Report Prepared by: Mark E. Hamilton, Housing Program Supervisor, Housing Division, Department of Development Services
Title
SUBJECT: Allocation of Fiscal Year 2016/17 Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) to Fund Various Agreements to Provide Allowable Activities per the Approved 2016 Department of Housing and Urban Development Action Plan
REPORT IN BRIEF
Approves various Community Development Block Grant and HOME Investment Partnership Program Sub-Grantee agreements to perform activities throughout the community.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving agreements identified in the 2016 Department of Housing and Urban Development (HUD) Annual Plan with Community Development Block Grant (CDBG) funds from the 2016/17 Fiscal Year (accounts 018-1301-552-17.00 / Supplies and Services and 033-1349-552-17.00 / Supplies and Services) per previous City Council recommendation for:
1. An agreement with Merced County Housing Authority for the Rental Deposits/Rapid Rehousing Program in the amount of $30,000;
2. An agreement with Habitat for Humanity - Merced County for the purchase and renovation of a property in the amount of $100,000;
3. An agreement with Sierra Saving Grace for the Homeless Project in the amount of $167,000;
4. An agreement with Merced Rescue Mission, Inc., for the Room at the Inn Program in the amount of $200,000;
5. An agreement with Habitat for Humanity - Stanislaus County for the Homeowner Rehabilitation Program in the amount of $200,000 ($100,000 from HOME Funds and $100,000 from CDBG funds); and
B. Authorizing the City Manager to execute, and if necessary, make minor modifications to the agreements described above as attached to this report and all associated documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; or,
3. Deny; or,
4. Refer to the City Manager for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Section 200 of the City of Merced Charter, City of Merced 2016 HUD Annual Plan and Title 24 of the Code of Federal Regulations, Part 570 (the U.S. Housing and Urban Development regulations concerning CDBG including Subpart K of these regulations).
CITY COUNCIL PRIORITIES
As approved by City Council April 18, 2016, and budgeted for in the 2016-17 Adopted Budget.
DISCUSSION
Staff is requesting Council consider approving five (5) agreements with sub-recipients to carryout development, homeowner rehabilitation, and Rapid Rehousing activities within the community. These agreements will be funded with Community Development Block Grant and HOME Investment Partnership Funds totaling $697,000 (CDBG - $597,000.00 and HOME - $100,000.00). Staff will work with the sub-recipients to ensure the activities are carried out per the Housing and Urban Development (HUD) program guidelines.
The 2016 HUD Annual Action Plan identified and budgeted all of these activities which meet basic HUD eligibility. Each activity is planned to be carried out and completed prior to July 2017. Staff has worked with these sub-recipients to ensure they have sufficient time to complete the activities and provide the City with progress reports. The sub-recipients will be reimbursed for their services upon submittal of an invoice and report describing their accomplishments.
Upon receipt of progress reports and conclusion of the activity, the information will be included in the City’s Consolidated Annual Performance and Evaluation Report (CAPER). The CAPER is a report HUD requires each participating jurisdiction to complete and submit at the conclusion of the previous fiscal year outlining the accomplishments of each activity.
These agreements required City Council consideration because the amount is greater than $29,000. Additional information regarding the services provided can be found in each of the attached agreements.
IMPACT ON CITY RESOURCES
The 2016 HUD Annual Plan budgeted $567,000 of Community Development Block Grant funds and $100,000 of HOME funds towards various development and Homeowner Rehabilitation Projects. Additionally, $30,000 was approved for Rapid Rehousing/Rental Deposit services. These agreements do not require expenditures from the General Plan. Funding used for these agreements will be from CDBG Supplies and Services / Professional Services account 018-1301-552-17.00 in the amount of $597,000.00 and HOME Supplies and Services / Professional Services account 033-1349-552-17.00 in the amount of $100,000.00.
ATTACHMENTS
1. Agreement with Merced County Housing Authority
2. Agreement with Habitat for Humanity - Merced County
3. Agreement with Sierra Saving Grace
4. Agreement with Merced Rescue Mission
5. Agreement with Habitat for Humanity - Stanislaus County