HomeMy WebLinkAbout75B - PH - CDBGREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
APRIL 15, 2014
TITLE:
PUBLIC HEARING - COMMUNITY
DEVELOPMENT BLOCK GRANT
PROGRAM FY 2014 -2015
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
I:A1»:ii]TL�I,j
❑ As Recommended
❑ As Amended
❑ Ordinance on I` Reading
❑ Ordinance on 2n4 Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Approve the proposed Fiscal Year 2014 -2015 Community Development Block Grant
Program.
Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the
Council to execute memorandums of understanding with various city departments and
agreements with nonprofit agencies awarded funds as part of the approved program.
DISCUSSION
The City of Santa Ana receives 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 used an application process to make public service funds available to non-
profit 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, Santa Ana endured serious budget challenges as a result of a declining economic climate.
These challenges included 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 made the difficult
decision to limit the amount of CDBG funds available for non - profit organizations to City- managed
programs starting in Fiscal Year (FY) 2010 -2011. The same process was applied to allocate funds
for the FY 2014 -2015 and public service proposals were not requested from the non - profit
community. However, starting with FY 2015 -2016 funds, the process will revert back to soliciting
75B -1
CDBG Program FY 2014 -2015
April 15, 2014
Page 2
proposals from non - profit organizations to apply for up to ten percent of the public service
allocation.
HUD has released CDBG funding allocations for the upcoming fiscal year and Santa Ana will
receive $5,560,186. This is approximately a two percent reduction from the estimated figures
presented to the Finance, Economic Development & Technology Council Committee at its special
meeting on February 24, 2014. Funding recommendations have been adjusted proportionally
based on the reduced actual allocation from HUD.
The proposed FY 2014 -2015 CDBG program and budget (Exhibit 1) consists of 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 as part of the Annual Consolidated Plan.
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 $5,560,186.
Shelly La ry-Bay e
Housing Manager
Community Development Agency
SLB /SG /sv
Exhibit: 1. Program Recommendations
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director at
Finance & Management Services Agency
75B -2
EXHIBIT 7
Community Development Agency
CDBG FUNDING PLAN
'r�.i
RECOMMENDED
To Finance,
Economic
Development, and
RECOMMENDED
APPROVED
REQUESTED
Technology
Committee
FY 14 -15
PROGRAM
FY 13 -14
FY 14 -15
2/24/14
Adjusted to Allocation
ADMINISTRATION & PLANNING
1 Administration and Planning
$
1,066,796
$
1,067,468
$
1,067,468
$
1,044,520
2 Fair Housing Council of Orange County
$
69,300
$
69,000
$
69,000
$
67,517
CODE ENFORCEMENT
3 Code Enforcement
$
870,000
$
869,686
$
869,686
$
850,990
4 Legal Services
$
50,000
$
50,000
$
50,000
$
48,925
Economic Development
5 New Business Start -Up (Pilot)
$
400,000
$
400,000
$
400,000
$
391,400
SOCIAL SERVICES
6 PD -HEART Program
$
35,000
$
50,000
$
49,437
$
48,374
7 PD -GRIP Program
$
160,000
$
-
$
-
$
-
8 PD -PAAL Program
$
124,500
$
288,972
$
285,717
$
279,575
9 PRCSA - Library Tutors
$
223,000
$
278,140
$
275,007
$
269,095
10 PRCSA- Project Pride
$
129,500
$
164,949
$
163,091
$
159,585
11 PRCSA- Senior Meals
$
80,000
$
80,000
$
79,099
$
77,398
12 CDA -Youth Training
$
100,000
$
-
$
-
$
-
CITY CAPITAL IMPROVEMENTS
13 Public Facilities -Park Improvements
$
788,692
$
2,053,370
$
1,066,918
$
1,053,444
14 Public Facilities - Residential Streets
$
788,692
$
1,500,000
$
1,066,917
$
1,053,443
HOUSING REHABILITATION
15 Single Family Rehab -Non Profit
$
95,000
$
-
$
-
$
-
16 Single Family Rehab -City
$
350,000
$
500,000
$
500,000
$
.489,250
17 Multi Family Rehab
$
350,000
$
500,000
$
500,000
$
489,250
18 Homebuyer Down Payment Assistance
$
-
$
120,000
$
120,000
$
117,420
TOTAL
$
5,680,480
$
7,991,585
$
6,562,340
$
6,440,186
CDBG ALLOCATION
$
5,682,340
$
5,682,340
$
5,682,340
$
5,560,186
CDBG RE- ALLOCATION- AVAILABLE
$
880,000
$
880,000
$
880,000
SURPLUS /(DEFICIT)
$
1,860
_L 29,245
$
-
$
-
ADMINISTRATION CAP 20% OF ALLOCATION
$
1,136,468
$
1,136,468
$
1,136,468
$
1,112,037
ADMINISTRATION PROPOSED
$
1,136,096
$
1,136,468
$
1,136,468
$
1,112,037
SURPLUS /(DEFICIT)
$
372
$
-
$
-
$
0
PUBLIC SERVICE CAP 15% OF ALLOCATION
$
852,351
$
852,351
$
852,351
$
834,028
PUBLIC SERVICE PROPOSED
$
852,000
$
862,061
$
852,351
$
834,027
SURPLUS /(DEFICIT)
$
351
$
(9,710)
$
-
$
1
'r�.i
75B -4
2014 -2015 CDBG PROGRAM YEAR PROPOSALS ADMINISTRATION / PLANNING PROJECTS
Organization Submitting
Project Title
Project Summary
City of Santa Ana The program will provide for the overall administration of the CDBG Program, to include: submission of
CDBG Program Community required contracts with HUD, submission of all reporting requirements, project oversight, monitoring of all
Administration Development programs /projects and fiscal management. Program Administration will be performed by a combination of
Authority City Staff and Professional Consultant(s). Proposed funding amount calculated based off 20% admin cap
less Fair Housing amount.
Santa Ana Fair O.C. Fair Housing
Housing Council, Inc. dba The program will provide fair housing enforcement, community education, landlord /tenant
Education, Fair Housing counseling /mediation services and city administrative support for the residents of the City of Santa Ana.
Counseling & Council of O.C. Funds will go towards administrative /program staff and service contracts.
Enforcement
EXHIBIT 1
.•1
2014 -2015 CDBG PROGRAM YEAR PROPOSALS PUBLIC SERVICE PROJECTS
EXHIBIT 1
City of Santa Ana
The program will provide free bilingual tutoring services in all school subjects to low -to moderate - income SA
After - School
Parks, Recreation
residents in grades K -12 at the Main Library, Newhope Library and Jerome Center. Tutors will assist clients
Homework Help and
and Community
in understanding and completing homework assignments. The program also offers courses in the areas of
Tutoring Program
Services Agency
reading, math, science, art, technology and health to strengthen and develop academic, life and career skills
(PRCSA)
of each client. Funds will go towards administrative /program staff, indirect costs and supplies and materials.
Project PRIDE will provide low -to moderate- income households the opportunity to engage in recreational
City of Santa Ana
activities and participate in meaningful contributions for their communities. Family PRIDE clubs meet
Parks, Recreation
regularly at eight (8) locations in SA: SA Senior Center, Roosevelt Elementary School, Southwest Senior
Project PRIDE
and Community
Center, and El Salvador, Salgado, Memorial, Santa Anita and Logan Recreation Centers. Family PRIDE
Services Agency
clubs participate in interactive activities and learn the importance of family recreation as a way to build
(PRCSA)
strong families and prevent problem behaviors. Funds will go towards administrative /program staff, supplies,
transportation and indirect costs.
The Senior Health and Nutrition Program is a two- pronged approach (The Senior Center Lunch and The
City of Santa Ana
Home Delivered Meals Programs) to alleviate poor nutrition and isolation among the vulnerable 62+ SA
Senior Health and
Parks, Recreation
population by providing healthy meals Monday through Friday. The purpose of the program is to improve the
Nutrition Program
and Community
quality of life for the elderly by creating a safety net of health, nutrition, and support services designed to
Services Agency
enhance one's independence and well being. The lunch program is offered at three (3) sites: SA Senior
(PRCSA)
Center, Southwest Senior Center and Vietnamese Community Center. Funds will go towards contractual
services (food).
Homeless Prevention
Evaluation
The HEART program will provide homeless individuals in SA with the options that will prevent them from
Assessment
City of Santa Ana
continuous negative contacts with the police. Through collaborations, individuals and families are provided
Response Team
Police Department
viable options to end homelessness with an emphasis on self - sufficiency forthose desiring an opportunity to
(HEART)
escape homelessness. Funds will go towards program staff.
Santa Ana Police
The SAPAAL program is a comprehensive community program that breaks the cycle of gang recruitment
Athletic & Activity
City of Santa Ana
and gang violence through early intervention and mentoring programs. It is a year -round program that
League (SAPAAL)
Police Department
serves youths from Ist grade through high school. The program is offered atthree (3) locations: Jackson and
Lincoln Elementary and SAPAAL Center. Funds will go towards salaries, program cost and excursions.
EXHIBIT 1
Q
EXHIBIT 1
The proposed Pacific Electric Park Improvements Project (1.4 acres) located on the Northeast corner
City of Santa Ana
Orange and McFadden will provide recreational opportunities for the immediate residents located in the
Pacific Electric Park
Parks, Recreation and
designated eligible area. The improvements will include a play equipment area, community garden, fruit
Improvements
Community Services
tree grove, instructional amphitheater, jogging path, bike rest stop, drought tolerant landscape, automatic
Agency (PRCSA)
irrigation system, security lighting and parking. Funds will go towards Construction, Engineering and
Contingency.
Residential street improvements will be undertaken in CDBG eligible areas. The work will include
Residential Street
City of Santa Ana
construction, reconstruction, installation of pavements and improvements of damaged curbs, gutters,
Improvement
PWA
sidewalks and driveways. Funds will go towards design engineering, construction engineering,
construction and contingency.
Homebuyer Down
of
City CommSanta Ana
m unity
CDBG funds will be used to provide down payment assistance loans for qualified first time homebuyers to
Payment Assistance
Development Agency
purchase qualified homes within Sana Ana. The maximum amount of loan funds available for any qualified
Loan Program
(CDA) - Housing
homebuyer is $40,000. Loan costs include staffing costs.
CDBG funds will be used to finance the rehabilitation of privately owned single family homes for residential
Single Family
City of Santa Ana
purposes, in accordance with Section 570.202 — Eligible Rehabilitation and Preservation Activities. The
Housing
Community
program will rehabilitate properties to address code violations, potential code violations, or unsafe living
Rehabilitation
Development Agency
conditions. At least 40% of the total rehabilitation costs must be to correct code - related items. The
Program
(CDA) - Housing
maximum amount of loan funds available for any individual home is $75,000 unless approved by City
Council. Loan costs include staffing costs.
EXHIBIT 1
2014 -2015 CDBG PROGRAM YEAR PROPOSALS CAPITAL PROJECTS
Multi - Family Housing
Rehabilitation
Program
City of Santa Ana
Community
Development Agency
(CDA) - Housing
CDBG funds will be used to finance the rehabilitation of privately owned multi - family rental properties for
residential purposes in accordance with Section 570.202 - Eligible Rehabilitation and Preservation
Activities. Funds will be used to rehabilitate properties to address code violations, potential code violations,
or unsafe living conditions. The maximum amount of loan funds available for any qualified rental property
is $75,000 unless approved by City Council. Loan costs include staffing costs.
The Community Preservation Division's purpose is to improve neighborhoods through personalized
Community
City of Santa Ana
neighborhood contact, education of codes and standards, responsive and dedicated personnel, fair
Preservation (Code
Planning and Building
enforcement of laws and innovative processes. The primary purpose of this enforcement is to address
Enforcement)
Agency
property maintenance and life safety violations which contribute to the visual blight and general decline of
an area. Funds will go towards program staff and service contracts (equipment rental, insurance and
building rental).
City of Santa Ana
The program is proposed to fund start-up costs for new businesses in the City. This reimbursement grant
Small Business
Community
would be for business expenses incurred within the first year of operation. Expenses such as rent,
Incentive Program
Development Agency
insurance costs, utility connections and advertising could be reimbursed to businesses under this program.
(CDA) - Economic
Grants will be disseminated to businesses on a first come /first serve basis. Funds will go towards grants
Development
and program staff.
EXHIBIT 1