HOUSING COMMITTEE REPORT relative to the 42nd Program Year (PY 42) of the Housing and Community Development Consolidated Plan (Con Plan) - Fourth Year Action Plan (2016-2017).

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

1. FIND that the PY 42 Con Plan - Fourth Year Action Plan will not have a significant effect on the environment, pursuant to the City's California Environmental Quality Act (CEQA) Guidelines, and in compliance with the CEQA of 1970; that the Notice of Exemption reflects the independent judgment of the lead Agency of the City of Los Angeles; that the documents constituting the record of proceedings in this matter are located in the Council file in the custody of the City Clerk, and acknowledge the Notice of Exemption for the PY 42 Con Plan, which was submitted by the Los Angeles Housing and Community Investment Department (HCID) as detailed in Attachment F of the Chief Legislative Analyst's (CLA) report, dated March 18, 2016, attached to the Council file.
   
   All new federally-funded projects are subject to environmental review under the requirements of the National Environmental Policy Act (NEPA) and pursuant to the U.S. Department of Housing and Urban Development (HUD) regulations, prior to any commitment of federal funds for expenditure, unless they are exempt from such review. HCID has determined that some action is programmatically exempted per Code of Federal Regulations (CFR) 58.34 and categorically excluded per CFR 58.35 (a) (b) from the annual environmental requirement.
   
   Commitment of funding for new projects that could result in a direct or indirect physical change to the environment are also subject to environmental review under CEQA, if implementation of the projects is authorized as part of the budgeting process. HCID has determined that some action is programmatically exempt annually under CEQA Guidelines for General Exemptions, Article 18 Statutory Exemptions Section 15260 through 15285, and Article 19 Categorical Exemptions Section 15300 through 15333.
   
   Those projects that are not exempt or not yet defined are approved, subject to: 1) confirmation that the project to be funded is categorically excluded under NEPA pursuant to 24 CFR Part 58 and exempt under CEQA pursuant to the Guidelines prior to project implementation; or 2) appropriate environmental review prior to project implementation.
   
   All projects involving new construction and/or major rehabilitation will require the preparation of a Mitigated Negative Declaration/Environmental Assessment and Finding of No Significant Impact or Environmental Impact Report/Environmental Impact Statement on a site-by-site basis.
   
   
2. APPROVE the PY 42 Con Plan and the related budgets for the Community Development Block Grant (CDBG) Program, HOME Investment Partnership (HOME), Housing Opportunities for Persons With AIDS (HOPWA) and Emergency Solutions Grant (ESG), as detailed in Attachment A of the CLA report, dated March 18, 2016, attached to the Council file.
   
   
3. AUTHORIZE the General Manager, HCID, or designee, to sign, on behalf of the City, the Application for Federal Assistance for the CDBG, HOME, HOPWA, and ESG Programs and the associated Grantee Certifications, subject to the review and approval of the City Attorney as to form.
   
   
4. AUTHORIZE the General Manager, HCID, or designee, to submit the annual 2016-2017 PY 42 Action Plan to HUD after Council and Mayor approval and the 30-day public comment period has been satisfied.
   
   
5. INSTRUCT the General Manager, HCID, or designee, to:
   
   
   1. Provide written notification to all applicants of the PY 42 Con Plan, as follows:
      
      
      1. To successful applicants, advising them of final award recommendations and required contracting processes to facilitate program implementation.
         
         
      2. To unsuccessful applicants, informing them that they are not recommended for award and further advising them of current and forthcoming alternative, competitive application processes.
         
         
      3. For all categories, notify all departments that have requested CDBG funding, the relevant Council Offices, and the City Attorney of these correspondences.
         
         
   2. Provide written notice to all implementing departments and agencies to refrain from programming or expending CDBG savings and/or program income as articulated in the CDBG Expenditure Policy and Guidelines adopted by Council and approved by the Mayor (Council file No. 01-2765-S2).
      
      
   3. Monitor public services and administrative services expenditures against the PY 42 statutory spending limitations respectively and report to the Mayor and Council within 30 days with recommendations for necessary adjustments in the event it is anticipated that either cap will be exceeded.
      
      
   4. Prepare Controller instructions and/or make any technical adjustments that may be required and are consistent with the intent of the PY 42 Con Plan actions; and, AUTHORIZE the Controller to implement these instructions.
      
      
   5. Prepare, with assistance from the Economic and Workforce Development Department (EWDD) and the CRA/LA (Designated Local Authority), quarterly reports for submission to the Mayor and Council on program income receipts for all Con Plan sources.
      
      
6. APPROVE the reprogramming of approximately $4 million in CDBG funds, as detailed in Attachment C of the CLA report, dated March 18, 2016, attached to the Council file, $750,000 in ESG funds, $1.5 million in HOME funds, and approximately $5.3 million in HOPWA prior year savings, as a source of revenue for the PY 42 Action Plan budget, subject to verification of availability by HCID.
   
   
7. AUTHORIZE General Managers, or designees, of program implementing departments to submit the appropriate Contract Authorities to the CLA and City Administrative Officer (CAO) immediately following Council approval of the PY 41 Con Plan budget.
   
   
8. INSTRUCT all departments receiving CDBG funds to submit billing and reimbursement documentation on a quarterly basis to HCID, and to continue to work with the CLA and CAO to identify salary and expense savings throughout the fiscal year and transfer those savings to the General Fund to compensate for unrecovered related costs.
   
   
9. INSTRUCT the CLA, with the assistance of the CAO, to meet with the Mayor’s Office, HCID, and all departments with active CDBG projects on a quarterly basis to determine if additional savings can be realized; and, if such savings are found, INSTRUCT the CLA to report to Council with recommendations for new expenditures of these funds.
   
   
10. INSTRUCT HCID to report to Council documenting PY 41 outcomes from the following programs, to include metrics on the number of individuals and/or families assisted: Homeownership Assistance, Single Family Rehabilitation - Handyworker, Urgent Repair.
    
    
11. INSTRUCT EWDD to report to Council with a report documenting PY 41 outcomes from the following programs, to include metrics: Clean Tech Business Incubator, Healthy Neighborhood Market Network Program.
    
    
12. INSTRUCT EWDD to report to Council with the guidelines and procedures needed to implement the Micro-Loan program.
    
    
13. INSTRUCT HCID to report to Council on the feasibility of merging the Handyworker and Urgent Repair programs.
    
    
14. INSTRUCT HCID to develop a Seismic Retrofit Loan Program and report to Council with guidelines and procedures.
    
    
15. INSTRUCT HCID, with assistance from the CAO, CLA, and Controller, to report on the timing and amount of a Reserve Fund loan required for cash flow purposes in Fiscal Years 2015-16, 2016-17 and future years. The report should also include how cash flow will best be addressed to ensure timely payment to service providers and agencies, as well as timely reimbursement to the City’s General Fund.
    
    
16. AUTHORIZE the Controller to implement PY 42 Con Plan and prior Con Plan technical corrections approved by the CAO or CLA which appropriate funds to various departments’ Fund 100 for approved CDBG projects to expedite the spending of CDBG funds to meet HUD's timeliness rule.

Fiscal Impact Statement: The CLA reports that the PY 42 CDBG will provide approximately $24 million to support positions (direct salaries: $13 million; expenses including contracts: $4.6 million; and related cost reimbursement: $6.4 million). For PY 42, the CAO has calculated total related costs to be approximately $7.2 million. Of this amount, approximately $6.4 million can be funded with CDBG dollars. This results in a balance of approximately $800,000 in related costs that may be considered by the Council and Mayor to be potentially funded with a General Fund allocation. For reference, the previous year’s PY 41 fiscal impact was estimated at $1.5 million in related costs. The year-to-year difference is due in part to reducing CDBG funds to departments that previously did not fully reimburse the General Fund for these costs. The City’s Financial Policies state that the City will pursue program grants, but will limit financial support of these programs to avoid commitments beyond available funding. Regarding impacts beyond related costs, it should be noted that the salary and expense components of some reduced line items in CDBG, such as Aging Services Delivery System, HCID Administration, AIDS Policy, FamilySource Centers, and the Commission for Community and Family Services, may require supplementation in FY 2016-17 by the General Fund if the Council and Mayor choose to fully fund these programs. It is a policy decision regarding how and at what level the City will contribute City resources, specifically the General Fund, to leverage CDBG grant program activities.

Community Impact Statement: None submitted.

RULES, ELECTIONS, INTERGOVERNMENTAL RELATIONS, AND NEIGHBORHOODS COMMITTEE REPORT and RESOLUTION relative to establishing the City's position regarding legislation to update guidelines for pedestrian countdown signals at crosswalks.

Recommendation for Council action, as initiated by Resolution (Huizar - Bonin), SUBJECT TO THE CONCURRENCE OF THE MAYOR:

ADOPT the accompanying revised RESOLUTION to include in the City's 2015-16 State Legislative Program SPONSORSHIP/SUPPORT for legislation to revise California Vehicle Code Section 21456(b) to update pedestrian laws to include new and safe guidelines for pedestrian countdown signals at crosswalks.

Fiscal Impact Statement:  None submitted by the Chief Legislative Analyst. The City Administrative Officer has not completed a financial analysis of this report.

Community Impact Statement:  None submitted.

HOUSING COMMITTEE REPORT relative to funding and 16 proposed contracts for the operation of Family Source Centers (FSC).

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

1. APPROVE the Housing and Community Investment Department's (HCID) list of 16 recommended contractors selected through the FSC Operator Request for Proposals (RFP) process as detailed in the February 26, 2016 HCID report, attached to the Council file:
   
   

   Contractor	Service Area	Council District
   Central City Neighborhood Partners	Westlake/Pico Union	1
   Watts Labor Community Action Committee	Southeast/Watts	8,9,15
   El Nido Family Centers	Southwest	8,9
   All Peoples Community Center	Southeast	9
   Barrio Action and Family Center	El Sereno/Lincoln Heights	1,14
   El Centro de Ayuda	Boyle Heights	14
   The Children's Collective	Southwest/Florence	8
   New Economics for Women	Van Nuys	2,6
   1736 Family Crisis Center	West Adams	10
   Youth Policy Institute	Hollywood	13
   Bresee Foundation	Wilshire	10, 13
   El Nido Family Centers	Pacoima	7
   Toberman Neighborhood Center	Wilmington/San Pedro	15
   El Centro de Pueblo	Echo Park/Cypress Park	1, 13
   Latino Resource Organization, Inc.	Westside	11
   New Economics for Women	Canoga Park	12, 13

2. AUTHORIZE the General Manager, HCID, or designee, to negotiate and execute new contracts with the 11 recommended contractors to operate the FSCs for the period of April 1, 2016 through March 31, 2017, including an option to renew the contract for four additional one-year periods, not to exceed a total of five years, subject to the approval of the City Attorney as to form, for the following service areas as detailed in the February 26, 2016 HCID report, attached to the Council file:
   
   

   Service Areas
   1.	Westlake/Pico Union
   2.	South East/Watts
   3.	South West
   4.	South East
   5.	El Sereno/Lincoln Heights
   6.	Boyle Heights
   7.	South West/Florence
   8.	Van Nuys
   9.	West Adams
   10.	Hollywood
   11.	Wilshire

   
      
3. AUTHORIZE the General Manager HCID, or designee, to establish a FSC Operator Replacement list to be in effect for five years commencing July 1, 2016, to include any FSC proposer receiving a score of 70 points or greater, including non-funded proposers, as a result of the 2016 FSC RFP as detailed in Attachment C of the February 26, 2016 HCID report, attached to the Council file.
   
   
4. INSTRUCT the HCID to report back to City Council before the implementation of any portion of said list as detailed above in Recommendation No. 1.
   
      
5. AUTHORIZE the General Manager, HCID, or designee to prepare Controller instructions and any necessary technical adjustments consistent with the Mayor and City Council action, subject to approval of the CAO; and AUTHORIZE the Controller to implement the instructions.
   
   
6. UTILIZE $1 million in funding from LAUSD to fund the five FSCs recommended for a General Fund allocation from April 1, 2016 through June 30, 2016 in the following service areas as follows:
   
   

   Service Areas
   12.	Pacoima
   13.	Wilmington/San Pedro
   14.	Echo Park/Cypress Park
   15.	Westside
   16.	Canoga Park

    
      
7. NOTE and FILE the March 18, 2016 City Administrative Officer (CAO) report relative to  funding and 16 proposed contracts for the operation of FSCs.
   
   
8. REFER to the Budget and Finance Committee the following recommendations:
   
   
   1. Authorize the General Manager, HCID, or designee, to negotiate and execute a new one year contract, with four one-year options to renew, with the Los Angeles Unified School District (LAUSD) for an annual cost not to exceed $1.0 million, on a sole source basis, with a dollar for dollar salary match provided by the LAUSD, for continued services including co-location of Pupil Services and Attendance Counselors at the FSCs, subject to the approval of the City Attorney as to form (Recommendation D in the February 20, 2016 HCIDLA report, attached to the Council file).
      
      
   2. Instruct the CAO to include in the 2016-17 budget, $3,785,000 in General Funds for five FSC Operators that will not have CDBG or CSBG funding, and to allocate such amount to Fund No. 100/43, Contractual Services Account 003040 on July 1, 2016, for the period of July 1, 2016 - June 30, 2017 (Recommendation E in the February 20, 2016 HCIDLA report, attached to the Council file).
      
      
   3. Authorize the Controller to transfer $946,000 from the Reserve Fund to the Unappropriated Balance and appropriate a like amount therefrom to HCID Fund No. 100/43, Contractual Services Account 003040 for five FSC Program Operators that will not have CDBG or CSBG funding, for services from April 1, 2016 through June 30, 2016 (Recommendation F in the February 20, 2016 HCIDLA report, attached to the Council file).
      
      

Fiscal Impact Statement:  The HCID reports that the FamilySource Center System is funded with a combination of Community Development Block Grant (CDBG), Community Services Block Grant (CSBG) and, beginning in Fiscal year (FY) 2014-15, General Funds. The total annual operating cost for the 16 non-profit run centers totals $13,860,000, of which CDBG will fund approximately $5.0 million, CSBG will fund approximately $5.1 million and $3,785,000 is requested from the General Fund for FY 2016-17.  In addition, the FSCs will require $946,000 in General Fund support in the current fiscal year to fund the five centers that will not have CDBG or CSBG funding for the period of April 1, 2016 through June 30, 2016.

Community Impact Statement:  None submitted.

ADOPTED

AMENDING MOTION (CEDILLO - HARRIS-DAWSON)

Recommendation for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

AMEND to AUTHORIZE the Housing and Community Investment Department to negotiate and execute three month contract amendments with the five FSC's recommended for a General Fund allocation from April 1, 2016 through June 30, 2016, with necessary funding utilized from reallocating $1 M in community Services Block Grant funds from the LAUSD FSC Pupil Services/Attendance Counselors Program.