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Home My WebLink AboutR51- Economic Development ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: RONALD E.WINKLER SUBJECT: FIFTH YEAR ACTION PLAN- Development Director FIRST PUBLIC HEARING- ORIG INA r CONSOLIDATED ANNUAL DATE: September 9, 1998 L PERFORMANCE AND EVALUATION REPORT(CAPER) ------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On August 17, 1998,the Mayor and Common Council set September 21, 1998 at 2:00 p.m.,as the date and time for the first Public Hearing to begin the Consolidated Plan Process for the Fifth Year Action Plan, solicit citizen comments on community needs, and review and adopt the Consolidated Annual Performance and Evaluation Report (CAPER) for FY 1997-1998. (Synopsis Continued to Next Page) ------------------------------------------------------------------------------------------------------------------------------------------- OPEN PUBLIC HEARING CLOSE PUBLIC HEARING Recommended Motion(s): (Mayor and Common Council) MOTION A: That the Mayor and Common Council begin the Fifth Year Action Plan Process,accept comments and views of residents,public agencies and other interested parties on community needs and on the Draft Consolidated Annual Performance and Evaluation Report for 1997-1998 which contains annual performance reports for the Community Development Block Grant,HOME Investment Partnership Act and Emergency Shelter Grant Programs;and authorize staff to submit the final report to the U.S. Department of Housing and Urban Development for review and approval. (Motion(s)Continued to Next Page) --------------•----------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Ronald E.Winkler/Doris A.Daniels Phone: 5081 Project Area(s): N/A Ward(s): N/A Supporting Data Attached:El Staff Report El Resolution(s) ❑ Agreement(s)/Contract(s) ❑ Map(s)❑Ltr/Memo FUNDING REQUIREMENTS: Amount: $ N/A Source: FY98/99 Line of Credit Budget Authority: Approved SIGNATURE: GARY OSDEL,Executive irector ONALD WINKLER,Director Eco mic Development Agenq Development ------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: --------------------------------------------------------- REW:DAD:lag:09-21-Ol.cdc COMMISSION MEETING AGENDA /®/0,5AT ��eri REQUEST FOR COMMISSION/COUNCIL ACTION Fifth Year Action Plan September 9, 1998 Page Number -2- ------------------------------------------------------------------------------------------------------------------------ Synopsis of Previous Commission/Council/Committee Action(s) (Continued): On August 31, 1998, the Community Development Citizen Advisory Council (CDCAC) approved the schedule for the Fifth Year Action Plan which included the September 21, 1998 public hearing to solicit citizen comments, and to review and adopt the draft CAPER for FY1997-1998. Recommended Motion(s) Continued: (Mayor and Common Council) MOTION B: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE CONSOLIDATED ANNUAL REPORT IN CONNECTION WITH IMPLEMENTING FEDERAL GRANT PROGRAMS ------------------------------------------------------------------------------------------------------------------ REW:DAD:Iag:09-21-0I.cdc COMMISSION MEETING AGENDA MEETING DATE:09/21/1998 Agenda Item Number: r , ECONOMIC DEVELOPMENT AGENCY STAFF REPORT -----------•------------------------------------------------------------------------------------------------------- Fifth Year Action Plan: First Public Hearing— Consolidated Annual Performance and Evaluation Report (CAPER) BACKGF:OUND On May 11, 1998, the Mayor and Common Council approved and adopted the Community Development Citizen Advisory Committee (CDCAC) recommendations for FY 1998-1999 for the Community Development Block Grant (CDBG), HOME Investment Partnership Act (HOME) and Emergency Shelter Grant (ESG) funded objectives in the Fourth Year Action Plan. Authorization was given to allow the Plan to be submitted to the U.S. Department of Housing and Urban Development (HUD) in May 1998. HUD approval of the Plan and the 1998-1999 Program Year funding was obtained in July 1998. On July 1, 1998, planning began for the Fifth Year Action Plan of the Consolidated Plan 1995- 1999. The Consolidated Plan, first adopted in 1995, reduces the burden of administering certain housing and community development programs by combining the planning and application requirements for federal funding into a single strategy. For the City of San Bernardino, this strategy integrates the Comprehensive Housing Affordability Strategy, the CDBG Final Statement, the HOME Program Description and the ESG Program Description. Each year of the implementation of the Consolidated Plan, an annual assessment of the housing and community development needs must be conducted. The objective of the Action Plan is to prioritize, for annual funding purposes, the housing and community development needs identified in the five-year Consolidated Plan. As a part of the approval of funding, HUD requires that at least two public hearings on activities be conducted during each Program Year Cycle. The City has traditionally held a public hearing at the time the Action Plan is adopted and, per the Citizen Participation Plan contained in the 1995- 1999 Consolidated Plan, for the review of the Consolidated Annual Performance and Evaluation Report (CAPER). The CAPER is a summary of all activities funded under CDBG, HOME and ESG and a financial statement on the level of expenditures that occurred between July 1, 1997 and June 30, 1998. It is important to note that the CAPER reflects expenditures that have occurred within the specified time period noted above and not what have actually been expended to date. Therefore, some projects and activities that are not noted as fully expended during the reporting period, may in fact be complete at this time. ------------------------------------------------------------------------------------------------------------------ REW:DAD:1ag:09-21-0Lcdc COMMISSION MEETING AGENDA MEETING DATE:09/21/1998 Agenda Item Number: Economic Development Agency Staff Report Fifth Year Action Plan September 9, 1998 Page Number-2- ------------------------------------------------------------------------------------------------------------------- Pursuant l:o HUD regulations, citizens were notified of this first public hearing through display ads placed in three local newspapers. Recommendation Based on the above, staff recommends adoption of the form motion and attached resolution. RONALD t. WINKLER, Director Development Department ------------------------------------------------------------------------------------------------------------------ REW:DAD:lag:09-21-0I.cdc COMMISSION MEETING AGENDA MEETING DATE:09/21/1998 Agenda Item Number: k 3y COPY CITY OF SAN BERNARDINO CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT July 1, 1997 — June 30, 1998 DRAFT Prepared By: C i ty of San Bernardino ECONOMIC DEVELOPMENT AGENCY Development Department 201 North "E" Street, Suite 301 San Bernardino, CA 92401-1507 TABLE OF CONTENTS I. NARRATIVE STATEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1 A. Assessment of Five Year Goals and Objectives . . . . . . . . . . . . . . . . . . . Page 1 B. Affirmatively Furthering Fair Housing. . . . . . . . . . . . . . . . . . . . . . . . . . Page 6 C. Affordable Housing Page 7 D. Continuum of Care Narrative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..Page 7 E. Other Considerations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 7 F. Leveraging Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 8 G. Citizen Comments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 9 H. Self Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10 II. THE COMMUNITY DEVELOPOMENT BLOCK GRANT (CDBG) PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 11 III. THE HOME PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 12 IV. THE EMERGENCY SHELTER GRANT (ESG) PROGRAM. . . . . Page 13 V. PUBLIC PARTICIPATION REQUIREMENTS. . . . . . . . . . . . . . . . Page 14 Table I: SUMMARY OF CDBG, HOME AND ESG FUNDING APPENDIX A: List of Projects APPENDIX B: MAPS APPENDIX C: Citizen Comments APPENDIX D: HOME Match Report APPENDIX E: MBE and WBE Participation APPENDIX F: N lBE/WBE Outreach Report i NARRATIVE STATEMENT A. ASSESSMENT OF FIVE-YEAR GOALS AND OBJECTIVES Housing and Community Development Strategic Plan Objectives The Strategic Plan in the Consolidated Plan for Fiscal Years 1995-1999 identified four "needs" and five high priority areas to pursue. The four"needs" are overpayment/cost burden., physical inadequacies/condition, homeownership and homelessness. The five high priority needs served as a strategic vision or long term plan to deal with the housing and community development needs of the City. The five high priority needs are detailed below along with accomplishments to indicate how activities in FY 97-98 have addressed these objectives. High Priority #1: Preservation and Rehabilitation of the "Affordable"Housing Stock, Emphasizing Single Family Units for Large Families. The City has provided housing rehabilitation programs for owner-occupied homes, as well as undertaken proactive code enforcement, to maintain the supply of decent, safe, affordable units. The following list details the housing activities for both single family detached and mobile homes- Goals/Activity Goals Accomplishments Strategy/Goal #1: 100 units per year 151 units Preservation and Rehabilitation of Single Family Units Activity 1.1 Single Family Rehabilitation Program 19 units Activity 1.2 Handiworker Program 55 units Activity 1.3 Mobile Home Inspection/Rehabilitation Program 58 units Activity 1.4 Code Enforcement Program Activity 1.5 Mobile Home Park Rehabilitation (HOME funds) N/A - Rehab of common areas Activity 1.6 Mobilehome Park Purchase (HOME funds) 19 units — to assure long-term space rent affordability High .Priority #2:Assist Low-Income First Time Homebuyers With The Purchase of Affordable Permanent Housing. The City has found that low-income families cannot afford the median priced home in the City even with today's record low interest rates. In addition, many moderate-income families have difficulty saving enough for a down payment and closing costs. A major problem in the City is overpayment (Cost Burden/Affordability). Almost thirty-seven 1 percent (37%) of the City's households were paying more than thirty percent (30%) of their income on housing. Cost burden is defined as households paying more than 30% of their incomes on housing. The housing programs listed below help low-income rental families to become homeowners. Goals/Activity Goals Accomplishments Strategy/Goal #2 Assist First Time 15 units Existing Single Family Homes 67 units Homebuyers per year Activity 2.1 Acquisition, Rehabilitation, Resale Program 67 units Assist Households 35 units per year 253 units To Receive Finan- cial Counseling Activity 2.2 Mortgage Assistance Program (HOME funds) 53 units Activity 2.3 The Officer Next Door Program - A new program that features a 50%discount off the market price of HUD owned properties and a$100 down payment plus normal pre-paid closing costs,with FHA insured financing. Acquisition, Rehabilitation, Resale Program 200 units First Time Homebuyers 10 units per year 0* New Single Family Construction Activity 2.4 *No new construction was Built with CDBG funds; Set Aside funds were used High Priority#3: Provide Rental Assistance to Very Low-Income Households. The City supports providing rental assistance to very low- and low-income households by encouraging additional affordable housing opportunities for families who desperately need it. The City utilizes RDA funds and relies upon the County Public Housing Authority to assist in this regard. The Mobile Home Space Rent Subsidy and the Rent/Deposit Guarantee Programs both serve as a"safety net" to prevent displacement of persons who are experiencing temporary financial difficulty and are"in danger"of becoming homeless. It also assists homeless persons to obtain rental housing by helping to pay the required deposit. The Public Housing Authority of San Bernardino County owns and manages public housing units for occupancy by very low income families who pay no more than 30 percent of their monthly income for rent. The EDA works closely with the Housing Authority and refers prospective tenants to the Housing Authority. 2 Goals/Activity Goals Accomplishments Strategy/Goal #3 Provide Rental 200; 50 Rent/Deposit Guarantee, 2938 units Assistance 200 Mobile Home Residents Activity 3.1 Mobile Home Space Rent Subsidy (RDA funds) 200 units Activity 3.2 Rent/Deposit Guarantee Program (RDA Funds) 10 units Activity 3.3 Section 8 Voucher Program 1930 units (Public Housing Authority) Activity 3.4 Public Housing Units 798 units (Public Housing Authority) High Priority #4:Assist Homeless and.Special Needs Persons with .Supportive Services Programs. The City utilizes Emergency Shelter Grant 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 295 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 the transition to permanent housing and independent living. The four agencies funded by ESG provide supportive services, such as food provision, employment, transportation, medical, etc. which help the homeless to return to the mainstream. Goals/Activity Goals Accomplishments Strategy/Goal #4 Provide Homeless Services Activity 4.1 3000 Shelter households 3,540 Activity 4.2 5 Transitional units 5 Activity 4.3 400 battered women 400 and children High Priority #5: Expansion of"Affordable"Housing Opportunities for Low-Income Large Families Primarily through New Construction. According to State redevelopment law, 20% of the tax increment generated from redevelopment project areas is to be set aside for low- and moderate-income housing 3 assistance programs.. The City's long range plan was to incorporate use of Set-Aside funds for housing rehabilitation, rental assistance, new construction, homeless programs, and assistance of first time homebuyers. The Set Aside fund is currently very limited because of the down trend in property reassessment. As noted in the 1997-98 Consolidated Plan, Redevelopment Set Aside funds are utilized for current housing programs. These programs include: construction of new, multi-family housing units targeted for seniors; the provision of high quality housing on vacant unimproved infill sites within established neighborhoods, and the utilization of tax exempt bond financing and density bonuses. These programs also include changes in residential zoning to encourage the exploration of alternatives in the creation of affordable housing to serve the needs of the City's residents. As noted in the 1997-98 Consolidated Action Plan, tax exempt bond financing has been used to assist in the construction of 1,896 multiple family units. Goals/Activity Goals Accomplishments Strategy/Goal #5 5 Second Dwellings 409 single family units Activity 5.1 on single family lots; (Set Aside funds) Activity 5.2 50 new affordable single family detached units; Activity 5.3 10 infill housing units, Activity 5.4 24 handicapped-accessible 145 multiple family units apartments (conversions). (Set Aside funds) Non-Housing Community Objectives In the five year Consolidated Plan, the City identified several non-housing community objectives. The City of San Bernardino is committed to expanding economic opportunities for its residents. In addition to providing a suitable living environment with decent housing, the City wishes to utilize the CDBG program to encourage and support the development of a balanced, diverse community by expanding economic opportunities principally for persons of low- and moderate-income. Short and long term non-housing goals were indicated as follows: 1. The elimination of slum and blight. 2. The elimination of conditions which are detrimental to health, safety, and public welfare. 3. Job creation opportunities. 4. The expansion and improvement of the quality of community services. 5. Reduction in isolation of income groups within communities and geographical areas. 6. The restoration and preservation of historic, architectural and aesthetic buildings. 7. Alleviation of physical and economic distress. 8. Conservation of the Nation's scarce energy resources. 4 9. Provision of administrative capacity to implement the City's CDBG program and fair housing services. Strategies for Increasing Economic Development The five year Consolidated Plan indicates that the City of San Bernardino suffers from a combination of several factors that weakens its economic base. These included (1) retirees with lower incomes than other more affluent communities whose incomes do not keep pace with inflation, (2) aid recipients who more than likely see falling incomes given today's political climate, (3)the significant impact resulting from the closure of Norton Air Force Base, and (4) the impact of the commuter population on the City's growth and expansion. In prioritizing issues, the City recognized that it had to turn its focus towards activities that were more likely to foster economic growth. This was done by encouraging the diversity, prosperity and expansion of those basic activities with growth potential, including housing programs that encourage workers to live and spend their resources within the community and jobs that provide good salaries ($10-12.00 per hour) to allow them to live within the community. Housing and economic development programs such as these include the Office Next Door, Employment Linkage, Joint Partnership Training (JTPA) programs, other employment programs and most of the housing programs listed previously. The Office of Business Development has worked aggressively to encourage business retention and expansion, (i.e. Price Costco, 103 jobs) and business attraction. New businesses attracted to the City include Cott Beverage Company (50 new jobs), G. E. Capital Mortgage Company (approximately 400 new jobs— 1000 jobs total), and Mc Lane Distributing Company (400jobs). RMF-Related Metal Fabrications located to the City from Riverside and brought 60 new jobs. Industrial companies attracted to the City include Aztec Concrete Products (130 jobs), Almen Furniture (50 jobs), Grejor Furniture (40 jobs), and Garner Holt (65 new jobs in robotics). These companies will provide hundreds of jobs for persons from the local community in the technical and managerial salary ranges. The City has formed a partnership with local educational institutions to promote economic development. These activities include vocational training programs at San Bernardino Valley College and California State University at San Bernardino (CSUSB). CSUSB is assisting G.E. Capital Mortgage to retrain, train and restructure its employees at the new headquarters in the City. San Bernardino Employment and Training Agency (SBE'TA) is using JTPA funds working with Santa Barbara Aerospace to repair wide bodied jets in the City. The facility in the City is a one-of-a-kind repair center on the West Coast. Santa Barbara Aerospace is transitioning its operations from Santa Barbara to San Bernardino. In addition, entry level trainees at San Bernardino Valley College 5 receive on the job training (OJT) and work with sheet metal. In this manner, they are able to enter into the job force. SBETA runs the City's Employment Linkage Program that helps City residents train in new jobs and pays one-half of their salary while they learn. The Company is then paid $1,000 per employee who remains on the job after one year. B AFFIRMATIVELY FURTHER FAIR HOUSING The City retained a consultant to affirmatively further fair housing. The consultant utilized a literature search, surveys, interviews, Home Mortgage Disclosure ACT (HMDA) data, and additional information and statistical data from City, County, State and Federal Departments. The information gathered was on housing discrimination, fair housing knowledge, condition of existing housing and other information that would help housing policy makers to identify problem areas. The impediments to fair housing identified in the analysis reflected discrimination and housing issues. The overall conclusion was that today's discrimination acts have become deceptive and sophisticated. Since the action is covert rather than overt, only trained professionals can identify and recognize violations if the Fair Housing Act. The discrimination issues included the following: - lack of understanding of fair housing laws regarding differential treatment, - occupancy limitations; - lack of tenant screening policy, - high minority neighborhood and concentration causes low property value; - buyer refusal, - lenders HMDA data tracking; - tracking lender's housing loans. The housing issues included the following: - affordable housing—job/housing to relationship, - neighborhood safety, - neighborhood deterioration; - transportation; - quality schools. The City paid ADF Networking Consultancy, Inc. $25,000 to contract with an agency to mitigate impediments to fair housing in San Bernardino. The services provided 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 included the public of adult and high school age, property owners, mobile home park owners/residents, realtors, municipal staff, lenders and staff of classified newspaper ad departments. It included a review of newspapers for discriminatory practices in ads. Outreach was conducted through the 6 mass media of radio, television, newspapers, public appearances and brochure distribution. Enforcement included counseling individuals, accepting complaints, implementing and maintaining a daily "hotline" service and a 24-hour call back "warm line", and testing for discrimination on the bona fide complaints. C. AFFORDABLE HOUSING See high priority strategies discussed in section entitled "Housing and Community Development Needs." The moderate- and low- income housing needs were addressed in the Standard Rehabilitation, the Mortgage Assistance, the Officer Next Door, and the Acquisition, Rehabilitation and Resale Programs. Needs of low and extremely low income rental and homeownership were addressed in the Rent/Deposit Guarantee, Handiworker, Mobile Home Inspection/Rehabilitation Program, Code Enforcement, Mobile Home Space Subsidies Program, Section 8, and Public Housing Authority Units. The Emergency Shelter, Battered Women and Children, and Transitional Housing also addressed the needs of low and extremely-low residents. The City funded a program to address accessibility issues on public streets, including vision and deaf services as needed, and in public buildings. The program Sidewalk Improvements ($190,000) included curb cuts, ramps, etc., to make areas throughout the city accessible to special needs populations (e.g. mobility, visual and auditory impairments). D. CONTINUUM OF CARE See section entitled High Priority#4 — Assist Homeless and Special Needs Persons With Supportive Services Programs. E. OTHER CONSIDERATIONS The City listed the following considerations in the five year plan: 1. Overcoming Barriers to Affordable Housing— The City has pursued a course of action which included: (a) maintain a dialogue with developers and citizens involved in housing projects to assist the City in making the best planning, infrastructure and development decisions; (b) solicit for- and non-profit entities to form housing development and rehabilitation partnerships; and (c) continue to increase public awareness of the need for affordable housing throughout the City. In addition, the City is aggressing pursing its economic development strategy to attract and increase the number of technical and managerial range positions. 2. Lead Based Paint Reduction - The City provides referrals to and works cooperatively with the County's Lead Based Paint Removal Program to 7 coordinate efforts to reduce lead based paint hazards and to identify children under age six through testing. The County received $219,200 in Round I this Fiscal Year from the State Department of Community Services and Development. Since 1995, $624,010 has been allocated from Round III for lead based paint removal. The County's contractor either removes or encapsulates the lead based paint. 3. Anti Poverty Strategy - The City has continued the Employment Linkage and JTPA Programs. (See Economic Development Strategies discussed previously.) 4. Institutional Structure/Coordination— The City has coordinated with agencies and Departments to design and implement such programs as Code Enforcement to remove slum and blight. The City funds public service agencies that provide information and referral to residents. (See ESG Programs for the Homeless.) Furthermore, housing programs will assist low- and moderate-income persons to improve their neighborhoods. (See section on Housing and Community Development Strategies.) 5. Public Housing Resident Initiatives— The Housing Authority owns over 3,000 units of public housing in the County for occupancy by very low-income families who pay no more than 30 percent of their monthly income for rent. (See Housing Section.) 6. Persons with Physical/Developmental Disabilities Alcohol or Other Drug Addictions as well as AIDS/HIV and Other Related Diseases —The City utilizes established resources within the County and State structure to assist persons with these illnesses. The City funds the Salvation Army that receives funds from and refers residents to the County's HOPWA funded services. The City also funds a suicide crisis intervention program by Family Service Agency, an outreach counseling program for drug and gang intervention by Los Padrinos, services to the mentally-ill and mentally-ill homeless, as well as independent living skills, by County Behavioral Health, and drug abuse services. 7. Suitability of Existing Units for Special Needs Populations—The City supports programs that serve targeted populations, such as deaf services for the Inland Empire Deaf Services and Easter Seal Society head injury services. F. LEVERAGING RESOURCES There were"other" public and private resources that address needs identified in the plan. The budgets of the subrecipients selected by the City indicate that additional funding to serve the needs of San Bernardino residents would be derived from other sources including: 8 I. Department of Runaway/Homeless Youth 2. County Youth Diversion Fund 3. County Probation 4. United Way 5. Department of Justice 6. Office of Aging 7. Corporation for National Service 8. ROTC 9. Catholic Charities 10. Local fundraising efforts The agencies funded by the ESG Program meet the MATCH requirement through utilization of volunteer in-kind contributions and funds from other local, state and federal programs. The City utilizes Redevelopment Set Aside funds to provide homeless prevention services. The Salvation Army has indicated that the City receives HOPWA funding assistance via the County of San Bernardino's share of the Riverside/San Bernardino joint allocation. The County Department of Public Health, which serves the City's population, will assist the ten (10) aids cases identified in 1995. Additionally, the City budgeted in Redevelopment Set Aside funds for the following MATCH activities in the HOME Program: Mobile Home Space Rent /Subsidy - Homebuyer's Down Payment Assistance Program (MAP) ??Mike CDBG, HOME and ESG were the Federal funds received by the City for FY1997-98. However, a review of program income indicates that the following totaling $84,798 was repaid: - Single Family Rehab loan $31,483 - UDAG Repayment $50,000 - Lease income (billboard) $ 2,200 - Miscellaneous $ 1,115 Loans outstanding and principal balance owed at the end of the reporting period in the amount of$15,096,162 included the following: - Float Loan (Harris) $3,150,000 - • Section 108 (Harris) $7,035,000 - Section 108 (New Frontier) $ 470,000 Housing Rehab Loan Portfolio $4,441,162 G. CITIZEN COMMENTS To date no comments have been received. Those received before the document is forwarded to HUD will be included in Appendix C. 9 H. SELF-EVALUATION The overall goal of the community planning and development programs included in the Consolidated Plan is to develop viable communities by providing decent housing and a suitable living environment and by expanding economic opportunities principally for low- and moderate-income persons. The City of San Bernardino is one of the most distressed cities in the United States. It has been disproportionately impacted by the economic recession due to the closure of the Norton Air Force Base (10,000 jobs lost) and the loss of other major employers. The City has higher unemployment than the region, state and nation. Close to 23 percent of the population is at or below the poverty level. Approximately 50 percent of the population receive some form of government assistance and approximately 50 percent of the population live in rental housing. These alarming facts have contributed to the cancer of blight throughout the community. The number of foreclosures continues to escalate. With 45% of the homes in the City built prior to 1950, many of the homes are old and in need of serious repairs. Every month 40 to 100 foreclosed houses go back to HUD. There are hundreds of boarded and/or vacant houses in the City with code violations. Absentee landlords own 55% of the rental housing. The activities and strategies are making an impact on identified need. All of 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 these problem properties to a high quality standard. The EDA has partnered with approved contractor/developer 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. The loan guarantee provides the needed security for private lending institutions to loan on very dilapidated houses in tough selling markets and also enables the contractors to obtain better loan terms. The monthly payments are "affordable" in that they are just above the current rent payments. Other indicators to best describe the results would be the Mortgage Assistance Program that is enabling the first time homebuyer to purchase a rehabilitated unit in the City's revitalization area. The EDA provides a down payment and closing costs silent loan for the homebuyer. That the housing strategy is impacting on identified need is further indicated by the comprehensive homebuyer seminars that teach the process of homeownership, personal 10 financed, code enforcement, security and neighborhood safety in support of the ARR Program. Eight mobile home parks have been purchased using HOME funds. Needed common area improvements are being made to improve housing for low-income mobile home owners. There must be continued economic development and the future attraction of new businesses that pay technical and managerial salaries. The City must continue to replace the 10,000 jobs that were lost by the closure of Norton Air Force Base. Otherwise, this may be a possible barrier to the realization of the strategies if the jobs within the City continue to pay minimum and just above minimum wage. A review of the status of capital improvement projects funded by CDBG indicates that they should be completed in a shorter time period. The streamlining of Davis Bacon requirements should help this process. Actual expenditures do not differ substantially from letter of credit disbursements. However, due to the length of time required to complete capital improvement projects, the grant disbursements appear not to be timely. Despite the concerns mentioned above, the identified strategies and activities are meeting the needs of the citizens. The City is currently in a state of transition, rebirth and rejuvenation. The newly elected Mayor, Judith Valles, is engaging citizens in the development of a compelling vision and action plan. She has adopted the motto "Together We Can" to bring about a significant cultural shift in the thinking of the residents. The public and private sector has joined together to reflect this new and growing attitude for the City. In addition, the City is applying for Empowerment Zone designation that would provide the City with the tools to greatly improve the economic outlook of the City. II. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) A. See the discussion of the high priorities in the section entitled "Housing and Community Development Needs." This section includes a discussion of the relationship of the use of CDBG funds to the priorities, needs, goals, and specific objectives identified in the Consolidated Plan, including the extent to which CDBG funds were distributed among different housing categories of housing need identified in the Consolidated Plan. For maps of distribution of low-to moderate- income residents, and different population groups, along with households and families assisted with housing (CDBG, HOME, ESG), see Appendix B. B. No changes were made in program objectives. C. The City has consistently carried out the planned actions described in the action plan. As previously stated, the mission of the City is to maintain, improve and develop quality neighborhoods and housing opportunities throughout the city. The City has identified four"needs" and five priority areas to pursue. The four 11 "needs" are overpayment/cost burden, physical inadequacies/condition, homeownership and homelessness. 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 five priority areas. (See the discussion regarding CDBG funding in the high priorities, HOME and ESG, as well as Table I and Appendix A— List of Projects.) The City has pursued all resources it indicated it would pursue; provided requested certifications of consistency with HUD programs, in a fair and impartial manner, for which the City said it would support application by other entities, and did not hinder Consolidated Plan implementation by action or willful action. D. The grantee funds have been used exclusively for the three national objectives. E. No activities specified for the program year involved acquisition, rehabilitation or demolition of occupied real property. F. During the program year, no economic development activities were undertaken where jobs were made available to low- or moderate-income persons but were not taken by them. During the program year, no activities were undertaken which served a limited clientele not falling within one of the categories of presumed limited clientele low- and moderate-income benefit. Activities that generated program income are discussed in "Leveraging Resources" section. A list is provided in the Financial Summary Report. For Rehabilitation Programs with units completed during the year, see "Housing and Community Development Needs" section. The City does not have a HUD-approved neighborhood revitalization strategy. III. THE HOME PROGRAM HOME funds were distributed among the following different categories of housing needs identified in the approved Consolidated Plan. (For a summary of the projects and amounts funded by HOME, see Table I - Summary. For additional information on each project, see Appendix A— List of Projects.) A. HOME funds were used for the following housing activities: -Mobile Home Park Purchase ($574,500- See High Priority#1); -Mobile Home Rehabilitation Program ($230,250 — See High Priority 41). Common area improvements were made. 12 -Mortgage Assistance Program— ($500,000 —to assist first time homebuyers with the purchase of rehabilitated single-family homes. (See High Priority 92.) B. HOME Match Report (HUD 4107-A is attached for the Program Year July 1, 1997 through June 30, 1998. (See Appendix D.) C. Part III of HUD Form 4107 is attached to report contracts and subcontracts with Minority Business Enterprises (MBEs) and Women's Business Enterprises (WBEs). (See Appendix E.) D. The results of on-site inspections of affordable rental housing assisted under HOME and an assessment of the City's affirmative marketing actions and outreach to minority and women owned businesses are attached. (See Appendix F.) IV. THE EMERGENCY SHELTER GRANT (ESG) PROGRAM A. During FY 1997-98, the City utilized $105,000 in ESG funds to fund four non-profit agencies to provide a variety of homeless service activities. The four agencies were Salvation Army, Option House, Frazee Community Center and Mary's Mercy Center. The services provided included shelter rehabilitation, essential services (food provision, transportation, employment, medical, etc.), homeless prevention, operations and agency administration. These agencies had shown that they have the ability to provide delivery of high quality services, satisfy the HUD ESG Matching fund requirements (dollar to dollar), and address identified community "needs" in conjunction with this assistance. A description of the extent to which activities supported directly with ESG funds addressed homeless and homeless prevention goals, objectives, and priorities established in the Consolidated Plan is discussed in High Priority 94 and in the Continuum of Care sections. For a summary of the projects and amounts funded by CDBG, see Table I - Summary. For additional information on each project, see Appendix A— List of Projects. B. The sources of funds used to meet the match requirements of the ESG Program are discussed in the section entitled "Leveraging Resources." The types of funds used to meet the match requirements totaled $447,049 and were as follows: FEMA $31,000 CDBG $101,690 United Way $105,265 OCJP $100,000 Donations/thrift $98,294 13 City of Highland $5,800 Fees $5,000 V. PUBLIC PARTICIPATION REQUIREMENTS The; City has followed the public participation requirements established by HUD. A public hearing was held on September 21, 1998 by the Mayor and Common Council (Community Development Commission) to receive comments on the CAPER for FY 1997-98. Display ads were placed in three local newspapers beginning September 5, 1998. The newspapers were the Sun, the Inland Empire Hispanic News and The Precinct Reporter. These newspaper have wide circulation within the general, Hispanic and Black communities. Additional information regarding the public hearing and the CDBG Schedule for the Fifth Year Action Plan were sent to all interested parties, including presently funded agencies, City and County Departments with currently funded projects, agencies/departments that were not funded this year or last: year, and all persons who had expressed an interest in receiving this information. The CAPER for FY1997-98 and all IDIS and financial reports, and other data (i.e. maps and tables) required by HUD will be available to the public during the fifteen day comment period at the Economic Development Agency office. This was advertised in both the newspaper display ad and in the CDBG Schedule information mailed to the public. 14 TABLE I - SUMMARY OF CDBG, HOME AND ESG FUNDING O O O O O O O O O O O O O O O O O --+ O O O O O O O O O O O O O O O O O 00 O O O O O O O O O O O O O O O O O O\ 00 O\ o0 o0 o0 00 o0 00 00 o0 00 o0 o0 00 o0 00 00 (0 Yz . :3:�50. :•:>,';rye: PQ m R1 � W PA fYl m W W m W PQ U U U U U U U U U U U U U U U U U U Olt ch r � O y, 00 In. Cd Cd oo CA c 0 co cd C4 O. Oq VN U a o Cn U5 O Q v y G 0 v� t� >� � o o O w " � v �n O W a v� A U pq co PQ M en C/I y :. vI i. 4. va t>P = G CD Cd s>uisF%. f3. O O Q s o O .0 t� O �' C/� ' U y 4. oo 00 Co N M 00 O� — N V1 00 O N M v1 to :» ;;•. O O O O O O .--i —4 "-1 V" N N N N N N N N t i i ij ' N O O O O O O O O O O O O O %O O %.o Os O O O O N O O O O O O O O O %O O -- O O oo O O O O O O v O 0 %0 00 00 00 00 00 00 00 Or� 00 O O 00 N [- N Nf M M co Cd 03 Cd W LQ PQ �i �1 GA GU fYl GA Gil PQ W R-1 L�1 Cpl �A GA CA PU A A A A A A A A A A A A A A A A A A A i U U U U U U U U U U U U U U U U U U U a H 0 w tr Q+ as o C'� A y o do - o ao�i td �, a 'C) En 1,4 Cd q S a x as �+ EH A U x S x cn u 1>51 c >+ v� •° � o � aq ° � � � i U 3 U �', ° ° a�i E 0 � a°i � U a � rn U `p 0 v A > o p >, U .o x 3 w o o cA 03 >, Q •4= U U U W O �a U U W U U w .--� M d' N �p [� 00 O\ O •--� N M tI1 00 ON Ocn M M M M M M M M O O O O N V-4 r4 .•-4 �., ..., P-4 .-r �-•� •--4 �-•� N N N N N N N N t i 4 L i i i r r r r r c� r r � r r r r � r r r r r rn rn oN rn o% O` o� ON O` O` rn o% a` O` ON vN Cl O O O O O 00 kn O N O O O O O O O O U1 O O O O O O t- to Wn 00 O Co w O N to O to N CO N N N kn en •--� N •--� N �n � N �t tn O r- N tn A A A A A A A A A A A A A A A 0 0 0 0 r U U U U U U U U U U U U U U U x x x x C% V � W tb en rn o a U o y p; a O w w .as N co .a Q, v o o A, '3 N o o z~ a y C . �%0 b E > c0qs a o co b to a cr o � 5i � o c a. o o o a" .c° O o � : 9 p x W to 2 0 w � b L) .°A o A p o 0 q Q PA w w w Z a � w U W U U U U U U U 0 U d) (1) 4) 41) 0 0 CA .� Q C v Q Q Q Q Q t, E V U E E E o 0 0 0 0 0 0 •2 ta CA a U N o o a�i a�i a>i A o 2 Q - cn x ° o 0 o 0 0 0 W U U w U W O rn V U V W W W W W W N M V• %O t- ON M 9T Ln O� O .•-i N O — N M N N N N M M O O O O O O O N N N N N N N N N N N N M M M 1 1 -T --T � i L CA C% ON O\ ON O• O\ O� O� O� O\ O� O� O� O` a\ as ON O` C) 0 0 0 0 0 � N O N N N O� N W W W W W U O •� o .W W Q Q O q a� x 0 �� o a� a� U O Cd ho a+ o 0 0 0 cn a a a a W W W W W w O% ON ON O. 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AMM � \I I 1 ��\\\ t INI RX a \\•: \ME?, cn INER \\\\ 3 ��\l\\\\\\ IN IA\\ \\ APPENDIX C: CITIZEN COMMENTS APPENDIX D: HOME MATCH REPORT APPENDIX E: MBE AND WBE PARTICIPATION APPENDIX F: MBE/WBE OUTREACH REPORT 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE CONSOLIDATED ANNUAL REPORT IN 3 CONNECTION WITH IMPLEMENTING FEDERAL GRANT PROGRAMS. 4 WHEREAS, the City of San Bernardino, California(the "City"), is a municipal corporation 5 and a charter city duly created and existing pursuant to the Constitution and the laws of the State of 6 California; and 7 WHEREAS, the Community Development Commission of the City of San Bernardino (the 8 "Commission") on behalf of the Redevelopment Agency of the City of San Bernardino (the 9 "Agency"),is a redevelopment agency,a public body,corporate and politic of the State of California, 10 organized and existing pursuant to the Community Redevelopment Law (Part I of Division 24) 11 commencing with Section 33000 of the Health and Safety Code of the State of California (the 12 "Act"); and 13 WHEREAS,the City has previously initiated certain actions in connection with the pursuit 14 and award of certain federal grant moneys from the United States Department of Housing and Urban 15 Development ("HUD"), including Community Development Block Grant, HOME Investment 16 Partnership Act,and Emergency Shelter Act funds,for the purposes of assisting and providing public 17 services, rehabilitation, housing, homeless and capital improvement projects; and 18 WHEREAS, the City, having held a duly noticed public hearing in connection with the 19 consideration of the Consolidated Annual Performance and Evaluation Report (CAPER), hereby 20 deems it desirable to approve the CAPER as attached hereto as Exhibit "A" and to authorize its 21 submission to HUD. 22 NOW THEREFORE,BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL 23 OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: 24 SECTION 1. The Mayor and Common Council (the "Council") hereby find and determine 25 that the preparation of a CAPER is in the best interest of the residents of the City of San Bernardino 26 and hereby approves the CAPER, a copy of which is attached hereto and as Exhibit "A" and 27 incorporated herein by this reference. 28 /// HTC/ea[FedGrant.Res] 1 /� /�/� Q� September 17. 1908 I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE CONSOLIDATED ANNUAL REPORT IN 2 CONNECTION WITH IMPLEMENTING FEDERAL GRANT PROGRAMS. 3 SECTION 2. The Council hereby authorizes the submission of the CAPER to HUD and 4 further directs the Mayor to take such action and execute such documents on behalf of the City as 5 may be deemed appropriate in order to submit the CAPER on behalf of the City. 6 SECTION 3. The findings and determinations herein shall be final and conclusive. 7 8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 9 Common Council of the City of San Bernardino at a joint regular meeting thereof, held on the 10 day of , 1998, by the following vote, to wit: COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 11 ESTRADA 12 LIEN 13 ARIAS 14 SCHNETZ 15 DEVLIN 16 ANDERSON 17 MILLER 18 19 City Clerk 20 21 The foregoing Resolution is hereby approved this day of ' 1998. 22 23 Judith Valles, Mayor 24 City of San Bernardino Approved as to form 25 And Legal Content: 26 ( ' �,- �� E By: � 27 MES F. PENMAN, (t">ty Attorney 28 ./ HTC/ea[FedGrant.Res] 2 September 17, 1993 EXHIBIT "A " ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: RONAI,D E. WINKLER,Director SUBJECT: SETTING FIRST PUBLIC HEARING- Development Department FIFTH YEAR ACTION PLAN DATE: August 12, 1998 - - •---------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Counci/Committee Action(s): - ------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Mayor and Common Council establish September 21, 1998,at 2:00 p.m.,as the date and time for the first public hearing on the Fifth Year Action Plan for the purpose of soliciting citizen comments on community needs for 1999/2000 fiscal year funding. ----------------------------------------------------------------------------------------------------------- Contact Person(s): Ronald E.Winkler/Doris A Daniels Phone: 5081 Project Area(s): City Wide Ward(s): One-Seven Supporting Data Attached:O Staff Report❑ Resolution(s) ❑ Agreement(s)/Contract(s)❑ Map(s)❑Ltr/Memo FUNDING REQUIREMENTS: Amount: $N/A Source: CDBG Administration Budget Authority: 1998/1999 SIGNATURE: onald F. W' ler, Director Development Department ------------------------------------------ --------------------------------------------------------------- Commission/Council Notes: --------------------------------- -------------------------- - - - - - - - - --------------- ,W:DADAnt:123 COMMISSION MEETING AGENDA ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------- Setting First Public Hearing—Fifth Year Action Plan BACKGROUND As a requirement to receive federal funds such as, Community Development Block Grant, Home Investment Partnership Act and the Emergency Shelter Grant, the City is required to hold at least two public hearings each fiscal year. RECOMMENDATION Based on the above, it is necessary and appropriate to hold a public hearing to solicit public comments on the community needs for the 1999/2000 Fiscal Year, Fifth Year Action Plan. Staff recommends adoption of the form motion. 1. ///Z.,JZ/'1 RONALD V WINKLER, Director Development Department ---------------------------------------- ----------------------- - - -- - - :DADarnt:123 -- - - - ------------ REW COMMISSION MEETING AGENDA MEETING DATE:08/17/1998 Agenda Item Number: