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Home My WebLink About1996-06-24 City Council (24)City of Palo Alto C ty Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: Planning and Community Environment AGENDA DATE: JUNE 24, 1996 CMR:322:96 SUBJECT:AMENDMENT TO RESOLUTION NO. 7584 PERTAINING TO FISCAL YEAR 1996-97 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATIONS REQUEST The purpose of this report is to request that Council adopt a Resolution amending funding Resolution No. 7584 adopted on May 6, 1996 for the 1996-97 CDBG Program year. The amendment modifies the actual amount of the CDBG allocation from the U.S. Department of Housing and Urban Development (HUD), and changes the amount of the allocations to specific projects in accordance with the contingency funding plan outlined in Resolution No. 7584. RECOMMENDATIONS Staff recommends that the Council adopt the Resolution amending Resolution No. 7584, which increases the amount of the CDBG allocation from HUD from an estimated figure of $772,680 to an actual figure of $792,000; and increases the grant amounts available to Catholic Charities, Emergency Housing Consortium, Innovative Housing, Mid-Peninsula Citizens for Fair Housing, and the City ofPalo Alto’s Housing Development Fund. BACKGROUND Due to the federal budget impasse in Washington, the exact amount of the City’s 1996/97 CDBG allocation was unknown at the time of the staff and the CDBG Citizens Advisory Committee (CAC) application review process. In order to proceed with the process, certain assumptions were made about the amount of the grant; and a contingency plan was suggested which outlined the process to be followed if the grant amount from HUD were greater (or less) than anticipated. The funding recommendations and contingency plan were adopted by Council on May 6, 1996 in Resolution No 7584. The City Attorney’s Office has advised that an amendment of the Resolution is required in order to increase the allocations to the agencies specified in the contingency plan. CMR:322:96 Page 1 off On May 9, 1996, the Mayor was notified by letter that the amount of the 1996-97 CDBG grant from HUD was $792,000. Although this amount represents a 4 percent decrease from the 1995-96 CDBG allocation of $822,000, it is an increase of $19,320 over the estimated grant amount of $772,680. POLICY IMPLICATIONS The amended 1996/97 CDBG Program and funding recommendations do not represent any change to existing City policies. DISCUSSION The attached chart shows the changes to the allocations based on the estimated and actual amounts of the grant. The City’s May 15, 1996 application to HUD for the 1996/97 CDBG funds (The 1996/97 Action Plan) was updated to reflect the allocations based on the actual grant amount. FISCAL IMPACT The attached Resolution will increase the amount of funds available to the City for programs and projects which benefit lower income residents. ENVIRONMENTAL ASSESSMENT Approval of this amended resolution does not constitute a project under the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment 1: Attachment 2: Amendment to Resolution No. 7584 Revised Funding Chart CC:CDBG Applicant Agencies CDBG Citizens Advisory Committee PREPARED BY: Suzanne Richards DEPARTMENT HEAD REVIEW: KENNETH R. SCHREIBER Director of Planning and Community Environment CMR:322:96 Page 2 of 3 CITY MANAGER APPROVAL: ~ FLEMING Cit~ Manager CMR:322:96 Page 3 of 3 RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING RESOLUTION NO.7584 PERTAINING TO COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING ALLOCATIONS FOR FISCAL YEAR 1996-1997 WHEREAS, on May 6, 1996, the Council adopted Resolution No. 7584 pertaining to fiscal year 1996-97 Community Development Block Grant ("CDBG") funding allocations made to 13 specified programs based on anticipated CDBG allocations to be made by the United ..States Department of Housing and Urban Development; and WHEREAS, the City of Palo Alto has received a final determination of these CDBG funding allocations, and five of the thirteen programs are affected; NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION i. Section 1 of Resolution No. 7584 is hereby amended in its entirety, to read as follows: "SECTION i. The uses of CDBG funds for fiscal year 1996-97 are hereby approved and authorized for the following programs: Catholic Charities of Santa Clara County. Long Term Care Ombudsman Program. Complaint investigation and advocacy services to Palo Alto’s elderly residents living in nursing and residential care facilities. City-wide.$ 13,400 Emergency Housing Consortium. EHC provides temporary shelter and supportive services for homeless individuals and families. County-wide.10,900 Innovative Housing. IH manages shared and transitional housing programs, and provides supportive services primarily for very low income single parents, individuals or families. City-wideo Palo Alto Housing Corporation. Project is to provide information and referral services for affordable housing options, a supportive counseling program for the Barker Hotel, and an update of the affordable housing directory. City-wide. 13,500 29,300 960611 syn 0070985 1 o o i0. ii. 12. Urban Ministry of Palo Alto. Provision of basic support services to homeless individuals including the provision of emergency food and a rotating church shelter program° City-wideo Outreach and Escort, Inc~ Transportation subsidies for eligible low income disabled Palo Alto residents registered through the County of Santa Clara’s Special Needs Transportation program. City-wide. Mid-Peninsula Citizens for Fair Housing. MCFH provides services to promote fair housing, including complaint investigation, counseling, advocacy and education. City-wide. City of Palo AltOo Department of Planning and Community Environment. Overall CDBG grant administration and capital improve- ment project delivery costs associated with federal funding. City-wide. Senior Coordinating Council. SCC operates the Home Repair Program. This project ~provides subsidies for minor home repairs for lower income elderly homeowners. City-wide. Innovative Housing. Rehabilitation of a shared transitional single-family house in East Palo Alto. Innovative Housing provides subsidized rents and supportive services for low-income, homeless and at-risk persons°2800 Illinois St., East Palo Alto. Arastradero Park Apartments Corp., an affiliate of the Palo Alto Housing Corporation. Arastradero Park Apart- ments Water Replacement project. Improvements to water-supply system in 66 unit family complex. 574 Arastradero Rd., Palo Alto. Palo Alto Housing Corporation. Emerson No. Apartments. Rehabilitation of a six-unit studio apartment complex affordable to small households° 3051-3061 Emerson St., Palo Alto. 58,000 6,000 19,600 180,000 12,000 21,000 286,380 69,300 , 960611 syn 00709~5 2 13.City of. Palo Alto. New Housing Develop- ment Account. Funding for projects which would preserve or increase the number of h~using units in the City affordable to persons with Low-Income and Very-Low Income. City-wide.363,832 TOTAL:$1,083,212" SECTION 2. Section 3 of Resolution No. 7584 is hereby amended in its entirety, to read as follows: "The total amount set forth under Section 1 of this resolution hereby represents the allocation of $792,000 in CDBG funds, from the United States Department of Housing and Urban Development ("HUD") for fiscal year 1996-97, $60,000 in antici- pated program income for fiscal year 1996-97, $200,000 in un- allocated program income from prior program years, and $31,212 in reallocated funds." SECTION 3. Except as amended hereby, the provisions of Resolution No. 7584 shall remain in full force and effect. SECTION 4. The Council hereby finds that the amendment to Resolution No. 7584 does not constitute a project under the California Environmental Quality’ Act ("CEQA"),therefore, no environmental assessment is needed. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED AS TO CONTENT: Mayor City Manager Director of Planning and Community Environment CDBG Coordinator Deputy City Manager, Administrative Services 960611 syn 0070985 REVISED 1996/97 CDBG FUNDING ALLOCATIONS ESTIMATED ALLOCATION FINAL ALLOCATION SOURCE OF FUNDS: 1996/97 CDBG Grant 1996/97 Program Income (estimate) Reallocation of previously allocated funds Prior unprogrammed Program Income Total 772,680 792~000 60,000 60,000 31,212 31,212 200,000 200,000 ,1,063,892 1,083,212 USE OF FUNDS: 1. Catholic Charities Long-Term Care Ombudsman Program 2. Emergency Housing Consortium Homeless Services/County-wide 3. Innovative Housing Shared Housing Services 4. Palo Alto Housing Corporation Affordable Housing Services 5. Urban Ministry Homeless Services/Palo Alto 6. Outreach & Escort Paratransit Subsidies 7. Mid-Peninsula Citizens for Fair Housing Fair Housing Services 8. City of Palo Alto Administration & Project Delivery 9. Senior Coordinating Council Senior Home Repair Subsidies 10. Innovative Housing - Illinois St, EPA Rehab of shared/transitional house 11, Palo Alto Housing Corporation Arastradero Park water supply system 12. Palo Alto Housing Corporation Emerson North Apt. Rehab 13. City of Palo Alto Housing Development Fund Total :12,900 10,500 13~000 29,300 58,000 6,000 :1~000. 180,000 12,000 21,000 286,380 69,30O 1,063,892 13~00 10,900 13;500 29,300 58,000 6,000 19,600 180,000 12,000 21,000 286,380 69,300 363,832 1,083~12