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HomeMy WebLinkAboutCOW 2004-08-09 Item 4 - Public Hearing - 2005 CDBG Block Grant Projects C OUNCIL AGENDA SYNOPSIS ir o f IS• 'nitials ITEM NO. s. Meeting Date I Prepared by I Mayor's review 1 Council review 1 1) \reh i, 08 -09 -04 I E. BOYKAN I A A ,1J.. tsoe 1 1 1 1 I CAS NUMBER: 04-111 I ORIGINAL AGENDA DATE: AUGUST 9, 2004 I AGENDA ITEM TITLE Proposed CDBG Projects for 2005 CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Other Hearing MtgDate MtgDate MtgDate MtgDate MtgDate MtgDate MtgDate 08.09-04 SPONSOR Council Mayor Human Services Adm DCD Finance Fire Legal P&-R Police PW Svcs SPONSOR'S Request approval of proposed projects for 2005. Also request approval of contingency plan SUMMARY for decreases or increases. Hold public hearing. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 07 -27 -04 RECOMMENDATIONS: SPONSOR/ADMIN. Hold public hearing in consideration of reauests stated above. CoMMrrrEE Same as sponsor. EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Housing and Urban Development Estimated $261,819.00 Comments: mss Ii �.t .3 .v ,Fl 4: 3T A* �f{_4' y,4 �3 1 �553�E� ��§a� t A .i ��a x {SdF •TC =4 08 -09 -04 1 COW l 11 .r x 44 Q1 i r..4 T',d a�... h nk.3 �%7 a 1K�F�a. f 0. f 08 -09 -04 1 Staff Memorandum dated 07 -27 -04 2005 Summary Sheet, Recommendations and Summary including contingencies for increases and decrease 1 2005 Fund Distribution INFORMATION MEMO To: Mayor Mullet From: Evie Boykan Date: July 27, 2004 Subject: Proposed Community Development Block Grant Proposals for 2005 Project No. ISSUE The City expects to receive an estimated $261,819 for 2005, not including any potential recaptured funds from this year. An internal advisory group met and made recommendations (see attached recommendations). Proposed projects must be shared through a public hearing with finalized recommendations going to King County. Jurisdictions are encouraged to jointly fund sub-regional projects at $50,000 or more, although for smaller pass-through cities, smaller projects will be allowed. BACKGROUND Our entitlement as a "pass-through" city allows us to annually allocate funds to capital, human service and planning projects. Funds are allocated by Housing and Urban Development (HUD) to Counties and then, for smaller cities, are "passed through" to them. DISCUSSION/ANALYSIS/ALTERNATIVES Council may choose to accept, modify or reject proposed projects. Staff will be available to talk about applications received and recommendations made. RECOMMENDATION Administration supports staff recommendations. Programs recommended for funding include: capital - Pediatric Interim Care Center - $10,000, Lutheran Community Services Northwest- $12,200, Home Sight First Homes - $105,000, Senior Services Minor Home Repair -$20,000 and King County Housing Repair -$63,637. For planning and admin, an update of Tukwila Human Services - $20,258 and for public services - Tukwila Senior Citizen Program Support - $30,724. A contingency plan for increases or decreases would be to increase or decrease the amount for King County Housing Repair. attachments: 2005 SUMMARY SHEET for CDBG Pass-through City City: Tukwila CDBG Funds Available for 2005 Allocation: Sham of 2005 Entitlement Grant: $ 168,965 Share of Recaptured Funds $ Additional Recaptured Funds $ Program Income: $ 92,855 Total Available: $ 261,819 Portion allowable for Public Services $ 30,724 Portion allowable for Planning/Administration $ 20,258 CDBG Funds Allocated in 2005Program Project Title Capital Public Planning/ Services Adrnin #1 Pediatric Interim Care Center $I0,000 $ $ #2 Lutheran Community Services Northwest $12,200 $ $ #3 HomeSight First Homes $105,000 $ $ #4 Senior Services Minor Home Repair $20,000 $ $ #5 $63,637 $ $ King County Home Repair #6 Tukwila Human Services Update $ $ $20,258 #7 Tukwila Senior Citizen Program Support $ $30,274 $ Subtotal, Capital $ 210,837 Subtotal, Public Service - $ 30,274 Subtotal, Planning/Admin $ 20,258 Total Allocated (must not exceed total available) $ 261,819 Funding Contingencies: Balance Increases and decreases from the King County Housing Repair Program 2005 CDBG Estimate Fund Distribution Recommendations and Summary of CDBG Proposals 2005 An internal working group composed of Moira.Bradshaw Can', Bob Giberson, Lucy Lauterbach, Stacy Hansan and Evelyn Boykan reviewed proposals and made the following funding recommendations for 2005: Pediatric Interim Care Center - New Facility construction - Request $10,000 Recommendation $10,000 Funds will develop a new facility for drug- exposed/medically fragile newborns on 3 purchased lots in Kent. This is a regional facility which provides 24 hour medical supervision, non- hospital care for drug exposed newborns throughout Washington state. They propose to construct a 2 story residential clinic to provide a centralized nurses station, 8 infant care rooms accommodating 3 infants each, a training center, lobby and family consulting areas and support and office areas. Location would be 2 blocks from its current location and will be close to the Kent Police station. It is the only resource offering a 24 hour information line for caregivers and training in the care of drng exposed infants for foster/adoptive parents, medical professionals and others. About 12,000 drug exposed infants are born in the state each year. The babies are brought through a withdrawal period average 30 days. About 25 % of the infants placed in 2003 were from South King County. Current facility has capacity of 15 babies. Proposed project will accommodate 25 infants and expand indirect services. They served a total of 161 infants in 2003. Program has been around since 1990. 21% of their total funding is proposed to coming from CDBG. Overall budget seems realistic, environmental review is being done with assistance from City of Kent. Agency has been successful in raising private and public funds. They have had experience in remodeling their existing site. They are asking for funds from all south king county suburban cities. Recommendation: Recommend providing requested support for this regional serving facility. Lutheran Community Services Northwest - Community Services Building -Request $12,200 - Recommendation $12,200 Funds will be used to cover permitting and fees associated with the development of a Community Services Building to provide licensed childcare, chore services for elderly/people with disabilities, refugee and immigrant support services and a health center. The project is in the pre-design and design phase for the new construction of a multi-service facility in the City of SeaTac. The facility will house extended hour childcare center (75 slots) refugee and immigrant mental health counseling services, chore services and a health clinic to be nm by Commurdty Health Centers of King County. These uses account for about 14,000 square feet. The remaining space will be used for administration and other social services. Lutheran Community Services Northwest, a non-profit organization that provides social services will operate the facility. This building is part of a larger effort to create a multi-generational campus that includes 80 units of low-income senior housing. South King County's explosive growth of low income and refugee and immigrant families demonstrates the need for such facility and services. They expect that 12% of their population will come from Tukwila. At 3,358, this is rather high, however, it can be argued that even with Refugee Women's Alliance and the International Rescue Committee, additional services at a relatively accessible location would be helpful to serve our large refugee and immigrant community. Total cost of this project is $7.3 million. A variety of fund sources are being used for the project. Tukwila's contribution would represent a very small percentage of the total funds needed. Recommendation: While this would be another regional serving facility, it would enhance the services available to limited income seniors, families and refugees and immigrants. It would serve Tukwila residents, both seniors as well as families. ItomeSight's Firstltomes Program - Request $105,000 Recommendation $105,000 HomeSight's request would provide first-time buyer purchase assistance loans to households earning at or below 80% of median income purchasing new or existing homes within the City of Tukwila. Their request increases gap financing assistance to $35,000 per household. Rates are currently for 30 years at a 3% interest rate with deferred principal payment for 7 years. The City funded HomeSight back in 2000 and since then 5 buyers have been assisted with an average loan of $22,100. At that time, households with incomes ranging from 40% of median income to 79 % of median income were served. Average sales price was $115,090 with a high of $169,500 and a low of $96,000. Applicants receive financial counseling, buyer education, loan underwriting and packaging subsidized by other funds not related to the City's contribution. HomeSight was awarded King County HOME dollars in 2003, and so a percentage of those dollars are being considered as match dollars for what the City of Tukwila contributes. As such, HomeSight indicates that with $105,000 of City CDBG funds, 6 Tukwila households will be served. Available housing stock would include either owner occupied or vacant houses. Houses used as rentals would not be allowable as that would trip the expensive Uniform Relocation Act regulations. HomeSight does have application for other funds pendi_qg for $1.5 million. As of June 1, HomeSight's investments and commitments for the Revolving Loan Fund totals $7 million. Currently there are 8 Tukwila households in the pipeline looking for an affordable house. This meets our efforts to increase homeownership in Tukwila. Senior Services of Seattle King County Minor Home Repair -Request $27,000 Recommendation $20,000 This program, targeted at low to moderate income homeowning households offers reasonable costs for small repair jobs (about up to $1,000). Homeowners pay $10 hr for labor and materials. Homeowners are not denied regardless of their ability to pay. We have funded this program since 1999 and it has served about 83 duplicated households. Costs to provide the service continue to rise, as such, the program requests $27,000 to serve 22 households. This number would represent 3% of the total clients served in the program. The agency also holds a contract with SeaTae, however the majority of clients served reside within the City of Seattle limits. While this program does meet a specific targeted need, marketing has always been a challenge - perhaps the name suggests to people that it is only available to seniors (not true), or there ~s a reluctance to ask for assistance or to provide the needed income documentation. As such, there have been years when the program was not able to reach their targeted goal. We do recognize the increasing costs for operations and recommend increasing their award to $20,000 annually. We will need to negotiate the number of households to be served. They proposed to serve 22 households for the original request. Human Services Needs Update -Request $20,258 Recommendation $20,258 The City can use up to $20,258 for planning purposes. The Office of Human Services proposes to use this money to hire a consultant to update the city's needs assessment, and to evaluate our efforts to address community needs. Our update would include synthesis of 2000 census data and recent school district data, eliciting public input from targeted groups and specific interviews, identifying strengths and needs and reviewing current goals and strategies. King County Housing Repair (Major Home Repair) Recommendation $63,637 We consistently have awarded this program funds annually to address homeowner major repair needs in the forms of no- interest loans up to $20,000 per household and emergency grants. These funds roll over from year to year and by the end of 1st quarter 2004 $126,820 was available to commit to Tukwilahouseholds. Recently we discussed the advantages of using these funds to assist side sewer connection customers - by routing them through housing repair, we would avoid the internal administrative costs beyond income eligibility screening. At this time, it is anclear how much money we should set aside for side sewer assistance customers. 13 households are in the pipeline for home repair for this year and it is expected that we will spend out our funds. The group also recommended that any increases or decreases come to/from this area. Tukwila Senior Citizen Program Support - Recommendation $30,724 This amount represents the allowable amount of CDBG dollars that can be used for human services. Bruce Fletcher, from Parks and Recreation indicated that he would like to continue using the funds to support the Senior Recreation Program Assistant. Multi- Service Center - $60,000 This proposal targets literacy issues within an employment context - helping individuals with employment plans to obtain the resources they need to help build self sufficiency skills. The program is targeted to existing low wage earners with either soft skills or literacy skills. Positions funded would include a Family development specialist that would provide assessment, GED and possibly ABE classes. Other staff would include literacy development specialists and a literacy development supervisor. Services would be provided at some unidentified location in Tukwila. One on one or group service would be offered. Participants will be Tukwila residents who are low income and are either unemployed or underemployed. Would propose to serve 40 Tukwila residents. Outcomes are vague and probably depend on whether the person is employed or unemployed to begin with. MSC does have a history of providing employmem, however most of their services have been based in Federal Way. They do have contracts - CDBG - to work with Renton, Kent and Federal Way, but they are just getting started due to the lateness of the County getting contracts out. Recommendation: Don't recommend funding for next year since - the proposal is vague, they don't have a track record yet with the other cities, there is some employment being done with TANF refugee clients through ReWa, and there is some overlap wi~ our Adult literacy program. Total Preliminary Estimate of Funds Available $261,819 Total Funds Recommended $261,819