HomeMy WebLinkAbout04-17-2012 C7 modification of 2012 cdd block grant cdbg funding allocationscounci lacEnaa aepoat
C I T Y O F S A N L U I S O B I S P O
FROM :
Derek Johnson, Community Development Directo r
Prepared By : Tyler Corey, Housing Programs Manage r
SUBJECT :MODIFICATION OF 2012 COMMUNITY DEVELOPMENT BLOC K
GRANT (CDBG) FUNDING ALLOCATIONS .
RECOMMENDATIO N
Adopt a resolution modifying funding allocations for the 2012 Program Year based on ne w
funding estimate from the U .S . Department of Housing and Urban Development .
DISCUSSIO N
Situatio n
On February 21, 2012, the City Council approved funding allocations of $573,125 for the 201 2
CDBG Program Year (Attachment 1, Exhibit A). The preliminary funding estimate wa s
provided to the City by the County based on available information from the U .S . Department o f
Housing and Urban Development (HUD). The recently adopted 2012 Federal budget included a
12% reduction in overall CDBG program funding . On March 13, 2012, HUD released its ne w
funding estimate for the County, which reflects the Federal budget reduction to the CDB G
program and mandate to use the American Communities Survey data as the basis for determinin g
allocation amounts . This has resulted in an 11 .6% ($66,567) reduction to the City's 201 2
Program Year allocation for a total allocation of $506,658 . CDBG funds would be allocated fo r
Urban County jurisdictions as shown on the following chart :
Estimated 2012 CDBG Allocations for Urban County Jurisdiction s
Jurisdiction
January
Estimate d
Allocation
Allocation 'Administratio n
(20%)
Public Service s
(15%)
Arroyo Grande $84,516 $63,605 $12,721 $9,54 1
Atascadero $170,000 $133,774 $16,753 $12,56 5
Mono Bay $93,405 $57,533 $11,507 $8,63 0
Paso Robles $237,838 $167,775 $33,555 $25,16 6
San Loris Obispo $573,125 $506,558 $101,312 $75,98 4
County $614,789 $724,985 $123,247 $92,43 6
Totals $1,603,673 $1,654,260 $299,095 $224,322
Meeting Date
4-17-1 2
Item Number
C7
C7-1
Modification of 2012 CDBG Funding Allocations Page 2
Although the overall allocation for the Urban County slightly increased from the January estimate, all participatin g
jurisdiction allocations decreased with the exception of the County because of the Federal mandate to use the 201 0
American Communities Survey as the basis for determining allocation amounts, which is based on population ,
poverty persons and overcrowded housing per jurisdiction .
HUD's Office of Community Planning and Development (CPD) will update the final 201 2
CDBG Program Year allocations once the Office of Management and Budget releases the forma l
fiscal year 2012 apportionments . The County does not know when this will occur, but wil l
inform the City of any changes upon notification from CPD . It is County staff's experience that
the funding difference between an estimate allocation and the final allocation are small enough t o
make administrative changes to the Urban County Action Plan .
2012 CDBG Recommended Modification s
The table below reflects projects recently approved for funding by Council in the amount o f
$573,125, and staff's proposed funding reductions based on HUD's new estimated allocation o f
$506,558 . On April 4, 2012, the Human Relations Commission received a presentation on th e
proposed funding reductions and supported staffs recommendations . The bolded and italicized
figures represent a reduction in funding from Council's approved allocation .
Staff's recommendation reflects the grant restrictions of 15% for public services (Maxine Lewi s
Homeless Shelter) and 20% for CDBG program administration and Housing Elemen t
implementation . Based on HUD's new estimated allocation, funding for these programs must b e
reduced by $9,985 and $13,313, respectively . CAPSLO has been advised that CDBG an d
General Fund sources will not fully meet their funding request . Staff recommended that the y
complete a Grants-in-Aid request or seek outside funding sources to make up the difference . In
addition, Housing Program Implementation and CDBG Administration activities will not be fully
funded with the allocation reduction . These activities are the responsibility of the Housin g
Programs Manager and in the past, the grant has fully covered the cost of the position . A reques t
for additional resources to support this position will be made during the 2012-2013 Financia l
Plan Supplement to address the likelihood of ongoing gaps between the grant amount and th e
staffing cost associated with program activities .
Applicant Project
Februar y
201 2
Council
Approve d
Funding
Recommende d
Fundin g
Public Services 15% maximum of total allocatio n
CAPSLO Maxine Lewis Homeless Shelter $85,969 $75,984
Subtotal, Public Services – 15% Max $85,969 $75,984
Tri-Countie s
Housing Corp .
Property Acquisition & Rehabilitatio n
(542 Hathway)
$95,000 $95,00 0
Habitat fo r
Humanity
Site Clearance & Remediation (321 2
Rockview)
$30,000 $30,00 0
ROEM
Development Corp .
Property Acquisition for Affordabl e
Housing (313 South)
$82,531 $39,263
City of SLO ADA Street Improvements (Cur b
Ramps)
$105,000 $105,000
C7-2
Modification of 2012 CDBG Funding Allocations Page 3
Applicant Project
eld'-inary
2012
Council
Approve d
Funding
Recommended
Funding
CAPSLO Homeless Campus Design & Drawings $50,000 $50,00 0
Mission CSC Women's Business Center Program $10,000 $10,00 0
Subtotal, Housing/Public Facilities/Economic Development $372,531 $329,263 ;
Program Admin .20% maximum of total allocatio n
City of SLO Housing Element Implementation $68,775 $60, 787
City of SLO CDBG Administration $45,850 $40,525
Subtotal, Program AdminlPlanning -20%Max $114,625 $101 ;3]2
Total $573,125 $506;558:=
When subtracting the public services and program administration reductions from the CDB G
allocation, a balance of $43,268 remains that must be reduced from Housing, Public Facilitie s
and Economic Development projects . Of these projects, staff recommends making up th e
difference by reducing the 313 South property acquisition project by the full amount of $43,26 8
for the following reasons : 1) The developer, ROEM Corporation, does not believe the propose d
reduction will adversely affect the financial feasibility of the project based on its pro-forma ; 2 )
On February 21, 2012, Council reallocated $212,901 of unexpended CDBG funds fro m
completed projects to ROEM's 313 South project ; and 3) The project has already receive d
significant public subsidies in the amount of $2,621,498 to assist the applicant with propert y
acquisition as well as to secure a 9% State Tax Credit Allocation award .
Next Step s
The 2012 CDBG funding modifications adopted by the City Council will be forwarded to th e
County Board of Supervisors for inclusion in the 2012 Urban County Action Plan, whic h
includes funding allocations for all of the participating jurisdictions . The CDBG fundin g
reallocations previously approved by Council at their February 21, 2012, meeting for the 2008 ,
2009 and 2010 Program Years remain unchanged . Although the CDBG fiscal year begins o n
July 1, 2012, funds for projects are not expected to be available until October .
FISCAL IMPAC T
Decisions made regarding CDBG funding determine how the limited pool of funds the Cit y
receives through the Urban County allocation process is spent . To the extent that projects ar e
funded through CDBG, the burden on the City's General Fund to pay for those projects i s
reduced . As a result, projects that receive CDBG funding have a positive fiscal impact on th e
City if they otherwise would have been paid for out of the General Fund . Based on HUD's new
estimated allocation for the 2012 Program Year, additional General Fund support will be neede d
to fully fund the Housing Programs Manager position . A request for General Fund support wil l
be made during the 2012-2013 Financial Plan Supplement .
ALTERNATIVE S
1 .The Council may modify the proposed funding amounts .
C7-3
Modification of 2012 CDBG Funding Allocations Page 4
2 . The Council may continue consideration of funding for the CDBG 2012 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 Boar d
of Supervisors will adopt the updated Action Plan at their May 8, 2012, meeting t o
submit to HUD .
ATTACHMENT S
1.
Council Resolution No . 10331 (2012 Series )
2.
Draft resolution approving the staff recommendatio n
T :\Council Agenda Reports\2012\2012-04-17\iviodification of 2012 CDBG Funding Allocations (Johnson-Corey)\CDBG 2012 Funding
Modifications .docx
PF'
Attachment 1
RESOLUTION NO . 10331 (2012 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO APPROVIN G
THE 2012 CDBG PROGRAM AND REALLOCATING $212,901 OF FUNDIN G
FROM PREVIOUS CDBG PROGRAM YEAR S
WHEREAS,the City of San Luis Obispo is a participating jurisdiction in the San Lui s
Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Morro Bay, and Pas o
Robles and the County of San Luis Obispo ; an d
WHEREAS,said cities and County cooperatively administer several federal gran t
programs under the provisions of the Cooperative Agreement approved by the San Luis Obisp o
City Council on June 21, 2005, and under applicable U .S . Department of Housing and Urba n
Development Department (HUD) rules ; and
WHEREAS,pursuant to said agreement, the Urban County Public Participation Plan an d
HUD rules, the City Council held a public hearing on February 21, 2012, to consider fundin g
recommendations by the Human Relations Commission (HRC), to review applications fo r
federal grant funding, and to consider public comments on community needs and the use of suc h
funds ; an d
WHEREAS,The Council has considered applications for Community Developmen t
Block Grant (CDBG) funds, public testimony, the Urban County's proposed One-Year Actio n
Plan and the HRC and staff recommendations included in the agenda report ; and
WHEREAS,the Council has also considered previous years 'CDBG funding allocation s
and determined that amendments are necessary to re-allocate unused funds from complete d
projects to other eligible uses .
NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of San Lui s
Obispo as follows :
SECTION 1 .2012 Community Development Block Grant Program Amendments,The
City's 2012 Community Development Block Grant Program is hereby approved, as shown i n
Exhibit A. The City Manager is authorized to approve final dollar amounts once HUD release s
allocations with the direction to make up differences in the two amounts .
SECTION 2.Community Development Block Grant Program Amendments .The 2008 ,
2009 and 2010 CDBG Programs are hereby amended, as shown in Exhibit B .
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 th e
Board's final action on the Urban County's 2012 Consolidated Plan .
SECTION 4 .City Manager Authority .The City Manager is authorized to act on behal f
of the City in executing grant agreements and other actions necessary to implement the approve d
R10331
Attachment 1
Resolution No .10331 (2012 Series)
Page 2
Consolidated Plan and CDBG Program, including minor revisions to funding amounts for th e
2012 CDBG Program if the City's actual CDBG allocation is different than expected .
Upon motion of Council Member Carter, seconded by Council Member Ashbaugh, an d
on the following vote :
AYES :
Council Members Ashbaugh, Carter and Smith, Vice Mayor Carpente r
and Mayor Mar x
NOES :
Non e
ABSENT : Non e
The foregoing resolution was passed and adopted this 21 S` day of February, 2012 .
ATTEST :
Elaina Cano
City Clerk
C?;t
Exhibit A
2012 CDBG Funding Recommendatio n
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'.`I .S ~Note 1
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Amount Recommended
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Public $85 ;969 Available (15°~ of $573,125)
•Maxine Lewis Homeless Shelter 144,753 85 ;969 45,000 130,969
CAPSLO Prado Day Center for the Homeless 59,907 60,000 o
Transitional Food : Shelter Shelter for Medically Fragile Homeless ' a 0
- • Pharmaceutical Access Prescription Meds for VULow Income and Seniors 7,000
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Transitional Food &Shelter
~.4 „d [.~.}.11.n ...n ...i,,.:T~uN ~_,'St-
'`
n •~♦t .:f .I rt L Ste.K~'~4 .
Property Acquisition (7860 Sinaloa, Atascadero)70,000
6 Tn Counties Housing Corporation Property Acquisition& Rehabilitation (542 Hathway)95,000 r,,,.,95,0 0 95,00 0
7 Habitat for Humanity Site Clearance & Remediation (3212Rockview)30,000 ,•.:,30,000 30,00 0
8 ROEM Development Corporation Property Acquisition (313 South)300.,000 ' $2,531 212,901 295,432
Public Facilities '~sr~5 .';-
City of SLO ADA Street Imps -Curb Rarnps 105,000 1 r ” O 00 105,000 '
10 CAPSLO Homeless Campus Design & Drawings 50,000'{0 .,b0,000.
Economic Development
1'1Ml Mission CS CEh:S °n .'+e ,kf vl0'C1.Fat 5 ?1A Women's Business Center Progra m
p-t_33'9 m='r ~^ 7`rov,~G 3rh'.~'7 -j _Lh+dP ~a^10,000 '..20;0 `',~~yP 3 yq~T .c O ~..-rSFI
10,000'4
Program Administration
:rst[~~3r.c"f(° ~..th'~„.]l...fiG.Vm'^
$114,625 Available (20% of $573,125)
>{••'.:~"7-'^s~v.~,'~sli
12a .City SLO 1 lousing Element Implementation 68,7756$,;6,883 75;65 8
12b' 7'::y'°5•Ci of Sry LO
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of
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CDBG Administration 45 ;850 as n :: 4'5 65tT :4,588 50,43 8mJ!.,^ej -3 (4 n 'A"~n1F Yi'~l "'~.•S'~TS~Tga ~ ye "1 -°.zi F.3 .eF''F_.~7.f!i r'.{CS r~a3C'~^.:,. _~ry,~°e,[7 ~' %yf5w`GC~t1G.6i•R.:9bsm ..~~)~~y~~~~~'.~d-~.._..7:' f k 'd =s*~`r'~,;~JU'R-"tiJ.c ,~126,09 6s...:.:BFI„`.q _,'...v1i ^`vvq~'•i•,s ....F ...'.,1 z,_rr x ri::•~..,,'~~[''iu :' ~-["-~:'1 4 ',°,. ~.;~5'in.dc--•"'~rJ+,...;.u't-'''-}.'"[”,lyz::a t.4:.,'.y . ,,~9A ~~m,.'~'~P t k,,L i w+-&r ._-~4.FE~7o„_' t ,...xF90i+~~-~.':l.-.In..nl.._:i .:."~•~>C 'un°.:.~.''s ~.Y^~o7s.rn .~id~ y.n ..eR P'F``.rn~y T.,~•..fN ,'4HC}1 ~a~7.
1.Funding for CDBG Program Year 2012: $573,124
2.Tentative General Fund allocations per current policy ; and current budget allocations for homeless shelter and Prado Day Center .
3.Other sources may include HOME funds, City Affordable Housing Funds or reallocation of CDBG funds from previous program years .
Attachment 1
Exhibit "B "
CDBG Reallocation s
From/To Applicant Project Fundin g
From City of SLO 2008 — Completed Curb Ramp AD A
Street Improvement Project
$7,979
From City of SLO 2009 - Completed Santa Rosa Park AD A
Improvement Project
$34,882
From City of SLO 2010 — Housing Element Implementation $20,040
From ROEM
Corporation
2010 - Property Acquisition for
Affordable Housing (2201 Emily Street)
$150,00 0
Total From $212,90 1
To City ofSLO 2008, 2009 & 2010- Property
Acquisition for Affordable Housing (31 3
South)
$212,90 I
Total To $212,901
Attachment 2
RESOLUTION NO . XXXX-1 2
A RESOLUTION OF THE CITY COUNCI L
OF THE CITY OF SAN LUIS OBISPO APPROVING MODIFICATION S
OF 2012 CDBG FUNDING ALLOCATION S
WHEREAS, the City of San Luis Obispo is a participating jurisdiction in the San Lui s
Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Mono Bay, and Pas o
Robles and the County of San Luis Obispo ; an d
WHEREAS, said cities and County cooperatively administer several federal gran t
programs under the provisions of the Cooperative Agreement approved by the San Luis Obisp o
City Council on June 21, 2005, and under applicable U .S . Department of Housing and Urba n
Development Department (HUD) rules ; an d
WHEREAS, pursuant to said agreement, the Urban County Public Participation Plan an d
HUD rules, the City Council held a public hearing on February 21, 2012, to consider fundin g
recommendations by the Human Relations Commission (HRC), to review applications fo r
federal grant funding, and to consider public comments on community needs and the use of suc h
funds ; an d
WHEREAS, On March 13, 2012, County staff received HUD's new estimated CDB G
funding allocation for the 2012 Program Year and informed the City that its allocation will b e
$506,558, which is $66,567 (11 .6%) less than previously approved by Council ; an d
WHEREAS, The City Council has considered HUD's new estimated funding allocation s
and determined that modifications are necessary to balance the 2012 CDBG Program Yea r
budget.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Lui s
Obispo as follows :
Section 1 . 2012 Community Development Block Grant Program Amendments .Th e
City's 2012 Community Development Block Grant Program is hereby approved, as shown i n
Exhibit A . The City Manager is authorized to approve final dollar amounts once HUD releases
allocations with the direction to make up differences in the two amounts .
Section 2 .Board of Supervisors Consideration .The Council hereby forwards th e
above actions to the San Luis Obispo County Board of Supervisors for consideration prior to th e
Board's final action on the Urban County's 2012 Consolidated Plan .
Section 3 .City Manager Authority .The City Manager is authorized to act on behal f
of the City in executing grant agreements and other actions necessary to implement the approve d
Consolidated Plan and CDBG Program, including minor revisions to funding amounts for th e
2012 CDBG Program if the City's actual CDBG allocation is different than expected .
Resolution No . (2012 Series)
Attachment 2
Page 2
Upon motion of , seconded by , and on the
following vote :
AYES :
NOES :
ABSENT :
The foregoing resolution was passed and adopted this 17 `h day of April, 2012 .
Mayor Jan Marx
ATTEST :
Sheryll Schroeder, Interim City Cler k
APPROVED AS TO FORM :
Is/ Christine Dietrick
Christine Dietric k
City Attorney
2012 CDBG Funding Recommendation Exhibit "A"
~x G u~~:2-Td•luLiT~iT•l
U
No .Applicant Activity Amoun t
Requested
2012 CDB G
(Note 1)
Genera l
Fun d
(Note 2)
Othe r
Source s
(Note 3)Tota l
Public Services $75,984 Available (15% of $506,558 )
1 CAPSLO Maxine Lewis Homeless Shelter 144,753 75,984 45,000 120,984
2 CAPSLO Prado Day Center for the Homeless 59,907 60,000 60,00 0
3 Transitional Food & Shelter Shelter for Medically Fragile Homeless 1,000 -
4 Alliance for Pharmaceutical Access Prescription Meds for VL/Low Income and Seniors 7,000 -
SUBTOTAL, Public Services - 15% Max
_
212,660 75,984 105,000 -180,984
5
Housin g
Transitional Food & Shelter Property Acquisition (7860 Sinaloa, Atascadero)70,00 0
6 Tri-Counties Housing Corporation Property Acquisition & Rehabilitation (542 Hathway)95,000 95,000 95,00 0
7 Habitat for Humanity Site Clearance & Remediation (3212 Rockview)30,000 30,000 30,00 0
8 ROEM Development Corporation Property Acquisition (313 South)300,000 39,263 212,901 252,16 4
Public Facilities -
9 City of SLO ADA Street Imps - Curb Ramps 105,000 105,000 105,00 0
10 CAPSLO Homeless Campus Design & Drawings 50,000 50,000 50,00 0
Economic Development -
11 Mission CSC Women's Business Center Program 10,000 10,000 10,00 0
SUBTOTAL,Housing/Public Facilities $$329,263 Available 590,000 329,263 -212,901 542,16 4
Program Administration $101,312 Available (20% of $506,558)-
12a City of SLO Housing Element Implementation 60,787 60,787 15,833 76,62 0
12b Cit~r of SLO CDBG Administration 40,525 40,525 10,555 51,08 0
SUBTOTAL, Program Admin!Planning - 20%Max 101,312 101,312 26,388 -127,70 0
TOTAL I 903,972 506,558 131,388 212,901 850,848
1.Funding for CDBG Program Year 2012 : $506,55 8
2.Tentative General Fund allocations per current policy ; and current budget allocations for homeless shelter and Prado Day Center .
3.Other sources may include HOME funds, City Affordable Housing Funds or reallocation of CDBG funds from previous program years .
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