PURPOSE:

This resolution requests 1) the City Council to approve/file the FY 2007-08 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 (CDBG) and Home Investment Partnerships (HOME) Programs; 3) File the 2007 Final Statement of Community Development Objectives and Projected Use of Funds; 4) Authorize the City Manager to execute U.S. Department of Housing and Urban Development (HUD) funding agreements for CDBG and HOME Programs, 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; and 5) Permit the extension of specific CDBG Reimbursable Contracts for capital projects.

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 Panning and Development Programs. The Consolidated Plan is required every five years and was last submitted for the period 2003-08. It includes a needs assessment for housing and 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�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. It 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 also entails applications for four federal formula grants 1) CDBG; 2) HOME; 3) Emergency Shelter Grant; and 4) Housing Opportunities for Persons with AIDS. Of these entitlement programs, Burbank is a recipient of and applies for CDBG and HOME funds on an annual basis. Activities eligible under the CDBG 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.

On a yearly basis to update the Consolidated Plan�s progress, Burbank submits an Annual Plan (Binder 1) detailing the funding and resources available to address strategy goals. Programs and activities, which meet Plan goals are described, and unit objectives by fund resource and dollars to be allocated and expended are quantified. The Annual Plan must be submitted to HUD no later than 45 days prior to the start of the fiscal year, or on or about May 15, 2007 this year.

The 2007 Annual Plan details federal, state, and local fund resources totaling over $16.2 million, including $1.35 million in federal CDBG entitlement, reallocated funds, and program income, and $809,339 in HOME funds. CDBG and HOME resources combined with the Section 8 program provide the large majority of federal funds available to address Consolidated Plan projects and activities.

ANALYSIS:

CDBG Nationally

According to House Financial Services Chairman, Representative Barney Frank, congressional efforts will be made to gain a 5% increase over FY 2007 funding levels when House appropriators deal with the FY 2008 CDBG program. President Bush�s FY 2008 budget request shows CDBG at $3.03 billion overall, with $2.96 million for formula grants that fund states and entitlement communities. The National League of Cities (NLC), the Conference of Mayors and the National Association of Counties likely will be among the groups pressing for an extra $1 billion in CDBG funding. The NLC would like to see an overall CDBG budget of $4.1 billion[1].

CDBG-Burbank (FY 2007)

Compared with 2006 [$1,348,903 and $813,379], this year�s CDBG funding is only minimally higher ($1,800) at $1,350,705, while HOME is slightly lower ($4,000) at $809,339.

FY 2007 CDBG FUND RESOURCES

FY 2007 CDBG FUNDS By CATEGORY

A 2007 Proposed Statement of Community Development Objectives and Projected Use of Funds reflect how CDBG funds are recommended for use by program, project and activity. The Burbank City Council will consider the recommendations of the Community Development Goals Committee (Goals Committee) and the City�s Executive Staff, and approve projects and activities to be submitted as the Final Statement of Community Development Objectives and Projected Use of Funds.

Of the FY 2007 HOME funds available ($809,339), $728,405 will be used by the Burbank Housing Corporation [a Community Housing Development Organization (CHDO)] for housing acquisition and rehabilitation activities, with HOME program administration funded at $80,934. Specific HOME projects will be approved by the City Council at a later date once projects are identified.

For CDBG capital projects, a Notice of Fund Availability and a Request for Proposals was published October 4 and 7, 2006. Proposals were accepted until October 27, 2006. A total of five projects for $1.46 million were received.

Capital projects (Table 1) as recommended by the Goals Committee and the Executive Staff were considered and approved by City Council Resolution 27,422 on February 13, 2007. The approval was based on an estimated 2007 capital fund total of $881,875.

When CDBG entitlement notices were released by HUD actual capital funds available were reduced to $877,958 or a difference of $3,917. Both the Goals Committee and the Executive Staff recommend reducing Public Works Department programs by this amount making the revised total $344,958 (Exhibit A).

For CDBG public services, a Notice of Fund Availability and a Request for Proposals was published December 9 and 13, 2006, with proposal accepted until February 2, 2007. A total of 22 proposals equaling $540,459 were received against available funds of $202,606 (Binder 2). The recommendations of both committees are reflected in Exhibit B, and also below.

The Goals Committee met on five occasions from November 16, 2006, to April 4, 2007, to review proposals, take public comment, and make recommendations. The Executive Staff met on March 14, 2007 to finalize their public service recommendations (Table 2).

** Fund with CDBG Administration

The Goals Committee and the Executive Staff public service recommendations differ for six organizations as reflected below in Table 3.

Compared with 2006, the Goals Committee recommends increases for the Salvation Army, Family Service Agency, Kids Community Dental Clinic, and Build Rehabilitation, while recommending decreases for the Burbank School District, Boys & Girls Club, Heritage Clinic-CAPS Burbank, Armenian Relief Society, and We Care for Youth. The significant increase for Build Rehabilitation, [full funding ($18,175)] is to permit Build to purchase the equipment which has been requested for several years. The zero funding recommendation for We Care for Youth is based on the business being a for-profit entity which the Committee feels should be self-sustaining, while the zero recommendation for Heritage Clinic is based on several factors as detailed in the Committee minutes for March 7, 2007 (Attached). For the remaining departments and organizations, the Goals Committee recommends the same level of funding as in 2006, and recommends zero funding for the new request by Everybody Wins Los Angeles.

The Executive Staff recommended increases for Build Rehabilitation, Burbank Temporary Aid Center, and Kids Community Dental Clinic, while recommending decreases for the Burbank School District, Boys & Girls Club, and the Heritage Clinic. Like the Goals Committee, the Executive Staff recommends a significant increase for Build Rehabilitation to purchase the equipment requested, but would like the organization to fund part of its cost. Executive Staff agrees with the Goals Committee concerning its rationale for the Heritage Clinic and agrees on zero funding for Everybody Wins Los Angeles, but recommends that all other departments and organizations be funded at last year�s levels.

Both Committees recommend CDBG administration funds at the 20% statutory limit of $270,141, which includes the federal requirement for fair housing services as proposed by the Fair Housing Council � San Fernando Valley ($18,000).

Regarding prior year CDBG capital projects, the Community Development Department anticipates that some contracts will not meet their time of performance dates (June 30, 2007), and require a time of performance extension to June 30, 2008, with relevant amounts carried over, as applicable. With City Council approval these contracts will be extended.

Contracts extended last year for the Burbank Unified School District [FY 2002 � Washington Elementary School Window Installation Project ($254,922)] and the Boys & Girls Club [FY 2002 Facility Improvements Project ($69,470)] are currently pending contract award, but may not be completed in time to meet the June 30, 2007 fiscal year end. Administrative adjustments to extend existing purchase orders will be negotiated with the Financial Services Department.

Citizen Participation

Burbank encourages any citizen and/or group comment on the Annual Plan through a combination of public notices, postings, mailings and meetings. Public comment is requested on community needs, strategies, programs, projects, and activities. The Burbank City Council and the Community Development Goals Committee hold public meetings annually. The City further advertises Notices of Fund Availability and request for proposals and solicits public review and comment on Annual Performance Reports pertaining to the use of federal funds. The Department received no written comments concerning the FY 2007-08 Annual Plan.

However, during oral communications at the City Council meeting held April 3, 2007, advocates and supporters of the Armenian Relief Society (ARS) commented on disparaging remarks allegedly attributed to certain members of the City�s Community Development Goals Committee during the proposal review and recommendation process for FY 2007-08 CDBG public service funds. The specific allegations included remarks of racial bias, discrimination, and prerequisite conditions for funding recommendations.

These public comments were made based on information that was either misinterpreted or judged in a way other than what was intended. The Committee makes difficult funding recommendations with limited resources. To accomplish this task and somehow balance the needs of individual organizations while serving the majority of Burbank residents, the Committee asks hard and sometimes sensitive questions not to be critical or enforce changes, but to better educate themselves and form a basis for the recommendations it makes.

It is in this general context that questions and comments relative to the ARS name were mentioned. Questions and comments were made in reference to the connotation of the ARS name, but only in the context of the universality of services and whether or not the name alone would tend to limit its clientele and attract only given segments of the community. No condition or other funding prerequisite was intended or meant by any question or comment. The Committee meant no intentional harm or offense by any statement.

FISCAL IMPACT

Compared with 2006, this year�s CDBG Entitlement ($1,208,364) is lower than last year�s ($1,214,390), but overall total CDBG fund availability is slightly higher ($1,350,705) compared with 2006 ($1,348,903) due to an increase in program income of $7,800.

RECOMMENDATION

Staff recommends that the City Council adopt the proposed resolution.

Attachments:

Binder 1: 2007-08 Annual Plan Update (Consolidated Plan 2003-08)

Binder 2: 2007-08 CDBG Public Service Proposals

Exhibit A: 2007-08 CDBG Capital Projects (Approved February 13, 2007)

Exhibit B: 2007-08 CDBG Public Service Project(s) Recommendations

Attachment 1: Community Development Goals Committee Minutes (March 7, 2007)

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