HomeMy WebLinkAbout75B - PH - CDBG PROGRAM FUNDING FY 13-14REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 6, 2013
TITLE:
COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM FY 2013-2014
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1" Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
1. Approve the proposed Fiscal Year 2013-2014 Community Development Block Grant
Program.
2. Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the
Council to execute memorandums of understanding with city departments and agreements
with nonprofit agencies awarded funds as part of the approved program.
DISCUSSION
Since Fiscal Year 1974-1975, Santa Ana has received Community Development Block Grant
(CDBG) funds to improve low- and moderate-income neighborhoods, eliminate blight and create a
more stable economic base. These funds have been used for a diverse range of programs
including housing, street improvements, parks and public facilities improvements, social services,
historic preservation and community services.
In past years, the City has used an application process to make public service funds available to
nonprofit organizations that meet one of the priorities identified in the City's Consolidated Plan (the
City's five-year strategic plan that identifies housing and community needs that are required by the
U. S. Department of Housing and Urban Development [HUD]). Like communities throughout the
nation, the current economic climate continues to present serious budget challenges to Santa Ana.
These challenges include an increased demand for a variety of municipal services, the elimination
of redevelopment tax increment, the redirection of local revenues to the state, and an overall
decline in various tax revenues.
To address these challenges, the City continues to make the difficult decision to limit the amount of
CDBG funds available for nonprofits for the 2013-2014 Fiscal Year to City-managed programs.
Therefore, public service proposals were not requested from the non-profit community.
75B-1
CDBG Program FY 2013-2014
May 6, 2013
Page 2
Each year, HUD notifies the City regarding the amount of Community Development Block Grant
(CDBG) funds to be allocated for the upcoming year. Unfortunately, due to the federal
government's current budgetary issues, HUD has not been able to provide the City with a final
allocation for the upcoming fiscal year. Therefore at this time, staff has compiled a CDBG funding
plan based on the amount allocated for FY 2012-2013. Should the City receive more or less, the
actual allocation amounts would be increased or decreased proportionately to the actual amount of
CDBG funds awarded from HUD. There are three exceptions to this contingency plan. The
programs being proposed for Fair Housing Counseling and Senior Meals will be provided by
outside agencies, and the funding costs indicated are needed to maintain a constant service level.
Additionally, the HEART program is being recommended for Emergency Solutions Grant funding
and the CDBG funds are needed to meet the match requirement.
The proposed Fiscal Year 2013-2014 CDBG program and budget (Exhibit 1) consists of the staffs
funding recommendations for the program. The City Council public hearing provides an
opportunity for public input and the completion of the process necessary to submit our locally
approved program to HUD. It will also ensure the timely completion and submission of the Annual
Consolidated Plan. This action is approving funding allocations as recommended. It is important
to note, however, in the case of the new Economic Development microenterprise business start-up
grant program, the adoption of the program and implementation parameters will be brought back
for City Council approval.
FISCAL IMPACT
Approval of the recommended action will authorize the City Manager to submit the approved
program to HUD and to execute a grant agreement, which will result in the City's CDBG letter of
credit being augmented by an estimated $5,680,480.
APPROVED AS TO FUNDS AND ACCOUNTS:
Ra, & -
Sandi Gottlieb
Acting Executive Director
Community Development Agency
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Francisco Gutierrez
Executive Director
Finance & Management Services Agency
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Exhibit: 1: Program Recommendations
75B-2
4/11/20131:34 PM
Community Development Agency
CDBG FUNDING PLAN
CURRENT YEAR FUNDING ORIGINAL PROPOSAL RECOMMENDATION
PROGRAM FY 12-13 FY 13-14 FY 13-14
ADMINISTRATION & PLANNING
1 Administration and Planning $ 1,064,576 $ 1,066,796 $ 1,066,796
2 Fair Housing Council of Orange County $ 71,520 $ 69,300 $ 69,300
CODE ENFORCEMENT
3 Code Enforcement $ 1,250,000 $ 870,000 $ 870,000
4 Legal Services $ 50,000 $ 50,000 $ 50,000
Economic Development
5 New Business Start Start-Up (Pilot) $ - $ 600,000 $ 400,000
SOCIAL SERVICES
6 PD-HEART Program $ 35,000 $ 35,000 $ 35,000
7 PD-GRIP Program $ 185,000 $ 185,000 $ 160,000
8 PD-PAAL Program $ 144,000 $ 144,000 $ 124,500
9 PRCSA-Library Tutors $ 258,072 $ 258,063 $ 223,000
10 PRCSA-Project Pride $ 150,000 $ 150,000 $ 129,500
11 PRCSA-Senior Meals $ 80,000 $ 80,000 $ 80,000
12 CDA-Youth Training $ - $ 249,062 $ 100,000
CITY CAPITAL IMPROVEMENTS
13 Public Facilities-Park Improvements $ 1,228,680 $ 2,889,300 $ 788,692
-Pacific Electric Park-Design
-Santa Anita Park PatibRenovation
-Memorial Park Security Lighting
14 Public Facilities-Residential Streets $ 748,632 $ 1,500,198 $ 788,692
HOUSING REHABILITATION
15 Single Family Rehab-Non Profit $ 90,000 $ 95,000 $ 95,000
16 Single Family Rehab-City $ 200,000 $ 350,000 $ 350,000
17 Multi Family Rehab $ 125,000 $ 350,000 $ 350,000
TOTAL $ 5,680,480 $ 8,941,719 $ 5,680,480
CDBG ALLOCATION $ 5,680,480 $ 5,680,480 $ 5,680,480
CDBG RE-ALLOCATION-AVAILABLE
SURPLUS/(DEFICIT) $ - $ (3,261,239) $ -
ADMINISTRATION CAP 20% OF ALLOCATION $ 1,136,096 $ 1,136,096 $ 1,136,096
ADMINISTRATION PROPOSED $ 1,136,096 $ 1,136,096 $ 1,136,096
SURPLUS/(DEFICIT) $ - $ - $ -
PUBLIC SERVICE CAP 15% OF ALLOCATION $ 852,072 $ 852,072 $ 852,072
PUBLIC SERVICE PROPOSED $ 852,072 $ 1,101,125 $ 852,000
SURPLUS/(DEFICIT) $ - $ (249,053) $ 72
7 Qb-, k?
75B-4