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Home My WebLink About05- Development Department DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNETH J. HENDERSON SUBJECT: 1994-1995 COMMUNITY Executive Director DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM DATE: February 3, 1994 MIX AND OBJECTIVES --------------------------------------------------------------------------------------------------------------------------------------------- Synoosis of Previous Commission/Council/Committee Action(s): On February 3, 1994, the Community Development Citizen's Advisory Committee (CDCAC) reviewed the 1994- 1995 Community Development Block Grant (CDBG) Program Mix and Objectives, and reconnnended approval of the same to the Mayor and Common Council. --------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Mayor and Common Council) MOTION: That the Mayor and Common Council approve the 1994-1995 CDBG Program Mix and Program Objectives, and authorize staff to solicit applications for the 1994-1995 funding cycle. Adiftinistrator KENNETH J. HEN ERSON Executive Director --------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Kenneth J. Henderson/Laura J. Muna-Landa Phone: 5081 Project Area(s): All Ward(s): Seven (7) Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: N/A Source: N/A Budget Authority: N/A --------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: -------------------------------------------------------------------------------------------------------------------------- KJH:LML:nrnl:cdbgfund.cdc COMMISSION MEETING AGENDA MEETING DATE: 02/07/1994 Agenda Item Number: DEVELOPMENT D E P A R T M E N T STAFF REPORT --------------------------------------------------------------------------------------------------------------------- 1994-1995 Community Development Block Grant (CDBG) Program Mix and Objectives BACKGROUND On January 4, 1994, staff received a memorandum from the U.S. Department of Housing & Urban Development (HUD) identifying the City's 1994-1995 Community Development Block Grant (CDBG) allocation in the amount of $3,305,000. The 1994-1995 grant is an increase of approximately eight and one-half percent (8 1/2%) over the 1993-1994 amount. PROGRAM MIX In order to determine the amount of funds available for application solicitations, staff has developed the proposed Program Mix: CATEGORY PROPOSED AMOUNT 1. Public Services (subject to solicitation) $ 495,750 2. Capital Improvements (subject to $ 1,283,712 solicitation) 3. Delmann Heights Water System $ 88,000 (previously committed - 5th final payment) 4. Housing Rehabilitation $ 550,000 5. Capital Reserve $ 226,538 6. Program Management $ 661,000 TOTAL 1994-1995 GRANT AMOUNT: $ 3,305,000 ANALYSIS The recommended allocation for the Public Services category of $495,750 represents fifteen percent (15%) of the total grant amount, which is the maximum amount allowed by law. Pursuant to previous Mayor and Common Council direction, it is recommended that grant awards in the Public Services category be limited to a maximum of $20,000. It is also advised that $1,283,712 be allocated for the category of capital improvements. Some of the basic activities in this category include: acquisition, construction, rehabilitation or installation of public facilities and improvements; demolition and clearance; architectural and engineering services; and rehabilitation and historic preservation. -------------------------------------------------------------------------------------------------------------------------- KJH:LML:nml:cdbgfund.cdc COMMISSION MEETING AGENDA MEETING DATE: 02/07/1994 Agenda Item Number: _ DEVELOPMENT DEPARTMENT STAFF REPORT 1994-1995 CDBG Program Mix & Objectives February 3, 1994 Page 3 -------------------------------------------------------------------------------------------------------------------------- The third category, Delmann Heights Water System is a multi-year funding activity consisting of the purchase of a water system previously approved five (5) years ago. The amount of $88,000 allocated is the last of five (5) annual installments. $550,000 has been recommended for the Housing Rehabilitation category. Housing rehabilitation activities including low interest loans for rehabilitation by property owners, multi-unit rehabilitation, facade improvements, and focus neighborhood revitalization. The activities are carried out in the Housing Division of the Development Department. In the category of Capital Reserve, the amount of $226,538 has been allocated to address unforeseen cost overruns on capital improvement projects. Relative to the Program Management category, it is recommended that $661,000 be allocated to address appropriate expenses. CDBG funds may be used to pay reasonable program administration costs related to the planning and execution of community development activities assisted with funds provided under the CDBG program. As in the past, this category is expected to fund requests to finance special studies such as the Historical Survey administered by the Planning and Building Services Department. Program administration funds are limited to the costs of overall program management, coordination, monitoring, evaluation, and specific activities, such as citizen participation and fair housing. PROGRAM OBJECTIVES Program Objectives have been developed in an effort to maximize the use of CDBG funds. Through the effective and efficient implementation and use of CDBG funds, it is anticipated a greater benefit to the community will be realized. The Program Objectives are as follows: • When appropriate, encourage the utilization of CDBG funds to carry out capital improvement and infrastructure projects in redevelopment project areas, which are categorized by blight, including inadequate public facilities and infrastructure. • Encourage the development of proposals which complement existing and future projects for maximum benefit to the community. (An example of an appropriate effort would be to fund projects in conjunction with Agency-sponsored activities in the Downtown.) -------------------------------------------------------------------------------------------------------------------------- KJH:LML:nml:cdbgfund.cdc COMMISSION MEETING AGENDA MEETING DATE: 02/07/1994 Agenda Item Number: S DEVELOPMENT DEPARTMENT STAFF REPORT 1994-1995 CDBG Program Mix & Objectives February 3, 1994 Page 4 -------------------------------------------------------------------------------------------------------------------------- • Fund Public Service activities which will result in an increased level of service for an organization. (In accordance with the CDBG regulations, funds should not be provided to maintain an existing budget, but rather to supplement and increase an organization's level of service.) • Encourage community based organizations to develop joint projects which consolidate activities and maximize community resources. CONCLUSION The approval of the CDBG Program Mix and Objectives is the first step in the 1994-1995 CDBG Funding Cycle. The next step in the process will be the solicitation of applications with the application period to begin on February 8, 1994 and end on March 22, 1994. Upon a thorough review of all submitted applications, staff will forward all eligible applications to the Community Development Citizen's Advisory Committee (CDCAC) for consideration and recommendations, and, lastly, to the Mayor and Common Council for final approval. All approved projects must be submitted to HUD for approval by late-May. On February 3, 1994, the Community Development Citizen Advisory Committee reviewed the proposed Program Mix and Program Objectives. After discussion, the Committee took action recommending to the Mayor and Common Council approval of the Program Mix and Program Objectives as submitted. RECOMMENDATION Based on the foregoing, staff recommends adoption of the form motion. U otm KENNETH J. HENDERSON, Executive Director Development Department ----------------------------------------------------------------------------------------------------------- KJH:LML:mn1:cdbgfund.cdc COMMISSION MEETING AGENDA MEETING DATE: 02/07/1994 Agenda Item Number: S_