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Home My WebLink AboutRS4- Development Department D E V E L O P M E N T D E P A R T M E N T OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Subject: FY 1993/1994 CDBG Executive Director PROGRAM MIX Date: March 1, 1993 ------------------------------------------------------------------------------- Synousis of Previous Commission/Council/Committee Action(s): On March 4, 1993, the Community Development Citizen Advisory Committee considered the proposed FY 93/94 CDBG Program Mix and recommended to the Mayor and Common Council approval of same. ------------------------------------------------------------------------------ Recommended Motion(s): (Mayor and Common Council) Community Development Citizen Advisory Committee Recommendation MOTION: That the Mayor and Common Council approve and adopt the FY 1993/1994 CDBG Program Mix for the period beginning July 1, 1993 and ending June 30, 1994 and authorize staff to solicit proposals for same. Administrator KENNETH J. HENDE ON Executive Direct r ------------------------------------------------------------------------------- Contact Person(s): Ken Henderson/Art Hassel Phone: 5081 Project Area(s): N/A Ward(s): 1-7 Supporting Data Attached: Staff Report; FY 1993/1994 CDBG Program Mix FUNDING REQUIREMENTS: Amount: $ 3,139,000 Source: FY 1993/1994 CDBG LOC Budget Authority: N/A ------------------------------------------------------------------------------ Commission/Council Notes: ------------------------------------------------------------------------------ KJH:AJH:mkc:2919J COMMISSION MEETING AGENDA Meeting Date: 3/8/1993 Agenda Item Number: - � D E V E L O P M E N T D E P A R T M E N T OF THE CITY OF SAN BERNARDINO STAFF REPORT FY 1993/1994 CDBG PROGRAM MIX On January 25, 1993, staff conducted discussions with the City's U.S. Department of Housing and Urban Development (HUD) Community Planning and Development Representative regarding the City's FY 1993/1994 CDBG allocation. As a result of this discussion, staff vas informed the total grant amount for the upcoming 1993/1994 fiscal year has been increased by some fifty percent (50%) to a total of $3,139,000. Because the Program Mix categories are used to solicit proposals from individuals, nonprofit agencies and City departments, it is useful to review the current Program Mix and one from the previous fiscal year: Approved Approved Proposed Category FY 91/92 FY 92/93 FY93/94 Public Services $281,700 $300,450 $470,850 (Includes Fair Housing) Capital Improvements $772,958 $1,213,950 $1,452,350 Rehabilitation Loans/Grants $359,742 -0- $500,000 Demolition $ -0- -0- $ -0- Purchase of Delmann Heights Water System (4th Payment) $ 88,000 $ 88,000 $ 88,000 Infill Housing (Acquisition -0- -0- -0- Off-Sites) Appropriated Reserve $ -0- -0- -0- Administration: $375,600 $ 400,600 $627,800 1.878.000 $2,003,000 t3.139.000 On March 4, 1993, the Community Development Citizen Advisory Committee (CDCAC) considered the proposed CDBG Program Mix. The Committee's recommendations are described below in some detail. The recommended allocation for Public Services, which includes Fair Housing activities, is $470,850, representing fifteen percent (15%) of the grant and the maximum allowed by law. The CDCAC recommends the Mayor and Common Council, as in the past three (3) years, limit grant awards in this category to a maximum of $20,000. ----------------------------------------------------------------------------- KJH:AJH:mkc:2919J COMMISSION MEETING AGENDA Meeting Date: 3/8/1993 Agenda Item Number: J DEVELOPMENT DEPARTMENT STAFF REPORT FY 1993/1994 CDBG Program Mix March 1, 1993 Page Number -2- The CDCAC also recommends $1,452,350 for capital improvement and infrastructure projects. In addition to the construction or rehabilitation of various projects, other eligible activities under this category include architectural and engineering services, historic preservation (rehabilitation) and the acquisition and disposition of real property. Historically, City departments have submitted several applications for financial assistance because of General Fund Budget constraints. Due to such financial constraints, the City has placed primary reliance on CDBG monies to carry out its capital improvement and infrastructure projects. Over the last five years, the Mayor and Common Council have allocated approximately seven million dollars to this activity. Due to the prior and projected scarcity of dollars and the high degree of unmet physical needs within adopted redevelopment areas, it is critical that traditional redevelopment activities and CDBG sponsored projects be coordinated harmoniously rather than in isolation throughout the City. Consequently, staff requested the CDCAC evaluate, and utilize as a factor in such evaluation, the proposal's ability to complement existing and Redevelopment projects where and when possible. In practice, this will dictate budgeting and implementing capital improvements within focused Neighborhood Rehabilitation areas of active rehabilitation, community organization clean-up efforts and the like. It is important that, given an option, the activities be located within redevelopment project areas where they can cause or create long-term growth in tax increment. The analogy also extends to non-residential redevelopment projects. Only by using this approach will we have a truly comprehensive strategy to address blight and create jobs within Redevelopment Project areas. Under the Rehabilitation Loan/Grant category, the CDCAC recommends $500,000 be allocated to this category because there is insufficient funding in the revolving loan fund to cover the significant demand developed by various Housing Division projects and initiatives. The amount allocated to the Delmann Heights Water System ($88,000) is the fourth of five (5) annual installments for the purchase of this water system. Relative to the Administration category, the CDCAC recommends the Mayor and Common Council allocate $627,800 or twenty percent (20%) of the grant which is the maximum level allowed by law. These funds support 6.0 to 6.5 full-time equivalents (FTEs) and finance the overall management and ------------------------------------------------------------------------------ KJH:'_JH:mkc:2919J COMMISSION MEETING AGENDA Meeting Date: 3/8/1993 Agenda Item Number: 2!� - V DEVELOPMENT DEPARTMENT STAFF REPORT FY 1993/1994 CDBG Program Mix March 1, 1993 Page Number -3- administration of the CDBG program and its major components, such as the Neighborhood Rehabilitation Program. No funds are being recommended for Demolition, Infill Housing and the Appropriated Reserve for the reasons set forth below: 1. Demolition: The amount remaining in this fund is sufficient to cover anticipated housing projects. 2. Infill Housing: Financing for infill housing projects now comes from the Department's Twenty-Percent (20%) Set-Aside Program. 3. Appropriated Reserve: The amount remaining in this fund is approximately $500,000. Although probably insufficient if many of the previously approved capital projects incur significant unanticipated cost overruns, the demand for CDBG funds is such that staff and the CDCAC feel such funds should be allocated accordingly. Additionally, if the Clinton Administration's economic stimulus program is approved, the City will receive this year an additional $2 million in CDBG funds. Staff recommends adoption of the form motion. c1A KENNETH J. HE ERSON, Executive Director Development Department ------------------------------------------------------------------------------- KJH:AJH:mkc:2919J COMMISSION MEETING AGENDA Meeting Date: 3/8/1993 Agenda Item Number: