HomeMy WebLinkAbout04/15/2003, BUS 4 - REVISIONS TO THE 2003 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM L
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CITY OF SAN LUIS OBISPO
FROM: John Mandeville, Long-Range ntng Mana er
Prepared By: Jeff Hook, Associate Planne
SUBJECT: REVISIONS TO THE 2003 COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM
CAO RECOMMENDATION
As recommended by the Human Relations Commission, adopt a resolution approving revisions
to the 2003 Community Development Block Grant Program and recommending that.
1) The Board of Supervisors take the following actions: a) allocate $92,300 in HOME funds
to Youth Transitional Housing and Women's Shelter Transitional Housing, b) allocate an
additional $12,643 in unincorporated County CDBG funds or Special Urban Projects
funds to the San Luis Obispo Homeless Shelter, and c) if additional public services funds
are not available, allocate excess public services capacity in the Urban County to the City
of San Luis Obispo to fully fund homeless services in 2003; and
2) Council reallocate excess CDBG funds from Street Improvements for Accessibility to the
Homeless Shelter Operation if additional public services capacity becomes available.
DISCUSSION
Background
In December 2002, the Human Relations Commission (HRC) reviewed the 2003 Community
Development Block Grant (CDBG) applications and forwarded its funding recommendations to
the City Council. On March 4b, the City Council adopted Resolution No. 9424 approving the
2003 CDBG Program, amending previous program years' funding, and endorsing the Urban
County's Action Plan as recommended. The approved program is shown in Attachment 2.
On March 6h, County staff notified the City that the U.S. Department of Housing and Urban
Development (HUD) had released new 2000 Census data to be used in CDBG formula
allocations. Using the new data, County staff revised the 2003 formula allocations for the cities
and the unincorporated county. Overall, the Urban County receives only $5,000 less from HUD
than expected. Within the Urban County, however, CDBG allocations would change markedly.
The cities of Arroyo Grande, Grover Beach and San Luis Obispo get less CDBG funds in 2003
than originally estimated, while funding for Paso Robles, Atascadero and the unincorporated
county would increase. San Luis Obispo's revised 2003 allocation is $789,047, or $86,192 less
than the original estimate of $875,239. Original and revised CDBG funding allocations are
shown on Attachment 3.
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C:� J
Council Agenda Report —Revisions to the 2003 Community Development Block Grant Program
Page 2
Advisory Body Recommendation
On April 2nd, the HRC held a public hearing to consider revisions to the approved 2003 CDBG
Program. The Commission's recommended funding is shown in Attachment 4. This strategy
maintains funding for repaying the City's Section 108 loan, homeless services, handicapped
access improvements for Hospice, public streets, fire station and playgrounds, program
administration and affordable housing programs implementation. Funding for repairs to low-
income group housing is recommended to come from County HOME funds. The Commission
also recommended the County assist the City with a shortfall in Homeless Shelter funding this
year with either public services funds or excess public services capacity from the unincorporated
county, and that if the City receives additional public services capacity that it shift funding from
the Street Handicapped Ramps activity to "backfill" Homeless Shelter funding.
Why The Change?
The Urban County's estimated 2003 CDBG allocations were based on the 1990 Census. To
determine how much CDBG funds each jurisdiction receives, county staff used the same formula
HUD uses to allocate funds to urban counties and entitlement cities. This formula uses Census
data for population, population growth, poverty, and overcrowding. According to county staff,
HUD only recently authorized participating jurisdictions to use 2000 Census numbers for these
factors, hence the late notice to cities. The revised funding allocations reflect demographic
changes in the Urban County as shown in the 2000 Census data. The City does not have the
option of choosing a different allocation formula or using different data. Under the terms of our
Urban County Cooperation Agreement for Program Years 2003 through 2006, the County agrees
to "pass through" funds to the Metropolitan Cities — Atascadero, Paso Robles, and San Luis
Obispo — up to total amounts equal to what they would have received had they applied for and
received CDBG funds separately as an entitlement city. County staff verified with HUD that the
revised allocations are the same amounts the cities would have received as freestanding
entitlement cities.
Impact of CDBG Reduction
The City has $86,192 less in 2003 CDBG funds than anticipated. Consequently, our program
needs to be revised to accommodate the cut. The reduced allocation also raises difficulty with
public services funding. The Urban County is limited by federal rules to spending no more than
15% of its total allocation on public services, and cities generally adhere to that limit. In 2003,
the City planned to use its entire public services capacity-- $131,000—to fund Homeless Shelter
operations. $7,000 in Park Hotel funds was to be used to fund the balance of the Shelter's
funding request of $138,000. With the reduced allocation, the amount available for public
services is also reduced — from $131,000 to $118,357. This leaves a funding shortfall of
$12,643, unless a) the City makes up the difference using more Park Hotel or General Funds, or
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Council Agenda Report—Revisions to the 2003 Community Development Block Grant Program
Page 3
b) an alternative funding source is identified as "backfill" funding, or c) the City is able to exceed
the 15 percent spending limit if other jurisdictions use less than 15 percent.
Using up to $5,000 of additional Park Hotel funds is possible, however this would close out the
fund and require the City to use more General Funds than planned to fund the Prado Day Center.
This approach is problematic, since the City faces an unprecedented deficit in its 2003-2005
budget. Other jurisdictions in the Urban County may have uncommitted public services funds
which could be used to assist the city with this service that benefits the entire county.
Alternatively, other jurisdictions may have unused public services capacity that would allow us
to exceed the 15 percent limit. In this case, we could allocate more CDBG funds for the
Homeless Shelter. If neither opportunity emerges, the City will consider "backfill" funding for
the Shelter as part of the 2003-2005 budget.
Use of HOME Funds
An Urban County Team meeting was held on Thursday, March 27`x' to review the allocation
formulas, revised numbers, and to develop a plan for dealing with the impacts to cities losing
funds. County staff noted that the Urban County had additional HOME funds in 2003 and
offered to assist the City by using HOME funds to cover costs of the City's HOME-eligible
activities — rehabilitation of the Youth Transitional Housing and Women's Shelter Transitional
Housing. These two activities had been approved to receive $92,300 in city CDBG funds. Use
of HOME funds would offset the loss of $86,192 in CDBG funds, with an additional $6,108 to
allocate to another activity.
The Revised 2003 CDBG Program
The HRC's recommendations are shown in Attachment 4. Assuming the County follows thru on
its offer to use HOME funds.to assist the City, the impact of this year's funding cut will be
minimized. In addition, the program still includes about$83,000 from previous program years as
carryover for additional handicapped ramps in city streets during 2003-2004. The $12,643
shortfall in Homeless Shelter funding would be made up through Urban County assistance and/or
additional General Funds, as needed. We will not know whether additional public services
funds or capacity is available until the Board of Supervisors acts on the Consolidated Plan on
May 6`t'. In the meantime, the Program "banks" $18,751 (12,643 + 6,108) in the Street
Improvements for Accessibility activity funding for later reallocation to the Homeless Shelter or
other activity, as needed. If not needed, the additional funding will allow construction of more
handicapped ramps than anticipated this year.
ALTERNATIVE
Council may modify the proposed 2003 Program through any combination of spending cuts and
reallocations that total available CDBG funding in 2003.
��3
Council Agenda Report—Revisions to the 2003 Community Development Block Grant Program
Page 4
ATTACHMENTS
1. Draft Council Resolution
2. Approved 2003 CDBG Program Funding
3. Original and Revised Urban County CDBG Allocations
4. HRC - Recommended Revised 2003 CDBG Program
Jh/CDBG/CDBG03revised.ccrpt
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Attachment 1
RESOLUTION NO. (2003 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING REVISIONS TO THE 2003 CDBG PROGRAM
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, Grover Beach, 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 approved by the San Luis Obispo
City Council on July 13, 1999 and as amended on September 7, 1999, and under applicable U.S.
Department of Housing and Urban Development Department (HUD) rules; and
WHEREAS, the Council has held a public hearing to consider applications for
Community Development Block Grant (CDBG) funds, public testimony, the Urban County's
proposed One-Year Action Plan, including proposed funding allocations for the CDBG program,
Home Investment Partnership (HOME), Emergency Shelter Grants (ESG), and the Special Urban
Projects Fund, HRC recommendations and staff report and approved 2003 CDBG funding on
March 4, 2003; and
WHEREAS, On March 6, 2003 the Urban County notified that the City that the City's
2003 CDBG allocation has been reduced by approximately $86,000 dollars due to the County's
use of 2000 Census data to recalculate CDBG allocations for the Urban County; and
WHEREAS, the Human Relations Commission held a public hearing on April 2, 2003 to
consider a revised funding strategy to accommodate the reduced CDBG funding level; and
WHEREAS, the Council has considered the Human Relations Commission's
recommendation, public testimony and staff report and intends to revise the City's approved
2003 CDBG Program as described in Council Resolution No. 9424 (2003 Series).
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Environmental Determination. The Council hereby determines that the
proposed funding actions are not "projects" as defined by Section 21065 of the California
Environmental Quality Act (CEQA), since they will not cause a direct or indirect physical change
in the environment and do not involve the issuance of a lease, permit, license, certificate or other
entitlement. Consequently, no further environmental review is necessary.
SECTION 2. Revisions to the 2003 Community Development Block.Program. The
City's 2003 Community Development Block Program is hereby revised, as shown in Exhibit A.
SECTION 3. HOME Funding. The Council recommends that the San Luis Obispo
County Board of Supervisors allocate a total of$92,300 in HOME funds to the Rehabilitation of
Youth Housing for Transitions Mental Health and Women's Transitional Housing Rehabilitation
for San Luis Obispo County Women's Shelter.
MACHMEW 1
Resolution No. (2003 Series)
Page 2
SECTION 4. Public Services Funding. The Council recommends that the San Luis
Obispo County Board of Supervisors.allocate an additional $12,643 in unincorporated County
CDBG public services funds or Special Urban Projects funds to the San Luis Obispo Homeless
Shelter to help fund this activity in 2003.
SECTION 5. Public Services Capacity. If additional public services funds are not
available, the Council recommends that the San Luis Obispo County Board of Supervisors
allocate additional public services funding capacity to enable the City to make up a $12,643
shortfall in funding for the San Luis Obispo Homeless Shelter in 2003.
SECTION 6. Reallocation of Funds For Homeless Shelter. If additional public
services capacity becomes available, the CAO is hereby directed to shift funds from 2003 Street
Improvements for Accessibility activity to the Homeless Shelter operations to bring total 2003
funding to the requested level of$138,000.
SECTION 7. Board of Supervisors Consideration. The Council hereby directs staff to
forward 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 2003 Consolidated Plan.
Upon motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this day of 2003.
Mayor Dave Romero
ATTEST:
Lee Price, City Clerk
APPROVED AS TO FORM:
0 pTIACHMEW 1
Resolution No. (2003 Series)
Page 3
6filbert A. Trujillo, cting City Attorney
Exhibits:
A-Revised 2003 CDBG Program for the City of San Luis Obispo
jh/Ucdbg/councilresolution4-15-03
Attachment 2
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Attachment 3
SAN LUIS OBISPO URBAN COUNTY
REVISED COMMUNITY DEVELOPMENT BLOCK GRANT ALLOCATIONS
2003 PROGRAM YEAR
JURISIDICTION ORIGINAL-ALLOCATION REVISED ALLOCATION;--%oCHGE-
Arro o Grande 140,299 130,164 -7
Atascadero 227,674 231,655 2
Grover Beach 171,720 150,936 -12
Paso Robles* 273,994 337,645 23
San Luis Obispo 875,239 789,047 10
Unincorporated County** -765,913 803,035 5
Special Urban Projects Fund 135,161 142,518 5
TOTALS 2,590,000 2,585,000 -0.1
*Plus $44,000 in program income
**Plus$156,565 additional in program income
Page 1
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