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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. TT:ml (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