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HomeMy WebLinkAbout01-19-2016 Item 06 - Authorize A Grant Application for the Housing Related Parks Program Meeting Date: 1/19/2016 FROM: Michael Codron, Community Development Director Prepared By: Jenny Wiseman, Planning Technician SUBJECT: AUTHORIZE A GRANT APPLICATION FOR THE HOUSING RELATED PARKS PROGRAM. RECOMMENDATION Adopt a resolution (Attachment A) authorizing staff to apply to the California State Department of Housing and Community Development (HCD) for $288,650 of Housing Related Parks (Parks) Grant program funds to be applied towards the Sinsheimer Park Playground Renovation project. DISCUSSION Background On October 26, 2015, HCD released a Notice of Funding Availability (NOFA) for the Housing Related Parks (Parks) Grant program. The NOFA included $30 million in new funds for the Parks program. This program is designed to encourage the development of lower income housing. The Parks Grant program makes awards to eligible jurisdictions, on a per -bedroom basis for each extremely-low, very-low and low income affordable residential units with documented building permits or a certificate of occupancy issued during the designated program period from January 1, 2010 to December 31, 2015. The Parks Grant program provides funds for eligible parks and recreation projects that benefit the community and add to the quality of life; grants are awarded on a non-competitive basis. The Parks Grant program guidelines are available for review in the Council Reading File. The City had five affordable housing projects that qualified during the designated program period. One eligible housing project was South Hills Crossing, located at 313 South Street, which includes 42 extremely-low, very-low and low income affordable units ranging from one to three-bedrooms. Another eligible housing project was Moylan Terrace, an 81 unit development with 16 very-low and low income units. The remaining qualifying projects included Habitat for Humanity’s three single family homes on Rockview, Transitions Mental Health’s eight affordable transitional dwelling units, and eight affordable units located at 3229/3239 Broad. Funding Amount Requested The grant requires the applicants to meet a minimum grant amount of $75,000. The City has exceeded the minimum $75,000 threshold requirement and will be applying for $288,650. HCD supplies a formula and chart to calculate the total award amount, which is based upon the affordability level and number of bedrooms constructed in each of the eligible projects. HCD 6 Packet Pg. 69 also offers four opportunities to collect bonus awards, including: 1. Infill projects; 2. Projects in conformance with the Regional Blueprint Plan; 3. Projects located within a park deficient community; and 4. Projects located within a disadvantage community. The HCD chart used for calculation of the potential award is shown below: Qualifying Park Project The Parks Grant funds must be used for creation or rehabilitation of parks and recreation facilities that meet the program guideline eligibility requirements. Staff recommends applying the grant funds toward the Sinsheimer Park Playground Renovation (“Playground”) project. The Playground project, which is identified in the 2013-15 Capital Improvement Plan of the Financial Plan (page 3-395 through 3-398), includes complete renovation and expansion of the playground area. Amenities include new multi-level play equipment, protective surfacing, accessible walkways, picnic tables, benches, new irrigation, trees, and drought tolerant plantings. The new accessible walkways will allow access to the upper play area as well as the second level of the play “tower” structure and the hillside embankment. Additionally, the project will include improvements to the restroom facilities to bring them into compliance with current accessibility regulations. The preliminary estimate of construction costs is approximately $795,000. Applying for the Parks Grant makes sense because renovation or rehabilitation of a playground meets the Project Identifier from Project Summary Sheet Unit Count Bonus Awards TOTAL A B C D E F G Base Award Amount # o f E xt r e m e l y Low Inc o m e un i t s # V er y Low un i t s # o f L ow un i t s # o f E xt r e m e l y Low In c o m e be d r o o m s # o f V er y Low be d r o o m s # o f L ow be d r o o m s Tot a l # o f b e d r o o m s Inf i l l u n i t s ? In fi l l S u p p o r t i n g / R e g i o n a l Bl u e p r i n t ? Pa r k D e f i c i e n t Co m m u n i t y ? Di s a d v a n t a g e d Co m m u n i t y ? Total Bonus Funds Total Award Amount 3229/3239 Broad 8 12 11 $6,000 Yes Yes No Yes $13,800 $19,800 Transitions Mental Health (1306 Nipomo) 8 8 8 $6,000 Yes Yes Yes Yes $13,200 $19,200 South Hills Crossing 5 28 9 12 64 19 95 $69,500 Yes Yes No Yes $109,250 $178,750 Moylan Terrace 2 14 6 28 32 $17,000 Yes Yes No Yes $36,800 $53,800 3208 Rockview 1 3 3 $2,250 Yes Yes No Yes $3,450 $5,700 3210 Rockview 1 3 3 $2.250 Yes Yes No Yes $3,450 $5,700 3212 Rockview 1 3 3 $2,250 Yes Yes No Yes $3,450 $5,700 TOTAL 5 41 31 12 85 59 156 $105,250 $183,400 $288,650 6 Packet Pg. 70 eligibility requirements and since the total project cost of $799,000 exceeds the estimated grant amount of $288,650, the grant will be fully expended. Consistency with Grant Management Policy The City has adopted a grant management policy to insure that new grant projects are consistent with City goals and that there are sufficient resources to administer funds awarded through new grant programs. A copy of the City’s Grant Management Policy is available in the Council Reading File. In this case, staff recommends that the grant funds be applied to an existing Capital Improvement Program (CIP) project, the Sinsheimer Park Playground Renovation project. This project was first identified as one of Council’s 2013-15 Financial Plan goals for infrastructure maintenance and the construction documents are nearly complete. Therefore, the proposed new grant program applied to this existing CIP project would not create a substantial new work load, is consistent with City goals, and the full grant amount can be expended almost immediately upon receipt. City Manager or Assistant City Manager to Execute Program Related Documents The attached resolution provides the City Manager or the Assistant City Manager (or authorized designee) with the necessary authority to execute program related documents, including an application, standard agreement and any amendments thereto (Attachment A, Draft Resolution). To implement the program after award, the Director of Public Works is also specifically authorized to submit payment requests, provide status updates, and provide program/project closeout documents to facilitate program implementation. FISCAL IMPACTS The Parks Grant program can be administered using staff resources already programmed for the Sinsheimer Park Playground Renovation project and, therefore; the program is not expected to impact the General Fund staffing costs. In fact, applying the Parks Grant to the Sinsheimer Park Playground Renovation project may allow General Funds currently programmed for the project to be used for other playground or park maintenance projects. Any unused funding at the end of the project will be returned to the Playground Master Account for use on future park projects. CONCURRENCES The Sinsheimer Park Playground Renovation was approved by the Parks and Recreation Commission at its April 1, 2015 meeting. The Public Works Department concurs with the use of Parks Grant funds to offset General Fund dollars for the playground renovation. ALTERNATIVES 1. Do not apply for the grant. The Council could direct staff to not apply for the grant. Staff does not recommend this alternative. The City should take advantage of all available grant resources to supplement the General Fund revenues which will help accomplish City goals and objectives. 6 Packet Pg. 71 2. Choose a different qualifying park. The Council may propose a different qualifying park project instead of applying the grant to the Sinsheimer Park Playground Renovation project. Other qualifying park projects could include park maintenance projects currently programed such as sport court resurfacing and bleacher replacements at Santa Rosa Park and Meadow Park. Staff does not recommend applying the grant to these other park maintenance projects as these projects are smaller in scale and may not require the full amount of the grant. Attachments: a - Resolution Authorizing Housing Related Parks Grant Application Council Reading File - City of San Luis Obispo Grant Management Policy Council Reading File - 2015 Housing Related Parks Program Guidelines 6 Packet Pg. 72 R ______ RESOLUTION NO. XXXX(2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING AN APPLICATION IN THE AMOUNT OF $288,650 TO THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR HOUSING RELATED PARKS PROGRAM FUNDS TO PROVIDE FINANCIAL ASSISTANCE TO THE PUBLIC WORKS DEPARTMENT FOR PARK UPGRADES AT SINSHEIMER PARK WHEREAS, the City of San Luis Obispo, a charter city and municipal corporation, wishes to apply for and receive an allocation of funds through the Housing Related Parks (Parks) Grant program; and WHEREAS, the California Department of Housing and Community Development (hereinafter referred to as “HCD”) has issued a Notice of Funding Availability (“NOFA”) for the Parks Grant program established by Chapter 8, Sections 50700 through 50704.5 of Part 2 of Division 31 of the Health and Safety Code (the “statute”). Pursuant to the statute, HCD is authorized to approve funding allocation utilizing monies made available by the State legislature to the Parks Grant program, subject to the terms and conditions of the Parks Grant program Guidelines adopted as amended by HCD on October 26, 2015; and WHEREAS, the City of San Luis Obispo wishes to submit an application to obtain from HCD an allocation of Parks Grant program funds in the amount of $288,650; and WHEREAS, HCD is authorized to approve funding allocations for the Parks Grant program, subject to the terms and conditions of the NOFA, Program Guidelines, Application Package, and Standard Agreement; and WHEREAS, at the time of application, the City of San Luis Obispo has a General Plan Housing Element that is certified by HCD; and WHEREAS, at the time of the application, the City of San Luis Obispo has a General Plan in conformance with the Regional Blueprint Plan as required by HCD. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows: SECTION 1. Application. The City of San Luis Obispo shall submit to HCD an application to participate in the Parks Grant program in response to the NOFA issued on October 26, 2015, which will request financial assistance to help in the purchase and installation of new multi-level play equipment, protective surfacing, accessible walkways, and other related park improvements at Sinsheimer Park. SECTION 2. Eligible Activities. If the application for funding is approved, the City of San Luis Obispo hereby agrees to use the Parks Grant program funds for eligible activities in the manner presented in the application as approved by HCD and in accordance with program 6.a Packet Pg. 73 At t a c h m e n t : a - R e s o l u t i o n A u t h o r i z i n g H o u s i n g R e l a t e d P a r k s G r a n t A p p l i c a t i o n ( 1 2 2 0 : H o u s i n g R e l a t e d P a r k s G r a n t A p p l i c a t i o n Resolution No. (2016 Series) Page 2 Guidelines as cited above. The City of San Luis Obispo may also execute any and all other instruments necessary or required by HCD for participation in the Parks Grant program. SECTION 3. Authorization. The City Council hereby authorizes the City Manager or the Assistant City Manager to execute in the name of the City of San Luis Obispo, the application, the Standard Agreement, and all other documents required by HCD for participation in the Parks Grant program, and any amendments thereto. In addition, the City Council hereby authorizes the Director of Public Works to submit payment requests, provide status updates and provide program/project closeout documents to facilitate program implementation. Upon motion of , seconded by , and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this ______ day of________ 2016. ____________________________________ Mayor Jan Marx ATTEST: ____________________________________ Traci R. McGinley, MMC City Clerk APPROVED AS TO FORM: ____________________________________ Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ______________________________ Traci R. McGinley, MMC City Clerk 6.a Packet Pg. 74 At t a c h m e n t : a - R e s o l u t i o n A u t h o r i z i n g H o u s i n g R e l a t e d P a r k s G r a n t A p p l i c a t i o n ( 1 2 2 0 : H o u s i n g R e l a t e d P a r k s G r a n t A p p l i c a t i o n