Reallocation CDBG Funds Memo 1/19/10Reallocation of CDBG Funds
city council workshop
Tuesday, January 19, 2010
A. INTRODUCTION & BACKGROUND
The City receives Community Development Block Grant (CDBG) funding annually from the
U.S. Department of Housing & Urban Development (HUD). In each of the last three program
years (PY2007, October 2007 -September 2008; PY2008, October 2008 -September 2009;
and PY2009, current program year), the City received between $230,000 and $250,000 in
formula funding. Some activities that were programmed in previous yeazs (PY2007 and
PY2008) have not yet been initiated.
HUD expects CDBG recipients to expend funds in a timely manners. Communities that fail to
remain timely risk suspension or reduction of future CDBG funding. The question for Council
is what to do about previous year's activities that have not moved forward.
B. UPDATE
Attachment 1 identifies all PY2007 and PY2008 activities that have not yet been initiated (five
projects totaling $175,000). Staff discussed what to do about uninitiated projects with the
relevant subrecipients over the last few months. Where possible, staff worked with
subrecipients to develop spending plans to facilitate timely expenditure. Staff also researched
past CDBG Action/Consolidated plans, received input from Department Directors (a summary
of which is included as Attachment 2), researched project eligibility, etc.
C. RECOMIVIENDATION
Where possible, staff recommends keeping previously awarded funds with the same
subrecipients. MDC, for example, identified a public facilities project (instead of facade
improvements, as previously discussed) for use of their $55,000 award. Staff is hopeful that
MDC can complete this project before August 2010, when HUD checks for timeliness. The
Senior Center worked with staff to develop a Spending Plan for use of most of their remaining
award (please see Attachment 3). Code Enforcement developed a similaz spending strategy.
For reasons explained in Attachment 1, staff recommends reallocating $73,271.96 from
Habitat for Humanity (full award), Code Enforcement (partial award), and the Senior
Center (partial award) to new activities. There is also a small amount of unallocated funds
from PY2008 that is now proposed for distribution to specific activities.
Prolect/Actlvity Re~llocailon
Amount
Habitat $60,000.00
Code Enforcement $11,000.00
Senior Center $1,996.96
Previously Unallocated $275.00
TOTAL $73,271.96
Note: Habitat for Humanity hit some roadblocks with their activity and, as indicated in
Attachment 4, agrees that the City should reallocate their $60,000 award from PY2008.
~ According to federal regulations, a grantee is timely if, sixty days prior to the end of the grantee's program year, the
balance of its line-of-credit does not exceed 1.5 times the most recent annual grant award. The City received $249,947
in the current program yeaz, and therefore must have less than $374,920.50 in its line-of-credit when HiJD checks in
August, sixty days before the end of the current program year. Including this year's award, the City needs to spend
approximately $115,000 among all activities by August to remain timely.
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Staff recommends redistributing these funds to the Food Bank to purchase food and
supplies ($13,271.96), Ada County Housing Authority for homeownership assistance
($20,000.00), and the Public Works Department for design of replacement water/sewer
lines in an LNII area ($40,000.00).
ProjectlActlvlty Reallocation
(RECOMMENDED) Amount
Food Bank $13,271.96
Ada County Housing Authority $20,000.00
Pubiic Works Water Line Design $40,000.00
TOTAL $73,271.96
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Staff s rationale for recommending these activities is as follows:
1. Food Bank: The current economic situation translates into more clients for the Food
Bank. The Food Bank can use this assistance to meet growing demand for their services.
The Food Bank has also been the City's most responsive subrecipient to date. They
have gone to great lengths to adjust their processes to coincide with CDBG program
requirements. They have delivered this service within pre-identified timelines to meet
program goals and objectives and been extremely easy to work with.
2. Ada County Housing Authority: Housing is a central component of the CDBG
program. Since Habitat was unable to move forward with their proposed housing
activity, staff feels it is important to divert some of this funding to housing activities.
Homeownership Assistance is the only housing-related activity proposed for the current
program yeaz. Ada County Housing Authority assisted several buyers to achieve
homeownership last yeaz, and the recommended increase in funding could assist two
more families this program yeaz. ACHA has also been a reliable paztner with a track
record of advancing an activity on time and meeting program objectives.
3. Public Works, Infrastructure Design: Public Works plans to upgrade outdated water
and sewer lines in residential parts of the LMI area in the near future. CDBG funds can
design facilities that will benefit low-moderate income residents. Because it is a design
project, the administrative requirements allow straight forwazd project initiation, and the
simplicity of design versus construction allows timely project completion.
D. DIRECTION REQUESTED
1. What to do about uninitiated projects?
activities as proposed?
Should the City divert funds from past year's
2. What activities should receive reallocated funds?
E. NEXT STEPS
Staff will prepare the required plan amendments to allow reallocation per Council's direction.
Staff will also work with Legal to modify and/or terminate subrecipient agreements as
necessary. A tentative timeline is as follows:
• January 25: Notice Amendments in Valley Times and Idaho Statesman. Post
notice online.
• February 9: Open public hearing and 30 day (minimum) comment period on
proposed amendments.
• March 16: Close public hearing, consider testimony, and act on amendments.
• Mazch/April: Modify subrecipient agreements, complete necessary environmental
review, and initiate projects/activities.
• August: Complete activities.
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Attachment 1: Uninitiated Projects, PY2007 & PY2008
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Attachment 2: Summary Input from Department Directors
From December 8, 2009 Directors Meeting:
Suggestions for reallocation of unused CDBG funds
r (., ~ '4 ~7Dr. ~ .,. ~. e~'7 i.' _ .. ~L iC.~ z{. ,lf~ ~., ...~ (Lt:77!(?l A~)r1i(~I~lf-cj5 Y.iffl'L S7 _. ~~'
_ ,. ._ ')Si: .-il ~'P~, '.il I1+~. `i f' ~'t~_ {<' ~ pct.- i ; ~`f°, '6~i`~ ,1 ;.?7'.. :~il_ ~~~~i ~,
• Housing Authority (ACHA) (Finance)
o Additional assistance for LNII homebuyers.
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~.~li= o3rll~,•l ;_~zitin d'~'c .~fr~•a~.i~ hii u~~s ,.:~1~, I~,ia l'~s~.~(lftl t~ ~t~ii~~;
• Five Mile Creek Segment E or H.1 (Pazks)
o Design of E included in EECBG. Can't spend by August on H.1 or CN of E.
t,~,_ S;. ,~."I {' .. :IICi Pt4'f' i!' ~'L'' 1~ li
• 8s' Street Pazk Playground Equipment (Pazks)
o Need to confirm long term configuration of/uses within pazk.
. ~ ~ . ,
• Centennial Pazk Restrooms (Pazks)
o Community Center slated for $20,000 in improvements. Could this go towazd opening restrooms
in Center for Pazk users? Pre-fab, single unit; waiting for cost estimates.
• Sidewalks Downtown/Routes to School & Match from ACHD (Mayor)
o Sidewalks aze eligible. Environmental and design may be possible by August.
• Community Center (Finance)
o Community Center has $20,000 available for ADA upgrades. Other general improvements may
limit potential uses in the Center in the future and considerably increase administrative
requirements to rent facility.
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• ADA interpreters for summer camp (Pazks)
o $10,000.00 estimate. This service is on request, so we don't know for sure how long it would
take to spend the money (may not happen by August).
~q: ~'?~. ~ ~. ,i.i ~ $)'.' ': ,i'k~ ~(39 ,~~ueP EF,=t~fil Cliff
• Smoke detectors for low income households (Fire)
o Need to determine demand? Would it be beneficial to expand to full safety inspections for LMI
households (fire, building, mold, toxics, etc.)?
• Car Seats for low income households (Finance)
o May be possible, but administratively demanding/time consuming.
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Attachment 3: Senior Center Public Service Spending Plan
MERIDIAN SENIOR CENTER
IDEAS FOR
THE COMMUNITY BLOCK GRANT
ART EDUCATION: Contact Carl Goodwin @ 888-6846_(Each Class will run three weeks a month.
We will begin the classes in March 2010 and go thru July 2010)
1) Pastels: $10.00 per student, ($100 instructor fee. (Limit 10 people)
Three classes: COST: $400
2) Watercolor: $21.00 per student, $100 instructor fee (Limit 10 people)
Three classes: COST: $510
3) Acrylic: $30.00 per student, $ 100 instructor fee. (Limit 10 people)
Three classes: COST: $600
4) Wood Pulp: $10.00 per student, $100 instructor fee (Limit 10 people)
Three classes: COST: $400
5) Drawing: $15.00 per student, $100 instructor fee (Limit 10 people)
Three classes: COST: $450
TOTAL COST FOR ART EDUCATIONAL CLASSES: $2,360
BLOOD TESTING: (Pending on the Dr's office schedule, begin the blood testing in April 2010 and run
through May 2010)
Cholesterol screening would consist of:
1) CBC: Evaluation of weakness, Fatigue and cholesterol issues
2) CMP: Evaluation for diabetes, liver, and kidney functions
3) LIPIDS: Cholesterol and triglyceride evaluation
4) TSH: Detect thyroid function
5) UA: Evaluation of various symptoms' and illnesses
6) Hemoglobin A1C: Glucose testing
Cost per individual: $100 (Limit 50 people) Contact: Zelda, Idaho Minor Emergency 514-4401
TOTAL COST FOR BLOOD TESTING: $5,000
MAMOGRAMS (DIGITAL) Pending on St. Luke's Mammogram schedule begin March 2010 and run thru
April 2010)
Cost per individual $117 (Limit 55 people) Contact: Gena: 706-5680 or Julie: 706-5684
St. Luke's Mammograms
TOTAL COST FOR MAMOGRAMS: $6,435
SHIBA PROGRAM: We will begin this program March 2010, pending the schedule of our SHIBA contact)
This is an on going program, once it is set up.
Additional costs which may not be covered by the initial program
$1,000 Contact: Genii: 334-4352
The remainder of the CDBG funding $1,996.96 we give permission to the City of Meridian to re-allocate to
another organization which has applied for CDBG funding. If possible we would like this amount to go to the
Meridian Food Bank, if they are on the grant listing.
****NOTE: The above given months assigned to each program can change if the instructor or provider wants
them to occur in some other month. We understand that funds will not be released until the end of Feb. 2010
and need to be used by the end of Aug. 2010.
Attachment 4: Habitat Email Regarding Reallocation
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From: Tom Lay [TLay@hthboise.org]
Sent: Monday, December 28, 2009 11:10 AM
To: Matthew Ellsworth
Subject: RE: CDSG Meridian
Matt -
We have had limited success in finding an appropriate lot as of this date. As you are well aware there
are many lots for sale in Meridian and I have looked at a significant percentage. Many are in
developments that do not lend themselves to our modest homes or have CC&Rs that require a much
larger home than we build. I believe that it would be best far the City of Meridian to reallocate these
funds to a more immediate use.
Habitat will continue the search for building {ocations in Meridian. We want to be an integral part of
providing affordable housing appreciate the support we have received from the City of Meridian.
Tom Lay
Executive Director
Boise Valley Habitat for Humanity
R.O. Box 6571 Boise, Idaho 83707
1208) 331-2916 tloy@hfhboise.org
www.hfhboise.org
From: Matthew Ellsworth [mailto:mellsworth@meridiancity,org]
Sent: Monday, December 21, 2009 11:03 AM
To: Tom Lay
Cc: C. Caleb Hood
Subject: RE: CDBG Meridian
Tom,
Have you had any success identifying a lot in Meridian as yet? We are coming down to the wire on
timeliness and I'm set to present to Council on January 19 about keeping the City in compliance with
HUDs regulations. If nothing has surfaced then I'll recommend that Council reallocate the $60,000
previously awarded to Habitat to another activity. Council makes the call, so if you'd tike to provide input
you can do so in writing between now and then.
Either way, the City is still committed to expanding affordable housing in Meridian, so let's keep in touch
in the future about how we can work together toward that end.
Thanks Tom,
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Matthew Ellsworth
Associate City Planner
Meridian Planning Department
33 E. Broadway Avenue
Meridian, ID 83642
P. 208.884.5533
F. 208.489.0575
From: Tom Lay [mailto:Tlay@hfhboise.org]
Sent; Thursday, October 22, 2009 11:00 AM
To: Matthew Ellsworth
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Subject: RE: CDBG Meridian
Matt -
I have been searching for building lots in Meridian that would be appropriate for our homes. As you are
undoubtedly aware it is a buyer's market for land and lots with choices throughout Ada County. Our criteria
includes location, lot size, CC&Rs that will allow a smaller home, surrounding neighborhood as well as price. I
believe that before the end of November we will have found the land we are looking for and will be able to
determine if it would be eligible for acquisition with CDBG funds. I understand the need to redirect these funds if
we cannot make use of them in a timely manner. I will keep you informed as to our progress over the next few
weeks.
Tom Lay
Executive Director
Boise Valley Habitat for Humanity
P.O. Box 6571 Boise, Idaho 83707
1208) 331-2916 tlav@hfhboise.ora
www.hfhboise.org
From: Matthew Ellsworth [mailto:mellsworth@meridiancity.org]
Sent: Thursday, October 22, 2009 9:28 AM
To: Tom Lay
Cc: C. Caleb Hood
Subject: CDBG Meridian
Tom,
I wanted to check in on your progress toward acquiring property in Meridian for future reimbursement through the
CDBG program. When we spoke in August you mentioned that you had some sites in mind but, from what I
recall, you were waiting to see If any of those could come together far a larger, multifamily project. If so, that's
great news and I'm interested in hearing more. If not, you may need to consider a more straight forward
project/use of the $60,000 allocated to Habitat last program year. The City is at a point where we need to keep
an eye out for HUD's expectations on timely expenditure of funds. As a result, if Habitat is unable to identity a site
and make progress toward acquisition soon, the City may need to consider reallocating those tunds.
If you are considering a site and it locks like something may move forward, please let me know with enough
advance so that we can conduct the necessary envkonmental review prior to close. We can't commit CDBG
funds until the environmental review Is complete, and I'd hate for that to push out your timeline or worse, derail a
deal.
Thanks Toml
Matt Ellsworth
Associate City Planner
Meridian Planning Department
33 E. Broadway Ave.
Meridian, ID 83642
208.884.5533
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