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HomeMy WebLinkAbout04/04/1995, 2 - CONSIDERATION OF THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP (HOME) FUNDING REQUESTS FOR FISCAL YEAR (FY) 1995 (SECOND PROGRAM YEAR), AND REVIEW OF THE DRAFT URBAN COUNTY CONSOLIDATED PLAN. �IIIN�IyII�Ullln�„p=ullln�,InU MEETING DATE: M II IIII_WII CI”J Of SM WI S OBISPO COUNCIL AGENDA REPORT �-A NUMBER: FROM: Arnold Jonas, Community Developm it to .By: Jeff Hoo sociate Planner SUBJECT: Consideration of the Community evel Block Grant (CDBG) and HOME Investment Partnership (HOME) funding requests for Fiscal Year (FY) 1995 (Second Program Year), and review of the Draft Urban County Consolidated Plan. CAO RECONDIENDATION: By motion: 1) Approve the recommended projects and funding levels to receive approximately $954,000 in CDBG funds, including Special Urban Projects; 2) Determine recommendations for projects to receive approximately $1.8 Million (countywide) in HOME funds in Fiscal Years 1994 and 1995; and 3) endorse the Urban County Draft Consolidated Plan. REPORT-IN-BRIM' The City has received 15 CDBG requests, with a total dollar amount of almost twice this year's CDBG entitlement; consequently the City will not be able to fund all of the requests during this fiscal year. Two HOME funding requests were received, totalling $650,000 specifically for housing assistance for low- and moderate-income persons. Council members are being asked to evaluate the candidate projects, take public testimony, and to designate projects to receive funding and appropriate funding levels. .For CDBG funding, the Council determines which projects receive City funds. The Council may also forward recommendations to the Board of Supervisors on projects to receive Urban County funds for "Special Urban Projects" and for HOME projects, countywide. As part of our Urban County cooperation agreement, the City Council should also act on the HUD-required Consolidated Plan. The Consolidated Plan (CP) replaces last year's Comprehensive Housing Affordability Strategy(CHAS), and describes the Urban County's funding needs, resources, and proposed projects. The Draft CP was prepared by the County with the assistance of the participating cities, and has already been distributed to Council members (a copy is also available in the Council office). The Cl?, along with the Council's FY 1995 CDBG and FY 1994 and 1995 HOME funding recommendations, will be scheduled for final action by the Board of Supervisors in April. The Final Consolidated Plan will be updated to include each jurisdiction's adopted CDBG program, and the Board's approved Special Urban Projects and HOME projects. DISCUSSION Background. In 1993 Council approved the City's participation in the Urban County Community Development Block Grant (CDBG) program and authorized the Mayor to sign a Cooperation Agreement with the County of San Luis Obispo establishing the program. In this role, the City determines how to best allocate its CDBG funds, and advises the Board of Supervisors on the allocation of countywide CDBG "Special Urban Projects" and HOME funds. The City and County recently executed the HUD-required "subrecipient agreement" establishing procedures for transferring fundsfrom the County to the City. Funding for the FY 1994 city of san Lr.os oBispo COUNCIL AGENDA REPORT Staff Report Page 2 programs has begun. The FY 1995 CDBG program began this Fall with a series of community needs workshops held in South County, San Luis Obispo, and North County. In December, the County of San Luis Obispo issued a Request For Proposals, soliciting requests for use of federal grant funds. Funding applications were due at the end of January. Pursuant to our cooperation agreement with the County, the participating cities must now review the CDBG applications for projects in their jurisdictions and forward their.funding recommendations to the Board of Supervisors. The Board will act on those recommendations and submit them to the U.S. Department of Housing and Urban Development (HUD), along with a Consolidated Plan to be prepared by County staff, by May 10, 1995. The Board is expected to endorse City Council-adopted programs, provided the programs meet HUD rules. The Urban County allocation for FY 1995 is $2.825 million, of which $953,720 is available to the City of San Luis Obispo. The City has received CDBG funding requests which exceed the funds available; consequently not all funding requests can be met during this program year. Based on the project descriptions, public testimony, and staff evaluation, councilmembers should identify the.candidate projects to receive CDBG funding during FY 1995 and their recommended funding level. Project Evaluation. Of the 15 CDBG funding proposals received by the City, eight were submitted by City departments. Preliminary project evaluations were done by Administration, Public Works, Utilities, Finance, Parks and Recreation and Community Development Departments' staff serving on the CIP/Budget review committees. Committee members evaluated the proposals based on feasibility, consistency with General Plan and City Council goals, and community needs. Based on the Committee's comments and Council's recent goal- setting, staff has compiled a list of recommended CDBG projects, shown in Table 1. Council Goals and Priorities. In 1994 Council identified affordable housing as the number one priority for block grant funding. Emergency shelters and homeless services were designated as second priority, with removal of architectural barriers for disabled persons as the third priority. Economic development/seismic retrofit and child care/at-risk youth services were identified as priorities 4 and 5. These priorities continue to be urgent community needs in 1995. At its recent goal-setting workshop, Councilmembers outlined several specific goals which are also pertinent to the CDBG program: ■ Establish joint public/private sector financing program for seismic, fire sprinkler and sewer lateral improvements on private property. ■ Expand the economic development plan. city o� SAII .n s OB1Sp0 COUNCIL AGENDA REPORT Staff Report Page 3 ■ Complete negotiations with Peoples' Kitchen and relocate the program to a permanent site away from Downtown. These priorities are reflected in the recommended FY CDBG activities. HUD Funding Objectives. To receive funding, the Urban County's CDBG activities must meet HUD objectives. HUD has three broad national objectives for CDBG-funded projects: 1. To benefit low- and moderate-income persons; 2. To aid in the prevention or elimination of slums or blight; and 3. To meet community development needs having a particularly urgency. HUD requires that at least 70 percent of the block grant recipient's overall expenditures during the funding period be used for activities that benefit low-and moderate-income persons. At least 51 percent of individual project or program funds must benefit low- and moderate-income persons, and up to 20 percent of the City's total funding can be used for overall CDBG program administration and other indirect costs. The City's proposed FY 1995 program meets these criteria. Community Needs Workshop. The County held several "housing need" hearings this Fall to allow the public to identify housing problems and needs, one of which was held in the San Luis Obispo Veteran's Building. Housing agencies, housing support groups, and social service organizations were invited. These were identified as important community needs: 1. Housing assistance for low-income first time homebuyers, including single-parent families, large families, and handicapped persons. This could be accomplished through the San Luis Obispo Housing Authority, probably under a low-cost loan program, with the Authority pre-qualifying borrowers and administering the program. 2. Rental housing for very-low and low income households, especially 2 and 3 bedroom units. In the short term, the most practical approach: acquisition of existing rentals by the Housing Authority or non-profit housing agencies to "lock in" affordability guarantees. In the mid- to long-term, construction of new rental units, perhaps in conjunction with new development in expansion areas. 3. Housing and services for persons diagnosed with HIV and AIDS. 4. A housing/social services facility to house non-profit community agencies. - FY 1995 fted Recommendations. Because HUD wants grantees to undertake projects as soon after grant approval as possible, staff recommends giving preference to tangible, specific city of San L,..iS OBISpo COUNCIL AGENDA REPORT Staff Report Page 4 activities which can be undertaken relatively soon. Priority should also be given to those projects from last year's CDBG program with a continuing, urgent need, such as operation of the San Luis Obispo Homeless Shelter, At-risk Youth Services, and the Seismic Retrofit Loan program; and to those new programs which appear most consistent with Council goals and priorities. TABLE 1: Recommended City CDBG Projects/Programs For FY 1995 (continuing CDBG programs in italics): proPasal project Name Activity 1ippLcanf minding Type ($) Children's Work Services for at-risk SLO City Housing 12,000 2 Incentive Program youth Authority 3 Marsh Street Curb Construction City of SLO 150,000 Ramps 6 Homeless Services Construction City of SLO 50,000 Center 7 SLO Homeless Shelter Services City of SLO 120,000 11 SLO Housing Assistance Acquisition City of SLO 206,000 Program 12 Seismic Retrofit Loan Commercial rehab/historic City of SLO 200,000 Program restoration 13 Transitional Housing Services SLO City Housing 20,000 Services for Disabled Authority 15 At-Risk Youth Program Recreation services for at- City of SLO 100,000 risk youth — CDBG Administration planning/administrative City of SLO 95,720 services (10%) TOTAL $953,720 'See Exhibit A for CDBG program descriptions. Projects Not Recommended for Funding. Exhibit B describes the projects not recommended for funding. Many of the projects not recommended for funding clearly meet a community need; however based on City priorities and available funding, not all of the projects could be funded. The following projects are not recommended for funding at this time: I —4 ���n�► I�IIIII�IIp ����► City Of San ' s OBISPO COUNCIL AGENDA REPORT Staff Report Page 5 Pel Project Applicant R ue 1 ASN Residential Project AIDS Support Network $252,000 4 Family Planning Clinic EOC 121,000 5 Res. Cntr./Case Mangmnt. SLO City Housing Authority 102000 8 Las Casas De Familia Affordable Homes, Inc. 2509000 9 Dan Law Apartments People's Self-Help Housing 45,000 10 Historic Preserv. Program City of SLO 150,000 14 Women's Shelter Sewer Women's Shelter Program, Inc. 63.000 TOTAL $ 891,000 The funding request for Dan Law Apartments has, in essence, been withdrawn by the new prospective buyer of the apartments, the City Housing Authority. The funding request by Womens' Shelter Inc. for a new sewer lateral is expected to be funded through the Urban County's Special Urban Projects Fund; consequently no City CDBG funding is needed. Special Urban Projects Funding. Under the Cooperation Agreement, 15 percent of the net County funding is set aside annually for a "Special Urban Projects Fund." Funds are available to all participating jurisdictions on a competitive basis and are awarded by the Board of Supervisors. Special urban projects are those that are more regional in scope, meet an urgent community need, and would not be feasible without special funding assistance. $163,025 is available in FY 1995. TABLE 2. Recommended Special Urban Projects For CDBG Funding in FY 1995 Pt'o,{ect Name Acttvrtp Applrcant Funding; T c$} SLO Women' Shelter Sewer Public Facilities, Construction Womens' Shelter, Inc. 63,000 Lateral SLO Homeless Service Center Construction City of SLO 25,000 North County Women' Shelter Construction North County 10,000 Storage Building Womens' Shelter Atascadero Loaves and Fishes Construction Atascadero Loaves 25,025 Center and Fishes Grover Beach Affordable Acquisition City of Grover Beach 40,000 Honing Development TOTAL $163,025 I ������►�i���Illllll�p ���lll City Of san L_.,s OBI.SPO COUNCIL AGENDA REPORT Staff Report Page 6 ZSee pp. 1-28, "Listing of Proposed Projects", Draft Consolidated Plan, for descriptions of CDBG projects requesting "special urban projects" funds. HOME Funding. The HOME program is a federal entitlement program specifically designed to help communities provide affordable housing. A 25 percent local match is required. Unlike CDBG funds, HOME funds can be used to construct new housing; and also be used for a variety of housing assistance such as first-time homebuyer loans or payment of impact fees. The Urban County will receive HOME funds totalling $969,000 in FY 1995, and funding requests totalling about $3 million were received by the County. HOME funds of $878,000, awarded in FY 1994 but not yet allocated, are proposed to be allocated concurrently with the FY 1995 allocation and used for several countywide housing programs. The programs to be funded and funding levels will be determined by the Board of Supervisors based on the recommendations of the participating cities. Staff recommends that the Council endorse the HOME activities listed in Table 3. Only one HOME project is specific to the City of San Luis Obispo — La Casa de Familia's request for _.$250,000. This proposal for acquisition funding needs further refinement and staff does not recommend it at this time. Staff generally supports the HOME funding recommendations as outlined in Table 14, page 52 of the Draft Consolidated Plan, with the changes noted in italics: TABLE.3. Recommended HOME Projects/Programs For FY 1994 and FY 1995 Project Name y Applica Act►vrtnt Ftinding ($T Us- FY 1994-95' s........__..:._ ._.__..........::._. Affordable Housing land Acquisition/Residential Peoples'Self-Help 450,000 Development Program Construction Housing Corp. Affordable Rental Housing Land Acquisition/Construction Peoples' Self-Help 440,000 Development Housing Corp. Affordable Housing Housing Services Peoples' Self-Help 100,000 Education/Technical Assistance Housing Corp. Downpayment/Closing Costs Direct Homebuyer Assistance SLO Housing 400,000 Assistance Authority Countywide Homebuyer Direct Homebuyer Assistance County of SLO 200,000 Assistance Program .County Administration, 1994- Administrative Costs County of SLO 157,000 95 HOME Programs ''un�►�►►��Illllll��� 1111�l city of san ; s OBIspo MiA" NMI COUNCIL AGENDA REPORT Staff Report Page 7 New Rental Housing in Construction David Brown 140,000 Cambria TOTAL $1,847,000 ee pp. 29-:39, ting of Proposed ects , Draft ConsolidatedPlan, or protect descriptions. The San Luis Obispo City Housing Authority applied concurrently to the City and County to use $400,000 in HOME funds for a countywide First-time Homebuyer Assistance Program. The Downpayment/Closing Costs Assistance Program could help low-and moderate-income County residents purchase their own homes and is consistent with Housing Element policies promoting homebuyer assistance. The program addresses a need which was identified in a public workshop this Fall as a critical need in the City of San Luis Obispo. Consequently, staff recommends that the Housing Authority's full request of$400,000 be funded over two years, rather than $350,000 over two years as proposed in the Consolidated Plan. The Housing Authority proposes to use a prior land .donation to meet local match requirements; no City match would be required. .r It is recommended that FY 1994 funding for Peoples' Self-Help Housing be reduced accordingly. FISCAL BIPACT CDBG programs and funding priorities will have an overall beneficial fiscal effect. To the extent that qualified, on-going City programs are funded through the CDBG program, more funding is available for other important City programs. Recommended Funding Allocations by activity: Acquisition/construction $400000 Public Services 252,000 Commercial Rehab/Historic Preservation _ 200,000 Grant Administration (10% of total City funding) 95.72 TOTAL CDBG FUNDS ALLOCATED $9539720 ALTERNATIVE 1. Revise candidate CDBG and HOME projects and funding levels. Councilmembers may modify the list of projects to receive CDBG funding, and/or change projected funding levels. 0'7 ��►►►nl ���lllll Ip�u►I city of San Eras OBispo �91,ACOUNCIL AGEN13A REPORT III Staff Report Page 8 I 1 I i . I . �I I I I - I I I I • Recommended CDBG Projects .Attachments: =Exhibit A. �ects -Exhibit B CDBG Projects Not Recommended (Consolidated Plan: On file:in Council Office) u -CDB M.fpL I � City of San Luis Obispo CDBG FUNDING REQUESTS RECOMMENDED FOR FUNDING, FISCAL YEAR 1995 Children's Work Incentive Program. The San Luis Obispo Housing Authority requests $12,000 to enable public housing resident children, ages 5 through 15 to win various prizes and incentives in exchange for help with maintenance and beautification of their housing complexes in the City of San Luis Obispo. Marsh Street Curb Ramps The City of San Luis Obispo requests $150,000 to install curb access ramps along Marsh Street in conjunction with other street improvements. The project involves ramp installation at seven downtown intersections, and the construction of up to 28 curb ramps to comply with Americans With Disabilities Act requirements. Homeless Services Center The City of San Luis Obispo requests $75,000 ($50K in City CDBG funds; $25 in County "Special Urban Projects CDBG funds) to provide facilities for the provision of various services to homelest persons and those vulnerable to becoming homeless. The facility will provide hot meals, showers, laundry facilities, counseling, day care and other services. San Luis Obispo Homeless Shelter The City of San Luis Obispo requests $120,000 to fund the continuing operation of the Economic Opportunity Commission's (EOC) Homeless Shelter Program. The Shelter provides meals, overnight shelter, and counseling assistance to homeless persons in San Luis Obispo. The funds will be used to defray general salary and operational expenses for the Shelter, which serves approximately 49 homeless individuals per evening (maximum capacity). The County of San Luis Obispo is allocating an additional $120,000 to defray shelter operational and program costs. San Luis Obispo Housing Assistance Program The City of San Luis Obispo proposes using $200,000 to establish a fund for the acquisition of land and/or buildings suitable for affordable housing. CDBG funds would be provided as direct grants, available to the City or its Housing Authority, non-profit housing agencies, and private- non-profit entities to acquire real property to assist the production of housing affordable to very- low and low-income households. Exhibit A a _c1 Recommended CDBG Projects, FY 1995 Page 2 Seismic Retrofit Loan Program The City of San Luis Obispo requests $200,000 to be added to $120,000 in FY 1994 CDBG funds for this purpose. The funds would be used for interest-loans to owners of commercial property to assist in seismic strengthening to meet State earthquake safety standards, and to encourage the preservation of historic unreinforced masonry buildings. Transitional Housing Services for Disabled Homeless Adults The San Luis Obispo City Housing Authority requests$60,000 annually for three years ($20,000 per year each from the City of SLO, County of SLO, and the City of Atascadero) to provide staff services to residents of "transition" housing for the three years remaining in the program. The program offers residents in transition housing, many of whom have multiple disabilities including HIV/AIDS and past substance problems, the life training and counseling to help them finding permanent housing. At-Risk Youth Program The City of San Luis Obispo proposes using$100,000 in FY 1995 to continue several successful programs started in 1994 to provide recreational services to at-risk youth and their parents. Funds will be used to support existing programs as well as for "seed money" for new programs. Services provided include: scholarships for childcare, aquatics, sports, pre-teen and teen intervention, and summer day camp; after school programs for at-risk students in fourth through sixth grades; expansion of HUD-EOC-Head Start programs for low-income children;-and child care and recreation programs for teen parents and homeless youth. CDBG General Administration The City of San Luis Obispo proposes to use $95,720 (about 10 percent of its total FY 1995 CDBG funding) to administer the City's CDBG programs. Under U.S. Department of Housing and Urban Development rules, participating jurisdictions can use up to 20 percent of total CDBG funds to defray their general administrative/planning costs. WLcneMsa.Mt City of San Luis Obispo CDBG FUNDING REQUESTS NOT RECOMMENDED FOR FUNDING, FISCAL YEAR 1995 AIDS Housing. The San Luis Obispo County AIDS Support Network requests$252,000 to help purchase a 12-unit apartment for low-income-persons diagnosed with HIV or AIDS. The site would be in the City of San Luis Obispo, with the specific location is to be determined later. Staff s primary concern is that the project's pro forma does not show sufficient revenue to cover operating expenses after paying mortgage principal and interest. Consequently, an additional funding source appears necessary, or the project description changed, for the project to be economically feasible. Moreover, while this is an important community project, other housing projects were considered to be more consistent Council priorities and adopted General Plan goals. Family Planning Clinic. The EOC requests $121,000 from the City and another$229,000 from the County to purchase their existing facility at 1306 Higuera Street in San Luis Obispo. EOC currently leases the facility, which provides contraceptive services, women's health services, sterilization, AIDS education and youth programs countywide. The program is not recommended for funding this year because facility purchase, while desirable, is currently not as high a priority as providing housing, emergency shelter, and at-risk youth services. Family Resource Center/Case Management. The San Luis Obispo Housing Authority is requesting$10,000 from the City and $40,000 from other jurisdictions in the County to fund the hiring of a case manager to provide job counselling and special needs for low-income persons. This was not recommended for funding because: 1) the amount of CDBG funds allocated to "public services" already exceeded HUD's target of 15 percent of total funding (Homeless Shelter, $120,000 plus At-risk Youth Services, $80,000 = $200,000/$9537720 = 21%); and 2) the added case management services would serve primarily South County residents. Las Casas De Familia is a request for $250,000 to develop 12 apartments for very low-income single parents. The proposal does not identify a site; however discussions with staff focused on two City-owned properties near downtown currently used as public parldng lots. Staff supports the concept, but believes that the proposal needed additional refinement, including identification of a specific site, before it could be funded. San Luis Obispo Historic Preservation Program. Staff feels that this program could duplicate the Seismic Retrofit Loan Program, since about 35 of the approximately 125 unreinforced masonry buildings were on the Master List of Historic Resources. It is suggested that a historic benefit component be added to the Seismic Loan Program which would give preference to historic buildings, or which would allow a higher loan amount than non-historic URM buildings. Dan Law Apartments Acquisition. The San Luis Obispo City Housing Authority and Peoples' Self-Help Housing Corporation have reached agreement that the Housing Authority will pursue- acquisition. The Housing Authority does not need or want the grant to help purchase the Dan Law Apartments. Exhibit B �,� CDBG Projects Not Recommended For Funding, FY 1995 Page 2 Women's Shelter Sewer Lateral. County staff, with the support of the CDBG staff of the participating cities, recommends that this program be funded from the County's "Special Urban Projects Fund." Consequently, City funding does not appear necessary. IO«71NG ILI, AGENDA xxv. n: :<<n:.y:.n .: L. '.{�n�,l v./�e:;:nn:`i4::v.E�R.C.:�.iw,:.:i;::.;<i.y`.:...pM:s'n;'::i.»:,jvv.:<i.^."3.C�+.:'';v�:':,:+�`.:¢.::.=4'.:::;i`:>.;:.;;::�:;:ji,>;4^::.Y:.;'.:i:..ii:::>,:.:.:ij;•.:i<:,�,.i_:j<>jv.:L::::v.>:::::.::j....e:i•i'.„i}.'.x.0L:I^:�:,n.'k:.>c:'.:.?n:::}�v.}::v.:•>x::q::J:>''.i; • 34 Pacific Streetx ✓Latin 0 San Luis Obispo, CA 93401 RECEIVED March 31, 1995 APR 3 1995 CITY COUNCIL >FAN LUIS owgo.CA COUNCIL ]DIR Mayor Allen Settle and Councilmembers VCAO O City of San Luis Obispo W ACAO ❑ 990 Palm Street �'�►TroRNEr O DI VCLERWMG 0 San Luis Obispo, CA 93401 ❑ ❑O FILE D SUBJECT: San Luis Obispo County Consolidated Plan e( ❑ CDBG Funding Recommendations _• Dear Board of Supervisors: The Latino Outreach Council (LOC) is dedicated to facilitate the equal and full participation of all members of the Latino community in the life and affairs of San Luis Obispo County. The Latino Outreach Task Force held its first meeting on July 30, 1992, and became the Latino Outreach Council in May 1994. The LOC commissioned a County Needs Assessment which indicated housing and employment were of major concern to our County's Latino population. To address these concerns, the LOC has encouraged service providers and elected bodies to utilize any available resource to expand opportunities for Latinos. In 1994 the County and a consortium of five cities(Grover Beach, Pismo Beach, San Luis Obispo, Atascadero and Paso Robles)became eligible for participation in the HUD CDBG and HOME entitlement programs. The amount of funding received is based on a formula linked to the number of persons in poverty, living in overcrowded or substandard housing, as well as overpayment for housing. Since Latinos comprise a large percentage of the low-income population, we have encouraged the use of CDBG and HOME funds, to the fullest extent possible, to meet their needs. The LOC wishes to express their general support for the recommended funding allocations in the Consolidated Plan. However, the LOC's Housing Action Committee has identified three concerns. First, the LOC is concerned with programs which propose to use CDBG funds for seismic rehabilitation of privately owned commercial buildings, with no linkage to low-income benefit. Such programs are proposed in the City of San Luis Obispo and Paso Robles. After discussions with the County, our understanding is that these proposed programs do not address low-income benefit, but are CDBG-eligible under an obscure section of the regulations called "spot blight". The LOC is very concerned with CDBG being used for seismic rehabilitation or studies which do not clearly document how low-income persons will benefit. Second, The LOC is concerned with the use of CDBG funds in Pismo Beach to remove architectural barriers on public buildings in lieu of utilizing the funds for affordable housing. Members of the LOC's Housing Action Committee have met with City staff to educate them on the housing needs in the City. They have also participated in numerous City Council and San Luis Obispo City Council March 31, 1995 Page Two Redevelopment Agency meetings the past two years, explaining the lack of housing opportunities in the community. These meetings include previous CDBG hearings, as well as Redevelopment Plan hearings. The recommendation in the Consolidated Plan to use the City's CDBG funds for improvements to the Veteran's Building appears to disregard earlier community input. Finally, the LOC would like to encourage that, as soon as possible, low-income families be included in the policy making and development of entrepreneurial activities being proposed by the Economic Vitality Corporation. The EVC received a 1994 allocation of CDBG funds with direction from the Board of Supervisors that low-income families be included in EVC decision- making. To date this bas not occurred. The Consolidated Plan now recommends an additional 1995 allocation of CDBG funds for the EVC. The LOC is concerned that the Board of Supervisors' direction for low-income participation be carried out as soon as possible. Thank you for your consideration of our comments. Sincerely, 11 w Antonia Hampton Chairperson LATINO OUTREACH COUNCIL APR-04-95 TUE 13;35 EOC FAX NO. 8055498388 P, 01 MErrVG 9S.AGENDA oZ DATE. = ._ITEM #� W INDUS IRIAL WAY SAN LUIS 00K) CAI.II-URNIA 93401 ECONOMIC Ol'I'ORNMTY WMMISSION . SINCE 1905 (ROS) 9 435) MEMORANDUM LWA ]RE IR (Confidential) FIN HIEF CHFTO: Mayor Allen Settle RRFRO abeth 'Biz" Steinberg,Executive DirectorIR DATE: Apri14, 1995 We completed all the Council member visits late yesterday. We believe there is support for the ECC Family Planning clinic purchase being funded from CDBG by Council Members. I spoke with John Dunn last week who referred me to Arnold Jonas. Arnold indicated the 2 priorities for CDBG were affordable housing and high risk youth. I said we could support those;however,health care is also a key need for low income persons. I believe we would all like to know city staffs approach in determining the funded list. THE PURPOSE OF CDBG IS LOW INCOME BENEFIT. Thank you for your guidance and support. We'll be there tonight! +rnrn4rr � �/ W� 1 r RECEIVED APR A 1995 CITY CLERK SAN LUIS OglSpp CA •CbW Cam Res(nn-ce Crnmevion.Fait rpauy Seruixc .FtwW Ca)ncennaun.Wcatbe>ization knaCPs .Family Flannft Services.Head Stun•116mclea Sleeker.Mlpaaa Cbild Care a Jearior Healib&&ming.ra7z&mnaq Propram. ib � ::AUTMOq,�,l'. ME, -iG,�. AGENDA ;46 .�..., �,_J DATE; 5' ITEM ` 0JJJ ousinclAuthoizit so s•,.. I� OF THE CITY OF SAN LUIS OBISPO 0 to 487 Leff Street P.O Box 3289 • San L Uj s Obispo,CA93406 • Phone:(805)54S 4478 • Fax:(805)54311992 Executive Director-Secretary George J. Moylan COUNCIL CDD DI'�AO ❑ FIN DIR March 30, 1995 CAO ❑ FIRE CHIEF ATTORNEY ❑ PW DIR The Honorable Allen K. Settle CLERK TRIG ❑ POLICE CHF Mayor of the City of San Luis Obispo ❑ MaMT TEAM ❑ REC DIR 990 Palm Street ❑ C R D FILE ❑ UTIL DIR San Luis Obispo, CA 93401 J ❑ PERS DIR Dear Mayor Settle: As a local taxpayer I must praise city staff for protecting the health of the general fund. But as a representative of a provider of much needed housing assistance in a country where the current emphasis is on cutting taxes rather than meeting the needs of it's citizens I must speak against the Community Development Block Grant (CDBG) plan outlined in the staff report prepared for your guidance. Whatever you adopt as a spending plan Tuesday night is not a black and white issue. However, I would submit to you that the plan proposed by staff is of at least equal benefit to the community at large as it is to low and moderate income persons. Unfortunately that is not the intent of the Block Grant program. Title I of the Housing and Community Development Act of 1974 clearly states, 11 The primary objective of this title and of the community development program of each grantee under this title is the development of viable urban communities by providing decent housing and suitable living environment and expanding economic opportunities, principally for persons of low and moderate income". The primary objective of the $120,000 earmarked in the proposed plan for the Homeless Shelter's is to save this amount from the general fund account which it came from previously. The primary objective of the $50,000 budgeted for the homeless services center is to get the homeless out of downtown. And the $150,000 budgeted for the Marsh Street curb rams and the $95,720 budgeted for administration have a primary objective of saving general fund dollars. That's a total of $415,720 or 44% of the total available CDBG which does not meet the primary objective of this 100% Federally-funded program. Frankly that 44% of directed funds is the greatest fear social service providers have when we discuss the merits of block granting funds to States, Counties and local government. What is scary is that the 44% comes in a community that claims, and for the most part is, quite responsible in attempting to meet the needs of all of its residents. MAR 3 1 1995 ITYOPORTUN - CITY CLERK SAN LUIS OBISPO,CA As stated earlier we are talking about degrees here and I certainly do not wish to see the contribution to the homeless shelter discontinued and I do support the need for day services for our homeless population. But I just as certainly question the need for spending $150,000 in CDBG funds for Marsh Street curb ramps and $95,000 for administration, especially when the County, not the City, is the lead agency in administering these funds. And especially when several needed proposals are not being funded. I plan to direct my attention to one-of those, the AIDS Support Network Residential Project, during my testimony Tuesday night. A long-range problem which has to be addressed soon is the cost of administration of the overall CDBG program. Between the County and it's cities a total of $517,406 is being budgeted for the administration of the CDBG and HaE programs. For a program with a total expenditure of approximately $4.7 million this is a huge amount of overhead. Such an expenditure would probably support a full-time staff of 8 to 12 people. It is obvious to those of us working with the program that the support level being provided by the County and it's cities is not consistent with what could be provided by a staff of 8-12 fulltime staff members. With this being the program's second year of operation under a three year contract with the County I would suggest to you that this is an area to explore in depth when the contract expires. Sincerely, George J. Moylan Executive Director ccA. Roalman D. Romero K. Smith D. Williams J. Dunn S. Nelson