PURPOSE

This resolution requests 1) the City Council to approve/file the fiscal year 2004-05 Annual Plan of the Consolidated Plan (2003-08) submission involving community planning and development programs and activities; 2) File federal fund applications for the Community Development Block Grant and Home Investment Partnerships Programs; 3) File the Final Statement of Community Development Objectives and Projected Use of Funds for 2004; and 4) Authorize the City Manager to execute U.S. Department of Housing and Urban Development funding agreements for Block Grant and HOME Programs, and execute sub-recipient contracts with organizations utilizing Block Grant 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 Code of Federal Regulations Part 91, Consolidated Submissions for Community Planning and Development Programs.  The Consolidated Plan includes, but is not limited to, a needs assessment of housing/community development and the homeless, a housing market analysis, a strategic plan, an annual plan, a monitoring plan, program certifications, and a description of the citizen participation and consultation process undertaken.  The Consolidated Plan is required every five years and was last submitted for the period 2003-08.

The Consolidated Plan�s strategy 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.

The Consolidated Plan covers applications for federal formula grants including Emergency Shelter Grant, Housing Opportunities for Persons with AIDS, Community Development Block Grant and Home Investment Partnerships Programs.  Annually, Burbank is a recipient of and applies for Block Grant and HOME funds.  Activities eligible under the Block Grant program must principally benefit persons of low and moderate income, aid in the prevention or elimination of slums and blight, or address community development needs having a particular urgency.  HOME funds must serve affordable housing activities for very low and low-income households.

For the years between Consolidated Plan submittals Burbank submits an Annual Plan update (Attachment 1) detailing the funding and resources available this year to address strategy goals.  Programs and activities, which meet Consolidated Plan goals are described, and unit objectives by fund resource and dollars to be allocated/expended are quantified.  The Annual Plan also describes what other policy and procedural actions will be implemented to meet goals.  The Annual Plan must be submitted no later than 45 days prior to the start of the fiscal year, or on or about May 15, 2004 this year.

ANALYSIS

The 2004 Annual Plan details federal, state, and local fund resources totaling over $15 million, including $1,669,833 in federal Block Grant entitlement, reallocated funds, and program income, and $898,493 in HOME funds.  These total resources are utilized to meet Consolidated Plan priority needs/objectives in the areas of housing, assistance to the homeless and special needs populations, community facilities, infrastructure, economic development, and community services.   

Block Grant and HOME fund resources combined with the Section 8 program provide the large majority of annual federal funds available to address Consolidated Plan projects and activities.  Compared with 2003 [$1,740,304 and $904,616], this year�s Block Grant and HOME funds are lower by $70,471 and $6,123, respectively.  Block Grant resources and fund use by category are as follows:

Fiscal Year 2004 Community Development Block Grant Resources

Fiscal Year 2004 Community Development Block Grant Funds by Category

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

A Proposed Statement of Community Development Objectives and Projected Use of Funds for 2004 (Attachment 2) reflects how Block Grant funds are recommended for use by program, project and activity.  The Burbank City Council will consider these recommendations and approve projects and activities to be submitted as the Final Statement of Community Development Objectives and Projected Use of Funds.

Fiscal year 2004 HOME funds ($808,644) will be used by the Burbank Housing Corporation (a Community Housing Development Organization) for housing acquisition and rehabilitation activities, with HOME program administration funded at $89,849 (Total: $898,493).  Specific HOME projects will be approved by the City Council at a later date once projects are identified.

For Block Grant capital projects, a Notice of Fund Availability and a Request for Proposals was published October 4 and 8, 2003.  Proposals were accepted until November 7, 2003.  A total of 13 projects for $2.1 million were received.

Capital projects as recommended by the Community Development Goals Committee and the City�s Executive Staff were considered and approved by the City Council on January 20, 2004 (Exhibit A).  The approval was based on an estimated 2004 capital fund total of $1,104,242.  After receiving formal notification from the U.S. Department of Housing & Urban Development, actual capital project funds available are $1,085,392, or a shortage of $18,850.  Both the Goals Committee and the Executive Staff have revised their original recommendation based on the City Council�s approval of January 20, 2004 as follows (Exhibit B):

Fiscal 2004 CDBG Capital Projects

* All Projects Included

Consistent with its original recommendation of not funding the Code Enforcement program, the Goals Committee opted to reduce City Council�s (1/20/04) $130,284[1] Code Enforcement approval by the amount of the shortage ($18,850) to $111,434, while the Executive Staff recommends decreasing the amount approved for Public Works Department projects to $255,108.

For Block Grant public services, a Notice of Fund Availability and a Request for Proposals was published December 24 and 31, 2003.  Proposals were accepted until February 4, 2004.  A total of 19 proposals were received equaling over $538,000.  The recommendations of both committees are as follows (Exhibit C):

Fiscal 2004 CDBG Public Services

*All Projects Included;   **Fund with Program Administration ($18,000)

This year�s Goals Committee recommendation is predicated on funding agencies with limited other resources, encouraging new programs that supplement existing City community services, and balancing the proportion of available funding between general and youth services with those supporting the homeless/needy, the disabled, senior citizens, and other very-low income residents.  Therefore, the Goals Committee�s recommendation is to fully fund the Schutrum-Piteo/Burbank Adult Day Services program ($30,000), increase the funding for Build Rehabilitation compared with last year ($15,000), and partially fund the new program offered by the Armenian Relief Society ($10,000).

For the Schutrum-Piteo Foundation, the Goals Committee recommendation provides the opportunity for the organization to become fully operational and increase its clientele, complete the process of licensing its operating organization and secure Senior Care Action Network funds, and permit better fund raising capabilities to offset current negative operation costs.  The Goals Committee feels the consequence of not fully funding the organization may cause the program to be abandoned.

To fund their recommendation, the Goals Committee reduced last year�s City Council approvals for the Salvation Army ($9,000), Burbank Temporary Aid Center ($10,000), Burbank School District ($23,395), Burbank Family YMCA ($2,800), and Burbank Center for the Retarded ($400).

The Executive Staff, while supporting the notion of accommodating unique community services and adding new ones, felt significantly increasing funding for newer or new activities in a year where public service funding decreased over $10,500 was not an optimum use of funds.  Therefore, they recommend that the Schutrum-Piteo Foundation be funded at the same level as last year ($10,000), with the Armenian Relief Society recommended at $5,300 as a first year recipient.  To compensate for the $10,570 decrease in 2004 funds while funding the Armenian Relief Society, the Executive Staff cut the Burbank Schools Summer Youth Employment program by $10,000 compared with last year and opted not to fund the Library Literacy program.  Other minor fund adjustments are reflected for Family Service Agency, Build Rehabilitation, and the YMCA.

Both committees recommend the federal requirement for fair housing services as proposed by the Fair Housing Council of the San Fernando Valley be funded ($18,000) with Block Grant program administration funds.  Administration funds are recommended at the 20 percent statutory maximum or $333,966.

In compliance with federal requirements, the Community Development Goals Committee held a meeting March 4, 2004 to obtain public comment regarding the use of federal funds.  The Goals Committee met on three other occasions from November 2003 through March 2004 to review proposals and make recommendations, while the City's Executive Staff met twice during that time to review proposals and make recommendations.

City Council approval and filing of the fiscal year 2004-05 Annual Plan includes the authorization to file applications for Block Grant and HOME funds (Attachments 3 and 4), submit a Final Statement of Community Development Objectives/ Projected Use of Funds and program certifications, and authorizes the City Manager to execute Community Development Block Grant and HOME Agreements between the City of Burbank and the U.S. Department of Housing & Urban Development, and to execute Block Grant and HOME Agreements with various organizations and subrecipients, as applicable.

FISCAL IMPACT

For 2004, Block Grant funds ($1,669,833) have decreased $70,471, while HOME funds ($898,493) are down $6,123 compared to last year.

RECOMMENDATION

STAFF RECOMMENDS THAT THE CITY COUNCIL ADOPT THE PROPOSED RESOLUTION.

Enclosures:

Exhibit A: 2004-05 CDBG Capital Projects (Approved 1/20/04)

Exhibit B: 2004-05 CDBG Capital Projects (Revised Recommendations)

Exhibit C: 2004-05 CDBG Public Service Project(s) Recommendations

Attachment 1:   2004-05 Annual Plan

Attachment 2:   2004-05 Proposed Statement of Community Development Objectives and Projected Use of Funds

Attachment 3:   Community Development Block Grant Application for Federal Assistance

Attachment 4:   HOME Application for Federal Assistance

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