HomeMy WebLinkAbout2000-03-14 - AGENDA REPORTS - HUD CDBG AWARDS (2)CITY OF SANTA CLARITA
AGENDA REPORT
City Manager
Item to be presented by
CONSENT CALENDAR
DATE: March 14, 2000
SUBJECT: HUD COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG)
AWARDS 2000-2001
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
The City Council accept the FY 2000-2001 estimated CDBG allocation of $931,000 and
appropriate the funds as follows:
1. $136,650 (15%) to the grant recipients as listed below:
Carousel Ranch
$12,500
Single Mother's Outreach
$19,550
Sheriff STARR
$18,000
Senior Center
$48,000
County Service Center $10,000
Special Olympics $10,000
Dental Health Foundation $ 6,200
Samuel Dixon $15,000
2. $186,200 (20%) for administration, monitoring, and fair housing services.
3. $461,100 (65%) for CDBG eligible capital projects, which include 108 debt service,
Handyworker Program ($221,000), the Child and Family Center ($50,000), and the
City's affordable housing services, HOME ($144,150).
BACKGROUND
Staff is in the process of writing the 2000-2001 CDBG Annual Plan. The above
recommendation is one part of the Plan. This is the second year staff has used a formal
application process rating applicants' proposals by City Council adopted rating criteria.
Community members and partners were made aware of the funding availability through
newspaper ads and direct mailers. An application workshop was held, and 20 people,
representing 11 non-profit organizations, attended.
The general intent of CDBG Entitlement funds are to benefit low- and moderate -income
persons by building HUD -eligible projects, pursuant to a community's needs, as identified
in its HUD -approved Consolidated Plan. HUD places spending caps on the amount of
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HUD — CDBG AWARDS 2000-2001
March 14, 2000 — Page 2
dollars a City may spend for administration and service programs (twenty and fifteen
percent, respectively). The City may choose to spend 100% of its CDBG dollars on capital
projects but must spend at least 65 percent.
The 2000-2001 funding allocation from HUD is projected to be slightly down ($5,000) from
the previous year, but the number of grant applications have increased. The City estimates
it will receive a total of $931,000 in the coming year and that I real 0, or a Ci is available
for service programs. The City received service applications, totaling $323,445. This is a
difference of $183,795. The process of selecting and funding applications for service
programs was conducted by a four -member panel, representing several City departments.
In summary, there were 11 service applications. Three are not recommended for funding,
and all, with the exception of the Santa Clarita Committee on Aging and the Dental Health
Foundation, received lower amounts than requested. One organization not funded in the
past received funding (SCV Special Olympics) for FY 2000-2001.
As stated above, the City estimates it will receive $931,000. Of this, $605,150 must be used
for capital projects. Seventy-six percent of the $605,150, or $461,000, is obligated to Section
108 loan payments, the City's Handyworker Program, and the Child and Family Center. In
1998, the Council approved giving the Center $50,000 a year for the next five years to help
build a new facility. FY 2000-2001 represents the third year of that agreement. This
means that for FY 2000-2001, $144,150 is available for new projects. The City did receive
two applications for capital funding, totaling $331,000. One is from the Santa Clarita
Valley Community Development Corporation (SCVCDC) for $266,000 for improvements to
City -owned property, and the other from the Association to Assist Victims of Domestic
Violence (AAVDV) for $75,000, to help purchase a permanent location. These requests have
not been included in the above recommendation. Since a sight for the homeless shelter has
not been determined, and the AAVDV has not spent their FY 1999-2000 funds, staff
recommends programming the balance for the available $144,150 for FY 2000-2001 capital
projects to affordable housing. This would continue to keep capital funds available for
housing needs and allow the City to meet its HUD submission deadline.
FISCAL IMPACT
There is no fiscal impact to the general fund and fully obligates the City's 2000-2001 CDBG
Entitlement estimated allocation of $931,000.
ALTERNATIVES
1. Not accept the CDBG Funds from HUD.
2. Fund different organizations, and change funding recommendations.
3. Not fund any organization, and spend allocation on eligible City infrastructure projects.
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