CC 2018-11-13_10a PP_Preliminary CDBG Funding for Year 2019CONSIDERATION OF PRELIMINARY APPROVAL OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS FOR YEAR 2019
11/15/2018
Good evening Mr. Mayor and Members of the Council. I’m Matthew Downing and I am your Planning Manager. I am happy to be here this evening to discuss the preliminary allocations of CDBG
funding for Year 2019, having taken over administration of this program following the retirement of Associate Planner Kelly Heffernon in June. CDBG is a federal program administered
by the Department of Housing and Urban Development that provides local governments with financial resources to address a wide range of community development needs, such as affordable
housing, social services, job creation, and public facility improvements. The County of San Luis Obispo administers the program for our area, and allocations are made on a formula basis.
All of the cities in the County, with the exception of Grover Beach, participate in the CDBG Entitlement Program and receive funds annually. Grover Beach competes for funds separately
through the State CDBG Program, which is highly competitive and has strict eligibility requirements.
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Background
CDBG is a federal program that distributes funds to participating cities and counties
Allocation of CDBG funds can be made for a variety of projects as long as one (1) of the following National Objectives are met:
Benefit low- and moderate-income persons;
Aid in the prevention or elimination of slums or blight; or
Address urgent community development needs that pose a serious or immediate threat to public health or welfare
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The main objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunity. CDBG Funds must be
used for activities that meet one of the National Objectives listed here.
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CDBG Requirements
No less than 70% of each year’s allotment be used for projects or programs that benefit low income persons
30% cap for projects that “eliminate blight”
Limits on types of projects or programs that may be undertaken
15% cap for “public services” projects
Restrictions against funds paying for projects/programs already initiated
CDBG-funded projects be completed in a timely manner
Comply with federal environmental laws (NEPA), labor laws (prevailing wages), and procurement regulations
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2019 Grant
The County has estimated that $79,560 in CDBG funds will be available to the City in the fall of 2019 (little more than 4% increase from 2018)
County will help City administer the program
Funds divided into 6 categories
Public Services
Public Facilities
Economic Development
Area Benefit
Housing Rehabilitation; and
Administration
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This next program year, it is estimated that $79,560 will be available to the City starting in the fall of 2019, which reflects a 4% increase from last year. However, recent funding
remains considerably less that what the City received between Years 2001 and 2011, which averaged to $112,000. Similar to last year, the County will help the City administer the program.
CDBG funds are divided into 6 categories, which include:
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Public Services Category
Capped at 15%, or $11,934 for Year 2019
City created the Jim Guthrie Community Service Grant Program in 2014 due to cumbersome CDBG process for small social service non-profit agencies
5Cities Homeless Coalition (5CHC) application - $7,500 for a program that provides subsistence payments for eviction prevention and security deposits
Recommended to fund 5CHC application this final year, direct staff to focus CDBG funds back toward public facilities
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The allocation of funds for Public Services is caped at 15%, or $11,934 for Year 2019. In previous years, the request for public service funds greatly exceeded what was available. However,
due to stricter CDBG regulations and the unique funding opportunity offered through the Jim Guthrie Community Service Grant Program, the City has not received many applications in recent
years for CDBG funds under this category.
This year, the City received one application from the 5Cities Homeless Coalition in the amount of $7,500 for a program that provides subsistence payments for eviction prevention and
security deposits to help prevent homelessness. The Coalition also requested $37,000 in funds from the County and $5,500 from the City of Pismo Beach. The Coalition ran a similar program
last year and the believe it was successful and want to package CDBG funding from multiple jurisdictions to continue the program. Staff reached out to the Coalition to remind them of
the Council’s previous direction regarding CDBG and Jim Guthrie funds and it is recommended that while the Council allocate the requested funds this year, your Council also direct staff
to focus CDBG funds back toward public facilities in future years.
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Public Facilities Category
No funding cap for Public Facilities
City priority has been to address ADA accessibility deficiencies
Recommended $56,148 be allocated for curb ramps on Castillo Del Mar extension and curb ramps in the vicinity of Ocean View Elementary
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In 2014, when the City created the Community Service Grant Program, it was decided that CDBG funds would be allocated specifically to City projects that remove architectural barriers
to improve disabled accessibility. Previously approved project include curb ramp installations at mid-block crosswalks, Woman’s Club ADA improvements, and improving Accessibility at
the Soto Sports Complex.
This program year, it is recommended that funding for City ADA projects be allocated to curb ramps on the Castillo Del Mar extension project, as well as curb ramps and crossings in the
vicinity of Ocean View Elementary
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Administration
Capped at 20%, or $15,912 for Year 2019
Count Administrative costs = $10,343 (per City/County Cooperation Agreement)
City Administrative costs = $5,569
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Regarding Administration, staff recommends allocating $10,343 to the County for its administrative costs per the City and County Cooperation Agreement. The City is allowed to use up
to $5,569 for its administrative costs. Due to time and personnel resources needed to administer the CDBG program for the City, it is recommended that that balance be allocated to cover
City administration.
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Other Funding Categories
Economic Development – No Cap – No applications
Area Benefit – 30% Cap ($22,860) – No applications
Housing Rehabilitation – No Cap – No applications
Year 2018 – Family Care Network, Inc. $58,000
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The final three categories of funding, Economic Development, Area Benefit, and housing rehabilitation, did not receive funding applications so not allocations are recommended.
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Here we have the final recommended allocations for Year 2019. I will note that the 2018 allocations are the corrected allocations, as the 2018 allocations indicated in Table 1 of the
staff report were based on the 2018 preliminary numbers, not the final allocations. I do apologize for that inaccuracy in the report.
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Recommendation
It is recommended that the City Council provide preliminary approval of proposed projects to be funded with the City’s allocation of CDBG funds for Year 2019
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