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HomeMy WebLinkAbout03-Community Development l. CIA OF SAN BERNARDQO - REQ~T FOR COUNCIL A~ION From: Kenneth J. Henderson, Director .,; .',." ~'biget: nr:,SUBSTANl'IAL CHANGE .1........ i,J.~,"",...lr.. \.;1'.. FOLlCY FOR COBG PROGRAM Dept: Community Development ~: ..~~ J~!L ..., ! r (~ I ,-' Date: July 6, 1989 Synopsis of Previous Council action: None. Recomrnended motion: That the "substantial change" policy and related definitions for the purpose of the Community Development Blcx::k Grant (COBG) program be adopted. Further, that staff be directed to submit same in a=rdance with newly amended federal regulations to the U.S. Depart:roent of Housing and Uman Development. ~ '~ -_._-~~.- Contact person: Ken Henderso'Y.~~.!:J"ores Phone:_~65, Supporting data attached: staff Report Ward:____~-]__, FUNDING REOUIREMENTS: Amount:___NL~,_, , Source: (Acct. No,L ~~ ___,.___ _ _ (AccLDescriQ!ion) Finance: Cou nci I Notes: 7<;._n?s-;.? Ammrli=l Itpm No -~ Clff' OF SAN BERNARDlio - REQUSsT FOR COUNCIL AC'?ION STAFF REPORT In September of 1988, the U.S. Department of Housing and Urban Development (HOD) revised its guidelines for the operation of the Comrmmity Development Block Grant (COa;) program. 'Ihese guidelines consolidated several modifications that occurred in recent years. Three new rules and regulations stipulate that each entitlement municipality take action within one-hundred, twenty (120) days upon adoption of said guidelines. Section 570.305 states that each grantee "... shall develop and make public its =iteria f= what constitutes a substantial change..." under the coa; program. In the past, a grantee was required to amend its final statement of Comrmmity Development Objectives and Projected Use of FUnds when it decided to "substantially change" the purpose, scope, location and/or beneficiaries of a particular activity. In addition, HOD has always allowed cities to use discretion in deciding what constitutes a "substantial change". With the new requirements that each grantee must develop criteria pertaining to this matter, ,staff recormnends the Mayor and CoI11lron council adopt the following "substantial change" policy: For the purpose of complying with Section 570.305 of Title 24 CFR, Part 570, the Mayor and CoI11lron Council of the City of San Bernardino establish that change to an activity under the City'S coa; program shall be considered substantial if (i) over fifty percent (50%) of the original locations or beneficiaries are impacted by the change, or; (ii) the description of the activity is modified to the point whereby the general public would consider it to be a new activity. A substantial change is considered to have occurred under the following circumstances: 1. 'Ihe amount to be expended for an activity is proposed to be increaseci or decreased fram the amount in the final "statement" by more than twenty-five percent (25%). 2. 'Ihe location of the activity is changed fram the location as described in the final "Statement". 3. 'Ihe addition of a proposed activity which is not described in the final "statement". 4. 'Ihe deletion of a proposed activity which' is described in the final "statement". c. ~ . &. lti 4. .4 u o o o STAFF REPORT CDNl'INtlED... July 6, 1989 Page -2- I recommend that the Mayor am Cammon Council approve am adopt said recommended policy relative to the definition of "substan- tial change" am, further, that staff be authorized to submit said policy am related definitions to the U.s. Depart ment of Housing am U:rban Development. Klli/ELF /lab/3255 July 6, 1989