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JAM 2 It 1995
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Council Meeting" January 24, 1995
Santa MOnica, California
TO Mayor and City Council
FROM City Staff
SUBJECT Request to Hold a Public Heanng to Approve the Resolution Authorizing the
Submission of the "Proposed Statement of CommunIty Development
Objectives and Projected Use of Emergency Supplemental Funds" for all
Community Development Block Grant (CDBG) Emergency Supplemental
Funding
INTRODUCTION
This report requests that the City CounCil hold a public heanng to (1) adopt the attached
Resolution (a) approving the nProposed Statement of Community Development
Objectives and Projected Use of Emergency Supplemental Fundsll for two earthquake
recovery programs (Attachment I and II) made possible through two separate awards of
CDBG emergency supplemental funding by the Federal Department of Housmg and
Urban Development (HUD) and (b) authorizing the submittal of all reqUIred documents
by HUD to implement both COSG earthquake recovery programs
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JAN 2 " 1995
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BACKGROUND
In response to the devastation caused by the January 17, 1994 Northndge Earthquake
and the 1 993 Midwest floods, Congress enacted the Emergency Supplemental
Appropnatlons Act of 1994, appropnatlng $ 500 million In CDBG and HOME funding
for both dIsasters ApproXimately $175 million In CDBG earthquake supplemental
funding was made available to Southern California On April 4, 1994, the CIty was
notified of the first of two awards for the City of Santa MOnica The first award of
$2.7 million was followed by a second award of $25 million on November 3, 1994.
The award of $2 7 million IS proposed to fund a Public FaCility Earthquake Repair
Program for repair to City-owned faCilities and property damaged In the earthquake
A portion of thiS $2.7 million Will be used as the required 2 5% cash match for repair
costs reImbursed by the Federal Emergency Management Agency (FEMA). The
remaining amount Will be used for earthquake repair costs which are ineligIble for
FEMA reimbursement
The award of $25 million IS proposed to Increase funding for repair and reconstructIon
of multifamily and condominium properties (either occupIed or vacant) damaged In
the earthquake The City previously received two other allocations for thiS program
from the federal HOME program: $2,027,000 under the Emergency Supplemental
Appropriations Act of 1994, and $6,361,000 from the Presidential Contingency Fund,
which have also been allocated to thiS program
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In accordance with HUD CDBG reqUirements, the "Proposed Statement of Community
Development Objectives and Proposed Use of Emergency Supplemental Funds" for both
earthquake recovery programs was published In The Outlook on January 13, 1995 A
community review penod of fourteen (14) days commenced WIth the release of these
statements Notice of the Public Hearrng was published In The Outlook on January 14,
1995
The "Proposed Statement of CommunIty Development Objectives and Projected Use of
Emergency Supplemental Funds" for both earthquake recovery programs represents the
CIty's application for the receipt of the $2 7 million and $25 mIllion CDBG supplemental
funding
DISCUSSION
The follOWing diSCUSSIon provIdes an overview of the $2 7 million In supplemental CDSG
fundIng As for the $25 mIllion repaIr program, the gUidelines for Implementation of the
program are under development by staff and review by the Housmg CommissIon and the
Rent Control Board, and WIll be returned for separate Council approval and public
comment In February 1995 CouncIl approval of the Statement of Objectives (for both
funds) Will allow staff to submit an application to HUD. thIS should faCIlitate timely funding
by HUD The actual gUidelines for the Multifamily Earthquake RepaIr Loan (MERL)
Program are not requIred to be submitted to HUD
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Public Facility Earthquake Recovery ProQram (Attachment I - $2.7 Million)
The funding recommendations made within the "Proposed Statement of Commumty
Development Objectives and Projected Use of Emergency Supplemental Funds" for the
$2 7 mllhon are as follows (1) to provide funding In the amount of $2,169,600 to
complete repairs and retrofits to City-owned faclhtles and property damaged by the
earthquake, and (2) to prOVide $542,400 for general management, oversight. and
coordInation of these public facIlity construction projects
Attachment I (Exhibit A) prOVides a listing of potential projects eligible for CDBG
emergency supplemental funding The projects have been Identified as part of the CIty's
anginal application to FEMA for reimbursement of repair and retrofit costs to public
facIlities damaged dunng the earthquake According to FEMA fundIng reqUirements, the
City must prOVide a mInimum 2 5% cash match for repair costs approved for FEMA
reimbursement A portion of the $27 million CDBG emergency supplemental funding may
be used to pay for these costs Further, a portion of the $2 7 million IS also proposed to
be used for repair costs or hazard mlttgatton measures that are Ineligible for
reImbursement by FEMA
Multifamily Earthquake Repair Loan (MERL) P~ram (Attachment II - $25 MiHion)
The funding recommendattons made WIthin the "Proposed Statement of Commumty
Development Objectives and Projected Use of Emergency Supplemental Funds" for the
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$25 million mcludes fundmg for a revIsed Multlfamlly Earthquake Repair Loan (MERL)
Program, Including service delivery l direct techmcal assistance, and management of the
program
FINANCIAL/BUDGETARY IMPACT
The proposed allocations would result In fully appropnatlng two special HUD CDSG grant
allocations awarded to the City to address damage sustained In Santa Momca as a result
of the January 17. 1994 Northndge Earthquake Appropnatlons of the $2 7 million grant
will be made accordIng to the follOWIng allocations
Public Facilities Earthquake Repair Pro~ram ($2,712,000 COBG)
Direct Costs $2,169,600 19-700-274-20095-8900-99159 (exp)
19-400-262-00000-0542-10000 (rev)
Administrative Costs
$ 542,400 19-700-274-20095-8900-99160 (exp )
19-400-262-00000-0543-10000 (rev)
TOTAL
$2,712,000
Multifamily Earthquake Repair Loan Pf'OHram f$25,OOO,000 COBG}
Appropnatlon of the proposed $25 millIon WIll be presented to the City Council With the
MERL Program gUidelines
RECOMMENDATION
City staff recommends that the City Council hold a public heanng to (1) adopt the
attached Resolution (a) approving the "Proposed Statement of Community Development
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Objectives and Projected Use of Emergency Supplemental Funds" for two earthquake
recovery programs (Attachments I and II) made possible through two separate awards of
CDSG earthquake supplemental funding by the Department of Housing and Urban
Development (HUD) and (b) authonzlng the submIttal of all documents to HUD reqUIred
to Implement both CDSG earthquake recovery programs
Prepared by
Jeff Mathieu, DIrector
Phyllis Mueller, Housing and Redevelopment Manager
Tim Elliott, Sr AdminIstrative Analyst
Department of Resource Management,
Housing and Redevelopment DIvIsion
Susan McCarthy, Director
Julie Johnson, Acting Human Services Manager
Department of Community and Cultural Services,
Human Services DIVISion
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