Council Meeting: March
26, 2002 Santa
Monica, California
TO: Mayor
and City Council
FROM: City
Staff
SUBJECT: Public
Hearing and Approval of an Amendment to the Consolidated Plan (FY 2000-05) as
Required by the U.S. Department of Housing and Urban Development (HUD)
INTRODUCTION
This report recommends the City Council hold a public
hearing to approve an amendment to the Consolidated Plan (Attachment I) as
required by the U.S. Department of Housing and Urban Development (HUD).
BACKGROUND
The City’s Consolidated Plan (FY 2000-05) was adopted
by City Council and submitted to HUD in June 2000 and specifies the City’s
overall housing and community development needs. The City’s One-Year Action Plan, which is a component of the
Consolidated Plan, is submitted annually to HUD and delineates the City’s
specific projects and activities for one-year use of CDBG and HOME funds in
order to meet these needs. According
to Federal regulations, the City “shall amend its approved plan whenever it
makes one of the following decisions: 1) to make a change in its allocation
priorities or a change in the method of distribution of funds; 2) to carry out
an activity, using funds from any program covered by the Consolidated Plan
(including program income), not previously described in the action plan; or 3)
to change the purpose, scope, location, or beneficiaries of an activity.”
DISCUSSION
An amendment to the City of Santa Monica’s Consolidated Plan is necessary in order to allocate CDBG program income, not previously described in the Action Plan, and make a change in its allocation priorities in order to expedite the expenditure of CDBG funds for affordable housing projects. CDBG program income of $2 million for FY 2001-02 was projected in the FY 2001-02 Action Plan. However, three properties assisted with CDBG earthquake funds were recently sold by the property owners, resulting in unanticipated additional program income of $1.4 million, which staff proposes to allocate to eligible costs associated with new construction and acquisition/rehabilitation of multi-family properties for low-income and very low-income persons.
In addition, prior year CDBG funds ($220,000) had been allocated to the Pier Access Elevator project as indicated in the FY 1998-99 One-Year Action Plan. This proposed project was to make the pier accessible for people with disabilities. Since the building of an accessible elevator from the ground floor to the pier deck is one of the provisions in the current signed lease agreement with the new tenant, staff now proposes to reprogram the $220,000 to eligible costs associated with new construction and acquisition/rehabilitation of multi-family properties for low-income and very low-income persons. This is consistent with one of the housing priorities identified in the Consolidated Plan, which is to expand the supply of housing affordable to lower and moderate-income households, particularly for renters.
In the Proposed FY 2002-03 Action Plan, which will be
going to City Council on June 18, staff will propose the reallocation of
unobligated CDBG funds, as well as approximately 40% of the FY 2002-03 CDBG
entitlement, to the Virginia Avenue Park Expansion project, which is currently
underfunded and scheduled for construction in FY 2002-03.
BUDGET/FINANCIAL IMPACT
Community Development Block Grant (CDBG) funds in the
amount of $1,620,000 are proposed to support new construction and
acquisition/rehabilitation of multi-family properties for low-income and very
low-income persons. Funds are available
in account C19005002.589000.
RECOMMENDATION
City staff recommends the City Council hold a public
hearing and approve an amendment to the Consolidated Plan (Attachment I) as
required by the U.S. Department of Housing and Urban Development (HUD).
Prepared by: Barbara
Stinchfield, Director
Julie
Rusk, Human Services Manager
Susan Lai, Senior Administrative Analyst
Community and Cultural Services Department
Jeff Mathieu, Director
Bob Moncrief, Housing and Redevelopment Manager
Martin Kennerly, Administrative Services Officer
Resource Management Department