SR-300-002-01 (26)
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Council Meeting 11/23/82
.NOV 2 ;:; 1932
Santa Monica, California
TO:
Mayor and City Council
FRon.
CIty Staff
SUBJECT
Annual Review of CDBG Program
Introduction
ThiS Annual Review of the Community Development Block Grant (CDBG) pro9ra~
IS part of the annual Performance Assessment process In conjunction with
the pub! ic hearing held September 28, 1982. It is designed to provide
City Council with an overview of the entire CDBG program and an opportunity
to take any action which may be appropriate. This review is in addition
to the semi-annual CDBG report required by the recently-adopted CDBG
Ordinance. The purpose of this staff report is to (1) provide a brief
review of all CDBG projects conpleted In 1981-82, (2) discuss the status of prior
year projects still in progress, (3) prOVide an overvievl of the 1982-83
program Including pending requests for 1982-83 Contingency Funds, and
(4) reco~mend necessary changes in projects or reprogramning of funds.
Program Rev i ey,
CDBG PROJECTS COMPLETED IN 1981-82
A. Senior Recreation Center
Allocatlon 1979-80 - $75,000
Flnal Expend~tures - (74,529)
PEPROGRAf1z.!ED
$
471
Design and construction of a 1,500 sq. ft. expansion of the Center
located In Palisades Park.
B Northeast Ocean Park Neighborhood Center Acquisition
Al1ocat~on 1980-81 - $168,000
F2na1 Expend2tures - (168,000)
o
AcquiSition of a residential property for conversion to use as a
NeIghborhood Center to be operated by Fraternal Endeavors (FE).
Acqu i 5 J t i on ~"as camp 1 eted in April 1982. The Lease bebJeen FE and
11- H
LNOV 2 3 1982
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Mayor and City Council
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November 23. 1982
the City was executed on October 22, 1982 and an additional $15.500
of 1982-83 CDSG funds was allocated for renovation of the property.
This program serves a project area comprised of 67 ld: low/moderate-
income residents
C. Security Lighting - Joslyn Park
Allocat~on 1980-81 - $20,500
F~na1 Expend~tures - (16,728)
TO BE REPROGRAMMED
$ 3,772
Installation of five new light poles with fixtures, and thirteen new
light fixtures; located in a CDBG project area comprised 67 4%
low/moderate-income residents
D. Play Area Renovation - Joslyn Park
A11ocat~on 1980-81 - $35,600
F~nal Expend~tures - (34,177)
REPROGP~!~~ED $ 1,423
Redesign and reconstruction of play area and replacement of play
equipment.
E. Mural - Joslyn Park
A11ocat~on 1980-81 - $1,000
F~na1 Expend~tures - (1,000)
o
Design and execution of mural on wall of park completed in June of 1982.
Dedication held in July
F. Traffic Signal - Pico and 18th Ct.
A11ocat~on 1980-81 - $10,000
F~na1 Expend~tures - ( 9,500)
TO BE REPROGRAMMED
5
500
Installation of pedestrian-activated traffiC signal located in a
CDBG project area comprised of 71.5% low/moderate-income residents.
G. Wheelchair Ramps
A11ocat~on 1981-82 - 518,000
F~nal Expend~tures - (17,144)
REPROGRlil.fi"JED
$
856
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Mayor and City Council
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November 23, 1982
Thirty wheelchaIr ramps (curb cuts) constructed in the Pico
Neighborhood. The project area is composed of 67.3% low/moderate-
Income residents.
H. Sidewalk Construction - Michigan at 20th Street
Al1ocat~on 1981-82 - $10,000
F~na1 Expend~tures - ( 1,964)
REPROGRAMMED $ 8,036
Construction of 200 feet of sidewalk in project area composed of
67 3% low/moderate-income residents.
I. Street Improvements - Delaware Avenue
Al1ocat~on 1981-82 - $20,000
F~na1 Expend~tures - (13,516)
REPROGRAMMED
$6,484
ConstructIon of traffic islands and reconstruction of adjacent
curbs and sidewalks.
J. Residential Security Installation Program - Ocean Park Community
Organization
Al1ocat~on 1981-82 - $37,000
F~na1 Expend~tures - (29,866)
REPROGRAMMED
$ 7,134
Provision of security audits and lock installation in 177 residences.
100% of direct beneficiaries were of low/moderate inco~e. 66.6% of
these were low Income.
K. Youth Activities Program - Pica Neighborhood Association
A11ocat~on 1981-82 - $70,000
F~na1 Expend~tures - (66,127)
REPROGRAl"lMED
$ 3,873
Neighborhood-level youth activities program provided by PIca
Neighborhood Association. Approximately 150-200 youth from CDBG
target area co~prised of 67.3% low/moderate-income residents had
some kind of contact with PNA. Acitlvities included organizing ten
youth block clubs, leadership activities and special projects.
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Mayor and City Council
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November 23. 1982
L. Citizen Participation Outreach - latino Resource Organization
Allocatlon 1981-82 - $BO,OOO
Plna1 Expend~tures - (BO,OOO)
o
Latino outreach program, including the development and distribution
of a bi-l ingual resource directory detailing social services for
the Latino community, a needs assessment (finalized in 1982-83),
and comnunity forums and meetings.
I I. PRIOR YEAR CDBG PROJECTS STILL IN PROGRESS
The following is an update on all eDBG projects approved In prior
yea rs and not yet comp 1 eted. One of the ni ne projects was or i g i na 11 y
approved in 1979-80, three In 1980-81. and five in 1981-82. Expenditure
amounts reflect total actual expenditures to September 30, 1982.
Encumbered or cash advances to subrecipients are not included.
A. Multiservice Center
Allocatlon 1979-80 - $2BO,OOO
1980-81 - 320,000
TOTAL ALLOCATION
Expended Sept. 30
BALANCE
$600,000
( 91,584)
$508,416
In Fall of 1981, the City Council reformulated the original project
designed by a group of agencies to house social service prOViders.
The new plan involved a mixed-use structure of housing, social
services and parking to be located on a City-owned parking lot on
4th Street between Broadway and Colorado. Since that time. the
following activities have been undertaken. (I) Bay Area Multi-
service Center (BAMC) staff completed a concept paper on possible
models for the center and an assessment of space needs of social
service agencies in the area, (2) The BAMe Board raised a total
of $43.120 in cash and pledges, (3) City staff researched a number
of funding alternatives. including the State Rental Housing
Construction Program and the CHFA Section 8 program, to supplement
City and CDBG funds that would have provided the necessary support
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Mayor and City Council
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November 23, 1982
to complete the project. This last effort was unsuccessful due to
the decline in funding for housing construction and a preference on the
part of funding agencies to avoid mixed-use projects. Although a full
review and analysis is underway, the staff's preliminary findings are
that it is infeasible to procure funding to cover the current $1.5
mi 11 ion deficit for the project. In response to this 11gloofl1Y" out-
look, Staff recently located up to eight sites on the Mall and in the
downtown area having potential rehab possibilities for social service
space. A fiscal analysis of renovating an existing structure indicates
that this alternative is feasible. In light of this analysis and
considering the critical need for social servIce space in the
community, Staff feels confident that viable rehab opportunities
exit. Accordingly, the Staff's full review effort will focus on
preparing a recofl1mendation on a rehab package in t~e CBD area for
Council consideration.
B. Security Lighting - Mall
A11ocat~on 1980-81 - $50,000
Expended Sept. 30 - (14,571)
BALANCE $35,429
At the time this prOject was approved, plans were being formulated for
revitalization activities on the Mall. While consensus was not
reached In the overall plan, it was decided to use a portion of the
funds to provide increased illumination. Since a redeSign of the
Mall area was anticipated, installation of new lIght poles and fixtures
was postponed. It is anticipated that a funding strategy for
expenditure of this money on a component of Mall improvements will
be in place by the end of the fiscal year.
C. Public Works Assessment Assistance
Al1ocat2on 1980-81 - $5,000
Expended sept. 30 396
$4,604
To date assistance has been provided to three low/moderate-income
property owners who have been assessed by the City for publ ic works
construction. Activity is to continue as needed. NotificatIon of
this fund IS included on all assessment notices involving residential
assessments. However, additional advertising efforts are currently
being explored by City Staff
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Mayor and City Council
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November 23, 1982
D. Housing Acquisition/Rehabilitation
A11ocat~on 1980-81 - $567,635
1981-82 - 400,000
1982-83 - 235,000
TOTAL ALLOCATION
Expended Sept. 30
$1,202,635
(82,762)
$1,119,873
BALANCE
Funds earmarked for housing in prior years have been allocated to the
1982-83 Housing Program as follows (1) $735,043 for the HouSlnq
Rehabil itation Program including a Handyperson Project In the Pico
Neighborhood implemented by PNA and United Community and Housing
Development Corporation, improvement of procedures for code enforcement,
and a loan program for Section 8 Moderate Rehabll itation. It is
antiCipated that 5485,048 of this will be expended in the 1982-83
prograM year and $250,000 In 1983-84. (2) $100,000 for site improvements
for a public housing prOject to be developed by the Housing Authority
in the County of Los Angeles (the site has been approved by HUD). (3)
A grant of $9,000 awarded to Community Corporation to investigate the
feasibility of acquiring Cloverfield Gardens. The unobligated balance
of $358,587 is available to be used to acquire sites for construction
or rehabil itation. The instability of Federal and State funding
sources for housing has slowed this process consIderably. However, a
variety of sites are under consideration and work with neighbors and
other interested groups has begun in order to encourage citizen input
into the selection process. Staff anticipates either acquiring a
site in the 1982-83 program year, contingent upon aporoval by HUD,or
alternately having rehab program recommendations for consideration.
All obligated housing funds represent approximately 99% benefit to
low/moderate-income persons.
E Mural - Stewart Street Underpass
hllocat~on 1981-82 - $9,000
Expended Sept. 30 - (B,750)
BALANCE
$ 250
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Mayor and City Council
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Novembe r 23, 1982
Pico Neighborhood ASsoclatlon1s Youth Employment Program assisted
the artist in the execution of the mural depicting life in the
Pico Neighborhood. The mural was completed in early November
and PNA held a dedication ceremony at the mural site, followed
by a picnic in Stewart Street Park. This mural is located in a
target area comprised of 67.3% low/moderate-income residents and
100% of the youth assisting On the project were from low/moderate-
income fami 1 i es.
F. ~ecovery Home for Substance Abusing Youth - CLARE Foundation
A11ocatLon 1981-82 - $200,000
Expended Sept. 30 0
BALANCE
$200,000
In August of 1981, a site was identified for this project at 2937
Virginia Avenue. Appraisals of the property were prepared, an
application for exemption from rent control was submitted and
neighborhood meetings were held. Strong opposition from the
surrounding neighborhood developed and the proposed Site was not
approved. Another site (2902 3rd Street) was then identified and
in February 1982, the acquisition orocess began. However, a
title search on the property has indicated an Illegal subdivision
occured in the past. In addition, a request for any necessary
variances and new tract map cannot be reviewed until approval of
the Housing Element. The Planning Department esti~ates that a
decision could be made within 60 days of the approval of the
Housing Element.
Given the problems with the 3rd Street property, CLARE submitted
an alternative proposal to USe the $200,000 in CDBG funds While
the concept submitted (a youth center at an undetermined site)
was an interesting one, Staff does not recommend the change of use.
Given decreaSing resources for social services and resulting fiscal
difficulties eXisting youth programs are facing, It would not
be appropriate to Initiate a new program without also allowing
eXisting programs to submtt competing funding proposals.
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Mayor and City Council
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November 23, 1982
G. FacilIties for the Handicapped
A11ocatLon 1981-82 - $10,500
Expended sept. 30 - ( 8(240)
BALANCE $ 2,260
Construction of the wheelchair ramp in the Finance Department of
City Hall has recently been completed. Recommendations for use
of the final balance wIll be inc1uded in future recommendations
for the use of 1982-83 Barrier Removal funds. These recommendations
are being developed by this depart~ent's Office for the Disabled.
H. Community Development Corporation {CDC) - Ocean Park Community
Organization
AllocatLon 1981-82 - $75,090
Expended Sept. 30 - (16,272)
BALANCE
$57,818
Progress on this grant began in 1981-82 with the selection of qualified
staff to form the CDC and to seek out appropriate projects to under-
take. Since the start of FY 82-83, the CDC (incorporated as the
Community Corporation) has selected a Board of Directors, and
has undertaken preliminary feasibility analysis for several projects
such as the acquisition of Cloverfield Gardens.
I. Fourth Street Improvements
A11ocatLon 1981-82 - $100,277
Expended Sept. 30 0
BALANCE
$100,277
Reconstruction of approximately 1,800 ft. of Fourth Street between
Broadway and Wilshire Boulevard. This is part of a larger contract
for street improvements totaling 51,006,446.50 which has been let.
Work on other streets is stIll in progress. A dispute with the
contractor regarding quantities of work performed has held up the
payment process.
I I I. CURRENT YEAR CDBG PROGRAM
A. 1982-83 Projects
Attached for Council review IS a list of all new projects approved
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Mayor and City Council
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November 23, 1982
for the 1982-83 progra~ year. (See Attachment A) This report does
not include updates in these new projects as this will occur at
the time of the six-month report of the CDBG program in February.
(The six-month report is detailed in the recently adopted CDBG
Ordinance.) The basis of this report will be a set of targets
developed at the beginning of the year for each project. In the
case of City capital projects, staff has prepared implementatIon
plans for each project including a timeline and benchmarks for
monitoring progress Grants to community organizations include
a Grantee Workplan which outlines (a) Program objectives including
quantifiable levels of service as well as more subjective targets,
(b) fundraising objectives to ensure that agencies are attempting
to diversify funding, and (c) a "networking or technical assistance'!
objective to encourage community agencies to share resources
and coordinate services.
B. 1982-83 CDBG Contingency Fund
The CDBG Contingency Fund is maintained (I) to meet unpredicted and
justifiable expenses of current CDBG projects, and (2) to give the
Council flexibility in implementing new projects based on community
development pol icy decisions made during the year. These new
projects are to address critical community development needs
arising during the year which, if not addressed in a tl~ely fashion,
will adversely effect low/moderate-income residents of the City.
Currently, contingency funds equal $134,384. In the past month,
staff has received two requests from community agencies for use of
a total of approximately S29,OOO of these funds. Staff has
determined that both requests meet eligibility requirements and
the criteria for contingency funds described above. These
reques ts are:
(1) Westside Legal Services (WLS)is requesting $3,975 for
modificatIon of current office partitions in order to fully enclose
attorney and mediator offices. Currently, WLS legal staff work In
offices that provide no assurance of confidentiality and they
report that this is in violation of attorney/client privilege because
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Mayor and City Council
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November 23, 1982
of the lack of sound-proof office space. Conversations between
cl ient and attorney can be heard in other offices and in the reception
area. In addition, the Neighborhood Justice Center (which receives
rent-free space from WLS as a condition of its grant with the City)
cannot conduct on-site mediations because of the lack of privacy.
Again, on-site mediation by Neighborhood Justice Center was a
condition of the WLS grant.
Staff has review the abilIty of Westside Legal Services to cover
the costs of capital improvements from other Sources. This review
resulted in the following conclusions: (a) that WLS is successful
at procuring community resources through the extensive use of
volunteer and pro bono attorneys, (b) that WLS conducts an ongoing
fundraising campaign and submits proposals for funding whenever
possible; but (c) that these resources are used to cover deficits In
the operating budget, with no allowance for capital improvements.
(2) Los Angeles Childbirth Center (LACC)is requesting $25,000
In additional eDBG funds for structural renovations to a facility
at 1200 Pico for use by the Latina Maternity Care Project as an
Alternative Birthing Center. A detail of those costs is attached.
(See Attachment B) Review of these plans Indicate these costs are
eligible except for $700 for equipment (stove/refrigerator). In
addition to this request, LACe received $30,000 in GRS funds for
operating expenses associated with the development of the Latina
Maternity Care Project and an Alternative Birthing Center and
$10,000 in CDBG funds for renovation of the facility. At the
time that funding decisions were made LACC had not yet located
a building. After many months of looking, the proposed site was
found. The potential owners of the building (escrow closes November 28,
1982) have agreed to lease the facility to LACC for $.73/sq. ft.
per month if they can secure the $25,000 in cnBG funds for renovation.
Discussion with the potential owners indicate a will ingness to
lease t~le improved space to LACe, the City or an agency designated
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Mayor and City Council
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November 23, 1982
by the City for social service use for a period of ten years
at the $.73 with no escalation in excess of CPl.
Staff recommends approval of this request because of the increasing
documentation regarding the need for low cost pre-natal care and
alternative birthing services. The recently submitted draft of the
Latino Resource Organization's needs assessment indicates that 46%
of all Santa Monica Latina Mothers interviewed indicated they had
received no pre-natal care. A study conducted by the Department
of Community and Economic Development and the recent hearing on
midWIves conducted by the Commission on the Status of Women also
revealed this need. Increasing unemployment coupled with new and
severe cutbacks In health care on the State and County level have
increased the urgency to provide low-cost alternatives for maternity
services for low-income mothers.
Recommenda t ion
City staff recommends that the Council
I. Approve the change in the Multiservice Center project from
the mixed-use facility on 4th Street to a single-use center and
direct staff to proceed with the identification of property
appropriate for rehabilitation.
2. Require that resolution of the imperfect deed of the CLARE
Youth Recovery Home site occur within 60 days of the approval
of the HOUSing Element or the funds will be reprogrammed
3. Allocate 52,975 from CDBG Contingency funds for the purpose
of modifying internal partitions for Wests Ide Legal Services
and authorize the City Manager to negotiate an agreement which
includes proper assurances regarding CDBG eligibility requirements
and owner/agency reimbursement.
4. Allocate an additional S24,300 from CDBG funds to supplement the
preVIous award of $10,000 to the L.A. Childbirth Center for
renovation of space for the Latina Maternity Care Project and
authorize the City Manager to negotiate an agreement for the
total amount of 534,300. This agreement should include assurances
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Mayor and City Council
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November 23, 1982
of a ten-year co~~it~ent to lease the space to social service
providers that substantially benefit low/moderate-income
individuals, and City shall review and approve renovation plans
to ensure the facility is appropriate for general social
service use; and lease cost to LACC for the first year shall
be S.73/sq. ft per month with provisions for an annual increase
no greater than the increases in CPI for any year.
Prepared by' Barbara Stinchfield
PROJECT NO:
801
802
803
804
805
806
808
809
810
811
812
813
814
815
816
817
818
819
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AMOUNT
$ 545,048
190,000
10,000
130,000
125,000
150,000
175,000
37,000
20,500
85,000
100,000
43,000
97,500
25,500
40,000
15,600
12,400
5,000
185,500
2 . 1 85
$ , ,994, 2 33'~
~1982-83 Allocation from HUD 51,404,185
Prior year funds a~d program income used to aug~ent 1982-83 Program Funds.
COUNCIL-APPROVED ACTIVITIES FOR THE 8th YEAR (1982-83)
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
PROJECT/ACTIVITY
Housing Rehabil itation - PNA
Housing Rehabilitation - CITY
Childbirth Center Renovation
ff. S. 1 14th & Michigan Ave.
Tra IC .gna 5 -
11th & Michigan Ave.
Stewart Street Park Improvements
Street Light Installation
1600 & 1700 Blocks of Franklin Street
Street Light Installation
1400 & 1500 Blocks of 18th and 19th Streets
Stepping Stone Acquisition
Residential Security Installation
Program - OpeD
Wheelchair Ramps
Facilities for Disabled
Economic Development
Youth Development and Employment
Program - Pt.lA
Citizen Participation Outreach to Latinos - LRO
Neighborhood Housing Project - OPCO
Fair Housing Progran
Nei~~borhood Adult PartiCIpation Project (NAPP)
Child Abuse Pilot Project - OPCC
Ozone Park Play Equip~ent
Planning and Ad~inistration
Cor. t i '1gency FUiiC
ATTACHMENT A
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ESTIHATE-
BONUS CONSTRUCTION
1200 Pica Boulevard
COMMERCIAL RENOVATION
I . D ry\....a I I - Wa 11 s
1,120 sq. ft
$. 55/sq. ft.
+ 30% = 1,500 sq. ft.
including labor
2. Floor Covering - Carpet/Linoleum
1,400 sq. ft. = 155 sq. yds.
$15/sq. yd. installed = $2,300
Ramp/Floor Repair $500
3. Electrical = Rough + Finish (Fixtures)
$1. 95/sq. ft. (Floor)
4. Painting - Prime + Z Coats
$2.35/sq. ft. (Floor)
5. Glass Work
2 Large (New) Windows (Face East)
S800/ea. IncludIng labor
2 Sky1 ights (Opening) - $800/ea. includIng
labor
6. Carpentry
Walls (Rough) - 20 hours x S20/hr.
Finish - 40 hours x $20/hr.
7. Doors
Exteriors (2 Ne\oJ) - S300/ea. including
HDW Locks
Interior (7) - S125/ea.
8. Heating
Add 2, 4 are In place
($SOO/ea. including labor)
9. Plumbing
Rough - I New Bathroom/Kitchen
Renovate Present
e
LICENSE #419680
1,400 sq. ft.
$
900
2,800
2,700
3,300
3,200
1,200
1 ,500
1,000
1,000
ATTACHMENT B
I of 2
co~r1UNITY S~RV~ PROJECTS (co~t)
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A-3
CC."""'lJNIT'f
OU~';(EAC,
u.,7!NO RESClJRCE CRGp.Nrz.!l,rC~~
SANT;" :-'ClNICA tAID CITY hEIGH30RS
lDl,:"OO :::>BG
117,338 :;RS I
i
-.,
43,836 GRS
i3, 681 GKS
51),000 STA"'c
G FI,;ND
20,ODO G. FUND
!
30,JOO :G. "'1.;/.0 t
I
I I.
30,9gl IG "'U~iD 1
(DSG
1+4,720 G. FI,,;ND n
C:lSG Jessi I
51,200 VIT-GIL. I
I
CC::A.\1 ?ARK COM-\;NliY :~G.\~HZA7ICN
~ICO NEIG~60R~ ASSOCIATION
WISE SE~IOR :R!~e ~~EVENTICN ~ROGRA~
CCI"MlJrJl7'V CRIME PI:1EVENTICN "'UND
CI7Y CRI~E PR~/E'\ITICN ~ROG~
CITY OFFICE FOR "'HE DISAB~-n
RADIO KCRW (COLNCIL BROADCASTS)
=.M~GENCY FOOD
AN) Si-IEL. -=:R
8"'.ERG~"lCY "'000 AND SHEL T=~ ;=Ut-.D
PARA7~NSI"" "'CR
JIS & ""LDEi(LY WISE ?ARATRPtSIT Pl:lOGAA"l
5.), :JOO PROP A
rt>lpI:10VE-'E'-lT 01=
HOUSI~ CJND.; ',IESTSIDE COM>1 FOR ['D. LIVING ('NeIL)
HOUS I NG LAW ~F
'NISE SENIOR S'"'ARED HQUSII\G P~CNGRAM
C5G ....OB~
JOSS
TEf-w.T COUNSELII\G I; ASSISTANCE F\J~
i
55,auo ! G. =t.ND
1
I.
TOTAL C~jNITY SERVICE pqOJECTS
$1,794,184
-)
I