MEETING DATE:
AUGUST 11, 2015
SUBJECT:
Title
RESOLUTION NO. 2015-8111 - PROPOSED SUBSTANTIAL AMENDMENT TO THE COMMUNITY DEVELOPMENT BLOCK GRANT 2014-2018 CONSOLIDATED PLAN AND DRAFT 2015-2019 CONSOLIDATED PLAN APPROVAL
Body
Recommendation
Recommendation
ADOPT a resolution approving the proposed Substantial Amendment to the City’s Community Development Block Grant (CDBG) 2014-2018 Consolidated Plan and the Draft 2015-2019 Consolidated Plan and authorize submission of the Draft 2015-2019 plan to the U.S. Department of Housing and Urban Development (HUD).
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Quality of Life
Relevant Department Goal
Not Applicable
Introduction
The City of San Marcos receives an annual allocation of CDBG and HOME funds as an entitlement community from the U.S. Department of Housing and Urban Development (HUD). CDBG and HOME funds are provided by the federal government to develop viable urban communities by providing decent housing, economic opportunities and a suitable living environment for the City’s low - and moderate-income residents. In order to receive the grant funding, the City is required to develop a three-to five-year Con Plan in addition to several other administrative requirements. In order to receive HOME Investment Partnerships funds, the City of San Marcos is a member of the San Diego County HOME Investment Partnerships (HOME) Consortium. The Consortium is comprised of the County of San Diego and the cities of Carlsbad, Encinitas, La Mesa, San Marcos, Santee, and Vista. HOME funds are provided by the federal government and may be used to provide first-time homebuyer loans, homeowner rehabilitation loans, rental unit development and tenant-based rental assistance for persons who earn at or below 80% of the San Diego County Area Median Income (AMI). Due to new HOME fund regulations promulgated by HUD, the County of San Diego stopped disbursing HOME funds to the member agencies of the HOME Consortium starting Fiscal Year 2014-2015. The City is still a member of the HOME Consortium for the purpose of participating in regional HOME fund programs administered by the County of San Diego. The City currently uses its remaining HOME funds and any HOME Fund program income for homeowner rehabilitation loans. In prior years, the City has used its HOME funds for first-time homebuyer loans.
Discussion
HUD has notified the San Diego HOME Consortium that if all of the consortium cities are not on the same program year for CDBG, HOME, ESG and HOPWA in Fiscal Year 2015-2016, as per the CFR, Title 24, Subtitle A, Part 91, Subpart E, Section 91.402 regulation, they will withhold Fiscal Year 2015-2016 funds from all consortium members. The City of San Marcos and the City of Vista are not currently on the same program year as the County of San Diego, or the cities of Carlsbad, Encinitas, La Mesa, and Santee. HUD has requested that the cities of San Marcos and Vista amend their existing Con Plans to end in FY 2015 and approve a new five year 2015-2019 Con Plan. Staff is proposing a substantial amendment to the City’s FY 2014-2018 Con Plan to reflect only FY 2014-2015 and requesting approval of changing the 2014-2018 Con Plan to the 2015-2019 Con Plan.
Fiscal Impact
There is no fiscal impact to the General Fund since CDBG funds are received from the federal government; however if the City doesn’t amend the 2014-2018 Con Plan to reflect FY 2014-2015 and approve the Draft 2015-2019 Con Plan it will prevent all of the cities in the SanDiego County HOME Consortium, including San Marcos, from receiving their FY 2015-2016 CDBG allocations from HUD. The City was allocated $586,688 in CDBG funds for FY 2015-2016.
Attachment(s)
Resolution 2015-
Draft 2014/2015 CDBG Consolidated Plan
Draft 2015-2019 CDBG Consolidated Plan
Prepared by: Julie Magee, Community and Economic Development Program Manager
Approved by: Karl Schwarm, Director, Housing and Neighborhood Services
Approved by: Lydia Romero, Deputy City Manager
Approved by: Jack Griffin, City Manager