TITLE
Recommendation to approve the First Substantial Amendment to the Fiscal Year 2015 Annual Action Plan to obligate new Program Income in the HOME Investment Partnership program for activities that create affordable housing for low-income households;
Authorize City Manager to execute all necessary documents with the United States Department of Housing and Urban Development related to the First Substantial Amendment; and
Increase appropriations in the Community Development Grants Fund
(SR 150) in the Development Services Department (DV) by $4,000,000. (Citywide)
DISCUSSION
The City of Long Beach (City) receives federal funds from the United States Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG), HOME Investment Partnership Act (HOME) and Emergency Solution Grant (ESG) entitlement programs. The HOME program is designed exclusively to create affordable housing for low-income households. In order to receive CDBG, HOME and ESG funds, the City is required to submit a Five-year Consolidated Plan (Consolidated Plan) to HUD. For each year of the Consolidated Plan, the City is also required to adopt an annual Action Plan for the use of these entitlement funds. The current Consolidated Plan was approved by the City Council and HUD in 2012, and is valid from October 1, 2012 through September 30, 2017. On June 10, 2014, the City Council approved submission of the Fiscal Year 2015 (FY 15) Annual Action Plan (Action Plan) based on two public hearings conducted by the Long Beach Community Investment Company (LBCIC).
After the Action Plan was approved by the City Council and HUD, the City received an unanticipated loan repayment, in the amount of $3,930,412, resulting from the sale of the Northpointe Apartments, requiring amendment of the Action Plan. Other loan repayments have been received, bringing HOME loan revenue to $4 million. Federal regulation 24 CFR 91.505 and the City’s Citizen Participation Plan requires...
Click here for full text