Loading...
HomeMy WebLinkAbout1990-08-01 - AGENDA REPORTS - CDBG (2)CITY OF SANTA CLARITA I N T E R O F F I C E M E M 0 R A N D U M S0:FROnWt Coun rs M: Oamp, ssis City Manager DATE: August 1, 1990 SUBJECT: Community Development Block Grant Program The City. of Santa Clarita participates in the Los Angeles Urban County Community Block Grant (CDBG) Program. As a participating City, Santa Clarita has received a total of $714,267 in CDBG funds for the three-year funding cycle, July 1, 1988 through June 30, 1991. City staff has developed a comprehensive Community Development Block Grant proposal targeted at improving eligible neighborhood areas such as the East Newhall community. East Newhall is the area where initial expenditures of CDBG funds will occur and it is an area most needed of neighborhood improvements. The purpose of the attached report is to outline for City Council the essential components required to begin to improve the East Newhall neighborhood and identify and recommend eligible activities for funding by the Community Development Block Grant program. RECOMMENDATION The City Council to direct staff to proceed with to implement activities outlined in the report and notice a public hearing to take testimony on the City's proposed Community Development Block Grant program for the August 14, 1990, City Council meeting. ATTACHMENT Community Development Block Grant Program Report Agenda Item: 02.E Community Development Block Grant Program Introduction The building and future development of a new City requires the laying of a strong foundation. Likewise, but on a smaller scale, the City's Community Development Block Grant program provides a resource, a building block, to improve the quality of life in neighborhoods. The purpose of this report is to outline for City Council the essential components required to begin to improve the East Newhall neighborhood and identify and recommend eligible activities for funding by the Community Development Block Grant (CDBG). The report contains several sections which include: background, walk through assessment, citizen participation, additional requests, neighborhood improvement program for East Newhall and recommended CDBG activities, conclusion and recommendation. These sections provide the basis for determining the City's CDBG program. Especially important to this report is the information obtained from East Newhall residents, a City staff walk through assessment of East Newhall, and a report for a Neighborhood Improvement Program for East Newhall. It is the intent of City staff that this report provide a working framework for future project activities utilizing the City's Community Development Block Grant. The CDBG program emphasizes a focused comprehensive revitalization effort which begins with the East Newhall community initially and extends to other low and moderate income areas within the City. of Santa Clarita. Background The City of Santa Clarita participates in the Los Angeles Urban County Community Block Grant (CDBG) program. The CDBG 'program was. developedas a funding mechanism of the Federal Housing and Community Development Act of 1974. The primary national objective of this Act 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 CDBG program essentially returns federal tax dollars to a city government to assist in community improvement efforts. The City of Santa Clarita as a participating city has received a total of $714,267 in CDBG funds for the three-year funding cycle, July '1, 1988 through June 30, 1991. By March 31, 1990, the City must spend $226,619 to be in compliance with funding 1 performance requirements. In July of 1991, the City will become an entitlement city through the U. S. Department of Housing and Urban Development (HUD). Provisions of the CDBG program will allow for more local control of funds. The City, with each project activity it undertakes with CDBG funds, will meet one of the program's three broad national objectives: (1) benefit low and moderate income persons; (2) aid in the prevention or elimination of slums or blight; or (3) meet other community development needs having a particular urgency. It's the Intent of the City of Santa Clarita to use its grant money with a community approach, targeted at improving neighborhoods within the City, which are in CDBG' eligible areas. The programs planned will provide the essential revitalization opportunities so needed City improvements will allow its residents, principally persons of low and moderate incomes, to live in safer, more healthful surroundings in the near future. As per direction of City Council, East Newhall is the area where initial expenditures of CDBG funds will occur. It is an area most in need of neighborhood improvements. East Newhall is in Census Tract 9203.11. According to 1980 census data, this area has the highest concentration of low/moderate--income persons within the City. What type of program will best serve the needs of the East Newhall community? City staff engaged in determining the needs of the area by conducting an assessment of the area and obtaining input directly from the residents who live in East Newhall. Walk Through Assessment In determining the needs of the East Newhall area, City staff from each of the City's departments conducted a walk through assessment of the area. Many potential improvements were identified. The succeeding list presents the magnitude of opportunities for neighborhood improvements. - planting and replacement of trees, especially on sidewalk cut-outs where they are missing; - medians, especially on San Fernando Road and Fourth Street; - drainage systems proposed as a result of the drainage study; - roadway improvements (re -surfacing, overlay, slurry, striping); 2 parkway improvements (curb, gutter, sidewalk, landscaping); - beautification program/railroad landscape buffer and screen; proactive code enforcement to address overcrowding conditions; neighborhood clean up program (trash.removal, removal of abandoned cars); housing rehabilitation for substandard property conditions; and commercial screening (For example, a fence can provide a shield to an unattractive storage area of a business.) Citizen Participation The City of Santa Clarita believes in full citizen participation. In completing an assessment of the East Newhall area, the City invited neighborhood residents to attend the East Newhall community meeting. The meeting was held on June 21, 1990, at Santa Clarita Community Services Center in East Newhall. The City held the meeting to inform the community about these federal funds (CDBG) available to improve their neighborhood and to obtain residents' concerns about their community. The meeting was very well attended by both English and Spanish speaking residents. A total of 45 participated in providing City representatives with identified unmet needs requiring attention. Areas of concern were as follows: 1. The neighborhood needs sidewalks, curbs, gutters and 3 street improvements. Example: Race Street. 2. Drainage problems in area. There. is accumulation of water in the community. 3. There is blocking of residents' entryways in the alleys by parked and abandoned automobiles. 4. Besides abandoned vehicles, there are abandoned stoves, couches, and other articles in the neighborhood, in the alleyways, and also in the creek. 5. Alleyways are not paved, which creates lots of dust. 6. Apartment owners do not provide sufficient trash bins for tenants. 3 7. There are serious overcrowding problems in residences. Tenants will rent out rooms to other persons as a means to afford the cost of living. 9. There is a lack of low income housing. Rents are high. 10. Construction and gardening companies dump their waste in the area. 11. Residents want a park in the East Newhall area. 12. Residents want additional police patrol in the neighborhood, especially during weekend evenings and on Friday and Saturday, preferably the assignment of bilingual deputies. 13. There is no neighborhood watch program for the area. It was tried in the past but was unsuccessful. 14. Cars speed through alleyways. Residents want speed bumps placed in alleyways to curtail speeding traffic. 15. Residents want code enforcement efforts to bring residences, especially apartments, up to current building codes and make them safer environments in which to live. 16. Residents want recreational opportunities for older children, 16 and over, such as serving as coaches for younger children. 17. There are no low interest loan programs available to make improvements on homeowners' homes. When residents were asked to prioritize these issues, the consensus was that a major clean up program was necessary, followed by the need for infrastructure improvements. It is also critical to address and relieve the overcrowding problem. Increasing police patrol was also very important, especially with bilingual officers. Once the assessment was complete, the next step was to develop a plan of action based on prioritizing needs of East Newhall and matching available CDBG funds. In doing so, the City of Santa Clarita received assistance from the County of Los Angeles, Community Development Commission (CDC). The City was aided by John Mongeon's expertise who developed at no cost to the City, a housing rehabilitation plan. Housing rehabilitation involves the repairs or improvements made to an owner -occupied property that enable it to meet local minimum housing and building codes. For example, conditions which are hazardous and a nuisance to the health and safety of the occupant, as well as the community, can be corrected. For example, repairs and improvements could include electrical, plumbing, heating and structural elements, as well as yard and general maintenance. 9 This technical assistance effort provided the City with an excellent strategy for a neighborhood improvement program. The City utilized the basic framework of this strategy for its own program. The report is included as Attachment 1. The Community Development Block Grant funds can be used to provide financial assistance for eligible public services. In the past, several community-based organizations have been recipients of CDBG funds from the County of Los Angeles. Additional Reauests The City has been requested by the County of Los.Angeles to continue funding the Santa Clarita Valley Senior Center and Chamber of Commerce Handyworker program. The Santa Clarita Valley Senior Center provides support services to low and moderate income seniors who are at risk of being institutionalized and need assistance in finding the most suitable, supportive services or alternative living environments. The Chamber of Commerce Handyworker Program provides minor home repairs to eligible low and moderate income households. It also provides meaningful job training opportunities for area residents. Continued funding of this quality program will avoid disruption of valuable services to the Santa Clarita Valley. The City of Santa Clarita recently approved Los Angeles County Community Development Commission to use $60,028 of the City's allocation to fund the Chamber of Commerce Handyworker Program and $21,325 to fund the Santa Clarita Senior Services Center for a six month period. The City of.Santa Clarita has also previously funded the Santa Clarita Valley Community Services Center. Conclusion City staff has developed a comprehensive neighborhood program. The succeeding outline represents an action plan and recommends the funding of specific project activities. This plan begins to address the many community needs of the Newhall area, utilizing the City's available total CDBG funds of $714,267. It is in no way complete. It does, however, provide the essential building blocks to begin enhancing the quality of life for East Newhall area residents. 61 Community Development Block Grant Recommended Funded Project Activities Total Budget: $714,267 Activity General Administration of CDBG Program, FY 1989-90 Expenditure Budgeted Amount Timeline $ 1,861 6/30/90. Drainage Study $ 15,000 8/30/90 (Carry over to FY 1990-91) Curbs, gutters, sidewalks drainage improvements based on drainage study recom- mendation (carry over to FY 1990-91) $ 216,000 3/1/91 Canyon Country $ 60,028 6/30/91 Chamber of Commerce (remaining 6 month funding) Santa Clarita Valley $ 29,325 6/30/91 Senior Service Center (remaining 6 month.funding) Santa Clarita Valley $ 45,000 6/30/91 Service Center Canyon Country $ 100,000 6/30/91 Chamber of Commerce Handyworker program (Supplemental for expansion of program) General Administration of $ 32,386 6/30/91 CDBG program, FY 1990-91 3 Neighborhood Improvement Program Activity• Housing Stock Sample Survey Clean-up Promotion Planting and Re -planting of Trees Paint Up Rebate Program $200/person, 45 participants Housing Rehabilitation loans $15,000 average loan/person, 4 participants Public Works Project Improvements Contingency Total Recommended Project Activities Expenditure Subtotal: 7 Budueted Amount Exnenditure $ 9,000 $ 60,000 $ 109,000 $ 713,600 .12/1/90 6/30/91 6/30/91 Timelines $ 11000 10/1/90 $ 20,000 12/1/90 $ 5,000 12/1/90 $ 10,000 4/1/91 $ 9,000 $ 60,000 $ 109,000 $ 713,600 .12/1/90 6/30/91 6/30/91 Comprehensive Rehab Services 3036 Nichols Canyon Road Los Angeles, CA 90046 (213) 876-8187 TO: Raquel Garcia Administrative Assistant City of Santa.Clarita FROM: John Mongeon, Ph.D. Consultant Comprehensive Rehab Services Attachment #1 RE: Developing A Neighborhood Improvement Program for Housing Rehabilitation Based upon our discussions on Tuesday, May 22nd, this report suggests the outline of a Neighborhood Improvement Program to be created for the East Newhall neighborhood (census tract 9203.11) using funds allocated from the federal Community Development Block Grant (CDBG) Program through the Los Angeles County Community Development Commission. As we discussed, communities have traditionally developed housing rehabilitation programs to achieve one or more of the following public priority objectives: (1) to provide decent, safe and sanitary housing for lower income persons; (2) to preserve the housing stock within a community; or (3) to revitalize neighborhoods. The choice among these possible assessment of community needs and city housing strategy. objectives must be.based upon an Ideally be integrated into an overall Our initial conversations identified a local determination to address the needs of the East Newhall target area with the City of Santa Clarita. The East Newhall target area is located south of Newhall Creek, bounded on the west by market Street, on the east by Park Street, and on the south by San Fernando Road. This neighborhood represents a concentration of lower-income citizens, living in housing stock identified as deteriorating by earlier housing studies (July 1989). Furthermore, even a cursory windshield survey reveals a variety of neighborhood needs such as curbs, gutters, trash removal, and screening from the adjacent commercial areas. This report addresses two critical issues in developing a neighborhood improvement program for the East Newhall Target Area: first, what are the essential components of such a neighborhood improvement effort; and, second, how might the City of Santa Clarita go about design and implementing such a program. 2 ESSENTIAL COMPONENTS OF A NEIGHBORHOOD IMPROVEMENT PROGRAM This description of a neighborhood improvement program assumes a citizens participation effort to ascertain public interest, a staged introduction of program components, staff support and a coordinated marketing and promotional effort. (1) CLEANUP Most neighborhood improvement programs begin with a "beautification" effort to involve citizens in the removal of debris from the neighborhood. In conjunction with the Public Works Department, the program may publicize the availability of trash dumpsters, use summer youth programs to assist in the clean-up, or use other community resources to raise public awareness of the program and demonstrate government's commitment to the program. (2) PAINT Programs encourage neighborhood residents to improve the looks of their properties by providing small grants for exterior house paint.. These grants are often administered as "rebates," that is the grant is awarded after the occupant has purchased and applied the paint. Some .smaller communities have purchased the paint in bulk and used handyworker crews to apply the paint. (3)FACADE A grant, or perhaps a "forgiveness loan,' usually no larger than $2,500 - $3,000, is available to homeowners for more extensive exterior and grounds improvements to eligible owners. (4) REHAB Communities use deferred payment loans or subsidized bank loans to enable eligible homeowners (and, in some Programs investor -owners) to accomplish more extensive rehabilitation. Most programs stipulate that, at the end of the work, the property must meet a locally -determined standard (such as the HUD Section 8 Housing Quality Standards). The loan limits are set by the program, based upon an assessment of the condition of the housing stock in the neighborhood. (The availability of subsidized bank loans will be dependent on the bank's agreement to underwrite the rehabilitation loan). 3 (5) CODE/RRP Where a significant percentage of investor-owned property exists, and little inducement for repair is evident, communities may choose the "carrot and stick" approach of concentrated code enforcement. on deteriorating investor-owned properties inhabited by lower-income citizens. These communities have also facilitated the provision of subsidies, often from the federal Rental Rehabilitation Programs, to investors to correct the code violations identified. CDBG funds can also be used for this purpose. 1The County of Los Angeles Community Development Commission administers the RRP on a County -wide basis. 0 CREATING A NEIGHBORHOOD IMPROVEMENT PROGRAM The key to a successful neighborhood improvement program, once the local government has decided to "target" a particular area, is tapping into the motivations of the people who live in that neighborhood, and involving them in the design and implementation of the program. (1) Involve the Community Cities developing a neighborhood improvement program have found that taking the time to involve individuals and organizations within the neighborhood can make the difference between "their program' and "our program." Each community has its own cluster of organizations and leaders. Common avenues for reaching neighborhood residents include churches, schools, social organizations, senior centers, other public agencies, recreational organizations and civic groups. Experience suggest that community meetings within the neighborhood, conducted in the appropriate language(s), are more productive in terms of generating involvement. An "ad hoc" citizens' advisory committee, carefully managed, can be an effective resource in making choices about program components. (2) Assess the Condition of the Housing Stock Defining the rehabilitation program elements described above should not be a matter or arbitrary or political choice, but rather result from an assessment of the condition of the housing and the resulting rehabilitation requirements. This housing stock survey should assess a representative sample of the properties within the target neighborhood, identify existing code violations, list deficiencies from given standards and suggest probable costs of rehabilitation (within ranges). This survey may be conducted by a city building inspector, or contracted on a fee-for-service basis with a retired contractor or other qualified individual. This survey may either precede of follow the neighborhood meetings: if a positive relationship is present, then conducting the survey prior to the meetings can bring that data to bear on the citizens' discussions. Other communities have used the meetings to gain consent to the property inspections. 5 131 Set Program Goals Given the resources available for the rehabilitation effort, the local agency needs to set its own criteria for success. For example, one city which created neighborhood target areas of -approximately 150 homes, set its goal as having assisted 50% of the eligible homes within a neighborhood. Setting such goals makes it easier for local governments to use subsequent funding allocations for other neighborhoods or other public priorities. It also provides milestones for measuring progress and making any necessary program adjustments. These goals are often further delineated by program component, e.g. 20 rehabilitation loans, 30 facade improvements, and 75 paint -up participants. 141 Coordinate Efforts with Other Public Services Ideally, a neighborhood improvement program should include the cooperative effort of all involved public agencies, such as public works, parks and recreations, building and safety, and community services. In order to maximize the impact of public dollars, the concentration of tree planting, infrastructure improvements, along with the program components funded through the CDBG rehab program, can ensure the success of a neighborhood - focused effort. Early in the program, such an investment may be critical to proving the good faith of the local government to the citizens of the target area. 151 Determine the Program Components Local knowledge is the prime determinant in designing the specific components of a neighborhood improvement program for housing rehabilitation. A citizens' advisory committee. along with experienced community officials, can be invaluable in deciding what types of assistance to offer, and how that assistance should be promoted within the neighborhood. Most communities have chosen to phase-in the program elements described on the previous pages, beginning with trash removal and paint programs, and hopefully creating up a more receptive climate to more significant levels of rehabilitation. Successful rehabilitation programs in smaller communities are careful to minimize the "red tape,, within their administrative processes. The program components outlined above do not require complicated approval Processes or loan packaging efforts. Such an effort should be easily managed by a professional coordinator, with specialized technical services, e.g. inspections and construction oversight, acquired on a fee-for-service basis. Many communities have found that the activities described above have already created the demand necessary to implement the housing rehabilitation program. It may be necessary, however, to supplement the neighborhood involvement activities with flyers, door- to-door canvassing (in the evenings and on weekends) and other promotional efforts acceptable to the.residents of your target area. Most rehab programs. have found that . marketing is an ongoing activity. Local governments which have chosen to concentrate resources in a target area often have to recognize the issues of community need in other areas, as well as. the general public call for fairness in resource allocation. Many localities, therefore, continue to offer "emergency" rehabilitation servies to lower-income persons on a city-wide basis. To avoid dilution. of effort, however, those. services are usually limited to handyworker or emergency repair grant programs. In creating a neighborhood improvement effort, then, local governments often create a five or even ten-year plan which stipulates the target areas to be addressed in later program years. These decisions are, of course, grounded in an assessment of need and the creation of a persuasive rationale for providing rehabilitation services. These decisions are also, and perhaps optimally, based upon the development of an overall housing strategy. This document will identify the city's intention -to ensure an adequate supply of standard housing to meet the needs of Its current and anticipated population within the next, say, ten to twenty years.