TITLE
Recommendation to approve the Community Development Advisory Commission funding recommendations for the FY05 Nonprofit Assistance Program (NAP); and authorize City Manager to execute and amend, as necessary, loan documents with various nonprofit organizations approved for FY05 NAP assistance in an estimated total amount of $500,000. (Districts 1,2,3,4,6,7,8)
DISCUSSION
For the last ten years, the City Council has authorized the Department of Community
Development to provide forgivable, no-interest loans to property owners of nonprofit
agencies providing public services to low-income Long Beach residents. in the current
fiscal year (FY 05) the budgeted amount approved by the City Council was $500,000 in
an effort to assist more nonprofit agencies. The Nonprofit Assistance Program (NAP) is
funded by federal Community Development Block Grant (CDBG) funds.
The NAP loans must be used solely for physical improvements to rehabilitate,
reconfigure, convert, and/or improve the facilities of nonprofit agencies. The minimum
loan amount is $5,000 and the maximum loan amount is $70,000. Loan recipients are
required to participate financially in the rehabilitation by providing a cash match equal to
five percent of the total amount determined to be necessary to make eligible
improvements. Deeds of Trust securing the NAP loans are recorded against the
property.
Thirteen (I 3) applications for funding were received. The Community Development
Advisory Commission reviewed and ranked each application based on pre-established
criteria.
The NAP selection criteria include:
e The proposed improvements will increase or significantly enhance services 'to
low-income Long Beach residents.
e The funding will be used to comply with health, building, fire, safety, and/or
zoning regulations, or to improve facility accessibility by meeting ADA
requirements.
e The nonprofit organization applying for NAP assistance has submitted all
application information including organization history, audit information,
verification of ability to meet the five percent match requirement, and
documentation regarding the clients served.
At its May 18, 2005 meeting, the Community Development Advisory Commission
recommended twelve (12) agencies for FY05 NAP funding totaling $500,000. A
summary of the applications received and the NAP funding recommendations is
attached.
This item was reviewed by Deputy City Attorney Donna Gwin on May 20, 2005 and
Budget Management Officer David Wodynski on May 24,2005.
TIMING CONSIDERATIONS
Council action on this matter is not time critical.
FISCAL IMPACT
Sufficient CDBG funds to support the Nonprofit Asststance Program (NAP) are
budgeted in the Community Development Grants Fund (SR 150) in the Department of
Community Development (CD). There is no impact to the General Fund.
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
[Respectfully Submitted,]