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Home My WebLink AboutMINUTES - 05102011 - SD.10RECOMMENDATION(S): 1. APPROVE the Family and Human Services Committee recommendations for the allocation of $596,500 in FY 2011/12 Community Development Block Grant (CDBG) funds in the Public Service category and $199,839 in FY 2011/12 Emergency Shelter Grant (ESG) funds (Attachment A); 2. APPROVE the Finance Committee recommendations for the allocation of $527,000 in FY 2011/12 CDBG funds in the Economic Development category (Attachment B); and the allocation of $139,421 in FY 2011/12 CDBG funds in the Infrastructure/Public Facilities category (Attachment C); 3. APPROVE the Affordable Housing Finance Committee recommendations for the allocation of $2,495,665 in CDBG funds ($1,338,565 in FY 2011/12, and $1,157,100 in FY 2010/11 Housing Development Assistance Funds (HDAF)) in the CDBG-Housing category (Attachment D); 4. APPROVE the Affordable Housing Finance Committee recommendations for the allocation of $3,231,501 in HOME Investment Partnership Act funds ($2,559,035 in FY APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/10/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Bob Calkins, 925-335-7220 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 10, 2011 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: SD.10 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:May 10, 2011 Contra Costa County Subject:RECOMMENDED FY 2011/12 CDBG, HOME AND ESG PROGRAM FUNDING ALLOCATIONS 2011/12 funds, and $672,466 in FY 2010/11 HDAF funds (Attachment D); 5. RECOMMENDATION(S): (CONT'D) ADOPT AND APPROVE the FY 2011/12 Action Plan (Attachment E); 6. DETERMINE that the FY 2011/12 Action Plan is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA guidelines; 7. AUTHORIZE the Conservation and Development Director, or designee, to execute the appropriate documents for transmittal to the U.S. Department of Housing & Urban Development; 8. DIRECT the Conservation and Development Director to file a Notice of Exemption for the Action Plan with the County Clerk; 9. DIRECT the Department of Conservation and Development Director to arrange for payment of the $50 handling fee to the County Clerk for filing such Notice of Exemption; 10. AUTHORIZE the Conservation and Development Director, or designee, to execute the CDBG, HOME, and ESG program Agreements as approved in the Action Plan by the Board of Supervisors. FISCAL IMPACT: No General Fund impact. All funds are provided to the County on a formula basis through the U.S. Department of Housing and Urban Development (HUD). CFDA#'s: 14.218 (CDBG); 14.239 (HOME); and 14.231 (ESG). BACKGROUND: COMMUNITY DEVELOPMENT BLOCK GRANT: This is the thirty-sixth year of the CDBG program. The primary objective of the program is the development of viable urban communities through the provision of decent housing, a suitable living environment, and economic opportunity, principally to very-low and low-income persons/households. Funds are allocated annually to eligible Entitlement Jurisdictions by HUD on a formula basis. The County's Department of Conservation and Development administers the CDBG funds on behalf of the Urban County that includes the unincorporated County and all cities except Antioch, Concord, Pittsburg, Richmond, and Walnut Creek, who administer independent CDBG programs. The FY 2011/12 funding recommendations by the Board of Supervisors' Committees allocate funds to projects/programs that benefit extremely-low, very-low and low-income communities, households, persons, and special needs populations. HOME INVESTMENT PARTNERSHIPS ACT: The purpose of the HOME Program is to increase and maintain the supply of affordable housing for lower income households. Funds are allocated to eligible Participating Jurisdictions (PJs) and Consortia on a formula basis by HUD. The Contra Costa Consortium consists of the unincorporated County plus all cities except Richmond. The City of Richmond is an independent HOME PJ. As the Consortium representative, the County is responsible for administration and management of the HOME program. The required notice on the proposed use of funds as described in the Action Plan was published on April 10, 2011 in the Contra Costa Times. BOARD OF SUPERVISORS FUNDING GUIDELINES: On February 28, 2006, the Board of Supervisors amended its funding guidelines, originally adopted in 1993, for use of CDBG funds as follows: Housing - 45.1%; Public Services - 15.0%; Economic Development - 14.0%; Infrastructure/Public Facility - 3.9%; Contingency - 2.0%; and Program Administration -20.0%. For FY 2011/12, the Family and Human Services Committee and the Finance Committee recommend allocating the “Contingency” funds to Economic Development and Infrastructure/Public Facility projects because if the funds were allocated to Public Service projects, the County would exceed the CDBG program regulatory cap on funds allocated to public service projects. FAMILY AND HUMAN SERVICES, FINANCE, AND AFFORDABLE HOUSING FINANCE COMMITTEE FUNDING RECOMMENDATIONS: Funding recommendations were made by the following Committees: Family and Human Services – CDBG Public Service category and Emergency Shelter Grant (ESG) projects (Attachment A); Finance Committee – Economic Development category (Attachment B) and Infrastructure/Public Facilities category (Attachment C); Affordable Housing Finance Committee – Housing category (Attachment D). Family and Human Services Committee: The Family and Human Services (FHS) Committee met on April 11, 2011 to consider staff recommendations for FY 2011/12 CDBG Public Service projects and ESG projects. Because FY 2011/12 will be the second year of the current two-year funding cycle, there were no new applications to be considered - currently funded agencies were required to only submit an abbreviated renewal application. The FHS Committee meeting was noticed and grantees were encouraged to attend the meeting and provide input into the allocation process. Various agencies attended the meeting and expressed support of staff recommendations. The FHS Committee considered staff funding recommendations and approved the recommended amounts as presented in Attachment A. Finance Committee: The Finance Committee met on April 4, 2011 to consider staff funding recommendations for Economic Development and Infrastructure/Public Facilities projects. Because FY 2011/12 will be the second year of the current two-year funding cycle, there were no new applications to be considered - currently funded agencies were required to only submit an abbreviated renewal application. The meeting was noticed and project applicants were encouraged to attend the meeting and provide input into the allocation process. Various agencies attended the meeting and had no comment regarding staff recommendations. The Finance Committee approved the recommendations as listed in Attachment B and Attachment C. Affordable Housing Finance Committee: On June 27, 1995, the Board of Supervisors established the Affordable Housing Finance Committee (AHFC) to work with the Department of Conservation and Development to develop recommendations for the Board concerning the allocation of CDBG and HOME funds for affordable housing development. The current funding recommendations are the result of a competitive application process initiated in October of 2010. A Notice of Funding Availability was sent to over 100 jurisdictions, public agencies, affordable housing developers and interest groups active in the Urban County and Consortium area. The Department received 12 applications requesting approximately $10 million ($3.9 million in CDBG funds and $6.1 million in HOME). The AHFC met on April 7, 2011 to consider staff funding recommendations for CDBG-housing and HOME projects. Members of the public, including project sponsors, were invited to attend and provide input into the allocation process. Following discussion and comment on each project, the AHFC developed recommendations for the allocation of CDBG and HOME funds for affordable housing programs and projects. Attachment D provides a summary of the AHFC actions. CEQA review: All of the housing projects will undergo CEQA review before the County enters into project agreements and/or loan documents. Legal Documents: The Department of Conservation and Development will enter into a CDBG Project Agreement with Housing Authority for its Rental Rehabilitation Program. All other projects will be entering into various legal documents with the County in addition to a CDBG or HOME project agreement. These documents may include some or all of the following: Loan Agreement, Promissory Note, Deed of Trust and Security Agreement, Regulatory Agreement, Intercreditor Agreement, Subordination Agreement, Loan Riders and Estoppels. The form of these documents will be submitted for Board of Supervisors approval at a later date, but prior to execution of any legal documents. FY 2011/12 ACTION PLAN: The Action Plan describes the activities the County will undertake during the program year to address priority needs identified in the Contra Costa County FY 2010-15 Consolidated Plan. The Action Plan identifies the use of grant funds and program income received during the program year by activity, and proposed accomplishments. The Plan also includes actions the County proposes to undertake during the year to address obstacles in meeting under-served persons, foster and maintain affordable housing, reduce the number of households living under the poverty level, and enhance coordination between public and private housing and social service agencies. In order to begin the program year on time, the FY 2011/12 Action Plan must be approved by the Board and submitted to HUD by May 16, 2011. CALIFORNIA ENVIRONMENTAL QUALITY ACT: The Action Plan is exempt from CEQA review. However, individual projects may be subject to further review, which will be undertaken by the project's lead agency. CONSEQUENCE OF NEGATIVE ACTION: Because the County must submit its application for CDBG, HOME and ESG funding to HUD by May 16, 2011, delay in approving the recommendations by the Committees may result in the County not submitting its application on time. CHILDREN'S IMPACT STATEMENT: Most of the projects and programs funded with CDBG, HOME, and ESG funds address at least one of the five community outcomes established in the Children's Report Card. CLERK'S ADDENDUM Speakers: Doug Stimpson, Habitat for Humanity East Bay; Laura Simpson, Program Manager for City of Walnut Creek. ADOPTED recommendations 1-3 and 5-10 as presented; ADOPTED recommendation 4 as modified to allocate $510,000 of the remaining balance to the Pleasant Creek Homes project in Walnut Creek. ATTACHMENTS FHS Committee Recommendations (PS and ESG) Finance Committee Recommendations (ED) Finance Committee Recommendations (IPF) Affordable Housing Finance Committee Recommendations (HSG) Draft Action Plan