RPVCCA_CC_SR_2011_12_06_04_Proposed_2012-2013_CDBG_ProgramPUBLIC HEARING
Date:December 6,2011
Subject:.Proposed 2012-2013 Community Development Block Grant (CDBG)
Program
location:Citywide
1.Declare the Hearing Open:Mayor
2.Report of Notice Given:City Clerk Morreale
3.Staff Report &Recommendation:Senior Administrative Analyst Huey
4.Public Testimony:
Appellant:N/A
Applicant:N/A
5.Council Questions:
6.Rebuttal:N/A
7.Declare Hearing Closed:Mayor
8.Council Deliberation:
9.Council Action:
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CITY OF
MEMORANDUM
~CHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
TOM ODOM,DIRECTOR OF PUBLIC WOR~
DECEMBER 6,2011
PROPOSED 2012-2013 COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG)PROGRAM "
REVIEWED:CAROLYN LEHR,CITY MANAGER QL
Project Manager:Judy A.Huey,Senior Administrative Analyst~
RECOMMENDATION
1)Conduct a public hearing to receive citizen input on the proposed 2012-2013 Community
Development Block Grant (CDBG)Program.
2)Approve the proposed CDBG projects and budget.
3)Authorize the Director of Public Works to execute agreements for CDBG projects with
the Los Angeles County Community Development Commission.
4)Authorize the Director of Public Works to adjust the program budget as necessary to
take into account the final CDBG allocation and any amounts unexpended at the close of
the fiscal year.
BACKGROUND
The City of Rancho Palos Verdes (RPV)has participated in the Los Angeles Urban
County's Community Development Block Grant (CDBG)Program since 1986.The United
States Department of Housing and Urban Development (HUD)established this program to
fund local community development projects which principally benefit persons of low-and
moderate-income levels and/or aid in the prevention or elimination of blighted conditions.
The goal of these projects is to meet the HUD program objectives to provide housing,
economic and community development opportunities.
A public hearing is conducted each year to approve CDBG funded projects for the
upcoming fiscal year that meet the HUD guidelines.
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DISCUSSION
In order to continue its participation in the upcoming program year beginning July 1,2012
through June 30,2013,the City of RPV must prepare and submit a summary of proposed
CDBG projects,including descriptions and budgets,to the Los Angeles County Community
Development Commission (LACDC)by January 31,2012 for review and approval.
Description of Proposed CDBG Projects
For FY 2012-2013,staff is proposing to use its annual CDBG allocation to continue funding
the City's current projects,which are described below.Over the years,the City's practice
has been to allocate its CDBG funds to these long established projects.
•Home Improvement Program (HIP)-This program was established by the City
Council in 1998 to provide funding to homeowners for the preservation of decent,
safe and sanitary housing.Since the inception of the program,92 projects have
been completed through the award of $1 ,047,286 of grants and/or loans to low-and
moderate-income residents.A brochure describing the program in greater detail is
attached.
•Blackhorse Road Americans with Disabilities Act (ADA)Improvements -This
project will upgrade and install ADA compliant facilities at the north east quadrant of
the Hawthorne Blvd at Blackhorse Road intersection.Improvements include the
relocation of existing facilities (Le.,utility boxes,sign posts and signs),construction
of a small retaining wall,modifications of existing traffic control devices,and
construction of access ramps and sidewalks.
•CDBG Administration and Planning -Administrative services are provided by the
City's CDBG consultant for overall program management,which includes
monitoring,reporting and evaluation of CDBG projects for compliance.The
percentage of funds authorized for CDBG administrative costs for cities was recently
reduced from 10%to 7.5%of a City's annual allocation.To offset this reduction,the
LACDC has proposed that administrative costs be charged to each CDBG project.
When the official CDBG Bulletin is issued outlining these changes,the project
budgets may be amended to re-allocate the CDBG Administration project funds.
These projects have been successfully developed and implemented to best serve the
community of Rancho Palos Verdes within the HUD guidelines.For example,projects on
the attached list of CDBG Eligible Activities to build public facilities in RPV are not eligible
for CDBG funding because the City does not have any qualifying neighborhoods of low-
and moderate-income census tracts.To address this issue,the HIP project was developed
to focus on a resident's eligibility,rather than neighborhood areas,to meet the low-and
moderate-income requirements.The ADA accessibility projects are also eligible for CDBG
funding because they meet the objective to remove physical barriers for people with
disabilities.
Proposed FY 2012-2013 CDBG Budget
The LACDC recently informed the City that substantial funding decreases were
implemented at the federal level.As a result,RPV's preliminary 2012-2013 CDBG
allocation will be $137,090,which is a fifteen percent (15%)reduction from last fiscal year's
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allocation.In addition to the annual allocation,the City will program $93,191 of its
accumulated balance of unexpended CDBG funds,for a total program budget of $230,281.
It is recommended that the City Council approve the following proposed projects for the
2012-2013 program year:
1.
2.
3.
Home Improvement Program
Blackhorse Road ADA Improvements
CDBG Administration and Planning
Total FY 2012-2013 CDBG Program Budget:
$150,000
$70,000
$10,281
$230,281
In the event that actual CDBG funding levels vary from the $230,281 preliminary estimate,
the proposed projects and budgets may be adjusted accordingly.
Pursuant to federal requirements,this public hearing was noticed in the Palos Verdes
Peninsula News on November 3,2011.A copy of the notice is attached to this staff report.
Federal requirements also mandate that as a part of the public hearing,the City Council
and public be informed of the range of eligible and ineligible housing and community
development activities that may be funded under the CDBG Program.A list of eligible and
ineligible CDBG projects and activities are attached to this report as Exhibits A and B,
respectively.In addition,interested persons may review a copy of the federal eligibility
guidelines at the City of Rancho Palos Verdes'Public Works Department.
FISCAL IMPACT
Approving staff's recommendations authorizes the allocation of $230,281 in CDBG funds.
Upon approval of the CDBG projects by the Community Development Commission (CDC),
the project budgets will be programmed into the City of Rancho Palos Verdes'FY 2012-
2013 budget.
Attachments:Public Hearing Notice
Exhibit "A"-Eligible Activities
Exhibit "B"-Ineligible Activities
Home Improvement Program Brochure
CDBG Public Hearing -Powerpoint Presentation
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CITY OF RANCHO PALOS VERDES
PUBLIC HEARING NOTICE
DECEMBER 6,2011
2012-2013 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)PROGRAM
NOTICE IS HEREBY GIVEN that the City Council of the City of Rancho Palos Verdes will
conduct a Public Hearing to receive citizen input on projects to be submitted to the U.S.
Department of Housing and Urban Development (HUD)for funding through the Community
Development Block Grant (CDBG)Program.Projects discussed at the meeting,which are
determined to be eligible under the Federal Guidelines,will be considered for inclusion in
the City's 2,012-2013 CDBG Program.The recommended projects and proposed budget
will be considered at the public hearing.The City's 2012-2013 CDBG projects and budgets
will be submitted to the County of Los Angeles Community Development Commission for
inclusion in its application to HUD.All interested citizens are encouraged to attend.
Persons attending the meeting shall be furnished with the following information:1)The
amount of CDBG funds expected to be available to the City for the upcoming program
year; 2)The range of housing and community development activities that may be
undertaken with CDBG funds;and 3)The specific activities that are currently funded under
the CDBG Program
Said public hearing will be held on December 6,2011 at 7:00 p.m.,in the City Council
Chambers of Hesse Park,located at 29301 Hawthorne Boulevard.
Interested parties wishing to comment on these proposed projects are invited to submit any
written comments and/or questions to Judy Huey,Senior Administrative Analyst,Public
Works Department,City of Rancho Palos Verdes,CA 90275,or may visit the public
counter,Monday through Thursday,7:30 a.m.to 5:30 p.m.and Fridays,7:30 a.m.to 4:30
p.m.
Published on November 3,2011
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Exhibit "A"
ELIGIBLE ACTIVITIES
Community Development Block Grant (CDBG)funds may only be used for projects and
activities that meet one of the following national objectives of the program:
•Benefiting low and moderate income persons;or
•Preventing or eliminating slums or blights;or
•Meeting a particularly urgent community development need.
IF ANY OF THE ABOVE CONDITIONS ARE MET,under current guidelines,the City of Rancho
Palos Verdes may use CDBG funds for a variety of activities including:
1.·Acquisition of Real Property
Example:Acquisition of land,air rights,easements,water rights,rights-of-ways,
building and other real property improvements.
2.Disposition of Real Property
Example:Disposition of real property acquired with CDBG funds through sale,
lease or donation including fees and costs associated with the transfer of
ownership of real property.
3.Public Facilities and Improvements
Example:Parking,streets,curbs,gutters and sidewalks,parks and playgrounds,
shelters for the homeless,water and sewer facilities,flood and drainage
improvements,community,senior and health centers.
4.Acquisition,Reconstruction,Rehabilitation or Installation of Privately-Owned Utilities
Example:Pay the costs of placing underground new or existing power lines owned
by private utilities.
5.Clearance,Demolition,Removal or Building and Improvements,or Movement of
Structure to Other Sites
Example:Demolition of vacant structure and removal of the debris to make a
neighborhood park and playground available to residents in a low/moderate income
neighborhood.
6.Public Services
Example:Child care,health care,job training,recreation programs,education programs,
public safety services,fair housing activities,services for senior citizens,services
for homeless persons,drug abuse counseling and treatment,and energy conservation
counseling and testing.
7.Interim Assistance
Example:Improvements to a deteriorating area as a prelude to permanent improvements
or alleviation of harmful conditions where immediate public action is necessary.
8.Relocation Payments and Assistance
Example:Relocation and payments to displaced individuals,families,businesses,
or nonprofit organizations that result from the acquisition of property for CDBG-assisted
purposes.
9.Loss of Rental Income
Example:Loss of rental income incurred in holding housing units used for the
relocation of individuals and families displaced by CDBG-assisted activities.
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10.Removal of Architectural Barriers
Example:Installation of ramps,curb cuts,wider doors,elevators,and physical
modification to buildings,facilities and improvements to make them accessible.
11.Housing Rehabilitation
Example:Financial assistance such as grants and deferred loans for the rehabilitation
of any publicly or privately-owned residential property.
12.New Housing Construction
Example:Funding for housing construction project that has received funding
through a Housing Development Grant (HODAG),or housing to be constructed
by a local development corporation,small business investment company,or
neighborhood-based nonprofit organization.
13.Code Enforcement
Example:Inspections in a low/moderate income neighborhood targeted for
rehabilitation assistance,a neighborhood facility and street reconstruction.
14.Historic Preservation
Example:Rehabilitation,preservation and restoration of historic properties.
15.Commercial or Industrial Rehabilitation
Example:Improvements to the exterior of the building and the correction of
code violations.
16.Special Economic Development
Example:Loans to pay for the expansion of a commercial business which will
create jobs for low/moderate income persons,or technical assistance to a
business facing bankruptcy.
17.Special Activities by Neighborhood-Based Nonprofit Organizations,Small
Business Investment Companies,or Local Development Corporations
Example:Provide grants or loans to carry out a neighborhood revitalization,
community economic development or energy conservation program.
18.Planning and Capacity BUilding
Example:Comprehensive plans,individual project plans,community development
plans,studies,analysis and data gathering.
19.Program Administration Costs
Example:Payment of costs for overall program management.
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Exhibit "B"
INELIGIBLE ACTIVITIES
Activities and projects that are ineligible for COBG funding include:
1.Buildings or portions thereof,used for the general conduct of government.
2.General government expenses.
3.Political activities.
4.Purchase of equipment,unless otherwise required for program.
5.Operating and maintenance expenses.
6..New housing construction,except housing of last resort for persons displaced
due to a CDBG project,housing to be funded through a Housing Development
Grant (HODAG),or housing to be constructed by a local development corporation,
small business investment company,or neighborhood-based nonprofit organization.
7.Income payments to an individual or family for items such as food,clothing,housing
or utilities.
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~
CITY OF
RANCHO PALOS VERDES
CITY COUNCIL
MAYOR
Thomas D.Long
MA YOR PRO TEM
Anthony M.Misetich
COUNCILMAN
Brian Campbell
COUNCILMAN
Douglas W.Stern
COUNCILMAN
Stefan Wolowicz
*Subject to Council reorganization on December 6,2012
CITY MANAGER
Carolyn Lehr
DIRECTOR OF PUBLIC WORKS
Tom Odom
HOME IMPROVEMENT PROGRAM
Sponsored by:
The Federal Community Development
Block Grant (CDBG)Program and the
City of Rancho Palos Verdes
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CITY OF
RANCHO PALOS VERDES
HOME
IMPROVEMENT
PROGRAM
PUBLIC WORKS DEPARTMENT
30940 Hawthorne Boulevard
Rancho Palos Verdes,CA 90275
(310)544-5252
The City of Rancho Palos Verdes
is offering a Home Improvement
Program to low and moderate
income residents of the City.
If you are in need of improvements
to your home such as those listed
in the Eligible Improvements List,
the City of Rancho Palos Verdes
may be able to help!
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PROGRAM PURPOSE
The Rancho Palos Verdes City Council
has budgeted Federal Community
Development Block Grant (CDBG)funds
to provide grants and zero percent (0%)
deferred loans to homeowners of single-
family detached dwellings.
The funds must be used to correct
hazardous structural conditions;to make
improvements considered necessary to
eliminate blight;to improve handicapped
access;and to correct building and
health code violations.
Applicants must not exceed the low-
moderate income limits listed in Table
"AU.
The program will be operated on a
"FIRST COME,FIRST SERVED "basis.
In order to participate you must reside
in,and be the owner of the single family
detached dwelling,and the property
must be located in the City of Rancho
Palos Verdes.
ELIGIBLE IMPROVEMENTS
•Correction of Code Violations;
•Correction of violations of the Uniform
Building Code;
•Cost effective energy conservation
measures including solar heating,
cooling,and water systems;
•Removal of lead-based paint/asbestos
hazards;
•Removal of barriers to the handicapped;
•Removal of rodents and roaches
(pest control);
•Removal of termites;
•Repair/Replace roofing;
•Repair/Replace heating;
•Repair/Replace plumbing;
•Repair/Replace screens;
•Repair/Replace kitchen and
bath flooring (linoleum type only);
•Repair/Replace water heater;
•Repair/Replace bath fixtures;
•Repair/Replace countertops;
•Repair/Replace electrical work;
•Repair/Replace windows;
•Repair/Replace stucco;
•Repair/Replace kitchen or bath
cabinets;
•Install new smoke alarms;
•Install new insulation;
•Install new deadbolt locks;
•Painting;
•Any items determined eligible by the
Screening Committee,and/or
•The elimination of specific conditions
detrimental to public health and safety,
which have been identified by Program
Inspectors.
TABLE "A"
2011 ELIGIBILITY INCOME LIMITS FOR
CDBG FUNDED PROJECTS
Effective May 31,2011
EXTREMELY Low MODERATE
FAMILY
Low INCOME INCOME
INCOME
SIZE (80%of Area
(30%of Area (50%of Area Median Income)
Median Income)Median Income)
1 $17,950 $29,900 $47,850
2 $20,500 $34,200 $54,650
3 $23,050 $38,450 $61,500
4 $25,600 $42,700 $68,300
5 $27,650 $46,150 $73,800
6 $29,700 $49,550 $79,250
7 $31,750 $52,950 $84,700
8 $33,800 $56,400 $90,200
Based on 2011 Median Family Income for the Los Angeles -
Long Beach Metropolitan Area is $64,000
Note:Income Limits change annually
ASSISTANCE PROVIDED
The Home Improvement Program provides
assistance in the form of a grant of up to
$7,000 and if requested,a deferred loan of
up to a maximum of $13,000 (min of
$5,000), which is payable upon the sale or
transfer of title of the property.This loan is
a zero percent (0%)interest loan.
For Additional Information Please Contact:
CITY OF RANCHO PALOS VERDES
Public Works Department
(310)544-5252
Ask for the
Home Improvement Program
Project Consultant
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City of Rancho Palos Verdes
Public Works Department
ITEM:PROPOSED 2012-2013
COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG)PROGRAM
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•The City receives an annual allocation of CDBG funds through
the federal Department of Housing and Urban Development
(HUD).
•The proposed 2012-2013 CDBG budget of $230,281 will fund the
following projects:
-Home Improvement Program
-Blackhorse Road ADA Improvements
-CDBG Administration and Planning
$150,000
$70,000
$10,281
• A summary of the proposed CDBG projects must be prepared
and submitted to the Los Angeles County Community
Development Commission (CDC)by January 31,2012 for
review and approval.
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