CDBG Ad-Hoc Committee
City of Rialto
Regular Meeting - Final
Zoom Presentation5:30 PMTuesday, May 31, 2022
Notice is given that the Rialto City Council has declared a Local Emergency still exists related to COVID-19. Some meetings will be held virtually. The CDBG Ad-Hoc Committee will participate in the meeting from remote locations.
Join Zoom Meeting
https://us02web.zoom.us/j/84571454819?
pwd=c1Vkdm1yRS9DeTJ3NmN4aFV2TjFkUT09
Meeting ID: 845 7145 4819
Passcode: 854733
CALL TO ORDER
ROLL CALL
PRESENTATIONS
CDBG22-514 CDBG Program Applicant Presentations.
a. Each applicant will be allowed 3 minutes to present
REPORTS/DISCUSSION ITEMS
CDBG22-515
2022-2023 CDBG Subrecipient Funding Review
CDBG22-516
2020-2021 CDBG-CV Activity Programming
PUBLIC COMMENTS
ADJOURNMENT
1 City of Rialto
Legislation Text
File #: CDBG22-514, Version: 1, Agenda #:
For CDBG Ad-Hoc Committee Meeting [May 31, 2022]
TO: Honorable Ad-Hoc Committee
FROM: Lissette Montoya, Avant-Garde Inc.
CDBG Program Applicant Presentations.
a. Each applicant will be allowed 3 minutes to present City of Rialto Printed on 5/27/2022Page 1 of 1
powered by Legistar™
2 City of Rialto
Legislation Text
File #: CDBG22-515, Version: 1, Agenda #:
For CDBG Ad-Hoc Committee Meeting [May 31, 2022]
TO: Honorable Ad-Hoc Committee
FROM: Lissette Montoya, Avant-Garde Inc.
2022-2023 CDBG Subrecipient Funding Review
CDBG Ad-Hoc Committee consideration of Community Development Block Grant (CDBG) funded projects for FY 2022/2023.
RECOMMENDED ACTION(S):
Request the CDBG Ad-Hoc Committee to (1) Receive presentations; and (2) provide funding recommendations for the FY 2022-2023 CDBG.
BACKGROUND
The City of Rialto (City), as an entitlement city, receives Community Development Block Grant (CDBG) Program funds on an annual basis from the U.S. Department of Housing and Urban Development (HUD) to carry out a wide range of community development activities to benefit low-income residents. On an annual basis the City receives an estimated $1.2 million.
On April 4, 2022, the City of Rialto was notified by HUD that a waiver had been issued advising Cities to not submit Annual Action Plans to HUD until CDBG Funding allocations for FY 22-23 had been received. HUD waives 24 CFR
92.212(b) allowing Cities to submit their Annual Action Plan 60 days after allocation announcements.
On May 13, 2022, HUD announced that the City of Rialto is receiving $1,173,560 in community development block grant funds. Rialto received $26,540 less than what was estimated.
The City also has $200,000 of prior year funds available for programming, based on projects and/or activities that were completed and closed out. As a result, the City has a total of $1,373,560 in CDBG funds available to commit to eligible projects.
Annually the City can utilize up to 15% of its CDBG allocation for public service activities and up to 20% of their CDBG allocation for Administration of CDBG programs, this includes Fair Housing Services.
Table 1 provides a summary of the available funding, separated by source. The totals represent the net amount, less the allowed administrative percentage to be used to administer the CDBG programs.
Table 1
CDBG Funding Levels
City of Rialto Printed on 5/27/2022Page 1 of 3
powered by Legistar™
3 File #: CDBG22-515, Version: 1, Agenda #:
CDBG FY 2022-2023
$ 1,173,560 CDBG Allocation
$ 200,000 Carryover Funds
$ 1,373,560 Total Allocation
$ (234,712) Administration CAP (20% of Allocation) $ (176,034) Public Service CAP (15% of Allocation) $ (434,000) Section 108 Loan Repayment
$ 528,814 Available for non-public service projects
DISCUSSION
On March 7, 2022, the Ad Hoc Committee recommended the funding proposed below for CDBG eligible activities based on the projected allocation of $1.2m.
Ad-Hoc Recommendations
2022-2022 CDBG Public Service Activities:
Easterseals Southern CA: Autism Services Health Disparities Program $40,000 Legal Aid Society of San Bernardino: Rialto’s Legal Aid $23,700 Rialto Family Health Services: Veterans Affairs Assistance Program $28,700 Arrowhead United Way: Public Service Housing, Food, and Transportation $ 7,700 National Council of Negro Women/Bethune Center: Young Adults Academic and Job Training Program $42,000
City of Rialto: Rialto Senior Computer Lab $15,000 City of Rialto: Rialto Teen Computer Lab $20,000
City of Rialto: Community Services Scholarship Fund $ 5,000 2022-2023 CDBG Capital Activities:
City of Rialto Housing Division: Mobile Home Repair Program $125,895 City of Rialto: Community Center Buildings & Tenant Improvements Building 400 $268,105 City of Rialto: Sidewalk, Curb, Gutter $150,000
City of Rialto: Section 108 Loan Repayment $434,000 2022-2023 Program Administration Activities:
CDBG Program Administration $208,000
Inland Fair Housing and Mediation Board: Fair Housing Program $ 32,000 Based on the reduction of funding in the amount of $26,540, the Public Services allocations need to City of Rialto Printed on 5/27/2022Page 2 of 3
powered by Legistar™
4 File #: CDBG22-515, Version: 1, Agenda #:
Based on the reduction of funding in the amount of $26,540, the Public Services allocations need to be reduced by $6,066, administration will need to be reduced by $5,288 and the Capital Activities will need to be reduced by $15,186.
We are requesting that the Ad-Hoc committee provide direction on the revised allocations based on the amount of CDBG funds received and available carryover.
The CDBG Ad Hoc Committee’sfinal recommendations will be presented at the June 28, 2022, City Council meeting as part of the City’s Annual Action Plan.
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA).
FINANCIAL IMPACT
The City of Rialto is receiving $1,173,560 in federal community development block grant funds and has $200,000 of prior year funds available. Total CDBG funds available for programming in FY 22-23 is $1,373,560. There will be no impact to the general fund.
RECOMMENDATION
Staff recommends the CDBG Ad-Hoc Committee (1) Receive presentations; and (2) provide final funding recommendations for the CDBG FY 2022-2023 Annual Action Plan.
City of Rialto Printed on 5/27/2022Page 3 of 3
powered by Legistar™
5 City of Rialto
Legislation Text
File #: CDBG22-516, Version: 1, Agenda #:
For CDBG Ad-Hoc Committee Meeting [May 31, 2022]
TO: Honorable Ad-Hoc Committee
FROM: Lissette Montoya, Avant-Garde Inc.
2020-2021 CDBG-CV Activity Programming
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 April 1, 2024, to expend CDBG-CV funds.
DISCUSSION
Based on the feedback received at the May 10, 2022, City Council meeting, we recommend that the city reprogram the funding as noted below and consider the below noted recommend changes to the City of Rialto Printed on 5/27/2022Page 1 of 3
powered by Legistar™
6 File #: CDBG22-516, Version: 1, Agenda #:
city reprogram the funding as noted below and consider the below noted recommend changes to the current guidelines for the Rental, Mortgage, Utility and Storefront Businesses Assistance Programs.
Activity Original Budget Proposed
Revised
Budget
Net Change
Rental, Mortgage, Utility $760,000 $760,000 $0
Small Business $200,000 $200,000 $0
COVID Testing $100,000 $0 ($100,000)
Social Worker Action Group (SWAG) $197,162 $197,162 $0
Workforce Development $ 57,162 $ 57,162 $0
PPE and Hot Meals for Senior Citizens $ 25,260 $ 25,260 $0 Food Insecurity Program $0 $100,000 ($100,000)
1. Rental, Mortgage, Utility:
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
1. Reduction of household income (job loss, reduced work hours) v.Lease Agreements or Mortgage Statements
vi. Past due utility bill for utility assistance
It is recommended that the city update their current guidelines for the Rental, Mortgage, Utility Program to include the following changes:
Current Eligibility Recommended Change
$4,800 for Rent/Mortgage & $500 Utilities $5,300 for Rent/Mortgage & Utilities Utilities Include: Gas, electricity, water, and sewer Utilities Include: Internet, Gas, electricity, water, and sewer
2. Storefront Business Assistance
a. HUD Requires the following to determine eligibility:
i. Must be a For Profit Business
ii.Must demonstrate Covid Impact
iii. Must meet National Objective
1. Service a Low-Moderate Income Area OR
2. Create Jobs for Low Income Residents OR
3. Retain Jobs for Low Income Residents
City of Rialto Printed on 5/27/2022Page 2 of 3
powered by Legistar™
7 File #: CDBG22-516, Version: 1, Agenda #:
It is recommended that the city update their current guidelines for the Storefront Business Assistance Program to include the following changes:
Current Criteria and Eligibility Recommended Change
$4,000 for Rent/Mortgage Only Up to $10,000 use towards Rent, Utilities, PPE, & Business Expenses
Must have less than 25 employees Must have less than 25 Full-Time Employees; part-time employees are exempt from the count
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. Therefore, it is recommended that the funds be reprogrammed to a Food Insecurity Program.
It should be noted that applicants that have received funding, will be eligible to re-apply for additional funds if benefits are not duplicated.
CONCLUSION
It is recommended that the Ad Hoc Committee direct staff on the re-programming of CDBG-CV funds.
City of Rialto Printed on 5/27/2022Page 3 of 3
powered by Legistar™
8