Monday, March 21, 2022
City of Rialto
Via Zoom
CDBG Ad-Hoc Committee
Regular Meeting - Final
1 March 21, 2022CDBG Ad-Hoc Committee Regular Meeting - Final Notice is given that the Rialto City Council has declared a Local Emergency, as such, some Public meetings will be held VIRTUALLY. The CDBG Ad-Hoc Committee Members will participate in the meeting from remote locations.
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CALL TO ORDER
ROLL CALL
PRESENTATIONS
None
REPORTS/DISCUSSION ITEMS
CDBG-22-27
2 REQUEST THE CDBG AD-HOC COMMITTEE DIRECT STAFF ON
THE RE-PROGRAMMING OF CDBG-CV FUNDS
PUBLIC COMMENTS
ADJOURNMENT
2 City of Rialto
Legislation Text
File #: CDBG-22-272, Version: 1, Agenda #:
CDBG HOC COMMITTEE MEETING March 21, 2022
TO: Committee Members Councilmember Trujillo and Councilmember Perez:
REQUEST THE CDBG AD-HOC COMMITTEE DIRECT STAFF ON THE RE-PROGRAMMING OF
CDBG-CV FUNDS
BACKGROUND
The City of Rialto programmed $1,339,584 in CDBG-CV funds for the following activities:
Activity Funded
Amount
Rental, Mortgage, Utility $760,000
Small Business $200,000
COVID Testing $100,000
Social Worker Action Group (SWAG) $197,162
Workforce Development $ 57,162
PPE and Hot Meals for Senior Citizens $ 25,260
*The City’s HUD representative has confirmed that the City has until 7/1/23 to expend CDBG- CV funds.
In an effort to ensure that all funded programs meet HUD regulations, the City’s consultant has reviewed programs that have expended funds to date. Upon review of the program files, it has been determined that some programs do not meet HUD requirements.
1. Rental, Mortgage, Utility: In review of the expenditure reports provided by finance, the City completed 467 Rental, Mortgage, and Utility transactions for a total amount of $621,476.54.
Our team sampled over 100 files and found that the required documentation from HUD was not collected, specifically as it pertained to income.
a. HUD Requires that the following documents are collected to establish eligibility:
i. Income Documents for all household members
1. Include two months paystubs, award letters, self-certification forms, unemployment benefits,
ii.Bank Statements from all household members
iii. Latest income tax return
iv. Demonstrate COVID impact
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v. Reduction of household income (job loss, reduced work hours) vi. Lease Agreements or Mortgage Statements
vii. Past due utility bill for utility assistance
To date we estimate that the city will expend $59,000 for Rental/Utility/Mortgage Assistance.
2. The Small Business Assistance program is providing $4,000 for lease payments to eligible businesses. In review of the 19 City-approved Business grants to date, we were able to establish eleven (11) businesses that met HUD requirements. We have approved and drawn down $44,000 for the Small Business Assistance program.
3. The COVID Testing program has expended $93,920 thus far, however, the City was not able to provide documentation to demonstrate proper procurement for purchase of the testing or collection of participant data.
a. Purchases were made from multiple vendors without proper justification. There are no agreements with Medical Centers which were used for Employee testing. Testing Kits were purchased and distributed without collecting participant data.
We are currently working on collecting information from SWAG, the Hot Meals program, and Workforce Development to establish eligibility.
DISCUSSION
Since the expenditure deadline for use of these funds is July 1, 2023, we recommend that the City reduce the funding for these programs to following noted below and consider other eligible uses for timely expenditure:
Activity Proposed
Revised
Amount
Rental, Mortgage, Utility $100,000
Small Business $52,000
COVID Testing $0
Social Worker Action Group (SWAG) $197,162
Workforce Development $57,162
PPE and Hot Meals for Senior Citizens $25,260
Re-allocate to eligible programs/projects $908,000
If the City wishes to reprogram the funds, the City will need to amend its Annual Action Plan. This will require a 15-day public noticing requirement and a public hearing. Below are some possible uses of CDBG-CV funds:
· Rehabilitation of public facility or park infrastructure to include:
o Broadband: wiring, fiber optic cables, permanently fixed equipment to provide City of Rialto Printed on 3/17/2022Page 2 of 3
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4 File #: CDBG-22-272, Version: 1, Agenda #:
o Broadband: wiring, fiber optic cables, permanently fixed equipment to provide broadband internet access in low-moderate income area
o HVAC improvements to prevent COVID spread, plumbing upgrades to improve sanitation
o Creation or improvement of outdoor space for social distancing o Touchless water fountains, automatic doors
· Outdoor Recreation Facilities
o Provide additional space for outdoor activity.
o Purchase and install new gates, removal of architectural barriers that restrict access for elderly or disabled persons.
· Redesign of public sidewalks to encourage social distancing · Food Insecurity Programs
· Funding to additional public services that carryout activities that prepare, respond, or prevent COVID.
o Homeless outreach
o Mental health services
o Food banks
· Administration Costs for CDBG-CV
CONCLUSION
It is recommended that the Ad Hoc Committee direct staff on the re-programming of CDBG-CV funds.
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