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Home My WebLink AboutR41-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco, Director Housing and Community Development SUBJECT: PUBLIC HEARING - 2001/2002 ANNUAL CONSOLIDATED PLAN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), EMERGENCY SHELTER GRANT (ESG), AND HOME FEDERAL PROGRAMS --------------------------- DATE: April 5,2001 ORI f" / · , I L ~Ij~d Svnonsis of Previous Commission/Council/Committee Action(s): In May 2000, the Mayor and Common Council approved the 2000/2005 Consolidated Plan and application for Federal Grants. The 200 1/2002 Annual Consolidated Plan when submitted and approved by HUD will allow the City to receive CDBG, ESG and HOME funds. On February 22, 2001, the Redevelopment Committee recommended that this item be sent to the Mayor and Common Council for approval. Recommended Motion(s): (Mavor and Common Council) MOTION: RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING AND APPROVING 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 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 EXECUTE AND SUBMIT TO U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT (HUD) ALL REQUIRED DOCUMENTS AND TO TAKE ALL NECESSARY ACTIONS TO IMPLEMENT THE CITY'S 2001/2002 PLAN, INCLUDING EXECUTION OF CDBG AGREEMENTS WITH RESPECTIVE SERVICE PROVIDERS Contact Person( s): Gary Van OsdellMaggie Pacheco Project Area(s) All Phone: 663-1044 1-7 Ward(s): Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LetterlMemo FUNDING REQUIREMENTS Amount: $ 6,122,000 Source: CDBG, HOME, ESG Fiscal Year 01/02 SIGNATURE: Budget Authority: \. --N. Maggie Pacheco, Director Housing and Community Development Commission/Council Notes: ~UIOc<.b) '-I(1kJt>\ I ~ {'Sl Agenda Item !(LJ/- 5/7Jj) GVO:MP:lag:04-16-01 CDBG Recomm COMMISSION] Mee ECONOMIC DEVELOPMENT AGENCY STAFF REPORT --------------------------------------------------------------------------------------------------------------------- 200112002 Community Develonment Block Grant (CDBG). Emerl!encv Shelter Grant (ESG), And Home Federal Prol!rams BACKGROUND The City was informed in early January 2001, that an estimated amount of $4,014,000 in Community Development Block Grant (CDBG) funds, $1,971,000 in HOME Investment Partnership Act (HOME) funds and $137,000 in Emergency Shelter Grant (ESG) funds will be available for fiscal year 2001/2002 for a total of$6,122,000. CURRENT ISSUE 1. Community Develonment Block Grant (2000/2001 & 200112002 Fiscal Year Funds) In October 2000, staff published a Request for Proposals to receive applications for funding for the provision of public service activities. A total of forty-eight (48) applications were received from local non-profit agencies providing services ranging from child care, youth programs, crisis intervention, job training, homeless services, medical and dental services, and services for seniors. For FY200l-2002, a total of $400,000 of the $4,014,000 has been allocated to public services. The maximum amount that can be allocated for public services is fifteen percent (15%) of the $4,014,000 ($602,100). As part of the application funding review process all proposals received were reviewed and forwarded to the Community Development Citizen Advisory Committee (CDCAC) for review, interviews, deliberations and funding recommendations. On February 6, 2001, the CDCAC interviewed all agencies requesting funding. After the interviews were conducted, the CDCAC recommended that each agency (27) receive a maximum grant of $15,440 with the stipulation that an agency that has more than one program, their grant is to be divided equally amongst each of the programs up to the grant amount, and except for Option House which was allocated the amount requested of $14,000. Please refer to Attachment I for the agencies recommended for funding. Although, the CDCAC has completed their funding deliberations, they did not recommend the YWCA for funding for the new fiscal year. The reason for this was because the YWCA representative did not return to the CDCAC meeting to give their program presentation and as such the CDCAC did not allocate enough points to YWCA. It should be noted that the YWCA did arrive for their presentation on time, however, the CDCAC was running behind schedule due to the number of agencies they had to interview and the YWCA Representative had to leave for another appointment. For the past 10 years, the CDCAC and Mayor and Common Council have .------------.------------------------------------------------------------------------------------------------------------------------------ OYO:MP:lag:04-16-01 CDBO Recomm COMMISSION MEETING AGENDA Meeting Date: 04/16/2001 Agenda Item Number: R 37 Economic Development Agency Staff Report 2001-02 CDBG Recommendations April 3, 2001 Page Number -2- --------------------------------------------------------------------------------------------------------------------- allocated CDBG funds to the YWCA. The YWCA has historically provided an invaluable program to the City's youth and has been consistently in compliance with the CDBG requirements. Accordingly, Staff discussed this matter with the Redevelopment Committee and they concurred with staff's recommendation to allocate funds to the YWCA and allocate the grant amount of$14,846.15 instead of$15,440 to each Agency as shown on Attachment I. With regard to the balance of 2001-2002 CDBG funds, $2,964,000 (after deducting Public Services of $400,000 and $650,000 for Program Administration), the Mayor, City Administrator and Agency Staff met to prioritize proposed City and Agency projects and activities. The activities to be funded are principally: code enforcement and demolition, graffiti abatement, pre- committed fire leases and ancillary equipment and demolition activities contemplated with the HUB/IVDNAgency Tippecanoe project (HUB Project). It should be noted the proposed CDBG allocation would mean that several City projects funded in the previous cycle would not be funded this year through CDBG. Specifically, the following chart compares the proposed funding with the FY 00-01 allocations: FY 00-01 FY 01-02 CITY PROJECT ALLOCATION PROPOSED ALLOCATION Code Compliance Ooerations $1,500,000 $1,500,000 Fire Leases $497,650 $497,650 Los Padrinos Graffiti Abatement $120,000 $100,000 Code Compliance Demolitions $600,000 $116,350 (Carrv Over from 99-00) ADA Sidewalk Improvements $250,000 -0- Neighborhood Coordinator - Mavor's Office $58,100 -0- Fire Prevention Code Enforcement $50,300 -0- Police Department Multi-Family Crime Free $45,000 -0- PrOlITam If the 2001-2002 allocation is approved, it is anticipated that additional code compliance demolition funds ($300,000), the neighborhood coordinator ($58,100), the fire prevention officer ($50,300), and the Police Department crime-free program ($45,000) would become General Fund obligations. The total impact to the General Fund, assuming these programs are preserved, will be at least $453,400 in additional costs for FY 01-02. This estimate does not assume any additional funds for increases in salarylbenefit costs; those would also be absorbed by the General Fund. ADA sidewalk improvements would be needed to be funded through available capital improvements funds. Other planned capital improvement projects would be impacted by this change. ---------------------------------------------------------------------------------------------------------------------------------------.--.- GYO:MP:lag:04-16-01 CDBG Recomm COMMISSION MEETING AGENDA Meeting Date: 04/16/2001 Agenda Item Number: BJ1- Economic Development Agency Staff Report 2001-02 CDBG Recommendations April 3, 2001 Page Number -3- --------------------------------------------------------------------------------------------------------------------- Moreover, in order to fund the mandatory fair housing program ($40,000) and to continue the contract with the Small Business Development Corporation ($20,000) and the National Development Council ($50,000), a total of $110,000 will be allocated to these agencies from CDBG 2000-2001 unappropriated funds. 2. Emerl!encv Shelter Grant In October 2000, proposals were solicited and received from local homeless services providers. The following seven (7) proposals were received: (1) Mary's Mercy Center, Inc. ($31,698); (2) Operation Grace ($9,000); (3) Option House, Inc. ($40,080); (4) Salvation Army ($88,000); (5) Frazee Community Center ($25,000); and (6) San Bernardino Police Department ($22,000); and (7) Parks and Recreation ($50,000) totaling $275,778. Staff evaluated each proposal and compared them to the eligible categories and caps, the type of service, such as shelter beds, or essential services, evaluation of past performance, amount of other sources of funds, etc. Eligible homeless activities include, but are not limited to, essential services, shelter operations and rehabilitation, homeless prevention and program administration. All ESG funds must be matched by other sources, such as in-kind, etc. In addition to the $137,000 expected, $15,000 from prior year carry over is also available for a total of $152,000 in ESG funds for 2001-2002. Consequently, the following agencies are recommended: (I) Mary's Mercy Center, Provide food and related services (essential services) ($22,494); (2) Option House, Inc., Provide shelter and related services to victims of domestic violence (shelter operations and homeless prevention) ($33,542); Frazee Community Center, Provide shelter services (shelter operations and homeless prevention) ($21,773); Salvation Army, Provide shelter and related services (shelter operations) ($74,191); for a total of$152,000. Operation Grace and City of San Bernardino Parks & Recreation were not recommended for funding because the request for funding is a duplication of service currently provided by the County Community Services Department. The Redevelopment Committee recommended that all Agencies as proposed by staff be funded with the exception of the San Bernardino Police Department. The San Bernardino Police Department service was viewed as a duplication of service. Therefore, the remaining $15,000 was allocated equally amongst the agencies that exceeded their last year's program goal in the level of services and households assisted. Salvation Army ($74,191) and Mary's Mercy Center ($22,494) as noted in the preceding paragraph. ------------------------------------------------------------------------------------------------------------------------------------------- GVO:MP:lag:04-16-01 CDBG Recomm COMMISSION MEETING AGENDA Meeting Date: 04/16/2001 Agenda Item Number: W- Economic Development Agency Staff Report 2001-02 CDBG Recommendations April 3, 2001 Page Number -2- --------------------------------------------------------------------------------------------------------------------- 3. Home Grant Funds Of the $1,971,000 HOME Funds the funds shall be used as follows: not more than 10% ($197,100) for administration of the HOME Program; not less than 15% ($295,650) shall be allocated to qualified Community Housing Development Organizations (CHDO's) who aid in the provision of affordable housing in the community, and not more than 5% ($98,550) shall be used for CHDO operations and capacity building. The remaining $1,379,700 will be used for the provision or preservation of affordable housing which benefit low-income persons (80% and below median income). The type of the activities that may be funded include, but are not limited to, rehabilitation of single, senior and multi- family housing units, operation costs for qualified CHDO's, down payment, homebuyers assistance, acquisition, housing construction, public improvements, etc. In the past years, the Agency has used HOME funds principally for first time homebuyer down payment assistance, assistance for transitional homeless type projects, needed public improvements at mobile home parks, mobile home improvement grants and senior housing projects. Staff contemplates that these funds will continue to be used for these purposes. These funds will also augment the Redevelopment Agency's annual housing fund of approximately $3 million to accomplish housing projects throughout the City. Any changes to past practices, or additional programs that are planned throughout the program year will be brought before the Commission for approval. 4. 200112002 Annual Consolidated Plan The Annual Consolidated Plan (the "Plan") was updated using the most current data, the 1990 U.S. Census data. The Plan consists of the following mandatory components: (I) Community Profile, (2) Housing and Homeless Need Assessment, (3) Non-Housing Community Development Need Assessment, (4) Housing and Market Analysis, (5) Housing and Non- Housing Strategic Plan and Annual Action Plan. The needs identified in the Plans are similar to those presented in the 1995 Plan. Those needs are: housing cost burden, deterioration of existing housing stock, homeless emergency transitional housing needs, infrastructure and capital improvements, economic development, blight eradication, crime and recreational needs. The strategy and priorities identified to address these needs over the next year include: (1) preservation and rehabilitation of existing single family dwellings, (2) expansion of homeownership opportunities by assisting homebuyers with the purchase of existing affordable housing, (3) provision of rental assistance and preservation existing rental housing, (4) assistance to homeless and special need individuals with supportive services, (5) expansion of affordable housing through new construction, (6) promotion of economic development and employment opportunities for low and moderate income households, (7) improvements and expansion of infrastructure to meet current and future needs, (8) elimination of impediments to fair housing through education, enforcement and testing. These ----------------.--------------------------------------------------------------------------------------------------------------------------- GVO:MP:lag:04-16-01 CDBG Recomrn COMMISSION MEETING AGENDA Meeting Date: 04/16/2001 Agenda Item Nnmber: .1l.31-- Economic Development Agency Staff Report 2001-02 CDBG Recommendations April 3, 2001 Page Number -3- --------------------------------------------------------------------------------------------------------------------- strategies, to the extent as possible, mirror the Mayor and Common Council's goals and priorities identified through the 1998 Citizen's Need Survey. The resources identified to address the above needs include federal grants such as CDBG, HOME, ESG, Housing opportunities for people with AIDS (HOPW A) Redevelopment Tax Increment and housing funds, City's General Funds, Public Housing Authority Funds, non-profit agency resources, for-profit joint ventures and private lending institutions. Detailed discussion of each category is in the attached Consolidated Plan. The Plan also identifies some of the resources that the City expects to have available to implement the above strategies. In compliance with Federal regulations, the general public was afforded the opportunity to review and provide oral or written comments on the Plan. The public notice announcing the availability of the Plan coupled with proposed funding activities was published in the San Bernardino Sun Newspaper on March 6 and AprilS, 2001. No comments have been received to date. Any citizen input received today or Mayor and Common Council changes will be incorporated into the Plan prior to submission to HUD. ENVIRONMENTAL All National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA) actions will be addressed prior to release of funds for any federally funded project noted herein. FISCAL IMPACT Use of the 2000-2001 $110,000 Program Income, and 2001-2002 $4,014,000 in CDBG, $1,966,000 in HOME, and $152,000 in ESG funds from HUD have been allocated to projects and programs noted in Attachment I and as contained in this staff report. SUMMARY According to HUD's February 9, 2001 letter (see attached), the City of San Bernardino, under the administration of the Agency, has made significant achievements and overall the Agency's performance has been rated well, particularly in the area of housing. ----------~-------------------------------------------------------------------------------------------------------------------------------- GYO:MP:lag:04-16-01 CDBG Recomm COMMISSION MEETING AGENDA Meeting Date: 04/16/2001 Agenda Item Number: A.37.- Economic Development Agency Staff Report 2001-02 CDBG Recommendations April 3, 2001 Page Number -4- RECOMMENDATIONS That the Mayor and Common Council adopt the attached Resolution. '--Iu O~ Maggie Pacheco, Director Housing and Community Development ..----------------------------------------------------------------------------------------------------------------------------------------- GVO:MP:lag:04-16-01 CDBG Recomrn COMMISSION MEETING AGENDA Meeting Date: 04/1612001 Agenda Item Number: ~ . A~l[Jf:J RESOLUTION NO. 2 3 4 5 6 RESOLUTION OF TIlE MAYOR AND COMMON COUNCIL AUTHORIZING AND APPROVING TIlE (1) REALLOCATION OF 2000-2001 CDBG FUNDS IN THE AMOUNT OF $IlO,OOO (ATTACHMENT I(D) AND ESG FUNDS IN TIlE AMOUNT OF $15,000; (2) 2001-2002 ANNUAL CONSOLIDATED PLAN ("PLAN") WIDCH INCLUDES FUNDING ACTIVmES FOR CDBG, HOME, ESG, IN TIlE TOTAL AMOUNT OF $6,122,000; (3) MAYOR, OR HER DESIGNEE TO EXECUTE AND SUBMIT TO U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT (HUD) ALL REQUIRED DOCUMENTS AND TO TAKE ALL NECESSARY ACTIONS TO IMPLEMENT TIlE CITY'S 2001-2002 PLAN, INCLUDING EXECUTION OF CDBG 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 1 'J .,-), ~.. -in fat. '(?It l' If.. 1 ~":'-L[.~ I I /) . . ..L' / } K- I-/- 11 LIEN 12 MCGINNIS 13 SCHNETZ 14 . SUAREZ IS ANDERSON 16 MCCAMMACK 17 18 Rachel G. Clark, City Clerk 19 . I . 2 , ~ 4 5 6 7 8 9 10 20 21 22 23 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUfHORIZING AND APPROVING THE (1) REALLOCATION OF 2000-2001 CDBG FUNDS IN THE AMOUNT OF $110,000 (ATTACHMENT 1(D) AND ESG FUNDS IN THE AMOUNT OF $15,000; (2) 2001-2002 ANNUAL CONSOLIDATED PLAN ("PLAN") WlDCH INCLUDES FUNDING ACTlVffiES FOR CDBG, 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 (HUD) ALL REQUIRED DOCUMENTS AND TO TAKE ALL NECESSARY ACTIONS TO IMPLEMENT THE CITY'S 2001-2002 PLAN, INCLUDING EXECUTION OF CDBG AGREEMENTS WITH RESPECTIVE SERVICE PROVIDERS. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meetin thereof, held on the day of AYES ,2001, by the following vote, to wit COUNCIL MEMBERS: ESTRADA NAYS ABSTAIN ABSENT The foregoing Resolution is hereby approved this day of , 2001. JUDITH VALLES, Mayor City of San Bernardino 24 Approved as to form and legal content: 25 JAMES F. PENMAN, 26 City Attorney 27 . (; 28 By: 1r~ o ? .'/ !j.~ 2 e THE CITY OF SAN BERNARDINO DRAFT CONSOLIDATED PLAN for fiscal years 2001-02 e CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY e e 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.............................................................................15 C. Anti-Poverty Strategy .............................................................................................................16 D. Coordinating Services ............................................................................................................16 e E. Program/Project Monitoring ..................................................................................................16 F. Required Program Requirement .............................................................................................16 Listing ofFY 2001-2002 Proposed Projects..................................................................................19 ATTACHMENT I e 1 e e e 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. Strategv Imolernentation. 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-Povertv Strategv. 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. ProgramlProiect 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 Reauirernents. 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. Summarv of Citizen Comments. This section summarizes comments received during the public review period and will describe how these comments were addressed, if applicable. e e e A. STRATEGY IMPLEMENTATION As stated previously, the mission of the 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. Fundinx Sources and Available Proxrams 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 Prol!ram Resources COBG $4,014000 HOME $1,971,000 ESG $152000 Section 8 - Proiect & Tenant $6170829 Section 8 - Moderate Rehabilitation Prol!r8m $535 000 Section 108 $1 800000 TOTAL $14 642 829 2 e e e Local Resources Programs Resources RDA General Funds IAnnroximatelvl $5,000 000 RDA 20% Housin2 Funds $3 000,000 General Fund I ADDroximatelv) $1050000 TOTAL $9 050.000 Non-Profit and For Profit Sources Programs Resources Nei2hborhood HOUSin2 Services (Aooroximatelvl $1,000,000 In-kind Donations (AoDroximatelv) $500 000 Develooer Investment I Annroximatelvl $6 000 000 Private Lendin2 mstitotions (ADDroximatelv) $12000000 TOTAL $19500000 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 2001/2002: Rural Homeless Housing c. 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. Circumstances under which the City would not certify 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 activity/project 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 e e 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. public/private sources will be pursued when possible. 4 e e e City of San 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. Fundin~ Source Support Application by Other Entities? A. Formula/Entitlement Programs ESG Public Housing Comprehensive Grant B. Competitive Programs HOPE 1 HOPE 2 HOPE 3 ESG Supportive Housing HOPWA Safe Havens Rural Homeless Housing Sec. 202 Elderly Sec. 811 Handicapped Moderate Rehab SRO Rental Vouchers Rental Certificates Public Housing Development Public Housing MROP Public Housing ClAP L1HTC 5 y y y y y y y y y N y y y y y y y y y r----n-- ! - e e e City of San 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. #1: Preservation and Rehabilitation of Existin 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 EIistinl! Sin!!le Familv Units Activity Funding Planned Households to Undertaken Source Funding 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 ProgJ:am RDA Housing Funds $80,000 220 Households ARR ProgJ:am HUD/Private Resources $15,000,000 200 Units Source: City olSon 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 Housinl! Permanent IExistinl! and New Construction) Activity Funding Planned Households to be Undertaken Source Fundin!! Assisted Mortgage Assistance Program Housing RDA & $400,000 200 (ExistinglNew Construction- MAP, HOME Funds $700,000 Acquisition & Rehab Programs) Homeownership Financial Counseling HOME Funds $80,000 200 Source: City a/San Bernardino staff estimates. 6 e e e 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 Exlstin Affordable Rental Housin.. Activity Funding Planned Households to be Undertaken Source Fundln.. Assisted Section 8 Rental Certificate and V ouchet 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 of 75 Unit Senior Housing on 202 HUD Funds $7,300,000 75 Units Baseline Street Home Funds Sources: CUy of San Bernardino staff estimates; County a/San Bernardino Housing Authority Estimates. 7 e e e City of San Bernardino - Consolidated Plan - FY 200/-2002 #4: Assist Homeless and S ecial Need Persons with Su ortive 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 Sunnortive Services Activity Funding Planned Households to be Undertaken Source Fundin.. Assisted Emergency Shelter Grant Program ESG $152,000 200 (Emergencyrrransitional 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 ProlUlUlls CDBG/CMO $120,000 150 Source: City 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 e e e City orSan Bernardino - Consolidated Plan - FY 2001-2002 TABLES CITY OF SAN BERNARDINO Priority #S: Exnansion of Affordable Housinl! Onnortunlties throul!h New Construction Activity Funding Planned Households to Undertaken Source Fundinl! be Assisted Century Crowell Development Private Resources and $4,000,000 24 Units RDA Housing Funds Glacier Property Development Private Resources and $15,000,000 110 Units RDA Housing Funds In-Fill Housing Program Private Resources and $1,500,000 20 Units RDA Housinl! Funds Source: City of San Bernardino staff estimates. 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 e e e City orSon Bernardino - 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 Housebolds 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 RehabilitationlReuse Section 108 & $1,840,000 60 (Slum Bligbt Eradication) ED!; Private Section 108 Investment $344,000 ED! Cineplex Acquisition NW Comer ofNortb "E" & Section 108 $7,000,000 60 4" Streets Float Loan & Float Loan ED!; Private Investment Source: City of San Bernardino staff estimates. 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. 70 e e e City orSon Bernardino - Consolidated Plan - FY 200/-2002 TABLE 7 CITY OF SAN BERNARDINO Priority #7: Expand and Imnrove Exlslin!! Infrastructure to Meet Current and Future Needs Prolect Description 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. III Funds $100,000 Way Rialto Ave. and Mercy St. 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) NinthSt. Install pedestrian signals and loops Prop. III Funds $175,000 on side streets from H St. 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" St. 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 St. 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 CDBa $272,000 TOTAL: $1,322,000 Source: City of San Bernardino Capita/ Improvement Program 200/-02. 11 e Priority #8: Ellinina Educatio To support the City's effo moderate-income household housing, including: . Education and training 0 . Mediation and complain . Monitoring of complian financing, renting, adve . Financial assistance and low- and moderate-inco The City will focus on accessibility to homeowners access to sound rental housi Current and past studies 0 concluded that the primary di financial circumstances rath e submitted to the Inland Me involve property maintenanc filed by female-headed hous experience difficulties in obt with the California Departm disability were the primary b a complaint was filed, folio In light of these findings, the agencies to improve econo housing availability (particul supportive services for famil restricted in their housing ch Priority #8: Elimination ofI Activity Undertaken Fair HousingILandlordff enant P Education, Training, Public Ann Testing Cases e Enforcement - Advertisement Source: City o/San Bernardino SlajJ ulima' City orSon Bernardino - Consolidated Plan - FY 2001-2002 tion ofIdentified Impediments to Fair Housing through n, Enforcemen and Testin rts to increase housing availability and accessibility for low- and s, the City supports a number of programs and services to promote fair n state and federal fair housing laws. t resolution. ce by individuals and organizations involved in the sale, rtisement, and management of housing. economic development programs to increase incomes for me households. two strategies to remove impediments to fair housing: 1) increase hip, and 2) ensure that low- and moderate-income renters have adequate ng. f impediments to fair housing and monitoring of compliance have fficulties faced by low- and moderate-income households relate to their er than race, ethnicity, gender, or national origin. Most complaints diation Board involve landlord-tenant disputes, and many of these e issues. There appears to be a disproportionate number of complaints eholds with children, which could indicate that some single mothers aining suitable housing for their families. Of thirteen complaints filed ent ofF air Employment and Housing between 1997 and 1999, race and ases cited for the complaints. Eviction was the most-cited act for which wed by refusal to rent and offering of unequal terms. City will continue to implement programs and support efforts by other mic opportunities for low- and moderate-income households, increase arly homeownership), assist other agencies in providing child care and ies with children, and ensure that single parents are not unreasonably oices. TABLE 8 CITY OF SAN BERNARDINO m ediments to Fair Housln Throu h Education Enforcemen and Testin Funding Planned Households to Source Fundln be Assisted rogram ouncement In-KindlCDBG $80,000 120 In-KindlCDBG $80,000 5 In-KindlCDBG $80,000 1 In-KindlCDBG $80,000 5 <S. 12 e e e City of San Bernardino - Consolidated Plan - FY 200/-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. GeoKraphic 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 ManaKement 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 e e e City of 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 procedural/policy 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. 1. Institutional Structure The EDA and City will continue to aggressively attracthousing 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 e e e City orSon Bernardino - Consolidated Plan - FY 200/-2002 3. Public Housinll 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 Housinll 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: (1) 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 e e e City orSan Bernardino - Consolidated Plan - FY 200/-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. PROGRAMlPROJECT 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 cornmunity 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 oflighting within low- and moderate-income neighborhoods, as well as the funding ofa 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 1. 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 e e e City orSon 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: N/ 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 CDBO float funded activity in the amount of $7 million during this Plan year for the Downtown Cineplex. Urgent Needs - N/A 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 cOlIl!llencing 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 (Hi) any refinancing of the lien of the First Mortgage Lender to which the lien of the Agency Deed ofTrust 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 - N/A Other Forms ofInvestment - N/A 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 MlWBE 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 e e e City orSan Bernardino - Consolidated Plan - FY 2001-2002 including without limitation, real estate fmns, 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 - Nt A 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 Programs! Activity Name-CDCAC Recommendations 1. 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 ofNeigbborly Services - After School & Homework b. Home ofNeigbborly Services - Food and Nutrition Education 15. Inland Caregiver Resource Center 16. Legal Aid Society 17. Liberia Del Pueblo 18. Mary's Mercy Center 19. Neigbborhood 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 SUB-TOTAL C. General Proposed Projects - City/EDA Recommendations 1. Tippecanoe Disposition and Development Agreement (Demolition) - EDA Adruinistered 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 Adruinistered 2. Small Business Development Corporation (SBDC) - EDA Adruiuistered 3. Fair Housing (HUD Mandated) - EDA Adruiuistered SUB-TOTAL Revised: 05/07/01 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 TOTAL 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 $1,415,000 $201,350 $100,000 $2,964,000 $50,000 $20,000 $40,000 $110,000 $4,124,000 P:\Clerical Services Dept\Lisa\Misc\lst Consolidated Plan-Attachment 1.doe I . ATTACHMENT I 2. HOME INVESTMENT PARTNERSIDP ACT GRANT RECOMMENDATIONS (HOME) Activitv Program Administration (10%) Community Honsing Development Organizations Honsing Projects (CHDO's) (15%) Community Honsing Development Organization (CHDO's) - Honsing Operations (5%) Other Housing Projects - (i.e., Homebuyers, Home Improvement, Relocation, etc.) 3. EMERGENCY SHELTER GRANT (ESG) RECOMMENDATIONS Activitv Mary's Mercy Center Option Honse 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 DEMOLITION OF FUNDS FOR FISCAL YEAR 200112002 SOURCE AMOUNT CnBG $201,350 CITY GENERAL FUND $110,000 TOTAL $311,350 NOTE: An estimated $37,000 from CnBG 2000/2001 Code Compliance Administration is project to be available for 2001/2002. t<l(f ~/7/01 1- , e e e ., "'''''''0. ~.. "b {:,~ :J "-."I.I(",.~Q U.S. Department of Housing and Urban Development Los Angeles Area Office. PacificIHawaii 611 West Sixth Street Los Angeles, Camomia 90017 Honorable Judith Valles Mayor City of San Bernardino A TTN: Gary Van Osde1 3Q.0 North D Street. 61h Floor San Bernardino, CA 92418 FES 0 ~ ZllOl SUBJECT: 1999 Program Year Review Letter HUD Consolidated Plan Programs . ..., 0 ", ..- 0 '" ct' -" 0 :: ...... ::: r - 0: ......0' Co" C') ..- - 1 fT' ..s::. c>"" -' ~ rn . .,..~ ""'" ~- .0:: - 0 -u ..."') rn !: -n ::3 """'r- ~. 0 0 . :z: N :; 0 ..... ..- ::z ..- - Dear Mayor Valles: This letter highlights significant achievements madc by the City of San Bernardino utilizing HUD Consolidated Plan program funds, more specifically. funds from the Community Development Block Grant (CDBG), the HOME Investment Partnerships (HOME), and the Emergency Shelter Grant (ESG) programs. The attached assessment is based on the City's 1999 Consolidated Annual Perfornlance and Evaluation Report (CAPER). reports from the Integrated Disbursement and Infornlation System (IDIS), and our review of your five year Consolidatcd Plan. Thc assessment also calls attention to those areas in which the City should concentrate its efforts to improve pcrformance. If you have any comments. please provide your written comments within 30 calendar days from the date of this letter. 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 and/or external audit team in advance of the annual single audit as required by OMB Circular A-133. Overall Assessment: Based upon our review of the City's CAPER. wc have deternlined 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 and/or projects display high quality. productivity and efficiency. c.. J e e e -, 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$3,884,000; HOME in the amount of$I,773,OOO; 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 IDIS 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 I 3) 894-8000, extension 3313. ~erelY, '- ~~-" C::> .f!R _ Robert G. I1umin Deputy Director Office of Community Planning and Development Los Angeles Area Office - Enclosure cc: Maggie Pacheco , 9DDM3 HamiltonlChoi ~ :-- ~ e e e 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. ~ ~ :z: 0:: During the 1999 Program Year, the fifth and final year covered by the fivc-f{;ar ~ Consolidated Plan, the City received three Consolidated Plan formula grants, C@6'in the amount of $3,884,000; HOME in the amount of $1,773,000; and ESG in the ~ITl~.mt~ of$138,000. The City focused primarily on affordable housing. economic deve~mentT'>) Continuum of Care, code enforcement. public service and public facility activitiet$l ...... ...... The City's CAPER reports 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 quantified. Consolidated Plan goals appears to have been met especially in the areas of providing decent and affordable housing and in assisting the homeless. The CAPER included tables which identified sources offunding 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. The 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 195 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) c ::>::0 ::::,..., ;... c=; v t::l rn :.,0 <: .- ,..., ._- < l"T'i ~r"O It:: 0..- ..., . 3: rn - .- ".- 1.--, ...... e e e the transition to pennanent 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 City assisted 3,500 homeless with emergency shelter and support services. 20 units of transitional housing were provided last year. No numbers were reported for pennanent 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 perfonnance 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 of the County of San Bernardino. Accomplishments with HUD Section 8 funding are discussed 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 $772.598 and HOME funds of$I,773,000 leveraged an additional $3,862.893 in local Redevelopment Agency funds for affordable housing. HOME and RDA funds provided homeownership assistance to 735 eligible homebuyers 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. In particular, the Economic Development Agency's (EDA) Acquisition. Rehabilitation. Resale (ARR) Program is helping to arrest the cycle of blight and fix problem properties to a high standard. The EDA has partnered with approved contractor/development 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 e e e 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 homebuyer. 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 )lave the opportunity to create stability in the neighborhood. The rehabilitated home provides a quality and stability of the neIghborhood, 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 exceeded 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 8est Practice performance in providing decent and affordable housing. Suitable Living Environment During the 1999 program year. the City is a Aceeptablc Performcr in providing a suitable living environment as evidenced by the City's expending of$I.941.l07 in CDBG funds on 70 various public facility improvement and public service projects to improve the quality of life of its residents. Economic Dcvelopment In the area of economic opportunity, the City of San Bernardino's performance _ has been found to be Acceptable. 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 (10.000 jobs lost) and (4) the impact of the commuter population on the City's gro\\1h and expansion. 3 6 e e e 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 fonned 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 development projects which created or retained 295 jobs. However. no quantifiable goals in relation to jobs created or retained were identified in the City's Consolidated/Annual Plans. Quantifiable goals and actual accomplishments are required in future Plan/CAPER submissions. Program Requirements In the area of Program Requirements. the City's performance has been found to be Good Performer. All activities ofCDBG. I-IOME and ESG programs appear eligible. The City expended 89.2% of its CDBG funds (not including planning :lI1d administration expenses) on activities that benefited low and moderate income persons exceeding the 70% threshold based on a on-year ccrtification. CDBG public services cap of 15% was met as actual committed funds amounted to 11.]4% of the 1999 grant plus prior year (1998) program ineome.CDBG planning and administrative cap of20% was met as actual committed funds amounted to 16.58% of the 1999 grant plus current year (1999) program income. A total of$19.571 in CDBG Program Income was reported as received during Program Year 1999 in the Financial Summary report. Other sources of Program Income indicated on page ]0 of the CAPER total $130.371. - The City was last monitored in Fiscal Year 1999. Two findings were made. one on timeliness of CDBG 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 30.2000 (60 days prior to end of the program year, the City's timeliness ratio was at 1.07 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 e e e 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 !DIS and reporting area. Reports are generally submitted in a timely manner and are accurate requiring only minor changes or corrections. However. the !DIS C04PR03 Summary of Activities - Grantee Performance Report did not provide accomplishment 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 !DIS 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 Housing management/operating 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 affirnlative1y further fair housing and to mitigate impediments to fair housing in San Bernardino. The impediments to fair housing. identified in the Analysis ofImpediments to Fair Housing Choice. reflected discrimination and housing issues. The overall conclusion was that today's discrimination acts have become deceptive and sophisticated. 5 t;; e e e 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 owners/residents, 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 reviewed 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 CDSa funds; test expenditure and related records; for selected activities, review document~tion showing how national objectives are met; <- The CDS a 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 --: [,., '-' e e e 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 c; , ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): S -i-<J \ Item # 12... "i \ Resolution # Vote: Ayes 1-1I ,"'-' Nays & Abstain S Change to motion to amend original documents: 20()1- \0'1 Absent ....G Reso. # On Attachments: ,/ Contract term: NullNoid After:- Note on Resolution of Attachment stored separately: =- Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY By: Date Sent to Mayor: 5-'ls-0\ Reso. Log Updated: Seal Impressed: ./ Date of Mayor's Signature: S -'(;-01 Date ofClerklCDC Signature: 6-'l-t:. \ v'" Date Memo/Letter re: See Attached: See Attached: Se Date Returned: - 60 Day Reminder Letter Sent on 30th day: 90 Day Reminder Letter Sent on 45th day: d: Yes t/' No By Yes No ./ By Yes No ,/ By Yes No /" By Yes NoT By Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985, 8234, 655, 92-389): Copies Distributed to: City Attorney Parks & Rec. ,/ Code Compliance Dev. Services EDA /" Finance MIS Police Public Services Water Others: Notes: BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.) Ready to File: ~ Date: Ol()-Ol Revised 01112/01