HomeMy WebLinkAboutItem No. 11 - Authorization to Apply for Additional Unclaimed Funds Under the Community Develo11)Authorization to Apply for Additional Unclaimed Funds Under the Community
Development Block Grant (CDBG) Set Aside Funds for Project Homekey Projects
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING AN AMENDMENT TO THE STANDARD AGREEMENT
ISSUED UNDER THE 2020 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
CORONAVIRUS RESPONSE (CDBG-CV).
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REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Jason Simpson, City Manager
Date:January 9, 2024
Subject:Authorization to Apply for Additional Unclaimed Funds Under the
Community Development Block Grant (CDBG) Set Aside Funds for Project
Homekey Projects
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING AN AMENDMENT TO THE STANDARD AGREEMENT ISSUED
UNDER THE 2020 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
CORONAVIRUS RESPONSE (CDBG-CV).
Background
Addressing one of California's most urgent and substantial challenges, the City of Lake Elsinore
has actively tackled homelessness through a proactive strategy. The establishment of the City's
Homeless Task Force in 2017 marked the initiation of efforts to house our most vulnerable
residents and explore practical approaches to reduce the homeless population, with the ultimate
goal of achieving functional zero for chronic homelessness.
In 2017, the City of Lake Elsinore partnered with the Social Work Action Group (SWAG) for street
outreach, housing, and case management services.
In June 2020, the City Council voted to purchase the property at 215 W. Graham Ave. for
$2,250,000 for Crisis Stabilization Housing to continue our proactive approach. The property, now
known as The Anchor, was purchased and renovated using a $3.1 million Project Homekey grant
awarded from the State of California in September 2020. The facility officially opened on
December 30, 2020. Today, the City and SWAG can house up to 20 homeless individuals at any
given time for up to 90 days.
On December 2, 2020, the City of Lake Elsinore was awarded $256,680 from the Homeless
Housing Assistance and Prevention Program (HHAP) by the County of Riverside Continuum of
Care for operating subsidy funding from July 1, 2022, through December 31, 2024.
CDBG Unclaimed Funds
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Most recently, on October 28, 2021, the City of Lake Elsinore was awarded $700,000 from the
California Department of Housing and Community Development under the Community
Development Block Grant – Coronavirus Response. Using these grant funds, the City of Lake
Elsinore started rehabilitating the Anchor, the City's homeless Crisis Stabilization Center. Repairs
at Anchor have constituted improvements to the units' kitchens, bathrooms, electrical, facility
laundry rooms, flooring, and air conditioning to ensure proper maintenance is done to the building
for long-term sustainability.
Discussion
On November 15, 2023, the California Department of Housing and Community Development
announced the availability of additional Community Development Block Grant – Coronavirus
Response funding (CDBG-CV). This funding has been made available to previous CDBG-CV
grantees who have existing construction projects that have experienced unanticipated cost
increases. Grantees with qualifying CDBG-CV construction projects may request an additional 25
percent of their original application. As a previous applicant and awardee of CDBG-CV, the City
is eligible to apply for up to $175,000.
While the City has completed significant infrastructure, interior, and exterior improvements to The
Anchor as part of the previous CDBG-CV funding, replacing the sewer system is needed to ensure
long-term sustainability and maintenance.
City staff recommends the adoption of the proposed resolution, approving staff to proceed with
an application for $175,000. With this approval, staff will apply by January 15, 2024. If awarded,
funds will be allocated in 2024, and staff will begin to complete the proposed improvements
immediately.
Fiscal Impact
There is no fiscal impact on the 2023-2024 General Fund. Projects are paid through the State
Home Key Grant Funding reimbursement process.
Attachments
Attachment 1- Resolution
Attachment 2- CDBG-CV Allocation of Remaining Funding Memo
RESOLUTION NO. 2024-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING AN AMENDMENT TO THE STANDARD
AGREEMENT ISSUED UNDER THE 2020 COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM CORONAVIRUS RESPONSE (CDBG-CV)
Whereas, the California Department of Housing and Community Development (HCD) has
announced the availability of unclaimed Community Development Block Grants – Coronavirus
Response (CDBG-CV) funds; and,
Whereas, pursuant to the State’s FY 2019-2020 August 2020 Second Substantial
Amendment and the CDBG-CV Method of Distribution as described in the State of California
2019-2020 Annual Action Plan Fifth Substantial Amendment, HCD has set aside unclaimed funds
to support Homekey projects, located in non-entitlement or entitlement jurisdictions; and
Whereas, eligible uses of these funds include construction projects that have experienced
unanticipated cost increases and applications must be submitted by January 15, 2023; and,
Whereas, the City of Lake Elsinore, an entitlement City, applied for and was awarded
funding under the Homekey Round 2 Notice of Funding Availability issued on October 28, 2021,
and is, therefore eligible to apply for $175,000 under the Homekey Program.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The City of Lake Elsinore has reviewed and hereby approves the submission
to the State of California of one or more application(s) in the aggregate amount of, not to exceed,
$175,000 that would be added to its existing CDBG-CV Standard Agreement with the State
numbered 21-CDBG-HK—00018 pursuant to the State’s June 2020 CDBG-CV1 Notice of
Funding Availability for the following CDBG-CV activities, pursuant to the CDBG Method of
Distribution as described in the State of California 2019-2020 Second Substantial Amendment
and the CDBG-CV Method of Distribution as described in the State of California 2019-2020
Annual Action Plan August 2020 Fifth Substantial Amendment:
List of activities and amounts:
Sewer Line Replacement: $175,000
Section 2. The City hereby approves the use of Program Income in an amount not to
exceed $175,000 for the CDBG-CV activities and/or CDBG activities described in Section 1.
Section 3. The City acknowledges compliance with all state and federal public
participation requirements in the development of its application(s).
Section 4. The City hereby authorizes and directs the City Manager, or his or her
designee, to execute and deliver all applications and act on the City’s behalf in all matters
pertaining to all such applications
Section 5. If an application is approved, the City Manager, or his or her designee, is
authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement) and
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CC Reso No. 2024-___
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any and all subsequent amendments thereto with the State of California for the purposes of the
grant.
Section 6. If an application is approved, the City Manager, or his or her designee, is
authorized to sign and submit Funds Requests and all required reporting forms and other
documentation, without limitation, including any covenant or regulatory agreement as may be
required by the State of California from time to time in connection with the grant.
Section 7. This Resolution shall take effect from and after the date of its passage and
adoption.
Section 8. That the City Clerk shall certify to the passage and adoption of this Resolution
and enter it into the book of original Resolutions.
Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore,
California, this 9th day of January 2024.
Steve Manos
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2024-____ was adopted by the City Council of the City of Lake Elsinore, California,
at the Regular meeting of January 9, 2024 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, MMC
City Clerk