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HomeMy WebLinkAboutCC AG PKT 2012-01-23 #IDATE: January 23, 2012 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Mark H. Persico, AICP, Director of Development Services SUMMARY OF REQUEST: BACKGROUND: AGENDA STAFF REPORT Agenda Item 1 SUBJECT: PUBLIC HEARING - TO CONSIDER ADOPTION OF RESOLUTION NO. 6216 AUTHORIZING PARTICIPATION IN HOUSING AND COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) YEAR 2012 -2013 GRANT APPLICATION FOR LEISURE WORLD Adopt Resolution No. 6216 authorizing the City's participation in the Housing and Community Development Program of the County of Orange, Program Year 2012- 2013 for Leisure World bathroom improvements. Authorize the City Manager to execute all necessary application materials, and to take all appropriate actions to comply with the application submittal and review process. As a non - entitlement city (population less than 50,000), the City of Seal Beach receives HUD funding called Community Development Block Grant (CDBG) funding through a contractual agreement with the County of Orange. The County's Housing and Community Development Department (HCD) applies to HUD for CDBG funding, then divides the funding among its subrecipients: the non - entitlement cities; unincorporated areas; and, non - profit organizations eligible for funding. Since the 1990 census results, the City has had an increasingly hard time proposing home improvement programs /projects that qualify for CDBG funding. To be eligible, the majority of benefactors of a project must be of low or moderate income, unless a project deals specifically with certain classes of people, such as persons with physical handicaps. In 2005 the City applied for and received its first CDBG funding for the Leisure World Bathroom Accessibility Program. Qualified residents of Leisure World are below 80% of the area median income. The CDBG funds are considered a grant to the resident and used to pay for the tub /shower accessibility improvements. Specifically, the side wall of the tub is cut -down to just 4" and the shower is refinished; including skid - resistance flooring, grab bars if needed, and a new glass shower enclosure. If needed, the standard toilets are replaced with high- boy toilets as well. The applicant's doctor verifies that the work is needed to improve the resident's accessibility and /or reduce pain. There certainly is a large demand for this work within Leisure World due to the fact that a high percentage of housing units have tub /showers that require the residents to step up and over a tub wall. The CDBG funding from this program improves safety, improves access to hygiene needs and reduces pain of the residents within Leisure World. Since 2005, 518 residents of Leisure World have had their bathrooms made more assessible. A waiting list exists of residents hoping that future funding will allow them to complete their bathroom upgrades. In order to comply with federal regulations, the County of Orange and HUD require the City's application process to include a public hearing and formally adopt a resolution authorizing the submission of the application. FISCAL IMPACT: If this project is recommended by the City, it will then be considered and may be selected by the County of Orange for funding under the Federal Community Development Block Grant program. Funding should become available during the fiscal year 2012 -2013. The application process by the County indicates that projects with some type of matching funding stands a better chance of being approved. Accordingly, the project application includes a match of $60,000 of Redevelopment Agency funds for program and contract administration, an amount consistent with previous year program activities for the Leisure World Bathroom Accessibility program. Staff believes that this would be considered an eligible "administrative expense" under Page 2 Total Completed Projects CDBG Grant Funding Contract No. 1: FY 2005 -2006 71 $146,056 Contract No. 2: FY 2006 -2007 96 $207,155 Contract No. 3: FY 2007 -2008 98 $200,000 Contract No. 4: FY 2008 -2009 80 $200,000 Contract No. 5: FY 2009 -2010 90 $200,000 Contract No. 6: FY 2010 -2011 83 $196,599 Contract No. 7: FY 2011 -2012 Currently Underway GRAND TOTAL SUMMARY 518 $1,149,810 to the resident and used to pay for the tub /shower accessibility improvements. Specifically, the side wall of the tub is cut -down to just 4" and the shower is refinished; including skid - resistance flooring, grab bars if needed, and a new glass shower enclosure. If needed, the standard toilets are replaced with high- boy toilets as well. The applicant's doctor verifies that the work is needed to improve the resident's accessibility and /or reduce pain. There certainly is a large demand for this work within Leisure World due to the fact that a high percentage of housing units have tub /showers that require the residents to step up and over a tub wall. The CDBG funding from this program improves safety, improves access to hygiene needs and reduces pain of the residents within Leisure World. Since 2005, 518 residents of Leisure World have had their bathrooms made more assessible. A waiting list exists of residents hoping that future funding will allow them to complete their bathroom upgrades. In order to comply with federal regulations, the County of Orange and HUD require the City's application process to include a public hearing and formally adopt a resolution authorizing the submission of the application. FISCAL IMPACT: If this project is recommended by the City, it will then be considered and may be selected by the County of Orange for funding under the Federal Community Development Block Grant program. Funding should become available during the fiscal year 2012 -2013. The application process by the County indicates that projects with some type of matching funding stands a better chance of being approved. Accordingly, the project application includes a match of $60,000 of Redevelopment Agency funds for program and contract administration, an amount consistent with previous year program activities for the Leisure World Bathroom Accessibility program. Staff believes that this would be considered an eligible "administrative expense" under Page 2 AB 26 and the recent California Supreme Court decision, but there is some risk to the General Fund if it is deemed to be an ineligible expense. Since 2005 the City's affordable housing consultant, CivicStone, has assisted in applying for the grant funds and administering the program as follows: 1. Designed the application and marketing material. 2. Held meetings at Leisure World to explain the program and provide application assistance to individual residents. 3. Answered program inquiries, underwritten all applications for HUD /County audit, prepared contracts, and coordinated with the contractor the work to be performed, and file notices of completion. 4. Prepared files and reimbursement reports to the County. 5. Provided program status reports to the City. 6. Prepared monitoring and compliance reports for the County of Orange. ENVIRONMENTAL IMPACT: This action is not considered a project under the California Environmental Quality Act. No further action is necessary. LEGAL ANALYSIS: The City Attorney has reviewed and concurred with this report. RECOMMENDATION: Adopt Resolution No. 6216 authorizing the City's participation in the Housing and Community Development Program of the County of Orange, Program Year 2012- 2013. Authorize the City Manager to execute all necessary application materials, and to take all appropriate actions to comply with the application submittal and review process. SUBMITTED BY: Mark H. Persico, AICP Director of Development Services Attachments: A. Resolution No. 6216 Page 3 NOTED AND APPROVED: RESOLUTION NUMBER 6216 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE CITY'S PARTICIPATION IN THE HOUSING AND COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM OF THE COUNTY OF ORANGE, PROGRAM YEAR 2012 -2013 RECITALS A. It is the intent of the City of Seal Beach to participate in the filing of an application with the County of Orange for a grant authorized under the Housing and Community Development Act of 1974; and B. The Housing and Community Development Act of 1974 authorizes cities under 50,000 in population to enter into cooperative agreements with the county in which they are located for the purpose of undertaking essential community development activities; and C. The Federal govemment requires participating cities to provide certifications that the funds will be obtained and utilized pursuant to Federal law and policy. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The City Council approves the following project to be included in the City's grant proposal: Leisure World Bathroom Accessibility Program: $200,000 Census Tracts 995.09 and 995.10 encompass Leisure World, and the tracts are approved for inclusion in a proposed bathroom accessibility assistance program with CDBG for fiscal years 2012 -2013 through 2015 -2016 in the amount of $200,000 per year. The requested funding level is consistent with the previously approved funding by the County of Orange and is in accordance with the County guidelines. Section 2. The City Council hereby authorizes up to $60,000 in Redevelopment Agency funds to be used for administration and oversight of this project. Section 3. The City Council of the City of Seal Beach does hereby adopt the Housing and Community Development Block Grant Proposal and Certifications for funding cycle 2012 -2013. Section 4. The City Council authorizes the City Manager to execute all necessary application materials, and to take all appropriate actions to comply with the application submittal and review process. (Intentionally Left Blank) Resolution Number 6216 PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 23rd day of January , 2012 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6216 on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 23rd day of January , 2012. City Clerk Mayor