HomeMy WebLinkAbout06/07/2011, C 7 - MODIFICATION OF 2011 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATIONS. {
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CITY O F SAN LUIS O B I S P O
FROM: John Mandeville,.Community Development Director
Prepared By: Tyler Corey, Housing Programs Manager
SUBJECT: MODIFICATION OF 2011 COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) FUNDING ALLOCATIONS.
RECOMMENDATION
Adopt a resolution modifying funding allocations for the 2011 Program Year based on new
funding estimate from the U.S. Department of Housing and Urban Development.
DISCUSSION
Situation
On March 2, 2011, the City Council approved funding allocations for $647,517 for the 2011
CDBG Program Year (Attachment 1, Exhibit A). The preliminary funding estimate was
provided by County staff based on available information at the time from the U.S. Department of
Housing and Urban Development (HUD), which included a 5% reduction in funding from the
2010 Program Year. On April 22, 2011, County staff received HUD's new estimated funding
allocation, which is $1,877,089 or$375,921 (16.6%) less than the 2010 allocation of$2,263,010.
Of this amount, the City will receive $568,358 in CDBG funding, which is $79,159 (11.6%) less
than previously estimated and $113,221 less than the 2010 allocation. CDBG funds would be
allocated as shown on the following chart:
Estimated 2011 CDBG Allocations for Urban County Jurisdictions
Jurisdiction 2011 Reduction 20F1 2011 Public
Allocation from 2010 Administration Services
(20%) (15%)
Arroyo Grande $95,344 $18,993 $19,069 $14,302
Atascadero $168,567 $33,579 $33,713 $25,285
Grover Beach $110,975 $22,108 $22;195 $16,646
Paso Robles $250;240 $49,850 $50,048 $37;536
San Luis Obispo $568,358 $113,221 $1139672 $85,254
County $693,605 $138,170 $138,721 $104,041
Totals $19877,089 $375,921 $377418 $283,063
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Modification of 2011 CDBG Funding Allocations
HUD's Office of Community Planning and Development (CPD) will update the final 2011
CDBG Program Year allocations once the Office of Management and Budget releases the formal
fiscal year 2011 apportionments. The County does not know when this will occur, but will
inform the City of any changes upon notification from CPD. It is County staffs experience that
the funding difference between an estimate allocation and the final allocation are small enough to
make administrative changes to the Urban County Action Plan.
2011 CDBG Recommended Modifications
The table below reflects projects recently approved for funding by Council in the amount of
$647,517, and staffs proposed funding reductions based on HUD's new estimated allocation of
$568,358. The bolded and italicized figures represent a reduction in funding from Council's
approved allocation.
Staffs 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 new estimated allocation, funding for these programs are
required to be reduced by$11,874 and $15,831, respectively.
Applicant Project 'Council Staff's
Approved Proposed
Funding Funding_
Public Services 15%maximum of total allocation
CAPSLO Maxine Lewis Homeless Shelter $97,128 $855254
Subtotal, Public Services- 1.5% Max _ ___ _=. $97;128__ - $85,254-
-Housing
City of SLO Property Acquisition for Affordable $184,669 $133,216
Housing (313 South
Habitat for Property Acquisition for Affordable $211,217 $211,217
-Humanity Housing 3212 Rockview
Public Facilities
CAPSLO Homeless Campus Design& Drawings $25,000 $25,000
Subtotal,Housing/Public Facilities $420,886 $369,433
-Program Admin. 20%maximum of total allocation
-City of SLO Housing Element Implementation $77,702 $68y2O3-
-City of SLO CDBG Administration $51,801 $45,469
i
Ad
P
bt
Suotal;,Program mn/Plannmg--20%oo Max
_ _. _ .. _. $129,503 $113,672
Total $647;517 $568,358
When subtracting the public services and program administration reductions from the CDBG
allocation, a balance of$51,454 remains that must be reduced from Housing and Public Facilities
projects. Of these projects, staff recommends making up the difference by reducing the 313
South acquisition by the full amount of $51,454 for the following reasons: 1) The developer,
ROEM Corporation, does not believe the proposed reduction will adversely affect the financial
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Modification of 2011 CDBG Funding Allocations
feasibility of the project based on its pro-forma; 2) Should ROEM Corporation need additional
financial assistance, their 2201 Emily Street project (Village at Broad), which is currently under
construction, has $150,000 in unspent CDBG funds that will likely not be needed and could be
re-allocated back to 313 South acquisition; and 3) The project recently received a
recommendation from County staff for approximately $285,000 in 2011 HOME funds.
2011-2013 Financial Plan
The CAPSLO request for the Maxine Lewis Homeless Shelter is for a total of$141,753, which is
the same amount requested for the past several years. The City has budgeted $41,100 from the
General Fund for the shelter during the 2010-2011 fiscal year. In order to fund CAPSLO at a
level consistent with previous years' support, the Council would have to authorize $56,499 from
the General Fund in fiscal year 2011-2012, which is $15,399 more than the current General Fund
support. The Community Development Department has adjusted the 2011-2013 Housing
Programs operating budget to reflect the additional General Fund support in the amount of
$15,399 for the Maxine Lewis Homeless Shelter and $7,600 for the Housing Programs Manager
position. The Council will consider this General Fund allocation with the 2011-2013 Financial
Plan.
Next Steps
The 2011 CDBG funding modifications adopted by the City Council will be forwarded to the
County Board of Supervisors for inclusion in the 2011 Urban County Action Plan, which
includes funding allocations for all of the participating jurisdictions. The reallocations
previously approved by Council for the 2006 and 2007 program years remain unchanged.
Although the CDBG fiscal year begins on July 1, 2011, funds for projects are not expected to be
available until October.
FISCAL IMPACTS
Decisions made regarding CDBG funding determine how the limited pool of funds the City
receives through the Urban County allocation process is 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. Based on HUD's new
estimated allocation for the 2011 Program Year, additional General Fund support will likely be
needed in fiscal year 2011-2012 and has been accounted for in the 2011-2013 Financial Plan.
ALTERNATIVES
1. The Council may modify the proposed funding amounts.
2. The Council may continue consideration of funding for the CDBG 2011 program year.
Direction should be given to staff regarding additional information needed to make a
decision on funding amounts. The alternative is not recommended as the County Board
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Modification of 2011 CDBG Funding Allocations
of Supervisors will adopt the updated action plan at their June 21, 2011 meeting to submit
to HUD.
ATTACHMENTS
1. Council Resolution No. 10246 (2011 Series)
2. Draft resolution approving the staff recommendation
TACommunity Development\CARS\CDBGCC 2011 Funding Recommendations Reconsideration.DOC
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Attachment. 1
RESOLUTION NO. 10246 (2011 Series)
THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING THE 2011
CDBG PROGRAM AND REALLOCATING $6,205 OF FUNDING FROM PREVIOUS
CDBG PROGRAM YEARS
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 June 21, 2005, 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 March 1, 2011, 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, The Council has considered applications for Community Development
Block Grant (CDBG) funds, public testimony, the Urban County's proposed One-Year Action
Plan and the HRC and staff recommendations included in the agenda report; and
WHEREAS, the Council has also considered previous years' CDBG funding allocations
and determined that amendments are necessary to re-allocate unused funds from completed
projects to other eligible uses.
NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. 2011 Commurifty Development Block Grant Program Amendments. The
City's 2011 Community Development Block Grant Program is hereby approved, as shown in
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. Community Development Block Grant Program Amendments. The 2006
and 2007 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 the
Board's final action o the Urban County's 2011 Consolidated Plan.
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
R 10246
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Resolution No. 10246(2011 Series)
attachment 1
Page 2
Consolidated Plan and CDBG Program, including minor revisions to funding amounts for the
2011 CDBG Program if the City's actual CDBG allocation is different than expected.
Upon motion of Vice Mayor Ashbaugh, seconded by Council Member Carpenter, and on
the following vote:
AYES: Council Members Carpenter, Carter and Smith, Vice Mayor Ashbaugh
and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this 1 s`day of March,2011.
Mayor 61
Marx
ATTEST:
Elaina Cano
City Clerk
APPROVED AS TO FORM:
rine Dietrick
qty Attorney
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Attachment 1
Exhibit "B"
CDBG Reallocations
From/To Applicant Project Funding
From City of SLO 2006—Completed ADA Corrections of $51
City Facilities Project
From CAPSLO 2006 — Completed Prado Day Center $982
Im rovement Project
From HASLO 2007 — Completed Anderson Hotel Fire $5,172
Sprinkler System Project
Total From $6405 ,
To City of SLO 2009 - Property Acquisition for $6,205
A ordable Housing 313 South
Total To $6405
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Attachment 2
RESOLUTION NO. XXXX-11
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN LUIS OBISPO APPROVING MODIFICATIONS
OF 2011 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, 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 June 21, 2005, 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 March 1, 2011, 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 22, 2011, County staff received HUD's estimated funding
allocations for the 2011 CDBG Program Year and informed the City that its allocation will be
$568,358, which is $79,159 (11.6%) less than previously approved by Council; and
WHEREAS, the City Council has considered HUD's new estimated funding allocations
and determined that modifications are necessary to balance the 2011 CDBG Program Year
budget.
BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows:
Section 1. 2011 Community Development Block Grant Program Amendments. The
City's 2011 Community Development Block Grant Program is hereby approved, as shown in
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 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 2011 Consolidated Plan.
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Attachment 2
Resolution No. (2011 Series)
Page 2
Section 3. 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 minor revisions to funding amounts for the
2011 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 7`h day of June, 2011.
Mayor Jan Marx
ATTEST:
Elaina Cano
City Clerk
APPROVED AS TO FORM:
C5C4MstineDietrick
City Attorney
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