|
Back to Calendar
Return
|
| |
3.
|
| Finance Committee |
|
|
|
| Subject: |
| Approval of the Applications for Participation in the Community Development Block Grant Program (CDBG) for Fiscal Years 2023-24, 2024-25 and 2025-26 |
| RECOMMENDATION |
Staff recommends that the Finance Committee take the following actions:
- Recommend that the City Council approve the Housing Rehabilitation Program and Public Facilities & Improvements applications for participation in the Community Development Block Grant Program (CDBG) through the County of Orange, for Fiscal Years 2023-24, 2024-25 and 2025-26.
|
| BACKGROUND/DISCUSSION |
The Federal Housing and Community Development Block Grant Program (CDBG) was established under legislation passed by Congress in 1974 to provide housing and other assistance for low-income persons. It is funded by the Federal Department of Housing and Urban Development (HUD) and administered by the County of Orange for cities under 50,000 in population.
The City has been very successful in receiving CDBG grants to implement:
- Single-Family Residential Rehabilitation Program;
- Alley improvements identified in the Neighborhood Enhancement Plan; and
- Capital improvements to Pioneer Hall and the Senior Center.
Project eligibility is limited as the County only funds what is deemed "high priority projects," including addressing homelessness, housing rehabilitation, alley improvements, senior centers, and Americans with Disabilities Act (ADA) improvements.
The City has received CDBG funding annually for the past 48 years for housing rehabilitation of single-family homes owned by low-income residents. Qualified homeowners must meet federally prescribed requirements to participate in the Program. Many neighborhoods in Brea have been enhanced throughout the years with a goal to improve approximately ten homes annually.
The historic buildings used for the Senior Center and Pioneer Hall have routinely been improved using CDBG Public Facilities & Improvement (PF&I) funding, including updating restrooms, adding a covered patio, making parking lot and sidewalk accessibility enhancements, and in 2020 completing necessary upgrades to the kitchen facility, totaling $550,000 in improvements.
The County released the Fiscal Years 2023-24, 2024-25 and 2025-26 CDBG application package on November 9, 2022 and required that completed applications be submitted by December 16, 2022. Given the relative short application window, and in an effort for the City to continue to receive CDBG funds, staff has already submitted a completed application to the County of Orange. The County requires a Council resolution in order for Brea's applications to be considered in the competitive process.
The Public Hearing scheduled for January 17, 2023 is being conducted to conform to HUD and County requirements to give the public an opportunity to participate in the application process. At the conclusion of the Public Hearing, the Council will be asked to approve by resolution the City's participation in the CDBG grant programs detailed below:
Housing Rehabilitation Program
The application for Fiscal Years 2023-24 and 2024-25 would be dedicated to single-family rehabilitation in the form of loans used to correct health, safety and building code violations. The majority of the funds received would be utilized for single-family home loans and mobile home grants. The remaining funds would be used for program delivery expenses to perform inspections of the project sites, contract document preparation, and coordinating contractors/construction. The recipients of the loans and grants must be low-income households, which is defined as earning 80% or less of the County median income. The requested grant amount for years one and two is $180,000. The third year (2025-26) would be dedicated to a potential multi-family rehabilitation project. The requested grant amount for year three is $200,000.
Public Facilities and Improvements
The previous CDBG grant cycle funded a Senior Center Feasibility Study which is currently in progress. Staff intends for future CDBG applications to be geared towards implementing recommended improvements coming from this document, which is anticipated to be completed sometime in Summer 2023. At this time, the current application for Fiscal Year 2023-24 proposes the following improvements to the Brea Senior Center’s central courtyard located between the Senior Center and Pioneer Hall:
- Fencing in the courtyard for safety and improved accessibility throughout the facility;
- Leveling out the lawn area to expand the courtyard’s footprint;
- Installing a storage shed for case management items; and
- Repaving the alley for a van to access the case management storage shed.
This area is heavily used for travel between the two buildings, outdoor fitness programs, and special events or programs focused on education or socialization.
Staff is currently working on the CDBG-funded project for the current fiscal year (2022-23) which is to complete a Feasibility Study for the Senior Center campus. This project is expected to be completed in Summer 2023. Should higher priority items be proposed following the completion of the Feasibility Study, staff will work with the County of Orange to adjust the scope for the FY 2023-24 project.
As part of the County's requirements, the resolution proposed for adoption authorizes the Mayor, or his/her designee, to execute for and on behalf of the City of Brea, the necessary agreements and/or any other documents or instruments required for participation in the Urban Counties Program for acceptance of the CDBG funds under Bid No. 012-23010523-NC. |
| SUMMARY/FISCAL IMPACT |
The City of Brea applies annually to the County of Orange for Federal Community Development Block Grant (CDBG) funding in order to provide low-income single-family rehabilitation loans and grants to qualified Brea homeowners. Additionally, the City typically applies for funding in the Public Facilities and Improvements component of the Program. Eligible uses of this funding include senior centers, projects addressing homelessness, or projects addressing accessibility in low-income areas.
The CDBG application for the Single-Family Housing Rehabilitation Program is a multi-year application (Fiscal Years 2023-24, 2024-25 and 2025-26). $180,000 is being requested in years one and two for single-family housing rehabilitation, where no match is required, and $200,000 for a multi-family housing rehabilitation project in year three. Staff implementing the Program is paid from the Housing Successor Fund. Thus, there is no negative fiscal impact to the General Fund.
The CDBG application for Public Facilities and Improvements is a single-year application (Fiscal Year 2023-24) and is requesting $150,00, with no match required. There will be no impact to the General Fund. |
| RESPECTFULLY SUBMITTED |
William Gallardo, City Manager
Prepared by: Marie Dao, Community Development Management Analyst and
Jennifer Colacion, Community Services Management Analyst
Concurrence: Jason Killebrew, Community Development Director and
Chris Emeterio, Assistant City Manager/Community Services Director |
|
|
|