HomeMy WebLinkAboutReso 33-2018 (18-151)File Number: 18 -151
City of South San Francisco
City Council
Resolution: RES 33 -2018
P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
Enactment Number: RES 33 -2018
A RESOLUTION APPROVING AN AMENDMENT TO THE CITY'S
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL
ACTION PLAN FOR FISCAL YEAR 2017 -2018 TO RE- ALLOCATE
$180,000 FROM THE HOUSING REHABILITATION LOAN
PROGRAM TO PUBLIC IMPROVEMENT PROJECTS.
WHERAS, the City Council approved the Community Development Block Grant (CDBG) Annual
Action Plan for Fiscal Year 2017 -2018 on April 26, 2017; and
WHEREAS, in the 2017 -2018 Annual Action Plan, $250,000 was budgeted for a Revolving Loan Fund
(RLF) to support the Housing Rehabilitation Loan Program; and
WHEREAS, the RLF was expected to help meet the Department of Housing and Urban Development's
(HUD) requirement for the City to expend funds in a timely manner, by using funds to help low- and
moderate - income households through the City's Housing Rehabilitation Loan Program; and
WHEREAS, to maximize resources and improve efficiency, the City is working with other members of
the CDBG San Mateo County Cohort on a collaborative effort to streamline administration of Housing
Rehabilitation Loans; and
WHEREAS, this new, collaborative program will not be in place in time to meet HUD's timeliness
deadlines in this fiscal year; and
WHEREAS, to ensure the City meets timeliness obligations despite the delay in the Housing
Rehabilitation Program, the 2017 -2018 Annual Action Plan must be amended to re- allocate $180,000
from the Housing Rehabilitation Program to Public Improvement projects; and
WHEREAS, the process for amending the Annual Action Plan is outlined in the Citizen Participation
Plan (CPP), which requires a public hearing for any funding changes of $50,000 or more;
WHEREAS, a duly noticed Public Hearing was held on February 28, 2018 to hear public testimony and
comments pertaining to amending the Annual Action Plan for Fiscal Year 2017 -2018 to re- allocate
$180,000 from the Housing Rehabilitation Program to Public Improvement projects.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that
the City Council hereby:
Approves the Amendment to the Annual Action Plan for Fiscal Year 2017 -2018, attached to this
City of South San Francisco Page 1
File Number: 18 -151
Resolution as Exhibit A.
Enactment Number: RES 33 -2018
At a meeting of the City Council on 2/28/2018, a motion was made by Richard Garbarino, seconded by
Pradeep Gupta, that this Resolution be approved. The motion passed.
Yes: 5 Mayor Normandy, Mayor Pro Tern Matsumoto, Councilmember Garbarino,
Councilmember Gupia,,-and Councilmember Addiego
Attest by
Krista
City of South San Francisco Page 2
CITY OF SOUTH SAN FRANCISCO
2017-2018 PROPOSED ANNUAL ACTION PLAN AMENDMENT
The City of South San Francisco adopted its 2017-18 Annual Action Plan for the use of federal
Community Development Block Grant (CDBG) funds on April 27th, 2017. The City submitted
this Plan to the Department of Housing and Urban Development (HUD) and HUD subsequently
approved the City’s Plan.
In the 2017-2018 Annual Action Plan, the City budgeted an anticipated $415,000 for its 2017-
2018 CDBG funding allocation, as well as about $695,000 generated by program income and
rollover funding. When the City was originally preparing the 2017-2018 Annual Action Plan, in
spring of 2017, the City was under the assumption that a Revolving Loan Fund (RLF) would
provide the flexibility to help manage the unexpected and unplanned program income that had
been generated in the past through prior loan programs. As part of the City’s commitment to
CDBG, the RLF was expected to help meet the obligations to expend funds in a timely manner
and to use these funds to help low- and moderate-income households and neighborhoods through
the City’s Housing Rehabilitation Loan Program. Residential housing rehabilitation projects are
very time and effort intensive, and require a wide range of skills, such as loan underwriting and
construction management, to be successful. To maximize resources and improve efficiency, the
City is currently working with other members of the CDBG San Mateo County Cohort on a
collaboration effort to help streamline and administer Housing Rehabilitation Loans and the
work associated with residential rehabilitation construction projects throughout the County and
other cohort jurisdictions, including South San Francisco. It is anticipated that this program will
not be in place in time to meet HUD’s timeliness deadlines. To ensure that the City meets
timeliness obligations despite the delay in the Housing Rehabilitation Program, the City will
amend its 2017-2018 Annual Action Plan to re-allocate $180,000 from the Housing
Rehabilitation Program to Public Improvement projects.
CDBG PROGRAM CHANGES
Housing Rehabilitation Program
The City’s Housing Rehabilitation Program was budgeted at a total of $250,000. The project
includes preparing and completing housing rehabilitation loans that fund health and safety
repairs. The program includes new guidelines and loan underwriting requirements. There is
regional interest in supporting this project and implementation has been temporarily delayed
pending regional cooperation. In order to meet HUD’s spending timeliness requirements and to
efficiently invest the CDBG funding in the community, the City would like to move funds from
the Housing Rehabilitation Program into the Public Facility Improvements program. The City
anticipates additional funding will be available for the Housing Rehabilitation Program in the
2018-19 program year when the Housing Rehabilitation Program is ready to begin making loans.
2017-2018 Output: Homeowner Housing Rehabilitation Program
Original Goal: 4 Rehabilitation loans/projects
New Goal: 0 Rehabilitation loan/project
Goals Addressed: #1 – Increase, Maintain & Improve Affordable Housing
Original Funding: $250,000
Amended Funding: ($180,000)
Total Funding: $70,000
Public Facilities and Infrastructure Improvements
The City of South San Francisco will use the funds to provide public right of way and facility
improvement in the City with the Uptown and Downtown areas as the priority areas. The goal of
this project is to sustain and/or increase the level of business and economic activity in areas that
serve or have a high percentage of low-income residents. The public improvement projects
included, but were not limited to, lighting and street crossing improvements, parking facility
accessibility improvements, parks/playlot improvements, and projects related to the City’s ADA
Transition Plan. With the additional funding, the Public Improvements will be implemented to
support safety improvements, ADA accessibility, and improvements to existing public facilities
that serve the CDBG Service Areas. Such projects will include updating and improving lighting
to address safety concerns in the public right of way; improving public pathway improvements,
HVAC updates to the senior center, and additional parking lot and ADA access improvements.
2017-2018 Output: Public Facilities and Infrastructure Improvements in CDBG target area
neighborhoods
Original Goal: 4 Public Infrastructure and Facility Improvement Projects
New Goal: 6 Public Infrastructure and Facility Improvement Projects
Goals Addressed: #4 – Preserve and Improve Public Right of Way or Facilities
Original Funding: $486,210
Amended Funding: $180,000
Total Funding: $666,210