City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Ken Zuidervaart, Planning Director
Date: 03/08/2022
Subject: Community Development Block Grant and Home Programs RECOMMENDED ACTION: Should the City Council agree with staff’s recommendation, the following motion would be appropriate:
“The City Council approves the recommended 2022-2023 CDBG and HOME Programs funding allocations and directs staff to process the necessary documentation with San Joaquin County to facilitate this grant program.”
DISCUSSION/ANALYSIS:
The Community Development Block Grant (CDBG) program is a flexible program that provides communities with resources to address a wide range of unique community development needs.
The CDBG program allocates annual grants to urban counties to develop viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low- and moderate-income persons. CDBG funds must be used for activities that benefit low- and moderate-income persons. In addition, each activity must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevention or elimination of slums or blight, or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available.
The Department of Housing and Urban Development (HUD), administered through the County of San Joaquin, anticipates providing Ripon an estimated $88,094 in CDBG funds and $28,911 in HOME funds for the 2022-2023 funding cycle, intended to assist in resolving identified community development needs and housing problems. Of the estimated $88,094 in CDBG funds, fifteen percent shall be obligated ($13,214) to public service programs serving the needs of low- and moderate-income persons within the City of Ripon.
CDBG Grant Funds
CDBG funds are essentially broken into two categories, 85% of the funds can be used for Public Works Programs (i.e. Public Facilities and Improvements such as infrastructure improvements) and no more than 15% shall be obligated for public service programs serving the needs of low income families in the community.
This year the City of Ripon is slated to receive approximately $88,094 in CDBG funds. Of those funds, approximately $69,880 can be used for a Public Works Program/Project and $5,000 for administrative allowance.
Over the years the City has had difficulty finding eligible projects to use our CDBG funds due to the fact that Ripon did not have any eligible census tracts that met the low to moderate income requirements. Therefore money was mostly used on updating handicap ramps throughout the community, which was an eligible project. Additionally, our Senior Center is a facility in Ripon that is eligible for use of these funds, since seniors automatically qualify under CDBG funding requirements. This year Staff is recommending to once again allocate the Public Works portion of the funds to the Senior Center Retrofit Project. As you recall the Senior Center Retrofit project included three components:
Installation of a split system HVAC unit in the kitchen (already completed); Replacement of some existing flooring within the facility; and Updating the front façade of the building to include an outdoor covered patio area.
To date the HVAC system has been installed and our contracted architect (SKW & Associates) has completed the necessary plans for the retrofit project. The plans have gone through plan check with the City of Ripon’s building department and currently Staff is working on compiling bid documents for the project. Staff anticipates having all documents in hand and going out to bid this spring for the façade improvements, which will also include the new flooring. Staff hopes to start construction on the project late spring to early summer.
To date, the City of Ripon currently has approximately $235,000 in CDBG funds for this project, with an anticipated additional $69,880 being allocated for the 2022-2023 CDBG Funding cycle.
This will bring the City’s CDBG fund balance for this project to a little over $304,000.
Additionally, the City received one time Covid CDBG funds of $54,092 and $58,390 to be used for pandemic relief and/or for pandemic preparedness. Both these funds have been allocated to the Senior Retrofit project as well, bringing the grand total for this project to $416,845. Staff does not anticipate that this project will use the entire available funds, therefore once the project is complete, staff will bring back other options of eligible projects for Council’s direction.
For the public service programs portion of the funds (15%), the County of San Joaquin has made some changes to how the CDBG funds are to be dispersed to each of the participating jurisdictions, due to an audit and recommended changes from HUD. Many of the public service agencies provide services to all of the participating jurisdictions throughout the county and ask for funds from each City. Each City was then responsible for managing their own contracts with these jurisdictions, which caused duplicated efforts in each City. One of the significant changes to the program is that now the County will manage these contracts for the public agencies providing services to multiple jurisdictions, eliminating the need for multiple contracts with each agency. The other request from HUD is that contracts entered into with public agencies have a minimum funding of at least $5,000. This eliminates many duplicative man-hours for contracts only worth $1,000 to $1,500 within each of the jurisdictions.
Following are the applications received either by the City of Ripon directly or by San Joaquin County requesting funds for providing services within the City of Ripon.
Four public service applications were received:
Bethany Home Society is requesting $5,000 to continue the meals on wheels program providing approximately 12,000 fresh meals five days a week to 134 Ripon seniors annually through a congregate setting and delivery to homebound seniors. Staff is recommending funding for this program in the amount of $5,000. (Received by the City of Ripon – City of Ripon Contract) Emergency Food Bank of Stockton/San Joaquin is requesting $3,000 for their Mobile Famer’s Market program. This program targets two sites in Ripon, the Ripon Senior Center and the Head Start program at Ripona Elementary School. The overall goal of the program is to see a community strengthened by providing access to fresh fruits and vegetables, healthy cooking demonstrations, health and nutrition related information/handouts and CalFresh (food stamp) information, all in an effort to encourage healthy eating and prevent/reduce the development of chronic health diseases affecting those most vulnerable in our community. Staff is recommending funding for this program in the amount of $3,000. (Received by San Joaquin County on behalf of the City of Ripon – San Joaquin County Contract). Meals on Wheels is requesting $4,000 for their services offered for Ripon residents. Meals on Wheels provides home delivered nutritious meals and personal contact to homebound seniors within each of the cities in San Joaquin County. In order to be eligible, a person must be both 60 years of age or older and homebound. Those seniors that live alone, are older & frail, are the highest priority for the home delivery service. A spouse under 60 or a disabled dependent adult that resides with an eligible senior and is also homebound is also eligible for the meal service. A 5-pack of frozen meals are delivered to your door weekly, along with fresh milk and fruit. All menus are reviewed by 2 nutritionists to ensure compliance with Federal Guidelines.
Meals are designed to be low fat, low salt, and low sugar. Meals are delivered once a week by 2pm. Staff is recommending funding for this program in the amount of $3,000. (Received by San Joaquin County on behalf of the City of Ripon – San Joaquin County Contract).
San Joaquin County Fair Housing is requesting $5,463 for their services offered for Ripon residents. The services that they provide include information on tenants and landlord rights and responsibilities; mediation to individuals as an alternative to resolve housing issues for tenants, property management, and owners; seminars and training which include fair housing laws and basic property management for landlords as well as training for tenants including how to locate rentals, proper notices to landlords, etc.; and Counseling for landlords and tenants to help them better understand their rights and responsibilities concerning rental units. The City of Ripon is obligated to provide $1,000 of CDBG funds every year to this service organization. There is approx. $2,214 left in public service program allocation funds therefore staff is recommending funding for this program in the amount of that balance $2,214. (Received by San Joaquin County on behalf of the City of Ripon – San Joaquin County Contract).
Due to the revamped distribution process requested by the County and HUD the City of Ripon is recommending funding Bethany Home at their full $5,000 request, which is the minimum funding allocation per public service agency for each jurisdiction. The remaining funds, $8,214 will be split as indicated below with the County monitoring the applications for those public service agencies that have applied at the County level that provide services within the City of Ripon.
HOME Grant Funds
HOME funds are allocated to the City of Ripon on a formula basis each year similar to the CDBG funding. For fiscal year 2022-2023 Ripon is expected to receive approximately $28,911 in Home Funds. Home funds are to be used for a variety of lowincome housing activities such as tenant-based rental assistance, housing rehabilitation, assistance to homebuyers, and new construction of affordable housing.
To date the City of Ripon has mostly allocated the Home funds to a down payment assistance program that is administered by the County for the City of Ripon. The current balance of Home Funds held by the County for the City of Ripon is roughly $113K not counting the anticipated 2022-2023 HOME fund allocation, which will bring our balance to approx. $142K. Staff has been working with County Staff to bring forth some potential other uses for these funds, however until such time staff is recommending allocating this year’s HOME funds towards the down payment assistance program administered by the County for Ripon residents.
Following is a chart showing the requested and recommended funding allocation for the 2022- 2023 CDBG and HOME fund allocations.
2022-2023 CDBG Fund Allocations
CDBG Projects Requested Recommended
Public Works Program:
Ripon Senior Center Retrofit Project $69,880 $69,880
Administration $ 5,000 $ 5,000
Sub-total $74,880 $74,880
Public Service Programs:
Bethany Home Society - Meal on Wheels $5,000 $5,000
S.J. County Fair Housing $5,463 $2,214
Meals on Wheels $4,000 $3,000
Emergency Food Bank - Mobile Farmer’s Market $3,000 $3,000 Sub-total $17,463 $13,214
Total $92,343 $88,094
2022-2023 HOME FUND ALLOCATION
GAP (Down Payment Assistant) Loans $28,911