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Home My WebLink About05.D- City Manager RESOLUTION (ID # 3534) DOC ID: 3534 C CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Budget From: Allen Parker M/CC Meeting Date: 12/01/2014 Prepared by: Brandon Mims, (909) 384- 5122 Dept: City Manager Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Amending the 2014-2015 HOME Investment Partnership (HOME) Program Budget (Fund 117) to Reflect the Amounts Approved by the Mayor and Common Council on April 21, 2014 in the 2014-2015 Action Plan. (#3534) Current Business Registration Certificate: No Financial Impact: Staff is submitting this budget amendment to appropriate all funds approved as part of the 2014-15 Action Plan. If not approved, departments will not have the ability to spend funds from these accounts. The account allocation breakdown and narrative is included in the staff report under "Financial Impact." Motion: Adopt the Resolution. Synopsis of Previous Council Action The Mayor and Common Council adopted the Housing and Urban Development (HUD) Action Plan for Fiscal Year 2014-2015 on April 21, 2014. Background The overall goal of the community planning and development programs administered by the Department of Housing and Urban Development (HUD) and carried out locally by the City of San Bernardino (City) is to develop viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities principally for low- and moderate-income persons. ❑ Decent housing includes: assisting homeless persons to obtain appropriate housing and assisting persons at risk of becoming homeless; retention of the affordable housing stock; and increasing the availability of permanent housing in standard condition and affordable cost to low-income and moderate-income families, particularly to members of disadvantaged minorities, without discrimination on the basis of race, color, religion, sex, national origin, familial status, or disability. In addition, decent housing also includes increasing the supply of supportive housing, which combines structural features and services needed to enable persons with special needs, including persons with Updated: 11/25/2014 by Georgeann "Gigi" Hanna C I Packet Pg.61 ; 3534 HIV/AIDS and their families, to live with dignity and independence; and providing housing affordable to low-income persons accessible to job opportunities. ❑ A suitable living environment includes: improving the safety and livability of neighborhoods; increasing access to quality public and private facilities and services; reducing the isolation of income groups within a community or geographical area through the spatial de-concentration of housing opportunities for persons of lower income and the revitalization of deteriorating or deteriorated neighborhoods; restoring and preserving properties of special historic, architectural, or aesthetic value; and conservation of energy resources. ❑ Expanded economic opportunities includes: job creation and retention; establishment, stabilization and expansion of small businesses (including micro-businesses); the provision of public services concerned with employment; the provision of jobs involved in carrying out activities under programs covered by this plan to low-income persons living in areas affected by those programs and activities; availability of mortgage financing for low- income persons at reasonable rates using nondiscriminatory lending practices; access to capital and credit for development activities that promote the long-term economic and social viability of the community; and empowerment and self-sufficiency opportunities for low-income persons to reduce generational poverty in federally assisted and public housing. The primary means towards accomplishing the above objectives is to extend and strengthen partnerships among all levels of government and the private sector, including for-profit and non-profit organizations, in the furtherance of community development goals. The 2014-2015 Community Development Block Grant (CDBG), Home Investment Partnership (HOME), and Emergency Solutions Grant (ESG) programs are opportunities for the City to continue its partnership with HUD. The City has participated as an entitlement community in these programs since their creation. Participating jurisdictions, like the City of San Bernardino, are required to prepare a Five-Year Consolidated Plan for their formula grant programs (CDBG, HOME, and ESG). The Consolidated Plan (CP) states in one document its plan to pursue the aforementioned "community planning and development programs, as well as fair housing programs." The City is currently operating under its 2010-2015 CP that was adopted by the Mayor and Common Council on May 3, 2010. The Mayor and Common Council adopted the Housing and Urban Development (HUD) Action Plan for Fiscal Year 2014-2015 on April 21, 2014, which included funding received through the Home Investment Partnership (HOME) program. The anticipated allocation was approximately $900,000 and the total proposed carryover from prior years was $4,500,000 to be allocated to the following activities: Activities/Project Budget Administration $ 90,000 Updated: 11/25/2014 by Georgeann "Gigi" Hanna C I Packet Pg.62 - - ---------- I I 3534 County Sub-Recipient Agreement 810,000 Single Family Beautification/Loan Program 1,750,000 Homebuyer Assistance Program 1,250,000 Multi-Unit Rental Acquisition and Rehabilitation 500,000 New Housing Development 1,000,000 Total $5,400,000 Statement of the Issue In an effort to effectively manage the Home Investment Partnership (HOME) program, it is necessary to appropriate and allocate the funding into the 2014-2015 Fiscal Year budget. Financial Impact Staff is submitting this budget amendment to appropriate all funds approved as part of the 2014-15 Action Plan. If not approved, the City Manager's Office will not have the ability to spend funds from these accounts which could impact the City's ability to meet the Action Plan performance requirements. Staff is proposing to allocate the funding as follows: Account Number Activities/Project Amount 117-100-0014-5111 Supplies $5,000 117-100-0014-5121 Advertising $4,000 117-100-0014-5174 Printing $5,000 117-100-0014-5175 Postage $1,000 117-100-0014-5502 Acquisition/Rehabilitation $1,490,058 117-100-0014-5502 Owner Occupied Rehabilitation $1,288,000 117-100-0014-5502 Mobile Home Rehabilitation $80,000 117-100-0014-5502 Homebuyer Assistance $600,000 117-100-0014-5504 Waterman Gardens 1 $1,500,000* 117-100-0014-5504 Waterman Gardens 2 $810,000** 117-100-0014-5505 Administration $403,499 Total $6,186,557*** *This amount ($1,500,000) is an Affordable Housing Development loan the City is giving to the Valencia and 9th Project. **This amount ($810,000) is a Sub-Recipient Agreement between the City and County for the development of the Valencia and 9th Project. ***This amount ($6,186,557) is the total of all current obligations. This amount exceeds the Action Plan amount, however, it is not anticipated that the Rehabilitation Program will exhaust the full amounts of the contracts prior to June 30, 2015. Recommendation Updated: 11/25/2014 by Georgeann "Gigi" Hanna C Packet Pg.63. 3534 Staff recommends approval of the item. City Attorney Review: Supporting Documents: HOME Program Budget Fix (DOC) Updated: 11/25/2014 by Georgeann "Gigi" Hanna C Packet Pg. 64 1 RESOLUTION NO. 2 SOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 3 3ERNARDINO AMENDING THE 2014-2015 HOME INVESTMENT PARTNERSHI HOME) PROGRAM BUDGET (FUND 117) TO REFLECT THE AMOUNTS APPROVE 4 BY THE MAYOR AND COMMON COUNCIL ON APRIL 21, 2014 IN THE 2014-201 CTION PLAN 5 6 WHEREAS, the City of San Bernardino (the "City") is an entitlement City and eligible to 7 participate in the United States Department of Housing and Urban Development's ("HUD") and 8 receive an annual allocation of Community Development Block Grant ("CDBG") and HOME X LL 9 Investment Partnership Act("HOME"); and d a� 10 � WHEREAS, On May 3, 2010, the Mayor and Common Council of the City of San m 11 w Bernardino ("Council") approved the City's Five-Year 2010-2015 Consolidated Plan and the 2010- o 12 2011 Annual Action Plan that is required to guide and identify needs which the City will address LO M 13 incrementally for the 2010-2015 period; and x 14 WHEREAS, the 2014-2015 Action Plan was adopted on April 21, 2014 and subsequently w d 15 a� submitted to the Housing and Urban Development Department as the City of San Bernardino's n m 16 planned use of Community Development Block Grant, Home Investment Partnership, Emergency a, 17 Solutions Grant and Neighborhood Stabilization Grant funds; and a 18 w WHEREAS, to appropriately track the revenue and expenditures related to the HOME 19 = Investment Partnership (Fund 117) program, the amount of revenue approved in the Annual Action d 20 Plan should reflect the amount appropriated into the City's Annual Budget, recorded in the General 21 Ledger and monitored for compliance by Program Staff situated in the City Manager's office; and a 22 WHEREAS, in compliance with the California Environmental Quality Act ("CEQA") and 23 the National Environmental Protection Act ("NEPA") guidelines, the amendments to the City's 24 Five-Year 2010-2015 Consolidated Plan and the 2014-2015 Annual Action Plan and reprogramming 25 of CDBG and HOME federal funds is determined to be an exempt actions pursuant to Section 26 15332 of the CEQA Guidelines and 24 CFR 58. 34(a)(3) of NEPA Guidelines because the proposed 27 action is required for federal programs administration and compliance. 28 1 Packet Pg.63 1 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON �1..►' COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 2 3 SECTION 1. That the total revenue for the 2014-2015 Home Investment Partnership 4 (HOME) Program Budget shall be $6,186,557. 5 SECTION 2. That the aforementioned Home Investment Partnership (HOME) Program 6 Budget amount shall be allocated into the City Manager's 2014-2015 Department budgets as 7 follows: 8 Account Number Activities/Project Amount 117-100-0014-5111 Supplies $ 5,000 9 117-100-0014-5121 Advertising 4,000 LL 117-100-0014-5174 Printing 5,000 10 117-100-0014-5175 Postage 1,000 117-100-0014-5502 Acquisition/Rehabilitation 1,490,058 m 11 117-100-0014-5502 Owner Occupied Rehabilitation 1,288,000 2 117-100-0014-5502 Mobile Home Rehabilitation 80,000 O 12 = 117-100-0014-5502 Homebuyer Assistance 600,000 13 117-100-0014-5504 Waterman Gardens 1 1,500,000* Cl) 117-100-0014-5504 Waterman Gardens 2 810,000** 14 117-100-0014-5505 Administration 403,499 U_ Total $6,186,557*** 15 -� *This amount ($1,500,000) is an Affordable Housing Development loan the City is giving to the m 16 Valencia and 91h Project. E L 17 **This amount ($810,000) is a Sub-Recipient Agreement between the City and County for the a 18 development of the Valencia and 9th Project. O 19 ***This amount ($6,186,557) is the total of all current obligations. This amount exceeds the Action Plan amount, however, it is not anticipated that the Rehabilitation Program will exhaust the full 20 amounts of the contracts prior to June 30, 2015. E 21 r SECTION 3. This Resolution shall take effect upon its adoption and execution in the a 22 manner as required by the City Charter. 23 24 /// 25 26 27 *'✓ 28 2 Packet Pg.66 1 RESOLUTION NO. 2 SOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 3 3ERNARDINO AMENDING THE 2014-2015 HOME INVESTMENT PARTNERSHI 4 HOME) PROGRAM BUDGET (FUND 117) TO REFLECT THE AMOUNTS APPROVED Y THE MAYOR AND COMMON COUNCIL ON APRIL 21, 2014 IN THE 2014-201 5 CTION PLAN 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a meeting thereof, 8 held on the day of , 2014,by the following vote to wit: x U. 9 d 10 Council Members: Ayes Nays Abstain Absent m 11 2 MARQUEZ 0 12 BARRIOS M 13 VALDIVIA 14 SHORETT U. 15 NICKEL m 16 JOHNSON E 17 MULVIHILL o a 18 g 0 19 = Georgeann Hanna, City Clerk c 20 E 21 The foregoing resolution is hereby approved this day of 12014. a 22 23 24 R. Carey Davis, Mayor City of San Bernardino 25 Approved as to Form: 26 Gary D. Saenz, City Attorney I 27 28 By: 3 Packet Pg. 67