TO: Honorable City Council
FROM: City Manager
SUBJECT: Public Hearing – A Resolution of the City Council of the City of Commerce, California, Allocation for the 49th Year of Community Development Block Grant (CDBG) Funds for Fiscal Year 2023/2024 MEETING DATE: February 21, 2023
RECOMMENDATION:
Conduct public hearing
Adopt the resolution authorizing the allocation for the 49th year of Community Development Block Grant (CDBG) funds for Fiscal Year 2023/2024.
Authorize the City Manager or designee to prepare, execute, and submit the Planning Summary, Agreements, and all required documents for the 2023/2024 CDBG Program.
BACKGROUND:
The City of Commerce is a participant city in the County of Los Angeles Small Cities Block Grant Program that distributes Federal Community Development Block Grant (CDBG) funds. Each year, the City receives an allocation of funding administered by the Los Angeles County Development Authority (LACDA) for programs and projects that benefit low to moderate-income persons. The allocation for Fiscal Year 2023/2024 is estimated to be $121,295. The allocation amount is derived from a formula based upon poverty and population estimates drawn from census data for each participating jurisdiction to use within their communities to address identified community development needs. The new Fiscal Year 2023/2024 allocation of $121,295, as well as $67,367 of unallocated prior year funds, for a total of $188,662 will be utilized to fund the proposed Fiscal Year 2023/2024 CDBG projects. Should there be any change to the allocations, adjustments to the budget will be made and in compliance with regulatory requirements.
The City Council will utilize a resolution authorizing the substantial amendment and allocation of the CDBG funds to demonstrate City approval and adoption, which will be forwarded to the LACDA.
ANALYSIS:
The City has provided funding for a variety of programs and projects over the years, including the Home Preservation Grant Program and Code Enforcement Program. The following is a list of continuing programs that the City is recommending for funding in Fiscal Year 2023/2024.
Home Preservation Grant Program
CDBG funds provide grants to income-qualified households throughout the City with up to $25,000.00 to conduct code compliant home improvement repairs, such as painting, roofing and window replacement.
Code Enforcement Program
The City will use CDBG funds to pay personnel costs for Code Enforcement staff to conduct activities, including the collection of housing and other code violation case data located in the northern and southern portion of the City. Specifically, the areas located in low/mod Census Tract 5323.02 (Bristow, Ayers and Bandini), Census Tract 5323.03, Block Group 1 and 3 (Rosini area), and within the southern portion of the low/mod Census Tract 5323.04, Block Group 1 (Veterans Park and Lanto areas). These census tracts are the City’s low/mod residential areas and therefore staff will continue to focus activities in these areas.
The table below shows the allocation of funds for the above-mentioned programs for the proposed Fiscal Year 2023/2024. As shown, the bulk of the new funds are earmarked to be used to improve residences via the Home Preservation Grant Program.
PROGRAMS/PROJECTS
FY 2023/2024
CDBG Budget
CDBG Project
Account Nos.
Home Preservation Grant Program: Construction and Direct Program Administration $175,000
29-2910-71715-10337
Code Enforcement Program:
Personnel Cost
$ 13,662
29-2910-80210.10703
Total CDBG Funding:
$188,662
FISCAL IMPACT:
CDBG funds are Federal funds allocated to the City through the Los Angeles County Development Authority. They provide an additional source of revenue to fund needed programs and reduce the impact to the General Fund.
RELATIONSHIP TO STRATEGIC GOALS:
The issue before the Council is consistent with the Community Quality of Life Guiding Principle 5 of the City’s Strategic Action Plan: “Foster environmentally conscious initiatives and continue to identify and develop city codes that support a clean, well-maintained, sustainable community”. An Action Item titled “Pursue quality of life initiatives through the operating budget and CIP plan” was also developed to provide a pathway for the vision of the Guiding Principal to be realized.
ALTERNATIVES:
Approve staff’s recommendation
Provide staff with alternative direction
ATTACHMENTS:
Resolution
Respectfully submitted: Edgar Cisneros, City Manager
Approved by: Viviana Esparza, Acting Director of Economic Development and Planning Prepared by: Esther Luis, Program Consultant
Reviewed by: Josh Brooks, Director of Finance
Approved as to form: Noel Tapia, City Attorney
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CITY OF COMMERCE
AGENDA REPORT
Item No.