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Agenda Item 21.
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| City Council Meeting |
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| Subject: |
| Approval of the applications for participation in the Community Development Block Grant Program (CDBG) for Fiscal Years 2020-21, 2021-22 and 2022-23. |
| RECOMMENDATION |
| After a Public Hearing, adopt the Resolutions approving Fiscal Years 2020-21, 2021-22 and 2022-23 applications to the County of Orange for Community Development Block Grant (CDBG) funding. |
| BACKGROUND/DISCUSSION |
The Federal Housing and Community Development Block Grant Program (CDBG) was established under legislation passed by Congress in 1974 to provide housing and other assistance for low-income persons. It is funded by the Federal Department of Housing and Urban Development (HUD) and administered by the County of Orange for cities under 50,000 in population.
The City has been very successful in receiving CDBG grants to implement the Single Family Housing Rehabilitation Program, alley improvements identified in the Neighborhood Enhancement Plan, and capital improvements to Pioneer Hall and the Senior Center. Project eligibility is limited as the County only funds what is deemed "high priority projects," including addressing homelessness, housing rehabilitation, alley improvements, senior centers, and Americans with Disabilities Act (ADA) improvements.
The City has received CDBG funding each year for the past 45 years for housing rehabilitation of single family homes owned by low-income residents. Qualified homeowners must meet federally prescribed requirements to participate in the Program. Each year, approximately 10 to 15 homes are improved and many neighborhoods in Brea have been enhanced.
The historic buildings used for the Brea Senior Center have also undergone renovations with CDBG funds from the Public Facilities & Improvements component of the Program. The proposed project for the upcoming fiscal year is to install and improve ADA curb accessibility ramps at various locations in the city.
The County released the Fiscal Years 2020-21, 2021-22 and 2022-23 CDBG application package on November 20, 2019 and required that completed applications be submitted by December 23, 2019. This timeframe did not allow the opportunity to bring the application to the City Council prior to submittal. The County requires a Council resolution in order for Brea's applications to be considered in the competitive process.
Tonight's Public Hearing is being conducted to conform to HUD and County requirements to give the public an opportunity to participate in the application process. At the conclusion of the Public Hearing, the Council is asked to approve, by separate resolutions, the City's participation in the CDBG grant programs detailed below:
Housing Rehabilitation Program
Single family rehabilitation loans and grants will be used to correct health, safety and building code violations. The majority of the funds received will be utilized for single family home loans and mobile home grants. The remaining funds will be used for program delivery expenses to perform inspections of the project sites, contract document preparation, and coordinating contractors/construction. The recipients of the loans and grants must be low-income households, which is defined as earning 80% or less of the County median income. The requested grant amount is $180,000 for each Fiscal Year (2020-21, 2021-22 and 2022-23).
Public Facilities & Improvements
The application requests Public Facilities & Improvements funds to implement accessibility improvements at various locations, with a primary focus on areas near public facilities. The requested grant amount is $150,000 for Fiscal Year 2020-21.
As part of the County's requirements, the resolutions proposed for adoption authorizes the Mayor, or his/her designee, to execute for and on behalf of the City of Brea, the necessary agreements and/or any other documents or instruments required for participation in the Urban Counties Program for acceptance of the CDBG funds under Bid No. 012-192301. |
| COMMISSION/COMMITTEE RECOMMENDATION |
The Finance Committee reviewed the application for the Single Family Housing Rehabilitation Program at its meeting on January 14, 2020 and recommended moving the item to Council for approval.
Additionally, at that same meeting, staff notified the Finance Committee members that the application for Public Facilities & Improvements Program funds would be combined with the application for Housing Rehabilitation for the City Council Public Hearing on Tuesday. Each application has a separate resolution. |
| FISCAL IMPACT/SUMMARY |
The City of Brea applies annually to the County of Orange for Federal Community Development Block Grant (CDBG) funding in order to provide low-income single family rehabilitation loans and grants to qualified Brea homeowners. Additionally, the City typically applies for funding in the Public Facilities & Improvements component of the Program. Eligible uses of this funding includes ADA accessibility ramps.
The CDBG application for the Single Family Housing Rehabilitation Program is a multi-year application (Fiscal Years 2020-21, 2021-22 and 2022-23). $180,000 is being requested for each fiscal year, and there is no match requirement. Staff implementing the Program is paid from the Housing Successor Fund. Thus, there is no negative fiscal impact to the General Fund.
The CDBG application for Public Facilities & Improvements is a single-year application (Fiscal Year 2020-21) and is requesting $150,000 to install and improve ADA curb accessibility ramps at various locations in Brea. There is no match required and this action will have a positive impact on the General Fund by providing alternative funding for an important community benefit.
Staff recommends adoption of the attached Resolutions approving the two applications. |
| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Marie Dao, Management Analyst
Concurrence: Chris Emeterio, Acting Community Development Director
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