HomeMy WebLinkAboutStaff Report 4.B 12/05/2005f • .
`. CITY OF PETALUMA, CALIFORNIA
AGENDA BILL
December 5, 205
Wgenda Title: Resolution Amending the 2005-2006 Community Meeting Date: December 5, 2005
evelopment Block . Grant (,CDBG). Action Plan 'to Include
Unanticipated Additional Revenue
Meeting Time: 0 3:Oo PM
❑ 7:00 PM
Cateeory (check one`: ❑ Consent Calendar ❑ Public Hearing, ® New Business
❑ Unfinished Business ❑ Presentation
Department: Director: , Contact. Person: Phone Number:
CDD/Housing Mike Moor ; Bonne a ler 778-4484 (Direct Line)
Cost.of Proposal: $285,126 (Additional Revenue) - Account Number:
Fund 2.110
Amount Budgeted: None Name of Fund:
CDBG
Attachments to Agenda Packet'Item'
Exhibit #1 Letter of Request from Petaluma Ecumenical, Properties
Exhibit #2 Draft Resolution
41timmary Statement: In April 2005, they City Council. allocated the City's annual Community
Development Block Grant funding in the amount of $401,966 to various community-based nonprofit
agencies. Staff then submitted the annual Action Plan to: the U.S. Department of Housing and Urban
Development (HUD) for their -approval. In September, the City's .CDBG fiscal consultant informed us that
an additional $285,126 is available for Council all for FY 2005-06. 'These revenues are available
due to program income earned from !"time homebuyer payoffs and unexpended .funds from previous year
projects and programs. Petaluma's Consolidated Plan states that "any program or project change which
constitutes a modification of IO% of`the annual allocation shall require formal review and approval by the
Council." Included in this report are staff recommendations for the proposed allocation of the additional
resources for Council consideration.
Recommended City Council. Action/Suggested Motion: Adopt .Resolution Amending the 2005-2006
Community Development Block Grant (CDBG) Action Plan to Include Unanticipated Additional Revenue
eviewed *Admin. Svcs. -,.Dir,.;
Mite: i ( fl J� a5
Todav's Date -
November 1, 2005 .
'Reviewed by City Attornev:
Date:
Revision # and Date.Revised:
Approveity Manager:
Date: .
File Code:
200506CDBGexcessrevenue/h/d
�f
CITY OF TETALUMA, CALIFORNIA
DECEMBER 5, 2005
• AGENDA REPORT
FOR
Resolution Amending the 2005-2006 Comm unity -Development Block Grant (CDBG) Action Plan to
Include' Unanticipated Additional Revenue
1. EXECUTIVE SUMMARY: In April 2005, the City Council allocated -the City's annual Community
Development Block Grant funding in the:amount of'$401,966 to various community-based nonprofit
agencies. Staff then submitted the annual Action. -Plan, to the'US. Department of Housing and Urban
Development (HUD) for their approval. In September, `the City's. CDBG fiscal consultant informed us
that en additional $285,126 is available for Council allocation for FY 2005-06. These revenues are
availabledue to program income earned.from .1sc time homebuyer payoffs and unexpended funds from
previous year projects and programs. Petaluma's Consolidated Plan states that "any program or project
change which constitutes a modification of 10% of the annual allocation -shall require formal review and
approval by the Council." Included in this report are staff recommendations for the proposed allocation
of the additional resources for Council. consideration.
2. BACKGROUND: Upon learning of the unanticipated windfall,revenue 'in.the CDBG program, staff
conferred with the City Manager, regarding potential funding needs and allocations. The initial proposal
was to recommend to Council that of the total $285,126, Council allocate $185,000 for workforce
0 housing and retain $100;000 for reserves. In the interim, ,staff has: received. a request from Petaluma
Ecumenical Properties (PEP) for $65,000 to remodel their property at 1400 Caulfield Lane to
accommodate two additional units for low-income seniors.. (See Letter of Request, Exhibit 1.)
3. ALTERNATIVES: (1) Staff recommendation to allocate $185,000 for workforce housing; $65,000 to
PEP, and the remainder to reserves. (2) Council may choose to allocate funds to any eligible activity
for low and/or moderate -income residents.
4. FINANCIAL IMPACTS: This unanticipated revenue will obviously have a positive income on the Block
Grant Program in general and the; specific programs which receive the additional funding.
6. OUTCOMES OR PERFORMANCE' MEASUREMENTS THAT WILL IDENTIFY,SUCCESS.OR COMPLETION:
Success will be measured bythe performance outcomes of the recipients of the additional funding. Staff
monitors all programs and projects on a regular'basis.
7. RECOMMENDATION: Adopt the recommended resolution. (See Draft Resolution.)
ogm,/2005 agenda bill
"01 A
Hbus'ing
October 18,:, 2005
Corporate Office EXHIBIT #1
3920. Cypress Drive, Suite B - Petaluma, CA -94954-7603
P , hone: '(707) 762-2336 Fax (707) 762-4657
Email-, pep@pephousing.org - www.pephousing.org
The improvements were made and we showed the house for several months to
154 Wilson Street potential tenants. We'were unable to secure tenants, even after agreeing to rent
Petaluma, CA 94952 the property at 33% helow,market rate to another nonprofit. We contacted
several nonprofit organizations Without success. As a result- we have agreed
rO
that,,thebest use ofthe pproperty is to convert -the house to two senior units.
.231 Wilson Street - P The
Petaluma, CA 94952 cost, ofconvenion is $65,000. This equates to $371per square f6ot for the
conversion.
700-709 Daniel Drive,
Prqject 4eser'iption:
-Petaluma, CA 94954
1400Caulfield. house conversion to two senior apartments for up to 60% of
A.01., Wehave_tried unsuccessfully to rent this house for over a. year. Due to its
location and design (no garage and backyard) and the inability, to,subdivide the
FelelL Ecumenical
Properties dba
PEP Housing
Petaluma Ecuinenical Properties, (PET) is a nonprofit corporation dedicated to 'providing quality
affordable housing, housing support,services and advocacy for the low bicorne community.
Bonne Gaeblerl, Housing Administrator
Ric -hard S. Lieb
City of Petaluma
Senior Apartments,
P.O. Box 61
2-10 Douglas Street
Petaluma, CA, 94953
,Petaluma, CA 94952
Re: - PCDC request, for funding to convert. 1400 Caulfield to two senior
167 Edith Street
apartments,
Petaluma, CA 94952
)Project his - to r, y.:.
Vallejo
579 Val ejo Street
The subject property was used fora number :of years as; PEP?_s, corporate office.
-
Petaluma, CA 94952
Because of the -proximity to Daniel Drive senior hou'sing, our workers
compensation carrier -going to recl i sify all staffResident Managers,
Was as as
significantly increasing the cost -of workers compensation insurance. In June
575 Vallejo Street
2004 the,.corporate, staff moved from, the property and, relocated to 3920 Cypress
Petaluma, CA 94952
Drive in Petaluma:- It was agreed that the former office wo ' u ' Ube rented and the
rent would be used to offset the � $3,000/month rent paid -at .3.920 Cypress Drive.
'When
1uffield Lane
We were
e unable to.rent the'property *as, an office. -we, did secure a
Pe#a,CA 94954
. m
business tenaht, the City of Petaluma would not agree to the use because of
parking and the nature. of the business. Asia result of a year of vacancy, we
306 Mountain View
n2 the house back to aresidd . rice. We
approached the City About converting
Petaluma, CA 94952
submitted an:applicatiowrequesting remaining PCDC, funds in the amount of
$23,000 for Li6.b •S_enior Apartments; be reallocated to 1400 Caulfield
improvements.. Our request was approved. Many of these improvements would
12.7�Lindberg Lane
-
have been necessaryf
or. the proposed 'conversion to'senior -housing.
Petaluma, CA 94954
,
The improvements were made and we showed the house for several months to
154 Wilson Street potential tenants. We'were unable to secure tenants, even after agreeing to rent
Petaluma, CA 94952 the property at 33% helow,market rate to another nonprofit. We contacted
several nonprofit organizations Without success. As a result- we have agreed
rO
that,,thebest use ofthe pproperty is to convert -the house to two senior units.
.231 Wilson Street - P The
Petaluma, CA 94952 cost, ofconvenion is $65,000. This equates to $371per square f6ot for the
conversion.
700-709 Daniel Drive,
Prqject 4eser'iption:
-Petaluma, CA 94954
1400Caulfield. house conversion to two senior apartments for up to 60% of
A.01., Wehave_tried unsuccessfully to rent this house for over a. year. Due to its
location and design (no garage and backyard) and the inability, to,subdivide the
FelelL Ecumenical
Properties dba
PEP Housing
Petaluma Ecuinenical Properties, (PET) is a nonprofit corporation dedicated to 'providing quality
affordable housing, housing support,services and advocacy for the low bicorne community.
lot from our Daniel drive property, the conversion is the best use of this
property:
•
.
Legal existence, and project ownership:
Documentation regarding our nonprofit status and ownership status :of PEP_
Properties has been submitted previously. Please let me know if you need
additional documentation.
Project, budget
We are requesting fundingfor this project in the amount of $;65,00 1 -This bid
.. converts the existing residential house to two units, one which.is handicap
accessible. The units will be rented to'seniors: Detail of the bid is attached.
We would.like to convert the house as soon,as possible with ;possible. occupancy
on January l; 2006.. We are requesting special consideration. (out -of the budget
'of
cycle) our, request.
Thank .you. .
erely,
:.1VMary St , Execttitive Director
PEP Ho g .
1i
EXHIBIT #2
Resolution Amending the 2005-2006 Community Development Block Grant
'(CDBG) Action Plan to Include Unanticipated Additional Revenue
Whereas the City of Petalu ma fun ctions as an "entitlement jurisdiction" under
the U.S. Dept. of :Housing and Urban Development's Community Development
Block Grant program; and.
Whereas, as an entitlement jurisdiction, the City operates within the confines
of a five-year Consolidated Plan and a one-year Action Plan; and
Whereas those documents req.uie that "any program or project change which
constitutes a modification of 10% of the annual allocation shall require formal
review and approval by the Council; and
ereas the Petaluma'Block Grant program has unanticipated program
Income in the amount of $285,126, which_ constitutes 71 % of our annual
allocation;
Therefore Be It Resolved that the City Council hereby allocates the additional
2005-06 revenues to the follow programs/projects;
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