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Agenda Item 21.
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| City Council Meeting |
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| Subject: |
| Approval of the application for participation in the Community Development Block Grant Program (CDBG) Fiscal Years 2018-19 and 2019-20. |
| RECOMMENDATION |
| After a public hearing, adopt the Resolution approving the Fiscal Years 2018-19 and 2019-20 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 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, and senior centers.
The City has received CDBG funding each year for the past 43 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, 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 been improved many times with CDBG funding, including updated restrooms, adding a covered patio, and improving accessibility. The project underway this fiscal year is kitchen assessment and plans.
The County released a two-year application package for Fiscal Years 2018-19 and 2019-20 on December 6, 2017 and required that completed applications be submitted by January 17, 2018. This timeframe did not allow the opportunity to bring the applications to Council prior to submittal. The County requires a Council resolution by February 15, 2018 in order for Brea's applications to be considered in the competitive process.
The 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 resolution the City's participation in the Fiscal Years 2018-19 and 2019-20 CDBG grant program. Details on the proposed use of the funds follow:
Single Family Rehabilitation Loans
The rehabilitation loans would 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 and 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 amount is $200,000.
Public Facilities Improvements
The application recently submitted requests public facility funds to implement some of the kitchen accessibility plan recommendations at the Senior Center. The anticipated recommendations will result from the current fiscal year CDBG project. The implementation will improve overall senior accessibility, functionality, mobility, and safety. The requested grant amount for these improvements is $200,000.
As part of the County's requirements, the resolution 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. 012-182310. |
| COMMISSION/COMMITTEE RECOMMENDATION |
| The Finance Committee discussed this item at their meeting on January 30, 2018 and recommended approval. |
| 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 competitive funding in the Public Facilities Improvements component of the CDBG Program. Eligible use of this funding includes alley improvements in low-income census tracts and improvements to the Senior Center. This year staff prepared an application to implement some of the anticipated kitchen accessibility plan recommendations at the Senior Center, improving overall senior accessibility, functionality, mobility, and safety in the Senior Center kitchen.
Housing Rehabilitation
The CDBG applications for the single family housing rehabilitation program for Fiscal Years 2018-19 and 2019-20 are requesting $200,000. There is no negative fiscal impact to the General Fund associated with CDBG housing rehabilitation, as no grant match is required and staff implementing the Program is paid from the Housing Successor Fund, rather than the General Fund. Housing staff costs are considered leveraged funds.
Public Facilities Improvements
The CDBG applications for improvements at the Senior Center are requesting $200,000 for Fiscal Year 2018-19 and $150,000 for Fiscal Year 2019-20. To increase the likelihood of receiving funding for $200,000 in Fiscal Year 2018-19, the application included a 20% voluntary match of approximately $40,000. The leveraged amount ($40,000 to be budgeted by the City) would be the following breakdown:
- $5,000 to be used for inspections. (Building) Inspection will consist of City engineers and/or inspectors reviewing plans and verifying that the construction work is completed to plans and to code.
- $5,000 to be used from a private donation to the City to be used specifically for the Senior Center.
- $30,000 to be used from the City's Fixed Asset Replacement Program (Fund 182).
These funds have been requested from the Capital Improvement Program (CIP) Budget. If approved, there is no negative fiscal impact to the General Fund.
In addition, for Fiscal Year 2019-20, to receive potential funding for $150,000, the application included a voluntary $5,000 match of "in-kind costs," such as city staff time for project management, inspection, and quality control.
Staff recommends adoption of the attached Resolution approving the applications. |
| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Marie Dao, Management Analyst I and Carrie Hernandez, Community Services Manager
Concurrence: Kathie DeRobbio, Economic Development Manager; David Crabtree, Community Development Director; and Chris Emeterio, Assistant City Manager/Community Services Director
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