HomeMy WebLinkAboutStaff Report 5.B 04/06/2015AGENDA ITEM # S.B.
DATE: April 6, 2015
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Sue Castellucci, Housing Coordinator`1(tL,
SUBJECT: Public Hearing to Receive Comments on the 2015-2016 Proposed Action Plan
and Adoption of a Resolution Approving the Community Development Block
Grant Action Plan and Authorizing the City Manager to Sign All Documents
Required by the Department of Housing and Urban Development (HUD).
RECOMMENDATION
It is recommended that the City Council hold a Public Hearing to Receive Comments on the
2015-2016 Proposed Action Plan and Adopt a Resolution Approving the Community
Development Block Grant Action Plan and Authorizing the City Manager to Sign All
Documents Required by the Department of Housing And Urban Development (HUD).
BACKGROUND
The primary objective of the Community Development Block Grant (CDBG) program is the
development of "viable urban communities, by providing decent housing and a suitable living
environment and expanding economic opportunities, principally for persons of low and moderate
income." The City of Petaluma has "entitlement" status under the CDBG program and, as such,
receives an annual allocation of funding for eligible activities.
Requests for finding for projects and programs must address not only the national objectives, but
also the Council's local priorities as outlined in the proposed 2015-2020 Consolidated Plan, the
document required by HUD to serve as a five-year planning tool and as our application for
federal funding. Staff has consolidated the priorities of the 2010-2015 Consolidated Plan into
the proposed 2015-2020 priorities:
2015-2020 Priorities
2010-2015 Priorities
1. Improve housing opportunities by preserving
a Improve accessibility in public facilities and
existing affordable housing
low-income housing for persons w/disability
• Promote programs, which encourage and
implement principles of sustainability
• Promote housing choices and opportunities
2. Provide housing and services to the low income
• Facilitate programs & projects which enhance
populations, including but not limited to, children,
the quality of life for Petaluma's seniors
seniors and special needs population
• Facilitate programs, projects or facilities
which enhance the lives of Petaluma's low and
moderate income youth, particularly those
residing in City -assisted housing.
• Facilities programs and projects for the special
needs population
• Provide programs, projects or facilities which
enhance the community's child care capacity.
3. Increase the supply of affordable housing
• Provide rental units for very low and low-
income residents, particularly those units for
SUPPOrt services
4. Promote housing opportunities for
• Provide homeownership opportunities for low
homeownership
and moderate income residents with an
emphasis on public safety workers, school
personnel, and our minority community
5. Improve accessibility in public facilities and
• Improve accessibility in public facilities and
infrastructure
low-income housing for persons with a
disability.
DISCUSSION
The City's CDBG entitlement is determined by HUD utilizing a formula based on population,
poverty, housing conditions, etc. This year Petaluma's allocation for FY 2015-2016 is $326,163.
Due to the dissolution of the redevelopment agency and the recent "clawback" from the State
Controller's Office, the City now has limited funding options to offer to the nonprofits who
provide vital services and programs to the low income households in Petaluma. The majority of
the community's nonprofit housing and service providers have worked diligently to adapt to this
changing environment by economizing, downsizing, collaborating, and reinventing their
organizations.
As part of the application process, the City of Petaluma agrees to several CDBG certifications as
required by 24 CFR 91.225. These certifications align with the City's policies, such as a Drug -
Free Workplace, Anti -Lobbying, and Affirmatively Further Fair Housing. Our CDBG
subrecipient agreement was just updated to provide that all HUD's regulations and certifications
are passed through to our nonprofit subrecipients.
Therefore, following discussions with the CDBG applicants, the funding recommendations
presented to Council this year are those that realize the best use of finds with the most potential
for leveraging those funds with collaboration of other agencies. Other conditions upon which
staff recommendations are based are: (1) maximize the 20% allowable administration costs to
this program to fund staffing costs due to the overall shortages in other Housing Funds; (2) fund
programs which provide the most basic life support services; (3) fund a minimal number of
subrecipient agreements in order to minimize staff oversight and monitoring responsibilities.
Attachment 92 outlines agency requests and staff recommendations. Each applicant has been
notified of the public hearing and representatives from each agency have been invited to attend,
present information if they wish and be available for questions from Council.
CDBG PROCESS
The Petaluma Block Grant application process consisted of a public notice, application packets
to community agencies and other city departments, and a technical assistance workshop. At that
workshop, staff presented the current fiscal situation. Four applications were received from
nonprofit service providers and the City's Code Enforcement division.
A synopsis of each application is included in Attachment #2. (Complete applications are
available for viewing at the Housing and Block Grant Office, 27 Howard Street.)
There are two statutory restrictions on the funds: (1) there is a 20% cap on expenditures for
program administration; and (2) a 15% cap on expenditures for "public service" activities, i.e.
program or "soft" costs. Program administration expenses include Block Grant staff and support
services, and a share of Petaluna's commitment to the county -wide Continuum of Care program.
Public services are defined as those which "improve the conununity's facilities, such as child
care, health services, drug abuse programs, services to seniors, etc."
2015-2016 Entitlement
Administration Cap
Public Service Cap
$ 326,163
65,232
48,924
With the 15/16 entitlement grant of $326,163 and the balance in the City's account with the
federal government of $27,373, the total amount the City can allocate to the 2015-2016 programs
and projects is $353,536.00.
hn accordance with CDBG regulations, the City of Petaluma will publish its 2015-2016 Action
Plan. Staff will respond to any community questions and comments. The Action Plan will be
submitted to I -IUD by May 15, 2015; funds are available as of July 1, 2015.
FINANCIAL IMPACTS
The Block Grant Program is fiscally self-sustaining. All administrative, project, and program
expenditures are covered by the entitlement revenues. The CDBG grant for FY 2015-2016 is
$326,163.
ATTACIIMENTS
1. Resolution
2. CDBG Proposals for FY 2015-2016
ATTACHMENT
Resolution Approving The Community Development Block Grant 2015
Action Plan And Authorizing The City Manager To Sign All Documents
Required By The Department Of Housing And Urban Development (HUD).
WHEREAS, the City of Petaluma is an entitlement community under the jurisdiction of
the Department of Housing and Urban Development (H[JD) Community Development Block
Grant Program; and
WIIERE,AS, 24 CFR 91.220 requires the City to submit an annual Action Plan which is
comprised of the community's projected use of Block Grant finds to address community needs;
and
WHEREAS, all projects and programs which are proposed for funding address one or
more of the national objectives of the CDBG program and the priorities of the City's 2015-2020
Consolidated Plan; and
WHEREAS, a public hearing was noticed on January 15, 2015 and a public hearing was
conducted on April 6, 2015 to hear comments from the community on the proposed projects and
programs and the City Council found the proposed finding plan to be consistent with the
Consolidated Plan; and
NOW, THEREFORE, BE IT RESOLVED by the Petaluma City Council as follows:
The Action Plan, as attached, is approved and adopted for FY 2015-2016; and
2. The City Manager, or his designee, is directed to publish notice of the City's approval
of the Action Plan.
If no objections to the Action Plan are received by the City on or before May 9,
2015,
a. the City Manager, or his designee, is authorized to submit the Action Plan and
to sign all program documents required by the Department of Housing and
Urban Development, including the certifications required by 24 CPR 91.225;
and
b. Should there be changes in the 2015-2016 entitlement amount, the City Manager
is authorized to increase/decrease each subrecipient's allocation proportionately; and
4. If any objections to the Action Plan are received, the City Manager shall place
this item on agenda on or before May 15, 2015, for the City Council's consideration, prior to
submitting the Action Plan and signing all program documents required by the Department of
Housing and Urban Development.
ATTACHMENT 92
2015-2016 CDBG PROPOSALS
Working in partnership with CDBG applicants, RTP will continue to be the City's main
rehabilitation arm, coordinating suppliers and volunteers to respond to the community's
rehabilitation needs.
SUMMARY OF REQUESTS AND RECOMMENDATIONS
1. The City of Petaluma is allowed a maximum of $65,668 (20% of total grant) to
administer the CDBG program, under the Administrative Cap rule. The administrative finds can
utilized for salaries; supplies; Block Grant's share of intergovernmental transfers; various
consulting agreements, including Petaluma's share of administering the County -wide Continuum
of Care Program. Additionally, the City's Code Enforcement staff has requested funding for the
ongoing operation and continuing education related to the City's code enforcement software
program.
Total Petalumans served: N/A
Staff Recommendation: $47,500
Funds
Funds
Nat'l
Agency
Project Description
Requested
Recommended
Objective
• Intergovernmental
transfers
• Code Enforcement
1
City
Software
$47,500
$47,500
N/A
• Audit
• Continuum of Care
• Staff Admin
Suitable
2
$48,300
$48,300
Living
PPSC
Senior Meals
Environment
Providing
3
Rehabilitation low
$231,692
$231,692
decent
Rebuilding Together
income properties
housing
Providing
4
Rehabilitation oft of its
$56,475
$23,000
decent
PEP Housing
older properties
housing
Suitable
5
Committee on the
$44,500
$0.00
Living
Shelterless
Rehabilitation of MIC
Environment
2015-2016 TOTALS
$428,467
5350,492
Working in partnership with CDBG applicants, RTP will continue to be the City's main
rehabilitation arm, coordinating suppliers and volunteers to respond to the community's
rehabilitation needs.
SUMMARY OF REQUESTS AND RECOMMENDATIONS
1. The City of Petaluma is allowed a maximum of $65,668 (20% of total grant) to
administer the CDBG program, under the Administrative Cap rule. The administrative finds can
utilized for salaries; supplies; Block Grant's share of intergovernmental transfers; various
consulting agreements, including Petaluma's share of administering the County -wide Continuum
of Care Program. Additionally, the City's Code Enforcement staff has requested funding for the
ongoing operation and continuing education related to the City's code enforcement software
program.
Total Petalumans served: N/A
Staff Recommendation: $47,500
2. Petaluma People Services Center (PPSC) has requested $48,300 to continue PPSC's
Home Delivered Meals Program. In PPSC's application, it was projected that $102,830 of other
funds will be used for their Meals on Wheels program to provide this valuable service. Through
the Home Delivered Meals program, which operates every day of the year, hornebound elders
receive a daily hot meal and security check, nutritional assessments, and, when needed,
individualized counseling by a registered dietician. Meals are cooked on weekdays at the PPSC
newly renovated connnercial kitchen, located in the senior Center at 211 Novak Drive. On
weekends PPSC purchases meals prepared by Petaluma Valley hospital. Meals are delivered
seven days a week by caring PPSC volunteers.
Total Meals Delivered: 27,000
Stafi'Recommendation: $48.300
3. Rebuilding Together Petaluma (RTP) requested $231,692 which is what their
allocation was for last fiscal year, to serve as the City's rehabilitation arm. RTP, previously
funded from the PCDC Low -Mod housing set-aside, is in its 19°i year of providing much needed,
free of charge, home repair, home modifications (for disabled persons), and water and energy
efficient services to low and very low income homeowners and renters, as well as repairs and
major maintenance on nonprofit facilities. Because of budget cuts, the City no longer has the
staff capability to responsibly administer many small contracts. RTP will be coordinating with
other nonprofit CDBG applicants to address the rehabilitation requests from our low-income
community. Because they use volunteer workers and donated materials, RTP is able to greatly
leverage CDBG's limited funds.
Total number of persons served: 52 homeowners; 222 low income renters
Staff Recommendation: $231,692
4. PEP Housing requested $56,475 to rehabilitate several of their older properties, which
include, 231 Wilson (painting); 1400 Caulfield Lane duplex (new root) and 1275 Lindberg Lane
(painting'). There is not enough CDBG finds to do all three projects, so staff is recommending to
do the rehabilitation for 231 Wilson and the 1400 Caulfield duplex.
"Total number of persons served: 12-14 persons
Staff Recommendation: $23,000
5. Committee on the Shelterless has requested $44,500 to rehabilitate the Mary Isaak
Center which consists of painting the outside of the building. COTS has been unsuccessful in
raising funds for this project. They have also collaborated with Rebuilding Together Petaluma to
see if there was a way that the building could be painted using RBT's volunteers, but it was
decided that the liability was a major roadblock in getting the painting completed.
Unfortunately, there are no CDBG Funds to do this project.
Total number of persons served: 770 persons
Staff Recommendation: $0.00