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HomeMy WebLinkAbout03-06-2018 Item 10 2018 CDBG Funding Recommendations Meeting Date: 3/6/2018 FROM: Michael Codron, Community Development Director Prepared By: Cara Vereschagin, Planning Technician SUBJECT: CONSIDERATION OF 2018 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING RECOMMENDATIONS RECOMMENDATION As recommended by the Human Relations Commission (HRC), adopt a Resolution (Attachment A) to approve funding allocations for $444,380 of CDBG funds for the 2018 Program Year. 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 2018 CDBG review process are as follows: 1. HRC Hosts a “Community Needs Workshop”: The HRC hosted a public hearing on October 4, 2017, 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 November 7, 2017, the City Council endorsed the HRC’s recommended CDBG funding priorities for 2018. The priorities established by the HRC and City Council are listed below: a. Provide emergency and transitional shelter, homelessness prevention and services. b. Develop and enhance affordable housing for low and very-low income persons. c. Promote accessibility and/or removal of architectural barriers for the disabled and elderly. d. 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 2018 CDBG funds. 3. CDBG Applications Hearing: On December 6, 2017, the HRC held a public hearing to review the 2018 CDBG applications with respect to the Council’s adopted funding priorities and forwarded its funding recommendations to the County for inclusion in the 2018 Draft Action Plan. Packet Pg 213 10 4. Reservation Letter: On January 9, 2018, Council approved a CDBG Reservation Letter to reserve $288,847 in the 2018 CDBG funds for property acquisition costs to San Luis Nonprofit Housing Corporation (SLONP). SLONP is partnering with the Housing Authority of the City of San Luis Obispo (HASLO) to develop Courtyard at the Meadows on the site, a 36-unit new affordable housing development which will house income eligible households. In order for the project to move forward, HASLO and SLONP must apply for low income housing tax credits awarded by the California Tax Credit Allocation Committee (TCAC). Since the deadline for these applications was February 28, 2018, the County requested all projects applying for tax credits request reservation letters prior to the CDBG public hearing. The approved letter was sent to the County for approval by the Board of Supervisors. 5. CDBG Program Hearing: On March 6, 2018, the City Council will hold a public hearing to consider the HRC’s recommendation as shown in the 2018 Draft Action Plan and adopt recommendations for projects to be funded during the 2018 CDBG Program Year. This action will be submitted to the County Board of Supervisors for inclusion in the final 2018 Action Plan and Community Participation Plan for the Urban County of San Luis Obispo. HRC and Staff Recommended 2018 CDBG Fu nding Allocations On December 6, 2017, the HRC recommended funding allocations of $444,380 in 2018 CDBG funds. The preliminary funding estimate was provided by the County based on available information from the US. Department of Housing and Urban Development (HUD). The table below lists the projects recommended for funding by the HRC in the amount of $444,380. Number Applicant Project 2018 CDBG Funding Recommendation Public Services (Maximum allocation allowed: 15% of $444,380 = $66,657) 1 CAPSLO 40 Prado Homeless Shelter $66,657 2 HASLO & SLONP Affordable Housing Property Acquisition: Courtyard at the Meadows $288,847 3 City of SLO1 ADA Street Improvements: Curb Ramps - Program Administration (Maximum allocation allowed: 20% of $444,380 = $88,876) 4a City of SLO CDBG Program Administration To administer the CDBG program and all the approved activities associated with funding $10,369 CDBG Capacity Building To implement programs identified in the Housing Element related to providing affordable housing $10,369 CDBG Affordable Housing Study To manage the Affordable Housing Nexus Study in December 2018 $10,369 1 In the case that Applications No. 1, 2, and 4 are not awarded funding, any residual funding is recommended to Application No. 3 Packet Pg 214 10 4b County of SLO2 CDBG Administration $57,769 Total $444,380 Four applications for the 2018 CDBG Program Year were received by the City, totaling $820,126 – almost double than the anticipated funding available. Attachment B includes a list of the applications submitted to the City for CDBG funding and the recommended funding amounts. Attachment C includes the December 6, 2017, HRC staff report with a description of each funding request, followed by the meeting minutes as Attachment D. The City is limited to using 15% of its allocation for public service uses with CAPSLO requesting $131,250 for the new homeless shelter, 40 Prado. In the past, the City has chosen to provide 100% of this allowance to the Maxine Lewis Shelter to maximize the benefit of these funds. The City will continue this trend in 2018 and is recommending $66,657 in funding for the new shelter. 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 2018-20. 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 2018-20 Cooperation Agreement. 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 given to the Courtyard at the Meadows housing project after subtracting the public services and program administration increases. The Draft Council Resolution reflects this possible modification (Attachment A). The 2018 CDBG funding recommendations adopted by the City Council will be forwarded to the County Board of Supervisors for inclusion in the 2018 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 in April 17, 2018. Although the CDBG fiscal year begins on July 1, 2018, funds for projects awarded by the City Council are not expected to be available until October. ENVIRONMENTAL REVIEW The project is exempt from environmental review per Section 15061 (b)(3) General Rule of the CEQA Guidelines. The project is an action to award funding. 2 CDBG administration funding share per the 2018 -20 Cooperation Agreement between the City and County Packet Pg 215 10 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 and staff efforts 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, staff time and projects that receive CDBG funding have a positive fiscal impact on the City. Without CDBG, efforts to implement policies, programs, and projects to provide affordable housing, as outlined in the Housing Element and Housing Major City Goal, would either be funded by City sources or not funded entirely. ALTERNATIVES 1. The Council may modify the proposed funding amounts. 2. The Council may choose to fund and eligible CDBG application not recommended by the HRC or staff. 3. The Council may continue consideration of funding for the 2018 CDBG Program Year. Staff does not recommend this action because the City’s recommended funding priorities must be received by the Count by the end of March in order to be included in the final 2018 Action Plan. Attachments: a - Draft Resolution b - Exhibit A to Resolution 2018 Community Development Block Grant Draft Funding Recommendations c - Council Reading File - 2018 CDBG Recommendation Human Relations Commission Staff Report d - HRC Meeting Minutes December 6, 2017 Packet Pg 216 10 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE 2018 COMMUNITY DEVELOPMENT BLOCK GRANT (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, 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 6, 2018, 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 NOW, THEREFORE, 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. 2018 Community Development Block Grant Program Amendments. The City’s 2018 Community Development Block Grant Program is hereby approved, as shown in Exhibit A. 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 to HASLO and SLONP’s affordable 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 2018 Consolidated Plan. SECTION 3. Community Development Director Authority. The Community Development Director is authorized to act on behalf of the City in executing grant agreements and Packet Pg 217 10 Resolution No. _____ (2018 Series) Page 2 R ______ other actions necessary to implement the approved Consolidated Plan and CDBG Program, including revisions to funding amounts for the 2018 CDBG Program if the City’s actual CDBG allocation is different than expected. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2018. ____________________________________ 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 218 10 2018 CDBG General Fund Other Sources No. Activity (Note 1)(Note 2)(Note 3)Total Public Services $66,657 Available (15% of $444,380) 1 40 Prado Homeless Shelter 131,250$ 66,657$ 132,000$ -$ 198,657$ SUBTOTAL, Public Services - 15% Max 131,250$ 66,657$ 132,000$ -$ 198,657$ 2 Affordable Housing Site Acqusition: Courtyard at the Meadows 350,000$ 288,847$ -$ 600,000$ 888,847$ 3 ADA Street Improvements - Curb Ramps 250,000$ -$ -$ -$ -$ SUBTOTAL, Housing/Public Facilities 600,000$ 288,847$ -$ 600,000$ 888,847$ 4a CDBG Administration 31,107$ 31,107 -$ -$ 31,107$ 4b County of SLO (Note 4)CDBG Administration 57,769$ 57,769$ -$ -$ 57,769$ 88,876$ 88,876$ 88,876$ 820,126$ 444,380$ 132,000$ 600,000$ 1,176,380$ 1 Estimated Funding for CDBG Program Year 2018: $444,380 2 Tentative General Fund allocations for FY 18-19 (Estimate based on combined Prado Day and Maxine Lewis Shelter funds) 3 Anticipated Affordable Housing Fund Award, Final Award Subject to Council Approval 4 CDBG administration funding share per the 2018-20 Cooperation Agreement 5 In the case that Applications No. 1, 2, and 4 are not awarded funding, we recommend any residual funding to Application No. 3 2018 CDBG Preliminary Funding Recommendations Amount Recommended Amount RequestedApplicant CAPSLO g City of SLO SUBTOTAL, Program Admin/Planning - 20% Max TOTAL NOTES: HASLO & SLONP Program Administration $88,876 Available (20% of $444,380) City of SLO (Note 5) Page 1 Packet Pg 219 10 Meeting Minutes Human Relations Commission Wednesday, December 6, 2017 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 6, 2017 at 5:00 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Vice-Chair Welts. OATH OF OFFICE City Clerk Carrie Gallagher administered the oath of office to newly appointed Commissioner Samuel Hughes. ROLL CALL Present: Commissioners Michelle Tasseff, Brett Raffish, Barrie DuBois, Samuel Hughes, and Vice-Chair Nancy Welts Absent: Commissioner Carol Sexton and Chair Robert Clayton Staff: Cara Vereschagin, Planning Technician; Xzandrea Fowler, Deputy Director; Rebecca Gershow, Associate Planner; Carrie Gallagher, City Clerk PUBLIC COMMENT None CONSIDERATION OF MINUTES ACTION: MOTION BY COMMISSIONER RAFFISH, SECOND BY COMMISSIONER TASSEFF CARRIED 5-0-2 to approve the minutes of the Regular Meeting of the Human Relations Commission of November 1, 2017. BUSINESS ITEMS 1. Neighborhood Matching Grant Program Update Associate Planner Gershow gave an annual update to the Commission on the Neighborhood Matching Grants (NMG) program. Gershow provided a PowerPoint presentation, which described the background of the program, the grant selection process, Packet Pg 220 10 City of San Luis Obispo, Title, Subtitle Meeting Minutes Human Relations Commission Meeting of December 6, 2017 Page 2 Minutes Approved by HRC on February 7, 2018 responsibility of the HRC in the grant process, information about previously funded projects, and a variety of pictures from past grant awards. Commissioners provided feedback for further promotion of the program. Gershow facilitated a dialogue for future ideas City Staff could utilize for neighborhood involvement. A suggestion for improvement from a community member was provided as well. PUBLIC HEARINGS 2. 2018 Community Development Grant (CDBG) Draft Funding Recommendations Planning Technician Vereschagin provided a PowerPoint presentation which provided an overview of the Community Development Block Grant (CDBG) program and the responsibility of the HRC in the grant process. Vereschagin also provided Staff recommendations as to funding allocations for the applicants. Public Comment Scott Smith, Housing Authority of San Luis Obispo (HASLO), provided background information on the Courtyard at the Meadows project, the Homeless Services Shelter, and the various work efforts of HASLO. He also thanked Staff for the CDBG recommendations. There being no other desiring to speak on this item, the public comment was closed. ACTION: MOTION BY COMMISSIONER RAFFISH, SECOND BY COMMISSIONER DUBOIS CARRIED 5-0-2 to approve the 2018 Community Development Block Grant recommendations. COMMENTS & DISCUSSION 3. Consider Cancellation of January 2018 Meeting ACTION: MOTION BY COMMISSIONER HUGHES, SECOND BY COMMISSIONER TASSEFF CARRIED 5-0-2 to cancel the January 2018 meeting. ADJOURNMENT Vice-Chair Welts adjourned the meeting at 5:54 p.m. The next Regular meeting of the Human Relations Commission is scheduled for Wednesday, February 7, 2018 at 5:00 p.m., in the Council Hearing Room, 990 Palm Street, San Luis Obispo, California. Packet Pg 221 10 Page intentionally left blank. Packet Pg 222 10 MMiI� Newspaper of the Central Coast 3825 South Higuera • Post Office Box 112 • San Luis Obispo, Californiz In The Superior Court of The State of California In and for the County of San Luis Obispo AD #3538180 CITY OF SAN LUIS OBISPO OFFICE OF THE CITY CLERK STATE OF CALIFORNIA SS. County of San Luis Obispo I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen and not interested in the above entitled matter; I am now, and at all times embraced in the publication herein mentioned was, the principal clerk of the printers and publishers of THE TRIBUNE, a newspaper of general Circulation, printed and published daily at the City of San Luis Obispo in the above named county and state; that notice at which the annexed clippings is a true copy, was published in the above-named newspaper and not in any supplement thereof — on the following dates to wit;; FEBRUARY 24, 2018 that said newspaper was duly and regularly ascertained and established a newspaper of general circulation by Decree entered in the Superior Court of San Luis Obispo County, State of California, on June 9, 1952, Case #19139 under the Government Code of the State of California. I certify (or declare) under the penalty of perjury that the foregoing is true and correct. ram ��- (SioAture of Principal Clerk) DATE: FEBRUARY 24, 2018 AD COST: $232.00 RECEIVED MAR Q 2 2018 Cm Sfut Curs coo SAN LUIS OBISPO CITY COUNCIL NOTICE OF PUBLIC HEARING The San Luis Obispo City Council invites ail interested persons to attend a public hearing on Tuesday, March 6, 2018, at 6:00 p.m. in the City Hall Council Cham- ber, 990 Palm Street, San Luls Obispo, California, relative to the following: MAP public hearing to consider Introducing an dinance amending the Cfty's Zoning ap to designate property at 1480 Calla acufn to be. withIn a Tourisl Commercial' •T] Zone; adopt a resofutivn approving nalruction of a new two-atory commer- rl building, granting an exception to the oak Setback reyutrament to atksw Six (6) covered parking spaces within the set- ok, and adopting a Mitigated Negative claralion of environmental review. For more information, you are invited to contact Walter Oelxeil of the City's Com- munity Development at (805) 781-7993 or by email at woet2emaloct. _tY�Or4 REC- public hearing to consider the Human 1lations Commission's recommendation adopt a resolution approving funding al- :altons for $444,380 of CDBG funds for s 2018 Program Year For more information, you are Invited to contact Cara Vereschagln of the City's "ommunity Development 000artmenl al (805) 781.7596 or by email at verC %KK * The City Council may 0180 discuss other hearings or puslneas Items before a after the Items hated Above. 11 you challenge the proposed project in court, you may be film it - ad to raising Only those Issues you or someone elan raised at the public hearing described In this notice, or in written corre- apandence delivered to the City Council at, or prior to, the public hearing. Reports for this meeting will be avallabte for review in the City Clerk's Office and on- line at www.sloCltv.aro on Wednesday, February 28, 2018. Please Calf the Clly Clark's OMCs at (805) 781-7100 for more information. The City Council meeting will be televised live on Charter C861C Channel 20 and live streaming on www.siocity. to Gallagher, CMC Clerk of San Luis Obispo uary 24, 2018 3538180