HomeMy WebLinkAbout07-16-2013 c2 cdbg funding reallocation for 2012 pgyr
FROM: Derek Johnson, Community Development Director
Prepared By: Tyler Corey, Housing Programs Manager
SUBJECT: CONSIDERATION OF 2012 PROGRAM YEAR COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDING REALLOCATION.
RECOMMENDATION
As recommended by the Human Relations Commission (HRC), adopt a resolution to approve
reallocation for $95,000 of 2012 CDBG Program Year funds.
DISCUSSION
Background
On April 17, 2012, the City Council approved CDBG funding allocations for the 2012 Program
Year, including a $95,000 grant award to Tri-Counties Community Housing Corporation
(TCCHC). The purpose for the award was to acquire a three-unit apartment project consisting of
two one (1) bedroom units and one (1) studio unit located at 542 Hathway (Attachment 1). These
units are affordable to extremely-low income individuals with developmental disabilities.
Sojourn Services, Inc. acquired the property in 2001 and made it available for individuals with
developmental disabilities. When the property went into foreclosure, 2012 CDBG funds were
not yet available, so TCCHC obtained a commitment for a bridge loan from the San Luis Obispo
County Housing Trust Fund (HTF) in order to purchase the property at the foreclosure auction
(trustee’s sale). The HTF bridge loan was originally for a six-month period and has been
extended several times to allow TCCHC to secure permanent financing. The HTF loan is now
due and payable on December 31, 2013.
CDBG Guidelines
Property refinance is not considered an eligible CDBG activity. However, property acquisition to
create, preserve or rehabilitate affordable housing is an appropriate use of CDBG grant funds.
TCCHC recently created a separate legal entity - TCCHC – San Luis Obispo, LLC - to acquire
and operate the property consistent with CDBG guidelines.
CDBG guidelines prohibit the transfer of funds, even between related entities, without a formal
reallocation. As a result, the City must reallocate CDBG funds from TCCHC to TCCHC – San
Luis Obispo, LLC, prior to releasing funds to the project. Staff and the HRC recommend
reallocating the 2012 CDBG Program Year grant award of $95,000 from TCCHC to TCCHC –
San Luis Obispo, LLC to allow the funds to be used in the manner they were intended. If
approved, the Council’s determination to reallocate the funds will be transmitted to the County
Meeting Date
Item Number 7-16-13
C2 - 1
2012 CDBG Program Year Funding Reallocation Page 2
of San Luis Obispo so that it may be included in the 2012 Action Plan Update to be submitted to
the Federal Department of Housing and Urban Development.
HRC Recommendation
On June 5, 2013, the HRC, on a 6-0 vote (Simon absent) recommended the City Council approve
reallocation for $95,000 of 2012 CDBG Program Year funds from TCCHC to TCCHC – San
Luis Obispo, LLC (Attachment 2). There was no public testimony on the item and Commission
discussion was brief.
FISCAL IMPACT
The reallocation will be funded from previous allocated CDBG grant funds. No impact to
existing fund balances would occur. 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.
ALTERNATIVES
1. The Council may modify the proposed reallocation amount.
2. The Council may deny the proposed reallocation. Staff does not recommend this
alternative since the funding would not be available for the purpose it was intended and
would put extremely-low income affordable housing units and individuals with
developmental disabilities at risk.
3. The Council may continue consideration of the proposed reallocation. Staff does not
recommend this alternative because the reallocation must be submitted to the County by
July 17, 2013, in order to be included in the 2012 Action Plan Update scheduled before
the County Board of Supervisors on July 23, 2013.
ATTACHMENTS
1. Council Resolution No. 10349 (2012 Series)
2. HRC June 5, 2013, meeting minutes
3. Draft resolution approving recommendation
T:\Council Agenda Reports\2013\2013-07-16\CDBG Funding Reallocation for 2012 PG YR (Johnson-Corey)\C4 - CDBG Funding Reallocation
for 2012 Program Year.docx
C2 - 2
RESOLUTION NO . 10349 (2012 Series )
A RESOLUTION OF THE OF THE CITY OF SAN LUIS OBISPO APPROVIN G
MODIFICATIONS OF 2012 CDBG FUNDING ALLOCATION S
WHEREAS,the City of San Luis Obispo is a participating jurisdiction in the San Lui s
Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Mono Bay, and Pas o
Robles and the County of San Luis Obispo ; an d
WHEREAS,said cities and County cooperatively administer several federal gran t
programs under the provisions of the Cooperative Agreement approved by the San Luis Obisp o
City Council on June 21, 2005, and under applicable U .S . Department of Housing and Urba n
Development Department (HUD) rules ; and
WHEREAS,pursuant to said agreement, the Urban County Public Participation Plan an d
HUD rules, the City Council held a public hearing on February 21, 2012, to consider funding
recommendations by the Human Relations Commission (HRC), to review applications fo r
federal grant funding, and to consider public comments on community needs and the use of suc h
funds ; and
WHEREAS,On March 13, 2012, County staff received HUD's new estimated CDB G
funding allocation for the 2012 Program Year and informed the City that its allocation will b e
$506,558, which is $66,567 (11 .6%) less than previously approved by Council ; and
WHEREAS,The City Council has considered HUD's new estimated funding allocation s
and determined that modifications are necessary to balance the 2012 CDBG Program Yea r
budget .
NOW, THEREFORE, BE IT RESOLVED,by the Council of the City of San Lui s
Obispo as follows :
SECTION 1 .2012 Community Development Block Grant Program Amendments .The
City's 2012 Community Development Block Grant Program is hereby approved, as shown i n
Exhibit A. The City Manager is authorized to approve final dollar amounts once HUD release s
allocations with the direction to make up differences in the two amounts .
SECTION 2 .Board of Supervisors Consideration .The Council hereby forwards th e
above actions to the San Luis Obispo County Board of Supervisors for consideration prior to th e
Board's final action on the Urban County's 2012 Consolidated Plan .
SECTION 3 .City Manager Authority .The City Manager is authorized to act on behal f
of the City in executing grant agreements and other actions necessary to implement the approve d
Consolidated Plan and CDBG Program, including minor revisions to funding amounts for th e
2012 CDBG Program if the City's actual CDBG allocation is different than expected .
R 10349
Attachment 1
C2 - 3
Resolution No . 10349 (2012 Series )
Page 2
Upon motion of Council Member Ashbaugh, seconded by Council Member Smith, an d
on the following vote :
AYES :
Council Members Ashbaugh, Carter and Smith, Vice Mayor Carpente r
and Mayor Mar x
NOES :
None
ABSENT : None
The foregoing resolution was adopted this 17 th day of April, 2012 .
ATTEST :
APPROVED AS TO FORM :
Attachment 1
C2 - 4
2012 CDBG Funding Recommendation Exhibit "A"
mount ' ecommend e
No .kpplicant- ".~,Activity A mount
Requested
2012 CDB G
(Note 1)
Genera l
Fun d
(Note 2)
Othe r
Source s
(Note 3)Total
Public Services $75,984 Available (15% of $506,558)
1 CAPSLO Maxine Lewis Homeless Shelter 144,753 75,98445,000 120,98 4
2 CAPSLO Prado Day Center for the Homeless 59,907 60,000 60,00 0
3 Transitional Food & Shelter Shelter for Medically Fragile Homeless 1,000 -
4 Alliance for Pharmaceutical Access Prescription Meds for VULow Income and Seniors 7,000 -
SUBTOTAL,Public Services 15%Max 212660 75,984105,000 -180,98 4
5
Housing
Transitional Food & Shelter Property Acquisition (7860 Sinaloa, Atascadero)70,00 0
6 Tri-Counties Housing Corporation Property Acquisition & Rehabilitation (542 Hathway)95,000 95,000 95,00 0
7 Habitat for Humanity Site Clearance & Remediation (3212 Rockview)30,00030,000 30,00 0
8 ROEM Development Corporation Property Acquisition (313 South)300,000 39,263 ,212,901 252,164
Public Facilities -
9 City of SLO ADA Street Imps - Curb Ramps 105,000105,000 105,00 0
10 CAPSLO Homeless Campus Design & Drawings 50,00050,000 50,00 0
Economic Development -
11 Mission CSC Women's Business Center Program 10,000 10,000 10,000
SUBTOTAL, Housing/PublicFacifit~,s',$329,263 Availablezr 590,000 .329,263 -212,901 542,164
-Program Administration $101,312 Available (20% of $506,558 )
12a City of SLO Housing Element Implementation 60,787 60,78715,833 76,62 0
12b City of SLO CDBG Administration 40,52540,525 10,555 51,080
SUBTOTAL, PrQgra~iiRdmin/Planning ,-0°~Max"'.`401;317 101,312 26,388 -127,70 0
TOTAL9 903,972 `506,5581 131,3881 212,901 I 850,848
1.Funding for CDBG Program Year 2012 : $506,558
2.Tentative General Fund allocations per current policy ; and current budget allocations for homeless shelter and Prado Day Center .
3.Other sources may include HOME funds, City Affordable Housing Funds or reallocation of CDBG funds from previous program years .
Attachment 1
C2 - 5
Attachment 2
HUMAN RELATIONS COMMISSION (HRC)
MINUTES REGULAR MEETING
June 5, 2013
5:00 p.m.
990 Palm St – Council Chambers
CALL TO ORDER: 5:00 PM
PRESENT: Chairperson: Hillary Trout; Vice Chairperson: Louise Matheny
Commissioners: Robert Clayton, Janet Pierucci, John Rollefson, Ronald
Tilley, Hillary Trout
ABSENT: Ivan Simon
STAFF
PRESENT: Greg Zocher, Human Resources Manager; Tyler Corey, Housing Programs
Manager
CONSIDERATION OF MINUTES:
ACTION: Moved by Matheny/Pierucci to approve the minutes of May 1, 2013 as
submitted; motion carried 6:0.
______________________________________________________________
PUBLIC COMMENT
No public comment for items not on the agenda.
BUSINESS ITEMS
Item 1. DRAFT SAFE PARKING ORDINANCE (COREY)
Corey presented the draft ordinance and the commissioners discussed.
Public Comment was received from the following community members:
Barbara and Susan - Clients of Prado Day Center
Alicia Nowicki and Heinz Huebner - Hope’s Village
Stew Jenkins - Resident
Mary Lou Zivna - CAPSLO
ACTION: Moved by Clayton/Matheny to support the draft ordinance as
presented; motion carried 6:0.
C2 - 6
Attachment 2
Item 2. CDBG FUNDING RE-ALLOCATION (COREY)
Corey presented recommendation to re-allocate CDBG funding.
ACTION: Moved by Rollefson/Matheny to approve re-allocation of funding as
presented; motion carried 6:0.
Item 3. REVIEW 1ST QUARTER 2013 COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) REPORT (TROUT)
Commissioners received 1st Quarter CDBG Report.
Item 4. 2012-13 GRANTS IN AID MID YEAR REPORTS (TROUT/TILLEY)
Commissioner Tilley reported on Alpha Pregnancy and Parenting Support.
Commissioner Trout reported on SLO County AIDS Support Network: AIDS
Homeless Prevention and Supportive Housing Program and SLO County
AIDS Support Network: HEP C Project.
Item 5. RELEASE 1ST QUARTER 2013-2014 MAXINE LEWIS MEMORIAL
SHELTER FUNDS (TROUT)
ACTION: Moved by Clayton/Tilley to release the funds; motion carried 5:0
(Matheny recused).
Item 6. CONSIDERATION OF CANCELING THE JULY 3, 2013 HRC MEETING.
(TROUT)
ACTION: Moved by Matheny/Tilley to cancel the meeting; motion carried
6:0.
COMMISSIONER COMMENTS
There being no further business to come before the HRC, Trout adjourned the HRC
meeting at 6:50 p.m. to the regular meeting scheduled for Wednesday, August 7, 2013 at
5:00 p.m. in the Council Hearing Room at 990 Palm St.
Respectfully Submitted,
Greg Zocher,
Human Resources Manager
C2 - 7
Attachment 3
RESOLUTION NO. XXXX-13
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN LUIS OBISPO APPROVING REALLOCATION
FOR $95,000 OF 2012 CDBG PROGRAM YEAR FUNDS
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, 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 executed between the City and
County on June 21, 2011, 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 July 16, 2013, to consider a
recommendation by the Human Relations Commission (HRC) to reallocate $95,000 of 2012
CDBG Program Year funds; and
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis
Obispo as follows:
Section 1. Community Development Block Grant Program Amendments. The 2012
CDBG Program Year is hereby amended as follows:
From/To Applicant Project Funding
From Tri-Counties
Community
Housing
Corporation
2012 – Property Acquisition for
Affordable Housing (542 Hathway)
$95,000
Total From $95,000
To Tri-Counties
Community
Housing
Corporation – San
Luis Obispo, LLC
2012 – Property Acquisition for
Affordable Housing (542 Hathway)
$95,000
Total To $95,000
Section 2. Board of Supervisors Consideration. The Council hereby forwards the
above action to the San Luis Obispo County Board of Supervisors for inclusion in the 2012
Action Plan update.
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
C2 - 8
Resolution No. (2013 Series) Attachment 3
Page 2
Consolidated Plan and CDBG Program.
Upon motion of , seconded by , and on the
following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this 16th day of July, 2013.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Maeve Kennedy Grimes
City Clerk
APPROVED AS TO FORM:
_____________________________________
Christine Dietrick
City Attorney
C2 - 9
Page intentionally left
blank.
C2 - 10