HomeMy WebLinkAbout03/04/1997, 1 - A. PRELIMINARY REVIEW OF THE 1997 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) AND DRAFT 1997 CONSOLIDATED PLAN ONE-YEAR ACTION PLAN. B. CONSIDERATION OF AMENDMENTS TO THE 1994 AND 1995 CDBG PROGRAM YEARS. C. FINAL REVIEW OF THE SECTIO councilMmti"D�3-4-(�'
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CI TY O F S AN L U IS O B I S P O
FROM: Arnold Jonas, Community Dev ent Director
PREPARED BY: Jeff Hook, Associate Plann�
SUBJECTS:
A. Preliminary Review of the 1997 Community Development Block Grant Program (CDBG)
and Draft 1997 Consolidated Plan One-Year Action Plan.
B. Consideration of.amendments to the 1994 and 1995 CDBG Program Years.
C. Final Review of the Section 108 federal guaranteed loan application:
CAO RECOMMENDATION: Take public testimony and: 1) continue consideration of the
1997 CDBG Program and Draft 1997 Consolidated Plan One-Year Action Plan to April 1,
1997; 2) conceptually approve the amendments to the 1994 and 1995 CDBG Program Years,
as described in Table 3 and continue them to April 1, 1997 for final action; and 3) adopt a
resolution approving the Section 108 federal guaranteed loan application and authorize the
CAO to submit it to the Board of Supervisors and HUD for final approval.
REPORT-IN-BRIEF
The City received 15 CDBG funding requests for the 1997 Program Year, totaling about $1.55
million. The total requested exceeds this year's CDBG entitlement of$935,220; consequently,
the City will not be able to fund all of the requests during this fiscal year. However, an additional
$206,600 is available from the 1996 CDBG Program year to be reallocated, since it was intended for
Section 108 loan repayment and was not used; and an additional $276,008 is available in unused
seismic grant funds, with $145,258 recommended for projects and $130,750 offsetting General Fund
Support. One HOME funding request was received for $200,000, and $941,000 is believed available
in 1997 HOME funds, countywide.
The County has issued a draft Consolidated Plan. The U.S. Department of Housing and
Urban Development (HUD) requires a 30-day public review period for the Plan before the
proposed CDBG activities can be approved. To meet County and HUD requirements, the
Council will review CDBG-related items at two meetings: the first meeting allows the public
to comment on proposed 1997 CDBG activities and draft Consolidated Plan, outlines possible
amendments of previous CDBG program years, and authorizes submittal of the Section 108
federal guaranteed loan application. At its second meeting - tentatively scheduled for April V
— the Council can take final action on the 1997 CDBG program.
Council Agenda Report - CDBG Funding
Page 2
DISCUSSION
Background. In December, the County of San Luis Obispo solicited requests for use of
federal grant funds. Funding applications were due at the end of January. In early February,
the County issued a Draft Consolidated Plan (CP) describing the Urban County's proposed
1997 CDBG and HOME activities. HUD mandates a 30-day public review period before
cities or the County can approve the Plan. During this review period, the participating cities
should review the proposed CDBG and HOME activities and the draft Consolidated Plan and
then continue these items until the 30-day public review period is over. To meet that
requirement, the Council should continue final action on the CDBG Program to April 1° so
that final Council action is taken after the public review period closes. At that meeting, the
Council should forward its funding recommendations to the Board of Supervisors. The Board
is expected to endorse Council-adopted programs, provided the programs meet HUD rules.
Based on preliminary information from HUD, the Urban County expects to receive CDBG
funds totaling about $2.6 million and $941,000 in Home Investment Partnership Program
(HOME) funds, although the final amount available will not be known until Congress approves
the budget later this year. $71,000 is also available to the Urban County as an Emergency
Shelter Grant; however as in previous years, it is likely that the Urban County will refuse the
federal ESG grant so that it may be eligible to compete for the potentially larger State ESG
grant. The City of San Luis Obispo is expected to receive $935,220 in CDBG funds. In
addition, about $206,000 in Section 108 loan repayment funds are available as carry-forward
from last year's program, since these funds were not drawn down in 1996. $145,258 in
unused 1994 and 1996 CDBG Seismic Grant funds is also available for reallocation, as further
explained in this report.
Consolidated Plan/HUD approval. Under our Urban County cooperation agreement, the
Council should act on the "One-Year Action Plan", a part of the HUD-required Consolidated
Plan (CP). Most of the CP is background information on needs and demographics, and is
unchanged from previous years. The attached "One-Year Action Plan" describes the planned
CDBG and HOME activities for 1997, and this is the part of the plan that requires Council
review and recommendation to the Board of Supervisors. Along with the cities' 1997 CDBG
funding recommendations, the CP will be scheduled for Board of Supervisors consideration on
April 15th.
Council reviews the CP but has approval authority only over those CDBG activities located
within the City. Council may recommend projects to receive Special Urban Projects and
HOME funds, although this step is not required. The final CP will include each jurisdiction's
adopted CDBG program, and the Board's approved Special Urban Projects and HOME
projects before it is submitted to HUD in May. HUD then reviews the plan and notifies the
Urban County in June once it is approved. Funding becomes available starting in late July or
early August once HUD-required agreements and environmental review requirements are
completed and the federal budget is approved.
Council Agenda Report - CDBG Funding
Page 3
Council Goals and Priorities. when the City began the block grant program in 1994, the
City Council identified affordable housing as the number one funding priority. 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
activities are still important community needs in 1997. At previous meetings, Council has also
identified several specific activities as meriting block grant funding, either as new or
continuing City projects:
■ Develop a Homeless Day Services Center on City-owned property on Prado Road;
■ Continue joint City/County funding of the Homeless Shelter on Orcutt Road;
■ Provide street curb ramps to remove barriers to disabled persons;
■ Provide funding to acquire land for affordable housing;
■ Continue to provide recreation, childcare and other services for at-risk youth;
■ Set aside funding for initial interest payments on Section 108 loan of $1.65 million for
affordable housing and for handicapped access and related improvements at the County
Historical Museum.
HUD Objectives and rules. The Urban County's CDBG activities must, by law, meet
HUD objectives and rules. HUD has three broad national objectives:
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.
Projects must also meet federal eligibility criteria and rules. For example, HUD requires that
at least 70 percent of the Urban County's grants go to 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. Up to 15 percent
of the Urban County's CDBG funds can go toward Public Services. The recommended 1997
program meets these objectives and rules.
Community Needs Hearings. As required by HUD, the County held "needs" hearings to
allow the public to identify.community problems and needs, including one held at the San Luis
Obispo Veteran's Building. Minutes of that meeting are attached. About 25 persons,
including citizens and representatives of housing agencies, housing support groups, and social
service organizations identified the following as important community needs:
1. Affordable housing for a broad spectrum of City residents, including low-income
households, disabled persons, battered women and children, recovering substance
abusers, and elderly persons;
2. More "living-wage" jobs;
3. Better communication with Hispanic community and low-income groups; and
Council Agenda Report - CDBG Funding
Page 4
4. More `outreach" efforts to help persons understand and use the CDBG process.
Project Evaluations and Recommendations. Table 1 lists.the CDBG/HOME requests
submitted for the 1997 Program Year. Requests exceeded available funds by $269,417.
These requests were reviewed by a budget committee consisting of staff from Administration,
Public Works, Finance, Parks and Recreation and Community Development Departments.
Committee members evaluated the proposals based on HUD eligibility rules, feasibility,
consistency with General Plan and City Council goals, and community needs. Based on the
Committee's recommendations and Council's previous actions regarding CDBG funding
priorities, staff prepared Table 2 listing the recommended CDBG activities and funding levels
TABLE 1: 1997 Program Year CDBG/HOME Funding Requests
Actl..... Project Name Applicant Description 7+�n71i�1j1�:.
T ;`
Public At-Risk Youth City of SLO/EOC Recreation Services for 100,000
Services Program low-income families
Homeless Shelter City of SLO Operating funds for 120,000
Operations SLO Homeless Shelter
Homeless Day Center City of SLO food and day services 40,000
Operations for homeless persons
Teens Against American Lung Association Educational Prognim to 5,000
Tobacco Use reduce teen smoking
Public Homeless Shelter SLO Housing Authority Repair and improve 40,000
Facilities Improvements Homeless Shelter
Historical Museum City of SLO Section 108 loan interest 28,800
Improvements payment
Handicapped Access City of SLO Install handicapped73,451
Rama ssn
Ramps access ro public
ASN Housing Aids Support Network Upgrade electrical 21,000
Improvements service at Adriance
Apartments
Women's Shelter SLO Women's Shelter, Inc. Construct new storage 17,000
Storage Building shed for Women's
Shelter
Street Drainage City of SLO Replace undersized 130,000
Improvements storm drains
Economic Revolving Loan Economic Vitality Corp. of jobs for low/moderate 200,000
Development Fund SLO income groups
Housing Affordable Housing City of SLOSection 108 Loan intent 44,200
Program Pint
Council Agenda Report - CDBG Funding
Page 5
Home Repair Program EOC Provide home repairs for 50,000
low-income seniors
Margarita Area Site SLA Housing Authority Acquire land for 300,000
Acquisition affordable housing
Affordable Rental Peoples' Self-Help Housing Acquire/Rehab 200,000
Housing Corporation affordable rental lousing
Program CDBG Program City of SLD Cost recovery for 1871044
Administration Administration I I planning/admin.services
TOTAL FUNDS REQUESTED 1,556,495
1997 CDBG FUNDS AVAILABLE 1,287,078
(1997 CDBG Funds of $935,220,plus reallocated 1994 and 1996 CDBG Funds of $145,258, plus
reallocated 1996 CDBG Funds of $206,600)
FUNDING SHORTFALL [$269,4171
Because HUD wants grantees to undertake projects as soon after grant approval as possible,
staff recommends giving preference to: 1) activities which can be undertaken relatively
quickly; 2) to programs with a continuing, urgent need, such as operation of the San Luis
Obispo Homeless Shelter, At-risk Youth Services, removal of architectural barriers to disabled
persons and operation of Prado Road Homeless Day Center; and 3) to those new programs
which appear most consistent with Council goals and priorities such as the Revolving Loan
Fund for the Economic Vitality Corporation to expand job opportunities for low/moderate
income persons and land acquisition for affordable housing.
In addition, the 1997 CDBG Program includes a recommendation for funding storm drain
improvements in low/moderate income neighborhoods. This the first time staff has
recommended using CDBG funds for a capital improvement project (CIP) of this kind. This is
an eligible activity, and given the City's significant drainage needs and limited CIP budget, it
appears to be an appropriate use of grant funds at this time. Exhibit A describes recommended
activities, and Exhibit B describes the activity not recommended.
TABLE 2: Recommended CDBG Activities and funding levels for the 1997 Program
Year confin ing CDBGprograms in italics
:ate or 11.1K. A pLcaa>t not
Public Services At-risk Youth Program City of SLO Recreation Services for 46,450
low-income families
Homeless Shelter EOC Operating funds for SLO 120,000
Operations . Homeless Shelter
Homeless Day Center City of SLO Operating funds for 40,000
Operations Homeless Day Center
Council Agenda Report - CDBG Funding
Page 6
. ...... .... ............................................... ............ .......
. ..............................
............................................
........... .....SUBTOTAL f.160/o
:b. :- .CDBG'fi...u....d..s.......................... .
....
.......
.........
Public Facilities Homeless Shelter SLO Housing Repair and Improve 20,0002
Improvements Authority Homeless Shelter
Historical Museum City of SLO Section 108 Loan interest 28,800
improvements payment
Handicapped Access City of SLO Handicapped access 170,5843
Ramps ramps for public streets
Street Drainage City of SLO Replace undersized storm 130,000
Improvements drains
...................................
.............. a.......... UBMTA...L...(27°/i..
of
t..o..t.a...l.. .......d.....s........a...v......
......... ..............................................................:..::.:::..::.
.............................349,384 ...
.........................
E=conomic Revolving Loan Fund Economic Vitality Expand jobs for tow/mod. 150,000
me
Development Corp. of SLO Income groups
............... .... ........... ..........................
..............................................................................
�!.. I � :(12WOA.....o..t.al. i.h..m... av lablf50 004
......... .........................................................
..................
...............
Housing Affordable Housing City of SLO Section 108 Loan 44,200
Program repayment
Home Repair Program EOC Provide home repairs for 50,000
low-income seniors
Margarita Area Site SLO Housing Acquire Lind for public 300,000
Acquisition Authority housing
............. . ................
.... .... . .............. ....... ... .......................................................
. ............. ....................................................
....................................
......................:: . I....vo....total.fi..m. csava.ildbl
.. ........ .
..............................
394,20 .........
Program CDBG Program City of SLO Administrative services 187,044
Administration Administration
... . .......
........
... ...... . ............... SUBT0...T....A......L.... 2....0....%. .
!o.f..1....9...9..7...C....D...96Wl0.c. :uon).
.......... ;T87044
.
TOTAL FUNDS ALLOCATED $1,287,078
TOTAL FUNDS AVAILABLE,includes: $1,287,078
-1997 CDBG Funds(estimate): $935,220
--Carry forward fiords from 1994, 1995,and 1996(see Table 3) $351,858
NOTES:
I Due to the 15%Countywide cap on public services, $206,450 is the maximum CDBG
expenditure on public services in the City of SLO during the 1997 Program Year. Thus, none
of the three recommended public service activities can be increased without decreasing one of
the other two.
2. '/2 of the funding requested for the Homeless Shelter Improvements is recommended to come
from the County of SLO.
Council Agenda Report - CDBG Funding
Page 7
3. Public Works Department's original request was for $73,451 for handicapped access
improvements. Staff recommends that funding for this activity be increased by $97,133 using
reallocated 1996 CDBG Seismic Grant Funds to increase the number of handicapped access
ramps or other accessibility improvements at City facilities which can be installed in 1997-98.
1997 Public Services Spending
HUD limits the Urban County's total spending on public services to 15 percent. For the
fourth year, the City of San Luis Obispo is exceeding the 15 percent cap; however other
jurisdictions in the Urban County are not using their full public service allotment.
Consequently, it is possible for the City to use up to 22 percent of its 1997 CDBG entitlement
for public services, or $206,450. However, to fully fund the Homeless Shelter, Homeless
Service Center (operations), and At-Risk Youth Services with CDBG funds as in the 1994-
1996 Program Years, $260,000 is required. There is a funding shortfall of $53,550 in public
service funding which can be partially offset this year with the use of$30,000 program income
from past State CDBG grants. Because Homeless Shelter and Homeless Services Center
operating costs are fairly fixed, it is recommended that the remaining shortfall ($23,000) be
taken from the At-Risk Youth Program, which is more flexible. Alternatives for restoring this
1997-98 shortfall will be presented with the 1997-99 Financial Plan.
However, even if a solution is found, the coming year, the bottom line is that there is not
enough program income to continue to fund the public services shortfall in future years. Thus,
in future years, public services will have to be cut; or General Fund support will have to be
increased to maintain funding for these programs at their 1994-96 levels. This situation will
only be worsened if new public service projects are identified by other cities in future years,
leaving no room beyond the 15% cap. Again, the structural and ongoing problem will need to
be addressed in the 1997-99 Financial Plan.
1994, 1995 and 1996 Program Amendments. HUD rules allow jurisdictions to amend
previous CDBG program allocations. Staff recommends several amendments to the 1994,
1995 and 1996 Program Years, to be approved at the same time the Council acts on the 1997
CDBG Program. These amendments are shown in Table 3. They are intended to do two
things: to reimburse the General Fund for the City's actual expenses in administering the
block grant program during prior years; and to reallocate unused seismic grant funds.
The Council originally set an administrative cost target of 10 percent, although HUD allows
jurisdictions to claim up to 20 percent for administrative costs. Now that the City has had
several years of experience with the CDBG program, an accounting of staff hours indicates
that actual City administrative costs have averaged 20 percent over the last three years. In
essence, the General Fund has subsidized the CDBG program's administrative costs. By
increasing the allocation to 20 percent for 1994 through 1997, an additional $224,476 would
be available to the General Fund and the City would have greater flexibility to meet other
needs appropriate for General Fund support. For example, in April staff will recommend a
/—7
Council Agenda Report - CDBG Funding
Page 8
new, administratively streamlined seismic grant program using General Funds. By
reimbursing actual administrative costs and amending previous years' CDBG activities, this
new program's cost could be entirely offset.
The amendments reallocate $276,008 in unused seismic grant funds to meet HUD objectives
for timely use of funds. In the three years that the City has offered the seismic grants, only
two grants totaling $20,125 have been made, possibly due to federal "strings" which increase
seismic retrofit construction costs. The seismic grant funds should be reallocated to ensure
that grant funds are used in a timely manner.
TABLE 3: 1994, 1995 and 1996 CDBG Program Year Amendments ($)
Activtty Appl�cagt Grtgtnal Balance; PropPtt
.AUocahon >C ;emamrtguttd ,
1994 PROGRAM YEAR.
Seismic Retrofit City of SLO 120,000 99,875 0
Grant Program
Administrative City of SLD 135,750 0 35,750
Costs
Remaining Balance Carried Forward 64,125
1995 PROGRAM YEAR
Seismic Retrofit City of SLO 79,000 79,000 0
Grant Program
General Program City of SLD 95,720 0 95,000
Administration
Remaining Balance Carried Forward 116,0001
1996 PROGRAM YEAR
Seismic Retrofit City of SIA 97,133 97,133 0
Grant Program
Section 108 Loan City of SIA 206,600 206,600 0
Repayment
Remaining Balance Carried Forward 303,733
F---Total Remaining Balance Carried Forward to 1997 Program Year 351,858
Section 108 Guaranteed Federal Loan. On December 3, 1996 the City Council
authorized preparation of the Section 108 loan application in the amount of $1.65 million to
fund the development of affordable housing ($1 million) and improvements to the County
Historical Museum ($650,000). The loan application is attached. For the first year, loan
payments total $73,000 to cover interest payments on an interim loan which funds the Section
Council Agenda Report - CDBG Funding
Page 9
108 activities. Once HUD holds a public bond offering, the "permanent" Section 108 loan
becomes effective, with six annual payments averaging $324,000 per year. To proceed with
the loan, Council should adopt the attached resolution authorizing submittal of the loan
application to HUD. The application must then go to the Board of Supervisors, as an Urban
County project, for final authorization. It can take six months or longer before primary loan
funds become available, so it is in the City's interest to submit the loan application as soon as
possible. Before the CAO approves final loan documents, the Housing Authority will enter
into an agreement to provide security for the $1 million loan portion to be used for affordable
housing; the Historic Museum itself will secure the $650,000 loan portion to be used for
museum improvements. An agreement delegating borrowing authority will also be executed
between the City and County.
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, provide direct benefit to very needy groups (very-low income,
disabled persons, at-risk youth), and would not be feasible without special funding assistance.
$145,085 is available in the 1997 Program Year. Staff proposes that Special Urban Projects
funds be allocated in the amounts of$21,000 toward upgrading electrical services at the AIDS
Support Network Housing; and $17,000 for construction of a storage shed for the Women's
Shelter, as shown in Table 4. Both of these facilities serve critical low-income needs of
residents throughout San Luis Obispo County.
TABLE 4. Recommended Special Urban Projects For The 1997 CDBG Pro ram
Rectum
Pr ect A1ame APPttcat�t
N,... . Fund'm
.. ...._
AIDS Housing Electrical Service Upgrade AIDS Support Network 21,000
SLO
New Storage Shed for Women's Shelter Women's Shelter Inc. 17,000
r___ TOTAL 1 1 =38,000
HOME Funding. The HOME program is specifically designed to help communities
provide affordable housing. A 25 percent local match is required. The local match is met by
the City, its Housing Authority, or the community non-profit requesting the funding. Unlike
CDBG funds, HOME funds can be used to construct new housing. It can also be used for a
variety of housing assistance such as first-time homebuyer loans or payment of impact fees.
The Urban County expects to receive HOME funds totaling $941,000 in 1997. Peoples' Self-
Help Housing Corporation (PSHHC) requested $200,000 in.either CDBG or HOME funds to
purchase and operate low-income rental housing on Brizzolara Street. Staff recommends that
/-9
Council Agenda Report - CDBG Funding
Page 10
the Council endorse PSHHC's request for the use of $200,000 in HOME funds in 1997, as
shown in Table 5.
TABLE 5: Recommended HOME Project For The 1997 Program Year
.......... ......
...................
............
lartte
.....
..1..i. cani:
..
N.-
.... ......
Acquisition and Rehabilitation of Affordable Rental Peoples' Self-Help Housing 200,000
Housing Corporation
Project Not Recommended for CDBG Funding. Teens Against Tobacco Use,
proposed by the American Lung Association, is not recommended for funding. Although it
meets a community need, public services funding is very limited due to the 15 percent cap on
public services spending countywide. Consequently, staff recommends allocating public
service funds to higher priority, on-going programs for homeless persons and at-risk, low-
income youths. In addition, staff continues to recommend against using block grants for
small grants, given that CDBG administrative costs can be used more effectively with fewer,
larger projects. Small grants such as this one would be best pursued through the Human
Relation Commission's Grants-In-Aid Program.
FISCAL IMPACT
CDBG funding will have an overall beneficial fiscal effect. To the extent that qualified, on-
going City programs are funded through the CDBG program, more General Fund monies are
available for other important capital projects and programs. Based on the City's Cost
Allocation procedures and timekeeping, actual program administration costs have exceeded the
10 percent allocation previously set by Council. By setting a cap on General Administration
funding below actual costs, the City is subsidizing costs to run the CDBG program, thereby
reducing General Fund monies available for operating programs or capital improvement plan
projects. It is true that by using less administrative funding than allowed the City makes more
CDBG funds available for specific activities; however, these funds come with federal "strings"
such as public service limits or prevailing wage requirements which often limit spending
flexibility.
Council Agenda Report - CDBG Funding
Page 11
TABLE 6: Recommended Funding Allocation by HUD Eligibility Category and
Percent of Total CDBG Funds Available (Includes Reallocated 1994 and 1996 CDBG Funds):
.. . ..... . ... ......
,, - 1
A a --pi
................................
M..
MM . ... ...... ................
X R :
...... ..... .......
.............
-Public Services 206,450 22% 206,450 16%
-Public Facilities 222,126 22% 349,384 27%
Economic Development 150,000 16% 1502000 12%
-Housing 187,600 20% 3949200 31%
-Program Administration 187 044 20% 187044 14%
-IJ
Total 953,2201 100% 1 1287 078 100%
*Includes$351,858 of carry-over funds from 1994, 1995, and 1996 program years.
These figures tend to downplay the City's actual financial commitment to housing, because
they do not include the $1 million Section 108 loan for the development of affordable housing
and homeless shelter funding is not counted under HUD's category of "housing." When the
Section 108 loan and homeless shelter operation funding are included, the City's support for
housing and related services in 1997 exceeds $1.5 million.
ALTERNATIVE
1. Revise candidate CDBG and HOME projects and funding levels. Council members
may indicate their intention to change the list of City projects to receive CDBG
funding, and/or to change the funding levels from those recommended; and to suggest
possible amendments to previous CDBG years.
Attachments:
-Exhibit A: Recommended CDBG Projects
-Exhibit B: CDBG Projects Not Recommended
-Draft 1997 Urban County CDBG Program Activities
-Section 108 Loan Application
-Minutes from Community Needs Workshop
NOTE: 1997 CDBG Project Applications are available in Council Office.
Jh/CDBG97.rpt
Staff Report
Page 12
EXHIBIT A
City of San Luis Obispo
CDBG FUNDING REQUESTS RECOMMENDED FOR FUNDING,
Program Year 1997
At-Risk Youth Services Program
The City of San Luis Obispo proposes using $46,450 in CDBG funds, plus $30,000 in
program income from a previous State block grant, to continue several successful programs
started in 1994 which provide recreational and educational services to at-risk youth and their
parents. Funds are requested to support existing programs as well as for "seed money" for
new programs. Services proposed 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. Due to
funding limits, funding may not be available to undertake one or more of the above programs.
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.
Homeless Services Center
The City of San Luis Obispo requests $40,000 to cover operation costs for the new Homeless
Services Center, expected to open by June 1997. The center will provide facilities for the
provision of various services to homeless persons and those vulnerable to becoming homeless.
The facility will provide hot meals, showers, laundry facilities, counseling, day care and other
services.
Homeless Shelter Improvements
The Housing Authority of the City of San.Luis Obispo proposes using $40,000 install new
roofing, flooring and a protective awning in the rear yard; and to install public restroom
facilities at the rear of the main house. The purpose of the improvements is to address
building problems caused by deferred maintenance, and to provide safe, sanitary facilities for
homeless persons.
Staff Report
Page 13
Section 108 Loan Interest Payment: Historical Museum Handicapped Access
Improvements
The City-owned Historical Museum currently does not meet State or Federal rules for
handicapped accessibility. The Human Relations Commission designated this building has
high priority for handicapped accessibility due to its location in Mission Plaza and function as
an important community attraction for both visitors and residents. The City of San Luis
Obispo proposes using $650,000 in Section 108 loan funds to provide handicapped
accessibility and to correct other building code deficiencies.
Handicapped Access Ramps
The City's Public Works Department proposes using $73,451 to install curb ramps at 14
locations in the City, as part of its on-going program to improve accessibility for disabled
persons and to comply with Americans With Disabilities Act (ADA) requirements.
Storage Building for Women's Shelter.
The Women's Shelter requests about $17,000 to replace a deteriorating metal shed with a new
36' X 14' food storage building. The new building would allow proper storage of food and
other items necessary to support the 10-bed emergency shelter. It would allow the shelter to
accept larger food donations by overcoming problems with lack of space and spoilage in the
current facility. build a new purchase their existing facility at 1306 Higuera Street in San Luis
Obispo. The Women's Shelter received $63,000 in FY 1995 CDBG funds for installation of a
sewer lateral. The storage building request is recommended for funding through the Special
Urban Projects fund because it serves a Countywide clientele and meets a special need for
which funds are not otherwise available.
Electrical Upgrade for ASN Housing
AIDS Support Network, a non-profit agency, proposes using $21,000 in CDBG funds to
upgrade the electrical services for nine, one-bedroom apartments acquired by the agency in
1996 for very-low income housing. The acquisition was partially funded with $206,000 in
CDBG funds from the City of San Luis Obispo. Because the units were partially funded with
City funds, the apartments must remain affordable for at least 30 years. The apartments are
listed on the City's Master List of Historic Resources and is known as the Adriance
Apartments. The project would replace existing, substandard electrical service to each unit to
provide safe, adequate electrical service which meets current construction code. The upgrade
is recommended for funding through the Special Urban Projects Fund because it serves a
Countywide clientele and meets a special need for which funds are not otherwise available.
Staff Report
Page 14
Storm Drain Improvements
The City's Public Works Department proposes using $130,000 to install new storm drains or
to replace undersized, inadequate storm drains in public streets at three locations: Cerro
Romauldo and Tassajara Streets; Chorro at Rougeot Streets; and Hutton and Branch Streets.
The project is eligible as installation of new public facilities, and would serve primarily areas
designated as having at least 51% low or moderate income persons. The project is needed to
improve public safety and prevent damage to homes and property due to flooding.
Revolving Loan Fund for Economic Development
The Economic Vitality Corporation of San Luis Obispo County proposes using $200,000 in
CDBG funds to establish a revolving loan fund for economic development. This is part of a
countywide effort to raise a pool of loan funds through public and private sources. These
funds would then be used to provide seed and working capital to "micro" business enterprises
(companies with five or fewer employees, one of which must be the owner) to enhance local
job growth for low and moderate income wage earners. Eventually (3-4 years), further
funding of this program will not be necessary as loan funds begin to "revolve" at an adequate
level due to repayment of loan principal and interest.
Affordable Housing Program
The City of San Luis Obispo proposes using $44,200 to pay interim interest costs for a Section
108 federal guaranteed loan in 1997. The City intends to borrow $1 million to enable the
City's Housing Authority to purchase land for the development of affordable housing.
Home Repair Program
The Economic Opportunity Commission requests $50,000 to help low- income seniors and
disabled persons repair or upgrade their homes. This is proposed as a Countywide program,
with funding also requested from the other jurisdictions in the Urban County. The work
would involve weatherizing to conserve energy, installing safety improvements, removing
architectural barriers, repairing leaky plumbing, and general repairs in rural and urban homes.
Margarita Area Site Acquisition
The Housing Authority of the City of San Luis Obispo proposes using $300,000 in CDBG
funds to acquire a site for 20-units of low-income housing in the Margarita Expansion Area.
The Authority anticipates using syndicated tax-credits and private mortgage funding to develop
a $2 million dollar housing complex. The Authority's non-profit affiliate, the San Luis Obispo
Non-Profit Housing Corporation, would develop the units and be a General Partner.
Acquisition funding now would allow timely development during the anticipated time frame
Staff Report
Page 15
for annexing the Margarita Area, by 1999.
Acquisition and Rehabilitation of Affordable Rental Housing
People's Self-Help Housing Corporation proposes using $200,000 in either CDBG or HOME
funds to acquire and rehabilitate a 5-unit apartment complex on Brizzolara Street in San Luis
Obispo. The complex has one 3-bedroom and four 2-bedroom apartments, and will be
targeted for occupancy by low-income, special needs households. The apartments will be
remodeled to correct any construction code violations and to accommodate the needs of
disabled persons. PSHHC will own and manage the complex as affordable rentals for low-
and very-low income persons. The City recommends that the request be funded through
Countywide HOME funding.
Program Administration
The City of San Luis Obispo proposes to use $187,044 (20 percent of its total 1997 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 and overhead costs, and City timekeeping has
shown that this amount is needed to defray actual city costs to administer the CDBG program.
Staff Report
Page 16
EXHIBIT B
City of San Luis Obispo
CDBG FUNDING REQUESTS NOT RECOMMENDED FOR FUNDING,
Program Year 1997
Teens Against Tobacco Use
The American Lung Association of the Central Coast requests $5,012 in CDBG funds to fund
an education program designed to prevent teen smoking. Although it appears to be a
worthwhile community project, it is not recommended for funding because there is a 20
percent HUD cap on public services funding using CDBG. Consequently, the City does not
have enough CDBG public service funds to continue full funding to homeless persons shelter
and day use facility, and to at-risk youth - high-priority activities to be carried forward in
1997.
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CITY OF SAN LUIS OBISPO
SECTION 108 LOAN GUARANTEE APPLICATION
Submitted to:
County of San Luis Obispo
Submitted by:
City of San Luis Obispo
990 Palm Street
San Luis Obispo, California 93401
March 7, 1997
CITY OF SAN LUIS OBISPO
SECTION 108 LOAN GUARANTEE
APPLICATION
LOAN REQUEST
The City of San Luis Obispo is requesting $1,650,000 in Section 108 Loan Guarantee funds to
assist with property acquisition in association with the development of affordable housing units
and for the rehabilitation of a designated historical structure. All of the proposed projects sites are
located within the City. The Section 108 request is within the maximum loan amount of five
times the City's Block Grant allocation of approximately $926,374 for the 1997-98 program year.
The City will transfer $1 million of the Section 108 funds to the Housing Authority of the City of
San Luis Obispo (HASLO) for the development of affordable housing.
PROJECT BACKGROUND AND DESCRIPTION
With the Section 108 funds being allocated to two separate subrecipients, the request has been
separated based on each agency's proposed projects.
Housing Authority of the City of San Luis Obisno
Amount Of Section 108 Funds Requested: $1,000,000
Project Background: The Housing Authority of the City of San Luis Obispo was established in
1968 and currently provides services to over 1,500 lower income individuals and families. The
City Housing Authority is unique in that it acts as the housing authority for the City while
operating the Section 8 program throughout the County of San Luis Obsipo. The Housing
Authority currently administers over 1,400 Section 8 units under contract, of which 307 are
located within the City. The Authority also operates 172 units of public housing at 14 locations,
all within the City of San Luis Obispo. It also operates both a First Time Homebuyer's program
and a Mortgage Credit Certificate Program throughout the City and County.
The Housing Authority has adopted a policy whereby public housing assistance waiting
lists would be open until a manageable number of applications were received, at which time the
lists would be closed and no further applications would be accepted. All of those on the list
would then be processed, and if eligible, would be maintained on the list until they could receive
housing assistance. When the lists are exhausted they would be re-opened and the process
repeated. This approach was adopted by the Authority in lieu of a system with a continuous
open waiting list on which some people would never be served because there would always be
somebody ahead of them due to the various mandated preference requirements. The Authority
last closed its list at the end of December 1995, and anticipates it will be about two years before
all of the 1,500 applicants will have been served and the list can be opened again.
As with most Housing Authorities throughout the country, San Luis Obispo's housing
needs far exceed the funds and number of affordable housing units available. The greatest
numerical need is clearly for handicapped and disabled housing, one bedroom units for those who
can live independently and two-bedroom units for those who require live-in aides, followed by
housing for small families, two and three bedroom units. There is a lesser need for elderly and
large family housing.
Project Description: HASLO will use Section 108 funds to acquire two sites. The first site is
located at the corner of Brizzolara and Nipomo Streets (see Attachment A) in Census Tract 111.
The 37,838 square foot site is occupied by five residential structures containing a total of 16
rental units. The structures are in a deteriorating condition, providing unsafe housing for their
occupants. The property has been the subject of several building and zoning code violations in
recent years, due to substandard conditions and lack of corrective maintenance. The acquisition
cost is estimated to be $860,000. The County committed $250,000 of HOME funds to assist with
acquisition.
After acquisition, the existing tenants will be relocated, the existing units demolished, and
the site turned over to the Housing Authority's affiliate, the San Luis Obispo Non-Profit Housing
Corporation, for development. The new development will include from 24 to 30 units to be
occupied by elderly/disabled/handicapped residents, possibly with some two and three bedroom
family units. Tenant rents may be subsidized through the Section 8 program. The Housing
2
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Authority serves as managing agent for the San Luis Obispo Non-Profit Housing Corporation.
As with all developments of the Housing Corporation, long term affordability would be provided.
All tenants for the project would have incomes less than 60% of median County income and most
would have incomes well under 50% of median income.
The location of the second site to be acquired with Section 108 funds has not been
finalized at this time. There are currently three projects the Housing Authority is reviewing,.all.
within the City (see Attachment A). The first site is a 23,650 square foot parcel located at 380-
382 Pismo Street (Census Tract 111). The site is currently occupied with a warehouse structure
and two rental units. If the site is acquired, the Authority will relocate the existing commercial
user and two rental tenants, demolish the existing structures and contract through the San Luis
Obispo Non-Profit Housing Corporation to constrict 12 to 18 affordable rental units.. The
property's estimated acquisition cost is $560,000. The remaining Section 108 funds would be
combined with Housing Authority funds to cover the acquisition costs.
The second location being considered is a 39,000 square foot site located at 1708 and
1750 Beach Street (Census Tract 111). The site is currently occupied with a moving
company/warehouse structure and a vacant retail building. The moving company, who also owns
the Pismo Street site, is consolidating their facilities at another location. The plan is for the
Housing Authority (located across the street from this site) to use the moving company's existing
structure to house their maintenance operations. The remaining vacant retail structure would be
demolished and eight to ten affordable rental units, each containing two and three bedrooms,
would be constructed by the Non-Profit Housing Corporation. The estimated property
acquisition cost is $440,000.
A third potential project site being reviewed by HASLO is the historic three story
Blackstone Hotel located at 840-844 Monterey Street (Census Tract 111). If this site is selected
for acquisition, the Authority would leave the existing 7,274 square feet bottom floor as
commercial, and contract with the Non-Profit Housing Corporation to rehabilitate the vacant
second and third floors (10,876 square feet) into 16 affordable rental units. The estimated
acquisition costs for the Blackstone is $920,000.
Whichever of these three projects is selected by the Housing Authority, the remaining
Section 108 funds would be augmented with existing CDBG/HASLO funds to cover the balance
�—Z7
of the acquisition costs. The construction of the affordable housing units would be funded using a
combination of a Tax Credit Program, low interest mortgages as provided by the HOME Program
and/or the California Community Reinvestment Corporation. The tenants for the selected project
would have the same income level requirements as those for the proposed Brizzolara/Nipomo site
discussed above.
National Objective: The proposed project is being implemented under the CDBG national
objective 570.208 (a) Activities benefiting low and moderate income persons (3) - Housing
activities.
Eligible Activity: The proposed project will be implemented under the following CDBG eligibility
category: 570.201 (a) Acquisition
City of San Luis Obispo
Amount of Section 108 Funds Requested: $650,000
Project Background: The City is proposing to use its portion of the allocation of Section 108
funds for the rehabilitation of a public building owned by the City that is located at 696 Monterey
Street (Census Tract 111). The 4,400 square foot building was originally constructed as a
Carnegie Library in 1905 and was listed on the National Register of Historic Places in 1995.
Since 1954 the San Luis Obispo County Historical Society (a non-profit organization) 'has
occupied the building and operated it as the San Luis Obispo County Historical Museum. The
historical structure is an unreinforced masonry building. A structural engineering survey
completed several years ago found that the building's unreinforced masonry construction poses a
public safety risk in the event of a major earthquake. In addition to the seismic safety
improvements, the building will also require access improvements for disabled persons.
Protect Description: A structural engineering analysis completed in 1994 included a list of seismic
safety corrections needed to comply with the Uniform Code of Building Conservation and extend
4
02 S
the buildings service life. The construction would also include the installation of improvements to
meet ADA requirements, including the waterproofing of the lower floor (which is a half
basement) to allow accessibility to.the elevator during rainy weather. The total project costs,
including the seismic retrofitting improvements, code compliance (i.e. new electrical, plumbing,
gas, etc.) architectural, engineering and inspection, are estimated to be $835,600. The source of
the funding would be the $650,000 in Section 108 funds, with the balance coming from City.
CDBG funds already allocated for the ADA portion of the improvements. Attachment B includes
a proposed budget for the project that was developed by the City Public Works Department.
National Objective: The national objective under which the proposed project is being
implemented is 570.208 (b)(2) - Activities to address slums or blight on a spot basis. With the
combined requested Section 108 and City 1997 CDBG funds, the City and County comply with
the 70% test of funds benefiting low and moderate income. The ADA project improvements also
qualify under 570.208 (a)(2)(ii)(A).
Elisible Activity: The proposed project is being implemented under the following eligible activity
category: 570.201(c) - Public facilities and improvements. Based on the structure being listed
in the National Register of Historic Places, the project would also qualify under the activity of
section 570.202(d) -Historic preservation.
TERM AND REPAYMENT OF LOAN
The term of the repayment of the Section 108 Loan Guarantee funds is six years. The
City will be responsible for the 108 Loan repayment. The repayment will come from the City's
annual CDBG allocation. The repayment schedule included as Attachment C shows the fixed
repayment schedule. The six year repayment period was selected based on the City's ongoing
commitments to its CDBG funded projects. The estimated annual average repayment of
$324,000 is the maximum the City can afford to commit without having a significant impact on its
CDBG programs.
The repayment schedule indicates the City will request a drawdown of funds after the next
proposed bond offerincy by HUD, tentatively scheduled for June of 1997. Based on this, the City
5
will make quarterly interim interest payments until the next estimated offering in June of 1998.
The interim interest is based on 20 basis points over current LIBOR rates.
The City is aware that the fixed interest rate for the Section 108 funds will be established
at the time HUD sells the public offering on the market and just prior to the City execution of the
notes with HUD. The City will establish a separate bank account into which the loan repayments
will be deposited. From this account, the required twice yearly payments will be made to HUD,
with an interest payment in February and a principal and interest payment in August of each year.
ADDITIONAL LOAN SECURITY
While the City is pledging future years CDBG funds for the repayment of the 108 Ivan, it
is aware that HUD will require a formal pledge agreement guaranteeing additional sources of
revenues that will be available for the repayment should the CDBG program be terminated. The
City is proposing to use the structure benefiting from the Section 108 funds as the additional
security for $650,000 of the Section 108 funds. The Housing Authority will use existing assets it
has to provide the additional security for their $1 million of Section 108 funds. These additional
security sources will only be required to meet the annual debt service at such time as the CDBG
program is terminated or the allocation to the City of San Luis Obispo is reduced to a level that
would not meet the annual debt service payments.
Under the CDBG Urban County Program, the County is responsible for all CDBG and
Section 108 funds distributed within the County. The City will sign the Section 108 loan
documents, provide the loan security, and enter into a Cooperation Agreement with the County
setting forth each agency's responsibilities.
ACQUISITION AND RELOCATION
The Housing Authority of the City of San Luis Obispo will use its portion of the Section
108 funds for property acquisition. In addition, its projects will also have other federal funding
sources. The City and Housing Authority will comply with the federal requirements governing
6
/ ,27
displacement, relocation, real property acquisition, and the replacement of low and moderate
income housing as described in Section 570.606.
CERTIFICATIONS
The City Council conducted a public hearing on March 4, 1997, on the Section 108
Application and authorized the submittal of the Application and adopted the resolution included
as Attachment D. All of the required program certifications are included in the City Council
Resolution. The County Board of Supervisors conducted a public hearing at their meeting of
1997, and authorized the submittal of the application.
If you have any questions regarding this Application for Section 108 Loan Guarantee
funds, please contact Jeffrey W. Hook, Associate Planner, City of San Luis Obispo at (805) 781-
7176.
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ATTACHMENT A
PROJECT LOCATION MAP
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990 Palm Street/Post Office Boz 8100•San Luis Obispo,CA 93403.8100
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CITY OF SAN LUIS OBISPO
KEY TO PROJECT SITES MAP
1. Brizzolara Street Apartments - 611 Brizzolara Street
2. Historical Museum Improvements - 696 Monterey Street
3. Blackstone Apartments - 840-844 Monterey Street
4. Pismo Street Apartments - 380-382 Pismo Street
5. Beach Street Apartments - 1708-1750.Beach Street
ATTACHMENT B
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PROJECTED BUDGET FOR HISTORICAL MUSEUM STRUCTURE
...........................
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city of sAn luis oBispo
955 Morro Street • San Luis Obispo, CA 93401
January 31, 1997 fr t 1 V h 4
To: Jeff Hook,Associate Planner 18 1 :i 1997
From: Wayne Peterson,City Engineer 'OF SAN LUIS OBISpo
Bridget Fraser,Engineering Assistant c; _
Subject: Historical Society Museum Improvements -Current Cost Estimate and Project Scope
COST ESTIMATE
Design(10 Percent of Construction) $70,600
Construction:
1995 Construction Cost Estimate(without Contingencies) $480,000
Escalation(5 Percent of 1995 Estimate) . 24,000
Contingencies(40 Percent at Conceptual Phase) 201.600 705,600
Construction Management:.
Resident Inspection(5 Percent of Construction) $35,300
Materials Testing and Inspection 10,000
Architectural and Engineering Consultation(20 Percent of Design) 14.100 59.400
Total $835,600
PROJECT SCOPE
Seismic Safety and Other Building Improvements: Accessibility Improvements:
Strengthen unreinforced masonry walls with reinforced Build ramps and walkways from the parking lot to the
structural plaster or pneumatically placed concrete. northwest comer of the building
Install positive interconnections between unreinforced Install an exterior door to the elevator lobby on the lower
masonry walls and roof and floor joists. floor.
Strengthen the roof diaphragm. Provide unisex accessible bathroom
Pin brick and stone veneers to the underlying masonry
walls. Waterproofing Improvements:
Anchor capstones to the masonry walls. Waterproof the subgrade exterior surface of the lower
Reconstruct brick chimneys with reinforced cores. level walls.
Repoint deteriorated masonry joints. Install a french drain below grade around the building
Clean and seal exterior brick veneers. perimeter.
Repair sheetmetal downspouts Replace clogged and collapsed drainlines to street.
Repair roof leaks
Other Possible Code Requirements:
Install fire sprinklers
Modify electrical system to meet current codes.
/ The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities.
V� Telecommunications Device for the Deaf(805) 787.7410. / Z
ATTACHMENT C
PROJECTED SECTION 108 REPAYMENT SCHEDULE
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ATTACHMENT D
CITY COUNCIL RESOLUTION
RESOLUTION NO. (1997 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING SUBMISSION OF A SECTION 108 GUARANTEED FEDERAL
LOAN APPLICATION TO THE UNITED STATES DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT
WHEREAS, the City of San Luis Obispo has determined that a high priority exists for
development of new affordable housing and for the rehabilitation of the structure housing the
San Luis Obispo County Historical Museum; and
WHEREAS, the proposed projects are included in the County's adopted One-Year
Action Plan of the Consolidated Plan; and
WHEREAS, the Section 108 Guaranteed Loan program, implemented by the United
States Department of Housing and Urban Development (HUD), is designed to provide funds to
assist with these types of projects; and
WHEREAS, under the Section 108 Guaranteed Loan program, the City can borrow up
to five times its annual Community Development Block Grant (CDBG) allocation and can take
up to twenty years to repay the principal and interest; and
WHEREAS, the City, through the County of San Luis Obispo, is responsible for
submitting a Section 108 Loan application to HUD and assumes all responsibility connected
with administration and the repayment of the Section 108 loan; and
WHEREAS, the City is requesting a total of$1,650,000 in Section 108 Loan funds,
with $1,000,000 going to the Housing Authority of the City of San Luis Obispo for the
development of affordable housing, and $650,000 going to the City for the rehabilitation of the
City-owned building housing the County Historical Museum;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Luis Obispo resolves as follows:
SECTION 1. As part of its implementation of its Action Plan, the City Council
approves the submittal of a Section 108 Guaranteed Loan application to HUD to assist with the
development of affordable housing and rehabilitation of the historical museum structure.
SECTION 2. As prerequisites for submission of the application to HUD, the City
certifies that it has:
Resolution No. (1997 Series)
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(a) Furnished citizens with information required by Section 570.704(a)(2)(I) of Title 1
of the Housing and Community Development Act of 1974, as amended;
(b) Held at least one public hearing, on March 4, 1997, to obtain the views of citizens
on community development and housing needs; and
(c) Prepared its application in accordance with Section 570.704(a)(2) of Title 1 of the
Housing and Community Development Act of 1974, as amended.
SECTION 3. The City has and will continue to follow a detailed citizen participation
plan which meets the requirements described in Section 570.704.(a)(2) of Title 1 of the
Housing and Community Development Act of 1974, as amended.
SECTION 4. The City has and will continue to affirmatively further fair housing, and
the guaranteed loan funds will be administered in compliance with:
(a) Title VI of the Civil Rights Act of 1964 (Public Law 88-352, 42 U.S.C. 20004 et
seq.); and
(b) The Fair Housing Act (42 U.S.C. 3601-20).
SECTION 5. The City will expend in the aggregate, at least 71 percent of all CDBG
funds, as defined in Section 570.303(e) of Title 1 of the Housing and Community
Development of 1974, as amended, during the one, two, or three consecutive years specified
by the City for its CDBG program on activities which benefit low/moderate income persons,
as described in criteria in Section 570.208(a) of the Act.
SECTION 6. The City has and will continue to comply with the requirements
governing displacement, relocation, real property acquisition, and the replacement of low and
moderate income housing as described in Section 570.606 of the Act.
SECTION 7. The City has and will continue to comply with other provisions of the
Act and with other applicable laws.
SECTION 8. The City has and will continue to certify regarding debarment,
suspension, and other responsibility as follows;
(a) The prospective recipients of the Section 108 Guaranteed Loan funds and all of
their contractors will certify, to the best of their knowledge and belief, that they:
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1) Are not presently debarred, suspended, proposed for debarment, declared
ineligible, or voluntarily excluded from covered transactions by and Federal
department or agency;
2) Have not, within a three-year period preceding approval of their application,
been convicted of or had a civil judgment rendered against them for
commission of fraud or a criminal offense in connection with obtaining,
attempting to obtain, or performing a public (Federal, State, or local)
transaction or contract under a public transaction; violation of Federal or
State antitrust statutes or commission of embezzlement, theft, forgery,
bribery, falsification or destruction of records, making false statements, or
receiving stolen property;
3) Are not presently indicted for or otherwise criminally or civilly charged by a
government entity (Federal, State or local) with commission of any of the
offenses enumerated in paragraph (a)2 of this certification; and
4) Have not, within a three-year period preceding approval of their application,
had one or more public transactions (Federal, State or local) terminated for
cause or default.
SECTION 9. The City hereby assures and certifies with respect to its application for a
guaranteed loan pursuant to Section 108 of the Housing and Community Development Act of
1974, as amended, that it has made efforts to obtain financing for the activities described
herein without the use of such guarantee, that it will maintain documentation of such efforts
for the term of the loan guarantee, and that it cannot complete such financing consistent with
the timely execution of the program plans without such guarantee.
SECTION 10. The City has and will continue to hereby certify, to the best of its
knowledge and belief, the following;
(a) No Federal appropriated funds have been paid or will be paid, by or on behalf of it,
to any person for influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with the awarding of any Federal
contract, the making of an Federal grant, the making of any Federal loan, the
entering into of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract, grant, loan or
cooperative agreement;
(b) If any funds other than Federal appropriated funds have been paid or will be paid to
any person for influencing or attempting to influence an officer or employee of any
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Resolution No. (1997 Series)
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agency, a Member of Congress, an officer or employee of Congress, or any
employee of grant, loan or cooperative agreement, it will complete and submit
Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with
its instructions; and
(c) It will require that the language of paragraph (a) of this certification be included in
the award documents for all subawards at all tiers (including subcontracts,
subgrants, and contracts under grants, loans and cooperative agreements) and that
all subrecipients shall certify and disclose accordingly.
SECTION 11. The City shall continue to maintain a drug-free workplace by:
(a) Publishing a statement notifying employees that the unlawful manufacture,
dispensing, possession, or use of a controlled substance is prohibited in the
grantee's workplace and specifying the actions that will be taken against employees
of such prohibition;
(b) Establishing an on-going, drug-free awareness program to inform employees about
the following:
1) The dangers of drug abuse in the workplace;
2) The grantee's policy of maintaining a drug-free workplace;
3) Any available drug counseling, rehabilitation, and employee assistance
programs; and
4) The penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace.
(c) Making it a requirement that each employee engaged in grant activity be given a
copy of the statement required by paragraph (a).
(d) Notifying the employee in the statement required by paragraph (a) that, as a
condition of employment under the grant, the employee will:
1) Abide by the terms of the statement; and
2) Notify the employer in writing of his or her conviction for a violation of a
criminal drug statute occurring in the workplace, no later than five calendar
days after such conviction.
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Resolution No. (1997 Series)
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(e) Notifying the agency in writing, within ten calendar days after receiving such notice
under subparagraph (d)2, from an employee or otherwise receiving actual notice of
such conviction. Employers of convicted employees must provide notice, including
position and title, to every grant officer or other designee on whose grant activity
the convicted employee was working, unless the Federal agency has designated a
central point for the receipt of such notices. Notice shall include the identification
numbers(s) of each affected grant.
(f) Taking one of the following actions, within 30 calendar days of receiving notice
under paragraph (d)2, with respect to any employee who is so convicted:
1) Taking appropriate personnel action against such employee, up to and
including termination, consistent with the requirements of the Rehabilitation
Act of 1973, as amended, and any other applicable Federal and State laws;
and
2) In appropriate circumstances, require an employee to participate
satisfactorily in a drug abuse assistance or rehabilitation program approved
for such purpose by a Federal, State or local health, law enforcement, or
other appropriate agency.
SECTION 12. The City Administrative Officer is hereby authorized to submit the
Section 108 Federal Guaranteed Loan application and amendments thereto and all
understandings and assurances contained therein, and to execute the application, amendments
thereto, and other agreements necessary to implement the Section 108 loan and to act in
connection with the application to provide such additional information as may be required.
SECTION 13. This Resolution shall be effective immediately upon its adoption.
ADOPTED THIS 4TH DAY OF MARCH, 1997, on the following roll call vote:
AYES:
NOES:
ABSENT:
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Page 6
Mayor Allen K. Settle
ATTEST:
City Clerk
APPROVED:
WO
Cit Att ey
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San Luis Obispo Urban County
1997 CDBG NEEDS HEARING MINUTES
October 24, 1996 7 pm SLO Veteran's Building
County Staff: John Busselle, Tony Navarro
City Staff: Jeff Hook, Associate Planner
John Busselle introduced County and City staff and explained the purpose of the Community
Development Block Grant(CDBG) Community Needs hearing. He explained the make-up of the San
Luis Obispo Urban County, the CDBG funding cycle, and the types of projects which have been
funded. He noted that this hearing was the first of several to be held throughout the County and
announced dates and location of future meetings. Tony Navarro translated the presentation into
Spanish. Mr. Busselle also explained the HOME program, and the amount of funding provided under
the CDBG and HOME grant programs. He emphasized that while the needs hearing is important,
community members should also attend Board of Supervisors' and city council meetings to inform
decision makers of their needs and concerns.
During and following Mr. Busselle's introduction, audience member's offered the following comments
and suggestions:
• The County needed to publicize needs hearings better,hold the hearings at times that interested
persons can attend(not during the workday or on days that conflicted with other community
events), and explain to low-income groups and individuals how to use the CDBG process to
organize and create projects.
• The County should develop a year-around education outreach program to train low-income
community members about the CDBG process and how to secure affordable housing,
particularly ownership housing.
• Agricultural work in the County is increasing as Cattle ranching is being replaced by truck crop
farming and vineyards. The influx of agricultural laborers has increased the need for affordable
housing.
• Enrollment growth at Cal Poly is reducing the supply of rental housing and causing apartment
rents to increase, adversely affecting low income residents of the City.
• The County's recent CDBG Performance Evaluation did not clearly explain how CDBG funds
were being used effectively to help low income persons. The County needs to provide
sufficient staff resources to clearly explain CDBG opportunities and performance in future
performance evaluations, not just statistics. Several people felt that funds for certain CDBG
activities, such as those for economic development or infrastructure, were not appropriate
given other community needs and were not being spent in a timely fashion. They felt these
funds should be reallocated for low-income housing.
• It was noted that a broad spectrum of the community needs affordable housing, including
handicapped persons, fixed-income elderly, battered women and children, and recovering
substance abusers. The SLO Supportive Housing Consortium wants the majority of CDBG
CDBG Needs Hearing
Page 2
funding to go to affordable housing for low income persons, since they see this as the number
one community need in the County.
• City and County should use needs assessments which have already been done, such as the
1996 Needs Assessment document prepared by the Economic Opportunity Commission of San
Luis Obispo County.
• The County should prepare a simple document, translated into Spanish, to be distributed to low
income persons, explaining the CDBG grant process, its purposes, rules, benefits, and
procedures.
• Greater outreach efforts are needed to involve those low income persons who need CDBG
funding the most. The County should make greater use of non-profits who already have
effective outreach programs, such as the Economic Opportunity Commission. -
• The City and County should reallocate unused funds from the 1994- 1996 CDBG programs to
affordable housing programs which are needed right now.
• City councils should hold a needs hearing early in the grant cycle, even though it is not required
by the County Participation Plan.
• The City and County should use land banking (land secured as a condition of development
project approvals) for the development of affordable housing projects.
• Economic development is an important part of CDBG funding, since jobs are needed for low-
income persons to enable them to secure decent housing; however the Economic Vitality
Corporation and other economic development programs need to be managed responsibly to
ensure they achieved their desired ends. More"living wage"jobs need to be leveraged using
CDBG funds, not minimum wage, subsistence jobs.
• The City and County should publicize a telephone"hot line" which would allow community
members to speak directly with decision makers to explain problems and needs.
• CDBG materials should be printed in Spanish and distributed in advance of meetings.
In response to questions regarding the City's housing programs,Jeff Hook explained that in 1996,the
City Council had committed a total of$1 million to affordable housing programs over the next five
years. He noted that total CDBG funding available countywide in 1996 was about$2.8 million--a
relatively small amount in comparison to the many different community needs. He explained that the
CDBG program grew out of the need to help local governments with a broad range of "community
development" activities, not just housing. He encouraged audience members to attend council
meetings and identify their needs and concerns, and said that he was available to help groups and
individuals interested in applying for CDBG grant funds.
The meeting adjourned at 9:30 pm.
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