1996-1015_ORANGE, COUNTY OF_D5_Agenda Report AG NDA ITEM October 15, 1996
TO: George Scarborough, City Manager
FROM: Thomas Tomlinson, Planning Director
SUBJECT: Community Development Block Grant (CDBG) Program Contracts: Year 22
Application (FY 1996-1997).
RECOMMENDATION
By Motion, authorize the City Manager to execute the Year 22 Community Development
Block Grant Contracts for two separate programs (Housing Rehabilitation and Youth
Scholarships for fiscal year 1996-1997).
SITUATION
A. APPLICANT
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, California, 92675
B. SUMMARY AND RECOMMENDATION
On October 17, 1995 the City Council considered programs recommended by the Citizen
Participation Committee (CPP). As a result, programs that were recommended for funding
included: mobile home rehabilitation, public services scholarships, and single-family/mobile
home rehabilitation. The total recommended funding request was $510,000. In May of this
year, the City received confirmation that the County of Orange was granting $75,000 for
rehabilitation programs and $7,000 for the youth scholarship program. In addition, the City
has also been granted $75,000 of HOME funds that have been programmed for the City's
First Time Homebuyer Program. At this time, staff is awaiting the contract for this latter
program allocation. Once it is received, an item will be transmitted for Council consideration.
In order to receive these funds, the City is required to enter into an executed contract for
administration of the programs. Staff has reviewed the contracts and recommends that the
City Council authorize the City Manager to execute the contracts on behalf of the City. Upon
execution of these contracts by both parties, the funds will be released for program
implementation.
FOR CITY COUNCIL AG ci�
� Z)5
•
AGENDA ITEM -2- October 15, 1996
C. BACKGROUND
Each year the Federal Department of Housing and Urban Development (HUD) offers funds
to Cities and non-profit agencies in the form of"Community Development Block Grants"
otherwise known as CDBG/HOME monies. There are two categories of programs funded
which include: community services related programs and rehabilitation/construction
programs. While the list of eligible activities for these funds is extensive, the focus in the past
few years has been toward funding programs which benefit very low and low income
households. HUD's income criteria for determining if a households falls into the very low
and/or low income bracket is calculated based on the median income for the County which
is $59,100 gross income for a household of four. In order to qualify for very low income a
household can earn only 50% of the median income. To qualify as a low income household
earnings must be less than 80% of the median income.
Because the City of San Juan Capistrano has a population of less than 50,000 it does not
directly apply to HUD for the funds, but rather applies to the County of Orange for funds
which they will receive and distribute in mid 1996 among the smaller cities and non-profit
agencies in the County. These contracts represent the final year of our participation with the
County. The City will in the coming grant cycle be making application directly to the State
as part of their "Small Cities" program.
D. PROJECT DESCRIPTION:
1. Mobile Home Rehabilitation: $75,000
Grants of up to $10,000 for low/moderate income households are provided to correct
Health and Safety Code violations on the interiors and exteriors of mobile homes. If
an owner who receives assistance sells the coach within two years of the completion
of the rehabilitation, he/she is obligated to re-pay a percentage of the rehabilitation
cost. Because mobile homes provide housing to a significant number of retired senior
citizens, the majority of the owners of the City's 1,218 mobile homes qualify as
eligible for this program. The objective of the mobile home rehabilitation program is
to correct outstanding Health and Safety violations which plague a majority of the
City's mobile homes and which the owners lack the funds to correct on their own.
Typical repairs include: re-coating roofs; replacing galvanized pipes with copper
piping, termite damaged steps and porches, replacing old pads and piers, replacing
inoperable faucets, replacing broken windows, providing safety grab bars in
bathrooms, etc.
Note: This program has been ongoing since FY 1986-1987 (Year 13) and is
available for very low and low income residents of the City's seven mobile
home parks. Currently grant work is averaging approximately$3,500-$4,500
• •
AGENDA ITEM -3- October 15, 1996
per unit. This past year the City has processed and completed 39 mobile
home rehabilitations. It is anticipated that approximately 15 to 18
rehabilitations can be completed with these grant funds. Currently, the City
has an active waiting list of 30+ applications for grant assistance.
2. HOME Program: First Time Homebuyer Program $75,000
These funds are designed to further supplement the initial phase of the program
currently having been implemented this last spring. These funds will be increase by a
required 25%local match from the Community Redevelopment Agency housing set-
aside fund.
Note: Staff is awaiting this contract. Amount has been authorized and program
approval was granted by the County Board of Supervisors on September 10,
1996 It is anticipated that this level of funding will assist 5 to 8 low income
households to purchase their first residence. This is a loan and not a grant
program with a payback provision upon sale of the assisted unit. Said funds
will then be used to assist other households.
3. CDBG: Public Services $7,000
Community Services Scholarship Assistance Program:
The City's Community Services Department offers a variety of youth development
programs, such as sport leagues, after school programs, and enrichment classes (using
CDBG funding) for children of very low and low income households. These
programs are preventative programs to provide positive social and recreational
opportunities aimed to enhance self esteem of children of low and very low income
households. The 1990 Census shows that there are over 2,676 very low and low
income households living the City. The Community Services Department provides
these scholarships to assist children, whose families are not financially able, to
participate in such programs. This represent the third year of funding of this program.
Staff notes that the California Parks and Recreation Society and the State Senate
Office of Research has identified the need for subsidized after school youth
development programs for youths between the ages of 5 to 18. Because funding
applications are divided and reviewed in two separate categories by the County(i.e.
community services and rehabilitation/construction) allocation of these funds did not
affect the level of CDBG funding for mobile home rehabilitations.
Note: The $7,000 granted for this program which should provide scholarships for
up to 55 children, ages 5-18, over this year to attend a variety of Community
Services programs targeted to meet their specific needs.
AGENDA ITEM -4- October 15, 1996
E. STAFF ANALYSIS- Staff has reviewed the individual contracts and determined that they
are consistent with the provisions of our cooperative agreement with the County of Orange
and would recommend that the City Council authorize their execution for receipt of funding.
,OMMISSION/BOARD REVIEW AND RECOMMENDATIONS
None.
FINANCIAL CONSIDERATIONS
The City has received grants in the amount of$162,000 in CDBG/HOME funds. Administrative costs
for running the various grant programs are funded by the Community Redevelopment Agency
housing set-aside funds. No General Fund expenditures are necessary as part of the recommended
programs.
PUBLIC NOTIFICATION
None required. The item before the City Council is authorization to receive the grant funds. The
actual grant application was part of a formal public participation process that included public hearing
before both the Planning Commission and City Council.
ALTERNATE ACTIONS
1. Authorize execution of contracts to receive Year 22 CDBG410ME funds.
2. Continue the item and direct staff to return with further information on specified issues.
RECOMMENDATION
By Motion, authorize the City Manager to execute the Year 22 Community Development
Block Grant Contracts for two separate programs (Housing Rehabilitation and Youth
Scholarships for fiscal year 1996-1997).
Respectfully submitted,
Thomas Tomlinson
Planning Director
AGENDA ITEM -5- October 15, 1996
Attachments:
1. Contract No. EC41972, Housing Rehabilitation Program
2. Contract No. EC41974, Youth Scholarship Program
Note: Contracts provided in the City Council packets only. Copies available for
public viewing in the Office of the City Clerk.
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(c:Awp60AapAcdbg22 cc)
• • MICHAEL M.RUANE
DIRECTOR, EMA
4 U N T V O F DHONGCHAI PUSAVAT
2 DIRECTOR OF HOUSING AND
1 REDEVELOPMENT
6 3 A N G E LOCATION:
1770 NORTH BROADWAY
SANTA ANA,CALIFORNIA 92706
TELEPHONE:
ENVIRONMENTAL MANAGEMENT AGENCY (714)480-2900
JLI LILI `� UU LILJ UL FAX: (714)480-2803
HOUSING AND REDEVELOPMENT
October 31, 1996
Cheryl Johnson FILE
City Clerk
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92677
RE: Community Development Block Grant(CDBG) -Year XXH
Dear Ms. Johnson:
Transmitted, herewith,are the Community Development Block Grant contracts for
FY 1996-97 with the City of San Juan Capistrano executed by the Director of Housing and
Redevelopment per Board of Supervisors Resolution No. 96-230. Enclosed are:
EC41972 $75,000
EC41974 $ 7,000
Please sign the signature page so that it is an official document. The three (3)other
signature pages were signed.
If I can be of further service,please contact me at (714)480-2882.
Sincerely,
Michael Chiaramonte
HPS-Grant Management
Enclosures
cc: J. Hambuch, Chief, HPS-GM
• • �zL�r c �
EMA-HOUSING AND REDEVELOPMENT
Authorized Signature Form
1 . Name: City of San Juan Capistrano
32400 Paseo Adelanto
Address: San Juan Capistrano, CA 92675
2. Si u es of In viduals Authorized to Sign Contracts
George Scarborough, City Manager
3. Signa r ofividua ( Auth ize to Request CDBG/HOME, etc. Funds for
Reimburseme t
Cynthia Pendleton, Administrative
Only one signature required on Services Dir ctor 10/15/96
Request for Payment ��C��
Typed Name, Signature, and Date Typed Name, Signature, and Date
Typed Name, Signature, and Date Typed Name, Signature, and Date
4. I certify that the signatures above are 5. Approved: (County Use)
of the individuals authorized to draw
Request for Payment for the cited
pr gr
to nd gna e of C' y Date and Signature of H/CD
Admi istrative Officer Geo ge Scarborough Branch Officer
10/1 /96
INSTRUCTIONS:
1. Complete name and address as City requires for proper identification of Depository
Account.
2. Complete name and address of City individual authorized by City Council to execute
Agreements/Contracts for CDBG, HOMES, etc. Please attach Council action/authority.
3. Type name of each authorized signer with original signature(s).
4. City Administrative Officer is to sign; if same officer signs under Item 3, Chief Executive
Officer should sign.
5. County Use.
• MICHAEL M.RUANE
^ DIRECTOR.EMA
d NTY O F DHONGTOR OF O IN A AT
AND DIRECTOR OF HOUSING AND
2I REDEVELOPMENT
l ILOCATION:
5 3
1770 NORTH BROADWAY
SANTA ANA,CALIFORNIA 92706
TELEPHONE:
ENVIRONMENTAL MANAGEMENT AGENCY (714)480-2900
^ FAX: (714)480-2803
HOUSING AND REDEVELOPMENT
LJ
September 9, 1996
FILE
Tom Tomlinson
Director Of Planning
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92677
RE: Community Development Block Grant (CDBG) -Year=1
Dear Mr. Tomlinson:
Transmitted, herewith, are the Community Development Block Grant contracts for FY
1996-97 with the City of San Juan Capistrano for approval by the City Attorney,
execution by its Mayor and attested by the City Clerk. Included are:
EC41972 $75,000
EC41974 $ 7,000
Due to time restraints and staff reduction, Exhibit 'B'will be provided upon request.
Please do I&fill in date on first page of contract Thank you.
Enclosed is the Authorized Suture form. Please complete and return to me.
If I can be of further assistance, please contact me at 480-2882.
Sincerely yours, \
Michael Chiaramonte
HPS-Grant Management
Enclosures
cc: J. Hambuch, Section Chief, HPS/GM