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HomeMy WebLinkAbout03-07-2017 Item 07 Public Hearing - 2017 Community Development Block Grant Funding Recommendations Meeting Date: 3/7/2017 FROM: Michael Codron, Community Development Director Prepared By: Jenny Wiseman, Acting Housing Programs Manager SUBJECT: 2017 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING RECOMMENDATIONS RECOMMENDATION 1. As recommended by the Human Relations Commission (HRC), adopt a Resolution (Attachment E) to approve funding allocations for $442,462 of CDBG funds for the 2017 Program Year; and 2. Reallocate $31,200 in 2014 CDBG funds from the Women’s Shelter Program to Family Care Network, Inc. DISCUSSION Background The City’s annual CDBG review process provides Council and the public with an opportunity to provide early input in the grant award process and assist the City Council with direct input to prioritize community needs. One of the main purposes of the process is to maintain an open, inclusive and fair grant application process. The HRC advises the Council on community needs and funding recommendations. The five major steps in the 2017 CDBG review process are as follows: 1. HRC hosts a “Needs Workshop”: The HRC hosted a public hearing on September 7, 2016, to inform the public about upcoming funding amounts, how to apply for grants, and to receive community input on grant funding needs. The HRC discussed the community needs identified during public comment and adopted grant funding priorities for Council consideration. 2. Council priority-setting: On October 18, 2016, the City Council endorsed the HRC’s recommended CDBG funding priorities for 2017. The ranked priorities established by the HRC and City Council are listed below: 1. Provide emergency and transitional shelter, homelessness prevention and services. 2. Develop and enhance affordable housing for low and very-low income persons. 3. Promote accessibility and/or removal of architectural barriers for the disabled and elderly. 4. Enhance economic development (to include seismic retrofit, economic stability, low and moderate income jobs). These priorities were used by staff and the HRC in reviewing the applications to develop their recommendations for the 2017 CDBG funds. Packet Pg. 55 7 3. CDBG applications hearing: On December 7, 2016, the HRC held a public hearing to review the 2017 CDBG applications with respect to the Council’s adopted funding priorities, and forwarded its funding recommendations to the County for inclusion in the 2017 Draft Action Plan. The Draft Action Plan review period lasts until February 28, 2017. 4. Reservation Letter: On January 3, 2017, Council approved a CDBG Reservation Letter to reserve $200,000 in 2017 CDBG funds for Transitions Mental Health Association’s (TMHA) property acquisition costs for the Bishop Street Studios project. Bishop Street Studios will consist of renovating the existing Sunny Acres building and new construction of 21 units, creating 34 new affordable units to income eligible residents served by TMHA’s mental health programs. In order for the project to move forward, TMHA must apply for highly competitive Low Income Housing Tax Credits requiring committed funding sources at time of application. Since Tax Credit applications were due on March 1, 2017, the County requested all projects applying for Tax Credits obtain a Reservation Letter prior to the March CDBG public hearing. After approved by Council, the letter was sent to the County and approved by the Board of Supervisors on February 7, 2017. 5. CDBG Program Hearing: On March 7, 2017, the City Council will hold a public hearing to consider the HRC’s recommendation as shown in the Draft Action Plan and adopt recommendations for projects to be funded during the 2017 CDBG Program Year. This action will be submitted to the County Board of Supervisors for inclusion in the final 2017 CDBG Action Plan for the San Luis Obispo Urban County. HRC and Staff Recommended 2017 CDBG Funding Allocations On December 7, 2016, the HRC recommended funding allocations of $442,462 in 2017 CDBG funds and reallocating $31,200 in 2014 CDBG funds, further explained below. The preliminary funding estimate was provided by the County based on available information from the U.S. Department of Housing and Urban Development (HUD). The table below lists the projects recommended for funding by the HRC in the amount of $442,462. Packet Pg. 56 7 Applicant Project 2017 CDBG Funding Recommendation 2014 CDBG Reallocation Public Services (Maximum allocation allowed: 15% of $442,462 = $66,369) CAPSLO Maxine Lewis Homeless Shelter $66,369 Housing and Public Facilities Transitions Mental Health Association Affordable Housing Property Acquisition – Bishop Street Studios $200,000 Family Care Network Estelita Ct. Supported Housing Rehabilitation $87,601 $31,200 Program Administration (Maximum allocation allowed: 20% of $442,462 = $88,492) City of SLO CDBG Administration $30,972 County of SLO1 CDBG Administration $57,520 Total $442,462 $31,200 1CDBG administration funding share per the 2015-17 Cooperation Agreement between the City and County Seven applications for the 2017 CDBG Program Year were received by the City, totaling $648,782; approximately 46% more than anticipated available funding. Attachment A includes a list of the applications submitted to the City for CDBG funding and the recommended funding amounts. Attachment B includes the December 7, 2016, HRC staff report with a description of each funding request, followed by the meeting minutes as Attachment C. The City is limited to using 15% of its allocation for public service uses with CAPSLO requesting $125,000 for the homeless shelter. In the past, the City has chosen to provide 100% of this allowance to the shelter to maximize the benefit of these funds. The City will continue this in 2017 and is recommending $66,369 in funding. To help offset the difference, the City has budgeted $48,000 from the General Fund for the shelter during the 2017-18 fiscal year. The recommendation also reflects the maximum allowed grant allocation of 20% for program administration. The City has entered into a Cooperation Agreement with the County for program years 2015-17. This Agreement includes a provision for the County to retain 2/3 of the 20% allocation to cover administrative costs associated with City funded projects. CDBG administration includes processing CDBG applications, completing environmental clearances, preparing contracts, preparing quarterly reports and monitoring projects as they progress. The recommendation is consistent with the 2015-17 Cooperation Agreement. CDBG Reallocation On March 31, 2016, the Women’s Shelter informed staff that they could no longer carry out their plumbing rehabilitation project that had received $31,200 in 2014 CDBG funding (Attachment D). As the City is faced with timely expenditure requirements, Staff is now recommending that the funds be reallocated to Family Care Network’s rehabilitation project. The rehabilitation project is ready to move forward and will be able to use the funds towards their project in a Packet Pg. 57 7 timely manner. Next Steps Final CDBG allocations from HUD have not been released; should an increase in CDBG funds be announced, Staff recommends the additional funds be split evenly between both housing projects after subtracting the public services and program administration increases. The Draft Council Resolution reflects this possible modification (Attachment E, Draft Resolution). The 2017 CDBG funding recommendations adopted by the City Council will be forwarded to the County Board of Supervisors for inclusion in the 2017 Urban County Action Plan, which includes funding allocations for all of the participating jurisdictions. The Board of Supervisors is scheduled to review the Action Plan on April 11, 2017. Although the CDBG fiscal year begins on July 1, 2017, funds for projects awarded by the City Council 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 is spent. To the extent that projects are funded through CDBG, the burden on the City’s General Fund and Affordable Housing 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 or Affordable Housing Fund. ALTERNATIVES 1. The Council may modify the proposed funding amounts within the applicable funding constraints outlined in this report. 2. The Council may choose to fund an eligible CDBG application not recommended by the HRC or staff. 3. The Council may continue consideration of funding for the 2017 CDBG Program Year. Staff does not recommend this action because the City’s recommended funding priorities must be received by the County by March 31, 2017, in order to be included in the final 2017 Action Plan. Attachments: a - 2017 CDBG Funding Recommendations b - Human Relations Commission Staff Report - December 7, 2016 c - Human Relations Commission December 7, 2016 Approved Minutes d - Women's Shelter Program CDBG Declination Letter to City of SLO e - Draft Resolution f - Council Reading File - 2017 Community Development Block Grant Applications Packet Pg. 58 7 Amount Requested2017 CDBG2014 CDBG ReallocationGeneral Fund (Note 1)(Note 2)(Note 3)1Maxine Lewis Homeless Shelter 125,000$ 66,369$ -$ 48,000$ 114,369$ 2Senior Homemaker Program 5,000$ -$ -$ -$ -$ SUBTOTAL, Public Services 130,000$ 66,369$ -$ 48,000$ 114,369$ 3Affordable Housing Site Acqusition and Offsite Improvements: Bishop Street Studios200,000$ 200,000$ -$ -$ 200,000$ 4Estelita Ct. Supported Housing Rehab125,290$ 87,601$ 31,200$ -$ 118,801$ 5ADA Street Improvements - Curb Ramps105,000$ -$ -$ -$ -$ SUBTOTAL, Housing/Public Facilities 430,290$ 287,601$ 31,200$ -$ 318,801$ 6aCDBG Administration30,972$ 30,972$ -$ -$ 30,972$ 6bCounty of SLO (Note 4)CDBG Administration57,520$ 57,520$ -$ -$ 57,520$ 88,492$ 88,492$ -$ -$ 88,492$ 648,782$ 442,462$ 31,200$ -$ 521,662$ 1Estimated Funding for CDBG Program Year 2017: $442,462234Reallocation of $31,200 in 2014 CDBG awards from Women's Shelter Program Award Returned to City in late 2015 Tentative General Fund allocations per current policy, updates for FY 17-18 pending.CDBG administration funding share per the 2015-17 Cooperation AgreementHousing & Public Facilities Program Administration $88,492 Available (20% of $442,462)Public Services $66,369 Available (15% of $442,462) Activity/ ProgramApplicantCity of SLOSUBTOTAL, Program Admin/Planning TOTALNOTES:HASLO & TMHAFamily Care Network, Inc.City of SLO 2017 CDBG Funding RecommendationsAmount RecommendedCAPSLOLifesteps Foundation, Inc No.TotalPage 1Packet Pg. 597 Meeting Date: December 7, 2016 Item Number: 2 2 HUMAN RELATIONS COMMISSION AGENDA REPORT SUBJECT: 2017 CDBG Funding Recommendations PROJECT ADDRESS: Citywide BY: Jenny Wiseman, Acting Housing Programs Manager Phone Number: 781-7010 e-mail: jwiseman@slocity.org FILE NUMBER: GENP-4175-2016 BACKGROUND The City received a total of five 2017 CDBG applications requesting a total of $560,290. Estimated funding for the 2017 Program Year is $442,462. Of the total estimated allocation, 20% of the funds are reserved for administrative costs. Since the County has taken over the main portion of each jurisdiction's administrative duties, 65% of the total administrative funds for the City are claimed by the County and only 35% of the total administration funds stay with the City. Therefore, of the City’s $442,462 estimated allocation, the City will receive $30,972 for administration purposes and $57,520 goes to the County. In addition, the City has $31,200 in additional CDBG funds to award in the 2017 CDBG cycle from the unsuccessful 2014 CDBG award to the Women’s Shelter Program for renovations to their facility. In late 2015, the Women’s Shelter Program returned the funds as they were unable to proceed with the project due to funding and prevailing wage limitations. FUNDING PRIORITIES On October 18, 2016, the City Council endorsed the HRC’s recommended CDBG funding priorities for 2017. The ranked priorities established by the HRC and City Council are: 1. Provide emergency and transitional shelter, homelessness prevention and services. 2. Develop and enhance affordable housing for low and very-low income persons. 3. Promote accessibility and/or removal of architectural barriers for the disabled and elderly. 4. Enhance economic development (to include seismic retrofit, economic stability, low and moderate income jobs). PROGRAMS RECOMMENDED FOR FUNDING The above priorities are used as the basis for making recommendations regarding the 2017 CDBG applications. Staff is recommending funding three of the five applications, as shown in Attachment A, these three programs are further described below. The recommendations were previously reviewed and approved by the City’s Capital Improvement Plan Committee on November 7th. A copy of each of the 2017 CDBG applications is provided for HRC review (Attachment B). Packet Pg. 60 7 GENP-4175-2016 (Citywide) Page 2 Project Overview and Funding Recommendations 1. CAPSLO (Maxine Lewis Homeless Shelter): CAPSLO has requested $125,000 in CDBG funds to assist with operational costs of the Maxine Lewis Memorial Homeless Shelter (MLMS). The City typically chooses to fund 100% of the public services allocation of CDBG funds (15% total) to the MLMS. The estimated public services allocation is $66,369 and therefore the City is recommending funding $66,369 to CAPSLO. The City also helps fund MLMS with General Fund money. Should CAPSLO have remaining funds when 40 Prado opens, those funds will be use to operate 40 Prado. 2. Transitions Mental Health Association (Bishop Street Studios): TMHA and the Housing Authority of San Luis Obispo are partnering to develop Bishop Street Studios, a 34-unit affordable housing development which will house clients participating in TMHA mental health programs. They have requested $200,000 in CDBG funds to cover site acquisition and offsite improvements. Staff is recommending funding the entire request of $200,000 to this very important affordable housing project. The project has received full entitlements and will be applying for Low Income Housing Tax Credits in March 2017. Should the HRC support funding this project, a reservation letter will be sent to the City Council prior to the March 2017 hearing to ensure CDBG funding will be included in their tax credit application. Any CDBG funds will be contingent upon a successful tax credit application. 3. Family Care Network, Inc. (Estelita Court Supported Housing Rehabilitation): FCNI has requested $125,290 in CDBG funds to renovate their existing four-unit apartment building which houses up to seven transitional aged youth residents. These individuals are transitioning out of foster care and are extremely or very-low income. The supported housing complex is in need of a wide range of repairs including: replacing walkways and driveway asphalt, repairing the roof and flooring, installing energy efficiency windows and appliances, installing increased security doors and lighting, and bathroom renovations. Staff is recommending to fund $118,801 towards this project. PROGRAMS NOT RECOMMENDED FOR FUNDING In addition, staff is recommending not funding two of the five 2017 CDBG Applications. These programs and recommendation reasoning are further described below. 4. Lifesteps Foundation, Inc. (Senior Homemaker Program): Lifesteps Foundation, Inc. (LFI) has requested $5,000 to provide additional caregiving support to seniors through their Senior Homemaker Program. Typically, the City recommends all public service funds be awarded to the Homeless Shelter as that is the number one funding priority from Council. Since this program is also categorized as a public service, funding the project would reduce available funding to the Homeless Shelter, which is a higher priority. The County has also requested a minimum of $8,000 for all CDBG applications. Staff recommends the applicant apply to the City’s Grants-In-Aid grant program to potentially fund the project. 5. City of San Luis Obispo (Curb Ramps): The City of San Luis Obispo Public Works Department has requested $105,000 for curb ramp replacement projects to remove architectural barriers for disabled and elderly persons. Staff had previously recommended the project receive $58,000 in CDBG funding; however, at the CIP Meeting on November 7th, the City Engineer and Public Works Director both stated that the proposed funding recommendation would not be enough to Packet Pg. 61 7 GENP-4175-2016 (Citywide) Page 3 justify prevailing wage for the entire project and decided to allocate those funds to a higher priority project. HRC Role These recommendations are provided for the benefit of the public and HRC. The HRC’s role is to consider these recommendations in light of public testimony and either, (1) accept the allocations proposed if the HRC concurs, or (2) make changes so that the recommendation reflects the views o f a majority of the Commission. The adopted priorities should guide the Commission throughout the discussion. The HRC’s recommended allocations will be forwarded to the County for incorporation into the Draft Action Plan for the 2017 CDBG program year. The entire Draft Action Plan will be considered by the Council in March 2017. Attachments A. 2017 CDBG Funding Recommendations B. 2017 CDBG Applications Packet Pg. 62 7 Amount Requested2017 CDBG2014 CDBG ReallocationGeneral Fund (Note 1)(Note 2)(Note 3)1Maxine Lewis Homeless Shelter 125,000$ 66,369$ -$ 48,000$ 114,369$ 2Senior Homemaker Program 5,000$ -$ -$ -$ -$ SUBTOTAL, Public Services 130,000$ 66,369$ -$ 48,000$ 114,369$ 3Affordable Housing Site Acqusition and Offsite Improvements: Bishop Street Studios200,000$ 200,000$ -$ -$ 200,000$ 4Estelita Ct. Supported Housing Rehab125,290$ 87,601$ 31,200$ -$ 118,801$ 5ADA Street Improvements - Curb Ramps105,000$ -$ -$ -$ -$ SUBTOTAL, Housing/Public Facilities 430,290$ 287,601$ 31,200$ -$ 318,801$ 6aCDBG Administration30,972$ 30,972$ -$ -$ 30,972$ 6bCounty of SLO (Note 4)CDBG Administration57,520$ 57,520$ -$ -$ 57,520$ 88,492$ 88,492$ -$ -$ 88,492$ 648,782$ 442,462$ 31,200$ -$ 521,662$ 1Estimated Funding for CDBG Program Year 2017: $442,4622Reallocation of $31,200 in 2014 CDBG awards from Women's Shelter Program Award Returned to City in late 20153Tentative General Fund allocations per current policy4CDBG administration funding share per the 2015-17 Cooperation AgreementHousing & Public Facilities Program Administration $88,492 Available (20% of $442,462)Public Services $66,369 Available (15% of $442,462) Activity/ ProgramApplicantCity of SLOSUBTOTAL, Program Admin/Planning TOTALNOTES:HASLO & TMHAFamily Care Network, Inc.City of SLO 2017 CDBG Preliminary Funding RecommendationsAmount RecommendedCAPSLOLifesteps Foundation, Inc No.TotalPage 1Packet Pg. 637 Human Relations Commission Minutes Wednesday, December 7, 2016 Regular Meeting of the Human Relations Commission CALL TO ORDER A Regular Meeting of the San Luis Obispo Human Relations Commission was called to order on Wednesday, December 7, 2016 at 5:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Chair Tasseff. ROLL CALL Present: Commissioners Julia Jones, Paul Orton, Carol Sexton, Nancy Welts, Vice Chair Robert Clayton and Chair Michelle Tasseff Absent: Commissioner Gene Strohl Staff Present: Acting Housing Programs Manager Jenny Wiseman, Planning Technician Steven Orozco, Associate Planner Rebecca Gershow CONSIDERATION OF MINUTES 1. Minutes of the Human Relations Commission Meeting of November 2, 2016 Motion by Vice Chair Clayton, second by Commissioner Welts, carried 6-0 to approve the Minutes of the Human Relations Commission meeting of November 2, 2016. BUSINESS ITEMS 2. Neighborhood Matching Grants Presentation Associate Planner Gershow gave an annual update to the Commission on the Neighborhood Matching Grants. Ms. Gershow also provided a PowerPoint Presentation which described the background of the program, the grant selection process and the HRC`s role, the number of applicants, the use of funds, and pictures from events funded by the grant. Vice Chair Clayton encouraged having events like the ice cream social to bring the community together. Commissioner Sexton and Orton suggested to Ms. Gershow to inform the HRC on future events. Packet Pg. 64 7 City of San Luis Obispo, Title, Subtitle Human Relations Commission Minutes of December 7, 2016 Page 2 PUBLIC HEARING 3.2017 Community Development Block Grant (CDBG) Draft Funding Recommendations Acting Housing Programs Manager Wiseman narrated a PowerPoint presentation which provided an overview of the Community Development Block Grant Program and the HRC`s role associated with the grant. Ms. Wiseman also updated the Commission on the applicants who applied for funding and the amounts requested. PUBLIC COMMENT Chair Tasseff opened the public hearing. Michael Kaplan, Transitions Mental Health Association, expressed gratitude for the recommendation. Mr. Kaplan described the project and the need for funding the project. Bryn Smith, Community Action Partnership of San Luis Obispo, would like to thank the HRC and the City of San Luis Obispo for recommendations to fund projects for housing. Ms. Smith summarized services provided by the Maxine Lewis Memorial Shelter and the Prado Day Center. Ms. Smith also described how CAPSLO uses the grant funds to provide positive services in San Luis Obispo. Joanna Balsamo, Family Care Network, would also like to thank the HRC and the City of San Luis Obispo for the recommendation. Ms. Balsamo described the need for funding and the use of funding at Family Care Network. Scott Smith, Housing Authority of San Luis Obispo (HASLO), would like to thank staff for everything they do and for considering the projects. Mr. Smith also described HASLO`s role within the community and how they strive to create a positive impact for the community. There being no others desiring to speak on this item, the public comment was closed. After final discussion, a motion to approve the CDBG Recommendations was made by Vice Chair Clayton, second by Commissioner Jones, Carried 6-0. COMMISSIONER AND STAFF COMMUNICATIONS 4.Final Review of 2017-19 Advisory Body Goals Acting Housing Programs Manager Wiseman reviewed the goals selected by the HRC and how to accomplish the goals. Motion by Vice Chair Clayton to approve the 2017- Advisory Body Goals, Second by Commissioner Jones. Packet Pg. 65 7 City of San Luis Obispo, Title, Subtitle Human Relations Commission Minutes of December 7, 2016 Page 3 5.Consider Cancellation of January 2017 Meeting The January HRC Meeting will be cancelled. Next meeting will be held February 1st. ADJOURNMENT There being no further business, Chair Tasseff adjourned the meeting at 6:04 pm. to the next regular meeting scheduled for Wednesday February 1, 2016 at 5:00 p.m. in the Council Hearing Room at 990 Palm Street, San Luis Obispo. APPROVED BY THE HUMAN RELATIONS COMMISSION ON FEBRUARY 1, 2016 Respectfully submitted, Steven Orozco Recording Secretary Packet Pg. 66 7 Packet Pg. 67 7 R ______ RESOLUTION NO. XXXX (2017 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE 2017 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING RECOMMENDATIONS (GENP-4175-2016) 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, Paso Robles, Pismo Beach, 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 on September 23, 2014, 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 7, 2017, 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 BE IT RESOLVED, by the 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. 2017 Community Development Block Grant Program Amendments. The City’s 2017 Community Development Block Grant Program is hereby approved, as shown in Exhibit A, with reallocation of previous 2014 CDBG funds. The Community Development Director is authorized to approve final dollar amounts once HUD releases allocations with the direction to make up differences in the two amounts. Any additional increase in funding shall be allocated evenly to each funded housing 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 2017 Consolidated Plan. Section 4. Community Development Director Authority. The Community Development Director is authorized to act on behalf of the City in executing grant agreements Packet Pg. 68 7 Resolution No. _____ (2017 Series) Page 2 R ______ and other actions necessary to implement the approved Consolidated Plan and CDBG Program, including revisions to funding amounts for the 2017 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 adopted this 7th day of March, 2017. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. 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 ______________, _________. ____________________________________ Carrie Gallagher City Clerk Packet Pg. 69 7 Resolution No. _____ (2017 Series) Page 3 R ______ Exhibit A 2017 CDBG Funding Recommendations Packet Pg. 707 2017 Community Development Block Grant (CDBG) Funding Recommendations March 7, 2017 Recommendation 1. As recommended by the Human Relations Commission (HRC), adopt a resolution to approve funding allocations for $442,462 of CDBG funds for the 2017 Program Year; and 2. Reallocate $31,200 in 2014 CDBG funds from the Women's Shelter Program to Family Care Network, Inc. 3/17/2015 1 CDBG Program Objectives 1. Federal program administered by U.S. Department of Housing and Urban Development (HUD) 2. In order to meet program objectives, CDBG funded projects must: ■ Benefit low-income persons and households with incomes below 80% of area median income (currently $61,700 for a 4 -person household) ■ Prevent or eliminate slums or blight ■ Meet urgent community development needs that pose a serious, immediate threat to public health or welfare CDBG Process Overview 1. HRC Community Needs Workshop — September 2016 2. Council established funding priorities — October 2016 3. Preliminary review by City CIP Committee — November 2016 4. HRC reviewed CDBG applications and made recommendations based on funding priorities — December 2016 5. City Council forwards its funding decisions to the Board of Supervisors to be included in the 2017 Urban County CDBG Action Plan - Tonight I a 3/17/2015 2 VT r o� 2017 CDBG Funding Priorities 1) Provide emergency and transitional shelter, homelessness prevention and services. 2) Develop and enhance affordable housing for low and very -low income persons. 3) Promote accessibility and/or removal of architectural barriers for the disabled and elderly. 4) Enhance economic development (including seismic retrofit, economic stability, low and moderate income jobs). 5 CDBG Funding Recommendations Public Services (15% of $442,462) CAPSLO Maxine Lewis Memorial Shelter $66,369 Housing & Public Facilities TMHA Affordable Housing Property $200,000 Acquisition (Bishop St. Studio) Family Care Estelita Ct. Supportive Housing $87,601 $31,200 Network Rehabilitation Program Administration (20% of $442,462) City of SLO CDBG Admin $30,972 County of SLO CDBG Admin $57,520 Total $442,462 $31,200 3/17/2015 3 Projects Recommended for Funding x Maxine Lewis Homeless Shelter ■ $66,369 ■ Public Services — Limited to 15% of total CDBG allocation ■ TMHA (Bishop Street Studios) ■ $200,000 Affordable Housing Property Acquisition, 34 units ■ Family Care Network, Inc. (Supported Housing Rehabilitation) ■ $87,601 (plus $31,200 in 2014 CDBG Reallocation) ■ Rehabilitate supportive housing facility for transitional youth ■ CDBG Administration ■ City of SLO = $30,972 ■ County of SLO = $57,530 ■ Limited to 20% of total CDBG allocation Projects Not Recommended for Funding ■ Lifesteps Foundation, Inc. ■ Senior Homemaker Program ■ City of San Luis Obispo ■ ADA Street Improvements (Curb Ramps) �v.C6 7 8 3/17/2015 4 Recommendation 1. As recommended by the Human Relations Commission (HRC), adopt a resolution to approve funding allocations for $442,462 of CDBG funds for the 2017 Program Year; and 2. Reallocate $31,200 in 2014 CDBG funds from the Women's Shelter Program to Family Care Network, Inc. 3/17/2015 5 Reservation Letter ■ On January 3rd, Council approved a CDBG Reservation Letter for $200,000 to Transitions Mental Health Association (TMHA). ■ Required prior to Low Income Housing Tax Credit Application deadline. m Due March 1, 2017 ■ After approved by Council, the letter was sent to the County and approved by the Board of Supervisors on February 7, 2017 Recent CDBG Funding History $800,000 .— $700,000 $600,000 $500,000 $400,000 $300,000 $ 200,000 $100,000 $o City of San Luis Obispo CDBG Funding Allocations 2010-2017 2010 2011 2012 2013 2014 2015 2016 2017 3/17/2015 2 Staff & HRC Recommendations 2017 CDBG Funding Recommendations No, Appllranl Activity/ Program I Amounl 2077 2811 CDB- General Requested CDB- ReeRocalba Fund Total �Nvly 1 v19 7 Note 3 Public Servkc,s 566,369 Available (15% of 5442,462) 1 CAPSLO $ 125,000 f 86,389 S - S 48,000 $ 114,369 iMaawe Leivis Homeless Sheller 2 I desto Furl6dlon. Irc Sanbr Hpnrsma40r Pr f 7.0(10 S S 5 S S-BT47TAL, ft qv9 130900 1 9d 89 f f $ 11 Hau3Mp dYv6llc �xOg11s A1lbrdvble Housing Sile 3 HASLOS TMHA Acq-ub—.0 O6sbe$ 200000 $ 200,000 E - S - S 200,000 rpoua uA Bishop Slreel $kdaa 4 Family Care Net—rk Inc Eslebla Cl Supported Housmg 125,290 f 87,601 f 31,200 5 S 118,801 Rehab5 5 City DI SCO - $ 105-000 f - 3 5 - S Curb Ramos i181111 cP 98 28740t f wim fJium Program Admint3frafion $88,492 Available (20% of 5442,462) ba f9 ni 5L0 CDBG Ade. trallen f M-072 'f X.M S 5 s 309n 6b Counly of SLO 1Nola 41 CDBG Adrtnnrs0ation S 57-520 E' 5T,620 ! S 57520 SUBTOTAL, Admlalpiw f 9:I I lug I 1i ! RB 172 TOTAL f 785lI 31 f 9 621982 worts. cw,ah n..ims I� cow hroy,r,n rr� mi r svz+Q s IM�cr4n/!]I �ownHarcaws.w�v.wralwr rwhw+-te wutir�cy.u.xn i rp•+a:.s c.Tra s,.d ax w.s ce, w,ea� ��ae, a ., ,e�oy 4 ccecad—wyv..,are, eE zms,7 cov�ara nyw��w Final HUD Allocations 0 No final allocation has been announced ■ As stated in Resolution: ■ Community Development Director is authorized to approve final dollar amounts * Additional funds shall be allocated evenly to the two projects once public service and admin allocations adjusted. 14 3/17/2015 7 3/17/2015 CDBG Project Balances CARRY OVER C'rty of SLO CAPSLO HASLO PfOgfam Yeaf 2014 (Curb Ramps) Homeless llron Works) Shelter iQ I'i$31,200 zoos 2016$105,000 County $194,809 Total$31,200 $105,000 $194,809 CITY OF SHR LUIS OBISPO