11-B
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to conduct a public hearing to adopt Resolution No. 22-55 - A Resolution approving an
Amendment to the Fiscal Year 2019-2020 Annual Action Plan and an amendment to the Fiscal Year 2020-2021 Annual Action Plan to reallocate Home Investment Partnership (HOME) Funds.
DATE: September 12, 2022
EXECUTIVE SUMMARY
As a result of the COVID-19 pandemic, in June 2020, the U.S. Department of Housing and Urban Development (HUD) released Flexibilities and Waivers which allowed the City to expend up to 25 percent of its HOME allocation and Program Income for administrative and planning costs. This is an increase of 15 percent from the normal 10 percent annual limit. Staff submitted this waiver to HUD in March 2021. It is recommended that the City amend the Annual Action Plans and reallocate some of the CHDO funds to HOME admin to take advantage of the admin cap increase from 10 to 25 percent for FY 2019-2020 and FY 2020-2021.
RECOMMENDATION TO CITY COUNCIL
1) Open the public hearing; take testimonial and documentary evidence; and after considering the evidence, adopt Resolution No. 22-55, approving the Substantial Amendments to the Fiscal Year 2019-2020 & 2020-2021 Annual Action Plans to reallocate HOME investment partnership (HOME) funds from a CHDO project to program administration; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
Staff is proposing to allocate a total of $123,457 of HOME funding in FY 2019-2020 to program administration and a total of $104,319 of HOME funding in FY 2020-2021 to program administration. The total HOME administration allocation increase is $155,108 (15%) and will be funded by reallocating CHDO funds to admin. For FY 2022-2023, a portion of the CHDO funds budgeted in account 910-47228-4215 will be transferred to account 910-42054-4210 to increase the total HOME admin Department 4210 budget to $60,000 (an increase of approximately $24,000). The remaining HOME admin funds from the substantial amendments will be carried over and utilized in subsequent fiscal years.
- Page 1 of 20 -
Staff Report – Substantial Amendment to the Fiscal Years 2019-2020 & 2020-2021 Annual Action Plans September 12, 2022 Page 2 of 2 DISCUSSION As a result of the COVID-19 pandemic, in June 2020, the U.S. Department of Housing and Urban Development (HUD) released Flexibilities and Waivers which allowed the City to expend up to 25 percent of its HOME allocation and Program Income for administrative and planning costs. This is an increase of 15 percent from the normal 10 percent annual limit in fiscal years 2019-2020 and 2020-2021. Staff submitted this waiver to HUD in March 2021. The substantial amendments to the Annual Action Plans are necessary to increase the City’s HOME administration allocation from 10 to 25 percent for FY 2019-2020 and FY 2020-2021. The City received an allocation of $358,813 in HOME funds in FY 2019-2020 and received $135,018 of program income in the same fiscal year. Excluding the carryover amount from prior years, the available HOME funds for FY 2019-2020 is $493,831. This substantial amendment would increase the current approved amount of $35,881 in HOME program administration to the allowable 25 percent cap increase total of $123,457, an additional $87,576 for program administration for FY 2019-2020. The City received an allocation of $368,539 in HOME funds in FY 2020-2021 and receipted $48,740 of program income in the same fiscal year. Excluding the carryover amount from prior years, the available HOME funds for FY 2020-2021 is $417,279. This substantial amendment would increase the current approved amount of $36,787 in HOME program administration to the allowable 25 percent cap increase total of $104,319, an additional $67,532 for FY 2019-2020. PUBLIC NOTICE The public notices for the draft Substantial Amendments were duly published in the Herald Newspaper, and the draft Substantial Amendments were posted on the City’s website on August 12, 2022. ATTACHMENTS
Resolution No. 22-55…………………………………………………………………………..3 (Draft) Substantial Amendment to FY 19/20 Annual Action Plan for HOME funds……...5 (Draft) Substantial Amendment to FY 20/21 Annual Action Plan for HOME funds….....13 - Page 2 of 20 -
CITY OF BELLFLOWER
RESOLUTION NO. 22-55
A RESOLUTION APPROVING AN AMENDMENT TO THE FISCAL YEAR 2019-2020 ANNUAL ACTION PLAN AND AN AMENDMENT TO THE FISCAL YEAR 2020-2021 ANNUAL ACTION PLAN TO REALLOCATE HOME INVESTMENT PARTNERSHIP (HOME) FUNDS THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows: A. The City participates in the Department of Housing and Urban Development's (HUD) Consolidated Plan Process and receives both Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) funds; B. Pursuant to Title 24 of the Code of Federal Regulations, the City is required to submit an Action Plan to HUD detailing the City's proposed uses of its Fiscal Years (FYs) 2019-2020 and 2020-2021 CDBG and HOME allocations; and C. The City prepared the FY 2019-2020 & FY 2020-2021 Annual Action Plan Amendments and provided opportunities to receive public comments on the FY 2019-2020 and FY 2020-2021 Annual Action Plan Amendments from August 12, 2022 through September 12, 2022. SECTION 2. Approval. The City Council approves the FY 2019-2020 Annual Action Plan Amendment attached as Attachment “A” and the FY 2020-2021 Annual Action Plan Amendment attached as Attachment “B,” which are both incorporated by reference.
SECTION 3. The City Manager, or designee, is directed to amend the FY 2022-2023 Operating Budget to reallocate HOME Investment Partnership (HOME) Funds from a CHDO project to program administration. A portion of the CHDO funds budgeted in account 910-47228-4215 will be transferred to account 910-42054-4210 to increase the total HOME admin Department 4210 budget to $60,000 (an increase of approximately $24,000). The remaining HOME admin funds from the substantial amendments will be carried over and utilized in subsequent fiscal years. SECTION 4. Authorizations. The City Manager, or designee, is authorized to take reasonable action needed to implement this Resolution, including submittal of the Action Plan Amendment to the appropriate HUD office on behalf of the City. Page 1 of 2 - Page 3 of 20 -
City of Bellflower Resolution No. 22-55 Page 2 of 2 SECTION 5. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable. SECTION 6. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature. SECTION 7. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto. SECTION 8. This Resolution will become effective immediately upon adoption.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 12th DAY OF SEPTEMBER 2022. ATTEST: Mayra Ochiqui, City Clerk APPROVED AS TO FORM: Karl H. Berger, City Attorney Ray Dunton, Mayor
ATTACHMENTS:
A. Fiscal Year 2019-2020 Annual Action Plan Amendment
B. Fiscal Year 2020-2021 Annual Action Plan Amendment
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Draft
Substantial Amendment No. 3 to the
Fiscal Year (FY) 2019-2020 Annual
Action Plan
- Page 5 of 20 -
City of Bellflower
FY 2019-2020 Annual Action Plan – Substantial Amendment No. 3
Table of Contents
Executive Summary ....................................................................................................... 3 Background .................................................................................................................. 3 AP-15 Expected Resources .......................................................................................... 4 AP-20 Goals and Objectives .......................................................................................... 4 AP-35 Projects and Activities ....................................................................................... 5
APPENDICES
Appendix A – Public Notice and Public Comments
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City of Bellflower
FY 2019-2020 Annual Action Plan – Substantial Amendment No. 3
Executive Summary
Background
The City of Bellflower proposes to increase the HOME administration funds for Fiscal Year 2019- 2020. In June 2020, the U.S. Department of Housing and Urban Development (HUD) released Flexibilities and Waivers which allowed the City to expend up to 25 percent of its HOME allocation and Program Income for administrative and planning costs. The City submitted this waiver to HUD in March 2021. At the time the City did not amend its Annual Action Plan to increase its administrative cap from 10 to 25 percent. Therefore, pursuant to U.S. Department of Housing and Urban Development (HUD) regulations and the City of Bellflower Citizen Participation Plan, these changes are considered a “Substantial Amendment” to the FY 2019- 2020 Action Plan that require specific citizen participation before the change may be considered by the City Council. To allow interested residents the opportunity to review and comment on the proposed changes, the City published the public notice in the Newspaper on August 12, 2022 informing residents of the proposed change to FY 2019-2020 Annual Action Plan, which was available for a 30-day public review and comment period.
Proposed Amendment To The Action Plan
This amendment is necessary to increase the City’s HOME administrative cap from 10 to 25 percent. The City received an allocation of $358,813.00 in HOME funds in FY 2019-2020 and receipted $135,017.96 of program income in the same fiscal year. Excluding the carryover amount from prior years, the available HOME funds for FY 2019-2020 is $493,830.96.
This amendment will increase the HOME Program Administration Activity Project for the FY. The tables in section AP-35 outline the proposed changes to the FY 2019-2020 Annual Action Plan. - Page 7 of 20 -
City of Bellflower
FY 2019-2020 Annual Action Plan – Substantial Amendment No. 3
AP-15 Expected Resources
Program Source of
Funds
Uses of Funds Allocation: Program Income: Prior Year Resources: Total: Expected Amount Available Remainder of Con
Plan
Narrative
Descriptionon
HOME public
-
federal
Acquisition
Homebuyer
assistance
Homeowner
rehab
Multifamily
rental new
construction
Multifamily
rental rehab
New
construction
for
ownership
TBRA
$358,813
$135,018
$860,068
$1,353,899
$0
HOME
funds will be
used to carry
out the
goals and
objectives of
the
Consolidated
Plan
The City received an allocation of $358,813.00 in HOME funds in FY 2019-2020 and receipted $135,017.96 of program income in the same fiscal year. Excluding the carryover amount from prior years, the available HOME funds for FY 2019-2020 is $493,830.96.
AP-20 Annual Goals and Objectives Goals Summary Information Sort
Order
Goal Name Start Year End Year Category Geographic
Area
Needs
Addressed
Funding Goal Outcome
Indicator
1 Administration
2019
2020
Administration
Citywide
Administration
HOME:
$123,457
0 Other
- Page 8 of 20 -
City of Bellflower
FY 2019-2020 Annual Action Plan – Substantial Amendment No. 3
AP-35 Projects and Activities
EXISTING ACTIVITY APPROVED ON JUNE 10, 2019
1 Project Name HOME Program Administration
Target Area City of Bellflower
Goals Supported Administration
Needs Addressed Administration
Funding HOME: $35,881
Description Program Administration
Target Date 6/30/2020
Estimate the number and type of
families that will benefit from the proposed activities N/A
Location Description 16600 Civic Center Drive, Bellflower, CA 90706 Planned Activities Program Management and Oversight
SUBSTANTIAL AMENDMENT NO. 3
1 Project Name HOME Program Administration
Target Area City of Bellflower
Goals Supported Administration
Needs Addressed Administration
Funding HOME: $123,457
Description Program Administration
Target Date 6/30/2020
Estimate the number and type of
families that will benefit from the proposed activities N/A
Location Description 16600 Civic Center Drive, Bellflower, CA 90706 Planned Activities Program Management and Oversight
- Page 9 of 20 -
City of Bellflower
FY 2019-2020 Annual Action Plan – Substantial Amendment No. 3
Appendix A – Public Notice and Public Comments
- Page 10 of 20 -
City of Bellflower
FY 2019-2020 Annual Action Plan – Substantial Amendment No. 3
Public Notice
- Page 11 of 20 -
City of Bellflower
FY 2019-2020 Annual Action Plan – Substantial Amendment No. 3
Summary of Public Comments
Pending.
- Page 12 of 20 -
Draft
Substantial Amendment No. 5 to the
Fiscal Year (FY) 2020-2021 Annual
Action Plan
- Page 13 of 20 -
City of Bellflower
FY 2020-2021 Annual Action Plan – Substantial Amendment No. 5
Table of Contents
Executive Summary ....................................................................................................... 3 Background .................................................................................................................. 3 AP-15 Expected Resources .......................................................................................... 4 AP-20 Goals and Objectives .......................................................................................... 4 AP-35 Projects and Activities ....................................................................................... 5
APPENDICES
Appendix A – Public Notice and Public Comments
- Page 14 of 20 -
City of Bellflower
FY 2020-2021 Annual Action Plan – Substantial Amendment No. 5
Executive Summary
Background
The City of Bellflower proposes to increase the HOME administration funds for Fiscal Year 2020- 2021. In June 2020, the U.S. Department of Housing and Urban Development (HUD) released Flexibilities and Waivers which allowed the City to expend up to 25 percent of its HOME allocation and Program Income for administrative and planning costs. The City submitted this waiver to HUD in March 2021. At the time the City did not amend its Annual Action Plan to increase its administrative cap from 10 to 25 percent. Therefore, pursuant to U.S. Department of Housing and Urban Development (HUD) regulations and the City of Bellflower Citizen Participation Plan, these changes are considered a “Substantial Amendment” to the FY 2020- 2021 Action Plan that require specific citizen participation before the change may be considered by the City Council. To allow interested residents the opportunity to review and comment on the proposed changes, the City published the public notice in the Newspaper on August 12, 2022 informing residents of the proposed change to FY 2020-2021 Annual Action Plan, which was available for a 30-day public review and comment period.
Proposed Amendment To The Action Plan
This amendment is necessary to increase the City’s HOME administrative cap from 10 to 25 percent. The City received an allocation of $368,539.00 in HOME funds in FY 2020-2021 and receipted $48,740.15 of program income in the same fiscal year. Excluding the carryover amount from prior years, the available HOME funds for FY 2020-2021 is $417,279.15.
This amendment will increase the HOME Program Administration Activity Project for the FY. The tables in section AP-35 outline the proposed changes to the FY 2020-2021 Annual Action Plan. - Page 15 of 20 -
City of Bellflower
FY 2020-2021 Annual Action Plan – Substantial Amendment No. 5
AP-15 Expected Resources
Program Source of
Funds
Uses of Funds Allocation: Program
Income:
Prior Year
Resources:
Total: Expected Amount
Available
Remainder of Con Plan
Narrative
Description
HOME public
-
federal
Acquisition
Homebuyer
assistance
Homeowner
rehab
Multifamily
rental new
construction
Multifamily
rental rehab
New
construction
for
ownership
TBRA
$368,539
$48,740
$1,184,725
$1,602,004
$2,835,572
HOME
funds will be
used to carry
out the
goals and
objective s of
the
Consolidated
Plan
The City received an allocation of $368,539.00 in HOME funds in FY 2020 and invoiced $48,740.15 of program income in the same fiscal year. Excluding the carryover amount from prior years, the available HOME funds for FY 2020-2021 is $417,279.15.
AP-20 Annual Goals and Objectives Goals Summary Information Sort
Order
Goal Name Start Year End Year Category Geographic
Area
Needs
Addressed
Funding Goal Outcome
Indicator
1 Administration
2020
2021
Administration
Citywide
Administration
HOME:
$104,319
0 Other
- Page 16 of 20 -
City of Bellflower
FY 2020-2021 Annual Action Plan – Substantial Amendment No. 5
AP-35 Projects and Activities
EXISTING ACTIVITY APPROVED ON JUNE 8, 2020
1 Project Name HOME Program Administration
Target Area City of Bellflower
Goals Supported Administration
Needs Addressed Administration
Funding HOME: $36,787
Description Program Administration
Target Date 6/30/2021
Estimate the number and type of
families that will benefit from the
proposed activities
N/A
Location Description 16600 Civic Center Drive, Bellflower, CA 90706 Planned Activities Program Management and Oversight
PROPOSED SUBSTANTIAL AMENDMENT NO. 5
1 Project Name HOME Program Administration
Target Area City of Bellflower
Goals Supported Administration
Needs Addressed Administration
Funding HOME: $104,319
Description Program Administration
Target Date 6/30/2021
Estimate the number and type of
families that will benefit from the proposed activities N/A
Location Description 16600 Civic Center Drive, Bellflower, CA 90706 Planned Activities Program Management and Oversight
- Page 17 of 20 -
City of Bellflower
FY 2020-2021 Annual Action Plan – Substantial Amendment No. 5
Appendix A – Public Notice and Public Comments
- Page 18 of 20 -
City of Bellflower
FY 2020-2021 Annual Action Plan – Substantial Amendment No. 5
Public Notice
- Page 19 of 20 -
City of Bellflower
FY 2020-2021 Annual Action Plan – Substantial Amendment No. 5
Summary of Public Comments
Pending.
- Page 20 of 20 -