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11.01 CDBG FY 2019-2020 ` oF:o� ti`~�ac�PPo�TF�� ; ��= AGENDA ITEM � :Q 2��u��GP�`�o April 9, 2019 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto, City Manager FROM: William R. Crouch, Community Development Director REVIEW: City Manag r Finance ��✓� 1 . SUBJECT Fiscal Year 2019-2020 Community Development Block Grant and HOME Investment Partnerships Programs. 2. SUMMARY � A request to approve proposed projects for funding under the Community Development Block Grant and HOME Investment Partnerships Programs per the Draft Funding Recommendations from the March 20, 2019 Community Development Block Grant Program Committee. Refer to attachment titled "Fiscal Year 2019-2020 Draft Funding Recommendations" for details. 3. RECOMMENDED ACTION 1. Approve the Draft Funding Recommendations for Fiscal Year 2019-2020. 2. Authorize the City Manager or his designee to execute Fiscal Year 2019-2020 Memoranda of Understanding with city departments; subrecipient agreements with nonprofit agencies, and all related documents. 4. FISCAL IMPACT All projects including administration and implementation are anticipated to be fully funded under the Fiscal Year 2019-2020 Community Development Block Grant program (Fund 310) and HOME Investment Partnerships program (Fund 317). In case of reduced funding, the projects would be amended to only support those projects where funds are available. 5. STRATEGIC PLAN GOALS Goal 3: Enhance and promote the quality of life in the community. e: Develop and strengthen collaborative partnerships to enhance quality of life programs, projects, and services. ITEM� 1 04/09/2019 6. DISCUSSION AND BACKGROUND The City annually receives federal funds from the U.S Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) program and the HOME Investment Partnerships (HOME) program. Below shows the estimated Fiscal Year 2019-2020 (FY20) budget that includes prior year unexpended CDBG funds: CDBG $1,241,949 Prior Year Unex ended CDBG 194,147 HOME 489,648 TOTAL $1,925,744 The City allocates CDBG and HOME funds to eligible projects that address the high priority needs of the community. Eligible projects and programs primarily benefit low and moderate income residents. These projects include street, sewer, and storm drain improvements; handicapped accessibility improvements; after-school and counseling programs; community policing; transitional housing; and supportive services. Staff began the allocation process by issuing the availability of funds in November 2018 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. The City also held four CDBG Program Committee meetings in January, February, and March 2019. These public meetings provided opportunities to collect public input on proposed projects for funding. Staff reviewed proposed projects based on the priorities of the City-approved Five-Year Consolidated Plan (2015-2020) and whether the projects comply with the CDBG program requirements. Since HUD has not notified the City of the actual CDBG and HOME allocations, staff developed the attached Draft Funding Recommendations (Attachment 1) using the Fiscal Year 2018-2019 funding levels. Staff recommended CDBG funds to be distributed as follows: nearly $1 million towards public facilities and capital improvement projects, $186,170 for public services activities, and $248,390 for administration and fair housing activities. On March 20, 2019, the Committee considered Draft Funding Recommendations based upon: 1) the proposed benefit to low and moderate income Orange residents, 2) the demonstrated capacity to carry out the proposed projects, 3) the financial feasibility, and 4) the amount of funding available. The Committee unanimously approved a motion recommending that the City Council approve the FY20 funding recommendations. Due to strict HOME program requirements, staff has not yet identified an eligible project for these funds, but will continue to review incoming requests and propose funding, if applicable. Project options could include construction or rehabilitation of affordable housing projects, or for rental or down payment assistance to low-income families. Staff requests the City Council approve the Draft Funding Recommendations for the FY20. This includes authorizing staff to adjust the allocations if necessary after HUD notifies the City of the actual entitlement funds. 7. ATTACHMENT Attachment 1 - Fiscal Year 2019-2020 Draft Funding Recommendations ITEM 2 04/09/2019 CITY OF QRANGE FISCAL YEAR 2019-2Q20 DRAFT FUNDING RECOMMENDATIONS Proposed FY 2019-2020 budget for projects assuming FY 2018-19 funding level Communit Develo ment Block Grant Pro am Amount Draft PROJECTS/PROGRAMS Requested Recommendations D �I ti ' 4 I�O ►D d Pro ram Administration $223,868 $223,868 Fair Housin Foundation- Oran e Fair Housin Pro ram $24,5 2 2 $24,5 2 2 ADMINISTRATIONAND PLANNING TOTAL (20% CAP) $248,390 $248,390 �. �� ,� , �� m� _ Ci De artments Public Works De artment ADA Wheelchair Access Ram s - Various Locations $250,000 $250,000' Clinton Street Rehabilitation- WalnutAvenue to Palm Avenue $171,083 $172,000 Olive Street Rehabilitation- CulverAvenue to La Vera Avenue $91,476 $99,000 Sacramento Street Rehabilitation- Mt Vernon Avenue to north of Santia o Creek $271,891 $272,000 Shaffer Street Rehabilitation-La Vera Avenue to north of Sanriago Creek $73,786 $96,232 Communit Services De artment Senior Center ductin addition and floorin re lacement $80,000 $100,000 City Departments Facilities/Improvemenr/Rehabilitation Subtotal $938,236 $989,232 Non rofit A encies HomeAid Or e Coun -Family Care CenterSewerRelinin $12,3 04 $12,3 04 Nonprofir Agencies Public Facilities/Im rovemenrs/Rehabilitarion Subrotal $12,304 $12,304 PUBLICFACILITIES/IMPROVENIFNTS/REFIABILITAT70NTOTAL $950,540 $1,001,535 Ci De artments CommunitySe�vices Dept.-After-School Community Programs-EI CaminoReal, Gri'alva &Kille erParks $43,170 $43,170 Police De t.-Bike Team Pro am-Communi -Oriented Poli � $100,000 $100,000 Ci De artments Public Services Subtoial $143,170 $143,170 Non rofit A encies Assistance Lea e of e- eration School Bell $17,000 $21,5 00 Friendl Center,Inc.-Communi Food Or e $12,000 $21,5 00 Non ro ir A encies Public Services Subtotal $29,000 $43,000 PIIBLIC SERVICES TOTAL(IS%CAP) $172,170 $l 86,170 �� ' ADA improvement project includes$55,853 in 2019 CDBG funds plus$194,147 in 2018 CDBG funds. 2 Total CDBG funds includes$1,241,949 in 2019 CDBG funds plus$194,147 in 2018 CDBG funds. N:\CDD\HOUSING\CDBG\2019-20\CC Heazing\Draft Recommendations 3-20-19.doc HOME Investment Partnershi s (HOME) Pro am O+,� `'�TS/ ' , �� °� ,�' a''°ns Pro ram Administration(10% CAP) $48,964 CHDO Allocations (15% CAP) $73,447 Affordable Housin Develo ment $367,237 Grc�� o ut 9 648 N:\CDD\HOUSING\CDBG\2019-20\CC Heazing\Draft Recommendations 3-20-19.doc CITY COUNCIL MINUTES APRIL 9, 2019 8. REPORTS FROM CITY MANAGER 8.1 Joint Exercise of Powers Agreement with the County of Orange and city members to join the Orange County Housing Finance Trust. Resolution No. 11145. (A2100.0; AGR-6759) A Resolution of the City Council of the City of Orange authorizing execution of the Joint Powers Authority agreement for membership in the Orange County Housing Finance Trust. MOTION —Nichols SECOND —Alvarez AYES —Alvaxez, Murphy,Nichols, Monaco Moved to approve Resolution No. 11145 relating to participating in the Orange County Housing Finance Trust,and authorize the Mayor and City Clerk to execute on behalf of the City. 9. LEGAL AFFAIRS—None 10. ITEMS RELATING TO THE SUCCESSOR AGENCY OF THE ORANGE REDEVELOPMENT AGENCY—None 11 PUBLIC HEARING 11.1 Fiscal Year 2019-2020 Community Development Block Grant and HOME Investment Partnerships Programs. (OR1800.0.8.3) Time set for public hearing to consider the FY 2019-2020 projects for funding under the CDBG and HOME programs. The Mayor opened the Public Hearing Public Speakers: Charlotte Vaughn,Assistance League—thanked the CDBG Committee, staff, and Council for supporting the Assistance League; and noted that,if approved,the funds would be used to provide children with school uniforms and supplies. The Mayor closed the Public Hearing. PAGE 10