PURPOSE

This resolution requests the City Council to approve/file the Consolidated Plan (FY 2003-08) submission for community planning and development programs and activities including, 1) FY 2003-04 Annual Plan and federal fund applications for the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Programs; 2) The CDBG Final Statement of Community Development Objectives and Projected Use of Funds for FY 2003-04; 3) Authorize the City Manager to execute U.S. Department of Housing and Urban Development (HUD) funding agreements for CDBG and HOME; act as the City�s Certifying Officer under 24 CFR, Part 58 � Environmental Review Procedures, and execute sub-recipient contracts with organizations utilizing CDBG and HOME funds, as applicable.

BACKGROUND

The application process for federal funds was consolidated into one procedure pursuant to regulations dated January 5, 1995, covering 24 CFR Part 91, Consolidated Submissions for Community Planning and Development Programs.  The procedure encompasses applications for four formula grants, Community Development Block Grant (CDBG), Home Investment Partnerships Program (HOME), Emergency Shelter Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA).

The Consolidated Plan (Plan) describes Burbank�s community profile including its population and household types, employment, housing inventory and characteristics, housing availability and affordability, and its community development structure.  It includes a strategic plan over five years that covers the City�s priority needs/goals, and resources/programs to address the needs identified.  Lastly, the Plan includes an annual action plan reflecting what resources, programs and activities will be used in FY 2003-04 to achieve specific, quantitative goals related to the strategic plan. 

ANALYSIS

The Plan�s strategic plan describes a general assessment of needs for all households, and particularly very low and low-income households at or below 80% of median family income, including minorities, elderly, disabled, and large families.  The strategy details federal, state, local and private programs and resources available to meet eight priority needs including housing, homeless and special population(s) programs, community facility and infrastructure, economic development, and community services.  During FY 2003-08, the strategy reflects that over $20 million in federal funds and other resources will be required to meet the priority needs identified.

Other areas covered in the Plan include an anti-poverty strategy, actions to affirmatively further fair housing choice and lessen barriers/constraints to the affordability and availability of housing, an institutional structure and coordination to facilitate delivery of programs/services, and a consultation/citizen participation process to receive public opinion on specific needs and concerns from other local jurisdictions, public housing and social service agencies, private and non-profit organizations, and citizens.

The Annual Plan includes new federal funding available this year and other resources to address strategic plan goals.  Burbank is an entitlement community and applies for CDBG and HOME funds.  For 2003, these funds are estimated at approximately $2.6 million.  A CDBG Final Statement of Community Development Objectives and Projected Use of Funds, as approved by the City Council, will program over $1.7 million in CDBG activities, while HOME funds ($904,000) will finance housing projects.  The Annual Plan and federal applications must be submitted to HUD no later than May 15, 2003 for the upcoming year.

Compared with last year, the CDBG entitlement represents over a six percent increase while total program funds are $195,700 more than last year or 12.6 percent higher.

FY 2003 CDBG FUND RESOURCES

 FY 2002 CDBG FUNDS By CATEGORY

* Statutory Limits: Program Administration (20%); Public Services (15%)

FY 2003 HOME funds are $161,000 more than last year or over 21 percent higher.  The Community Development Department plans to use all HOME funds for housing acquisition and rehabilitation projects targeted for focused neighborhoods.  The projects are contracted with the Burbank Housing Corporation, a Community Housing Development Organization (CHDO), and will be submitted for City Council action as they are developed.

For CDBG, a Notice of Fund Availability and a Request for Proposals was published September 28 and October 2, 2002 for capital projects and December 18 and 21, 2002 for public service projects.  Proposals were accepted until October 25, 2002 for capital projects and January 31, 2003 for public services.  A total of 21 requests covering 35 projects/activities and $2.7 million were received.  These included 17 capital projects for $2.3 million and 18 public service projects equaling over $421,000.

The Community Development Goals Committee held meetings on February 25 and March 5, 2003 to receive public comment on the Consolidated Plan needs assessment/strategic plan and regarding the proposed use of federal funds for fiscal 2003.  The Goals Committee met on three other occasions from November 2002 through March 2003 to review proposals and make recommendations, while the City's Executive Staff also met three times during this period to review proposals and make recommendations.

Based on an initial capital project budget of $1,071,850, the Executive Staff recommended approval of ($463,566) in Public Works projects to be prioritized among reconstructing three streets, reconstructing sidewalks/alleys, installing new pedestrian ramps, and creating an access ramp for Lockheed Channel.  Funds were also recommended for expanding the Tuttle Senior Center ($190,000), Code Enforcement ($147,284), Disney Elementary School ($125,000), two projects at Washington Elementary School ($100,000), and improvement projects for Build Rehabilitation Industries ($31,000) and the Burbank Center for the Retarded ($15,000).

The Community Development Goals Committee recommendation was the same as the Executive Staff�s except for the following: Public Works projects were recommended at $535,850, Providencia Elementary School ($75,000) and no funds for Code Enforcement.

On January 14, 2003, City Council approved capital projects as recommended by the Executive Staff with the exception that Providencia Elementary School be funded with CDBG funds from prior years.  However, based on new CDBG information effective September 1, 2003, Providencia Elementary School is no longer eligible.  [CDBG Program � Entitlement Grantees Transition Policy for Low and Moderate Income Summary Data Update for FY 2003, dated 3/4/03)].

Based on 2003 available CDBG, capital funds are $59,348 more than originally estimated in November 2002.  There is an additional $540,000 (Attachment 1) in unprogrammed and unspent funds from prior years that makes total capital funds equal $1,671,198.  Considering this new funding availability, the recommendations of the Executive Staff and CD Goals Committee were revised as shown in Exhibit A.

The Executive Staff recommended that Public Works projects be increased to $1,062,914, while the CD Goals Committee recommended that Public Works projects be increased to $1,210,198.  All other recommendations for each Committee remain the same, excluding Providencia Elementary School.  

Burbank�s entitlement allows an increase in Public Service projects as compared with last year of over 12 percent ($29,363).  The recommendation of the Executive Staff is to fund these agencies at the same level as last year: Salvation Army ($27,000), Build Rehabilitation ($10,100), Burbank Temporary Aid Center ($35,000), Boys & Girls Club ($24,000), Burbank Center for the Retarded ($13,400), Library Literacy ($5,970), and Partners In Care Foundation ($2,900).

Increased project funding and new projects are recommended as follows: Family Service Agency for $27,875 (+$7,275) to continue counseling at-risk youth and parents at their facility, and add a Community Day School program operated in conjunction with the Burbank School District to counsel at-risk middle-high school age youth; Burbank School District-Summer Youth Employment for $80,000 (+$10,000) to compensate for the loss of other program revenue and increase program participation by 60 percent to 80 youth; Burbank Family YMCA at $22,800, Burbank Noon Lions at $2,000 (new); and Schutrum-Piteo Foundation � Adult Day Care Center at $10,000 (new), contingent on the Center being open for operation as of July 2003.  The CD Goals Committee agreed, in concept, with the Executive Staff and endorsed their recommendation.

For the YMCA and Family Service Agency, the Executive Staff and CD Goals Committee want these agencies to decide how the funds are divided among the proposed programs.  Both committees recommend the proposal by the Fair Housing Council of San Fernando Valley ($18,000) be funded with CDBG Program Administration, which in total is recommended at the 20 percent statutory maximum or $348,061.

The recommendations of each committee are detailed in the Proposed Statement of Community Development Objectives and Projected Use of Funds (Attachment 2) and Exhibits A and B.  Exhibit A reflects CDBG Capital Projects as originally approved by the City Council on 1/14/03 and the revised recommendations of the Executive Staff and the Goals Committee to address increased funds of $599,348.  Exhibit B shows all proposals received for Public Services and the recommendations of each Committee.

City Council approval and filing of the FY 2003-08 Consolidated Plan includes the submission of the 2003-04 Annual Plan, the authorization to file applications for CDBG and HOME funds, submitting the Final Statement of Community Development Objectives/ Projected Use of Funds, authorizing the City Manager to act as the City�s Certifying Officer under 24 CFR, Part 58 � Environmental Review Procedures, execute CDBG and HOME Agreements between the City of Burbank and HUD, and execute CDBG and HOME Agreements with various organizations and subrecipients, as applicable.

FISCAL IMPACT

FY 2003 HUD entitlement funds ($1,445,000) represent an increase of over 6 percent ($91,000) as compared to 2002, and total CDBG funds are over 12 percent more than last year ($195,758).  HOME funds ($904,616) are 21 percent higher ($161,616) than 2002.

RECOMMENDATION

STAFF RECOMMENDS THAT THE CITY COUNCIL ADOPT THE PROPOSED RESOLUTION.

Enclosures:

● Consolidated Plan Draft (FY 2003-08)

● Annual Action Plan (FY 2003-04)

● FY 2003-04 CDBG Public Service Proposals

● Exhibit A: CDBG Capital Projects FY 2002-03 and FY 2003-04

● Exhibit B: CDBG Public Service Projects FY 2002-03 and FY 2003-04

● Attachment 1: City of Burbank Proposed Amendment to the Final Statement of Community Development Objectives and Projected Use of Funds � Community Development Block Grant � FY 2000 and 2001 (Consolidated Plan 2000-03)

● Attachment 2: CDBG Proposed Statement of Community Development Objectives and Projected Use of Funds (FY 2003-04))

● Attachment 3: CDBG Eligible Areas and Maps

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