DATE: January 16, 2024
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Jeramie Brogan, Management Analyst
SUBJECT: RESOLUTION NO. 7 540 AUTHORIZING THE ALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT ( “CDBG”) FUNDS FOR
FISCAL YEAR 2024 -25, AND APPROVING A STATEMENT OF
OBJECTIVES AND PROJECTS FOR USE OF CDBG FUNDS
CEQA: Not a Project
Recommendation: Adopt and Approve
SUMMARY
In January of each year , the City is required to hold a public hearing and approve a Statement of Objectives and Projects for use of Community Development Block Grant (“CDBG”) funds for the next fiscal year. Following City Council approval, t he approved project summaries and budgets are submitted to the Los Angeles County Development Authority (“LACDA”) for their final review and coordination with the U.S. Department of Housing and Urban Development (“HUD”) on disbursement of funds . For Fiscal Year 2024-25, LACDA has advised that the City will have an estimated total allocation of $425,200.65 in CDBG funds available for use.
It is recommended that the City Council adopt Resolution No. 7540 authorizing the allocation of Community Development Block Grant (“CDBG”) funds for Fiscal Year 2024- 25 and approving the projects set forth in this report for Fiscal Year 2024-25, which include continuation of the Home Improvement Program, Congregate Meals for S enior Citizens, and Information and Referral Services for Senior Citizens.
BACKGROUND
Since 1974, the City has been a participant in the Los Angeles Urban County’s Community Development Block Grant Program . The CDBG funds come from the U.S.
Department of Housing and Urban Development ( “HUD”) and are administered by the Los Angeles County Development Authority (“LACDA”) for participating cities in the County, including Arcadia. Arcadia’s use of these funds is restricted to meet the objectives of assisting low - and moderate- income families and individuals or improving disability access. Federal regulations allow for a 15% maximum of a grantee’s anticipated annual Resolution No. 7540 - Community Development Block Grant (“CDBG”) Funds January 16, 2024
allocation can be used for p ublic service programs
(decreased from 20% in previous
years). The balance of the annual funds must be directed towards projects that directly support and benefit low - and moderate-income families and individuals or disabled community members.
For this upcoming Fiscal Year, it is recommended that unspent carryover CDBG funds in the amount of $133,523.65 (“unallocated funds”) are directed to the City’s existing Home Improvement Program, while other options for the use of these unallocated funds are considered. Some potential options for the use of funds include implementing an accessibility-related project (consistent with previous years) or a multifamily rehabilitation pilot program. If a replacement project is considered, it will be presented to the City Council at a subsequent meeting.
DISCUSSION
For Fiscal Year 2024-25, the City will receive an estimated allocation of $291,677 in new CDBG funding. The City also has an existing unspent balance of $133,523.65 in CDBG funds from prior years, proposed to be utilized in 2024- 25 for a total of $425,200.65 in available funding. The following table is a summary of the projects and funding amounts approved for Fiscal Year 2023-24, and the recommended projects and funding amounts for Fiscal Year 2024-25:
Projects Current FY 2023-24 Proposed FY 2024-25
Home Improvement Program $303,517 $381,449.65
Public Service Projects
Congregate Meals for Seniors $38,423 $23,751
Info. & Referral Services for Seniors $20,550 $20,000
Totals $362,490 $425,200.65
More details on each CDBG project activity proposed for Fiscal Year 2024- 25 are provided below. In addition to the proposed use of unallocated funds for the upcoming Fiscal Year, a change to the Home Improvement Program guidelines to increase the maximum grant award amount per eligible household is also recommended, explained in further detail below.
Home Improvement Program
Since 1974, the Home Improvement Program (“HIP”) has been comparatively the largest of the City’s CDBG programs, having assisted more than 500 low- and moderate-income homeowners in Arcadia. The current maximum grant amount is $20,000 for single-family Resolution No. 7540 - Community Development Block Grant (“CDBG”) Funds January 16, 2024
homes and $15,000 for condominiums. Grants benefit income-qualified homeowners by providing needed home improvements and repairs , including painting, roofing, new windows, plumbing and HVAC improvements, energy-efficiency upgrades, and disabled accessibility modifications. Each year, approximately 10 to 15 income- qualified homeowners in Arcadia receive grants through this program. Due to increases in the cost of construction, labor, and materials over the past several years, it is recommended to increase the maximum award per grant. For single- family dwelling units, it is recommended to increas e the maximum from $20,000 to $25,000, per grant ; and for townhomes and condominiums, from $15,000 to $20,000 per grant.
The recommended level of funding for the Home Improvement Program for Fiscal Year 2024-25 is $381,449.65. Of these funds, 20% ($76,289.93) is allowed to be used for administration of this program and will cover the cost of a consultant and staff time. It is anticipated that the City will assist approximately 12 to 15 income-qualified homeowners during Fiscal Year 2024-25.
To participate in the Home Improvement P rogram, a property owner is required to have owned and resided in their home for a minimum of five years prior to receiving a grant.
The combined household income of all residents at the property may not exceed 80% of the area median income for Los Angeles County, which is calculated as combined annual earned income plus up to 10% of all financial assets. The current program income limits for Fiscal Year 2023-24 are listed below.
HIP INCOME LIMITS FOR FY 2023-24
HOUSEHOLD
MAXIMUM INCOME*
1 $70,650
2 $80,750
3 $90,850
4 $100,900
5 $109,000
6 $117,050
7 $125,150
8 $133,200
*80% median household income for L.A. County
A property owner also may not own any additional real estate property besides their residence. As a condition of the program , homeowners authorize a Grant Memorandum of Agreement recorded on their property deed, requiring them to reimburse the City for the entire grant amount if they sell their property, or if the title is transferred within a five- year period following completion of their HIP project. Additional information on program eligibility requirements and processes can be found in the HIP Guidelines and Procedures, included in Attachment “B” to this report.
Resolution No. 7540 - Community Development Block Grant (“CDBG”) Funds January 16, 2024
Congregate Meals for Senior Citizens – (Public Service Project) This Program is one of two public service projects funded for the current fiscal year, which cumulatively cannot exceed a total of 15% of the annual CDBG budget. This is an ongoing program that provides senior citizens with a nutrition program featuring midday meals, Monday through Friday, at the Community Center. The proposed funding of this project for Fiscal Year 2024-25 is $23,751. It is anticipated that approximately 20,000 meals will be served during the next Fiscal Year. Further information on the Senior Meals program can be found through Attachment “C”.
Information and Referral Services for Senior Citizens – (Public Service Project) The Information and Referral Services program provides senior s with information that is essential for maintaining independent and healthy lifestyles. Offerings include essential services and referrals such as Medicare/Medi -Cal assistance, legal assistance, health services, transportation, social security, housing assistance, in- home services, and educational opportunities. With a proposed budget of $20,000, the current level of service can be maintained, which will serve approximately 700 clients during Fiscal Year 2024-
25. Additional details on the Information and Referral Services Program can be found in Attachment “D”.
This i tem was not iced on December 21 , 2023, and no public comments have been received.
E
NVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), a s it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA per Section 15061(b)(3) of the CEQA Guidelines.
FISCAL IMPACT
A total of $425,200.65 is proposed to be expended during Fiscal Year 2024-25. All CDBG funding comes from HUD; however , CDBG project appropriations are included in the City’s operating budget and are subject to City Council approval. The funding amounts, as proposed, will help maintain existing service levels for each of the City’s three ongoing CDBG funded programs.
RECOMMENDATION
It is recommended the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); adopt Resolution No. 7540, authorizing the allocation of Community Development Block Grant (“CD BG”) funds for Fiscal Year 2024-25, and approving the Statement of Objectives and Projects for use of Resolution No. 7540 - Community Development Block Grant (“CDBG”) Funds January 16, 2024
Community Development Block Grant (“CDBG”) Funds for Fiscal Year 2024- 25; and authorize and direct the City Manager to modify the project allocations should amendments become necessary, and execute a Memorandum of Understanding with the Los Angeles County Development Authority (“LACDA”).
A
ttachment “A”: Resolution No. 7540
Attachment “B”: HIP Guidelines & Procedures for Fiscal Year 2023-24 Attachment “C”: Congregate Meals for Senior Citizens Program Summary Attachment “D”: Information & Referral Services for Seniors Program Summary
RESOLUTION NO. 7540
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, AUTHORIZING THE ALLOCATION OF COMMUNITY
DEVELOPEMTN BLOCK GRANT ("CDBG") FUNDS FOR FISCAL YEAR
2024-25, AND APPROVING A STATEMENT OF OBJECTIVES AND
PROJECTS FOR USE OF CDBG FUNDS
WHEREAS, the Community Development Block Grant ("CDBG") Program has operated since 197 4 to provide local governments the resources to meet the needs of persons of low-and moderate-income; and
WHEREAS, the City of Arcadia contracts with the Los Angeles County Development Authority ("LACDA") for the disbursement of Community Development Block Grant Funds, through the Small Cities Program; and WHEREAS, the City of will receive an estimated total of $291,677 in Fiscal Year 2024-25 in Community Development Block Grant Funds and $133,523.65 in previous year unallocated funds, for a total of $425,200.65; and WHEREAS, the City Council has conducted a public hearing, with the required prior noticing to provide the public an opportunity to comment on the programs.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS.
Section 1. The City Council approves the Community Development Block Grant ("CDBG") Program Budget for Fiscal Year 2024-25 and instructs staff to submit the necessary documents and a copy of this Declaration to the Los Angeles County Development Authority ("LACDA'').
Section 2. The City Council authorizes the City Manager to adjust the Program budget as necessary throughout the Fiscal Year. This includes, but is not limited to, 1 Attachment "A"
City of Arcadia
H
OME IMPROVEMENT PROGRAM
G
uidelines and Procedures
FISCAL YEAR 2023-2024
EFFECTIVE 07/01/2023
City of Arcadia
Development Services Department
240 West Huntington Drive
PO Box 60021
Arcadia, CA 91066-6021
(626) 5
74-5409
www.ArcadiaCA.gov
Attachment "B"
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HHOOMMEE IIMMPPRROOVVEEMMEENNTT PPRROOGGRRAAMM
GGUUIIDDEELLIINNEESS
I. OBJECTIVE
The purpose of Arcadia’s Home Improvement Program (HIP) is to assist low to moderate income homeow ners with home improvements to their primary res idence.
The homes must be located within residential zones and owner-occupied. An income eligibility table is included as Attachment A.
II. TYPE OF ASSISTANCE
The City of Arcadia operates a Home Improvement Program (HIP) utilizing Community Development Block Grant Funds (CDBG) though the Los Angeles County Community Development Authority (LACDA) to provide eligible households with grants . The Program provides maximum grants of $20,000 per single family home and $15 ,000 per condominium or townhouse. Exception: The cost of any required lead-based paint and/or asbestos testing and clearance inspections for a project shall not be counted towards the maximum grant amount.
III. ELIGIBILITY CRITERIA
A. Homeowner Eligibility Requirements
1. Household Income
Adjusted Gross annu al household income may not exceed 80% of the Los Angeles County Median income adjusted for family size as provided by the U.S. Department of Housing and Urban Development (HUD). The City will require documentation of both household size and household income information to determine application eligibility.
2. Definition of Household: For households applying for the City of Arcadia’s Home Improvement Program, all persons on title are considered household members and all persons i n residence are considered household members for the purpose of determining income eligibility.
3. Definition of Annual Household Income: For the purpose of determining Program eligibility, annual income will include:
• Adjusted gross income.
• Cash income received from such sources as rents, Socia l Security benefits, pensions, and periodic income from insurance policy annuities.
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• Periodic cash benefits from public assistance and other compensation, including AFDC, SSI, Worker’s Compensation, State Disability Insurance, and unemployment benefits; and
• Interest earned on savings, checking, money market accounts and all other assets/investments.
• Payments designated specifically for foster children or their non- disposable income.
• Two percent (2%) of the value o f all financial assets is i ncluded in addition to the above income for purposes of determining “household income”. For liquid assets , ten percent (10%) of the combined asset value over $200,000 is inc luded for purposes of determining household income.
4. Annual Income does not include:
• Non-cash income such as food stamps or vouchers received for the purpose of food or housing.
• Capital gains or losses.
• One-time unearned income such as scholarships and fellowship grant, accident, health or casualty insurance proceeds, pri zes o r gifts, inheritances; and
• Payments designated specifically for medical or other costs.
The City will make the final decision in situations where the classification of income is disputed.
B. Property Eligibility Requirements
Following determination of homeowner eligibility, the owner must demonstrate property eligibility. To be eligible to receive Program assistance, real property will be evaluated and must meet each of the requirements set forth below:
1. Location and Type of Property
The property must be a single-family home, condominium, or townhouse to be eligible for the Program. The Property must be owner-occupied and located within the city boundaries of Arcadia. Par ticipating properties must be the primary residence of the participating property owner.
Owners of condominiums and townhomes will need to provide pre- approval from their HOA of the approved improvements before work begins. (Repairs are limited to the interior of each qu alified u nit. No common areas or exterior repairs are e ligible under the Home Improvement Program).
2. Condition
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The single family units must be in need of exterior repairs to (i) correct existing nonconforming d evelopment standards, (ii) correct existing nonconforming local and/or state code requirements, (iii ) correct existing local and/or state code violations, (iv) protect the structural integrity of the property, (v) refurbish exterior and/or eligible inter ior imp rovements (necessary for health and safety), or (vi ) aid the mobility of the physically disabled and/or elderly.
All eligible improvements must be pre- approved by the City of Arcadia.
Submission of receipts, invoices and/or bills for work completed prior to City approval/ inspection will be considered ineligible for reimbursement.
3. Ownership and Owner-Occupancy Requirements
The income eligible homeowner(s) must hold record fee simple title to the property and must occupy the property as a pri mary residence. The city will not approve homeowners listing their home for sale.
4. Restriction on Owning Additional Property
To be eligible for this program, homeowner(s) may not own any rental, investment, or other real estate property besides their primary residence.
Exceptions to th is participation limitation may be considered for properties with e mergency building and safety issues and/or code compliance violations on a case- by-case basis, but only to fund improvements that address the specific outstanding issue or violation.
5. Residency Requirement
Property owners applying for the Home Improv ement Program are required to have owned and occupied the residence for a minimum of five (5) years prior to applying for the Home Improvement Program. The purpose of this requirement is to ensure that property owners have established permanent residency w ithin the City prior to receiving a grant.
6. Mortgage Status
Homeowner(s) cannot be delinquent on their mortgage or in foreclosure as it pertains to the primary residence. D ocumentation listed in Section IV.8 must be submitted for determining eligibility.
7. Previous Program Participation
Property owners can only participate in this program once every five years and receive a maximum of two grants. First -time participants are given priority over previous participants. Exceptions to these participation limitations may be considered for properties with emergency building and safety issues and/or code compliance violations on a case- by-case basis, but only to fund improvements that address the specific outstanding issue or violation
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IV. APPLICATION PROCEDURES
Application materials for participation i n th e HIP p rogram can be obtained from and returned to the Devel opment Servi ces Department at City Hall, lo cated at 240 West Huntington Dr., Arcadia, CA 91007 or on the City’s website. The application must be completed in its entirety and submitted to the location indicated in the guidelines.
When funding becomes available, st aff will contact homeowners who have submitted an HIP application and schedule interviews to determine program qualification. At the interview appointment, the following document ation must be provided for consideration:
1. Verification of p ersonal income and assets which will include, but is not limited to the applicant’s two most recent pay stubs, award letters from social security/pension and recent federal income tax returns (if se lf-employed, up to 2 years of returns and profit and loss statements for the past 2 years)
2. Proof of ownership (Grant Deed, Trust and/or current Property Tax Bill)
3. Proof of residency (utility bills, car registration)
4. Bank/Financial statements for the past 3 months
5. Proof of current property insurance
6. Copy of current mortgage statement for subject property
7. Sign notification/acknowledgement of Lead Based Paint and Asbestos
8. Completed Real Estate Form indicating no additional investment properties
9. Approve Program Guidelines
Application approval is subject t o funding availability, income eli gibility and past participation in the Program.
V. SELECTION OF HOMEOWNER(S)/SCREENING PROCESS
A. Applications will only be accepted from low to moderate income property owners located within the City of Arcadia. Properties located within the unincorporated Los Angeles County area a re ineligible for this program. Those out of the city limits will be referred to the Los Angeles County’s Program.
B. E ligible participants will be selected on a first-come, first-served basis, and the availability of CDBG funds.
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C. Pre-qualification - Each application filed with the City shall be date stamped and will be processed in the order received . Staff will review applications for completeness and will verify property and income eligibility. Incomplete applications will not be processed until all requested information is submitted by a specified time. Staff will notify in writing all ineligible households.
The City requires all households participating in the Home Im provement Program to meet specific income limits a s det ermined by H ousing Urban Development (HUD), b ased upon household size. For reference, HUD published income limits, according to household size, for Los Angeles County is attached (Attachment A).
D. A nnual income is the gross amount of income that is anticipated to be received by all m embers o f the household during the twelve months following the effective date of det ermination, as well as reviewing the income from the preceding year.
E. An applicant is considered ineligible, if:
1. The property is not located within the city boundaries and i n t he designated residential zones.
2. The property is non -conforming, i.e., more than one structure on the property is a dwelling unit.
3. The household income exceeds the income limit established by HUD.
4. The property is not the owner’s primary residence. (Rental properties are ineligible).
5. The information on the application is foun d to be inaccurate or insufficient to determine the household income for program eligibility.
F. Property owners can only participate in this program once eve ry five years and receive a maximum of two grants. First -time participants are given priority over previous participants . Exceptions to these participation limitations may be considered for properties with emergency building and safety issues and/or code compliance violations on a case-by-case basis, but only to fund improvements that address the specific outstanding issue or violation.
VI. METHOD OF CALCULATING ASSISTANCE
The amount of HIP Program funds provided to an eligible pr oject shall be established through the property inspection work write- up, cost estimate, and bidding results as described below and shall not exceed $20,000 per participating household/property for single-family dwellings, and $15,000 for townhomes and con dos. Exception: The c ost
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of any required lead-based paint and/or asbestos testing and clearance inspections for a project shall not be counted towards the maximum grant amount.
A. Property Inspection Procedures
The City will conduct the initial, interim , and final property in spection for code compliance, wit h the homeowner (s), or the owner's representative. The inspection will include:
1. Interview with the homeowner (s), or owner's representative to identify specific housing issues.
2. Walk through of property with a chec klist, accomplished by the pro perty owner(s) identifying recommended and necessary improvements.
3. A summary list of repairs complied and approved by City staff with recommendations from the homeowner(s).
4. Only when components of th e scope of work is suspected to have lead paint or asbestos issues, a certified LBP/asbestos inspector will be utilized for any inspections involving the areas contaminated with LBP or asbestos.
B. Preparation of Work Write-up and Cost Estimate
1. The City will be resp onsible to inspect property to i dentify violations of health, safety, and building codes.
2. The C ity will prepare a detailed work write- up (specifications) that addresses all violations of health, safety, and building codes, and provides (for properties constr ucted before 1978) for t esting and abatement/removal of lead-based paint, limited asbestos testing (if applicable) and identifies any other rehabilitation efforts to be conducted.
3. The city will file the completed deficiency l ist, work write -up and cost estimate that notes dat es of inspection, (and if needed) persons in attendance at walk through and any special circumstances.
4. The City will obtain architectural design approval from Planning Services for all exterior rehabi litation work prior to t he contractor selection process.
5. If the property is not suitable for rehabilitation and/or if the homeowner discontinues the process, a termination /denial letter will be mailed to the homeowner.
C. Contractor Selection Procedures
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1. Upon approval by the City, the homeowner will obtain a minimum of two (2) bids (per LACDA’s program audit) from qualified contractors that are licensed contractors that have not been placed on a debarment list by HUD and are in good standing with the State of Califor nia’s Contractor Licensing Board.
2. The homeowner’s selected bid from a qualified c ontractor w ill be examined by the City and must be the lowest responsible bidder to be awarded the contract.
3. More than one contractor/subcontractor can be selected for rehabilitation work, depending upon the nature and scope of the rehabilitation work.
4. Contractors are responsible for obtaining and/or verifying architectural design approval from Planning Services for all exterior rehabilitation work (paint color, window material, mechanical equipment enclosures, etc.).
5. The lowest respons ible contractor must h ave a valid city business license, current and valid general liability, and workmen’s compensation insurance (if applicable) and a current State of C alifornia c ontractor’s license prior t o receiving award of the contract. The Contractor wi ll be responsible for obtaining the necessary building permit(s) and ensuring that permit(s) is/are finalized.
VII. CALCULATION OF SUBSIDY/COST REASONABLE REVIEW
The City will determine reasonable rehabilitation cost for work to be performed based upon the scope of wo rk. This cost shall be established by utilizing market data and published construction cost guidelines. The city will review bids to det ermine cost reasonableness and will ensure compliance with the Scope of Work.
VIII. ELIGIBLE COSTS
A. Eligible Hard Co sts - Program funds are available for rehabilitation costs to properties that either correct substandard conditions, correct violations of local housing codes or a ddress health and safety issues and are physically attached to the prop erty and permanent i n nature . General repairs not corrective in nature shall be given lower priority. Eligible repairs include, but are not limited to the following:
1. R epairs t hat remedy existing nonconform ing uses such as garage conversions, additions, etc.
2. Exterior w ork to help preserve or protect structures such as painting, roofing, trimming or removal of hazardous/dead t rees,
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repair/replacement of screens/windows, doors, and door locks, structural and/or foundation damage, repair of sidewalks and driveways, fencing.
3. Interior work to make a structure more livable and repair/replace/ restore important parts such as cabinets, counters, plumbing, dam aged flooring, faulty or inadequate heating, damaged ceilings, water heaters, electrical wiring and service, painting.
4. Fumigation and treatment of termites and pest control.
5. Testing/abatement of lead-based paint and asbestos hazards.
6. Weatherization a nd energy con servation items such as ins ulation, caulking, weather stripping and new energy efficient windows and HVAC system.
7. Modifications which aid the mobility of the elderly and physically disabled such as s hower units with seats, lever har dware, re trofitting toilets to achieve adequat e height, moving power points and light switches , ramping reconstruct ing doorways, lowering sinks in kitchens and bathroom.
8. Energy audits, if applicable.
9. Approved emergency repairs, such as plumbing, roofing and electrical.
10. Lead-based painting testing and clearance inspections
11. Asbestos testing and clearance inspections.
IX. INELIGIBLE COSTS
1. Repair, purchase, or installation of appli ances/or structures that are designed a nd manufactured t o be freestanding and window air conditioning units.
2. Recreational items such as barbecues, hot tubs/jacuzzi, swimming pools, saunas, tennis courts.
3. Non-essential items such as security alarms and protection bars, decorative items, window coverings, awnings, patios, decks, and storage sheds/workshops, driveways, and landscaping. Repairs t o garage structures only are not allowed (must be linked with repairs to the home).
4. Other proposed improvements as determined ineligible by th e City of Arcadia and/or the LACDA.
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5. Regarding condos and townhomes, common areas such as windows, walkways, certain electrical and plumbing repairs, exterior painting, HVAC units and insulation.
X. G RANT DOCUMENT PREPARATION
A. Once the bid is awarded and the grant amount has been approved, t he participating Homeowner will be required to sign a Grant Memorandum Agreement (Attachment B). The Community Development Administrator w ill then approve and sign the Agreement.
B. The original signed document will then be forwarded to the Los Angeles County’s Recorder’s Office for recording.
XI. CONSTRUCTION PROCESS
A. Upon contractor selection and full execution o f the Grant Agreement by the affected home owner(s) (which shall list work as descr ibed in the bid specifications), homeowner(s) must sig n the Construction Contract. Once signed by the homeowner(s) and the awarded contractor, a Notice to P roceed will be issued by the City.
At that time, the C ontractor will carry out the required work under the supervision of staff. Work shall commence no later than thirty (30) days from the date the last agreement is executed by the affected homeowner(s ) and be completed no more than ninety (90) days after the start date.
B. A building permit will be required for all projects that require a permit. A “Final Inspection” wi ll be required for these projects, prior to any pay ments being made.
C. All awarded Contractors working with the Home Im provement Program w ill be required to meet the requirements listed in this guideline (Section VI, Part C).
D. Rehabilitation projects will be clos ed subsequent to Building Dep artment st aff approval of the rehab work performed, and data entered the LACDA r ehab panel.
XII. C ONSTRUCTION/PROJECT MANAGEMENT
A. The City will be responsible for conducting initial, interi m, and final inspections for participating properties. These inspections shal l b e performed to ensure code compliance, adherence to work write-u ps, and progress inspections. The
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City will also assume responsibility for determining cost reasonableness bas ed upon market data and published construction cost guidelines.
B. The City must determine initial areas where health, s afety, building, city, a nd other codes must be addressed and will monitor progress in correcting these deficiencies.
C. The City must identify all rehabilitation activities to be conducted and shal l create a work-write up which addresses all code requirements and rehabilitation activities, lead based paint test ing and removal/abatement, if necessary, while excluding all ineligible activities.
D. The City will conduct all progress inspections to ensure the continued quality of all co nstruction, inc luding adherence to the scope of work and all bui lding codes.
E. During the approv al and construction management process, staff will input all required doc umentation regarding household income and property des cription onto Los Angeles County D evelopment Au thority’s ( LACDA) website – rehabilitation panel.
XIII. CONSTRUCTION PAYMENTS
Upon the completion of the rehabilitation project, the foll owing doc uments must be submitted to Community Development Division for the processing of payments:
• A Contractor Payment R equest form must be completed and si gned by the contractor as well as the homeowner. The Contractor must provide his /her City of Arcadia business license in formation and the Tax ID numb er to process the requested payment.
• The “Waiv er and Release” form must be completed and signed by the Contractor.
• An original invoice must be submitted by the Contractor.
• If applicable, a copy of t he permit finalized by the City’s Building and Sa fety Department must be submitted by the contractor or homeowner(s).
If the homeowner (s) has paid for any portion of the improvement, proof of payment must be provided to the Community Development Divisi on al ong wit h the above documents. Payment wil l not be made to the contractor without the proof o f payment by the homeowner.
Upon processing th e final payment, payment and final inspection information will be entered into the County’s rehab panel for final submission.
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XIV. GRANT PROVISION AND MONITORING COMPLIANCE
Home Improvement Program participants must sign an agreem ent indicating that they will remain in t he home a minimum of five (5) years following completion of the gra nt- funded im provements. If t he home is sold or th e ti tle is transferred within five (5 ) years, the property owner is required to reimburse the City for the entire grant amount.
EXCEPTION: If the home is sold or the title is transferred due to a legitimate hardship as determined by the Development Services Director, or designee, the grant recipient may be exempt from part or the total reimbursement amount.
For the pur poses of this program, “sale or transfer of title” shall mean any sale or transfer that will cause the assisted pro perty to be reassessed by the Los Angeles County Assessor’s Office pursuan t to Arti cle XIII A of the California Constit ution (commonly referred to as Proposition 13).
To verify compliance, staff may also conduct site visits or consult Los Angeles County records for homeowners who has participated wi thin the pas t f ive years to confirm continued occupancy of the property as their primary residence.
XV. EQUAL OPPORTUNITY
Program participants will be selected on a first-come, first-served basis and base d upon previous participation.
No person shall be exc luded from participation in , be denied the benefits of or be subjected to discrimination under any program or activity funded in whole or in part with Home Improvement funds. In addition, Home Improvement funds must be made available in accordance with all federal laws and regulations.
XVI. AFFIRMATIVE MARKETING PROCEDURES
Program information is available to the Arcadia community through various sources.
The application and brochure explaining the Program are availab le at the Development Services Department , City of Arcadia, and 240 West Huntington Drive, Arcadia, California, 91007. Th e Home Improvement Program is advertised in the City’s local newsletter, wh ich is maile d quarterly to all propert ies loc ated within th e City. Additio nally, the program is publis hed on th e City’s website and can be viewed periodically on the local cable station to reach the City’s diverse population.
XVII. FAIR HOUSING
This policy will be implemented cons istent with the City’s commitment to f air housing practices. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination on the basis of his or her religion or religious aff iliation, age, race, ancestry, nation al origin, g ender, mar ital status, fam ilial status (children) , physical or mental disability, sexual orientation, or any other arbitrary causes.
FY23-24
H.I.P. Guidelines
XVIII. LEAD-BASED PAINT AND ASBESTOS
Properties constructed prior to 1978 wil l require that a Lead Bas ed Paint N otice b e given to all proper ty owners. As required by the C ounty, all participating homeowners are provided a copy of the br ochure entitled, “T he Lead- Safe Cert ified Guide to Renovate Right ” and sign a notice indicating receipt of this brochure issued by t he EPA. The City of A rcadia is re quired to follow the federal LBP hazard regulations when implementing the home improvement program. When a grant appl ication is approved, the city will pro vide the homeowner with i nformation about poten tial lead hazards and the abatement and safety requirements of participating in the program.
As part of the grant program, the city will test Home Improvement assisted uni ts constructed before 1978 for the presence of lead-based paint utilizing a licensed third- party vendor. Any lead-based found as a result of these tests shall be removed and/or abated as a priority item for rehabilitation.
In accordance with CDC requirements, all participating homeo wners are provided a copy of the bro chure entitled, “ A C onsumer Guide to Asbestos” and sign a n otice indicating receipt of this brochure. Depending on the type of repairs, the property may require asbestos testing. The testing must be completed by a qualif ied third -party vendor and if necessa ry, the asbestos shall be removed and/or abated during the rehabilitation work.
XIX. DEBARMENT AND SUSPENSION
As required, the city and participating homeowner (s) will co mply with all contractor debarment and suspension certifications.
XX. REPORTING
In accordance wit h federal requireme nts, Quarterly Pe rformance Reports must be submitted to the Los Angeles County Development Authority (LACDA). The report is to identify the number of applicants , num ber of proj ects in progress, total number of projects completed, income range of clients, e thnicity, sex, and any disability of the head of household.
In accordance with federal requirements, the annual Contract /Subcontract Ac tivity Report must be s ubmitted to the Los Angeles County Dev elopment Authority (LACDA). HUD requires all contracts and subcontracts of $10,000 or more executed during the specific period must be reported.
XXI. CONFLICT OF INTEREST
No member of the governing body of the City and or other official, employee or agent of the City government who exerc ises policy or decisio n-making authority in connection with the planning or implementation of the Home Improvement Program shall directly or indirectly be eligible for this Program.
FY23-24
H.I.P. Guidelines
XXII. PHOTO PERMISSION USAGE
All participating property owners must allow the City of Arcadia to p hotograph before and after pictures of the interior and exterior of the house, garage and other structures present at the subject proper ty. The participating proper ty owners u nderstand t hat these photographs will be used to document the conditions and j ustify the assistance under the Home Improvement Program. The participating property owners also agree for the City of Arcadia to place t hese photographs in local new spaper articles and/or the City’s newsletters as a method to promote and advertise the Home Improvement Program at any time.
All participating property owners will be required to complete and sign a Photography Permission Form (Attachment C) agreein g to the requirements stated in Sectio n XXII of these guidelines. A signed form must be present in the project file prior to approval of the application and before any photos are taken and/or published by the City of Arcadia.
XXIII. AMENDMENTS
Amendments to these G uidelines may be made by the City whenever appropriate to improve the program e ffectiveness and to resolve program issues. As part of the amended adoption process, the City will review updated federal regulations issue d by LACDA in their b ulletins to par ticipating c ities, to e nsure continued compliance with CDBG regulations.
FY23-24
H.I.P. Guidelines
ATTACHMENT A
CITY OF ARCADIA
HOME IMPROVEMENT PROGRAM
LACDA PUBLISHED INCOME LIMITS
(Effective June 2023)
Number of Persons in Household Annual Income Limit
1 $70,650
2 $80,750
3 $90,850
4 $100,900
5 $109,000
6 $117,050
7 $125,150
8 $133,200
Income limits are subject to change by the Los Angeles County Development Authority (LACDA)
FY23-24
H.I.P. Guidelines
ATTACHMENT B
Recording Requested by:
CITY OF ARCADIA
When Recorded Return to:
CITY OF ARCADIA
240 W. Huntington Dr.
Arcadia, CA 91007 FREE RECORDING
Attn: GOVERNMENT CODE SECTION 6103
__________________SPACE ABOVE THIS LINE FOR RECORDING USE____________
GRANT MEMORANDUM OF AGREEMENT
This Memorandum of Agreement is made and entered into this day of __________by and between _________(Homeowners) and the CITY OF ARCADIA, a municipal corporation (“City”). Homeowners and City hereby agree as follows:
1. As a participant in the Home Im provement Grant Program (“Program”), Homeowners are receiving from Ci ty a Community Development Block Grant funded Home Improvement Grant in the amount of , _________________ Dollars ($ _____-.00) (the “Grant”) for rehabilitation of property described in Exhibit A, which is attached hereto and incorporated herein, (the Property”), and has a street address of __________ in the CITY OF ARCADIA.
2. Pursuant to the Program, among other things Homeowners agree t o retain ownership of the Property for no less than five (5) full calendar years after the completion of all rehabilitation work.
3. The required five-year period of ownership of the Property by Homeowners ends on __________ when the grant is forgiven.
4. If Homeowners choose to transfer any interest in the Property before the date set forth in paragraph 3, above, then Homeowners must reimburse City the full amount of the Grant.
5. If Homeowners transfer any interest in the Property before the date set forth in paragraph 3, above, then the City must re ceive notice addressed to the following:
CITY OF ARCADIA
HOME IMPROVEMENT PROGRAM
240 W. HUNTINGTON DR.
ARCADIA, CA 91007
6. This Memorandum is prepared for the purpose of recordation only and it in no way modifies any provision of the Agreement.
7. Reference is hereby made to t he Agreement and all documents relate d to the G rant, in their enti rety, for a ny and all pur poses.
True copies of the Agreement and those documents are on file in the offices of City at 240 W. Huntington Dr., Arcadia, CA 91007.
CITY OF ARCADIA
Date: ______________________ By: ______________________________ Community Development Administrator
HOMEOWNER(S)
Date: _______________________ __________________________________
Date: _______________________ __________________________________
FY23-24
H.I.P. Guidelines
ATTACHMENT C
CITY OF ARCADIA
DEVELOPMENT SERVICES DEPARTMENT
HOME IMPROVEMENT PROGRAM
PHOTOGRAPHY PERMISSION FORM
I, the undersigned, hereby grant per mission to the C ity of Arca dia and its officials, officers, employees, representatives, an d agents (collectiv ely the “City”), and also the Development Authority of the County of Los Angeles, the Housing Authority of the County of Los Angeles, the County of Los Angeles and their offi cers, employ ees and agents (collectively the “ County”), to use and/or publish for the City and Count y purposes, the photographs of the persons, properties and facilities described herein.
I, the undersigned, hereby hold harm less an d specifical ly waive an d release th e City and County from a ny and all claims, now or i n the fut ure that m ay arise out of the City and County’s use and/or publication of the photographs described herein.
________________________________________
Date of Photograph
__________________________ and/or_________________________________ Name of Person(s) Photographed Name of Property and Facility Photographed
________________________________________________________________ Name of Person(s) Granting Permission (“Permittor”)
________________________________________________________________ Address and Telephone Number of Person(s) Granting Permission (“Permittor”)
________________________________________________________________ Relationship of Permittor to the Person(s) and Facility Photographed
___________________________________________
Signature(s) of Permittor
___________________________________________
Date
City of Arcadia
CDBG Senior Meal Program Policy
Mission
The mission of the City of Arcadia Senior Meal Program is to provide low -cost, nutritious meals, and socialization to the community. The program is open to people 50 years or older and does not have residency requirements. Clients who are 55 years of age and older, or meet other criteria of eligibility, qualify for subsidized assistance through the Community Development Grant Program (CDBG).
S
ervices Provided
Arcadia Senior Meal Program not only provides seniors with a healthy, affordable meal option, but provides a social environment for individuals to combat isolation and extend lifelong learning. Throughout the year, several events are held during Senior Meal Program including birthday lunches, entertainment, and educational presentations.
T
racking
First time clients who wish to purchase a meal will be asked to show verification by State/Federal Issued ID. Individuals 55 years of age and older and older or who meet CDBG eligibility will be given a Client Intake Form that is to be completed and returned back to staff. All Client Intake Forms will be entered into CDBG website as soon as possible. Completed Client Intake Forms and tracking sheets are filed and stored in Recreation Supervisor’s Office. The intake forms will be kept in storage for 5 years. When clients return to purchase lunch, staff will check the CDBG data base to confirm they have submitted a Client Intake Form for the current fiscal year.
I
mplementation
Arcadia Senior Meal Program, in conjunction with the contracted caterer, creates a monthly menu that is publicly posted and is subject to change. Tickets for lunch are sold at the front desk starting at 7:30am until 12:15pm or until lunch is sold out . Individuals between the ages of 50 -54 may purchase a meal for $4, while people 55 years of age and older or who meet CDBG eligibility, pay a subsidized price of $2. The clients must pay prior receiving a meal and no reservations are to be made for any subsequent day’s lunch. At the conclusion of the program at 12:15pm, if there is leftover food , clients are allowed to have second portions, so long as it is consumed in the dining room. Taking food home is not allowed and materials are posted i nforming clients that doing so can put them at risk for food borne illnesses.
R
eporting
In accordance with Federal requirements for CDBG, staff will document the number of clients 55 years of age and older or who meet CDBG eligibility receiving meals. Staff will also submit a CDBG Quarterly Performance Reports.
Attachment "C"
City of Arcadia
CDBG Information and Referral Program Policy
Mission
The mission of the City of Arcadia Information and Referral Program is to assist people in need of social services and information on a variety of topics. The program is open to the public, regardless of age, race, gender, sexual orientation, physical ability or residency .
Clients who are 55 years of age and older qualify for subsidized assistance through the Community Development Grant Program (CDBG).
S
ervices Provided
The City of Arcadia Information and Referral Program provides the public with essential information to navigate the world around them. For the seniors, it allows them to maintain independent living and healthy lifestyles. Information is compiled and distributed for the following topics: government benefits, income taxes, notary public, housing , Medicare/Medi-Cal assistance, homelessness information, and veteran’s resources.
T
racking
When a client 55 years of age and older or who meet CDBG eligibility inquires in person about information and referral services, they will be given a Client Intake Form that is to be completed and returned back to staff. Staff will then ask for verification of age by State/Federal Issued ID. All Client Intake Forms will be entered into CDBG website as soon as possible. Completed Client Intake Forms are filed and stored in Recreation Supervisor’s Office.
I
mplementation
When an individual is requesting information, staff and volunteers will first look through the complied Information and Referral cabinet for relevant handouts on the topic inquiry . If the cabinet does not hold the desired information or more assistance is required, the participant will be referred to the Recreation Coordinator supervising the Information and Referral Program. At that point, the Recreation Coordinator will research more resources and/ or refer the individual to the appropriate social service agency.
R
eporting
In accordance with Federal requirements for CDBG, s taff will document the number of clients 55 years of age and older or who meet CDBG eligibility receiving information and referrals. Staff will also submit a CDBG Quarterly Performance Reports.
Attachment "D"