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SR-300-002-01 (67) 300 - t?02-tt?/ i--A C/ED:CNS:RE:sh:req city Council Meeting 5/24/88 MAY 2 4 1988 Santa Monica, California TO: Mayor and City council ./ SUBJECT: city Staff Request to Hold a Public Hearing and to Hear Public Comment on the Proposed 1988-89 Community Development Plan and to Approve a Resolution Approving the 1988-89 Community Development Plan and Authorizing Submission of the "Proposed statement of Community Development objectives and proj ected Use of Funds" to the U. S . Department of Housing and Urban Development FROM: Introduction This report requests that the city Council hold a public hearing and adopt the attached Resolution: (1) approving the Proposed 1988-89 Community Development Plan; (2) authorizing the city Manager to negotiate contracts with all grantees specified in the Plan: and (3) authorizing the submittal of all documents required for the implementation of the 1988-89 community Development Block Grant (CDBG) program to the U.s. Department of Housing and Urban Development (HUD). One of these documents, the "Proposed statement of community Development Obj ecti ves and proj ected Use of Funds,t1 is also attached to this report for Council review. Background On April 22, 1988, the city Council received the initial draft of the Proposed 1988-89 Community Development Plan, containing staff recommendations for all projects to be funded under the community Development Program in 1988-89. This plan conforms to required - 1 - I-A MAy 24 1988 formats of the local CDBG Ordinance and of federal HUD regulations. On May 5th, a pUblic hearing was held for the purpose of accepting comments on the draft Plan. While helpful comments were received, these comments did not result in any change to the initial funding recommendations. The final Proposed Plan attached to this report does contain one change from the draft transmitted earlier. The change concerns an increase in funding to the Neighborhood Support Center (NSC). Based upon further staff review of the impact of the proposed transfer of citizen participation and neighborhood planning activities from pi co Neighborhood Association to the NSC and discussions with NSC Board of Director representatives, staff has increased the funding recommendation of the NSC to implement the anticipated workplan activities related directly to the Pico Neighborhood. The level of support for the proposed enhancement to NSC is commensurate with the approved funding level in FY87-88 for Pico Neighborhood citizen participation activities. On May 9th, council also received a working document on the proposed Community Development Program which further explains the 1988-89 funding strategy and funding recommendations. This document has been prepared for use by the Council in preparing for the community Development Program Public Hearing scheduled for the May 24th Council meeting. After hearing public comments, Council is scheduled to adopt, through the approval of the attached resolution, the final 1988-89 Community Development Plan and to authorize the city Manager to begin contract negotiations with approved grantees. - 2 - In addition to approving the Plan, the attached resolution also requests approval of the nproposed Statement of Community Development Objectives and Projected Use of Funds." This document is required by HUD and represents the city's application for receipt of its 1988-89 COBG entitlement, along with a number of standard certifications to be signed by the City Manager. This document, as required by Federal regulations, has been published in the Evening Outlook and has been made available to the pUblic for review and comment. Financial/Budgetary Impact All necessary appropriations for recommended Community Development proj ects have been included in the City Manager IS Proposed City Budget for 1988-89. Any changes made by the council to the proposed funding levels included in the proposed Community Development Plan will necessitate corresponding changes in the City's budget prior to its adoption in June of 1988. Recommendations City staff recommends that the Council hold the public hearing and adopt the attached resol ution regarding the approval and submittal of the 1988-89 Community Development Plan. Prepared by: Rey Espana, Acting Community Development Manager Department of community and Economic Development Attachments - 3 - City of santa Monica PROPOSED STATEMENT OF COMMUNITY DEVELOPMENT OBJECTIVES AND PROJECTED USE OF FUNDS The following describes the proposed use of CDBG Entitlement funds planned for Fiscal Year 1988-89. Of these expenditures, 100% is being used for activities which meet the national objec- tive of primarily benefitting low and moderate-income persons. I. COMMUNITY DEVELOPMENT OBJECTIVES FOR FY 1988-89 o To maintain and improve affordable housing opportunities for low and moderate income persons. o To stablilize and enhance low and moderate income neighbor hoods through neighborhood revitalization and other com- munity development efforts. o To provide essential community services to residents most in need of these services. II. PROPOSED CDBG ACTIVITIES FOR 1988-89, THEIR LOCATION AND ESTIMATED COST community & Neighborhood Improvement Projects $1,989,832 Community service Projects 143,802 Project Contingencies 10/166 Program Administration 169,400 $2,313,200 - 1 - Sources of funds in support of the above activities include: Prior Year Funds $1,318,772 1988-89 Entitlement 958,678 Projected program Income 35,750 $2,313,200 specific projects recommended for funding include: Housinq $261,437 $ 15,000 $576,000 $ 56,605 PICO NEIGHBORHOOD RESIDENTIAL REHABILITATION PROGRAM - Residential Rehabilitation Grant Program (pico Neighborhood Area) RESIDENTIAL ACCESSIBILITY PROJECT - Minor acces- sibility improvements to residences of lower income households (Citywide) PICO NEIGHBORHOOD HOUSING TRUST FUND - Purchase & rehabilitation of affordable housing (Pico Neighborhood Area) COMMUNITY CORPORATION OF SANTA MONICA - Operating bud- get in support of CCSM's non-profit housing acquisi- tion & rehabilitation program (Citywide) $ 5,000 Neiqhborhood Revitalization PUBLIC WORKS ASSESSMENT ASSISTANCE - Assistance to low-income homeowners and tenants for public works improvement fees assessed by the City (Citywide) $ 25,000 612 COLORADO AVENUE PROJECT - Purchase of Architec- tural, Engineering and Rehabilitation management ser- vices for Homeless Shelter and support center funded with MCKinney Act monies. (CT.7019) $1,050,790 COMMUNITY SERVICE CENTER (CDBG PROJECT NO. 1108, FY85- 86) - Provides support for final pro rata share of construction costs of multi-service center now under construction. (CT. 7019) Community Services $143,802 EMPLOYMENT PROGRAMS & SOCIAL SERVICE ADVOCACY - Job advocacy, youth employment programs, child care scholarships and direct social service delivery (City- wide, Pi co Neighborhood) - 2 - Project contingency $ 10,166 COMMUNITY AND NEIGHBORHOOD IMPROVEMENT PROJECT CONTINGENCY Administration and Planning $169,400 PROGRAM ADMINISTRATION - General administration of the overall COBG Program. III. PROPOSED AMOUNT OF FUNDS TO BENEFIT LOW/MODERATE INCOME PERSONS 100% of the activities proposed for the 1988-89 CDBG Program will primarily benefit low and moderate income persons. Project funding for this purpose totals $2,143,800. DONNA R. BETANCOURT Acting city Clerk Approved As To Form ('W1......A ~ ~- Robert M. MyersQ City Attorney pscdopufjREj5-87 - 3 - (CCS) RESOLUTION NUMBER (city Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROVING COMMUNITY DEVELOPMENT PROJECTS FOR 1988-89 AND AUTHORIZING SUBMISSION OF STATEMENT OF OBJECTIVES FOR 1988-89 CDBG PROGRAM WHEREAS, the City of Santa Monica desires to undertake a Community Development Program in Fiscal Year 1988-89 to meet the community development needs of City residents: and WHEREAS, public hearings were held to receive comments on community development and housing needs and on the proposed Community Development Plan; and WHEREAS, the proposed Community Development Plan contains recommendations for specific Community and Neighborhood Improvement projects and Community service Projects to be approved by the city Council prior to implementation of the 1988-89 program, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The city Council of the City of Santa Monica approves the 1988-89 Community Development Plan on file with the city Clerk. SECTION 2. The city Manager is authorized on behalf of the Ci ty Council to negotiate and execute contracts with all grantees specified in the Community Development Plan. SECTION 3. The City Manager, as official representative, - I - is further authorized to submit to the United States Department of Housing and Urban Development (HUD) the final statement of Community Development Objectives and projected Use of Funds, all understandings and assurances contained therein, and any additional information as may be required. SECTION 4. All City Council approved projects shall be included in the 1988-89 City Budget. SECTION 5. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ~~\ ROBERT M. MYERS~ City Attorney :reso - 2 - PROPOSED 1988-89 CO~~UNITY DEVELOPMENT PLAN prepared by 198 8 COMMUNITY DEVELOPMENT PROGRAM 1 9 8 9 City of Santa Monica Ccpartment of Community & Economic Development May 9, 1988 I. !pe Community Development Proqr~m The City of Santa Monica's 1.988-89 Community Development Program will utilize approximately $5.3 million in Federal and local funds to support a variety of community development projects benefiting low and moderate income residents and other significant segments of the community in need of community services. These projects are divided into two major components: Conununity and Neighborhood Improvement Projects - Capital projects benefiting low and moderate income residents and neighborhoods. communi ty service Proj ects - operating grants to local, non-prOfit community service agencies for the provision of a range of social and community services. 'The program outlined in this document is the result of over six months of planning and review by the city council, City staff, City advisory commissions, and interested residents. Citizen input was received through a community Needs Workshop, "It's Time to Plann in December of 1987 and through various needs reports by commissions and Task Forces appointed by the Ci ty Council to advise the City on related community development issues. The result is a 1988-89 Community Development proq::-ara which is designed to address the most critical co~~unity development needs identified by this process. II. Fund Availability Community Development funds available to support the 1988-89 Community Development Program include: Total CDBG General Prop. A Rental Redeve1. Fund Rehab. 1!qency Conmunity & Neiqhborhood $ $196,000 $ 67,500 Improvements $2,399,227 $1,989,832 145,895 -0- , community services $2,931,691 $ 143,802 $2,445,355 $ 342,534 -0- -0- $5,330,918 $2,133,634 $2,591,250 $ 342,534 $196,000 $ 67,500 fpmmunity and Neighborhood Improvement Project Funding: This component has suffered the most severe revenue losses 1n the past several years. Since 1984-85, reductions in the city's annual CDBG entitlement as well as reducGd carryover funds from completed projects have required a corresponding reduction 1n the numbers and scope of projects that have been implemented. - 1 - In FY87-88, this component Communi ty Development Block Grant amount of Rental Rehabilitation Redevelopment Agency funds. The level of FY88 CDBG entitlement funding for 1988-89 has been reduced by 5.3% ($53,309) when compared to 1987-88. The longer-term future of the CDBG program is still uncertain with various proposals for reductions and targeting in 1989-90. relied primarily on Federal (COBG) funds and a 1 imi ted funds, General Funds and Community Service Funding: The 1988-89 funding base for Community Service project reflects the shift to primary dependence on the General Fund to support these projects. In order to maintain the current total funding base and give cost-af-living and one-time equipment and program increases to a limited number of specified service providers, the General Fund contribution will increase by approximately $136,000 over 1987-S8. Additionally, CDBG Public Service funds will increase by approximately $18,000. Proposition A funds for paratransit services are expected to remain at 1987-88 levels. It is important to note that this increased level of support is tied to the City's ability to generate additional revenues during the coming year which are required to meet these and many other funding needs. Therefore, the final General Fund contribution for 1988-89 will depend on the city's overall fiscal situation as determined during the 1988-89 budget process. In the event that General Funds are not available to maintain the level proposed in this plan, budget reductions or elimination of proposed programs would have to occur. Because this community Development Plan not only serves as a planning document for the entire Community Development program but also as the document detailing specific uses of COBG and Rental Rehabilitation Program funds required by the u.s. Department of Housing and Urban Development, additional detail on the availability of CnBG funds for J.988-89 is included in this Plan as Attachment A. In addition, a copy of the draft Rental Rehabilitation Program description is available in the Department of Community and Economic Development for any interested perons. III. Community Development Program Goals Representing a substantial annual investment of financial resources, the City'S Community Development Program provides the opportunity for City government and community agencies to act in concert to achieve the following broad goals: o to maintain and improve affordable housing opportunities for low and moderate income persons; o to stabilize and enhance low and moderate income neighborhoods through revitalization and other community development efforts: and - 2 - o to provide essential community services to residents most in need. IV. Community Development Program Areas In furtherance of the above program goals, the 1988-89 Communi ty Development Program focuses on the following program areas: Housing, Community Revitalization, and Community Services. This section summarizes community needs in each program area, outlines the strategy being employed to meet these needs, and presents those specific projects to be implemented in 1988-89. HOUSING Housing Needs o There is a need to provide new affordable housing opportunities for Santa Monica's low income families and senior citizens. o There is a need to assist low income residents paying more than 30% of their income on housing. o There is a need to alleviate overcrowding in existing units in order to prevent the displacement of Santa Monica's low income families in the community. o There is a need for rehabilitation of existing rental units and single family homes occupied by low and moderate income residents. o There is a need to maintain and expand housing opportunities in the Pico neighborhood due to the deterioration of the housing stock available to low and moderate income neighborhood residents. o There is a need to ensure the availabil i ty of housing that is physically accessible to low-income disabled residents. Housinq strategy consistent with the Cityts Housing Element adopted in 1983, a major thrust of the Community Development Program is to ensure and increase long-term access to affordable housing opportunities for low and moderate income residents. In coordination with other City housing projects funded primarily with Redevelopment Agency funds, priority is given to projects that can effectively leverage private capital and funds from other governmental housing sources. The 1988-89 community Development Program housing strategy targets the greatest portion of available funds to support on-going housing acquisition and rehabilitation efforts in the pi co Neighborhood. In addi tion to continuing the pico - 3 - Neighborhood Housing Trust Fund, the 1988-89 Program continues the Pi co Neighborhood Residential Rehabilitation Program which provides grants for repairs to rental units and single-family homes. Special attention is also given to the needs of low-income disabled residents through a city-wide program which will provide grab-bars, ramps and other accessibility improvements in order to allow individuals to remain independent in their own homes. This proj ect is a part of the continuing effort to create a barrier-free environment for Santa Monica. 1988-89 Housing Programs community corporation of Santa Monica Pico Neighborhood Housing Trust Fund Pico Neighborhood Residential Rehabilita- tion Program - Neighborhood Resource and Development Corporation (NRDC) City Residential Accessibility Project Rental Rehabilitation Program - Citywide CD Funds $ 56,605 576,000 26l,437 15,000 196,000 COMMUNITY REVITALIZATION Community Revitalization Needs o There is a need to support public works improvements benefiting low and moderate income persons. o There is a need to create better access to community services facilities for disabled individuals. Community Revitalization Strategy The Community Development Program is designed to contribute to the improvement of low and moderate income neighborhoods primarily through the initiation of one-time capital improvement projects. In addition, funds are used to rehabilitate or construct facilities to house important community and human service programs. Community Development funds are used for projects that will have a sustained impact on lower income neighborhoods and for community service facilities that serve significant segments of the community. In addition to the continuance of an ongoing public works assessment program for lower income residents, 1988-89 funding is targeted to providing resources for the architectural and engineering costs associated with implementation and development of the Ci ty' S McKinney Act funded homeless center and construction of the city's Community service Center. - 4 - 1988-89 Neighborhood Revitalization Projects Public Works Assessment Assistance CD Funds $ 5,000 612 Colorado Avenue Project (homeless advocacy center and shelter) 25,000 Community Service center* 1,050,790 *Note: The funding level reflects $850,790 in prior year funding made available with Redevelopment Agency loan repayment and proceeds from sale of City property (2233 Fifth st.) previously approved by city Council on April 12, 1988. COMMUNITY SERVICES Community service Needs o There is a need to support a comprehensive community service delivery system available to all residents in need of these services. o There is a need to increase access for those res idents who have underserved because of language, barriers. to community services traditionally been cuI tural or phys ical o There is a need to provide emergency services to those individuals in the community affected by economic recessions or decreases in governmental support for essential social services. o There is a need to improve and enhance community services for youth and families. o There is a need to decrease the isolation of the community's frail, elderly residents and to better coordinate existing services to this population. o There is a need to encourage citizen participation in the community and to foster neighborhood involvement by its residents. community Service strategy It is the long-tenn goal of the Community Development Program to sustain important community services through partial support of a broad-based, multi-funded community service system that provides access for Santa Monica residents. It is the intent of the program to provide financial resources and technical support to agencies serving a range of target groups including low income and minority residents, youth and families, senior citizens, disabled individuals, and the homeless. Through its substantial annual investment of operating grants to these - 5 - agencies, the City has . the opportunity to improve the overall quality of human serv1ces provided in the community. The Community Development Program promotes services that build upon existing governmental funding and private funding sources as well as encourages innovative programs created in response to identified emergency community needs. The 1988-89 Funding strategy represents the continuation of a modified two year cycle implemented in FY87-88. The FY87-88 strategy encouraged a competitive process that allowed the city to allocate its funds to the most needed and effective services. As a result, a number of program changes occurred, some programs were reduced or eliminated and several programs were added to the roster of City-funded programs or enhanced. Agencies operating effective, proven programs were placed on renewable contracts allowing for funding stability in FY88-89 contingent upon satisfactory performance and the availability of funds. Approximately 65% of all grantees were awarded funds through these renewable contracts. Therefore, for FY88-89, given the limited availability of funds not committed for renewable grants or fund restricted projects, no applications from new agencies or for new projects were accepted. As in FY87-88, particular emphasis is given to those programs that service the most in need - individuals who (a) lack an adequate income, (b) experience language or culture barriers, (c) are physically vulnerable or Cd) lack the informal or family supports necessary to provide for basic human service needs. Although FY 88-89 is the mid-year in a two year cycle, some changes have been made in funding levels. These come about in relation to the establishment of the Neighborhood Support Center in January of 1988, the indeterminate status of the Immigration Reform Act of 1986 and other changes in program performance and cost. Furthermore, with the implementation of the City Manager's youth working group and the Council directed legal services evaluation, there is a need to ensure that some funding flexibility be available for potential new or enhanced projects recommended by this research. For that reason, some funds have been allocated for one-time equipment or training costs rather than on-going programs. 1988-89 Community Service Projects Counseling/Mental Health: CD Funds Family Service of Santa Monica Jewish Family Service of Santa Monica New Start $104,472 14,061 127,331 Project Heavy West 20,965 Santa Monica Wests ide Hotline 1,040 Senior Health and Peer counseling Center l3,950 - 6 - Independent Living Services: Center for the Partially Sighted LIEU-CAP - Senior Outreach Program westside Center for Independent Living Westside Ecumenical Conference - Meals on Wheels Wests ide Independent services to the Elderly (WISE) - General Programs WISE - paratransit paratransit Set-aside for Possible Enhancement of WISE paratransit Emergency ~Response Services Legal Services: city Landlord Legal services Voucher Program Legal Aid Foundation of Los Angeles Neighborhood Justice Center Neighborhood Justice Center - School Mediation Project Wests ide Legal Services Westside Legal Services - Immigration Assistance Project EmploymentjChildcare ADEPT Catholic Youth organization Connections for Children Health Services: Senior Health and Peer counseling Center Venice Family Clinic Emergency Services: CLARE Foundation - Sober Inn LIEU-CAP - 7 - 11,440 31,969 28,589 20,560 273,202 325,035 17,499 2,000 61,889 45,504 27,336 1l4,045 34,403 33,5l4 75,000 148,078 55,580 53,218 86,528 72,271 Ocean Park Community Center Day Break Center for Women Drop-in Center/Homeless Outreach Team 107,506 197,880 Sojourn 38,044 stepping Stone Turning Point Shelter 45,909 133,268 st. Joseph's Center 37,856 Salvation Army step Up on Second St. West Side Food Bank 8,072 34,274 78,848 Citizen Participation/Community organizing: Neighborhood support Center 221,480 Latino Resource Organization 106,130 Radio KCRW 50,304 Pico Neighborhood Association 38,l65 Additional funding information on all 1988-89 Community Development Projects is included in Attachment B of this Plan. This attachment details, by project, the 1987-88 level of funding, requested funding for 1988-89, recommended 1988-89 funding level and identification of the particular revenue source for the project. Attachment C lists requests for one-time funding by agency. recommendations for funding and identification of each request by item or service. :cdplan2 - 8 - Attachment A 1988-89 Community Development Program Availability of Community Development Block Grant Funds Sources Prior Year Funds Available for Reprogramming for New 1988-89 Projects 1988-89 Entitlement $1,318,772 958,678 Projected Program Income 35,750 $2,313,200 Uses FY88-89 Community Development Projects Community and Neighborhood Improvement Projects $2,133,634 l,989,832 Community Service Projects Project Contingencies Program Administration 143,802 lO,1.66 169,400 $2,313,200 tQ +J t: Gl Iii! ..c:: u 10 +J +J < = e ~ Eo< liIl ~ S r.:l t Q ;1>01 Eo4 I-f i 8 ~ lilt I CIII lilt ~ ... (lI ... u CI "1"'\ o 104 Po II U .... t CD co >t ~ .... A ::I g o tJ I . I Co 04 I ~ 0. 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