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.