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Item 13 - Allocation of Additional Funding for 21st Yr CDBG Program AGENDA REPORT SUMMARY ~ TO: Honorable Mayor and Members of the City Council £ROM: James L. Bowersox, City Manager INITIATED BY: John D. Fitch, Assistant City Manager~~ Warren H. Shafer, Director of Redevelopmfnt Services ~S.~p~ David Narevsky, Redevelopment Manager ~x.~ Kris Gridley, Redevelopment Coordinator~ DATE: March 7, 1995 SUBJECT: Allocation of Additional Funding for the Twenty-First Year (Fiscal 1995- 96) Community Development Block Grant Program The City of Poway receives an annual allocation of Community Development Block Grant (CDBG) funds from the United States Department of Housing and Urban Development {HUD}. The final estimate of Poway's Twenty-First Year Grant is $32,250 more than the original estimate which was provided to the City in August 1994. This report discusses how the additional funding should be allocated. ENVIRQNMENTALREVIEW County of San Diego staff and City of Poway staff have previously completed the environmental review for Poway's Twenty-First Year CDBG projects. As it is recommended that funding be allocated to projects which were previously approved, no additional environmental review is necessary. FISCAL IMPACT It is anticipated that the City of Poway will receive a total allocation of $281,672 in 21st Year CDBG funding. Following County Board of Supervisor approval for the 21st Year Program, staff will bring forward a separate report to appropriate operating funds for approved programs until reimbursement is received from the County. ADDITIONAL PUBLIC NOTIFICATIONAND CORRESPONDENCE None. RECOMMENDATION It is recommended that the City Council allocate the additional Twenty-First Year funding to the following projects: 1. MISCELLANEOUS ADA IMPROVEMENTS $8,000 2. CDBG HOUSING REHABILITATION PROGRAM $24,250 ACTION 1 of 4 ~ ? lq9~ IYF_M 15 - AGENDA REPORT CITY OF POWAY This re~ is included on the Consent Calendar. There will be no serrate discussion of the re~ pdor to approval ~ the Ci~ Council untess members of the Council staff or public request it to be removed from the Consent Calendar and discussed separately If you wish to have this re~ pui~ed for discussion, please fill out a st]p indicating the re~ numar and give it to the Ci~ Clerk prior to the becjlnnin§ of ~e Ci~ Council m~tln§. TO: Honorable Mayor and Members of the City Council FRO~: James L. Bowersox, City Manager INITIATED BY: John D. Fitch, Assistant City Manager~~ Warren H. Shafer, Director of Redevelop~ent~,l~l~l Services David Narevsky, Redevelopment Manager~ Kris Gridley, Redevelopment Coordinator ~ DATE: March 7, 1995 SUBJECT: Allocation of Additional Funding for the Twenty-First Year (Fiscal 1995-96) Community Development Block Grant Program BACKGROUND The City of Poway receives an annual allocation of Community Development Block Grant (CDBG) funds from the United States Department of Housing and Urban Development (HUD) via the County of San Diego. On November 29, 1994 the City Council held a hearing to solicit public input regarding the use of Poway's Twenty-First Year funding. At that time, the County had estimated Poway's Twenty-First Year allocation at $249,422. Subsequently, HUD provided the County with their final 1995 CDBG Program entitlement estimate, which was higher than expected. Per the revised estimate, Poway's Twenty-First Year allocation will be $281,672, $32,250 more than originally anticipated. The County has requested that each participating city inform them of their intended use of the additional funds. FINDINGS On November 29, 1994, the following projects were approved to receive funding from the Twenty-First Year Grant and/or to receive reprogrammed, unexpended funds from the Eighteenth Year Grant: 1. AFFORDABLE HOUSING ASSISTANCE AND REFERRAL PROGRAM 2. CDBG HOUSING REHABILITATION PROGRAM 3. PUBLIC STREET ACCESS RAMPS 4. ADA IMPROVEMENT TO TOT LOT AT OLD POWAY PARK 5, ADA IMPROVEMENTS TO POINSETTIA MOBILEHOME PARK RECREATION ROOM 6. MISCELLANEOUS ADA IMPROVEMENTS 7, CONTINGENCY RESERVE ACTION: 2 o~: 4 li~A,l~ 7 1995 I'i'El~l 1~ ' Agenda Report - March 7, 1995 Page 2 Of the projects listed, there are two that need additional funding; the Miscellaneous ADA Improvements and the CDBG Housing Rehabilitation Program. Staff recommends that $8,000 be allocated to the Miscellaneous ADA Improvements and the remaining $24,250 to the CDBG Housing Rehabilitation Program. MISCELLANEOUS ADA IMPROVEMENTS On November 29, 1994, when the Twenty-First Year allocations were approved, we were aware that there would be a need to allocate additional funding to the ADA Transition Plan, but had not identified the specific projects or actual amounts. At that time it was proposed that a total of $20,000 be set aside for Miscellaneous ADA Projects. Following this hearing, staff received more detailed information regarding project costs. At the present time we are in the process of implementing projects scheduled to be completed with Nineteenth Year funding. Several of the Nineteenth Year projects will require additional funding to ensure completion. For example, the lowest bid for the Lake Poway Playground modifications was $15,000 more than originally estimated, improvements to the Community Services offices are anticipated to cost $16,900 more than the amount allocated and the cost of modifications to the Hamburger Factory restrooms are expected to cost $16,000 more than the amount allocated. Some of this shortfall will be accommodated by reprogramming unexpended Eighteenth Year funding, however, according to the most recent estimates, an additional $8,000 {beyond the $20,000 originally allocated) should be reserved to ensure that there will be adequate funding to complete the projects identified in the ADA Transition Plan. CDBG HOUSING REHABILITATION PROGRAM The Redevelopment Agency has identified 28 applicants who will be qualified for the CDBG Housing Rehabilitation Program when funding becomes available. In addition, there are 294 names on the Housing Rehabilitation Program waiting list for applications. Our estimates indicate that the initial $110,070 in funding will only enable the City to approve about 10 loans. An additional $130,000 will become available in the Twenty-First Year funding cycle, however, given the high level of interest in this Program, the available funding will only assist a small percentage of the homeowners who want to participate. It is recommended that the remaining $24,250 from the Twenty- First Year Block Grant be allocated to this Program. ENVIRONMENTAL REVIEW As a requirement of the National Environmental Protection Act {NEPA) and California Environmental Quality Act (CEQA), both County and City staff complete an environmental review for each proposed CDBG project. As staff is recommending that the additional funding be allocated to projects previously approved for funding, the required environmental review has already been completed and no further review is necessary. MAR 7 1995 ITEM 3of 4 Agenda Report March 7, 1995 Page 3 FISCAL IMPACT It is anticipated that the City will receive a total allocation of $281,672 in 21st Year Community Development Block Grant Funding. Because the County of San Diego administers Poway's CDBG allocation, the City receives funding on a reimbursement basis, after providing the County with proof of expenditures. Following County Board of Supervisor approval for the 21st Year Program, staff will bring forward a separate report to appropriate operating funds for approved programs until reimbursement is received from the County. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCF None. RECOMMENDATION It is recommended that the City Council allocate'the additional $32,250 in Twenty-First Year funding to the following projects: 1. MISCELLANEOUS ADA IMPROVEMENTS $8,000 2. CDBG HOUSING REHABILITATION PROGRAM $24,250 4 of 4 MAR ?1995 ITEM