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Home My WebLink AboutItem No. 12 - Authorization to Apply for Additional Unclaimed Funds Under the CDBG Project Homekey Projects12)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). Page 1 of 2 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Jason Simpson, City Manager Prepared by:Adam Gufarotti, Community Support Manager Date:November 12, 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 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. CDBG Unclaimed Funds Page 2 of 2 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. 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 included 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. 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 2024-2025 General Fund. Projects are paid through the State Home Key Grant Funding reimbursement process. Attachments Attachment 1 - Resolution City Manager's Office 3 8 1 4 8 RESOLUTION NO. 2024- A RESOLUTION APPROVING AN AMENDMENT TO THE STANDARD AGREEMENT ISSUED UNDER THE 2020 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM CORONAVIRUS RESPONSE (CDBG-CV) BE IT RESOLVED by the City Council of the City of Lake Elsinore as follows: SECTION 1: The City Council has reviewed and hereby approves the submission to the State of California (“State”) of a Request for Additional Funds to fill gaps created by documented unanticipated cost increases. The funds would be added to its existing CDBG-CV Standard Agreement(s) with the State numbered 21-CDBG-HK-00018 (the “Standard Agreement(s)”) pursuant to the State’s June 2020 CDBG-CV1 Notice of Funding Availability; December 2020 CDBG-CV2 and CV3 Notice of Funding Availability (NOFA); and/or the CDBG Method of Distribution as described in the State of California 2019-2020 Annual Action Plan August 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. City previously approved the use of $700,000 of Program Income for this CDBG-CV activity which was included in the 21-CDBG-HK-00018 and by this resolution will use an additional amount not-to-exceed $175,000 for a total commitment of $875,000 of Program Income. List of Activity Funding: Current Authorized amount(s) under Standard Agreement #21-CDBG-HK-00018 CDBG-CV: $700,000 Program Income: $0 Total: $700,000 Amount of new CDBG-CV funds to be added to Standard Agreement #21-CDBG-HK- 00018 CDBG Not to exceed $175,000 Program Income: $0 Total: $175,000 3 8 1 4 8 Total amount of amended Standard Agreement #21-CDBG-HK-00018 CDBG Grant Not to exceed $875,000 Program Income: $0 Total: $875,000 SECTION 2: The City acknowledges compliance with all state and federal public participation requirements with respect to the proposed amendments to the Standard Agreement described in Sections 1 above. SECTION 3: The City hereby authorizes and directs the City Manager, or in his absence the Assistant City Manager, to execute and deliver all application(s), “Request(s) for Additional Funds,” and/or amendments to the Standard Agreement and act on the City’s behalf in all matters pertaining to all such application(s), “Request(s) for Additional Funds,” and/or amendments. SECTION 4: If an amendment to the Standard Agreement is approved as contemplated above, the City Manager, or in his absence the Assistant City Manager, is authorized to enter into, execute, and deliver an amendment to the Standard Agreement and any and all other documentation which may be required by the State from time to time for the purposes of this grant. SECTION 5: If an amendment to the Standard Agreement is approved, the City Manager, or in his absence the Assistant City Manager, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with this grant. 3 8 1 4 8 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore held on November 12, 2024, by the following vote: AYES: _______ NOES: _______ ABSENT: _______ ABSTAIN: _______ ____________________________________ Name and Title Steve Manos, Mayor STATE OF CALIFORNIA City of Lake Elsinore “I, ___________, City Clerk of the City of Lake Elsinore, State of California, hereby certify that (i) the above and foregoing is a full, true, and correct copy of a resolution duly adopted by said City Council on this 12th day of November, 2024; (ii) such resolution has not been amended, modified, repealed or rescinded since the date of its adoption; and (iii) such resolution remains in full force and effect.” ___________________________________________ Candice Alverez, City Clerk of the City of Lake Elsinore, State of California By: _____________________________ Name and Title