HomeMy WebLinkAbout04-15-2014 C9 2014 CDBG Funding Modifications
FROM: Derek Johnson, Community Development Director
Prepared By: Tyler Corey, Housing Programs Manager
SUBJECT: MODIFICATION OF 2014 COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) FUNDING ALLOCATIONS.
RECOMMENDATION
Adopt a resolution modifying funding allocations for the 2014 Program Year based on final
funding allocation from the U.S. Department of Housing and Urban Development.
DISCUSSION
Situation
On February 4, 2014, the City Council approved funding allocations of $460,000 for the 2014
CDBG Program Year (Attachment 1, Exhibit A). The preliminary funding estimate was
provided by the County based on available information from the U.S. Department of Housing
and Urban Development (HUD). On April 4, 2014, HUD released its final funding allocation for
the County, which resulted in an 8.4% or $38,446 increase to the City’s 2014 Program Year
allocation.
2014 CDBG Recommended Modifications
The table below reflects projects approved for funding by Council on February 4th in the amount
of $460,000, and staff’s proposed funding increases based on HUD’s final allocation of
$498,446. The bolded and italicized figures represent an increase in funding from Council’s
approved allocation.
Applicant Project February 4
Allocation
Revised
Allocation
CAPSLO Maxine Lewis Homeless
Shelter
$69,000 $74,767
Alano Club Transitional Housing
Rehabilitation
$139,898 $139,898
Women’s Shelter
of SLO County
Plumbing Rehabilitation $31,200 $31,200
City of SLO ADA Curb Ramps $127,902 $152,892
City of SLO Housing Element
Implementation
$55,200 $59,813
City of SLO CDBG Administration $36,800 $39,876
Total $460,000 $498,446
Meeting Date
Item Number 4-15-14
C9 - 1
Modification of 2014 CDBG Funding Allocations Page 2
Staff’s recommendation reflects the grant restrictions of 15% for public services (Maxine Lewis
Homeless Shelter) and 20% for CDBG program administration and Housing Element
implementation. Based on HUD’s final allocation, funding for these programs are proposed to
be increased by $5,767 and $7,689, respectively.
When subtracting the public services and program administration increases from the CDBG
allocation, a balance of $24,990 remains. Per Council Resolution No. 10494 (Attachment 1), any
increase in funding shall be allocated to the City’s ADA Curb Ramp project. Consistent with
Council action, staff has allocated the remaining funds to this project.
Next Steps
The 2014 CDBG funding modifications adopted by the City Council will be forwarded to the
County Board of Supervisors for inclusion in the 2014 Urban County Action Plan, which
includes funding allocations for all of the participating jurisdictions. This meeting is scheduled to
occur on June 3, 2014. Although the CDBG fiscal year begins on July 1, 2014, funds for projects
are not expected to be available until October.
FISCAL IMPACT
Decisions made regarding CDBG funding determine how the limited pool of funds the City
receives through the Urban County allocation process are spent. To the extent that projects are
funded through CDBG, the burden on the City’s General Fund to pay for those projects is
reduced. As a result, projects that receive CDBG funding have a positive fiscal impact on the
City if they otherwise would have been paid for out of the General Fund.
ALTERNATIVES
1. The Council may modify the proposed funding.
2. The Council may continue consideration of funding for the 2014 CDBG Program Year.
Direction should be given to staff regarding additional information needed to make a
decision on funding amounts. This alternative is not recommended as the County Board
of Supervisors will adopt the updated Action Plan at their June 3, 2014, meeting to
submit to HUD.
ATTACHMENTS
1. Council Resolution No. 10494 (2014 Series)
2. Draft resolution approving the staff recommendation
T:\Council Agenda Reports\2014\2014-04-15\2014 CDBG Funding Modifications\CDBG 2014 Funding Modifications CAR.docx
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Attachment 1
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Attachment 1
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Attachment 1 C9 - 5
RESOLUTION NO. XXXX-14
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN LUIS OBISPO APPROVING MODIFICATIONS
OF 2014 CDBG FUNDING ALLOCATIONS
WHEREAS, the City of San Luis Obispo is a participating jurisdiction in the San Luis
Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Morro Bay, and Paso
Robles and the County of San Luis Obispo; and
WHEREAS, said cities and County cooperatively administer several federal grant
programs under the provisions of the Cooperative Agreement executed between the City and
County June 21, 2011, and under applicable U.S. Department of Housing and Urban
Development Department (HUD) rules; and
WHEREAS, pursuant to said agreement, the Urban County Public Participation Plan and
HUD rules, the City Council held a public hearing on February 4, 2014, to consider funding
recommendations by the Human Relations Commission (HRC), to review applications for
federal grant funding, and to consider public comments on community needs and the use of such
funds; and
WHEREAS, On April 4, 2014, HUD released its final funding allocation for the County,
which resulted in an 8.4% ($38,446) increase to the City’s 2014 Program year allocation; and
WHEREAS, The City Council has considered HUD’s new estimated funding allocation
and determined that modifications are necessary to balance the 2014 CDBG Program Year
budget.
BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows:
Section 1. Environmental Determination. The project is exempt from environmental
review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). It can be seen with
certainty that CDBG funding allocations could not have a significant effect on the environment.
Section 2. 2014 Community Development Block Grant Program Amendments. The
City’s 2014 Community Development Block Grant Program is hereby approved, as shown in
Exhibit A. The City Manager is authorized to approve final dollar amounts if there are changes
to HUD’s allocation with the direction to make up differences in the two amounts. Any
additional increase in funding shall be allocated to the City’s ADA Curb Ramp project once
increases for public services (15% of allocation) and program administration (20% of allocation)
have been adjusted.
Section 3. Board of Supervisors Consideration. The Council hereby forwards the
above actions to the San Luis Obispo County Board of Supervisors for consideration prior to the
Board’s final action on the Urban County’s 2014 Consolidated Plan.
Attachment 2
C9 - 6
Resolution No. (2014 Series)
Page 2
Section 4. City Manager Authority. The City Manager is authorized to act on behalf
of the City in executing grant agreements and other actions necessary to implement the approved
Consolidated Plan and CDBG Program, including revisions to funding amounts for the 2014
CDBG Program if the City’s actual CDBG allocation is different than expected.
Upon motion of , seconded by , and on the
following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this 15th day of April, 2014.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony J. Mejia
City Clerk
APPROVED AS TO FORM:
_____________________________________
Christine Dietrick
City Attorney
Attachment 2
C9 - 7
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Attachment 2 C9 - 8