Title
Public Hearing to Consider Amendments to the Community Development Block Grant (CDBG) Action Plans for Fiscal Years 2010-2011 through 2017-2018, Allocating $550,000 in CDBG Funds to Demolish Buildings at North Housing Site on Property to be Conveyed to the City and Habitat for Humanity, and Authorize the City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications. (Housing 236)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Public Hearing to Consider Amendments to the Community Development Block Grant (CDBG) Action Plans for Fiscal Years 2010-2011 through 2017-2018, Allocating $550,000 in CDBG Funds to Demolish Buildings at North Housing Site on property to be conveyed to the City and Habitat for Humanity, and Authorize the City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications.
BACKGROUND
The City of Alameda is an entitlement recipient of Community Development Block Grant (CDBG) funds from the Federal Department of Housing and Urban Development (HUD). Each year, the City receives an allocation of approximately $1 million of CDBG funding. CDBG funds can be used to finance programs and activities that benefit low- and moderate-income households and to help prevent or eliminate blight. To receive CDBG funding, the City has to submit to HUD an annual Action Plan detailing the programs and activities that address the needs identified in the City’s approved Five-Year Consolidated Plan. The Action Plan is approved by the City Council and includes programs, activities, and the associated funding amounts for the fiscal year. A public hearing is required for any amendment to the annual Action Plan if the City cancels an activity, adds an activity, or substantially changes the purpose, scope, location, or beneficiaries of an activity.
Staff is proposing amendments to the Action Plans for Fiscal Years 2010-2011 through 2017-2018. The amendments are outlined in Exhibit 1 and would allocate $550,000 in CDBG funds to demolish three buildings at North Housing on property to be conveyed to the City and Habitat for Humanity. The buildings need to be demolished so the future extension of Mosely Avenue can be constructed and new affordable housing can be built.
All citizen participation requirements have been met for the public hearing with publication of the public hearing notice in the February 16, 2018 Alameda Journal and the local Chinese, Spanish, Tagalog and Vietnamese language newspapers. Provisions for non-English speaking residents and persons with disabilities are available upon request.
DISCUSSION
Each year staff receives approval from City Council regarding recommendations for activities to be funded with the annual allocation of CDBG and HOME funds. In May 2015, Council approved the Five-Year (FY 2015-20) Consolidated Plan and first year of the Five-Year Action Plan, and in May 2016 and 2017, the second- and third-year Action Plans were approved. Each annual Action Plan includes carry forward funds (i.e., unexpended funds) from the prior year and those remaining funds are allocated within the same grant year until a project is complete or a project is identified and funds are reprogrammed to the new project.
Staff is proposing amendments to the Action Plans for Fiscal Years 10-11 through 2017-2018 to reprogram $550,000 for the demolition of three buildings at North Housing to construct the Mosley Street extension on land to be conveyed to the City, and build low- to moderate-income housing on land to be conveyed to Habitat for Humanity. The sources of these funds include: 1) allocating $266,354 in unallocated program income (received and anticipated by fiscal year-end), 2) reprogramming $150,000 of the funds that were allocated for the Eagle Avenue Water Main, 3) reclassifying the renovation of the house at 2815 San Diego Road as a substantial rehabilitation project, which makes available $125,000, and 4) allocating miscellaneous funds totaling $8,844.
In November 2017, the City Council approved reprogramming funds for replacing the water main at the intersection of Eagle Avenue and Everett Street to meet EBMUD requirements. Based on the cost estimates provided by EBMUD, it is anticipated that $150,000 of those funds will be unused prior to the fiscal year-end. At the same Council meeting, funds were reprogrammed to rehabilitate the City-owned property at 2815 San Diego Road so that it may be used for refugee and immigrant family resettlement through a lease with the non-profit Alameda Interfaith Housing, Inc. Based on the work required, staff recommends reclassifying the activity as a substantial rehabilitation project so that the previously allocated funds may be reallocated to the proposed clearance activities described above. There are currently funds in the Substantial Rehabilitation line item that are available for this purpose.
These proposed actions to reprogram funds for the new project will ensure timely expenditure of resources prior to the fiscal year-end. Therefore, staff is recommending reprogramming of these funds to be used for eligible activities as shown in Exhibit 1.
Following Council approval, grant modifications and/or new agreements will be implemented to carry out the approved activities. The form of grant modification and/or new agreement is the same as previously approved by the City Council and the City Attorney’s office.
FINANCIAL IMPACT
There is no financial impact on the General Fund. The funds available to be reprogrammed within the CDBG Action Plans are budgeted in the Community Development Department CDBG account (Fund 236, Program 6235.1, Object Number 61060).
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The proposed Action Plan amendments are consistent with the City's CDBG Five-Year Consolidated Plan and citizen participation requirements.
ENVIRONMENTAL REVIEW
The execution of related agreements and final funding commitments are subject to satisfactory environmental clearance under 24 CFR Part 58.
RECOMMENDATION
Hold a Public Hearing to consider Amendments to the Community Development Block Grant (CDBG) Action Plans for Fiscal Years 2010-2011 through 2017-2018, allocating $550,000 in CDBG funds to demolish buildings at North Housing site on property to be conveyed to the City and Habitat for Humanity, and authorize the City Manager to negotiate and execute related documents, agreements, and modifications.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Lisa Fitts, CDBG Management Analyst
Financial Impact section reviewed,
Edwin Gato, Acting Finance Director
Exhibit:
1) Proposed CDBG Reprogramming Activities