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
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CITY OF SAN LUIS OBISPO
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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
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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:
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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.
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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.
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Council Agenda Report - 1998 Community Development Block Grant Program
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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
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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
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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
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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.
JWL:cdb998.rpt
,43
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,'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