SR - AGR-3218.O - 2014-15 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMAGENDA ITEM
. April 8, 2014
LINTY
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
City Manager
FROM: Rick Otto
Interim Communi opment Director
ReviewedNerified By:
City Manager
Finance Dire for
To Be Presented By: M
Ellen Laster
Cons Calendar _
City Mgr Rpts
Council Reports _
Legal Affairs
Boards /Cmtes X
Public Hearings
Admin Reports
Plan/Environ
1. SUBJECT
FY 2014 -15 Community Development Block Grant (CDBG) Program
2. SUMMARY
The City receives annual CDBG allocations from the U.S. Department of Housing and Urban
Development (HUD). Staff has conducted the FY 2014 -15 CDBG funding process in
conjunction with the CDBG Program Committee. The City's FY 2014 -15 CDBG allocation will
be $1,155,956, and the Committee's funding recommendations are provided on Attachment 1 for
Council consideration.
3. RECOMMENDATION
1. Approve the funding recommendations of the CDBG Program Committee for the City's
FY 2014 -15 CDBG Program.
2. Authorize staff to request and receive its FY 2014 -15 CDBG entitlement from HUD.
3. Authorize the City Manager or his designee to execute FY 2014 -15 Memoranda of
Understanding with City Departments, Subrecipient Agreements with nonprofit agencies,
and all related CDBG Program documents.
4. FISCAL IMPACT
Sufficient funds will be granted by HUD and appropriated to the 310 Fund (CDBG Program)
during the budget process.
5. STRATEGIC PLAN GOAL(S)
Goal 3: Enhance and promote the quality of life in the community.
Strategy e: Develop and strengthen collaborative partnerships to enhance quality of life
programs, projects, and services.
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6. GENERAL PLAN IMPLEMENTATION
Infrastructure Goal 3.0: Ensure adequate maintenance of public rights -of -way to enhance public
safety and improve circulation.
Policy 3.1: Continue to maintain and repair sidewalks and pavement surfaces on public rights -
of -way.
7. DISCUSSION and BACKGROUND
The City is entitled to receive annual CDBG allocations from HUD for activities that primarily
benefit Low and Moderate Income residents. During the past several years, these funds have
been allocated for a variety of projects and programs including street, sewer, and storm drain
improvements; handicapped accessibility improvements; after - school and counseling programs;
community outreach and policing; and transitional housing and supportive services.
Staff began the FY 2014 -15 CDBG funding process in November 2013 by publicizing the
availability of funds and notifying nonprofit agencies on the interest list. Outreach efforts
included advertising in the Orange City News and placing a reader board notice on Time Warner
Cable Channel 3. Attachment 2 provides a summary of the nonprofit agency funding process.
In November and December 2013, meetings were held to provide technical guidance to interested
applicants including City Departments and nonprofit agencies. The City Manager subsequently
reviewed City Department requests to ensure that proposed projects and programs would be
considered for funding on a priority basis.
During January and February 2014, the CDBG Program Committee met to review all funding
requests and to hear presentations from applicants. On March 5, 2014, the Committee held a
public hearing to discuss proposed programs and projects, consider public comments, and make
funding recommendations.
The Committee considered requests from nonprofit agencies based upon the proposed benefit to
Low and Moderate Income Orange residents, the agencies' demonstrated experience in carrying
out the proposed activities, and the amount of funding available. In addition, the Committee
considered whether proposed programs and projects would address the priorities of the City's
Five -Year Consolidated Plan. The Committee also used the Four -Year Funding Allocation
History (Attachment 3) as a tool in the decision - making process.
The City's FY 2014 -15 CDBG entitlement allocation will be $1,155,956. The City's CDBG
Program covers three categories: Administration including the Fair Housing Program, Public
Facilities /Improvements/Rehabilitation, and Public Services. Attachment 1 lists the Committee's
line item recommendations. Staff concurs with all of the recommendations, a summary of which
follows.
Administration
The total allocation in the Administration category, which is subject to a 20 percent budget cap,
is $231,191. The Fair Housing Foundation (FHF) and the Orange County Fair Housing Council,
Inc. (OCFHC) submitted funding requests to provide the City's Fair Housing Program.
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FHF and OCFHC requested $24,522 and $22,500, respectively. The Committee reviewed both
agencies' funding requests and supplemental material, heard proposal presentations, and weighed
the merits of the proposed services.
The City currently contracts with FHF to provide its FY 2013 -14 Fair Housing Program, and
staff has been very satisfied with the agency's performance, outreach efforts, and on -site
meetings with Orange tenants and landlords. The CDBG Program Committee is recommending
that FHF be funded for the requested amount of $24,522 to provide the City's FY 2014 -15 Fair
Housing Program, and that $206,669 be allocated for the City's administration of the CDBG
Program.
Public Facilities /Imi)rovements/Rehabilitation
The amount available in this category is $751,372. A total of $904,890 has been requested for 12
projects: $850,854 by the City's Public Works Department and $54,036 by four nonprofit
agencies. The amount requested exceeds the amount available by $153,518. The Committee is
recommending that the total available amount of $751,372 be allocated as follows: $697,336 for
the eight proposed Public Works projects and $54,036 for the four proposed nonprofit agencies'
projects. This allocation would allow 11 of the proposed projects to be funded in full, and the
ADA Wheelchair Access Ramps to receive a CDBG allocation of $96,482. The total cost of the
ramps project is $250,000, and the Public Works Department has indicated that the $153,518
balance could be covered by Gas Tax funds.
Public Services
The total allocation in the Public Services category, which is subject to a 15 percent budget cap, is
$173,393. A total of $184,170 was requested under this category: $143,170 by two City departments
and $41,000 by six nonprofit agencies. The amount requested exceeds the amount available by
$10,777. The Committee is recommending the following allocations:
City Departments
Allocation
Nonprofit Agencies
Allocation
Total
After - School Programs
S 43,170
Assistance League
$ 6,000
Bike Team
100,000
Friendly Center
10,000
Mari osa Women & Family Center
6,723
Women's Transitional Living Center
7,500
Total
$ 143,170
Total
$ 30,223
$ 173,393
Given the funding constraints and having considered the programs proposed by Consumer Credit
Counseling Service of Orange County and Family Promise of Orange County, Inc., the
Committee is recommending that these two agencies not receive FY 2014 -15 CDBG funding.
Council authorization is requested to enable the City to administer its FY 2014 -15 CDBG Program.
This would include considering the Committee's funding recommendations for the City's
FY 2014 -15 CDBG Program. If approved, a total of $84,259 would be allocated to nonprofit
agencies for Public Facilities /Improvements/Rehabilitation projects and Public Services programs.
8. ATTACHMENTS
• Attachment 1 (FY 2014 -15 CDBG Program Committee Funding Recommendations)
• Attachment 2 (FY 2014 -15 CDBG Program Nonprofit Agency Funding Process)
• Attachment 3 (Four -Year CDBG Funding Allocation History)
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