Title
Staff Report for Resolution Authorizing the City Manager to Submit an Application for State of California Department of Housing and Community Development's Housing-Related Parks Program Grant Funds
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council adopt a resolution to authorize 1) the submittal of a Housing-Related Parks Program grant application for the 2013 Designated Program Year to the State of California Department of Housing and Community Development, and 2) the City Manager, or his designee, to execute all necessary Housing-Related Parks program application and grant documents.
BACKGROUND
On October 2, 2013, the State of California Department of Housing and Community Development (HCD) released the Notice of Funding Availability for the Housing-Related Parks (HRP) Program grant funds. The grant application is due January 22, 2014. The HRP Program is funded through Proposition 1C, the Housing Emergency Shelter Trust Fund Act of 2006. A total of $25 million is available for the 2013 funding round.
The HRP Program is an innovative incentive program designed to reward local governments that approve housing for lower-income households and are in compliance with State housing element law with grant funds to create and/or renovate community parks and recreational facilities. HCD will award HRP Program funds to eligible jurisdictions on a per-bedroom basis for each residential unit affordable to very low- [50% of Area Median Income (AMI)] and low-income (80% AMI) households permitted during the Designated Program Year, which covers January 1, 2010 through June 30, 2013. In addition, units substantially rehabilitated, converted from market rate to affordable, and preserved with certificates of occupancy are also eligible to receive funding.
Analysis
The HRP Program is a non-competitive grant program. All applicants meeting the threshold requirements will be funded. There is no maximum award; however; if the program is oversubscribed, funds will be prorated among eligible applicants. In the event the Program is undersubscribed, any unused funds will roll over to the next program year.
There are four threshold requirements that all applicants must meet to be eligible to participate in the program:
1) Applicant must have a Housing Element in compliance with State housing element pursuant to Government Code Section 65585;
2) Applicant must submit its Annual Progress Reports for all years in which applicant has eligible units;
3) Applicant must submit documentation of eligible units; and
4) Applicant must meet a minimum grant amount of $75,000.
San Leandro meets all the threshold requirements.
Funds will be awarded on a per bedroom basis for each documented eligible unit: $500 per bedroom in affordable to low-income households, and $750 per bedroom in affordable to very low-income households. In addition to the base grant award, substantial bonus funds will be awarded per bedroom as follows:
· $300 for newly constructed housing units;
· $250 for extremely low-income (30% of the Area Median Income) housing units;
· $250 for housing units built in an infill project;
· $500 if park project is located in a Disadvantaged Community;
· $500 if park project is located in a Park-Deficient Community;
· $100 if park project supports an infill development; and/or
· $50-$75 for Regional Housing Needs Allocation progress as determined by HCD.
Based on the eligibility requirements, the grant application will include Estabrook Place Senior Apartments and Lakeside Village Apartments. Estabrook Place has fifty (50) qualifying one-bedroom units for very low-income seniors. The 840-unit Lakeside Village, on the other hand, which is currently in the process of converting from a market rate complex into a 100% affordable housing tax credit property, has 21 very low income and 186 low income studios; 46 very low and 406 low income one-bedrooms; and 17 very low and 154 low income two-bedrooms.
The City has a number of park and recreation facilities with deferred maintenance and capital improvement needs; yet funding for these types of maintenance activities is limited. The HRP Program provides an opportunity to fund and address these needs. In consultation and coordination with the Public Works and Recreation & Human Services departments, City staff proposes to apply HRP grant funds, if awarded, to renovate Siempre Verde Park and Thrasher Park. Improvements at Siempre Verde Park could include replacing the outdated playground equipment to meet safety codes and renovating the group picnic area. The asphalt at Thrasher Skateboard Park could be replaced with a concrete surface to enhance safety, while the outdated playground equipment at Thrasher Park could also be replaced to meet safety codes.
HRP awards will be announced in June 2014 and all awarded funds must be expended by June 30, 2016.
Applicable General Plan Policies
The HRP Program provides an instrumental opportunity for the City to pursue and achieve its General Plan goals and objectives relating to City parks and recreational facilities:
Goal 21: Rehabilitation of Existing Parks
Policy 21.01: Park Rehabilitation
Encourage the rehabilitation of the City's parks to provide residents of all ages and physical capabilities with access to as wide variety of recreational experiences as possible. Park improvements should maintain a balance between active and passive recreation areas and should ensure that the park system benefits a diverse range of interest groups.
Policy 21.02: Park Maintenance
Provide for the regular, systematic maintenance of San Leandro's parks and recreational facilities to prevent deterioration, ensure public safety, and permit continued public use and enjoyment.
Policy 21.03: Priority on Renovation
Where cost savings and equivalent benefits would be achieved, rehabilitate existing recreational facilities before building entirely new facilities. A priority should be placed on renovating athletic fields and swimming pools, and replacing outdated facilities with new facilities that are safe, attractive, and better meet current needs.
Fiscal Impacts
There is no fiscal impact on the City to apply and receive the grant funds. If the HRP grant is awarded, the City may receive up to $946,000 in grant funding to renovate Siempre Verde Park and Thrasher Park.
ATTACHMENTS
None.
PREPARED BY: Steve Hernandez, Housing Specialist II, Community Development Departments