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HomeMy WebLinkAbout04/07/1998, 1 - A. FINAL REVIEW OF THE 1998 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) AND DRAFT 1998 CONSOLIDATED PLAN ONE-YEAR ACTION PLAN; AND B. CONSIDERATION OF AMENDMENTS TO THE 1994 AND 1996 CDBG PROGRAM YEARS. C. CONSIDERATION OF RECOMMENDED council j acEnba Repout CITY OF SAN LUIS OBISPO n O FROM: Arnold Jonas, Community DOentwDirector(�1 PREPARED BY: Jeff Hook, Associate Plannf SUBJECTS: A. Final Review of the 1998 Community Development Block Grant Program (CDBG) and Draft 1998 Consolidated Plan One-Year Action Plan; and B. Consideration of amendments to the 1994 and 1996 CDBG Program years. C. Consideration of recommended HOME and Special Urban Projects and funding levels for the San Luis Obispo Urban County. CAO RECOMMENDATION: By motion, 1) approve the 1998 CDBG Program activities and funding as shown in Table 1, and the Draft 1998 Consolidated Plan One-Year Action Plan; 2) approve the amendments to the 1994 and 1996 CDBG Program Years, Table 2; 3) endorse the recommended HOME and Special Urban Projects funding, as shown in Tables 3 and 4; and 4) forward the Council's actions and funding recommendations to the Board of Supervisors. REPORT-IN-BRIEF The City received 16 CDBG funding requests for the 1998 Program Year, totaling about $2.2 million. The total requested exceeds this year's CDBG entitlement of$907,776; consequently, the City will not be able to fund all of the requests during this program year. However, an additional $480,698 in unused 1994 and 1996 CDBG funds is available to be reallocated to 1998 CDBG activities. The County has issued a draft Summary One-Year Action Plan of the Consolidated Plan. That plan, Exhibit C, describes activities proposed for funding by the entire Urban County, which includes the cities of Atascadero, Grover Beach, Paso Robles, and San Luis Obispo; and unincorporated San Luis Obispo County. The required 30-day public review period closed on April 4', 1998, after which time, under federal rules, the City Council may take final action on the proposed Action Plan and CDBG activities. DISCUSSION Background Based on preliminary information from HUD, the Urban County expects to receive about $2.55 million in CDBG funds, $1 million in Home Investment Partnership Program (HOME) funds, and $100,000 in Emergency Shelter Grant (ESG) funds, although the final entitlement amounts will not be known until later this year. The City of San Luis Obispo is expected to � — 1 Council Agenda Report- 1998 Community Development Block Grant Program Page 2 receive $907,776 - about $27,000 less than last year due to increased federal set asides and an increasing number of cities receiving CDBG funds. $480,698 in unused 1994 and 1997 CDBG funds is also available for reallocation, as further explained in this report. DISCUSSION 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 community needs and demographics, and is unchanged from previous years. The "One-Year Action Plan" describes the planned CDBG and HOME activities for 1998, and this is the part of the plan that requires Council review and recommendation to the Board of Supervisors. A .wry of the Plan is attached. Along with the cities' 1998 CDBG funding recommendations, the CP will be scheduled for Board of Supervisors consideration on April 28th. 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. 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 1998. At previous meetings, Council has also identified several specific activities as meriting block grant funding, either as new or continuing City projects: ■ Operating a Homeless Day Services Center on City-owned property on Prado Road; ■ Continuing joint City/County funding of the Homeless Shelter on Orcutt Road; ■ Providing street curb ramps to remove barriers to disabled persons; ■ Providing funding to acquire land for affordable housing; ■ Continuing to fund recreation, childcare and other services for at-risk youth; ■ Funding affordable housing and for handicapped access and related improvements at the County Historical Museum through a Section 108 federally guaranteed loan. ■ Correcting drainage problems in flooding-prone, low-income areas of the City. HUD Objectives and rules. The Urban County's CDBG activities must, by law, meet HUD objectives and rules. HUD has three broad national objectives: � 'a Council Agenda Report - 1998 Community Development Block Grant Program Page 3 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 1998 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 City/County Library. About 35 persons, including citizens and representatives of housing agencies, housing lenders, 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 the elderly; 2. A day work facility in San Luis Obispo City for low-income, handicapped persons. 3. More "living-wage"jobs; 4. Better communication with Hispanic community and low-income groups; and 5. More "outreach" efforts to help persons understand homebuying and how to access CDBG funds. Many speakers voiced the concern that the City of San Luis Obispo welcomes job growth but does not accommodate the housing needs of the area's very-low, low- and moderate-income working persons. Several audience members felt that in particular, low-income Hispanic persons employed in the City are adversely affected due to high housing costs, requiring them to commute from outlying areas for employment. Project Evaluations and Recommendations. Table 1 lists the CDBG requests and staff funding recommendations submitted for the 1998 Program Year. 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. Funding recommendations in Table 1 are based on the Committee's discussions and Council's previous actions regarding CDBG funding priorities. 1-3 Council Agenda Report- 1998 Community Development Block Grant Program Page 4 TABLE 1: 1998 CDBG Program Applications No. Applicant Activity RequestedRequestedl Recommended 1 OPTIONS Purchase low-income apts. 200,000 0 4 EOC Home Repair Program 78,320 50,000 9 SLO Housing Consortium Mufti-family housing acquisition 10,000 0 11 ASN Affordable housing acquisition 250,000 103 474 14 SLO non-profit Acquire affordable housing site 350,000 300,000 15 SLO non-profit Repair transitional housing 20,000, 20,000 Subtotal -Housing 1 908,3201 473,474 - Public Services ' at . i; - - - .. _ _ . . .. . 2 EOC Mental Health Services 10,000 0 3 EOC Homeless Shelter Operations 120,000 120,000 8 CitV of SLO At-risk Youth Program 86,300 0 12 ICH Homeless Day Center Operations 40,000 40,000 16 LifeSte s Homeless Runaway Youth Services 10,000 0 Subtotal-Public Services 18%of total 1998 CDBG funding) 266,3001 160,000 Publ'id-FacTi iEies 5 City of SLO Street Drainage Im rovemements 85,000 85,000 6 City of SLO Historic Museum Improvements 200,000 200,000 7 City of SLO Handicapped Ramps, Streets 150,000 150,00 13 FOCA Historic Adobe Restoration 120,000 120,000 Subtotal- Public Facilities 555,000 555,000 ECON& ucDeyelopment _ 10 EVC Revolving Loan Fund 1 200,000 . 100,000 " .pbIfft.gmaIpabity Bull&n'.: . ..: . . 9 SLO Housing Consortium I Mufti-Family Housing tudy 9,0001 9,000 General Adminlstradon 10%of Tbta11998 CDBG Hindi -- 171City of SLO I Program administration 1 91,0001 91,000 TOTAL 1 $2,029,6201 $1,388,474 CDBG Funds Available 1998 CDBG allocation 907,776 Reallocated funding: Blackstone Hotel Rehabilitation 192,501 High Street Acquisition 102,429 Handicapped Ramps, streets $ 185,768 TOTAL CDBG Funds Available 1 $1,3889474 The recommended activities and funding levels reflect an emphasis on supporting existing CDBG programs, such as homeless services, handicapped accessibility improvements, affordable housing, Historic Museum improvements and the Revolving Loan Fund. 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 Council Agenda Report - 1998 Community Development Block Grant Program Page 5 Homeless Shelter and Prado Road Homeless Day Center and removal of architectural barriers to disabled persons; and 3) to those new programs which appear most consistent with Council goals and priorities such as the adobe restoration project which melds historic preservation and neighborhood improvement objectives. As in 1997, the proposed CDBG Program includes a recommendation for funding storm drain improvements in low/moderate income neighborhoods. This is an eligible activity, and given the City's significant drainage needs and limited CIP budget for this purpose, it appears to be an appropriate use of grant funds at this time. Exhibit A describes activities recommended for funding, and Exhibit B describes the activities not recommended for funding. Section 108 Loan. 1998, the City expects to draw down its approved Section 108 federally guaranteed loan proceeds of $1.65 million. Loan proceeds will be used to fund the Housing Authority's purchase and development of affordable housing ($1 million) and the rehabilitation of the Historic Museum. An additional $200,000 is requested in 1998 CDBG funding to complete the Museum rehabilitation. $73,000 was allocated in the 1997 CDBG program for repayment of first year principal and interest, and those funds are still available. Hence, no additional CDBG funds need be allocated for loan repayment in 1998, freeing up additional block grant funds for other activities this year. However, for the next six years, annual Section 108 principal and interest payments are estimated at $329,000. Thus, Section 108 loan payments will constitute the City's main CDBG allocation to housing through the year 2005. 1998 Public Services Spending. HUD limits the Urban County's total spending on public services to 15 percent. For the fifth year, the City of San Luis Obispo is exceeding the 15 percent cap. This is possible because 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 18 percent of its 1998 CDBG entitlement for public services, or $160,000. However, to fully fund the Homeless Shelter, Homeless Service Center Operations and At-Risk Youth Services with CDBG funds as in previous years, the City would need to allocate $246,300, or 27 percent of its total annual grant, to public services. Given HUD rules, this is not possible. Since 1994, requests for public services funding have increased annually while the amount available for public services has remained essentially constant. To resolve this on-going shortfall, it is recommended that only the two homeless services programs be funded using CDBG funds, and that the At-Risk Youth Program be funded through the General Fund on an on-going basis. 1994 and 1996 Program Amendments. HUD rules allow jurisdictions to amend previous CDBG program allocations. Staff recommends amendments to the 1994 and 1996 Program Years, to be approved at the same time the Council acts on the 1998 CDBG Program. These amendments are shown in Table 2. The Blackstone Hotel Rehabilitation and High Street Apartments, both affordable housing projects, did not proceed mainly due to difficulties in acquiring the properties. Handicapped ramps received more funds than needed in 1996, so a portion of that funding is recommended for reallocation. Approximately $92,000 would Council Agenda Report - 1998 Community Development Block Grant Program Page 6 remain for ramp installation in the `94296 program years. HUD encourages grantees to use funds in a timely manner, so staff recommends that funding for these projects be reallocated to other, more current housing projects: acquisition of affordable housing by the AIDS Support Network ($103,474), and acquisition of affordable housing by the SLO Non-Profit Housing Corporation ($191,456). TABLE 2: 1994 and 1996 CDBG Program Year Amendments ($) Activity Applicant Current Proposed Reallocated Allocation Allocation Funding 1994 PROGRAM YEAR Blackstone Hotel SLO Housing 192,501 0 192,501 Rehabilitation Authority High Street City of SIA 102,429 0 102,429 Apartments Reallocated Funding 294,930 1996 PROGRAM YEAR Handicapped City of SLO 226,169 40,401 185,768 Access Ramps Program Total Reallocated Funding Carried Forward to 1998 Program Year 480,698 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. $140,827 is available in the 1998 Program Year. Staff proposes that Special Urban Projects ,funds be allocated in the amounts of$130,000 to fund the SLO Homeless Shelter and $10,827 to help fund the Prado Road Homeless Day Center, as shown in Table 3. Both of these facilities serve critical low-income needs of residents throughout San Luis Obispo County. Council Agenda Report - 1998 Community Development Block Grant Program Page 7 TABLE 3: Recommended Special Urban Projects For The 1998 CDBG Program Recommended Project Name Applicant Fun �$� SLO Homeless Shelter Operation Economic Opportunity 130,000 Commission Interfaith Coalition for Prado Road Homeless Day Center Homeless 10,827 TOTAL 7140,87277 ] 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 $1 million in 1998. The City's Housing Authority requested $300,000 in HOME funds to operate the First time Homebuyer's Assistance Program and Tenant-based Rental Assistance Program. The Urban County's Home funding recommendations in 1998 are shown in Table 4. TABLE 4: Recommended HOME Project For The 1998 Program Year Project Name Applicant Recommended Ocean Low-income Housing Development Peoples' Self-Help Housing 200,000 Corporation asoo��Low-income ousmg Peoples' Self-Help Housing 150,000 Corporation Oceano Ownership Housing 350,000 Affordable Homes, Inc. First-time Homebuyers Program(Countywide) SLO Housing Authority 200,000 Tenant-based Rental Assistance SLO Housing Authority 100,000 Projects Not Recommended for CDBG Funding Projects not recommended for CDBG funding are described in Exhibit B. All funding requests are eligible CDBG activities; however, the proposed funding emphasizes maintenance of existing programs. Although E.O.C.'s funding request for Mental Health Services would meet 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. In addition, staff continues to discourage using block grants for numerous, small grants, given that CDBG administrative costs can be used more effectively with fewer, larger projects. / ,f7 Council Agenda Report - 1998 Community Development Block Grant Program Page 8 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. TABLE 5: Recommended Funding Allocation by HUD Eligibility Category and Percent of Total CDBG Funds Available (Includes Reallocated 1994 and 1996 CDBG Funds Activity Category 1998 Allocation* Peiceat HUD Limit Public Facilities 555,000 40% N/A Housing 473,474 34% N/A Public Services 160,000 12% 15% Economic Development 100,000 7% N/A Program 100,000 7% 20% Administration/Plannin Total $1,388,474 100% *Includes$480,698 in reallocated funds from 1994 and 1996 program years. Table 5 shows the recommended CDBG funding allocation by HUD category, including the $480,698 reallocated from previously-funded CDBG activities. The proposed CDBG allocations comply with HUD rules. If reallocated funding is excluded from consideration, the City slightly exceeds the 15 percent HUD limit for public services; however the Urban County as a whole will meet this requirement. ALTERNATIVE 1. Revise candidate CDBG and HOME projects and funding levels. Council members may change the list of City projects to receive CDBG funding, and/or change the funding levels from those recommended. Attachments: -Exhibit A: Recommended CDBG Projects -Exhibit B: CDBG Projects Not Recommended -Exhibit C: Draft 1998 Urban County One-Year Action Plan Summary -SLO Supportive Housing Consortium Funding Recommendations NOTE: 1998 CDBG Project Applications are available in Council Office. Ih/CDBG98.rpt Council Agenda Report- 1998 Community Development Block Grant Program Page 9 EXHIBIT A City of San Luis Obispo CDBG FUNDING REQUESTS RECOMMENDED FOR FUNDING, Program Year 1998 Mental Health Services The Economic Opportunity Commission requests $10,000 toward funding a part-time mental health technician to assist low-income families using the High Street Head Start facilities within the City of San Luis Obispo. The technician would train head start staff to identify and assist in family crises, and would provide counseling for children and parents experiencing family trauma. SLO Housing Authority families receive first priority for services under this program. Staff supports the program as an appropriate public service during a difficult time for many low-income families as welfare-to-work programs take effect and families are subject to increased economic stresses due to welfare reform. 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 $130,000 out of the "Special Urban Projects Fund" as the County's share of shelter operation and program costs. Home Repair Program The Economic Opportunity Commission requests $78,320 to help low- and very-low income seniors and disabled persons repair or upgrade their homes. This has been a successful Countywide program, with funding also requested from the other jurisdictions in the Urban County. Staff supports allocating $50,000 to this program since it would implement a specific Housing Element program for low-income residents of the City of San Luis Obispo. Repairs would involve weatherizing to conserve energy, installing safety improvements, removing architectural barriers, repairing leaky plumbing, and general repairs in rural and urban homes. The program will cover up to $2,500 in repairs or improvements for each low-income household and will be administered by City staff specifically for eligible dwellings in the City of San Luis Obispo. Storm Drain Improvements The City's Public Works Department proposes using $85,000 to install new storm drains or to replace undersized, inadequate storm drains in public streets at three locations: California at /4 Council Agenda Report - 1998 Community Development Block Grant Program Page to Higuera Street; Branch at King Street; and Broad at High Street. All three intersections are subject to regular flooding due to inadequate drainage facilities and are located in Census tracts where low and moderate income households account for at least 51 percent of the population. The project is eligible as installation of new public facilities and is needed to improve public safety and prevent damage to homes and property due to flooding. Historical Museum Seismic and Handicapped Access Improvements The City-owned Historical Museum currently does not meet State or Federal rules for handicapped accessibility and is an umeinforced masonry building. 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 has previously allocated $842,573 CDBG funds for this project. Additional funding is requested due to more precise cost estimates for corrective work needed which have been provided by the project's design consultants. Handicapped Access Ramps The City's Public Works Department proposes using $150,000 to install about 50 curb ramps at 25 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. Multi-Family Affordable Housing Study The San Luis Obispo Supportive Housing Consortium requests $19,000 to identify potential properties for multi-family affordable housing to meet special housing needs in San Luis Obispo. In the planning phase ($9,000), the Consortium would develop site selection criteria and contact property owners and realtors to identify multi-family housing available for affordable transitional housing for special needs clients, including persons with AIDS and their families; women recovering from drug or alcohol dependencies; developmentally disabled adults, and psychiatrically disabled adults. Staff supports the study because it would help achieve Housing Element policies which encourage special needs housing. Included in the request is $10,000 to gain control of property identified in the study, through a purchase option agreement. Staff recommends that initially, the City fund the planning study to determine selection criteria and whether suitable properties are available. Revolving Loan Fund for Economic Development The Economic Vitality Corporation of San Luis Obispo County proposes using $200,000 in CDBG funds to add to a revolving loan fund (RLF) 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 /—/40 Council Agenda Report- 1998 Community Development Block Grant Program Page i i 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. Last year, the City allocated $150,000 to the fund. As yet, none of those funds have been loaned, although several loan applications are pending and loans are anticipated prior to the end of the fiscal year. This timeframe can be partially attributed to first year program start-up requirements, including forming a loan committee and marketing the program. Since this is the only financing incentive in the City's economic development "tool-kit", it is recommended that $100,000 be allocated this year to the RLF. If the program does not meet expectations in the coming program year, the City can reallocate RLF funds or reconsider future funding. ASN Low-income Family Housing Aids Support Network requests $250,000 to help purchase rental housing (2 or 3 bedroom apartments) for low-income families who have one or more members suffering from AIDS or HIV in San Luis Obispo. A previous grant allowed ASN to purchase a 9-unit apartment court to serve single low-income persons with HIV disease; however an increasing number of ASN clients are families. Staff recommends allocating $103,474 to this activity. Homeless Services Center The City of San Luis Obispo requests $40,000 to cover operation costs for the Homeless Services Center which opened in 1997. The center provides various services to homeless persons and those vulnerable to becoming homeless, including hot meals, showers, laundry facilities, counseling and other services. Adobe Repair and Restoration The City has entered into an agreement with a non-profit group, the Friends of Las Casas de Adobe (FOCA), to preserve, rehabilitate and manage three city-owned historic adobes for the public's benefit. FOCA requests $120,000 to prepare Phase II and Phase III structural analyses and to working drawings and specifications leading to the restoration and adaptive reuse of the adobes. The adobes have been damaged by weathering, age, neglect and in some cases, vandalism. Restoration of the adobes will benefit the community by preserving three of the City's oldest heritage buildings, by correcting code problems and improving the appearance of neighborhoods, and by providing additional public facilities which may accommodate, neighborhood meetings, historic displays and educational programs, weddings and other special events. Acquisition of Affordable Housing Site The San Luis Obispo Non-Profit Housing Corporation, an affiliate of the Housing Authority of the City of San Luis Obispo proposes using $350,000 in CDBG funds to construct low-income Council Agenda Report - 1998 Community Development Block Grant Program Page 12 family rental housing on a site adjacent to the railroad, between Pismo and Buchon Streets (former City Water Yard property). The property has already been purchased for this purpose. The Housing Authority would own and manage the property, and its development would involve the use of tax credits and Section 8 programs. Staff recommends allocating $300,000 to the project, with construction anticipated in 1999. Repairs to Transitional Housing The San Luis Obispo Non-Profit Housing Corporation, an affiliate of the City's Housing Authority, requests $20,000 to cover costs of non-routine maintenance repairs to transitional housing in San Luis Obispo, occupied by mentally disabled adults. Specifically, funds would enable the Corporation to update an outdated electrical system, replace kitchen cabinets, and replace vinyl flooring and carpeting. Staff recommends allocating $20,000 to the project. Program Administration The City of San Luis Obispo proposes to use $91,000 (10 percent of its annual 1998 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; however it is the City's goal to hold administrative costs attributable to CDBG programs at 10 percent or less of the City's annual entitlement. Council Agenda Report - 1998 Community Development Block Grant Program Page 13 EXHIBIT B City of San Luis Obispo CDBG FUNDING REQUESTS NOT RECOMN ENDED FOR FUNDING, Program Year 1997 Housing for Developmentally Disabled Persons OPTIONS, a non-profit housing provider works with developmentally disabled clients to provide housing and related services. Their clients are low-income, many of whom desire to live in San Luis Obispo City, close to support services not available in other parts of the County. OPTIONS has requested $200,000 to match conventional funding on a 1:1 basis, to purchase a 4-unit apartment in the City of San Luis Obispo to allow semi-independent living for disabled residents. While the project is an eligible CDBG activity and appears to meet a community need, staff feels that the need for affordable housing for low-income families and seniors is greater and recommends that the CDBG housing funds be focused in these areas. At-Risk Youth Services Program The City of San Luis Obispo Recreation Department proposed using $86,300 in CDBG funds, 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. Staff strongly recommends continued funding for this activity; however, due to the HUD cap on public service funding, staff recommends that the City fund this program through the General Fund. Runaway Homeless Youth Shelter Life Steps Foundation, Inc. requests $10,000 to help cover salary costs for a counseling intern to work with homeless and runaway youth in the City of San Luis Obispo. The program provides life skills, crisis intervention, and educational assistance to at-risk youth. It receives some funding from State sources; however City CDBG funding would allow hiring of an intern who could work directly with schools, dealing particularly with after-school needs of the at- risk youth. Although staff views this as an important program, on-going public services funding for homeless persons limits the City's ability to fund this program at this time. 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J P, 0.• e Gea e0,` O O w e C] s ' U F. ID rn Yi 0 C y 7 Z - �Wid = o Q a -2o 00 m E N O 0.' W �mEw ani aw � N _ o F x o .� ? ; c; .1 m S O 00 -3 a m y.° Z F, a N m CO JM C � U Ttie H 0 N y — � r a� G .'J' O eF• �j m . Ain F w Q 5 a N N N N N O O S00/SOO bd d96:£0 86/ZO/EO 4m £LTLTBL'6 0-4 9VOTTSLS08 M0=3 ,'he..San Luis Obispo Supportive Housing Consortium P.O. Box 12158, San Luis Obispo, Ca 93406 Chair: Denise Rea (805) 541-5144 Members: Achievement House, Affordable Homes, Inc., AIDS Support Network, Alliance for the Mentally III, Casa Solana, County Mental Health Dept., County Homeless Services Coordinator, Department of Social Services, Economic Opportunity Commission, Housing Authority of the City of San Luis Obispo, Life Steps Foundation, Inc., Options, People's Self Help Housing, Inc., San Luis Obispo Non-Profit Housing, Inc., SLO Transitions, Inc., Women's Shelter of San Luis Obispo, Inc. February 10, 1998 Jeff Hook Planning and Development Department City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Dear Mr. Hook: The San Luis Obispo Supportive Housing Consortium has reviewed the 1998 CDBG and HOME applications submitted by Consortium member agencies. While we are still creating and formalizing our criteria for endorsement of requested funding by Consortium members,the Consortium's mission remains consistent in its goal to increase the amount of housing for low-income county residents with special needs. Based on this priority,the Consortium currently supports the following projects for 1998 funding- proposed undingProposed projects of the Consortium HOME funds: $250,000(via HASLO) for county-wide Tenant-based rental assistance to serve Consortium member clients. CDBG funds: $10,000(via Women's Shelter)for acquisition(site control)in SLO by Consortium. l� Proposed projects of Consortium member agencies HOME funds: $329,000 by People's Self-Help Housing Corp. CDBG funds: $200,000 SLO rental housing acquisition by OPTIONS $ 30,000 Housing rehab. in Atascadero by OPTIONS S 20,000 in SLO and $ 10,000 in Atas. housing rehab. by SLO Non-Profit Housing Corp. $350,000 SLO site acquisition by SLO Non-Profit Housing Corp. $22,000 housing rehab. in Grover Beach by Casa Solana $250,000 housing acquisition in SLO by AIDS Support Network We appreciate your consideration of these projects,and thank you for all your helpful input throughout the year. Sincerely, (Demse M Rea hairperson