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HomeMy WebLinkAbout01-27-2010 CDBG MinutesCDBG Minutes January 27, 2010 Page 1 of 4 CITY OF ORANGE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM COMMITTEE MINUTES WEDNESDAY, JANUARY 27, 2010 6:30 P.M. Economic Development Conference Room MEMBERS PRESENT Gina Scott Mary Ellen Manning Eva Perez Fernando Rico Robert Tunstall Alternate Darren Smith MEMBERS ABSENT None STAFF PRESENT Mary Ellen Laster Robert Moya Aaron Schulze I.CALL TO ORDER The meeting was called to order at 6:35 P.M. II.ELECTION OF CHAIRPERSON Committee Member Scott nominated Eva Perez to serve as the Community Development Block Grant Committee Chairperson. Committee Member Rico seconded the motion. Without objection, Eva Perez was elected as the Community Development Block Grant Committee Chairperson, 5-0. Committee Member Perez thanked everyone for their support and wished them all a happy New Year. III. APPROVAL OF MINUTES – MARCH 4, 2009 Committee Member Scott moved, seconded by Committee Member Rico, to approve the March 4, 2009, Minutes as presented. Motion carried, 5-0. IV. REVIEW OF FY 2009-10 CDBG ACTIVITIES Mr. Moya highlighted the Subrecipient Status Report for FY 2009-10, noting how much each agency has spent as of this date and how many recipients have been assisted as of 12-31-09. He advised that with the exception of Rebuilding Together Orange County,Safe at Home 2009- 2010, every agency has been doing well in complying with the rules by submitting their quarterly reports and spending their allocated funds. He CDBG Minutes January 27, 2010 Page 2 of 4 explained that Rebuilding Together Orange County has not spent its allocated funding, has not submitted any quarterly reports, and mentioned that this agency did not apply for FY 2010-11 funding. V.DISCUSSION OF FY 2010-15 CONSOLIDATED PLAN PROCESS Ms. Laster advised that tonight’s meeting was advertised in the newspaper to invite the public to attend; stated that this year, the Committee will be addressing the 2010-15 Five-Year Consolidated Plan; and mentioned that in order to save money, staff has decided to prepare the Five-Year-Year Consolidated Plan in-house. Ms. Laster highlighted the 2010-15 Consolidated Plan Community Development Needs Survey that was distributed to each Committee member; she advised that the nonprofit agencies have been asked to complete the survey and also have their beneficiaries complete this survey; and she asked that each member of this Committee complete the survey. Ms. Laster explained that this is done every five years to establish the priorities. Ms. Laster noted that an Annual Action Plan is included in the Five-Year Consolidated Plan for the first year of the Plan; and that a separate Annual Action Plan is also completed for each of the remaining four years of the Five-Year Consolidated Plan period. With respect to the Five-Year Consolidated Plan Priorities, Objectives and Annual Goals, Ms. Laster stated she does not see those points changing unless there is some opposition to any of the categories on the list, such as Accessibility, Housing, Infrastructure, Public Facilities, and Public Services. She did point out though, that the First-Time Homebuyer Program will most likely be removed because that program is no longer practical. She stated that the First-Time Homebuyer Program is funded with Housing Set-Aside funds, which require onerous 45-year affordability covenants; and added that homebuyers do not like this requirement and do not find it to be practical, especially given this County’s decline in housing prices. She mentioned that these properties cannot be sold for 45 years unless the buyer is a Moderate Income homebuyer, noting it is now easier for Moderate Income homebuyers to purchase market rate homes than to buy homes with restrictive covenants. Ms. Laster expressed her belief the State legislature would prefer that Housing Set-Aside funds be used to develop multi-family affordable rental housing as opposed to ownership housing. She advised that the Housing Set-Aside funds budgeted for the First-Time Homebuyer Program will be used for more affordable rental housing; and that the City will use the same categories that are set forth in the Consolidated Plan. CDBG Minutes January 27, 2010 Page 3 of 4 VI.REVIEW OF FY 2010-11 CDBG FUNDING REQUESTS Ms. Laster referred to the FY 2010-11 funding cycle meeting schedule; pointed out there are fewer agencies applying for funds this cycle even though there were a lot of nonprofit agencies that requested applications; and explained that while the City does not yet know the amount of its CDBG grant, she believes there still will not be enough funds for every agency that has applied. She added that the figures will be adjusted when the final numbers are known. She stated that the 10 nonprofit agencies that will be making their presentations before this body do meet the eligibility requirements for this program. She noted that the only new agency applying for funding is Lestonnac Free Clinic. Ms. Laster explained that the grant for the current fiscal year is a bit higher than the dollar amount in the minutes, because HUD increased the City’s CDBG allocation after the Committee had made its funding recommendations last year; and she noted that the allocations for two nonprofit agencies (Mariposa Women and Family Center and Women’s Transitional Living Center, Inc.) were increased slightly following those deliberations. She added that the City had to reduce the amount allocated to ADA ramps, because after HUD allocated all the CDBG grants, it found there were cities in the nation that were entitled to receive moneys that had not received any. HUD reduced the allocations to the other cities and counties so that it could fund all of those that were entitled. (The City’s grant was reduced by $79.) Ms. Laster highlighted the Four-Year Funding History, pointing out when reviewing the applications, it is helpful for the Committee to see how long those agencies have been receiving the funding from Orange; and she explained that there is no problem in granting funds to repeating agencies if they are doing a good job and the City is satisfied with their performance. Ms. Laster pointed out that under “Public Facilities,” there are two figures: $861,396, which would be the balance of funds available after allocating money to Administration and Public Services; and $135,000 of funds rebudgeted for this cycle from unexpended City funds from this current year, giving a total of $996,396 available for Public Facility projects. She noted that the Public Works Department has been advised that because there is a $36,974 shortfall, some Public Works project funding, such as the amount requested for ADA ramps, may be reduced to fund nonprofit agencies in this category, depending on the amount the Committee wants to allocate to Helping Our Mentally Ill Experience Success, Inc., Olive Crest Treatment Centers, Inc., and Paint Your Heart Out. Alternate Committee Member Smith asked if the City used all of its ADA ramp allocations last year. CDBG Minutes January 27, 2010 Page 4 of 4 Aaron Schulze confirmed that the ADA ramp allocations were spent. Ms. Laster highlighted the 15-percent budget cap for Public Services, noting the amount available is $198,784; and stated that if the City programs are funded for the requested amounts, $35,614 would be available for the six nonprofit agencies in this category. She stated that staff is estimating the FY 2010-11 grant based on the current allocation of $1,325,225, and in addition to that, the City will re-budget $135,000 from current year unexpended funds. She reiterated that all the figures are estimates, anticipating by the middle of February, HUD should notify the City of the actual grant amount. Committee Member Manning asked where the unexpended funds came from. Ms. Laster noted that these unexpended funds remain from a few of the nonprofit agencies’ projects and City’s projects that were completed under budget. Committee Member Rico asked if those funds stay in the same category it came from. Ms. Laster explained that extra funds may impact the budget caps used for Public Services and Administration; and, therefore, unexpended funds can only be rebudgeted for Public Facilities projects. Ms. Laster stated that the next Committee meeting will be Wednesday, February 10th; that the Committee will make its decisions at the March 3rd meeting; and that the public hearing before City Council will be on April 13th. Committee Member Tunstall advised that because he will be out of the country, he will not be able to attend the Committee’s March 3rd meeting. VII. PUBLIC COMMENT None. VIII. ADJOURNMENT At 7:20 P.M. the meeting was formally adjourned.