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SR-300-002-01 (24) NS'NM sh ~ Council Mtg. 4-27-82 . gOt)- otJZ-e;/ 7-8 APR 2 7 1982 Santa Monica, California TO' Mayor and City Council FROM' City Staff SUBJECT: Approval of 1982-83 Community Development Block Grant Program Introduction This report transMits a Proposed Statement of Community Development Objectives and Projected Use of Funds, and City staff recommendations for the City's 1982-83 Community Development Block Grant (CDBG) program. A Tist of proposed projects and activities ;s attached and it includes all written requests and other suggestions received during the CDBG public hearings. Also attached are copies of the proposals which City staff is recommending for funding. CDBG was established by Congress to principally benefit low and moderate-income households, This program has also stressed the need for local governments to support the efforts of neighborhoods to protect and maintain their integrity. This City Council has also consistently stressed that block grant funds should be used to meet the need of low and MOderate-income communities and to support the Council IS efforts to join in partnership with local, indigenously controlled community organizations. To impleMent the intent of the United States Congress and the intent of this Council, staff is proposing a 1982-83 Community Development Block Grant program with the following major objectives. o ,Preserv.e and protect the housing stock. Pressures for gentrification and property deterioration threaten the integrity and stability of low and moderate-income neighborhoods. The Pico Neighborhood Association and the Ocean Park Community Organization have requested funds to support neighborhood-based efforts to preserve and protect the housing ~.r~ APR 2 7 1982 It e Mayor and City Council -2- April 27, J982 stock in their communities principally occupied by low and moderate-income families. Housing is and must be the highest priority for the utilization of Block Grant Funds and staff is recommending the utilization of housing reserves plus additional appropriations to meet this priority. o Neighborhood D~vel~pment. To support and sustain neighborhood development, this recommendation allocates funds to a variety of infrastructure needs including street lighting, residential security, traffic signal installation, street improve- ments and park improvements. o Support for Individuals and Fam;1 ies in Need. In light of sustained and i1i-advised cutbacks by the Federal Government for the support of the needs of the disabled, and children/families in crises, significant funds are allocated to support human service priorities. Principally, these funds will go to increasing facilities for the disabled and the acquiSItion of the Stepping Stone facility. If the Stepping Stone facility cannot be acquired, other projects should be substituted con- sistent with this intent. The highest concentration of Jaw and moderate-income families in the City of Santa Monica reside in the Pico Neighborhood. In accord with the intent of Congress and Council, the Pico Neighborhood requires a major investment of Community Development Funds. Unfortunately, prior to last year, the Pico Neighborhood has been systema- tically neglected by publIC investment strategies. Building upon an initial invest- ment Made last year, this recommendation attempts to support the efforts in the Pico Neighborhood, under the leadership of the Pica Neighborhood Association, to systematically invest in the neighborhood and to benefit low and moderate-income households. In addition, this recommendation supports the ongoing work of the e e Mayor and City CounciJ -3- ApriJ 27, 1982 Ocean Park Community Organization in their efforts to meet the needs of low and ~oderateainco~e households residing in the Ocean Park community. Background The amount of CDBG funds Santa Monica will receive for Program Year 1982-83 from the U S. Department of Housing and Urban Development (HUD) is $1,404,185. City staff IS recommending the reprogrammIng of the $60,000 set aside in the current year for an energy conservation program. A CIty energy program is currently under review by General Services. Also to be added to programmable funds for 1982-83 is $20,000 in revenue frOM the City's Housing Rehabilitation program terminated in 1979. The total amount of new CDBG funds available for next year's program is 51,484,185. Of the amount of funds avaIlable for 1982-83 CDBG programming, a maximum of ten percent (10%) may now be used for publ ic service activities. These are activities designed to meet community residents' needs in such areas as employment, crime prevention, child care, health drug abuse, education, welfare or recreation. The criteria for eligibility for CDBG funding are' the service must prinici- pally benefit low and woderate-income persons, and the proposed activity must be either a new service or a quantifiable increase in the level of an existing service There are other changes in the CDBG regulations affecting the Cityls 1982-83 program. A written application for funds is no longer required and the lengthy A-95 clearinghouse and HUD review periodS have been el iminated. The City is required to submIt to HUD, at least thirty (30) days prior to the commencement of the new program year, a Statement of Community Development Objectives and Projected Use of Funds. Santa Monica's Statement has been developed by staff e e Mayor and City Council -4- April 27, 1982 and made available to citizens for review and comment. No comments have been received and the final Statement is submitted herewith for approval by City Council. Though the number of CDBG publ ic hearings required by HUD has been decreased, City staff has naintained the same level of citizen participation outreach as last year. This includes direct mail iogs to the special CDBG Citizen ParticipatIon Mailing List of individuals and community groups; Citywide dissemination of a CDBG brochure and flyers; publ ication of an "0pen Letter from the Mayor," public hearing announcements and several newspaper articles concerning CDBG activities; CDBG inFormation provided by Gity staff at meetings of various community groups; and several public hearings held by City Commissions and the City Counc i 1 . Discussion Again this year, housIng programs benefitting Tow and moderate-income persons remains a top priority among those participating in the CDBG planning process Since CDBG funds cannot be used by the City directly for construction of new housing, some housing needs can be met through the implementation of housing rehabilitation programs, site acquisition and site preparation. A housing rehabilitation program to be implemented by Pica Neighborhood Association (PNA) in the Pico Neighborhood Area, and another to be operated by the City, are being recommended by staff. Details of these programs are provided in a separate report which is attached. As part of a continuing program of community development and neighborhood revitalization in CDBG Target Areas, based on needs expressed by residents, City staff recommends the following projects: major street improvements to e e Mayor and City Council -5- April 27t 1982 11th Street between Pica Boulevard and the Santa Monica Freeway. and Colorado Avenue between 11th and 20th Street; installation of a traffic signal at the intersection of 14th Street and Michigan Avenue; and street light installation on the 1600 and 1700 blocks of Frankl in Street and the 1400 and 1500 blocks of 18th and 19th Streets. Fund~ are available for a traffic signal at the intersection of 11th Street and Michigan Avenue if the Council and the community decides this is a priority. City staff and community representatives are reviewing alternatives to installation of a traffic signal at this location. Also recommended as part of the neighborhood revital ization in Target Area III is a redesign of Stewart Street Park. Approximately one-half of the park IS not useful because of its dimensions and relationship to the other facilities. Staff intends to work closely with residents adjacent to the park to determine the most desirable and compatible uses of the park. City Council has commItted General Funds to the establishment of an Office for Disabled in City Hall, and authorized the preparation of a study relating to Citywide accessibil ity for disabled along with a guide indIcating existing accessibility of commercial establishments. CIty staff is recommending 585.000 in 1982-83 CDBG funds be added to the Facilities for Disabled Fund established this year. Specific architectural-barrier-removal projects reco~mended for immediate financing from thiS Fund include modifications to Ocean Park Community Center, and the YWCA. Other possible future projects include modification to public restroons at the Civic Auditoriu~. Installation of an elevator in the Police Building to provide access to the Detective Division on the second floor, and modifications to the north wing of City Hall on both the first and second floors. Additionally, there are specific intersections in the City traveled by e - Mayor and City Council -6- April 27. 1982 citizens in wheelchairs where it has been requested wheelchair ramps be con- structed. Staff recommends the construction of ra~ps at the various specific locations. City staff further recommends the budgeting of $175.000 for the acquisiton of Stepping Stone Youth Crisis Center. Stepping Stone provides temporary residential services. as well as information and referral. 24-hour hotl ine. crisis interven~ tion, counseling/mediation and follow-up services. It is the only facil ity of its kind in Santa Monica. The current owners wish to sell the property. and finding another sUItable site for this program could be difficult. Purchase of the facility by the City and subsequent lease arrangement with Stepping Stone would relieve the uncertainty of continuation of the program. and reduce the burden of high rental fees which would free up funds for direct services. Acqui- sition of this property may not be possible due to current real estate market conditions. If this particular acquisition is not possible, staff recommends consideration of the acquisition of other human service facil ities in CDBG target areas. Continued funding IS being recommended for three programs implemented by local organizations this year. One of these programs is the Residential Security Installation Program operated by Ocean Park Community Organization (OPCO). opec has been providing security audits and free locks in the Ocean Park Area, bene- fitting 100% low and moderate-income residents. For next year, the program will be expanded to serve low and moderate-income residents citywide. and will be coordinated with similar activIties of the Santa Monica Bay Volunteer Bureau. Another public service program recommended for continued funding is the Youth Activities Progra~ operated by PNA. This program has been very effective in e e Mayor and City Council -7- Ap r i 1 27, 1982 stimulating participation in community activities by young people in the Pico Neighborhood. Continuation of youth block club organization and sponsorship of special youth activities is planned, along with the addition of a youth employ- ment component. The employment aspect of the program will not only provide a means for earning ~oney from projects designed to benefit the neighborhood, but will also help prepare the young participants for entry into the adult job market. The other existing program recommended for continued funding is the Citizen Participation Outreach program conducted by the Latino Resource Organization (LRO). Preli~inary outreach and groundwork is being laid this year for increased parti- cipation by Santa Monica Latinos in governmental process as well as greater usage of available services. The program proposed for next year has been expanded to include (in addition to a continuation of current activities), a language and cultural training program for service providers, establishment of an ombudsman program, establishment of a latino Advisory Committee to monitor and review programs serving the Latino community and a fundraising component to help them become more self sufficient. Staff has discussed the desire of Pica Neighborhood Association (PMA) .to build a community center in Virginia Avenue Park. It is recommended that consideration of this be postponed. The Director of Recreation and Parks and PNA are discussing with the City Manager uses of the recently-constructed recreational facility in Virginia Avenue Park. It is the intent of staff to provide for appropriate involvement and access to the facil ity. Hopefully, proper allocation of the use of the existing facility, in conjunction with PNA, will meet the needs of neighborhood residents. e e Mayor and City Council -8- April 27, 1982 City staff IS proposing CDBG support of the fair housing program established in the City Attorney's office this year. HUD requires that cities receiving federal funds make special efforts to promote fair housing opportunities for all citizens. A new housing service proposed to be implemented by OPCO in Target Area I (Ocean Park} 15 a comprehensive Neighborhood Housing ProJect. This program, also recommended for funding by City staff, would provide Information and referral and door-to-door outreach to the 88% renters of the area, with targeted areas of low and moderate-Income households. The information provided to tenants would include their rights and responsibilities regarding discrimination, dis- placement, code requirements and rent control provisions. The data gathered would provide the groundwork for the Community Development Corporation (CDC) for housing now in the planning stages. The Neighborhood Housing Project would serve as the outreach mechanism for the CDC. To round out the proposed CnBG program for 1982-83, City staff IS recommending the design and implementation of an EconOMic Development program with focus on the CDBG Target Areas. The initial step would be the preparation of an Economic Development Strategy which is required by HUD prior to engaging in CDBG-funded economic development activities. When the plan is completed and approved, the City can then seek suitable commercial enterprises wishing to expand their facilities and/or operation Private funds are then leveraged for a complete economic development package. The benefits of this type of assistance are threefold: local business IS enhanced, jobs for low and moderate-income employees are created or saved, and revenue is derived as loans are repaid. Also included In the 1982-83 CDBG program are funds for general planning and administration of the program, and a Contingency Fund. Since unused Contingency e e Mayor and City Council -9- April 27, 1982 Funds from the current CDBG budget will be carried forward to next year, only a minimal amount of 1982-83 funds need be budgeted for this purpose. A complete list of the above-~entioned recommended projects and activities is attached. Recommendation It is recommended that City Council: I. Hold the scheduled public hearing and receive citizen comments. 2. Approve the reprogra~ming of the $60,000 in CDBG funds currently budgeted for energy conservation and the $20,000 in revenue received from the housing rehab! 1 itation program. 3. Approve the attached Statement of Com~unity Development Objectives and Projected Use of Funds, whIch includes the projects and activities mentioned above as recommended by City staff, and authorize the City Manager to submit same to HUD. 4. Adopt the attached resolution which further authorizes the City Manager to submit to HUD all documents necessary to facilitate the receipt by Santa Monica of 1982-83 CDBG funds. Prepared by: John H. Alschuler Nancy McFarland JHA'NM mh Attachments e e e NS.NM'mh Council Mtg. 4~27-82 ~ e PROPOSED 1982-83 CD8G PROGRAM PICO NEIGHBORHOOD (Tar~et Area I I I) HOUSING PROGRAMS AND ACTIVITIES: Housing Rehabilitation Program - PNA' Phase I (6 months) - $1251000 Phase II ( 18 months) - S375.000 Technical Assistance Grant - $10.000 Tenant Education Program - $35,048 STREET IMPROVEMENTS: 11th Street between Pico Blvd, & S,M. Freeway Colorado Avenue between 11th & 20th Streets STEWART STREET PARK IMPROVEMENTS TRAFFIC SIGNAL INSTALLATION: 14th Street & Michigan Avenue STREET LIGHT INSTALLATION. 1600 & 1700 Blocks of Franklin Street 1400 & 1500 Blocks of 18th & 19t~ Streets YOUTH ACTIVITIES AND EMPLOYMENT PROGRAM ~ PNA ACQUISITION OF STEPPING STONE FACILITY OCEAN PARK (Target Area I) RESIDENTIAL SECURITY fNSTALLATION PROGRAM - OPCC NEIGHBORHOOD HOUSING PROJECT - opeo CITYWIDE - GENERAL COMMUNITY NEEDS HOUSING RE~ABILITATION LOAN FUND - CITY WHEELCHAIR RAMP CONSTRUCTION (Specific requested sites) FACILITIES FOR DISABLED: To include architectural barrier removal at OPCC and YWCA - $18,150 CITIZEN PARTICIPATION OUTREACH TO LATINOS - LRO FAIR HOUSING PROGRAM ECONOMIC DEVELOPMENT PROGRAM GENERAL PLANNING AND ADMINISTRATION CONTINGENCY FUND $545,048 100.000 125,000 65,000 150.000 43.000 175.000 37,000 23.500 190.000 20.500 85.000 97.500 40.000 tOO ,000 185,500 2.185 51.984,233 NS:NM:mh Council Mtg 4/27/82 e e ,&) 00 7D 7B AP R 4 '{ beZ ADDENDUM TO ITEM 7B TO: Mayor and City Council FROM: City Staff SUBJECT CDBG Request Submitted by the Pacific Jewish Center This is to advise you that the proposal submitted for the provision of Low- Income Senior Citizen Assistance (Proposal No. 14) which was withdrawn has been resubmitted by a different entity. The Pacific Jewish Center, represented by Carol Anne Teva-Wright, IS requesting 584,085 to implement a program for low-income senior citizens which would include a needs assessment, security audits and lock Installation, energy audits and installation, and housing reha b ill ta t i on Prepared by. Nancy McFarland NM mh !too -ro 7-8 APR 2 7 1982