air Force Base (l 0,000 jobs lost) and (4) the impact of the commuter population on the City's gro\\1h and expansion. 6 .' ,~ The City recognizes the need to prioritize issues, giving first consideration and priority to economic strategies which encourage the diversity, prosperity and expansion of those basic activities with growth potential. Consequently, the City is turning its focus toward programs which encourage workers to live and spend their resources within the community. Housing and economic development programs such as Employment Linkage, Joint Partnership Training Act (JPT A) programs, other employment programs and most of the City's housing programs have assisted in filling this need. During the 1999 Program Year, the City allocated $204,058 in CDBG funds to four job training activities. The Office of Business Development has worked aggressively to encourage business retention and expansion. The City has formed a partnership with local educational institutions to promote economic development primarily through vocational training programs. During the 1999 Program Year. about $18 million in CDBG, Section 108 Loan funds, and Economic Development Initiative (EDI) funds were made a available to assist local economic developmcnt projects which created or retained 295 jobs. However, no quantifiable goals in relation to jobs created or rctained werc identified in the City's Consolidatedl Annual Plans. Quantifiable goals and actual accomplishments are required in future PlanlCAPER submissions. Program Requirements In the area of Program Requirements. the City's pcrformance has been found to hc Good Performer. All activities ofCDBG. I-IOME and ESG programs appear eligible. The City expended 89.2% of its CDBG funds (not including planning and administration expenses) on activities that benefited low and moderate income pcrsons cxcceding the 70% threshold based on a on-year certification. CDBG public scrviccs cap of ] 5'Yo was met as actual committed funds amounted to 11.14% of the 1999 grant plus prior ycar (1998) program income. CDBG planning and administrative cap of 20% was met as actual committed funds amounted to ] 6.58% of the 1999 grant plus currcnt year (J 999) program Income. A total of$19.571 in CDBG Program Income was reported as rcceived during Program Year 1999 in the Financial Summary report. Other sources of Program Income indicated on page 10 of the CAPER total $130,371. - The City was last monitored in Fiscal Year 1999. Two findings were made. one on timeliness ofCDBG expenditures and one on procurement involving CDBG program funds. The finding on timeliness was cleared. and the City met its 1999 Program Year timeliness threshold. Our records indicate that as of April 30. :WOO (60 days prior to end of the program year, the City's timeliness ratio was at ] .07 which more than met the threshold of 1.50 or less required at 24 CFR 57.902(a). The finding on procurement finding involved a new Request for Proposal (RFP) for legal services was contested by the City. but the Field Office corrective action requested was concurred in by HUD 4 6 procurement and fiscal staff. The City was advised on May 4, 2000 to submit its new legal services contract following the RFP process in compliance with either 24 CFR 85.36 or CPD Notice 96-05. Subsequently, the City solicited proposals to provide legal services, and executed a five-year legal services contract on November 8, 2000. The CAPER contained evidence of required HOME and ESG matching funds. No displacement was reported. The City's Anti-Poverty Strategy is discussed on pages 6. 7 and 8 of the CAPER in_its strategies for increasing economic development. Basically the City's mechanisms for addressing priority anti-poverty needs are employment programs and housing assistance programs, such as Employment Linkage and Joint Partnership Training Act (JPT A) programs. The City has not yet adopted a Neighborhood Revitalization Strategy, but may do so in connection with its part of the new HUD Neighborhood Initiative Demonstration Program, involving a total of $15, 000,000 to be administered by the County of San Bernardino. The program will involve extensive affordable housing and welfare to work efforts in targeted areas in the cities of San Bernardino, Highland and Redlands. IDIS and Reporting Improvement is needed in the ID1S and reporting area. Reports are generally submitted in a timely manner and are accurate requiring only minor changes or corrections. However, the IDlS C04PR03 Summary of Activitics - Grantee Performance Report did not provide accomplishmcnt data for each activity. Although, some accomplishment data was provided some were not nor a status of the activity was provided. Future CAPER submissions should include updated IDIS entries including the accomplishment data for every activity. Other HUD Programs The Housing Authority of the County of San Bernardino provided HUD Section-8 Vouchers for 2.089 units and Public Ho,using managementloperating funds for 798 units. HUD Section 8 assistance through the Housing Authority of the C,9unty of San Bernardino amounted to $17.416.392. The City used $36.220 in CDBG funds for Inland Fair Housing Mediation Board (IFHMB) to provide services to affirn1atively further fair housing and to mitigate impediments to fair housing in San Bernardino. The impediments to fair housing. identified in the Analysis of Impediments to Fair Housing Choice. reflected discrimination and housing issues. The overall conclusion was that today' s discrimination acts have become deceptive and sophisticated. t; 5 Discrimination issues included the following: lack of understanding of fair housing laws regarding differential treatment; occupancy limitation; lack of tenant screening policy; high minority neighborhood and concentration causes low property value; buyer refusal; lenders Home Mortgage Disclosure Act (HMDA) data tracking; and tracking lender's housing loans. The housing issues included: affordable housing - joblhousing relationship; neighborhood safety; neighborhood deterioration; transportation; and quality schools. Fair housing services provided consisted of educational assistance, outreach and enforcement in the sale and rental of property to City residents, particularly those persons covered by the Federally protected classes under Title VIII of the Civil Rights Act of 1968. Education was provided to the public, property owners, mobile home park ownerslresidents, Realtors, municipal staff, lenders and staff of classified newspaper advertising departments. A review of newspapers for discriminatory practices in ads was also performed. Outreach was conducted through the mass media of radio, television. newspapers, public appearances and brochure distribution. Enforcement included counseling individuals. accepting complaints, implementing and maintaining a daily "hot line" service and a 24- hour call back "warm line" and testing for discrimination on the bona fide complaints. The City's 1999 Program Year fair housing activities and actions taken to address the impediments identified in its fair housing analysis (AI) are being revicwed by the Civil Rights Division. The results of the review will be addressed under separate covcr. Single Audit Issues In addition to typical areas reviewed during the annual single audit. wc would highlight the following program areas for audit consideration: Subrecipient Activity/Commercial Contracts - Examine the recipient's for monitoring subrecipients and commercial contracts; Identify eligible activities funded with CDBG funds; test expenditure and related records; for selected activities, review documentation showing how national objectives are met; ~. The CDBG 20 percent Planning and Administration Cap - Ascertain the total amount of grant and program income. Review the financial records to determine the mount expended for planning and administration; Environmental Review - Select a sample of projects on which expenditures have been made and determine whether environmental reviews have been performed in conformance with 24 CFR Part 58.34-35; and ./ 6 [.., 'J Acquisition and Relocation - Select a sample of completed projects involving acquisition ofreal property, particularly existing homeowner and rental property. Determine that property owners and/or tenants were provided with proper notices and compensation under the Uniform Relocation and Real Property Acquisition (URA) Act and Section 104 (d). 7 ~ J