REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute Agreements for Two HUD CDBG-funded Capital Improvement Projects: 1) Santa Clara Methodist Retirement Foundation - Liberty Tower (Elevator Upgrades); and 2) Rebuilding Together Silicon Valley (Minor Home Repair Program); (Categorical Exemption per the California Environmental Quality Act (CEQA) section 15301 (e)(1), Existing Facilities)
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The City of Santa Clara maintains a Consolidated Plan in conformance with requirements of the United States Department of Housing and Urban Development (HUD) which directs the City’s use of funds allocated to the City by HUD. On May 9, 2023, City Council approved the 23/24 Annual Action Plan (Attachment 1) which recommended Community Development Block Grant (CDBG) funding for 1) Santa Clara Methodist Retirement Foundation (aka, Liberty Tower) for elevator systems upgrades ($750,000); 2) Rebuilding Together Silicon Valley for the Minor Home Repair Program ($100,000). These projects address the City’s Consolidated Plan goals of Improvements to Affordable Housing for the benefit of low/moderate income residents. To begin work on these projects, the City Council must authorize the City Manager to execute agreements with each of the project sponsors. Since the City does not have alternative uses identified for these funds, it is necessary to move forward with these projects in order for the City to meet its CDBG expenditure timeliness requirement for program year 23/24.
DISCUSSION
The draft agreements for each of these projects are included as attachments 2 and 3 . Below is a brief description of the scope of work for each project:
1) Santa Clara Methodist Retirement Foundation - Liberty Tower (Elevator Upgrades). Liberty tower is a 101-unit affordable housing property for seniors in Santa Clara. The funding for this project will help pay for two (2) elevator upgrades (1 freight/1 passenger). The elevators and related systems are outdated and in need of updating for safety.
2) Rebuilding Together Silicon Valley (Minor Home Repair Program). The Homeowner Rehabilitation & Minor Repair Project preserves affordable housing by providing rehabilitation services to low-income homeowners who occupy their homes. Rehabilitation work will provide homeowners a safe and sanitary living environment. The primary consideration of repairs will be correcting deficiencies that create substandard and unsafe housing conditions.
ENVIRONMENTAL REVIEW
The action being considered qualifies as a Categorical Exemption per the California Environmental Quality Act (CEQA) section 15301 (e)(1), Existing Facilities in that the projects are limited to repairs and upgrades to systems serving existing residential units.
FISCAL IMPACT
These capital projects will be funded using federal HUD Community Development Block Grant (CDBG) entitlement funds allocated for the 2023/2024 fiscal year in the Housing and Urban Development Fund. The project budgets have been appropriated as part of the FY 2023/24 and FY 2024/25 Adopted Operating Budget approved by the City Council on June 27, 2023.
COORDINATION
This report has been coordinated with the Finance Department, City Attorney’s Office, and City Manager’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email <clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute agreements with: 1) Santa Clara Methodist Retirement Foundation - Liberty Tower to fund up to $750,000 for elevator upgrades and related work; 2) Rebuilding Together Silicon Valley, to fund up to $100,000 for the administration of the City’s Minor Home Repair program subject to the availability of Community Development Block Grant funds, on the terms presented, in final forms approved by the City Attorney.
Staff
Reviewed by: Andrew Crabtree, Director, Community Development
Approved by: Jōvan D. Grogan, City Manager
ATTACHMENTS
1. 2023-24 Annual Action Plan
2. Santa Clara Methodist Retirement Foundation - Liberty Tower (Elevator Upgrades) CDBG Agreement
3. Rebuilding Together Silicon Valley (Minor Home Repair Program) CDBG Agreement