2011051604 - Housing and Community Development Act - CDBG - JPA Santa Clara Countyeos• A o s COUNCIL AGENDA REPORT
MEETING DATE: 5/16/11
ITEM NO: 1-1
DATE: May 5, 2011
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT
WITH THE COUNTY OF SANTA CLARA, "JOINT EXERCISE OF POWERS
AGREEMENT AND COOPERATION AGREEMENT TO UNDERTAKE OR
TO ASSIST IN THE UNDERTAKING OF ESSENTIAL ACTIVITIES
PURSUANT TO TITLE I OF THE HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1974, AS AMENDED, FOR THE PERIOD OF
OCTOBER 1, 2011 TO SEPTEMBER 30,2014" FOR ADMNNSTRATION
OF THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM.
RECOMMENDATION
Authorize the Town Manager to execute an agreement with the County of Santa Clara, "Joint
Exercise of Powers Agreement and Cooperation Agreement to Undertake or to Assist in the
Undertaking of Essential Activities Pursuant to Title I of the Housing and Community
Development Act of 1974, as Amended, for the Period of October 1, 2011 to September 30,
2014" for administration of the Community Development Block Grant (CDBG) program.
BACKGROUND
The Town has participated in the Community Development Block Grant (CDBG) program since
1975, as a part of the "Urban County" group administered by the County of Santa Clara. The
CDBG program provides federal funding, from the U.S. Department of Housing and Urban
Development (HUD), for activities which benefit primarily low - income households. Projects
funded by these grant monies include affordable housing developments, the Housing
Conservation program, Americans with Disabilities Act (ADA) accessibility improvements, and
human service programs through local nonprofit agencies.
A municipality must have a'population of at least 50,000 to participate in the CDBG program;
through the Urban County process the Town joins with other smaller Santa Clara County
municipalities, and the unincorporated areas of the county, to reach the population threshold.
The Urban County relationshi4ised through a 3 -year Joint Powers Agreement (JPA)
PREPARED BY Regina
Comm s Director
Reviewed by: )_Assistant Town Manager Town Attorney
Clerk Administrator , Finance Community Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADMININSTRATION OF THE COMMUNITY DEVELOPMENT BLOCK
GRANT(CDBG)PROGRAM
May 5, 2011
between the Town, the other participating municipalities, and Santa Clara County, The County
is the official grantee of CDBG funds from the federal government, and the Town and other
participating municipalities are sub - grantees. Most recently, this relationship has consisted of
the Town allocating its CDBG funds and administering its own grant contracts. The County
does the same for its funds.
The JPA does not specify armual funding amounts; this is addressed in an annual "Community
Development Block Grant City /County Contract."
DISCUSSION
In order for the Town to continue to participate in the CDBG program for the next 3 -year cycle,
it must enter into a new JPA. The current JPA expires on September 30, 2011.
As a result of budget shortfalls at the County, the Office of Affordable Housing, which
administers the CDBG program, will be effectively disbanded. The County states that it has
been heavily subsidizing the costs of administering the CDBG program with General Fund
monies, and it is not willing or able to continue this subsidy. To this end, County, Town, and
other Urban County staff have worked together to develop a proposal for restructuring the
program under the next JPA (2011- 2014).
In short, under the proposal the County would assume all administration of the CDBG program,
including allocation of funds and administration of contracts. Instead of applying to Los Gatos
and the other Urban County municipalities for funding, nonprofits would submit one online
application, to the County. Los Gatos and the other municipalities would also have to apply to
the County for CDBG funds for eligible infrastructure projects, such as ADA compliance
projects. Finally, the County would also assume the responsibility for the Housing
Rehabilitation/Conservation Program for all Urban County municipalities. A more detailed
discussion of the proposed changes follows:
Funding Process for Nonprofits. Nonprofit agencies will apply annually, online, to the County
for funding. A staff -level Technical Advisory Committee (TAC) comprised of staff members
from all Urban County jurisdictions, including the Town, will evaluate the applications and
develop funding recommendations. These recommendations will be based on eligibility for the
program, and on a Local Priorities Plan. The Local Priorities Plan will contain criteria to be
used in the evaluation of project proposals to prioritize proposals that meet local and regional
needs and /or achieve geographical balance in projects funded throughout the Urban County
area. The funding recommendations will then be reviewed by the HCD Advisory Committee, a
20- member body established by the County Board of Supervisors, which includes one Council
Member and one public member from each Urban County municipality. The HCD Advisory
Committee will make a funding recommendation to the Board of Supervisors, which makes the
final funding decision. All nonprofit grant contracts will have a minimum grant arnount of
$10,000.
It is not guaranteed that nonprofits that receive CDBG funding in FY 2011/12 under the Town -
administered funding process will be funded in FY 2012/13 under the new process. However,
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ADMININSTRATION OF THE COMMUNITY DEVELOPMENT BLOCK
GRANT(CDBG)PROGRAM
May 5, 2011
the 2 agencies that will receive Tovn CDBG funding in FY 2011/12, Catholic Charities and
Live Oak Adult Day Services, are large agencies that serve jurisdictions throughout the county,
and staff is confident that they will likely be successful in competing for FY 2012 /13 funding.
Furling Process for Municipalities. Urban County municipalities, including Los Gatos, will
also apply annually to the County for funding for eligible infrastructure projects. However,
though they must apply, they will not be competing for Rinds. Each municipality will be
reserved an estimated $100,000 in funding each year to use for public benefit capital activities,
such as infrastructure and neighborhood facilities in low- income census tracts, ADA
improvements, housing rehabilitation, targeted code enforcement, and eligible project support.
There is a limit of 2 projects per jurisdiction per year, and the funds must be spent within 2
years.
Transition Process. The next 3 years will be a transition period in which to implement the new
program, and identify issues to be addressed in the following JPA. The County has shown
willingness to work with the other Urban County jurisdictions to develop a new Urban County
relationship that is more efficient and cost - effective than previously.
CONCLUSION
Staff supports the proposed JPA for 2011 -2014. It is clear that the current economic realities
dictate a hard look at the way all municipal programs are administered. The proposed new
Urban County relationship will further reduce the County's General Fund subsidy of its CDBG
program, and it will also save Town staff time currently spent in the annual funding process and
contract administration. As noted above, the next 3 years will be a time for the Town and the
other Urban County municipalities to work through the new process and identify ways to
continue to improve it under the following JPA period.
ENVIRONMENTAL ASSESSMENT
The recommended action is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT
All of the CDBG funds the Town currently receives are pass - through to nonprofit grants, or
allocated to capital projects. Under the proposed JPA, the Town would no longer pass through
the nonprofit grants. An estimated $100,000 would be reserved for the Town annually to use for
public benefit capital projects, an amount roughly equivalent to the funding it receives currently.
Attachments:
1. Draft Resolution of the Town Council of the Town of Los Gatos Authorizing the Town
Manager to Execute an Agreement with the County of Santa Clara, "Joint Exercise of
Powers Agreement and Cooperation Agreement to Undertake or to Assist in the Undertaking
of Essential Activities Pursuant to Title I of the Housing and Community Development Act
of 1974, as Amended, for the Period of October 1, 2011 to September 3 0, 2014"
PAGE
MAYOR AND TOWS' COUNCIL
SUBJECT: ADMNINSTRATION OF THE COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) PROGRAM
May 5, 2011
Distribution:
iV4atjorie Matthews Santa Clara County Office of Affordable Housing
Community Services Commission
RESOLUTION NO. 2011-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE AN AGREEMENT
WITH THE COUNTY OF SANTA CLARA, "JOINT EXERCISE OF POWERS
AGREEMENT AND COOPERATION AGREEMENT TO UNDERTAKE OR TO .
ASSIST IN THE UNDERTAKING OF ESSENTIAL ACTIVITIES PURSUANT TO
TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS
AMENDED, FOR THE PERIOD OF OCTOBER 1, 2011 TO SEPTEMBER 30,2014"
WHEREAS, Congress has enacted the Housing and Community Development Act
of 1974, as amended; and
WHEREAS, Title I of the Act provides for a program of Community Development
Block Grants; and
WHEREAS, Title I of the Act makes entitlement grants available to cities with a
population of 50,000 or more persons and to counties that qualify as an urban county; and
WHEREAS, the Town of Los Gatos is not eligible to apply directly for entitlement
funds under the Act buy may, be entering into a cooperation agreement with Santa Clara County,
qualify Santa Clara County as an urban county applicant and may thereby receive such funds;
and
WHEREAS, the parties hereto wish to enter into an agreement to enable the County
of Santa Clara to apply for and receive entitlement funds as an urban county and to establish the
respective rights and obligations of the contracting parties to such funds.
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of
Los Gatos, County of Santa Clara, State of California, that the Town Council does hereby
authorize the Town Manager to execute an agreement with the County of Santa Clara, "Joint
Exercise of Powers Agreement and Cooperation Agreement to Undertake or to Assist in the
Undertaking of Essential Activities Pursuant to Title I of the Housing and Community
Development Act of 1974, as Amended, for the Period of October 1, 2011 to September 30,
2014," and future amendments to this agreement as long as they conform to the adopted Town
budget.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 16th day of May, 2011 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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