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SR-300-002-01 (75) CCS:HS:BS:JR:SL:F:\HSD\SHARE\STREPTS\AP0102.WPD Council Meeting: June 19, 2001 Santa Monica, California TO: Mayor and Councilmembers FROM: City Staff SUBJECT: FY 2001-02 One-Year Action Plan as Required by the U.S. Department of Housing and Urban Development (HUD) INTRODUCTION The City of Santa Monica receives annual Community Development Block Grant (CDBG) and HOME entitlement grants from the U.S. Department of Housing and Urban Development (HUD). In order to receive and use these funds, the City is required to hold a public hearing and submit the FY 2001-02 One-Year Action Plan (Attachment I) to HUD. BACKGROUND The attached One-Year Action Plan is submitted annually to HUD. It delineates the Citys = specific projects and activities for one-year use of CDBG and HOME funds in order to meet the Citys overall housing and community development needs as specified in the = Consolidated Plan (FY 2000-05) adopted by City Council and submitted to HUD in June 2000. DISCUSSION The proposed FY 2001-02 HOME and CDBG allocations are summarized below: 1 Summary of Proposed FY 2001-02 HOME & CDBG Allocations PROPOSED PURPOSE FY 2001-02 HOME Allocations Citywide Affordable Housing Program (CIP) $1,397,788 Tenant-Based Rental Assistance $153,082 CHDO Operating Expenses $32,100 HOME Program Administration $82,100 Subtotal $1,665,070 CDBG Allocations CDBG Program Administration $163,000 Public Service (15% cap)* $311,700 CIP/Capital Projects Citywide Curb Cuts (CIP) $100,000 Citywide Affordable Housing Program (CIP) $1,928,096 Samoshel Renovation $400,000 Virginia Avenue Park Improvements (CIP) $340,000 Residential Repair Program $300,000 Accessibility Modifications $17,425 Pedestrian Push Buttons for People with Disabilities (CIP) $60,000 Subtotal $3,620,221 Total $5,285,291 *Grants funded through the City’s Community Development Program 2 FISCAL/BUDGETARY IMPACT HOME funds have been increased from $744,000 to $821,000 (a 10% increase) over the FY 2000-01 entitlement award and CDBG funds have been increased from $1,557,000 to $1,595,844 (a 1% increase). CDBG program income of $2,024,377 is estimated from the repayment of a loan on 708 Pico Blvd., Multi-Family Earthquake Repair Loan (MERL) program and the rental of the Pico/Cloverfield site. HOME program income of $844,070 is estimated from the repayment of a loan on 708 Pico Blvd. and the Multi-Family Earthquake Repair Loan (MERL) program. All HOME and CDBG funding recommendations and revenue projections are included as part of the City Proposed FY 2001-02 Budget. RECOMMENDATION City staff recommends that the City Council convene a public hearing for public comment and adopt the FY 2001-02 One-Year Action Plan (Attachment I) as required by the U.S. Department of Housing and Urban Development (HUD). Prepared by: Barbara Stinchfield, Director Julie Rusk, Human Services Manager Susan Lai, CDBG Coordinator Community and Cultural Services Department Jeff Mathieu, Director Bob Moncrief, Housing Manager Mike Strader, HOME Coordinator Resource Management Department Attachment I - Proposed One-Year Action Plan (FY 2001-02) 3