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CITY OF SAN BERN. 1DINOiJrREQUEST F ~ COUNCIL ACTION
From:
Kenneth J. Herrlerson, Director
Subject:
no 1990/1991 PR:lGRAM MIX
Dept: Conununity Developnent
Date: February 13, 1990
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Synopsis of Previous Council action:
Recommended motion:
APPROVE no 1990/1991 CDBG PR:lGRAM MIX RECX:lMMENOED BY THE CX"HIDNITY DEVEIDmENl'
CITIZEN MlVISORY cnooT1'EE (CDC::N::) AND AImDRIZE STAFF '10 SOLICIT PROFOmUB PUR
CDBG FINMlCI1\L ASSI8l'AN::E PUR THE PERIOD BEGINNIm JULY 1, 1990 AND ENDIm JUNE
30, 1991.
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Contact person:
Ken Herrlerson
Phone:
5065
Supporting data attached:
staff Report
Ward:
1-7
FUNDING REQUIREMENTS:
Amount:
N/A
Source: (Acct. No.)
N/A
(Acct. Description)
NjA
Finance:
Council Notes:
75-0262
Agenda Item No. .:5' --~
CITY OF SAN BERN, 1DINO - REQUEST F 1I COUNCIL ACTION
STAFF REPORT
On February 7, 1990, staff corrlucted rlil':r.USSions with the City's HUD
Cormnunity PlanninJ arrl Developnent representative regardirg the
City's FY 1990/1991 CD~ allocation. As a result of a number of
actions at the federal level, includirg the ~ition of Gramm-
Rudman, sequesterin:J of furrls arrl the recapture of UD1I.G furrls, the
best infonnation we have is that the block grant will be reduced by
4.5% fran the current year's grant Cll'l'O.D1t of $1,724,000.
Although HUD officials arrl CD~ entitlenent camrmmities anticipated
a small increase in our grant, the furrls lost durin:J the three (3)
nonths Gramm-Rudman was in effect were not restored when the federal
budget was eventually passed. '!his maans that the maximum the City
can expect to receive, arrl it could be lCl'o'ler, is $1,646,420. '!his
figure will be used by staff, the Carmm.mity Develc:prent citizen
Advisory Canunittee (COCAC) arrl the Mayor arrl Canrocm Council for
planninJ purposes am for establishment of the FY 1990/1991 CD~
Program Mix.
Because the Program Mix categories are used to solicit proposals
from individuals, nonprofit agencies am City departIDents, it is
useful to review the Program Mix currently in effect arrl those
previously approved by the Mayor arrl Canroon Council:
Approved Approved Proposed
catec:rorv FY 1988/89 n 1989/90 FY 1990/91
Public Services $ 248,800 $ 258,600 $ /246,963.J15%)
(Includes Fair - -----_/
Housin:J)
/~Capital Improvenents $ 555,000 $ 631,600 $ 600,173
Rehabilitation loans $ 150,000 $ 150,000 $ 220,000
-Demolition $ -0- $ -0- $ 100,000
Infill Housin:J (Ac:qui- $ -0- $ -0- $ -o-
sition Off-Sites)
Appropriated Reserve $ 273,000 $ 339,000 $ 150,000
Administration $ 331. 000 $ 344.800 $ 329.284
$1.658.000 $1,724.000 $1.646.420
'!he recammerrled allocation for Public Services, which includes Fair
Housin:J activities, is $246,963, fifteen percent (15%) of the grant
arrl the maximum allowed by law. staff is also recammerrling that the
Mayor am Canroon Council, as in the past two (2) years, limit grant
awards in this category to a maximum of $20,000.
2/13/90
75-0264
STAFF REPORl' CXlNl'"i-....ED...
Page -2-
'!he CIX'AC is rec::c:mnerrli. $600,173 for capital inprovement am
infrastructure projects. In addition to the constroction or rehabi-
litation of various projects, other eligible activities urrler this
category include architectural am en:Jineerirg services, historic
preservation (rehabilitation) am the acquisition am disposition of
real property. Historically, City depart::roents have sul:mitted
several applications for financial assistance because of General
Furrl budget constraints am because of the 3.5 million dollars the
Mayor am Camron Council have allocated to this category over the
last four (4) years.
Urrler the rehabilitation loan category, the CDCAC is recamnenling an
increase of $70,000 (from $150,000 to $220,000) because of signifi-
cant demarrl. Additionally, this program assists in the upgradinJ of
declinirg residential neighbornoods ani generates program incx:me
which allows the depart::roent to remain self-sufficient. Given the
age ani corrlition of the city's housirg stock, this program, up
until very recently, has been the only reliable soorce of financirg
for home inprovenalt loans for low to lOOderate incx:me hooseholds.
'!he Appropriated Reserve was established for the rm:pose of defray-
ing cost overruns for capital projects furrled in prior years, ani
also to allow the Mayor am Camron Council some latitude in consi-
derirg mid-year requests for financial assistance. Because \ve
anticipate a significant carry-over from the current year's reserve,
the recamrnerrlation of $150,000 reflects a fifty-six percent (56%)
reduction from the current year's allocation.
Urrler new Grantee Perfonnance Report (GPR) requirements, it is now
IOOre efficient to close out certain activities ani appropriate new
lOOney rather than report to HUD on a continuing basis for activities
sometimes coverirg several fiscal years. '!he [)em:)lition activity is
a good exarrple of the efficiencies realized. Rather than report on
approximately $108,010 in dennlition furrls from previous fiscal
years, this activity was closed out ani the Camnittee is reccmnerrl-
irg a new authorization of $100,000.
Urrler the Administration category, the Camnittee is rec::c:mnerrli.
$329,284, twenty percent (20%) of the grant ani the maxinn.nn allowed
by law. '1hese furrls support 3.5 to 4.0 full-time equivalents
(FrE's), the City's housing consultant contract ($30,000 plus
expenses), one-half of the office rent ani about forty-five percent
(45%) of all office supplies am related expenses.
No furrls are beirg reccmnerrled for infill housirg as it is antici-
pated financirg for this program will caoe from the Redevelopnent
Agency's twenty-percent (20%) set-aside housirg program.
This i tan was placed on the SUcDlemental 1\Qenda of the Mavor and
Ccmoon Council because of delays in receiving reliable infonnation
fran HUD, and because of conflictinCl meeting schedules between the
~ and the Ccmoon Council.
2/13/90
STAFF REPORl' CXlNl'J ID. . .
Page -3-
staff concurs with the Committee ~tions an:i recanrnen::ls
adoption of the form lTOtion.
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Klli/lab/3703
2/13/90