TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DIRECTOR OF PUBLIC WORKS
DATE: DECEMBER 21, 2004
SUBJECT: PROPOSED 2005-2006 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
Staff Coordinator: Judy A. Huey, Senior Administrative Analyst
RECOMMENDATIONS
1. Conduct a public hearing to receive citizen input on the proposed 2005-2006 Community Development Block Grant (CDBG) Program.
2. Approve the proposed CDBG projects and budget.
3. Authorize the Director of Public Works to execute agreements for CDBG projects with the Los Angeles County Community Development Commission.
BACKGROUND
Each year, Community Development Block Grant (CDBG) funds are allocated to cities by the federal Department of Housing and Urban Development (HUD) which is administered through the Los Angeles Community Development Commission (CDC). Participating cities receive funding based upon the total number of cities participating in the County’s program, and a city’s commitment to provide housing, economic and community development opportunities which principally benefit persons of low and moderate income levels and/or aid in the prevention or elimination of blighted conditions.
The City of Rancho Palos Verdes has annually participated in the Los Angeles Urban County’s CDBG Program since 1986. Typically the City uses its CDBG allocation to fund the Home Improvement Program, the REACH Program for developmentally disabled youth and young adults, Americans with Disability Act (ADA) projects and qualifying capital improvement projects. In order to continue its participation in the upcoming 2005-2006 program year (beginning July 1, 2005 through June 30, 2006) the City of Rancho Palos Verdes must prepare and submit a summary of proposed CDBG projects, including descriptions and budgets, to the Los Angeles County Community Development Commission (CDC) by February 4, 2005 for review and approval.
Pursuant to federal requirements, this public hearing was noticed in the Palos Verdes Peninsula News on November 27, 2004 and December 4, 2004. A copy of the notice is attached to this staff report. Federal requirements also mandate that as a part of the hearing, the City Council and public be informed of the range of eligible and ineligible housing and community development activities that may be funded under the CDBG Program. A list of eligible and ineligible CDBG projects and activities are attached to this report as Exhibits A and B, respectively.
In addition, interested persons may review a copy of the federal eligibility guidelines at the City of Rancho Palos Verdes’ Public Works Department.
DISCUSSION
Description of Proposed 2005-2006 CDBG Projects
The Los Angeles County CDC recently informed the City of Rancho Palos Verdes that the preliminary 2005-2006 CDBG allocation for the City is $214,623. In addition, $10,000 is available from the Unallocated Balance of Funds for 2005-2006 CDBG projects. It is recommended that the City Council approve the following proposed projects for the 2005-2006 program year:
1. CDBG Administration and Planning $ 21,462
Program administration funds are used for overall program
management, coordination, monitoring, reporting and evaluation
to meet CDC guidelines.
2. REACH Program $ 32,193
Funds will be used to continue operation of this program for
developmentally disabled students and young adults. A copy
of the REACH Program Statement and Description is attached.
The public service cap (which is a percentage of the new allocated
funds not including prior years’ funds) is limited to 15%.
3. Home Improvement Program $ 150,000
This program has been providing housing rehabilitation assistance
to low and moderate income homeowners since its inception in
in 1999. A copy of the Home Improvement Program brochure
is attached.
4. ADA Compliance-City Hall Project $ 20,968
Funds will be programmed for a future project to remove access barriers at City Hall in accordance with the Americans with Disablities Act, (ADA). It is expected that the total cost for this project will be approximately $40,000 and that it will be accomplished in FY 06 – 07. Funds will pay for design, engineering and construction costs for new walkways.
_________
Total FY 05-06 CDBG Funds: $ 224,623
In the event that actual CDBG funding levels vary from the $224,623 estimate, the proposed projects and budgets may be adjusted accordingly.
FISCAL IMPACT
Approving staff’s recommendation authorizes the allocation of $224,623 in 2005-2006 CDBG funds.
Respectfully submitted,
Dean Allison
Director of Public Works
Reviewed,
Les Evans
City Manager
Attachments:
Public Hearing Notice
Exhibit "A" – Eligible Activities
Exhibit "B" – Ineligible Activities
REACH Program Statement and Description
Home Improvement Program Brochure
CITY OF RANCHO PALOS VERDES
PUBLIC HEARING NOTICE
DECEMBER 21, 2004
2005-2006 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
NOTICE IS HEREBY GIVEN that the City Council of the City of Rancho Palos Verdes will conduct a Public Hearing to receive citizen input on projects to be submitted to the U.S. Department of Housing and Urban Development (HUD) for funding through the Community Development Block Grant (CDBG) Program. Projects discussed at the meeting, which are determined to be eligible under the Federal Guidelines, will be considered for inclusion in the City's 2005-2006 CDBG Program. The recommended projects and proposed budget will be considered at the public hearing. The City's 2005-2006 CDBG projects and budgets will be submitted to the County of Los Angeles Community Development Commission for inclusion in its application to HUD. All interested citizens are encouraged to attend. Persons attending the meeting shall be furnished with the following information: 1) The amount of CDBG funds expected to be available to the City for the upcoming program year; 2) The range of housing and community development activities that may be undertaken with CDBG funds; and 3) The specific activities that are currently funded under the CDBG Program
Said public hearing will be held on December 21, 2004 at 7:00 p.m., in the City Council Chambers of Hesse Park, located at 29301 Hawthorne Boulevard.
Interested parties wishing to comment on these proposed projects are invited to submit any written comments and/or questions to Judy Huey, Senior Administrative Analyst, Public Works Department, City of Rancho Palos Verdes, CA 90275, or may visit the public counter, Monday through Thursday, 7:30 a.m. to 5:30 p.m. and Fridays, 7:30 a.m. to 4:30 p.m.
Publish on November 27, 2004 and December 4, 2004
Exhibit "A"
ELIGIBLE ACTIVITIES
Community Development Block Grant (CDBG) funds may only be used for projects and activities that meet one of the following national objectives of the program:
- Benefiting low and moderate income persons; or
- Preventing or eliminating slums or blights; or
- Meeting a particularly urgent community development need.
IF ANY OF THE ABOVE CONDITIONS ARE MET, under current guidelines, the City of Rancho Palos Verdes may use CDBG funds for a variety of activities including:
- Acquisition of Real Property
- Disposition of Real Property
- Public Facilities and Improvements
- Acquisition, Reconstruction, Rehabilitation or Installation of Privately-Owned Utilities
- Clearance, Demolition, Removal or Building and Improvements, or Movement of
- Public Services
- Interim Assistance
- Relocation Payments and Assistance
- Loss of Rental Income
- Removal of Architectural Barriers
- Housing Rehabilitation
- New Housing Construction
- Code Enforcement
- Historic Preservation
- Commercial or Industrial Rehabilitation
- Special Economic Development
- Special Activities by Neighborhood-Based Nonprofit Organizations, Small Business Investment Companies, or Local Development Corporations
- Planning and Capacity Building
- Program Administration Costs
Example: Acquisition of land, air rights, easements, water rights, rights-of-ways,
building and other real property improvements.
Example: Disposition of real property acquired with CDBG funds through sale,
lease or donation including fees and costs associated with the transfer of
ownership of real property.
Example: Parking, streets, curbs, gutters and sidewalks, parks and playgrounds,
shelters for the homeless, water and sewer facilities, flood and drainage
improvements, community, senior and health centers.
Example: Pay the costs of placing underground new or existing power lines owned
by private utilities.
Structure to Other Sites
Example: Demolition of vacant structure and removal of the debris to make a
neighborhood park and playground available to residents in a low/moderate income
neighborhood.
Example: Child care, health care, job training, recreation programs, education programs,
public safety services, fair housing activities, services for senior citizens, services
for homeless persons, drug abuse counseling and treatment, and energy conservation
counseling and testing.
Example: Improvements to a deteriorating area as a prelude to permanent improvements
or alleviation of harmful conditions where immediate public action is necessary.
Example: Relocation and payments to displaced individuals, families, businesses,
or nonprofit organizations that result from the acquisition of property for CDBG-assisted
purposes.
Example: Loss of rental income incurred in holding housing units used for the
relocation of individuals and families displaced by CDBG-assisted activities.
Example: Installation of ramps, curb cuts, wider doors, elevators, and physical
modification to buildings, facilities and improvements to make them accessible.
Example: Financial assistance such as grants and deferred loans for the rehabilitation
of any publicly or privately-owned residential property.
Example: Funding for housing construction project that has received funding
through a Housing Development Grant (HODAG), or housing to be constructed
by a local development corporation, small business investment company, or
neighborhood-based nonprofit organization.
Example: Inspections in a low/moderate income neighborhood targeted for
rehabilitation assistance, a neighborhood facility and street reconstruction.
Example: Rehabilitation, preservation and restoration of historic properties.
Example: Improvements to the exterior of the building and the correction of
code violations.
Example: Loans to pay for the expansion of a commercial business which will
create jobs for low/moderate income persons, or technical assistance to a
business facing bankruptcy.
Example: Provide grants or loans to carry out a neighborhood revitalization,
community economic development or energy conservation program.
Example: Comprehensive plans, individual project plans, community development
plans, studies, analysis and data gathering.
Example: Payment of costs for overall program management.
Exhibit "B"
INELIGIBLE ACTIVITIES
Activities and projects that are ineligible for CDBG funding include:
- Buildings or portions thereof, used for the general conduct of government.
- General government expenses.
- Political activities.
- Purchase of equipment, unless otherwise required for program.
- Operating and maintenance expenses.
- New housing construction, except housing of last resort for persons displaced due to a CDBG project, housing to be funded through a Housing Development Grant (HODAG), or housing to be constructed by a local development corporation, small business investment company, or neighborhood-based nonprofit organization.
7. Income payments to an individual or family for items such as food, clothing, housing or utilities.