SR-407-000-03 (4)
CCS:HS:JR:SL:F:\HSD\SHARE\CDBG HUD\Staff Reports\FY 2001-02 Con Plan Amendment.doc
Council Meeting: March 26, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Public Hearing and Approval of an Amendment to the Consolidated Plan (FY
2000-05) as Required by the U.S. Department of Housing and Urban
Development (HUD)
INTRODUCTION
This report recommends the City Council hold a public hearing to approve an amendment
to the Consolidated Plan (Attachment I) 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 CDBG and HOME funds in order to meet these needs. 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.”
DISCUSSION
An amendment to the City of Santa Monica’s Consolidated Plan is necessary in order to
allocate CDBG program income, not previously described in the Action Plan, and make a
change in its allocation priorities in order to expedite the expenditure of CDBG funds for
affordable housing projects. CDBG program income of $2 million for FY 2001-02 was
projected in the FY 2001-02 Action Plan. However, three properties assisted with CDBG
earthquake funds were recently sold by the property owners, resulting in unanticipated
additional program income of $1.4 million, which staff proposes to allocate to eligible costs
associated with new construction and acquisition/rehabilitation of multi-family properties for
low-income and very low-income persons.
In addition, prior year CDBG funds ($220,000) had been allocated to the Pier Access
Elevator project as indicated in the FY 1998-99 One-Year Action Plan. This proposed
project was to make the pier accessible for people with disabilities. Since the building of
an accessible elevator from the ground floor to the pier deck is one of the provisions in the
current signed lease agreement with the new tenant, staff now proposes to reprogram the
$220,000 to eligible costs associated with new construction and acquisition/rehabilitation
of multi-family properties for low-income and very low-income persons. 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.
In the Proposed FY 2002-03 Action Plan, which will be going to City Council on June 18,
staff will propose the reallocation of unobligated CDBG funds, as well as approximately
40% of the FY 2002-03 CDBG entitlement, to the Virginia Avenue Park Expansion project,
which is currently underfunded and scheduled for construction in FY 2002-03.
BUDGET/FINANCIAL IMPACT
Community Development Block Grant (CDBG) funds in the amount of $1,620,000 are
proposed to support new construction and acquisition/rehabilitation of multi-family
properties for low-income and very low-income persons. Funds are available in account
C19005002.589000.
RECOMMENDATION
City staff recommends the City Council hold a public hearing and approve an amendment
to the Consolidated 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, Senior Administrative Analyst
Community and Cultural Services Department
Jeff Mathieu, Director
Bob Moncrief, Housing and Redevelopment Manager
Martin Kennerly, Administrative Services Officer
Resource Management Department
Attachment I - Amendment to the Consolidated Plan (NOT AVAILABLE VIA
ELECTRONICALLY)
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
February 2002
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