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Home My WebLink AboutR25- Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco,Director SUBJECT: PUBLIC HEARING-CONSOLIDATED Housing&Community Development PLAN RELATED ITEMS— AMENDMENTS TO THE FIRST DATE: February 9, 1999_ ORIGINAL PLAN((CCD FOURTH AND HOME ACTION SyneD3i3 of Previous Commission/Council/Committee Action(s): The 1995-1999 Consolidated Plan was written in 1995 to assess the needs of the community. The Plan provided a framework with specific programs to address these needs. These needs include,but are not limited to,housing, employment,economic development,fair housing,etc. Each year an Annual Action Plan is written to outline the manner in which the city will continue to address the goals during the one-year funding cycle. The Council approved plan is forwarded to the Department of Housing and Urban Development(HUD)for their review and approval. HUD uses this document to determine whether the City has met its goals and objectives annually. Recommended Motion(sh OPEN PUBLIC HEARING CLOSE PUBLIC HEARING (Mayor and Common Council) MOTION: That the Mayor and Common Council approve the Amendments to the City's Consolidated Annual Action Plan(First through Fourth Year);authorize the reprogramming of funds for Community Development Block Grant(CDBG)and HOME funded projects and authorize the preparation and execution of standard CDBG and HOME contracts as specifically outlined in this report. Contact Person(s): G.Van Osdel/M.Pacheco/D.Daniels Phone: 5081 Project Area(s) Ward(s): All Supporting Data Attached: ❑O Staff Report O Resolution(s)0 Agreement(s)/Contract(s)[7 Map(s)[7 Letter/Memo FUNDING REQUIREMENTS Amount: $ 1,516,000 Source: CDBG/HOME Funds Budget Authority: See Table A,B& 1 SIGNATURE: /' Gary V A Osdel,Executive Dir for Maggie eco,Director Econilinic Development Age y Housing Community Development ---------------'—'— ---- '-------- -- Commission/Council Notes: MP:DAD:lag:99-02-15 PH Cons Plan COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT --------------------------------------------------------------------------------------------------------------------- Consolidated Plan Related Item• Hold Public Hearing for Amendments to the First through Fourth Year Action Plans BACKGROUND Community Development Block Grant Program(CDBG): There is presently approximately $1,516,000 in CDBG funds that are obligated to numerous public service and capital improvement projects from 1995 through 1998. For various reasons, construction has been delayed on some of these projects. Also,funds either have been obligated or completed projects have not been closed out and funds remain in the funding category. Since the need exists to increase funding for previously approved projects that have inadequate funds to accomplish the scope of work, it is proposed that the Consolidated Annual Action Plan for years First through Fourth be amended to close out completed projects and add funds to those active projects underway or stalled by the lack of funds. Furthermore, HUD has criticized the City for the slow rate of expending federal funds. This amendment would improve the expenditure rate by shifting the oldest funds from slow moving projects. The oldest funds could be expended within the next few months and before the FY 1999-2000 funds are awarded to the City. In FY 1997-98 the Community Development Citizen Advisory Committee (CDCAC)and the Council recommended a final list of projects for reallocation of CDBG funds. The list included both public service ($207,935) and capital improvement projects($1,014,600). Federal regulations mandate that only 15%of the total grant award may be utilized for public service projects. Since this cap has already been reached,no additional public service projects could be funded for the 1997-98 program year. Given the number of incomplete capital improvement projects for non-profit organizations, and insufficient funds to accomplish some of the City's community goals and objectives,the Mayor and staff recommended to the CDCAC, during February deliberations for the FY 1999-2000 funding,that CDBG ftmds should no longer be utilized to fund capital improvement projects for non-profit agencies. Instead, staff recommended that because CDBG resources are limited, emphasis should be placed on allocating resources to non-profits for direct services to community residents. The CDCAC concurred with this recommendation. Most of the City capital improvement projects for FY 1997-1998 were resubmitted for FY 1998-1999 and FY 1999-2000 and funding has been recommended for most of these projects. However, unforeseen projects have been encountered which include,but are not limited to, the need to install the traffic signal at Waterman Avenue, rehabilitation of the City's parking structure, demolition of Agency owned vacant four-plexes at Arden/Guthrie, and economic development funding for GE Capital Mortgage. Staff is therefore proposing CDBG funding for these projects as well as others. ------------------------------------------------------------------------------------------------------------------------------------- MP:DADaag:99-02-15 PH Cons Plan COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: Economic Development Agency Staff Report Consolidated Plan Related Items February 4, 1999 Page Number-3- --------------------------------------------------------------------------------------------------------------------- TABLE"A" 1995-1998 Previously Approved CDBG Projects Listed below are previously funded projects,their status and the amounts remaining in those accounts. Staff proposes to transfer the remaining balances to a contingency fund which would then be used to fund the projects noted in Table B. Number Project Name Status Amount 95-216 ADA Upgrades(201 N"E") Insufficent funds to complete project; $39,867 transfer to City Hall ADA Yd Fl. 95-232 Boys&Girls Club Renovation Complete;Close-Out 53,015 95-237 Center for Ind. w/Disabilities-Roof Repair Complete;Close-Out 5,384 95-227 Meadowbrook Park Restroom Complete;Close-Out 44,131 95-226 Nunez Park Restroom Complete;Close-Out 45,747 95-220 Employment Linkage transfer to GE Capital Project 67,000 96-207 ADA Retro-City Hall Restroom Complete;Close-Out 15,967 96-208 ARC School of Hope Complete;Close-Out 3,909 96-203 Camp Fire Facility Renovation Complete;Close-Out 25,766 96-109 Comm Sery Trans House Operations Close-Out;Transfer Funds to Trans 15,606 Housing Rehabilitation 96-205 Fire Station#9 Reroof Complete;Close-Out 13,800 96-206 Fire Station#11 Reroof Complete;Close-Out 10,799 96-227 Kerwin Field Lighting Complete;Close-Out 7,158 96-213 Mobilehome Handyworker sufficient funds exist in 98-201;Close-Out 12,042 96-212 Rehabilitation Loans sufficient funds exist in 98-201;Close-Out 98,807 96-215 Employment Linkage transfer to GE Capital Project 125,000 96-232 Salvation Army House Rehabilitation Complete;Close-Out 20,682 96-220 YMCA Uptown Branch Roof Repairs Complete;Close-Out 767 97-141 Child Advocacy Program Complete;Close-Out 1,000 97-111 Children's Network Complete;Close-Out 1,000 97-127 Community Against Drugs Complete;Close-Out 1,000 97-209 Family Service Agency Sec Complete;Close-Out 2,593 97-122 Frazee Community Emergency Services Complete;Close-Out 2,235 97-200 Mobilehome Handyworker Sufficient funds exist in 98-201 50,000 97-201 Mobilehome Inspection Sufficient funds exist in 98-201 37,976 97-212 Mortgage Assistance Program HOME monies are available. 172,300 97-203 Rehabilitation Loans sufficient funds exist in 98-201 333,161 98-218 Mobilehome Handyworker sufficient funds exist in 98-201 25,000 98-217 Mobilehome Inspection sufficient funds exist in 98-201 25,000 98-202 Employment Linkage transfer to GE Capital 50,000 98-99 Unappropriated Funds uncommitted category $209,288 TOTAL $1,516,000 MP:DAD:lag:99-02-15 PH Cons Plan COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: Economic Development Agency Staff Report Consolidated Plan Related Items February 2, 1999 Page Number-3- --------------------------------------------------------------------------------------------------------------------- The following projects have been identified in either the 1998-99 reallocation list or have transpired subsequent to the list. Staff is requesting that the sum of$1,516,000 be used to fund the following projects: TABLE "B" Number Proiect Name Amount 93-19 Complete Rehab/Home of Neighborly Service $135,000 96-208 Complete Nunez Plunge Renovation $230,000 96-228/97-223 Easter Seal -Complete Spa&Roof 8,000 96-229 Goodwill Industries Access/Accom Rehab 8,000 96-230 New House Project Improvements 15,000 96-231 Option House Transitional Rehabilitation 42,000 97-202 YMCA-Facility/ADA Upgrades 10,000 97-210/98-240 YWCA-Roof 10,000 98-212 Family Services Agency- Security Fencing 5,000 98-222 Salvation Army- Security Fencing 5,000 99- ADA Restroom Retrofit- City - 3`d Floor 22,000 99- Arden-Guthrie Community Center 9,000 99- City Parking Structure(Phase I) 60,000 99- Demolition-Arden/Guthrie 150,000 99- GE Capital Mortgage-Employment Linkage 627,000 99- Traffic Signalization- Waterman 180,000 TOTAL $1,516,000 HOME INVESTMENT PARTNERSHIP ACT PROGRAM (HOME): Between FY 1996-1998 there is approximately $800,000 in HOME funds budgeted for the Mortgage Assistance Program(MAP) (downpayment assistance to first time buyers participating under the ARR Program). There are also unexpended HOME CHDO funds(CHDO funds are for special non-profit organizations) in the amount of$600,000 remaining between 1996-1998 program years. At the present time,there are at least two (2)residential affordable housing projects(one noted in Table B or noted below)that lack sufficient funding to complete the rehabilitation work. One of these projects was originally partially funded with CDBG Funds. The projects are: -----—----------—----------—------------------------------------------------------------------------------------------------------------- MP:DAD:Iag:99-02-15 PH Cons Plan COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: Economic Development Agency Staff Report Consolidated Plan Related Items February 2, 1999 Page Number-4- --------------------------------------------------------------------------------------------------------------------- • San Bernardino County Community Services Department(CSD)Transitional Housing on "E" Street which will provide housing for eight families. There will be an on site manager to assist the families during their stay. CSD will also provide case management services to the families to enable them to become self-sufficient and to return to the mainstream. This project was originally funded with CDBG funds in 1996 in the approximate amount of$74,000. In addition, operation funding was made available to the project in the amount of$15,000. These CDBG funds have not been expended because there are insufficient funds to complete the rehabilitation work estimated at $210,000 and thus operation of the program has not commenced. Staff proposes to use HOME funds to complete the shortfall of about $120,000. • Casa Merced is a single family home operated by Mary's Mercy Center that provides transitional affordable housing to women and children. The program seeks to assist women to remain substance free,to become self-sufficient and to return to the mainstream. The home has been operated on a five-year lease/purchase option from HUD. Mary's Mercy Center can buy the home from HUD at the price of$84,000 and has raised$40,000 towards the purchase price. They originally applied for CDBG funds; however, given the number of CDBG requests, staff believes this project would be an appropriate HOME funded project. They are requesting that the City provide the sum of $44,000 to achieve their purchase. Consequently,because these are eligible affordable housing projects which cannot move forward without City/Agency assistance, and given the existing HOME balances, staff is recommending the reprogramming of HOME funds to these projects as noted below: TABLE 1 FY 1996-1998 REPROGRAMMING OF HOME FUNDS 1. CSD Housing Project $120,000 2. Mary's Mercy's Home Purchase 44,000 TOTAL $164,000 It should be noted that there are more than sufficient HOME funds to continue the MAP/ARR Program. Moreover, on July 1, 1999,the City is scheduled to receive an additional$1.7 million in HOME funds. These funds are restricted to affordable housing projects and related activities. Staff would like to point out that this staff report represents the first phase of amendments to the Consolidated Annual Action Plan. As active projects are completed, staff will request additional amendments to the Plan to accelerate the City's rate of expending federal funds. -------------------------------------------------------------------------------------------------------------------------------------------- MP:DAD:lag:99-02-15 PH Cons Plan COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: Economic Development Agency Staff Report Consolidated Plan Related Items February 4, 1999 Page Number-5- --------------------------------------------------------------------------------------------------------------------- RECOMMENDATION That the Mayor and Common Council approve the motion to reprogram CDBG and HOME funds as noted in this report; authorize the necessary amendments to the Consolidated Annual Action Plan, and authorize preparation and execution of the necessary CDBG and HOME agreements. Maggie P10co,Director Housing and Community Development -----—----------—-----—------------------------------------------------------—----------------------------------------------—---------- MP:DAD:lag:99-02-15 PH Cons Plan COMMISSION MEETING AGENDA Meeting Date: 02/1511999 Agenda Item Number: R r