Housing Department

Substantial Amendment to the CDBG 2010-2011 Annual Action

PlanMay 23, 2011

Housing Department

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Background

>2010-11 Annual Action Plan was approved on 5-10-10 and reported the City’s funding allocation plan to HUD. Included funding to Pasadena Neighborhood

Housing Services (PNHS)>Pasadena Neighborhood Housing Services (PNHS)

Disbanding organization and exploring bankruptcy

City rescinded CDBG award for $207,000 Return existing revolving loan fund balance

and loan pay-offs totaling $592,423 to City

Housing Department

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HUD Requirements

• Unallocated funds can not equal more than 1½ times the City’s annual allocation>Anticipated 16.2% reduction for FY 2011-2012>Recommended allocation of $717,493 to avoid

any potential recapture of funds by HUD

Housing Department

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Proposed Reallocation of Funds

• Debt Service payments $145,802> Final payoff of Chef’s Center of California (formerly Mama’s

Small Business Kitchen Incubator) loan> Reimbursement to the General Fund

• Administrative Costs $148,728> Analysis of Impediments to Fair Housing> General Administrative costs for program administration

• Capital Improvement Projects> Brookside Restroom Rehabilitation $97,643> Off-sites for Nehemiah Court Affordable Housing Project $25,320

• Robinson Park> Preconstruction Costs $300,000

Housing Department

Advisory Body Recommendation

• Northwest Commission>March 24, 2011>Approved Staff Recommendation

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Housing Department

Fiscal Impact

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• General Fund Increase>$145, 802

• CDBG funding allocation>$717,493