Loading...
SR-300-002-01 (79) TO: Mayor and City Council FROM: City Staff SUBJECT: Public Hearing, Approval of an Amendment to the Consolidated Plan (FY 2000-05) as required by the U.S. Department of Housing and Urban Development (HUD) and Approval of the Budget Appropriation INTRODUCTION This report recommends the City Council hold a public hearing to approve an amendment to the Consolidated Plan (Attachment A) as required by the U.S. Department of Housing and Urban Development (HUD). BACKGROUND The City’s Consolidated Plan (FY 2000-05) was adopted by City Council and submitted to HUD in June 2000 and specifies the City’s overall housing and community development needs. The City’s One-Year Action Plan, which is a component of the Consolidated Plan, is submitted annually to HUD and delineates the City’s specific projects and activities for one-year use of Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds to achieve these activities. According to Federal regulations, the City “shall amend its approved plan whenever it makes one of the following decisions: 1) to make a change in its allocation priorities or a change in the method of distribution of funds; 2) to carry out an activity, using funds from any program covered by the Consolidated Plan (including program income), not previously described in the action plan; or 3) to change the purpose, scope, location, or beneficiaries of an activity.” DUNS #: 074152596 DISCUSSION An amendment to the City of Santa Monica’s Consolidated Plan is necessary to allocate HOME program income not previously described in the Action Plan, and to make a change in its allocation priorities to expedite the expenditure of HOME funds for affordable rental housing assistance. HOME program income of $29,000 for FY 2004- 05 was projected in the FY 2004-05 Action Plan. However, an additional $444,064 of program income was received from residual receipt payments as a result of HOME funds loaned as part of the Multifamily Earthquake Repair Loan (MERL) program. City staff is proposing to allocate the additional program income of $444,064 plus regular HOME funds of $179,000 for a total of $623,064 to support the HOME Tenant Based Rental Assistance (TBRA) program. Additional funding for the HOME TBRA program will provide an additional twenty-eight vouchers, for a total of forty vouchers. This is consistent with the housing priority identified in the Consolidated Plan, to expand the supply of housing affordable to lower and moderate-income households, particularly for renters. BUDGET/FINANCIAL IMPACT The HOME program income funds are available in reserve account 20.345158. An appropriation of $444,064 is required at account H20005005.589000. City of Santa Monica Action Plan for FY 2004-05 Page 2 DUNS #: 074152596 RECOMMENDATION City staff recommends the City Council hold a public hearing, approve an amendment to the Consolidated Plan (Attachment A) as required by the U.S. Department of Housing and Urban Development (HUD) and approve the budget appropriation shown above. Prepared by: Jeff Mathieu, Director, Resource Management Department Bob Moncrief, Housing and Redevelopment Manager Martin Kennerly, Administrative Services Officer Ron Barefield, Housing Administrator Mike Strader, Senior Administrative Analyst Attachment A - Amendment to the Consolidated Plan City of Santa Monica Action Plan for FY 2004-05 Page 3 DUNS #: 074152596 CITY OF SANTA MONICA Amendment to Consolidated Plan (FY 2000-05) Submitted to the U.S. Department of Housing and Urban Development HUMAN SERVICES DIVISION Community and Cultural Services Department HOUSING AND REDEVELOPMENT DIVISION Resource Management Department 1685 Main Street, Room 212, Santa Monica, California 90401 Telephone (310) 458-8701 FAX (310) 458-3380 TDD (310) 458-8696 Website: www.human-services.santa-monica.org September 2004 City of Santa Monica Action Plan for FY 2004-05 Page 4 DUNS #: 074152596 City of Santa Monica FY 2004-05 Amended Action Plan The One-Year Action Plan is submitted annually to the U.S. Department of Housing and Urban Development (HUD). It delineates the City’s specific projects and activities for one-year use of Community Development Block Grant (CDBG) and HOME funds in order to meet the City’s 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. According to Federal regulations, the City “shall amend its approved plan whenever it makes one of the following decisions: 1) to make a change in its allocation priorities or a change in the method of distribution of funds; 2) to carry out an activity, using funds from any program covered by the consolidated plan (including program income), not previously described in the action plan; or 3) to change the purpose, scope, location, or beneficiaries of an activity.” An amendment to the City of Santa Monica’s Consolidated Plan is necessary in order to allocate HOME Investment Partnership (HOME) program income not previously described in the FY 2004-05 Action Plan. HOME program income of $29,000 for FY 2004-05 was projected in the FY 2004-05 Action Plan. However, an additional $444,064 of income was received from residual receipt payments from HOME funds loaned as part of the Multifamily Earthquake Repair Loan (MERL) program for total program income of $473,064. The City proposes to allocate the additional program income of $444,064 plus regular HOME funds of $179,000 for a total of $623,064 to support the HOME Tenant Based Rental Assistance (TBRA) program. Additional funding for the HOME TBRA program will provide an additional twenty-eight vouchers, for a total of forty vouchers. This is consistent with one of the housing priorities identified in the Consolidated Plan, which is to expand the supply of housing affordable to lower and moderate-income households, particularly for renters. City of Santa Monica Action Plan for FY 2004-05 Page 5