City Council
MEETING DATE: 9/14/2016
TITLE:
Title
Status of the Dream Homes Neighborhood Related to the Use of CDBG Funding
End
FROM:
Vincent Lopez, Community Development Specialist
RECOMMENDATION:
Recommendation
This item is provided for information, discussion and direction only.
Body
BACKGROUND:
During the 2014-2015 Fiscal Year (FY), the Dream Homes neighborhood was classified by HUD as a low and moderate income area and, therefore, was eligible for the use of CDBG funding. Staff identified a section of San Joaquin Drive that needed sidewalk. The installation of sidewalk would allow connectivity to other sidewalk in the neighborhood for better walking circulation. At the time, CDBG funds were utilized to prepare an engineering study and design to identify the challenges of installing sidewalk on the street.
Because an engineering design had already been prepared for San Joaquin Drive, staff proposed to use CDBG funds the following fiscal year (FY 2015 - 2016) to implement the design and construct the much needed sidewalk on San Joaquin Drive. However, due to changes in the Census Tract information, the Dream Homes neighborhood no longer qualified as a low and moderate income area eligible to receive CDBG funding.
Rising incomes in the neighborhood is definitely a desirable trend, however, because the change removes the area from CDBG eligibility staff felt it was advisable to confirm the data. Therefore, staff met with the local HUD Representative to discuss the Census Tract information and explore options and ultimately requested that the information for the Dream Homes neighborhood be reviewed. The HUD Representative agreed and investigated the matter. The HUD Representative subsequently advised that the only way to reclassify this neighborhood as low and moderate income (LMI) is for the City to conduct an income survey.
Under the U.S. Department of Housing and Urban Development (HUD) Notice CPD-05-06, the City of Cathedral City may conduct an income survey in the Dream Homes neighborhood to gather and determine this area’s income status. Income surveys are conducted when entitlement grantees believe certain Census Tract Block Groups are likely low and moderate income (LMI) areas. The survey is done to confirm the income status and allow the City to allocate future CDBG funding for much needed improvements if, in fact, the area is determined to be LMI.
DISCUSSION:
The purpose of this Study Session Item is to provide the City Council with a summary and an update on some of the issues related to funding improvements in the Dream Homes neighborhood and some of the concerns from residents of the neighborhood. Staff is also seeking direction on moving forward with conducting an income survey to reclassify this Census Tract and, possibly, make it re-eligible for CDBG funding.
Neighborhood Projects Update:
1. Though an alternative source of funding, the City moved forward with the construction of sidewalks on San Joaquin Drive. The City not only installed sidewalk on the section of San Joaquin identified in the engineering design but, also installed additional sidewalk panels in other areas of the neighborhood to connect the walking path of travel in the neighborhood. This project was recently completed.
2. Later this fall, the City will complete Phase III of the Pavement Management Program (PMP) in Assessment District 2004-01 (Dream Homes). The project will apply rubberized emulsion aggregate slurry (REAS) to maintain and expand the life of the residential streets in the area. The Public Works Division is currently applying crack seal to these streets in preparation. Staff has submitted street measurements and is awaiting a cost estimate from Petrochem Materials, Inc. (PMI).
3. Also later this fall Code Enforcement staff will conduct a focused effort in the community, particularly aimed at removing junked and inoperable vehicles. This has been a recurring request from residents in the neighborhood.
4. Staff will also make a concerted effort to provide information, through the use of a variety of communications media, to residents of the neighborhood on recent and planned projects, code requirements and upcoming enforcement efforts. Improved communication has also been a recurring request from the neighborhood.
HUD Income Survey:
The City of Cathedral City has never conducted a formal income survey to change the income status of one of its Census Tracts. However, staff has researched and found that many of the professional consulting firms that provide CDBG technical support are experienced in gathering and conducting such surveys. Staff is seeking direction on whether to solicit bids to acquire theses services.
More positively, the results of the income survey may confirm that incomes have risen and it no longer qualifies as LMI. This would mean that this area is gradually progressing and doing economically better. The main objective of the City’s CDBG Program is to provide assistance and make improvements in low and moderate areas to achieve sustainability, accessibility, and create economic development opportunities.
Alternative:
On May 25th, the City Council approved and authorized the City Manager to enter into a contract with The Ramsay Group (TRG) to prepare the Assessment of Fair Housing planning report for submittal to HUD. As an option, City Council may amend the current agreement with The Ramsay Group to conduct the income survey and submit the necessary documentation and results to HUD. This option will reduce the amount of time to solicit bid proposals.
ENVIRONMENTAL ANALYSIS:
No environmental impact.
FISCAL IMPACT:
The HUD income survey, if Council proceeds, will require funding. The required amount will be addressed when the contract award is brought forward.
ATTACHMENTS:
CPD LMISD Map