HomeMy WebLinkAboutCommunity Development Block Grant - Budget Appropriation ofDept. ID ED 14-09 Page 1 of 2
Meeting Date: 4/21 /2014
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CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 4/21/2014
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Kellee Fritzal, Deputy Director Business Development
SUBJECT: Request Budget Appropriation of $250,000 from Community Development Block
Grant (CDBG) Rehabilitation Revolving Load Fund (Fund 215) to allow
continuance of the CDBG Rehabilitation Loan Program for very -low and low
income residents
Statement of Issue:
The City Council is requested to approve the appropriation of $250,000 from the existing
Community Development Block Grant (CDBG) Rehabilitation Revolving Loan Fund (Fund 215) in
the Fiscal Year 2013/14 Adopted Budget. The appropriation will allow the continuance of the
CDBG Rehabilitation Loan Program for very -low and low income residents.
Financial Impact:
The Rehabilitation Loan Fund Balance is currently $1.4 million and is sufficient to cover the
additional budget appropriation request of $250,000 account 21580301.89250 for the current fiscal
year.
Recommended Action:
Approve additional budget appropriation of $250,000, for a total budget amount of $300,000, to the
Rehabilitation Loan Program (Fund 215) in account 21580301.89250 for FY 2013/14.
Alternative Action(s):
Do not approve the allocation and direct staff accordingly.
Analysis:
For Fiscal Years 2009/10 to 20011/12, the average actual expenditure for the Rehabilitation Loan
Program was $207,000. For Fiscal Year 2012/13 the adopted budget was $500,000 due to
demand for the program and known applications on file. For Fiscal Year 2013/14 the adopted
budget was proposed to be $500,000, however, due to an error, the Adopted Budget for the
Rehabilitation Loan Program (Fund 215) was approved at $50,000. Based on the actual demand
for the program and estimated rehabilitation work in the pipeline, staff is now requesting additional
budget appropriation of $250,000 in account 21580301.89250, for a total of $300,000 for FY
2013/14. The current Fund Balance for Fund 215 is $1.4 million. This Fund Balance is sufficient
for this additional budget appropriation.
The City funds both CDBG grants and loans to very -low and low income residents to ensure that
residents live in a safe environment that complies with building codes and that homes do not fall
into disrepair, thus affecting the entire neighborhood. Referrals to the program are generated
through code Enforcement and the Senior Center, as well as articles in the Sands and on the web
Item 2. - 1 xB -22-
Dept. ID ED 14-09 Page 2 of 2
Meeting Date: 4/21/2014
page. The City will lend up to $75,000 to pay for rehabilitation costs for a single-family home,
townhouse, or condominium. Grants of up to $10,000 are also available to very -low income
households for emergency repairs relating to health and safety codes. Grants and loans cannot be
combined.
Annually, the City receives repayment of loans from the existing loan portfolio. The current
revolving loan fund balance is $1.4 million.
Environmental Status:
Not Applicable
Strategic Plan Goal:
Enhance Economic Development
Attachment(s):
None
FIB -23- Item 2. - 2