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HomeMy WebLinkAbout03/07/2000, 4 - A. FINAL REVIEW OF THE 2000 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) AND DRAFT 2000 CONSOLIDATED PLAN ONE-YEAR ACTION PLAN; B. CONSIDERATION OF RECOMMENDED HOME AND SPECIAL URBAN PROJECTS AND FUNDING LEVELS FOR THE SAN LUIS OBISPO council "cdig°� j agcnba Repoizt `4 CITY OF SAN LUIS O B I S P O FROM: Arnold Jonas, Community Dev ment Director. PREPARED BY: Jeff Hook, Associate Planne SUBJECTS: A. Final Review of the 2000 Community Development Block Grant Program (CDBG) and Draft 2000 Consolidated Plan One-Year Action Plan; B. 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 2000 CDBG Program activities and funding as shown in Table 1 and the Draft 2000 Consolidated Plan One-Year Action Plan; 2) endorse the recommended HOME and Special Urban Projects funding, as shown in Tables 2 and 3; and 3) forward the Council's actions and funding recommendations to the Board of Supervisors. REPORT-IN-BRIEF The City received 11 CDBG funding requests for the 2000 Program Year, totaling about $1.02 million. As with each grant year since 1994, the total requested exceeds this year's CDBG allocation of $913,763; consequently, the City will not be able to fund all of the requests during this program year. The County has issued a draft Summary One-Year Action Plan of the Consolidated Plan. That plan, Exhibit A, describes activities proposed for funding by the entire Urban County, which includes the cities of Arroyo Grande, Atascadero, Grover Beach, Paso Robles, and San Luis Obispo; and unincorporated San Luis Obispo County. The required 30-day public review period has closed and under federal rules, the City Council may now take final action on the proposed Action Plan and CDBG activities. The Board of Supervisors is scheduled to act on the Plan on March 21, 2000. DISCUSSION Background. San Luis Obispo is entering its seventh grant year as a participating city in the San Luis Obispo Urban County. This year the Urban County expects to receive about $2.7 million in CDBG funds, $1.16 million in Home Investment Partnership Program (HOME) funds, and $91,000 in Emergency Shelter Grant (ESG) funds during the program year that runs from July 1, 2000 through June 2001. The City's share is about $600 more than last year's allocation. For the first time, the City of Arroyo Grande is now part of the Urban County. 4-1 Council Agenda Report - 2000 Community Development Block Grant Program Page 2 Consolidated Plan/HUD approval. Under our Urban County cooperation agreement, the Council should consider the draft "Program Year 2000 Action Plan", part of the HUD- required Consolidated Plan (CP). Other sections of the CP are mostly background information on community needs and demographics and are not significantly changed from previous years. The draft Action Plan summarizes planned CDBG and HOME activities for 2000. This is the part of the plan that is included for Council review and recommendation to the Board of Supervisors (Exhibit A). The City 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, HOME and ESG 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, HOME and ESG projects before the CP 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 the third priority. Economic development/seismic retrofit and child care/at-risk youth services were also identified as priorities. 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. At a November 18, 1999 hearing, a representative of the Economic Opportunity Commission of SLO County spoke of the need for childcare funding in the Downtown area, the need for services for homeless women and children, and funding for expanding the tenant-based rental assistance program. A need for "sub-acute" care facilities in San Luis Obispo was also identified to serve mentally disabled persons, many of whom are homeless. An additional hearing was held on February 17, 2000 to receive comments on the Draft Consolidated Plan. Sharon Fredericks with Sojourn services, a non-profit agency for the developmentally disabled, spoke on the need for additional low income housing for disabled persons; and Cheryl Flores of Peoples' Self-Help Housing Corporation spoke on the need for a community park in Templeton. 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 persons and households with incomes below 80 percent of area median incomes; 4-2 Council Agenda Report - 2000 Community Development Block Grant Program Page 3 2. To aid in the prevention or elimination of slums or blight; and 3. To meet urgent community development needs that pose a serious, immediate threat to public health or welfare. CDBG-eligible activities include: acquisition of real property, construction of rehabilitation of public facilities and improvements, site/building clearance and demolition, tenant relocation, provision of certain types of public services, removal of architectural barriers, housing rehabilitation, historic preservation, code enforcement, special economic development activities, planning studies and grant administration. 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 2000 CDBG program meets these objectives and criteria. HOME funds may be used only for affordable housing related activities benefiting low-income families. There is a local funding match requirement equal to 25 percent of the HOME funds. Emergency Shelter Grant (ESG) funds may be used for provision of emergency shelter and related services. . Project Evaluations and Recommendations. Table 1 lists the CDBG requests and staff funding recommendations for the 2000 Program Year. The CIP review committee, consisting of staff from Administration, Public Works, Finance, Parks and Recreation, Utilities and Community Development Departments, reviewed these requests. Committee members evaluated the proposals based on HUD eligibility rules, feasibility, consistency with General Plan and City Council goals, and community needs. The funding recommendations are based on the committee's discussions and Council's previous actions regarding CDBG funding priorities. The recommended activities and funding levels emphasize continuing or completing existing CDBG programs and projects, such as homeless services, affordable housing, and handicapped ramp installation in City streets. Two new activities are recommended in support of transitional housing for the Women's Shelter and to support the development of program support offices for the Economic Opportunity Commission. 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) programs with a continuing, urgent need, such as operation of the San Luis Obispo Homeless Shelter and Prado Day Center, transitional housing for women and children, and removal of architectural barriers to disabled persons; and 3) those other activities which 4-3 Council Agenda Report - 2000 Community Development Block Grant Program Page 4 appear most consistent with Council goals and priorities such as servicing the debt on the City's Section 108 federal loan and continuing the installation of curb ramps on city streets. TABLE l: 2000 CDBG Program Applications -No. Applicant Activity $Requested $Fteoommended Housing 1 City of SLO Section 108 Loan Repayment 320,000 320,000 2 Women's Shelter of SLO Acquire Transitional Housing 150,000 150,000 3 Caldwell and Fleming Gateway Motel and Housing Project 100,000 4 EOC Home Repair Program 30,000 30,000 SUBTOTAL,Housing(55%of recommended 2000 CDBG funding) 600,000 500,000 Public Services 5 EOC Operation-SLO Homeless Sheller 120,000 120,000 6 EOC Operation-Prado Day Center 50,000 22,387- 7 Special Olympics of SLO County Community Outreach 30,000 SUBTOTAL,Public Services(150A) 200,000 142,387 Public Facilities 8 City of SLO Handicapped Ramp Installation,streets 80,000 80,000 9 EOC Program Support Offices 100,000 100,000 SUBTOTAL,Public Facilities 180,000 180,000 Planning and Administration 10 Cityof SLO Program Administration(10%) 91,376 91,376 11 EOC Planning for Child Care Center 10,000 TOTALS $1,019,819 $913,763 2000 CDBG funis available $913,763 'Balance of requested funding($27,613)to be provided through the CDBG Housing Loan Proceeds(Hotel Park Rehabilitation) Recommended CDBG Activities Section 108 Loan. In 1998, the City began to draw down its approved Section 108 federally guaranteed loan of $1.65 million. The loan has been used to fund the Housing Authority's purchase and development of affordable housing ($1 million) and to rehabilitate the historic Carnegie Library building. Loan payments will be made over six years, averaging approximately $324,000 per year for principal and interest and will come from the City's annual CDBG allocation. Council selected the six-year loan repayment schedule to retire the debt quickly and to minimise effects on the City's ongoing CDBG-funded projects. This year, principal and interest payments on the loan will total $320,000. Women's Shelter Transitional Housing. The Women's Shelter wants to purchase a two- or three-unit apartment to provide transitional housing for clients and their children who leave the shelter and need affordable housing and continued support to help re-establish their lives. If the Women's Shelter did not have eligible clients at a given time, the transitional housing would be available for clients of other member agencies of the San Luis Obispo Supportive 4-4 Council Agenda Report - 2000 Community Development Block Grant Program Page 5 . Housing Consortium. The Women's Shelter intends to use $70,880 in 1997 and 1999 CDBG funds to augment this request and to purchase the units this grant year. Staff supports this request as part of the City's on-going commitment to providing housing for special needs groups and to help complete the Women's Shelter efforts to acquire transitional housing originally supported with a 1998 CDBG grant from the City for a housing acquisition study. The balance of needed funding will come from other public and private sources. EOC Home Repair Program. The EOC requests 2000 CDBG funds from all jurisdictions in the Urban County to continue its successful home repair program. Current City funding is $100,000, and approximately 15 projects have been done to date. Staff has been working with EOC staff to help publicize the program and reach more low-income clients, and this fall, those efforts have begun to yield results. Staff supports continued funding for the program since it is the only home repair program available in the City. It meets a critical housing need by removing architectural barriers, repairing basic life/safety systems in homes, and improving the comfort and appearance of homes and mobile homes occupied by low- and very-low income persons. SLO Homeless Shelter and Prado Road Homeless Day Center. EOC requests funding at the same funding level as last year to continue operation of these important community facilities. The County of San Luis Obispo also will contribute a portion of the operations funding as with previous years. Staff supports funding to meet this continuing community housing and public service need. Due to HUD's 15 percent cap on public service spending, it is not possible to fully fund both requests from CDBG allocations. Staff recommends that the additional funding come from repaid CDBG loan funds from the Hotel Park rehabilitation. Handicapped Ramp Facilities, Streets. Staff recommends that the Council allocate funds to continue the installation of ramps on city streets to remove architectural barriers to disabled persons. The requested $80,000 would continue the CDBG program begun in 1994 and allow the installation of about 40 ramps in various residential neighborhoods. EOC Program Support Offices. The EOC has been the primary community action agency for the City and County of San Luis Obispo since 1965. The agency operates a wide range of community-based social services for low-income persons. EOC's central offices have been located in San Luis Obispo to provide administrative and core services, with satellite offices in outlying County areas. Due to growth in its programs and space needs, EOC requests $100,000 to help acquire a new administrative center in San Luis Obispo. Staff supports funding to assist that effort and to continue to provide a convenient location in San Luis Obispo for EOC clients, close to other community service agencies and related programs. The funding request would be used to help purchase land or an existing facility which meets program requirements. EOC needs to relocate by June 30, 2001, so CDBG funds are needed now to purchase property or facilities in a timely manner. 4-5 Council Agenda Report -2000 Community Development Block Grant Program Page 6 Program Administration. HUD rules allow grantees to use up to 20 percent of their total CDBG funding for general program administration. Consistent with Council direction, staff recommends that only 10 percent of the total funding be used for program administration. CDBG Activities Not Recommended Gateway Motel and Housing Project. The Gateway Motel is proposed as a mixed-use project with a 100-unit motel, 6,000 sq. ft. restaurant and mini-mart, and 24 affordable rental units on a 5.6 acre site at 1605 Calle Joaquin (former site of the Fun Zone project). The previously approved project has been abandoned and City approvals have expired. The current developer would like to use $180-240,000 in CDBG funds to help acquire land to build 12 of the 24 affordable low-income apartments planned in conjunction with the hotel. The project was not recommended for CDBG funding this year because: 1) the funding request was considered premature until project feasibility and design could be evaluated during development review and public hearings; and 2) project funding relies, in part, on in-lieu housing fees to be collected by the City for development projects pending elsewhere in the City. While the project concept is interesting, staff questioned the feasibility of completing the project in a timely manner to meet HUD goals. Special Olympics of San Luis Obispo. Special Olympics of SLO requested City CDBG funds to defray operation costs for countywide programs serving disabled children and adults. The requested funding would-allow the hiring of an "outreach coordinator" to improve the Special Olympics program and reach more athletes. Staff views the Special Olympics as an important public service. Due to HUD's 15 percent cap on public service funding, however, there are not enough public services funds for both homeless services and the Special Olympics request. In balance, staff believes on-going funding for homeless services is the more urgent need and recommends that the City's public service funds be used accordingly. Planning and Capacity Building for Court Street Child Care Center. The EOC requests funds to determine the feasibility of establishing a Downtown child care center. The center would serve the needs of low and moderate-income employees working in or near Downtown. In addition to meeting child care needs for low and moderate income families, the program would also serve child care needs for the "Courthouse Kids" program, providing a safe place for kids whose parents are involved domestic violence or other family court matters. EOC has viewed the facility being operated as a public-private partnership, possibly located in the proposed Copeland's Court Street Project. Staff does not support funding at this time because: 1) Staff felt this proposal was premature until negotiations between the City and the Copelands were further along and the project's scope, costs and feasibility were established; and 2) Parks and Recreation staff have discussed with County Courts staff the possible use of the Recreation Center on Santa Rosa Street for a Downtown Child Care Center. The Center is already licensed by the State for childcare and would be a preferable location due to its convenient 4-6 Council Agenda Report - 2000 Community Development Block Grant Program Page 7 access, ease of parking, and existing facilities. Staff is willing to work with EOC to determine the feasibility/desirability of locating the childcare facility at the Recreation Center. 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. $141,110 is available in the 2000 Program Year. Staff concurs with the County staff proposal to allocate Special Urban Projects funds in the amounts of$130,000 to fund the SLO Homeless Shelter and $11,110 to help fund the Motel Voucher Shelter Program in North County, as shown in Table 2. These facilities qualify as Special Urban Projects by serving critical needs of low-income residents from throughout San Luis Obispo County. TABLE 2: Recommended Special Urban Projects For The 2000 Program Year Recommended Project Name Applicant Funding ($) SLO Homeless Shelter Operation/North County Economic Opportunity 130,000 Case Management Commission Motel Voucher Shelter Program, North County Homeless Housina 11,110 Project, Inc. TOTAL 141,110 HOME Funding. The Urban County expects to receive $1,157,000 in formula HOME funds, plus $37,000 in program income in 2000. HOME-funded projects which could directly benefit City residents include $267,000 to continue the Housing Authority's First time Homebuyer's Assistance Program, $250,000 for the Housing Authority's Special Needs Tenant-based Rental Assistance Program, and $80,000 to help Sojourn Services purchase a 4- unit apartment for developmentally disabled persons in San Luis Obispo. The Urban County's Home funding recommendations are shown in Table 3. 4-7 Council Agenda Report - 2000 Community Development Block Grant Program Page 8 TABLE 3: Recommended HOME Projects For The 2000 Program Year Project Name Applicant Recommended Funding ($) Avila Beach Rental Housing for low-income Peoples' Self-Help Housing 425,000 persons Corporation First-time Homebuyers Program(Cour wide SLO Housing Authority 267,000 Tenant-based Rental Assistance (Countywide) SLO Housing Authority 250,000 Mi Tierra Ownership Housing in Oceano Affordable Homes 93,000 Special Needs Rental Housing in SLO Sojourn Services 80,000 Program Administration County of SLO 79,000 TOTAL 1 1,194,000 Program To Date. As the City enters its seventh grant year, it continues to administer CDBG-funded activities from previous years. Exhibit B provides a summary of CDBG activities by Program Year. All previously funded activities are either completed, underway, or expected to proceed soon. Consequently, staff does not recommend program amendments to reallocate funds encumbered in previous grant years. 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. 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: Draft 2000 Urban County One-Year Action Plan Summary -Exhibit B: CDBG Program Summary By Program Year NOTE: 2000 CDBG Project Applications are available in Council Office. n1/CDBG/CDBG00.cmpt 4-S Executive Summary This CONSOLIDATED PLAN has been prepared to identify and outline a comprehensive strategy to address San Luis Obispo County's housing and community development needs. The program year established for this plan is from July 1 through June 30. The most important function of this plan is to establish how available federal funding resources will be used to meet local needs. The urban county covered by the plan includes the cities of Arroyo Grande, Atascadero, Grover Beach, Paso Robles and San Luis Obispo, plus the unincorporated areas of the County of San Luis Obispo. Available Formula Grants Each year HUD publishes the amounts of funding that the County will receive in the following program year from the Community Development Block Grant Program (CDBG), the HOME Investment Partnerships Program (HOME), and the Emergency Shelter Grant Program (ESG). Based on the mounts available for the 2000 program year, the total amounts of formula grants during the five program years covered by this Consolidated Plan may be $1.35 million in CDBG funds, $5.78 million in HOME funds, and $455,000 in ESG funds. Table 1 below shows the actual amounts by program year. Some CDBG and HOME funds are usually repaid to the County or cities each year, and those repaid funds are called "program income". Federal rules require program income to be reallocated for eligible purposes as part of the Consolidated Plan and its Action Plans. The County estimates that approximately$100,000 in CDBG funds and $50,000 in HOME funds may become available during the five program years covered by this Consolidated Plan. However, since existing loans of CDBG and HOME funds are deferred-payment loans, the actual amounts of available program income depends heavily upon national interest rates, which in tum, affect borrowers' decisions to refinance or sell their homes. Table 1 below lists the actual amounts of available program income by program year. Table 1: Available Funds by Program Year Funding Source 2000 2001 2002 2003 2004 Total Formula CDBG $2,704,000 CDBG program income $377,441 Total CDBG $3,081,441 Formula HOME $1,157,000 HOME program income $37,000 Total HOME $1,194,000 Formula ESG $91,000 Total $4,366,441 Public participation Exhibit A Draft 2000 Consolidated Plan (02/21/00) Executive ary San Luis Obispo County Page i The county Planning and Building Department acted as the lead agency in preparing this plan, as provided in the cooperative.agreements executed by the participating jurisdictions in order to maintain "urban county" status under HUD regulations. The cities collaborated with the county throughout the process of conducting citizen participation activities and preparing the plan. The county conducted five advertised public workshops and one public hearing to solicit public input about housing and community development needs before issuing a county- wide request for proposals and preparing draft funding recommendations. These meetings satisfied the federal requirement for at least one public hearing before the draft consolidated plan is prepared. A public hearing was conducted by the county Board of Supervisors on November 9, 1999. The workshops were held in handicapped-accessible locations in Grover Beach on November 16, 1999; Paso Robles on November 17, 1999; San Luis Obispo on 18, 1999; Arroyo Grande on November 18, 1999; and Atascadero on November 22, 1999. Most of the people attending the workshops and the hearing requested that the county and cities place a high priority for use of CDBG funds on the expansion of homeless services and facilities beyond those already provided primarily in the City of San Luis Obispo. More specifically, they asked that outreach to homeless persons in the North County be provided, and that a homeless day center and shelter be established in at least one location in the North County. Also, they identified a need for facilities for the Food Bank Coalition and Loaves and Fishes in Paso Robles. There is a need to develop more affordable housing for low and very low income persons in all parts of the county. Rental housing is becoming significantly less available and less affordable throughout the county. Recreation facilities, programs and child care were also cited as important areas of need. On November 5, 1999, the County issued a county-wide request for proposals and comments (RFP)to encourage interested parties to submit their comments and proposals for funding through the CDBG, HOME and ESG programs, so that achievable programs and projects could be considered as the 1999 One-Year Action Plan of the Consolidated Plan was prepared. The due date for proposals was December 30, 1999. The RFP included evaluation criteria used by the cities and the county during the previous three years, as follows: 1. Consistency with federal regulations and laws 2. Community support (for example, approval of project by a city council) 3. Seriousness of community development need proposed to be addressed by project 4. Degree to which project benefits low-income and very low-income families or persons 5. Feasibility of the project to be completed as budgeted and by June 30, 1999 6. Cost effectiveness of funds requested and leveraging of other funds 7. Organization's experience or knowledge regarding CDBG or HOME requirements For purposes of evaluating housing proposals, cost effectiveness (and leveraging of outside funds) was quantified to enable comparisons among competing proposals and to "get the most bang for the buck" from the county's limited grant funds. More specifically, recent projects have demonstrated that rental housing for low and very low income households can be developed with $30,000 to $40,000 per unit of county grant funds, Executive Summary Draft 2000 Consolidated Pla 0 00) Page ii San Luis Obispo County when combined with major funding from the Low Income Housing Tax Credit Program or other outside resources. Ownership housing for low and moderate income households can be developed with less County grant funds, generally between $20,000 and $30,000 per unit, since the purchasing households can afford to pay more for housing than low income households. Public input and consultations with the various involved groups enabled the county to identify several basic principles to guide establishment of the priorities and programs identified in this plan. These basic principles include the following: 1. Emphasize programs which offer long-term solutions to problems and empower people to improve their own lives and self reliance. 2. Build local capacity to continue needed programs well into the future. 3. Maximize benefit to low- and moderate-income persons through programs which address the most important needs and do so in a cost-effective manner. List of Strategies and Priorities The priorities included in this plan are listed below: Affordable Housing Strategy: Priority#1: Increase first-time home ownership opportunities for low-and moderate-income households. Priority #2: Increase availability of affordable and decent rental housing for low- and moderate-income persons and families. Priority #3: Maintain and upgrade existing neighborhoods and housing units occupied by low- and moderate-income households. Addressing Homelessness: Priority#1: Prevent homelessness by enabling people to obtain or retain decent affordable housing and supportive services. Priority #2: Provide needed emergency shelter facilities and related services. Economic Development Strategy: Priority #1: Establish a revolving loan fund and other forms of business assistance to enable businesses to create or retain jobs. Priority#2: Promote the county as a desirable location for new or relocating businesses. Draft 2000 Consolidated Plan (02/21/00) Executi S ary San Luis Obispo County Page iii Public Facilities and Services Strategy: Priority#1: Provide assistance to communities and neighborhoods that consist primarily of low- and moderate-income persons and cannot afford necessary public facilities or services. Specific activities approved for funding under this plan to address these priorities are listed in the annual action plans found in Section IV of this Consolidated Plan. Executive Summary Draft 2000 Consolidated P1461030-0) 00) Page iv San Luis Obispo County Program Year 2000 Action Plan Available Federal Resources The county has prepared this one-year action plan primarily to describe the activities proposed for funding through the County's 2000 CDBG, HOME and ESG Programs. The amounts of these resources expected to be available in the 2000 program year are as follows: Table 12: Available Federal Resources Source Amount 2000 CDBG Program $2,704,000 CDBG Program Income $377,441 2000 HOME Program $1,157,000 HOME Program Income $37,000 2000 ESG Program $91,000 Total $4,3667441 The cooperative agreements between the county and five participating cities allocate the CDBG funds as follows: Table 13: Allocations of Available CDBG Funds JURISDICTION 2000 PROGRAM PROGRAM FORMULA INCOME YEAR 2000 ALLOCATION TOTAL Arroyo Grande $146,474 $146,474 Atascadero $237,695 $237,695 Grover Beach $179,278 $179,278 Paso Robles $286,054 $154,000 $594,054 San Luis Obispo $913,763 $913,763 Unincorporated county $940,736 $223,441 $1,387,618 TOTAL $2,704,000 $377,441 $3,458,882 Other, non-formula federal resources which are expected to be available for use in the county during the next year include the Low Income Housing Tax Credit Program, RECDS (FmHA) Section 502, HUD Section 8, HOPWA, Supportive Housing, FEMA and the MCC programs. The amounts of these funds which will be available is not yet known. Draft Program Year 2000 Action Plan of Consolidated Plan (02121/00) Page 51 San Luis Obispo County 4-13 Other Resources The county expects that funds may be available from the California Housing Finance Agency and from the California Rural Home Mortgage Finance Authority for mortgage assistance to middle-income and low- and moderate-income families. Also, some funds are available from the Department of Economic Opportunity to assist with operation of the homeless shelter in San Luis Obispo. Private funds from lending institutions for short-term construction loans and for long-term home purchase loans will be available. Funds through two redevelopment agencies and the United Way are expected to be made available in the next year, but their amounts are as yet unknown. For example, the City of Paso Robles may provide redevelopment funds to assist with the acquisition and/or development of affordable rental housing by People's Self-Help Housing Corporation. Certain fees can be waived by the county or its cities for affordable housing developments. The county exempts some public agencies and nonprofit organizations from paying property taxes on affordable rental housing they own and operate. In some instances, the county or cities may require dedication of land for affordable housing as a condition of approval for major projects. These local resources, and others the county will continue to pursue, can be used to meet the 25 percent local match requirement of the HOME program. Finally, another source of match for the HOME program is the labor savings which occurs during construction of affordable homes in the "self-help" method. Leveraging of Resources The county has selected the activities to assist with the limited.fo rmula-based federal funds available in a manner which maximizes the amount of other funds which will be leveraged. For example, the home ownership programs can typically leverage about fourto five times the amount of CDBG or HOME funds being lent to a low- and moderate-income family. Where possible, the county has emphasized loans of its formula funds, rather than outright grants, to maximize the recycling of the funds and extend they benefit low- and moderate- income families into the future. Geographic Distribution The funded activities are distributed to activities in local communities in a manner which balances the needs of low and moderate income persons and the feasibility of proposed programs. Proposals were submitted to the county in response to a request for proposals. Feasible proposals which would target communities with high concentrations of low and moderate income persons and minorities were given more priority than similar proposals for areas without such concentrations. Also,the CDBG funds are allocated to participating cities and the county according to a formula that emulates the federal formula. It accounts for population, poverty and overcrowding. Actions to Remove Fair Housing Impediments Page 52 Draft Program Year 2000 Action Plan of Consolidated Plan (02/21/00) San Luis Obiltipr4nty The County has already prepared the Analysis of Impediments (AI) and submitted its executive summary to HUD, although HUD did not respond. The County reviewed home mortgage disclosure data and found do trends or patterns that would suggest significant impediments to fair housing choice. The County also received training from HUD and the California Coalition for Rural Housing regarding fair housing requirements, reviewed its zoning ordinance, and made a preliminary determination that its zoning ordinance does not violate fair housing laws. In late 1999 and early 2000, the County updated its Al, and the Executive Summary will be trasnmitted to HUD with this Consolidated Plan. In 2000, the County will assist local cities in reviewing their zoning ordinances similarly. Activities to be Undertaken The activities the county intends to implement with the formula funds (CDBG, HOME) made available during the next year, in combination with other funds, are listed in the table shown in the following pages. More detailed descriptions can be found in the HUD tables located in the appendix. Some of these activities will use prior year CDBG or HOME funding in addition to 2000 CDBG or HOME funds. The relationship of the activities to the priorities in this plan are as follows: Affordable Housing Strategy: Priority #1: Increase first-time home ownership opportunities for low- and moderate- income households. $360,000 in HOME funds are allocated in this one-year plan for development of new affordable ownership housing, and for purchase of existing ownership housing for low-and moderate-income households. Of that amount, $267,000 is proposed for the County's First-Time Home Buyer Program and is expected to benefit 16 low and moderate income households. The remaining $93,000 is proposed to augment $410,000 in HOME funds previously committed to a 15-unit project of new homes for low and moderate income households. Priority #2: Increase availability of affordable and decent rental housing for low- and moderate-income persons and families. $905,000 in HOME and CDBG funds are allocated for this priority. This consists of $425,000 in HOME funds for construction of a 14-unit apartment project in Avila Beach by People's Self-Help Housing Corporation (benefitting 14 low and moderate income households); $80,000 in HOME funds for acquisition of an existing three-unit apartment property in San Luis Obispo by Sojourn, Inc. (benefitting 6 low and moderate income households); $250,000 in HOME funds for Tenant-Based Rental Assistance fro Special Needs Households by the Housing Authority of the City of San Luis Obispo(benefi ting 175 low and moderate income households); and $150,000 in CDBG funds for acquisition of transitional housing in San Luis Obispo by San Luis Obispo Women's Shelter Program (benefitting 10 low and moderate income households). Draft Program.Year 2000 Action Plan of Consolidated Plan (02/21/00) ,f Page 53 A San Luis Obispo County -15 Priority#3: Maintain and upgrade existing neighborhoods and housing units occupied by low- and moderate-income households. $125,880 in CDBG funds are funded for this priority in the current program year. Of that amount, $92,230 is for a minor home repair program implemented by Economic Opportunity Commission (benefitting 30 low and moderate income households) and $33,650 in CDBG funds for rehabilitation of a group recovery home in Grover Beach by Casa Solana, Inc. (benefitting 6 low and moderate income persons). Addressing Homelessness: Priority#1: Prevent homelessness by enabling people to obtain or retain decent affordable housing and supportive services. This priority is being addressed in the current program year through CDBG and HOME funding for affordable housing developments, acquisitions, rehabilitation, and tenant-based rental assistance as identified above. Priority #2: Provide needed emergency shelter facilities and related services. The County proposes to use $437,900 in CDBG and ESG funds for this priority. This consists of $250,000 in CDBG and $46,800 for operation of the SLO Homeless Shelter (benefitting 750 low income persons) and North County case management services (benefitting 100 low income persons) by the Economic Opportunity Commission (EOC); $72,900 in CDBG funds, $27,100 in miscellaneous revenue from SLO City, and $15,792 for operation of the Prado Homeless Day Center by EOC (benefitting 1000 low and moderate income persons); $24,000 in CDBG funds for the North County Motel Voucher Program by Homeless Housing Project (benefitting 540 low and moderate income persons); $14,748 in ESG funds for operation of the SLO Women's Shelter (benefitting 110 low and moderate income persons); and $13,660 for operation of the North County Women's Shelter (benefitting 100 low and moderate income persons). Economic Development Strategy: Priority #1: Implement a revolving loan fund and other forms of business assistance to enable businesses to create or retain jobs. No new funding is proposed for this priority because funds previously allocated are still be used. Additional funding may needed in future program years. Priority #2: Promote the county as a desirable location for new or relocating businesses. This priority cannot be met with CDBG or HOME funding, but the EVC is addressing using non-CDBG funding. Page 54 Draft Program Year 2000 Action Plan of Consolidated Plan (02121/00) San Luis Ob*g f*nty Public Facilities and Services Strategy: Priority#1: Provide assistance to communities and neighborhoods that consist primarily of low- and moderate-income persons and cannot afford necessary public facilities or services. This priority is being met through CDBG funding for handicapped accessibility improvements and through a variety of other public facilities and improvements in Oceano, Atascadero, San Luis Obispo, Paso Robles and Grover Beach. All activities proposed for funding in Program Year 2000 are shown in the following summary table and in the more detailed HUD tables that follow it. Draft Program Year 2000 Action Plan of Consolidated Plan (02/21/00) Page 55 San Luis Obispo County 4-17 Program Year 2000 CDBG, HOME and ESG Activities Summary # Project Funds recommended CDBG HOME ESG County SLO Paso Atas Arroyo Grover Housing 1 Home repair program by Economic $23,691 $30,000 $30,000 $8,53 Opportunity Commission 2 vila Beach rental housing by People's $425,000 Self Help Housing Corporation Mi Tierra ownership housing in Oceano $93,000 by Affordable Homes (augment $410,000 previously committed) Special needs rental housing in SLO $80,000 by Sojourn Services First-time home buyer program by $267,000 Housing Authority of SLO 6 Special needs tenant-based rental $250,00 assistance by Housing Authority of SLO Housing rehabilitation (in Grover)by $33,650 Casa Solana Acquire transitional housing in SLO by $150,000 SLO Women's Shelter Affordable housing fund $34,547 Subtotal Housing $57,341 $214,547 $0 $30,000 $8,539 $0 $1,115,000 $0 Public Services 1 SLO homeless shelter&N Co case mgt $130,000 $120,000 $46,800 by Economic Opportunity Commission Prado homeless day center in SLO by $50,000 $22,900 $15,79 Economic Opportunity Commission (plus$27,100 City funds) 3 Emergency motel voucher shelter $24,000 program by Homeless Housing Project Domestic violence shelter in SLO by $14,748 SLO Women's Shelter Domestic violence shelter in Atas by $13,66 NC Women's Shelter Outreach by SLO Special Olympics $1,800 Youth activity scholarships in $6,000 Atascadero by Comm Services Foundation 8 Purchase refrigerator/freezer in $600 tascadero by Creative Alternative for Page 56 Draft Program Year 2000 Action Plan of Consolidated Plan (02/21/00) San Luis Obispo Co41yI8 # Project Funds recommended CDBG HOME ESG County SLO Paso Alas Arroyo Grover Leaming and Living Purchase 3 dishwashers in Atas by $2,253 Purchase refrigerator/freezer in Atascadero by Creative Alternative for Learning and Living Subtotal Public Services $204,000 $142,900 $0 $8,853 $1,800 $0 $0 $91,000 Code Enforcement 1 Code enforcement in redevelopment $15,000 area by City of Arroyo Grande Subtotal Code Enforcement $15,0001 1 Public Facilities 1 Construction of community center by $600,00 Oceano Community Center Acquisition of Harvest Meadows park $70,000 site by Templeton Community Services District 3Acquisition of site for offices by $100,000 Economic Opportunity Commission Handicapped access ramps by City of $80,000 SLO 5 Disabled access to Carnegie Library by $138,38 City of Paso Robles Public improvements in low income $117,000 neighborhoods by City of Paso Robles Construct skate park in Pioneer Park $106,000 8Storm drain by N Co Women's Shelter $4,430 9 Sidewalk improvements by City of $25,000 Atascadero 10 Public improvements in low income $100,000 areas by City of Atascadero 11 Handicapped access to facilities by $30,000 City of Atascadero 12 Disabled access to parks by City of $16,19 Arroyo Grande 13 Construction of sidewalks on Spruce $73,500 Street by City of Arroyo Grande 14 Install fire hydrant on Spruce Street by $6,000 People's Self-Help Housing Corporation Draft Program Year 2000 Action Plan of Consolidated Plan (02/21/00) Page 57 San Luis Obispo County 4-19 # Project Funds recommended CDBG HOME ESG County SLO Paso Atas Arroyo Grover 15 South Grover Beach drainage $180,000 improvements Subtotal Public Facilities $670,000 $180,000 $361,384 $159,430 $95,695$180,000 $0 $0 Section 108 loan payments 1 Section 108 loan payment by City of $320,000 SLO Subtotal Section 108 loan payments $320,000 Planning&Capacity Building 1 Capacity building by Paso Robles $36,000 Subtotal Planning&Capacity Building $0 $0 $36,000 $0 $0 $0 $0 $0 General Administration 1 Administration by County $232,835 $79,000 Administration by City of SLO $95,27 Administration by City of Paso Robles $54,000 Administration by City of Atascadero $47,508 Administration by City of Arroyo $30,400 Grande 6Administration by City of Grover Beach $6,391 Subtotal General Administration $232,835 $95,272 $54,000 $47,508 $30,400 $6,391 $79,000 TOTALS $1,164,176 $952,719 $451,384 $245,7911$151, $186,391 $1,194,000$91,00 Low/mod benefit(70%min) 93.7% Admin/planning(20%max) 15.9% Public services(15%maximum) 11.3% Total CDBG funds including program $3,151,895.00 income Page 58 Draft Program Year 2000 Action Plan of Consolidated Plan (02/21/00) San Luis Obispo Co*20 City of San Luis Obispo CDBG PROGRAM SUMMARY BY PROGRAM YEAR Original Budget Revised Expenditures Budget Budget Revisions Budget as of 1/14/00 Remaining 199495 Program 858,179 0 858,179. 664,842 193,337 Housing Homeless shelter operations 120,000 120,000 120,000 0 Affordable housing acquisition by ASN 103,474 103,474 103,474 0 Blackstone Hotel 200,000 (200,000) 0 0 0 Downtown housing study 50,000 7,499 57,499 57,499 0 High Street apartments 102,429 (102,429) 0 0 0 Affordable housing site=SLO non-profit 191,456 191,456 0 191,456 Public Services At-risk youth 80,000 (8,000) 72,000 72,000 0 Public Facilities Handicapped access improvements Streets/sidewalks 60,000 13,451 73,451 73,451 0 Parks 40,000 40,000 38,119 1,881 Storm drains 34,674 34,674 34,674 0 Historic museum 31,364 31,364 31,364 0 Economic Development 0 Seismic retrofit 120,000 (99,875) 20,125 20,125 0 Planning and Administration 0 Program administration 85,750 28,386 114,136 114,136 0 1995-96 Program 953,720 0 953,720 953,720 0 Housing Homeless shelter operations 120,000 120,000 120,000 0 Transitional housing 20,000 20,000 20,000 0 EOC clinic 121,000 121,000 121,000 0 AIDS support network 206,000 206,000 206,000 0 Prado day center-construction 50,000 50,000 50,000 0 Public Services At-risk youth 100,000 100,000 100,000 0 Children's'work incentive 12,000 12,000 12,000 0 Public Facilities Historic museum 150,000 (16,024) 133,976 133,976 0 Economic Development Seismic retrofit 79,000 (79,000) 0 0 0 Planning and Administration Program administration 95,720 95,024 190,744 190,744 0 Exhibit B 4-21 - I- I/CDBG/Reimb Reconciliation/Council Summary City of San Luis Obispo CDBG PROGRAM SUMMARY BY PROGRAM YEAR Orie nal Budgetl Revisedl Expenditures Budget Budget R_ev_isions Budget as of 1/14/00 Remaining 1996.97 Program 926,374 0 926,374 628,165 298,209 Housing Homeless shelter operations 116,559 3,441 120,000 120,000 0 Prado day center operations 38,853 1,147 40,000 40,000 0 Prado day center construction 48,566 1,434 50,000 50,000 0 Senior housing by SLO non-profit 206,600 206,600 0 206,600 Section 108 loan payment 265,149 (265,149) 0 0 0 Public Services At-risk youth 61,194 9,913 71,107 71,107 0 Public Facilities Historic museum 113,645 (86,422) 27,223 27,223 0 Restore historic adobes 120,000 120,000 28,391 91,609 Storm drains 65,768 65,768 65,768 0 Handicapped access improvements 40,401 40,401 40,401 0 Economic Development Seismic retrofit 97,133 (97,133) 0 0 0 Planning and Administration Airport area specific plan 92,637 92,637 92,637 0 Program administration 92,638 92,638 92,638 0 1997-98 Program 935,220 0 935,220 714,245 220,975 Housing Home repair program by EOC 50,000 50,000 7,392 42,608 Margarita site purchase by HASLO 93,400 (93,400) 0 0 0 Senior housing by SLO non-profit 93,400 93,400 0 93,400 Women's shelter transitional housing 20,810 20,810 788 20,022 Homeless shelter operations 120.000 120,000 120,000 0 Prado day center operations 40,000 40,000 40,000 0 Homeless shelter improvements 20,000 20,000 20,000 0 Section 108 loan repayment for housing 44,200 44,200 44,200 0 Public Services At-risk youth program 46,450 46,450 46,450 0 Public Facilities Handicapped access improvements 36,148 36,148 36,148 0 Historic museum 94,666 94,666 94,666 0 Drainage improvements 95,326 95,326 76,398 18,928 Women's shelter storage building 23,852 23,852 23,852 0 Section 108 loan repayment for museum 28,800 28,800 0 28,800 Economic Development EVC loan program 120,000 120,000 120,000 0 EVC loan program administration 30,000 30,000 12,783 17,217 Planning and Administration Program administration 187,044 (115,476) 71,568 71,568 0 4-22 -2- I/CDBG/Reimb Reconciliation/Council Summary City of San Luis Obispo CDBG PROGRAM SUMMARY BY PROGRAM YEAR Original Budget Revised Expenditures Budget Budget Revisions Budget as of 1114/001 Remaining 1998-99 Program 907,776 0 907,776 443,575 464,201 Housing Homeless shelter operations 120,000 120,000 120,000 0 Prado day center operations 40,000 40,000 20,000 20,000 Home repair program by EOC 50,000 50,000 0 50,000 Repair transitional housing-SLO non-profit 20,000 20,000 20,000 0 Affordable housing site-SLO non-profit 108,544 108,544 0 108,544 Multi-family housing study: SLO Consortium 9,000 9,000 0 9,000 Public Facilities Drainage improvements 19,232 19,232 0 19,232 Historic museum 200,000 200,000 50,968 149,032 Handicapped access improvements 150,000 150,000 89,520 60,480 Economic Development EVC loan program 80,000 80,000 80,000 0 EVC loan program administration 20,000 20,000 0 20,000 Planning and Administration Program administration 91,000 91,000 63,087 27,913 1999-00 Program 913,122 0 913,122 277,360 635,762 Housing Homeless shelter operations 120,000 120,000 30,000 90,000 Prado day center operations * 45,400 45,400 0 45,400 Women's shelter transitional housing 50,000 50,000 0 50,000 Section 108 loan repayment: housing 160,983 160,983 148,931 12,053 Public Facilities Historic museum 240,761 240,761 0 240,761 Section 108 loan repayment: museum 104,666 104,666 96,829 7,836 Economic Development EVC loan program 80,000 80,000 1,600 78,400 EVC loan program administration 20,000 20,000 0 20,000 Planning and Administration Program administration 91,312 91,312 0 91,312 TOTAL 5,494,391 0 5,494,391 3,681,907 1,812,484 * Excludes$4,600 in day center funding from CDBG revolving loan program,for total City support of$50,000. 4-23 -3- 1/CDBG/Reimb Reconciliation/Council Summary MEET, AGENDA DATE -3 -7-W r1 EM #r FeFirraiRD&L- CDBG CDD DIR ❑FIN DIR ADDENDUM ❑FIRE CHIEF ❑PW DIR to the IG ❑POLICE CY,F M ❑REC DIS Women's Shelter Program's ❑PERS DIR l 2000 Funding Application The Women's Shelter Program (WSP) is proposing the use of CDBG funding to purchase a three or four unit property within the city of San Luis Obispo. The property would be used as transitional housing for clients of the Women' s Shelter Program. The cost of the property is estimated to be between $350,000 to $450,000. The CDBG 1999 funds in the amount of $70,880, already awarded to this project, and the requested CDBG 2000 funds in the amount of $150,000 total $220,880 in funding. These funds would be used for the down payment and closing costs (estimated at 2% of the purchase price) . The WSP is actively seeking additional funding from other sources to pay off the mortgage which would be incurred in the purchase. Until other funding can be secured, the WSP would be able to meet the monthly payments on a 30 year loan at 8% interest. Coast National Bank and other lenders have assured us that we would be able to secure such a loan. Monthly loan payments and the cost of upkeep would be covered by the rental of the units. George Moylan, Director of the Housing Authority of the City of San Luis Obispo, has assured us that the WSP would qualify as a Section 8 landlord. That designation, which would guarantee rental payments for the WSP, would also enable our clients to be able to afford transitional housing. RECEIVED MAR 1 - 2000 SLO CITY CLERK Addendum - p. 2 WSP - CDBG 2000 The following is an estimate of income and expenses for three different hypothetical properties. The income would depend on the number and size of the units. #1 : 3 units - $350,000 Expenses selling price $350,000 closing costs 7,000 (estimated - 2% ) Total costs $357 ,000 CDBG funds - 220 ,880 Balance $136 ,120 to be paid by 30 year loan (estimated - 80 interest) Monthly Expenses Loan payments $1 ,027 Trash, water & repair & upkeep 600 Total monthly costs $1 ,627 Monthly Income Section 8 Rents Studio apt. $525 1 bed. apt. 575 2 bed. apt. 736 Total monthly income $1 ,836 ' Addendum - p. 3 WSP - CDBG 2000 #2: 3 units - $400,000 Expenses selling price $400,000 closing costs 88000 (estimated - 2%) 'otal costs $408,000 66AG funds - 220,880 Balance $187,120 to be- .paid by 30 year, loan (estimated - 8% interest) Monthly Expenses Loan payments $1 ,394 Trash, water. & repair & upkeep 633 Total monthly costs $2,027 Monthly Income Section 8 Rents 1 bed. apt. $575 2 bed. apt. 736 2 bed. apt. 736 Total monthly income $2,047 Addendum - p. 4 WSP - CDBG 2000 #3: 3 units - $450,000 Expenses selling price $450,000 closing costs 9,000 (estimated - 2%) Total costs $459,000 CDBG funds - 220,880 Balance $238,120 to be paid by 30 year loan (estimated - 8$ interest) Monthly Expenses Loan payments $1 ,761 Trash, water & repair & upkeep 725 Total monthly costs $2,486 Monthly Income Section 8 Rents 2 bed. apt. $736 2 bed. apt. 736 3 bed. apt. 10,022 Total monthly income $2,494 MEETING AGENDA �umilVlilpull���� I���I �� MCMOIZ ►noum .� .;I-s .7777777 DATE: March 3, 2000 TO: City Council VIA: John Dunn, CY FROM: Shelly Stanwyck, Economic Development Manager SUBJECT: Economic Vitality Corporation's Use of CDBG Funds As you may have noted, City staff is not recommending additional CDBG Funds for the 2000- 2001 fiscal year for the Economic Vitality Corporation of San Luis Obispo County(EVC). The purpose of this memorandum is to provide background information related to this recommendation. Since 1997,the Economic Vitality Corporation of San Luis Obispo County(EVC)has received CDBG fund allocations from City for its Revolving Loan Fund (RLF) Program. The funds are used to create private sector jobs;provide services or goods for low and moderate income persons, and to diversify and strengthen the economic base of a community. • Since the 1997-1998 fiscal year, the City has contributed a total of$350,000 to the EVC's RLF fund. Five loans have been made to businesses in the City of San Luis Obispo. City CDBG funds are used as collateral. The funds are not actually loaned to the business,rather they are encumbered as a cash guarantee. Upon repayment of the loan, the funds are recycled back into the RLF Program,hence the name`revolving loan". The Second Quarter 1999-2000 was busy for the City's RLF. Two loan guarantees were funded for a total of$140,000. One loan guarantee for$40,000 was issued to support a$50,000 loan to assist Chef Em's expansion: The second guarantee was for$100,000 to support a$200,000 loan to Omni Design for the expansion of its technical support staff. For the 2000-2001 fiscal year, the EVC is not requesting additional CDBG funds. At this time, they feel the City's cumulative allocation is sufficient to meet the current demands for RLF Funds for San Luis Obispo businesses. Staff will continue to monitor the RLF Program closely, and may require additional CDBG funds in the future if the demand for RLF Funds increases. rDPr'i';:GIL GD 0;R — 011'NDIR Rr p? AO ❑FIRE CHIEF 0AF ORNEY O PW DIA CMERKIORIG ❑POLICE CHF ❑MGMT ❑REC Df ❑ CI rcRc:DIi; memo cdbg