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City of Berkeley

PROGRAM YEAR 2002 ANNUAL

ACTION PLAN

(for Housing and Community Development)

May 2002

City Council

Mayor Shirley Dean

Polly Armstrong

Margaret Breland Miriam Hawley

Linda Maio Betty Olds

Maudelle Shirek Dona Spring

Kriss Worthington

Housing Advisory Commission Daniel Rossi, Chair

Jay J. Vega, Vice Chair Maggie Gee

Chris Kavanagh Jose Luis Lopez

Deborah Matthews Robert Migdal

Antoinette Pietras Eugene Turitz

City Manager Weldon Rucker

Housing Department

Interim Director, Stephen Barton

Program Planning, Management and Budget Division Manager, Oscar A. Sung

Consolidated Plan Preparation Staff: Teri Piccolo, Andrew King, Steven Ford

City of Berkeley

2002 Annual Action Plan

Table of Contents Executive Summary A. Overview 1 1. Public Review and Allocation Process 1 2. Goals and Priorities 2 3. Trends and Conditions Update 2 4. Proposals Received 4 B. Housing and Community Development Budget 5 1. Introduction 5 2. Resources 7 3. Investment and Leveraging Plan 8 C. Strategies for Meeting Housing Needs 9 D. Berkeley Housing Authority Actions 10 E. Homeless Services 11 1. Priorities and Activities 11 F. Programs/Projects to Meet Housing Priorities 13 1. Housing Development 16 2. HOME Program 17 3. Section 108 Funding 17 4. Housing Programs to Maintain the Housing Stock 18 5. Lead Remediation Program 18 6. Fair Housing 19 7. Anti-Displacement 20 G. Anti-Poverty Strategy/Public Services 20 H. Community Development Projects 21 I. Location of Services 22 J. Program Administration 22 1. Housing Department 22 2. Planning and Development Department 22 3. Health and Human Services Department 23 4. Rent Board 23 5. Monitoring Program 23 Attachments:

A. Executive and Summary of Projects funded B. Project Map and Chart Containing Project Address, ConPlan Priority, and Service Area C. IDIS List of Proposed Projects D. Comments received from Public Hearings. E. City Manager’s Council Report Containing Summary of CDBG/ESG Funding Allocations F. Housing Advisory Commission Report Containing the Rationale for Funding Allocations G. March 31, 2002 Housing Trust Fund Summary

CITY OF BERKELEY PROGRAM YEAR 2002 ANNUAL ACTION PLAN

EXECUTIVE SUMMARY The housing crisis noted in past years is continuing with housing sales prices still soaring beyond the reach of low and moderate income first-time homebuyers and rental costs for newly vacated units beyond the affordability level of low income residents. The downturn in the economy necessitates even more strongly the need to provide public services to the poor and those who are low income. Despite a downturn in the local economy and City revenues, Berkeley remains committed to continued funding of its affordable housing and social programs contained in the 5-year Consolidated Plan, to implement its Homeless Continuum of Care Plan, and to further fair housing. The City is funding affordable housing programs to assist those who are homeless or have special needs; funding local non-profit entities to continue to provide valuable public services to the community; improving public/community facilities; and to undertake planning and administration projects to develop and assess programs and ensure their proper implementation. The City of Berkeley Program Year (PY) 2002 Action Plan was approved by the Berkeley City Council on April 23, 2002 after an extensive public review process which began in November and was led by the Housing Advisory Commission. Federal CDBG, ESG, and HOME Program monies received for PY2002 total $5,908,398. The page that follows contains a list of all projects funded. The entire PY 2002 Annual Action Plan can be found at www.ci.berkeley.ca.us/housing. In terms of overall commitment, the City is allocating approximately $12 million in federal, state, and local funds and is exploring ways to increase funding for affordable housing and needed services, including approving a fee to help subsidize the Rental Housing Safety Program, and considering adding a tax measure on the November ballot for affordable housing and to address seismic safety needs. In Program Year (PY) 2002, the City has $4,606,433 in CDBG monies which it has allocated to 44 programs as follows:

- 16 housing projects: $2,759,520 - 18 public service activities: $723,104 - 5 public/community facilities improvements: $270,809 - 5 Planning and Administration activities: $853,000.

Most of the CDBG allocations were to continue on-going activities; in fact, all public service programs received two-year funding last year. A few new projects were funded to meet priority needs, including: assisting the Berkeley Housing Authority with effective implementation of the Shelter Plus Care Program and rehabilitation of the low income housing units it owns; undertaking disability accessibility projects at Bonita House and at the La Pena Cultural Center; expanding the West Berkeley Family Practice to increase health services to the uninsured; meeting the needs of youth by funding A Better Way, Inc. to increase its children adoption and therapy offices and by building a climbing wall at South Berkeley’s San Pablo Park. The City’s allocation for the federal Emergency Shelter Grant Program is $135,965. Ninety five percent (95%) of this amount has been allocated to Berkeley Emergency Food and Housing Project, Inc. and Building Opportunities for Self-Sufficiency, Inc. to provide services to those who are homeless and to improve homeless shelters. The remaining 5% is to administer the program. Berkeley will receive $1,166,000 in federal HOME Program monies. Of that amount, $536,725 has been committed for rehabilitation of 2111 McKinley Street transitional housing for homeless families, and new affordable housing developments at 3222 Adeline Street and 2575 San Pablo. These developments were reviewed under the Housing Trust Fund (HTF) Program review process. Another $379,000 is waiting City Council approval in June, $116,400 will be used to administer the program, and the remainder will be allocated in the next HTF round.

http://www.ci.berkeley.ca.us/housing

July 1, 2002 - June 30, 2003 Project * C D B G * * ESG * * H O M E * Amount

1 Rebuilding Together Safe Home 88,393 88,393 2 Low-Income Housing Dev't - AHA 102,211 102,211 3 Residential Access for Dis. - CIL 142,675 142,675 4 Housing Development & Preservation 331,924 331,924 5 Loan Servicing 77,810 77,810 6 Relocation Services 64,501 64,501 7 Rental Housing Safety Program 329,792 329,792 8 Home Repair - CESC 338,097 338,097 9 Scattered Site Affordable Hsn. - NCLT 50,000 50,000

10 Affordable & Supportive Hsng - RCD 141,750 141,750 11 Comp. Emp. Prep. & Plcmnt - Adelante 75,782 75,782 12 Emp., Trng., & Social Svcs - AJOB 156,000 156,000 13 Elderly & Disabled Mobility - BAORP 28,047 28,047 14 Homeless Shelter Program - BOSS 21,433 10,954 32,387 15 Integrated Services Team - BOSS 28,010 28,010 16 Homeless Services - BEFHP 48,049 29,246 77,295 17 One-Stop Homeless Emp. Prog. - JFHC 42,600 42,600 18 Housing Counseling - ECHO 44,339 44,339 19 Employment, Education & Training - ICS 141,229 141,229 20 Emp/Sup. Svcs for Single Parents - WERC 43,367 43,367 21 CDBG AUDIT 16,000 16,000 22 Fair Housing - Housing Rights 35,147 35,147 23 Program Planning & Administration 437,050 6,700 443,750 24 Support Costs 239,000 239,000 25 Single Family Rehab 546,967 546,967 26 Housing Trust Fund 300,000 1,049,400 1,349,400 27 Homeless Prev & Svcs Planning 125,803 125,803 28 Free Clothing - Berk. Ecum. Ministries 10,000 10,000 29 Com. Fac.- Rebuilding Together 20,000 20,000 30 HOME Administration 116,600 116,600 31 Jubilee Affordable Housing Development 62,400 62,400 32 Harrison House Improvments 58,974 58,974 33 Life Skills Program - Berkeley Adult 27,560 27,560 34 Supportive Independent Living - Bonita 15,020 15,020 35 Creative Livng Center - Bonita House 10,000 10,000 36 Technology Tools for Life - CAT 6,000 6,000 37 Legal Services - East Bay Com. Law Ctr. 20,800 20,800 38 Clinic Expansion - Lifelong Medical 75,000 75,000 39 Accessibility Program - U Students Coop 35,000 35,000 40 MASC Drop-In Services 4,868 4,868 41 Public Housing Improvements 120,000 120,000 42 A Better Way Office Expansion 70,000 70,000 43 Food Project Shelter Improvements 25,865 25,865 44 BOSS Youth House Improvements 4,226 4,226 45 ADA Bathroom Project - Bonita House 28,000 28,000 46 San Pablo Park Play Area Improvements 70,000 70,000 47 Cultural Center Facility Improvements 35,809 35,809

TOTAL 4,606,433 135,965 1,166,000 5,908,398

PROGRAM YEAR 2002 ANNUAL ACTION PLAN TO MEET THE CITY OF BERKELEY'S CONSOLIDATED PLAN

FOR HOUSING AND COMMUNITY DEVELOPMENT A. Overview 1. Public Review and Allocation Process In order to receive federal Community Development Block Grant (CDBG), Emergency Shelter Grant (ESG), and HOME Program monies, localities must develop an Annual Action Plan (which includes applications for CDBG, ESG, and federal HOME Program) for meeting its 5-year Consolidated Plan (ConPlan) goals. The Program Year 2002 Annual Action Plan and projects adopted must be consistent with the City's 2000-2005 ConPlan's primary goals of maintaining the City's ethnic, social, and economic diversity through activities to maintain affordable housing, social services, job creation, and other programs which assist the poor and low/moderate income Berkeley residents. The City undertook an extensive public participation process, which had the following: schedule

November 2001 issuance of a Request for Proposals for the CDBG and ESG programs,

December 6, 2001 public hearing by the HAC in December on community needs, January 10th & 17th public presentations on proposals submitted January/February weekly meetings by CDBG Subcommittee to obtain detailed

information on proposals. February 21st The Housing Advisory Commission (HAC) holds a public

hearing on the proposals received and the Preliminary Draft Consolidated Plan (ConPlan) Annual Action Plan and. That Draft was further refined as the allocation process continues. The public will have the opportunity to comment on the Draft until May 1st.

March 7th City Manager makes CDBG/ESG preliminary recommendations

The HAC finalizes its CDBG/ESG recommendations. April 16th The Council will hold a public hearing on the CDBG/ESG

proposals and Action Plan. April 23rd City Council adopts CDBG/ESG funding allocations and the

Annual Action Plan.

City of Berkeley 2002 Action Plan Attachments In addition to the City’s standard Brown Act notification and posting requirements, public hearing notices were placed ten days in advance in the Daily Planet for December 6, 2001 and for the February 21, 2002 meeting and on the Daily Cal for the April 16th hearing. Additionally, all applicants were informed of the February and April hearings. There were no speakers at December 6, 2001 public hearing except that the Berkeley Homeless Commission attended to convey the results of an October 24, 2001, meeting it held on special needs of non-profits. There were 33 speakers at the February 21, 2002 public hearing. A total of 26 spoke at the City Council public hearing of April 16th. All but two speakers at the April 16th meeting spoke in support of the HAC and the City Manager’s recommendations. The two who spoke against were disappointed that the Black Repertory Group was not being recommended for funding. The list of speakers for both public hearings as well as the Homeless Commission meeting is contained in the attachments). The allocation of federal HOME monies, which this year totals $1,166,000 goes through a separate allocation process. Except for the 10% administration portion ($116,600), the HOME allocation ($1,049,400) is placed into the Housing Trust Fund (HTF) Program and goes through the selection process established for that program. A public hearing was held by the Housing Advisory Commission on six proposals requesting HTF monies (see attachment). On January 22, 2002, the City Council approved several of those housing proposals. Of those, three will be partly funded with HOME PY 2002 monies for a total of $536,725 (2111 McKinley Street, 3222 Adeline Street and 2575 San Pablo Street). Pending City Council approval, another $$379,000 will be allocated to Jubilee/Resources for Community Development, Inc.’s 2575 San Pablo Project to replace a State HELP loan received. The remaining $123,675 will be allocated in the next HTF round. 2. Goals and Priorities The proposed 2002 Annual Action Plan is consistent with City Council goals for the biannual budget year FY 2002 -2003 which are to: • Promote affordable housing • Provide healthy youth alternatives

• Increase business efforts that increase employment opportunities for low income residents (General Funds are used to

• Reduce poverty • Promote neighborhood stability • Ensure public safety • Implement and coordinate needed public/private improvements • Provide solutions for the health disparities problem in our community • Rehabilitate/upgrade the BHA’s low income public housing units. • continue funding existing projects, if they are performing well. The City's use of CDBG, ESG, and HOME Programs is crucial to meeting the City's goals. 3. Trends and Conditions Update Last year’s Consolidated Plan Update included information on racial/ethnic changes in the

City of Berkeley 2002 Action Plan Attachments City based on the 2000 Census. The census figures showed that the White population continued to decline (55.2% vs. 58.3%), as did the Black population (13.3% vs. 18.2%). There continued to be an increase in the Asian population (16.4% vs. 14.4%) and the Hispanic/Latino population (9.7% vs. 8.2). Income data are still unavailable to determine changes in the low/moderate income make-up of Berkeley, although it is expected that the income composition in the city will be different than in 1990 because the increased housing costs are forcing lower income households to leave. Providing affordable housing and services continue to be extremely difficult in Berkeley in the coming fiscal year. Despite a downturn in the economy in 2001-2002, the cost of living in the bay area continues to increase. Housing prices, while not increasing at the same rate as the year before, continue to rise beyond the reach of even moderate income first time homebuyers. While the homeownership rate has gotten better in the rest of nation, it has gotten worse here. Rent prices also continue to rise. According to a Rent Board report that was presented to City Council on January 8, 2002, there are still 7,678 (40% of all rent-controlled units) affordable rental units in Berkeley under rent control. Overall, rents become unaffordable to low income renters when they are vacated and reoccupied. The average rent ceiling for units rented after January 1, 1999 (when Costa-Hawkins went into effect which eliminated controlling rents when a unit is re-rented), was $1,184. Rents keep going up. For example, median rents for units under rent control that were rented between June 30, 2001 and December 31, 2001 were as follows: studio - $810; 1-bedroom: $1,150; 2-bedroom: $1,500; 3-bedroom: $1,966. An indicator of the impact of the rent increases on individuals is the high number of persons that have requested assistance to the City’s Homeless Prevention Program. By December 2001, that program had spent all the funds allocated for the entire year (over $100,000) and its budget had to be tripled to meet the requests for assistance from that program. Experts disagree as to how fast the downturn in the economy will change in the Bay Area with ABAG predicting it will recover by the third quarter of 2002 and experts from the UC Haas School of Business stating that an upsurge in the economy of the Bay Area is unlikely before 2003 (2/4/02 Berkeley Daily Planet article). Making a prediction for Berkeley is even more difficult because Berkeley has a more diverse economy than the rest of the Bay Area. However, there has been a decrease in revenues from the utilities tax, hotel tax, and parking fines. According to the City’s Budget Unit, in the coming year, the City faces a revenue shortfall of $2.86 million. Departments are being asked to provide a budget with a 10% decrease and employee cutbacks are expected. While the City is committed to maintain the same level of funding for housing and social services, it is unknown at this time whether the decreases will extend to contracts with community agencies for social service. The City must approve its budget by June 25th. This coming fiscal year, community agencies are also receiving fewer private grants because of the 9/11 incident resulted in more charity dollars going to New York and fewer dollars to other places (After the holiday season of giving had passed, it was estimated that California non-profit agencies received about $40 million less than the same time the year before).

City of Berkeley 2002 Action Plan Attachments The impact of the downturn in the economy in California is also seen in the City’s WorkSource Program (which also contains the unemployment Department), which is seeing more people requesting job placement assistance (about 50 to 60 people a day walk into the Addison St. office) and is also noticing a change in ethnic and social profile of job seekers (Since December the numbers have increased and there has also been demographics changes. In the past, program users were primarily Blacks, now also other minorities and Whites. The number of older persons, and persons with higher job skills using the program has also increased). State government assistance to housing and social services programs in FY 2001-2002 was reduced because of the energy/economic crisis in California. Examples of program reductions which affect Berkeley include the Multifamily Housing Program which was reduced by about $8 million, to $23 million; the EHAP homeless assistance which was cut by $700,000, to $13.3 million; and Downtown Rebound was cut by $1.4 million, to $3 million. The State will place an affordable housing bill on the November ballot to help deal with the housing crisis in the state. At the federal level, there was a slight increase in CDBG monies in FY 2002-2003 but funding for many other social service programs were reduced (e.g., there are cuts in library spending, reduction in public housing rehabilitation funds, reduced funding for investigation of child abuse cases, reduced funding for the Low Income Home Assistance Program for flow income individuals who need assistance paying energy bills, and cuts in Welfare to Work programs. 4. CDBG and ESG Proposals Received The City Manager’s April 16th Council Report in the attachments contains a list of all FY 2002-03 CDBG/ESG proposals received by category with amounts allocated this year (for continuing programs), amounts requested for PY 2002, the City Manager’s and the HAC’s funding recommendation, and the City Council’s final allocations. Of note in this year’s allocation process are the following:

- Except for the ESG Program, there was no request for proposals for public services since last year approved agencies received two year funding for the CDBG, CSBG/GF, and the local Measure O homeless assistance programs. Of the 16 programs in this category, one is now defunct: the $75,782 originally earmarked to Adelante and allocated this year, can now be used for other CDBG projects. However, the amount allocated for FY 2002-2003, pending Council approval, may be re-allocated to the Multi-Cultural Institute, a non-profit agency which provides valuable services to the Hispanic/Latino. - A total of 30 CDBG proposals were received for CDBG funding and four proposals

City of Berkeley 2002 Action Plan Attachments

for ESG Funding. Of these, 16 were in the Housing category, 8 were in the public/community facilities category, 6 were in the Planning and Administration category. There were no economic development proposals. Fourteen of the 16 housing proposals and 5 of the 6 Planning and Administration proposals were ones currently funded through CDBG program. - The total amount requested is $6,457,784 in CDBG (includes $723,104 already committed to public services) and the total available is $4,606,433 leaving a gap of over $1.8 million dollars between amount available and amount requested.

Under the ESG Program the total requested is $156,714 and the total available is $135,656 (allocation of $134,000 plus $1,656 in carryover monies), leaving a gap of $20,058. Of the total amount available only $40,200 can be spent for services since there is a 30% cap on services, 5% can be spent for program administration, and the rest must be spent for shelter improvements. Three proposals for ESG services have been funded totaling $59,400: Two are to continue partial funding for homeless case managers employed by Berkeley Emergency Food and Housing Project (BEFHP - $29,246) and Building Opportunities for Self-Sufficiency (BOSS - $10,954). Jubilee Restoration submitted a new ESG proposal for $19,200 for youth services at the Potter House owned by Jubilee Restoration. However, that proposal was not funded. In terms of facility improvements, both BEFHP and BOSS submitted, and received approval for, proposals totaling $90,614 for improvements by at the Dwight Way Shelter the Multi-Agency Services Center (MASC) at the Veteran’s Building, BOSS’ Youth House and Harrison House. The remaining $6,700 will be used by the Housing Department for ESG Program administration. The HAC, the Homeless Commission, and the City Manager were all in agreement in recommending the above allocations. Because of unexpected delays, there may be some shifting of approximately $25,000 in FY 2000 ESG shelter improvement monies from BOSS to BEFHP to ensure that those monies get spent within the two-year time limit. In that eventuality, en equal amount would be switched back to BOSS from the BEFHP’s FY 2001 and FY 2002 allocations. The City will meet its ESG match requirement of $34,000 through its use of General Funds to fund BOSS, Inc. for services at the MASC (the City has allocated a total of $181,473 for those services). B. Housing and Community Development Budget 1. Introduction This coming year the City is making available approximately the same level of federal, state, and local resources as the current year. The vast majority of those funds are being used for meeting the needs of very low income persons and persons at the poverty level. Below is a list of resources and funding level. Not contained in the list are federal allocations to the Berkeley Housing Authority (BHA). The City has been successful in applying for and receiving funding under the following State

City of Berkeley 2002 Action Plan Attachments programs: - Housing Enabled by Local Partnerships (HELP) Program. Approximately $500,000 (last year the City received $1.5 million; another $500,000 was received this year). Loans must be repaid within 10 years and have a 3% simple interest. These monies are expected to be all allocated for the acquisition of existing properties in order to keep existing units affordable or to buy unimproved land for future construction of affordable housing. - Cal Home Loan Program. The City has applied for, and received, $250,000 in State rental rehab monies to match the CDBG monies that will be allocated to the Seniors and Disabled Homeowners Rehabilitation Loan Program. AB2034 grant for services and housing for dual-diagnosed mentally ill residents. This $3 million grant was received last year and implementation began this year. A staff person paid with AB2034 monies is now working in the Housing Department to assist those with special needs to find housing and to integrate housing programs with mental health needs of its occupants. The City continues to participate in the Mortgage Credit Certificate Program for first-time homebuyers but is not optimistic that anyone will be able to take advantage of that tax credit program because there is virtually no housing for sale in Berkeley within the maximum sales price limits. However, the City is referring would-be homebuyers to a countywide program that assists them in becoming homeowners. The City and community agencies plan to apply for other state resources if they become available. BOSS, Inc. is planning to apply for funding in the next funding cycle of State Supportive Housing Initiative Act ((SHIA) Program. In terms of federal programs, the City Council has approved the participation in the HUD Section 108 Loan Guarantee program as a means to leverage CDBG funds for eligible projects. The public participation process for the Section 108 loans includes a public hearing before the Housing Advisory Commission and approval of loan submission to HUD by the Berkeley City Council. Under the Section 108 Program, the City can get a line of credit that is five times its CDBG allocation amount which would make available approximately $19 million in below market financing for economic development and certain aspects of affordable housing development. At the present time, one 108 loan application has been approved by HUD (RCD’s Adeline Street Development received a $500,000 loan). Three other projects have received Council approval for submittal to HUD as follows:

- Loan for rehabilitation of the 75 units of public housing owned by the Berkeley Housing Authority - $1,500,000. - Loan for development by Affordable Housing Associates (AHA), Inc. of senior housing at 2517 Sacramento Street - not to exceed 800,000 . - Loan for development by AHA, Inc. for its University Avenue Development -$800,000.


Other projects may ask for Section 108 funding either as a way to leverage the City’s Housing Trust Fund (HTF) or other types of affordable housing or economic developments for which the HTF is not appropriate. In such a case, the established public allocation process will be followed.

2. Resources Federal: - CDBG $4,606,433 ($4,066,000 plus carryover and program income monies) - ESG 134,000 - HOME 1,166,000, - CSBG 160,000 - Shelter Plus Care (approx.) 1,000,000 Total $7,066,433 State Funds - AB 2034 housing part (1FTE) 80,000 - HELP Program 500,000 - Cal Home Loan 250,000 Total $830,000 Local Funds (does not including staffing costs for the Anti-poverty and Homeless Services of about 5 FTE) - General Funds (GF) as part of the CSBG/GF 1,578,402 - Anti-Poverty Program - Local Measure O and related Homeless Program monies 1,099, 604 (Measure O $816,491) - HHS Local Homeless Emergency Services (approx.) 500,000 - Homelessness Prevention Program 110,000 (request for additional monies but may not be approved) - General Funds to Housing Trust Fund 130,000 - HIV/AIDS Housing Subsidy Program 60,000 - Affordable Housing Advocacy 30,000 Total $3,508,006 Other Resources - Weatherization (LIHEAP) 81, 829

City of Berkeley 2002 Action Plan Attachments (about 25% of anticipated budget) - Weatherization (DOE) 15,619 - PG&E Energy Crisis Intervention 200,000 (assumed to be the same as last year. - Federal Workforce Implementation Act monies to City’s one-stop center (approx.) 300,000 - Projected City’s GF budget allocation to community agencies(based on this year’s allocation) 235,000

Total $832,448 Grand Total $12,236,887

3. Investment and Leveraging Plan for Affordable Housing Developments The City's investment and leveraging plan to create and maintain affordable housing is to use both government and private financing, and to encourage cooperation between the private non-profit sector and the public sector. Major components of this year's City leveraging plan are as follows:

• Use the HTF Program to allow comparison and competition among housing proposals. • Work with developers of affordable housing who are not willing to meet the HTF

requirements but are willing to provide some level of affordable housing beyond what is required by the City’s Inclusionary Zoning Ordinance.

• Use the federal Low Income Housing Tax Credit, the Section 108 loan Program, and State

HELP Program to obtain below market financing. • Require City-funded non-profit housing developers to attend peer evaluation workshops to

share ideas on how to strengthen areas of weaknesses. • Carefully assess proposals by considering feasibility and cost-effectiveness in producing

immediate and direct impacts; having applicants show evidence of substantive and effective past performance in similar activities (or willingness to joint venture with an experienced developer); and requiring evidence of capacity in attaining greater self-sufficiency and less reliance on City funding.

• Require inspection fees for the Rental Housing Safety Inspection Program. The City Council is considering approving a $10 per unit fee in rental buildings with 3 or more units.


• Encourage housing developers to apply for government and other funding as a way of leveraging City Housing Trust Fund monies.

• Encourage private financing under the Community Reinvestment Act to obtain partial

funding for housing projects. • Revisit the City’s housing mitigation fees.

• Except in limited situations, continue to give loans instead of grants and allow re-use of

repayments for the initial purposes. • Use City’s Control of BART Air Rights for affordable housing and community

development projects.

• Refine the Grants Coordination Group to ensure that each Department is aware of, and applies for, grants that are available and are in keeping with the City’s goals and priorities.

C. Strategies for Meeting Housing Needs In addition to using the resources cited above and leveraging existing funds better, new funding sources will need to be found if the City is to take a more active role in dealing with the housing crisis. In this coming year, the City will:

• Consider placing an affordable housing tax measure in the November ballot to obtain a dedicated source of funding for affordable housing and for seismic retrofitting.

• Coordinate staff of the Planning and Housing departments to help ensure

implementation of the Housing Element. Included in this is monitoring of the Inclusionary Zoning.

• Support current state and federal proposals and ballot initiatives that will

increase housing resources.

• Lobby for state bills aimed at reducing the negative impacts of vacancy decontrol.

• Re-examine the Inclusionary Zoning Ordinance for better coordination with

state density bonus requirements.

• Re-examine and the Condominium Conversion Ordinance to determine if they can be revised to assist in maintaining/creating affordable housing. and the housing impact fees levied for commercial developments.

• Refine the Rental Housing Safety Program and continue outreach to owners


and tenants to increase safety of the rental housing stock.

• Examine the risk of conversion of low income units at Harriet Tubman Terrace Senior Housing Project and other projects whose LIHTC affordability period is expiring.

• Consider ways that the One-stop Permit Center can streamline the approval

process for affordable projects (e.g. by giving them priority in processing applications).

• EBHO – continue to provide visible signs that affordable housing do not

negatively impact neighborhoods.

• Continue to require long-term affordability (55 years) for HTF-assisted projects and to target some of the HTF to assist those with special needs (seniors, disabled residents, families with children), those who are homeless or at risk of homelessness, and very low income families (especially through the Section 8 Program).

• Have HAC review housing projects receiving City assistance that do no meet

the HTF guidelines but are being funded to meet other City goals to determine if more affordable units than is required under inclusionary zoning is feasible.

D. Berkeley Housing Authority (BHA) Actions The BHA is currently facing extreme difficulty both in terms of the Section 8 Tenant-Based Voucher Program and its public housing administration. The BHA has been labeled as “troubled” by HUD and is taking drastic actions to address the problems leading to that designation. On February 19, 2002 the Executive Director brought before the BHA Board a major reorganization plan and performance standards for its operations which will eliminate two positions (from 21 to 19staff positions) and shift resource among the BHA’s five functional components to reduce expenditures as well as enhance program accountability. The goal of the plan is to eliminate Section 8 Program’s dependency on the General Fund. This year the BHA budget had a $322,000 deficit ($236,000 for the Section 8 Program and $86,000 for public housing) with the General fund covering $150,000 of that deficit. Reducing the BHA’s deficit is possible both through re-organization and with maximizing the BHA’s lease-up potential. The lease up rate has finally taken a slightly upward turn since January 2001 and is expected to continue. The BHA’s goal is to achieve a 95% utilization rate of its budget authority by April 2002 as required by HUD. More owners are now drawn to the Section 8 Program because of the two special increases in the Payment Standard approved by HUD in late 2000 and early 2001, an outreach program to get more owners interested in leasing under Section 8, and the slightly higher rental vacancy rate in the city. The BHA has been working with two separate Residents Councils to help identify problem

City of Berkeley 2002 Action Plan Attachments areas. During the last application period the BHA received a total of 3721 applications of which 2329 were from Berkeley residents. Initial applicant interviews for the new list began in March 2002 and vouchers began to be issued in April. In terms of the public housing units, major rehabilitation is needed in those units to address interior repairs, landscape improvements, exterior painting, erecting smoke and fire barriers in the attics, window repairs and/or replacements, gutter and downspouts repair and/or replacements, and temporary relocation. According to a BHA Budget Update to the BHA Board on January 15, 2002, the total revised cost projection for rehabilitating all 75 BHA units is $2,226,000. The status report contains the funding sources to cover the initial phase of the rehab which amounts to $826,000 through the following sources: the federal Public Housing Operating Reserves, State Rental Housing Construction Project Operating Reserves, Federal Capital Funds due from HUD for FY 2000 and FY 20001 non-routine funds in the Public Housing Program, and Section 108 loan monies. The BHA Board has authorized the Executive Officer to solicit bids for property management of the 75 units of public housing and has endorsed the concept of allocating $120,000 in CDBG monies for the Section 108 Loan repayment and $70,000 in administration fees for the Shelter Plus Care Program. These proposals are currently under review by the HAC. E. Homeless Services 1. Priorities and Activities Assisting those who are homeless continues to be a very high priority for Berkeley. In FY 2002-2003 the City's Continuum of Care Plan will guide the homelessness prevention effort. That plan’s overall goals are to maintain existing services and facilities, homelessness prevention, and provide transitional and permanent housing with services. There will continue to be close coordination between the Housing and HHS departments even now that the Homeless Services Coordinating Team has been moved over to the Housing Department, the Measure O contracts previously administered by HHS are now the responsibility of the Housing Department, and another staff hired with AB2034 monies (who previously worked as the Alameda Countywide Continuum of Care Program Coordinator) works in the Housing Department to coordinate the housing needs of homeless Mental Health Department clients. HHS still provides an array of health and social support services to homeless persons in Berkeley and close coordination is still needed. Berkeley will continue to participate actively in the Countywide Continuum of Care Council to provide integrated services at the regional level. The City will continue to assist those who are at-risk of homelessness through increased General Funds for the Homelessness Prevention Program administered by ECHO, Inc. To increase coordination among programs and focus money on most-needed activities, ECHO and the City will consider transferring CDBG monies from ECHO’s Shared Housing Program to the Homelessness Prevention Program.

City of Berkeley 2002 Action Plan Attachments The Homeless Team work program for 2002 includes: - Improvement of contract administration and monitoring of homeless services providers and working with them to improve service delivery. - Continuation of regional state/federal policy coordination and advocacy. Staff has actively participated in advocacy and educational efforts in Washington D.C. to provide a permanent, on-going funding source for the Shelter Plus Care Program. Staff will also be involved in the countywide request for proposals, application-preparation, and project prioritization process. Now that HUD has issued the SuperNOFA for Supportive Housing Program funding, in addition to continued funding for on-going projects, saff will work with services providers to identify other new needed projects (one such possibility is the acquisition of a multi-unit building by Bonita House to provide housing and services for dual-diagnosed individuals). - Proper implementation and fiscal administration of the Shelter Plus Care Program and the Winter Shelter and Vouchers Program. Although the City has a selective hiring freeze, it plans to hire a replacement for the Shelter Plus Care Coordinator who is no longer employed with the City. One issue associated with the Shelter Plus Care Program is that full lease up cannot be achieved because the program’s flat budget and the need to pay higher rents to be competitive in the rental market. One strategy to increase the number of units under Shelter Plus Care is to switch approximately 10 Shelter Plus Care clients to the regular Section 8 Program. (this year 18 clients were switched). Another of the Shelter Plus Care goals is to find more housing in Berkeley for Shelter Plus Care participants. - Improved Interdepartmental coordination (especially with HHS on AB 2034 activities). - Monitoring of two Housing Trust Funds transitional housing projects to ensure timely completion. - Staffing the Homeless Commission. This Commission also reviews and makes recommendations to the HAC on the ESG proposals received. It is proposing to work with the Housing Advisory Commission to explore solutions to high commercial rents, which are a burden for non-profit community agencies, including those providing homeless services. - Holding weekly meetings with other Housing Department staff to coordinate activities, which impact those who are homeless or at risk of homelessness. - Developing a policy/procedure for addressing client grievances received at the Housing Department about services at various homeless assistance programs. - Developing an effective assisted referral system for those who drop-in at City Hall for assistance.

City of Berkeley 2002 Action Plan Attachments - Coordinating a City Council workshop on homeless issues and strategies. In terms of homeless battered women, the City has leased of the City-owned Byron Street transitional housing facility that has been transferred from the Women’s Refuge to the Berkeley Women’s Daytime Drop-In Center. City staff will monitor the operations at that facility. - Work with Mental Health Division and the Berkeley Emergency Food and Housing Project collaborative to ensure the provision of on-site mental health and other services and proper operation of the 1741 Russell Street facility, which now provides housing for 14 severely disabled homeless people. The City will continue participation in the countywide collaboration to reduce homelessness and to apply for federal McKinney Act monies. Berkeley will also work with the Continuum of Care Council to develop a strategy for dealing with expected federal cuts. F. Programs/Projects to Meet Housing Priorities To meet its affordable housing priorities, the City has given priority to using CDBG monies to continue funding existing projects that are performing well. There were thirteen applications for continued funding. However, many of the housing proposals have asked for substantial increases that cannot be accommodated within the available budget. Some of the proposals were from non-profit housing developers. The CDBG Subcommittee, the HAC, and the City Manager discussed the viability of Northern California Land Trust (NCLT) as a housing developer since its primary focus seems to be changing to conversion of existing housing into limited equity coops rather than initiating new housing developments. This year’s allocation for this agency has been reduced from $72,647 to $50,000. That agency will receive technical assistance from LISC(Local Initiatives Support Corporation) to evaluate the organization and consider merger with an Oakland non-profit.. Three new housing proposals requested funding, a Better Way’s Foster Teen Housing Renovation ($90,000), Bonita House’s ADA Bathroom Project ($57,189), and the BHA’s Public Housing Improvement Project ($120,000). Bonita House and BHA’s proposals were funded, A Better Way’s proposal was denied because it would have caused displacement of existing tenants. undertaken/ or continued. Please note that Tenant-based Assistance (TBA) programs are not included in this list (Section 8 Program, Shelter Plus Care, Homelessness Prevention Program, HIV/AIDS Housing Assistance Program).

Summary of Housing Programs and Goals


Program Units Status Beneficiary/priority/comment

Program: HTF Priority - Development of permanently affordable housing

Priority – Creating housing for people with special needs. All HTF projects are required to be affordable at 60% of AMI. The majority are affordable to households at 30% - 50% of median income or below. Since November 1999, 20% are to be affordable at households at 30% of AMI. The vast majority of projects are targeted to households with special needs.

1320 Haskell Street NCLT (South Berkeley)

3 units

Project now in construction initially to be completed in FY 2001-2002, it has been delayed for a variety of reasons and is expected to be completed by 12/03.

2517 Sacramento Street (Outback Housing)

Affordable Housing Associates

29 continuining New Senior rentals over ground floor commercial. Total 40 units of which 29 are affordable AHA owns the property. The project has received $1.4 million in HTF monies , and 27 Section 8 Project-based units. It will apply for tax credits as well. Total development cost is approximately $7.8 million.

2575 San Pablo Avenue

Jubilee Restoration, Inc./RCD

27 Continuing This senior housing project is still in the predevelopment stage. The property was acquired w/ $379 HELP loan and received $863,108 in HTF; It is expected that the HELP loan will be switched to HOME funding to increase the possibility of the project receiving HUD 202 funding.

3132 M.L. King, Jr. Way Prince Hall Arms (South Berkeley)

37 units continuing Mixed-use bldg. w/ low income senior housing in South Berkeley. Demolition was completed. This project has run into serious difficulties and was at a complete standstill. City staff is again working with the owner to put together a viable development.

3222 Adeline St.

RCD, Inc.

19 units continuing Housing for disabled households. Construction has begun on this project. City’s committed ,$1,887,474 in HTF monies, 18 units are under the Section 8 Project-based Assistance, HELP Program Monies and is expected to receive Section 108 Assistance.

1725 University Avenue

AHA, Inc.

30 units continuing Disabled & non-disabled low income housing. Property acquisition completed. City assistance includes, HTF ($1,903,141) 14 Section 8 Project-based units, and Section 108 assistance. AHA applied for, but did not receive federal Tax Credits; will reapply.

711 Harrison St. – Ursula Sherman Village

BOSS, Inc.

6 bdrms + 7 units

continuing Transitional housing for homeless households with children; homeless men with children. The project is undergoing environmental review.

2500 Hillegass Avenue

Affordable Housing Associates

19 continuing (acqu/rehab)

Acquired with HELP monies ($589K)12 units will be affordable between 40%-80% of AMI with 9 units of Project-based Section 8. Project expected to be completed by fall 2002.

1419 Ashby Ave. 4 units continuing New construction of limited appreciation




Northern California Land Trust condominiums. Project behind schedule and at a standstill.

1001 Ashby Ave.

AHA, Inc.

35 units new Acquisition of vacant property to develop for affordable housing, HOME monies will be used for the acquisition. The developer plans to ask for HTF monies.

Pre-development of special needs housing

RCD, Inc.

n.a. new Predevelopment stage for a new special needs housing (address not identified but RCD working with realtor).

Bonita House (Site unknown) 8 New Bonita House plans to acquire an existing building to make available as permanent housing for dual-diagnosed persons who are homeless or at risk of homelessness.

Predevelopment of Affordable Housing on Oxford St. Parking Lot

City of Berkeley

90 new At the direction of City Council, staff is working with the Planning Commission and the HAC on the development of a mixed-use affordable housing, low-cost space for arts, environmental center, commercial/retail space, and parking on a city-owned parking lot on Oxford Street.

South Berkeley Ashby Bart Station

City of Berkeley

n.a. continuing Explore creation of affordable housing for teachers and City employees on its air rights over the South Berkeley BART Station.

Inclusionary Zoning and Other Housing Development Projects 2002 Acton (at University) Panoramic Interests/Jubilee Restoration

20 units continuing 15 units at 50% of AMI, 5 units at 80% of AMI out of a total 60-72 units. In exchange for the affordable units, the State will sell land (approx. 22,000 sq. ft.) for $118,000.

2161 Allston Way 12 units continuing Inclusionary units – 6 units at 80% of AMI and 6 units at 50% of AMI in a 60 unit bldg.

2700 San Pablo Avenue Jubilee Restoration/Panoramic Interests

9 units continuing Owner partnering with a for-profit. Receiving Redev. & Bayer monies but not through the HTF program. Total number of units 39 (9 of these are affordable).

Library Gardens Apartments Approx 35 new Largest proposed rental housing project in Berkeley for several decades (approximately 175 units, 20% inclusionary). Inclusionary units: one half available for Section 8; one-half– 1/ 2 at rents affordable to households at 80% of AMI.

Priority: Housing Rehabilitation/Repair for residents with special needs (All rehab/repair programs targeted at 50% of median income or below, at least half benefit those who are extremely low income [30% of median or below])




Seniors and Disabled Rehab Loan Program (Citywide)

12 units projected HH income requirement 50% of AMI or below. Deferred, zero interest loans. About 12 households expected to be assisted to be used in tandem with state monies.

Rebuilding Together through Christmas in April (Citywide)

20-25 units

projected Program beneficiaries are poor elderly and disabled, minority households. Most of the houses to be rehabbed will be in the NSA. About 1500 volunteers provide labor. Some materials discounted or donated.

Minor Home Repair Community Energy Services Corp.

(Citywide)

300 units projected Minor repairs and disaster resistance repairs. Security window bars. HH income primarily 30% of AMI. Program beneficiaries may include low income families in addition to those who are elderly and disabled.

Disabled Accessibility Program CIL (ramps and interior retrofit)

39 units projected Program beneficiaries are those who are disabled. 10 wheelchair ramps; 29 interior retrofits.

University Students’ Cooperative Association

n.a. projected Project proposes to help to increase disabled accessibility/earthquake safety in student housing.

Bonita House n.a. ADA Improvement

Bonita house will make its facility on Bonita Street ADA compliant through the use of $28,000 of FY 2002 CDBG allocation.

Other Housing Programs

Weatherization Programs Housing Dept. (Citywide)

uk projected Most HH with 30% of AMI or below.

Project Share (Citywide) 25 HH projected Project benefits both the low income tenant and homeowner which is usually low income as well. This project may be merged with the Homelessness Prevention Program also administered by ECHO, Housing.

1. Housing Development The Housing Trust Fund will continue to be used as the principal source to fund housing development for permanently affordable housing and transitional housing, especially for people with special needs. Approximately 50 units may be completed in this coming year. Other projects are in the predevelopment stage or are awaiting funding commitments from other sources. Additional projects not necessarily “in the pipeline” may materialize when the HTF Request for Proposals is sent out. 2. HOME Program The federal HOME Program is the largest contributor to the HTF with an allocation for FY 2002-2003 of $1,166,000. Of that amount, $1,049,400 is to be placed in that HTF and $116,600 (10%) is to be used to administer the program. Any HOME repayments received

City of Berkeley 2002 Action Plan Attachments will also be placed in the HTF and used for HOME-eligible projects during the HTF round. The City will allow use of HOME monies for refinancing purposes if such a proposal is submitted and the HTF review process indicates that such use would be an effective way of maintaining low income housing. As stated on page 2, a total of $536,725 (2111 McKinley Street, 3222 Adeline Street and 2575 San Pablo Street) has already been allocated and, pending City Council approval, another $$379,000 will be allocated to Jubilee/Resources for Community Development, Inc.’s 2575 San Pablo Project. The remaining $123,675 will be allocated in the next HTF round. The City's required HOME match of $263,000 can be easily met through excessive matches paid in previous years and the City’s General Fund contributions to the Housing Trust Fund. Affordable Housing Associates and Resources for Community Development (RCD), Inc. will continue to act as the City's Community Housing Development Organizations (CHDOs) for use of the 15% HOME set-aside for such organizations. There are currently two CHDO-eligible projects which have received City Council approval and which will be used to meet the City’s CHDO requirements for past years (3222 Adeline Street and 2517 Sacramento Street, 2575 San Pablo). Allocations of HOME monies are subject to HTF Guidelines requirements, which are stricter than the HOME requirements. 3. Section 108 Funding The City’s Section 108 line of credit is between $15-19 million. The Section 8 Program can use to provide below market financing for affordable housing and economic development projects. Activities eligible under the Section 108 programs are similar to those for CDBG and include: Economic development activities Acquisition of real property Rehabilitation of publicly owned real property Housing rehabilitation eligible under CDBG Construction, reconstruction or installation of public facilities Related relocation, clearance and site improvements Payment of interest on the guaranteed loan and issuance costs of public offerings Debt service and loan loss reserves In limited circumstance, housing construction as part of economic development This year the City will use the Section 108 Program loan approved for the previously described Adeline Street Apartments and for AHA’s University Avenue Apartments if the Section 108 loan and other funding sources are approved. It is difficult to know a priori what other projects may request funding in the future. Possible future candidates include the Masons’ Prince Hall Arms Project, AHA, Inc.’s 1001 Ashby Street project, the Oxford Street, and the BART Station Air Rights Project.

City of Berkeley 2002 Action Plan Attachments Projects applying for Section 108 funding will go through a similar public review process as used for the HTF Program. That is, proposals will be reviewed by the HAC, its subcommittee, and the City Manager’s Technical Advisory Committee before they are brought to the City Council for approval. . 4. Housing Programs to Maintain the Housing Stock Using City programs to maintain the housing stock is a less important priority for the City given the current market, which generally makes available private financing to undertake rehab activities. The City will continue to fund housing rehab/repair programs (Rebuilding Together (previously Christmas in April), Minor Home Repair, and the Seniors and Disabled Housing Rehabilitation Program), because these have been successful and fill the priority of assisting people with special needs (low income seniors and disabled persons), and will also help maintain the housing stock. The City will explore funding earthquake-safety activities that will benefit low-income residents. Especially targeted are “soft-story” buildings. Certification as to their rental unit(s) safety by property owners as required under the Rental Housing Safety Program is an important preventive measure to increase the safety of the City’s rental housing stock. Both CDBG monies and General Funds will be used to operate that program. Additionally, the City will consider charging a $10 per unit fee in buildings with three or more units to help subsidize that program. Alameda County is working with Christmas in April to undertake lead identification and abatement activities through its home repair program. The City federally-assisted rehabilitation projects will follow federal guidelines for lead remediation. The City has trained staff with the proper Certification and has coordinated with Alameda County. 5. Lead Remediation Program The City and community agencies’ federally-assisted rehabilitation projects will follow federal guidelines for lead remediation. The City has trained staff with the proper Certification to monitor Senior Housing Rehabilitation Loan Program Projects and HTF projects and will work with Alameda County in doing so. Rebuilding Together will continue to work with Alameda County to undertake lead identification and abatement activities in homes where lead remediation is required. 6. Fair Housing The City has as a primary goal a commitment to maintaining the diversity of its population. It actively promotes fair housing and reducing impediments to it and discourages housing discrimination by funding Housing Rights, Inc. and coordinating with that organization to implement the City's anti-housing discrimination program. To deal with the discrimination problem, Housing Rights, Inc. will educate about discrimination laws and take actions to help ensure enforcement of the law in instances where violations occur. It will investigate discrimination complaints, hold workshops, disseminate housing rights information, and undertake housing rights advocacy. Other activities that the City plans to undertake in the

City of Berkeley 2002 Action Plan Attachments following year are included below:

• Establish April as Fair Housing Month. • Continue to provide fair housing services and do outreach to minority groups at

risk of discrimination.

• Educate City staff, Commissions, and housing community agencies about fair housing and ADA requirements and include reviews of publicly assisted projects for disability/ADA compliance.

• Continue to refine the City's Analysis of Impediments to Fair Housing.

• Explore the possibility of passing legislation against predatory lending

practices.Federal, State, and regional studies indicate that such practices exist. The HAC has recommended that Council consider passing an ordinance similar to that passed in Oakland and is waiting until a lawsuit is settled to undertake the necessary research.

• Fund the Affordable Housing Advocacy Project to help organize and empower

tenants. • Use General Fund monies and take other measures to create/maintain affordable

housing. • Provide rent eviction assistance. • Have EBHO present slide show of affordable housing projects to help reduce

opposition to affordable housing. EBHO is receiving CDBG funding to inform people about affordable housing.

• Add Rent Board funding to tenant organizing efforts.

7. Anti-Displacement No displacement is expected from use of CDBG or HOME monies. A total of 7 tenants will receive temporary relocation assistance for City/BHA-assisted rehab activities. Temporary displacees will be given the proper relocation notices and assisted with services and payments to alleviate hardships that may result from the move. Housing Department staff will also provide information about the City ‘s Relocation Ordinance and referral to available services to approximately 120 persons who have to move temporarily to bring properties into code compliance even where no City monies are involved. The Housing Department has several programs to assist those who have to relocate due to private action, including a relocation ordinance, an emergency housing assistance program,

City of Berkeley 2002 Action Plan Attachments and will institute a referral system to help tenants with special needs to find housing. G. Anti-Poverty Strategy/Public Services The City is continuing to use a multi-faceted approach to reducing poverty by funding over 50 community agencies that offer needed services such as child care and health care, being actively involved in job creation/job placement activities, and funding community development activities. The overall priority in the area of reducing poverty is the continuation of existing public services programs. At total of $759,460 in CDBG funds was allocated to Public Service activities. This amount is below the grandfathered Public Service cap of 17.83%. Due to a switch in funding that took place last year for FY 2001-02 and 2002-03 funding, several community projects previously funded with General Funds (Berkeley Adult School/Life Skills Program, Bonita House/Supported Independent Living Program and Creative Living Center, Center for Accessible Technology/Technology Tools for Life, and East Bay Community Law Center/Legal Services) will be funded with CDBG monies this year.. CDBG monies will continue to be used for funding non-profit job training/placement agencies: AJOB, ICS, WERC, and Jobs Consortium). These agencies will be asked to coordinate activities with the City’s One Stop Employment Center. Adelante is no longer existent as an organization. On April 23, 2002, the City Council directed the Housing Advisory Commission (HAC) to explore the possibility of the Multi-Cultural Institute to take over the contract (and activities) previously undertaken by Adelante. On May 2, 2002, the Housing Advisory Commission unanimously recommended that the contract should go to the Multi-Cultural Instituter and the City Council is expected to take action in June. The Multi-Cultural Institute has been in operation since 1991 and provides valuable services to the Latino community as well as to other ethnic groups. The City is using General Funds to fund some of their other programs. If Council approval is obtained, the IDIS system will be revised at that time to show that switch in agencies. The City will continue to fund the First-Source Hiring Program using General Funds. The City General Fund anti-poverty budget is expected to be the same as last year (about $1.3 million; this does not include funds for homeless programs). The City will continue to operate the Workforce Investment Act’s One-Stop Employment/Career Center, which assists 50-55 persons a month. This center provides universal “core” employment services, intensive services, and WIA training. It partners with EDD, Vista College, Berkeley Adult School, and BOSS, Inc., all of which have an office at the One-Stop Center. It collaborates with EASTBAY WORKS which allows centralized regional service for Bay Area residents. It also coordinates activities with ICS and is planning closer coordination with AJOB and other job training entities.


• Require, and monitor, use of the First Source Hiring Program for City-assisted housing development projects.

• Continue to implement the living wage ordinance requiring entities (for profits

and non-profits) doing business with the City of Berkeley or leasing Berkeley property to pay employees a minimum wage of approximately $9.75 per hour (plus a $1.62 supplement if health benefits are not provided). The City is subsidizing non-profit entities covered by the Ordinance in order that they can meet the City’s living wage requirements.

• Explore ways to assist day laborers being employed from the street, including

holding meetings with stakeholders to develop solutions encountered by the workers and neighbors.

• The City’s YouthWorks Program will continue working with the Berkeley

Unified School District and the local businesses and merchants to obtain employment and training for young people.

• Continue to coordinate between the City and the Berkeley Unified School District to

address the educational and skills development challenges faced by Berkeley youths.

H. Community Development Projects Many of the projects in the category of housing, public services, public/community facilities improvements, and planning serve the purpose of community development as well. In the housing category the following projects also have a major community development objective. For example: the Rebuilding Together project not only helps preserve housing and assists those with special needs, it also engenders community development through the use of hundreds of volunteers. The relocation project helps keep people in their homes (anti-displacement). I. Location of Services The majority of housing and services will continue to be targeted in the NSA consisting of South and West Berkeley, which is the part of the City that has the highest level of low income and minority residents, and the greatest need for revitalization (see attachments for map and table of locations). The Consolidated Plan has identified Census Tracts 4220, 4221, 4231, 4232, 4233, 4234, and 4240 as the census tracts where the minority population is 10% above the citywide level. All of them are included as part of the NSA. Many of the services programs (CDBG/ESG, as well as the City's General Fund/CSBG Anti-Poverty Program) are also located in the NSA. Other programs are available citywide and/or located outside the NSA but most of their beneficiaries are from the NSA or are low income. J. Program Administration

City of Berkeley 2002 Action Plan Attachments 1. Housing Department The Housing Department is under the direction of the Office of the Director which also coordinates planning and other activities with other Departments and the City Manager’s Office for the smooth operation of existing programs, creation of new ones, and exploration of additional housing and community development resources. Coordination between departments should be easier now that most of the City employees have moved back into the renovated Civic Center Building at 2180 Milvia Street. The administration for the CDBG, ESG, HOME, GF/CSBG, and Measure O and other homelessness prevention programs is consolidated in the Program Planning, Management and Budget (PPMB) Division of the Housing Department. Other administrative activities of PPMB staff include: monitoring affordable housing projects related to the Housing Trust Fund; undertaking planning activities in the area of housing, homeless programs, and community development (working closely with the Health and Human Services Department and the Planning and Development Department); and coordinating implementation of the General Plan’s Housing Element. The Housing and Energy Division staff, funded through CDBG and General Funds, administers housing development, housing rehab and anti-blight programs, the Rental Housing Safety Program, weatherization and other programs to increase energy efficiency. The BHA operates the largest affordable housing program (the Section 8 Housing Assistance Program), 61 units of public housing and 14 units of state-assisted units. The BHA is involved with other programs which provide permanent housing for those who are homeless (Section 8 Mod Rehab units and Shelter Plus Care). 2. Planning and Development Department The Planning and Development Department (PDD) has primary responsibility to ensure that programs and activities are in keeping with the City's General Plan. The Planning and Development Department also has lead responsibility for revisions to the Zoning Ordinance, Area plans, and strategic plans, many of them impacting housing in the City. PDD is also involved in housing or mixed use projects which do not receive HTF assistance. PDD provides technical assistance to businesses willing to sign “First-Source Hiring” Agreements, which are then referred to HHS for implementation. 3. Health and Human Services Department As described in the Consolidated Plan, the Health and Human Services Division is the other major Department with primary responsibility for health programs, recreational programs, and social services programs to assist residents with special needs. HHS operates the One-Stop Employment Center (is part of the Workforce Investment Act) and coordinates the First Source Program with other City programs involving job placement for low income persons. 4. The Rent Board

City of Berkeley 2002 Action Plan Attachments The Rent Board is responsible for administering the Rent Stabilization and Good Cause for Eviction Ordinance and provides information, referral, and counseling to both tenants and owners. It funds two non-profit organizations to assist in eviction prevention. 5. Monitoring Program Program requirements for the City's affordable housing programs are incorporated into contracts, deed restrictions, and loan documents to ensure compliance. Program requirements include those established by Federal regulations for CDBG, HOME and ESG and those established by ordinances and resolutions of the Berkeley City Council. Once projects are completed, the monitoring responsibilities are generally separated into the following components: CDBG and ESG monitoring, affordable housing project monitoring, and other monitoring. The Housing Development staff will monitor projects until construction completion. Thereafter, monitoring is transferred to PPMB staff. Funding for monitoring comes out of the CDBG Program and General Funds. Staff expects to refine its monitoring system to measure outcomes in addition to meeting contract requirements. Please see 5-Year Strategy for details of monitoring of different programs.


July 1, 2002 - June 30, 2003 Attachment A

Project * C D B G * * ESG * * H O M E * 1 Rebuilding Together Safe Home 88,393 88,393 2 Low-Income Housing Dev't - AHA 102,211 102,211 3 Residential Access for Dis. - CIL 142,675 142,675 4 Housing Development & Preservation 331,924 331,924 5 Loan Servicing 77,810 77,810 6 Relocation Services 64,501 64,501 7 Rental Housing Safety Program 329,792 329,792 8 Home Repair - CESC 338,097 338,097 9 Scattered Site Affordable Hsn. - NCLT 50,000 50,000

10 Affordable & Supportive Hsng - RCD 141,750 141,750 11 Comp. Emp. Prep. & Plcmnt - Adelante 75,782 75,782 12 Emp., Trng., & Social Svcs - AJOB 156,000 156,000 13 Elderly & Disabled Mobility - BAORP 28,047 28,047 14 Homeless Shelter Program - BOSS 21,433 10,954 32,387 15 Integrated Services Team - BOSS 28,010 28,010 16 Homeless Services - BEFHP 48,049 29,246 77,295 17 One-Stop Homeless Emp. Prog. - JFHC 42,600 42,600 18 Housing Counseling - ECHO 44,339 44,339 19 Employment, Education & Training - ICS 141,229 141,229 20 Emp/Sup. Svcs for Single Parents - WERC 43,367 43,367 21 CDBG AUDIT 16,000 16,000 22 Fair Housing - Housing Rights 35,147 35,147 23 Program Planning & Administration 437,050 6,700 443,750 24 Support Costs 239,000 239,000 25 Single Family Rehab 546,967 546,967 26 Housing Trust Fund 300,000 1,049,400 1,349,400 27 Homeless Prev & Svcs Planning 125,803 125,803 28 Free Clothing - Berk. Ecum. Ministries 10,000 10,000 29 Com. Fac.- Rebuilding Together 20,000 20,000 30 HOME Administration 116,600 116,600 31 Jubilee Affordable Housing Development 62,400 62,400 32 Harrison House Improvements 58,974 58,974 33 Life Skills Program – Berkeley Adult 27,560 27,560 34 Supportive Independent Living - Bonita 15,020 15,020 35 Creative Livng Center – Bonita House 10,000 10,000 36 Technology Tools for Life – CAT 6,000 6,000 37 Legal Services – East Bay Com. Law Ctr. 20,800 20,800 38 Clinic Expansion – Lifelong Medical 75,000 75,000 39 Accessibility Program – U Students Coop 35,000 35,000 40 MASC Drop-In Services 4,868 4,868


41 Public Housing Improvements 120,000 120,000 42 A Better Way Office Expansion 70,000 70,000 43 Food Project Shelter Improvements 25,865 25,865 44 BOSS Youth House Improvements 4,226 4,226 45 ADA Bathroom Project – Bonita House 28,000 28,000 46 San Pablo Park Play Area Improvements 70,000 70,000 47 Cultural Center Facility Improvements 35,809 35,809

TOTAL 4,606,433 135,965 1,166,000 5,908,398


Attachment D CDBG, ESG, and HOME Programs Public Hearing Speakers April 16, 2002 City Council Public Hearing Testimony: The Mayor opened the public hearing. Speakers: Deborah White, Shahnaz Mazandarani, Anini Karsoff, Pam Spikes, Paul Chin, Craig McCaleb, Karen Hester, Gerald Baptiste, Herbert Hatcher, Tanya Davis, Tyronne Payne, Wanda Remmers, Erik Roberts, Melissa Machit, Bianca Yarbarough, Sebastian Bosset, Phaelon Tre, Philip Ho, Lansana Hughes, Marshall Tad Morgan, Clarence Johnson Jr., Rachel Braswell-Trigg, Danesha Simon, Monica Williams, Vivera Hawkins, and Jerald Lee. Moved, seconded, carried (Maio/Worthington; Absent - Armstrong) to close the public hearing. Housing Advisory Commission Meeting: February 21, 2002. All spoke in favor of specific projects being recommended for funding such as CIL, La Pena, the Student Housing Coop, and Rebuilding Together. Two people spoke against the recommendation not to fund the Black Repertory Group’s proposal. February 21, 2002 Housing Advisory Public Hearing Below is a list of the public speakers, the agency they supported, and final allocation. No one spoke specifically to the

2002 Annual Action Plan. Nancy Jordan – Harrison House Improvements – ESG monies were allocated for immediate repairs but no CDBG

monies because the larger project at that site was only at the very preliminary stage. Gabriela Jimenez – Lifelong Medical Care. Their proposal was funded. Alice Lowe – Rebuilding Together – Their proposal was funded. Monica Marini, Craig McCaleb, Horacio Mena, Ana Morillo – La Pena Accessibility Project. Their proposal was

funded contingent upon the City receiving fees for the Rental Housing Safety Program. Shahnaz Nazandarani, Rhonda Cohen, Dr. Joanne Crawford – A Better Way Renovation of Second Floor. Their

proposal was funded. John Wong – CIL Wheelchair Access. Their proposal was funded. Melissa Machit, Michael Raysor, Julie Keller -USCA Student Coop Seismic and Disabled Improvements. Their

proposal was funded. Wanda Remmers – Housing Rights Inc. Their proposal was funded. Clarisa Furgesen – Berkeley Emergency Food and Housing Project. Their ESG proposal was funded. Daron Collins – San Pablo Park Climbing Wall Project. This proposal was funded contingent upon the City instituting a

fee for the Rental Housing Safety Program and sufficient fees being collected to allow funding the project. Thomas Fenn – support for the following projects RCD, AHA, BHA, ECHO-Share, CIL, ICS, Christmas in

April/Rebuilding Together. All these proposals were funded. Rayford Rogers – Support for RCD. RCD’s proposal was funded. Valerie Hanton, Betty Alcutt, Sylvia W., Christina Tamano – BOSS’ Harrison House. Some ESG monies were

allocated but no CDBG monies. Herbert Hatacher - CIL. CIL’s proposal was funded. Bonnie Lewkowicz, Jill Davis – Rebuilding Together. This proposal was funded. May Browning, Grace McGill, Mae Mayfield – Berkeley Emergency Food and Housing Project (BEFHP). This

proposal received ESG monies. Nancy Hoeffer - Community Energy Services Corporation. This agency’s proposal was funded. Sean Searight, Stashon Holloway, Ted Oshea, Brandon Burns, Simone White, Charles Allensworth, Alanc Foreman, Jr.,


Mary Ann Broussard, (Out of Darkness Group presentation -Nathalie Bennet, Ravi Tanner, Cynthia Hall, Tatiana Magano, Tamara Rezay, Kymberli Daniels, Beverly Parcasio, Bettie Ann Tidwell, Pam Spikes, Kint Hunt, Mark Sapir, Linda Daris, Lee Stephen) – Black Repertory Group– Black Repertory Theatre Improvement. Their proposal was not funded because of budgetary constraints and the agency still had City monies for rehab which had not been spent.

DECEMBER 6, 2001 HOUSING ADVISORY COMMISSION PUBLIC HEARING AND DISCUSSION OF THE FOLLOWING PROPOSALS RECEIVED FOR FUNDING UNDER THE HOUSING TRUST FUND PROGRAM Commissioner Bowman recused herself from the 2517 Sacramento Street Project.

There were many persons at the meeting that did not speak but stood up in support of BOSS and Jubilee’s projects. Marissa Shaw from the Commission on Disability stated the Commission’s position, which was generally favorable about the proposed project; one commissioner had concerns about the costs of the Adeline Street Project.

Agency/Amount a. Affordable Housing Associates(AHA), Inc. $1,400,000 new construction of 38 rental units for seniors at 2517 Sacramento Street (Outback Senior Homes). Speakers Against the Project

Ania Dilmaghani Helene Hunter

Emma Haley Joyce Gressell Bernice Jery

Pauline Alessi Robert Baum

Nancy Wilson Howie Muir Marissa Shaw

Speakers in Favor of Project Ali Kashani (Executive Director of AHA, Inc.) Cynthia Prince Kevin Zwick, Project Coordinator James Cole Sunny Ree Eric Mikiten (architect of affordable housing, supported this project, plus BuiLD and Adeline Street project) Thomas Fenn

b. Building Opportunities for Self-Sufficiency (BOSS) $186,110

rehab of 6 units of transitional housing at 2111 McKinley Street (McKinley House).

Speakers in Favor of BOSS Projects Valerie Hampton, Tim Anderson Roselle Furgeson

City of Berkeley 2002 Action Plan Attachments Yolanda Davis new construction of 7 units of shared housing at 711 Harrison Street (Ursula Sherman Village). Speakers in Favor of BOSS Projects: Cindy Bernstein Betty Alcutt Nancy Johnson Marissa Shaw HAC Minutes, 12/6/01 Page 2 d. Jubilee Restoration, Inc. and Resources for Community Development (RCD) $1,252,108 new construction of 27 rental units of senior housing at 2577 San Pablo Avenue (Jubilee Senior Homes) Speakers Against Project Douglas Press Julie Dickinson Speakers in Favor of Project. Tyrone Ardsey Tanya Davis Rev. Gordon Choyce (Jubilee Director) Rashawn Fulcher Wiley Jones Curtis Robinson Bernice Williams Gordon Choyce Jr. James Coles Todd Harvey (Project staff) Lavell Spence Bernice Jerry Tyrone Ando e. BUiLD/ Resources for Community Development (RCD) $65,780 rehabilitation of 6 beds for developmentally disabled youth at 2110 7th Street. In Favor of Project:

Marissa Shaw Shae Williams, Kathy Herton, Lisa Karler, Ailene Romero (all on BUiLD Board); Dan Sawislek, RCD Director

Frank Jones Bernie? Sonia Jason-Riles Kafi Gordan

City of Berkeley 2002 Action Plan Attachments f. Resources for Community Development (RCD) $310,000 new construction of 19 units for physically disabled at 3222-24 Adeline Street (Adeline Street Apts.). Speakers Against the Project Marissa Shaw

Freddie Malvo Louis B. Scott Landon Vernon – No objections to project but concerned with easement rights

Speakers in Favor of Project

Autum Buss RCD staff


Attachment E

Office of the City Manager

COUNCIL ACTION April 16, 2002 To: Honorable Mayor and Members of the City Council From: Weldon Rucker, City Manager Subject: FUNDING RECOMMENDATIONS FOR THE FY 2002-2003 COMMUNITY DEVELOPMENT (CDBG)

PROGRAM AND EMERGENCY SHELTER GRANT (ESG) PROGRAMS RECOMMENDATION: That Council hold a public hearing and upon conclusion of the hearing adopt a resolution

1) Approving the City Manager's final funding recommendations and budgets for the CDBG and ESG Programs; 2) Authorizing the City Manager to execute contracts with agencies receiving funding and make two-month advance payments to those agencies; 3) Allocating $116,600 in Federal HOME monies to administer the HOME Program and placing $1,049,400 into the Housing Trust Fund; and

4) Authorizing the City Manager to finalize and submit the attached 2002 Annual Action Plan of the 5-year Consolidated Plan to the U.S. Department of Housing and Urban Development (HUD) which includes the applications for CDBG, ESG, and HOME Program funding, and to execute the resultant agreements.

CDBG and ESG Amounts Available and Allocation Process In FY 2002-2003, the CDBG amount available for allocation totals $4,446,655 (the CDBG entitlement amount of $4,066,000 and $380,655 in program income and carryover/recaptured funds). This equals $94,017 more than the available amount for FY2001-2002. Of the total CDBG amount, $723,104 is for the second year of the two-year contract for public services, leaving $3,723,551 still to be allocated. The ESG amount is $135,965. For FY 2002-03, the City received 33 proposals (29 CDBG and 4 ESG) with a total request of $5,891,394. The majority of requests were for funding of existing CDBG/ESG activities. There

City of Berkeley 2002 Action Plan Attachments were 12 proposals requesting funds for the first time, four of which are being recommended for funding. As in past years, the CDBG/ESG allocation process was begun in November with the issuance of a Request for Proposals (RFP). In January, the Housing Advisory Commission (HAC) heard presentations from all applicants and the HAC CDBG Subcommittee began to hold weekly meetings to discuss proposals in detail and to do site visits of community facilities requesting funding. As part of the collaborative system established last year for funding homeless activities, the Homeless Commission reviewed and made recommendations to the HAC on all ESG proposals. After holding a public hearing and considering the City Manager’s preliminary recommendations, the HAC made its final recommendations on March 7th. The HAC’s recommendations are being presented in a separate report to you tonight. CM’s Overall Funding Recommendations The City Manager’s recommendations have been developed by taking into consideration the comments and discussions at various public meetings, as well as considering how the proposals fit into the City’s overall priorities and constraints. The general strategy used in preparing the City Manager’s preliminary recommendations was to continue funding existing projects that were performing well, use the CDBG program to help address the financial problems faced by the Berkeley Housing Authority, and use remaining funds for one-time projects in view of possible cuts to the CDBG program in FY 2003-04. The constructive dialogue that occurred among HAC members and between the HAC and City staff has resulted in consensus being reached between that community body and City administration on all but a few of the funding recommendations. The HAC and the City Manager are in agreement to:

- Recommend funding ongoing City and community projects at the same level as last year with a 4% Cost-of-Living Adjustment (COLA), with a few exceptions. - Recognize the importance of assisting the Berkeley Housing Authority (BHA) by:

(1) funding the Public housing Improvements Project (#5) for $120,000, (2) switching about $70,000 for staffing the Shelter Plus Care Program from the BHA to the new CDBG program called the Homeless Prevention and Services Planning Project (#26). The Shelter Plus Care Program, which provides about 150 units of permanent housing to those who are dual-diagnosed homeless does not provide sufficient administrative monies and the BHA no longer can afford to absorb those costs.


- Continue to allocate $300,000 to the Housing Trust Fund (HTF) contained in the Housing Development and Preservation Project (#6). Although this year the HTF was allocated $577,000, $277,000 of that amount was for a switch with General Funds to allow for a one-time investment of $277,000 to the Anti-Blight Revolving Loan Program. There is no need for another $277,000 allocation to this program. - Increase loan monies for the Seniors and Disabled Homeowners Rehab Loan Program contained in the Housing Rehabilitation Program (#7) to allow more substantial rehabilitation to be undertaken and to meet federal lead containment requirements (albeit there is a small difference in amount recommended). - Increase funding for Resources for Community Development (#15) and reduce funding for the Northern California Land Trust (#13), as well as not recommending funding for A Better Way Housing Renovation Project (#17), the Black Repertory Theatre Group (#19), the Ed Roberts Campus proposal (#28), and Jubilee Restoration’s Potter House Rehab and Services (#33). -Require that all non-profit housing developers continue to participate in monthly peer assessment and technical assistance working group and undertake a self-assessment and improvement planning process.

- Use 30% of the ESG monies to continue funding existing counseling services, and allocate the remaining 70% for shelter/transitional housing improvements (as required by HUD) for improving the Dwight Way Women’s Transitional House (#30), Harrison Street (#31), and the Multi-Agency Service Center (#31).

The few areas of variance between the City Manager and the HAC recommendations are as follows:

- The Rental Housing Safety Program (RHSP) (Proposal # 10). The HAC is recommending a major cut in this program from $330,314 to $170,004 to allow funding of the following:

- $70,000 for San Pablo Park Climbing Wall (#18) - Adding another $35,000 to the $35,000 already recommended by the City Manager for improvements to A Better Way facilities (#17) - $35,809 for accessibility improvements to La Pena Cultural Center (#21) - $18,979 for additional loan monies under the City’s Seniors and Disabled Rehab Loan Program (#7) [see page 2 of Attachment A for details].


The City Manager is recommending that the RHSP be fully funded at $329,792. If the City Council approves a new fee schedule for the RHSP which would reduce the amount of CDBG funds needed by the RHSP, then the City Manager’s recommendations would allocate the “freed-up” CDBG funds from the RHSP (up to $159,788) to other projects as recommended by the HAC above. On May 21st, the City Manager will be presenting to Council a proposal to charge a $10 fee starting July 1, 2002 for each rental unit in 3+ buildings as a way to partially subsidize the RHSP. Staff has projected that approximately $175,000 will be collected for that program. In the eventuality that less than $159,788 is collected that is needed to fund the four projects above, then funding would be allocated by priority to those projects (i.e., first to the climbing wall, secondly to A Better Way Renovation, thirdly to La Pena Cultural Center, and lastly for additional Seniors and Disabled loans). Approving the HAC’s recommendations of allocating only $170,000 to the RHSP may have serious consequences ranging from staff lay-offs to the dismantling of that recently enacted program since Council cannot assume in advance of the public hearing, whether it will choose to impose fees to help pay for the program. The level of negative impacts vary dependent on: (a) non- approval of the City Manager’s proposed RHSP fees (b) Council adoption of fee schedule that is less then the $10 per unit proposed by the City Manager; (c) the amount received from fees is less than $159,788. Even if the fees schedule gets enacted, approving the HAC’s recommendation may result in staff reduction because of the timing in collection of fees. That is, they may be collected after they are needed to fully operate the program unless the General Fund fronts the monies and then is reimbursed when fees are collected.

- The Jubilee Restoration Inc., Housing Rehab and Development Project (Project #12). The City Manager recommends funding this project at $62,400 to allow Jubilee to receive the same 4% COLA as other non-profit agencies. This represents a $12,400 variance from the HAC’s recommended $50,000. The difference would be taken from loan amounts to the Seniors and Disabled Housing Rehabilitation Program (proposal # 7). Jubilee has made, and continues to make, progress in meeting the major conditions placed last year and reducing their funding would have the consequences of weakening rather than strengthening that organization. - Support Costs (Project #25). The City Manager is recommending essentially the same allocation as the current year, whereas the HAC would like to reduce this year’s allocation by $9,000 to allow the City to remain within the HUD-mandated 20% cap for Planning and Administration activities. The City


Manager is recommending that the $9,000 reduction instead be absorbed by the Program Planning and Administration Project (#27).

Submittal of the Annual Action Plan to HUD HUD requires that localities submit an Annual Action Plan for meeting the goals and objectives of its 5 year Consolidated Plan. That plan must be submitted along with the application for CDBG, ESG, and HOME Program funding. Attached is the Draft 2002-2003 Plan that provides information about use of the CDBG, ESG, and federal HOME programs as well as other activities the City is undertaking to meet its affordable housing, and social and community needs. The draft was presented at the February public hearing, and has been available for public review since then. The public will be given until May 1st for further comment. The overall document will be fine tuned and updated to reflect the City Council’s deliberations, and other comments that may be received before being submitted to HUD by the deadline of May 15, 2002. In regard to the HOME allocation, which this year is $1,166,000, as in past years, the City Manager recommends that 10% ($116,600) of HOME monies be used for program administration, and the remaining $1,049,400 be placed in the Housing Trust Fund.

FINANCIAL IMPACT: Revenues: CDBG 370-7902-331-various $4,463,011 ESG 045-7902-331-1001 135,965 HOME 040-8150-331-1016 1,266,000 Expenditures: CDBG 370-various $4,463,011 ESG 045-various 135,965 HOME 040-8151-465-9922 1,166,000 CONTACT PERSON: Stephen Barton, Interim Housing Director 981-5400 Oscar A. Sung, Manager, Program Planning, Management and Budget 981-5410 Teri Piccolo, Senior Planner 981-5420 Approved by: _(original signed byCity Manager and Director) Stephen Barton, Housing Director Housing Department

RESOLUTION NO. -N.S. APPROVING PROPOSALS FOR FUNDING UNDER THE FISCAL YEAR 2002-03 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM, THE EMERGENCY SHELTER GRANT (ESG) PROGRAM, AND FEDERAL HOME MONIES AND; AUTHORIZING THE CITY MANAGER TO SUBMIT THE ANNUAL ACTION PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) WHICH INCLUDES THE APPLICATIONS FOR CDBG, ESG, AND HOME PROGRAM FUNDING; AND TO EXECUTE THE RESULTANT AGREEMENTS FOR THE 2002-2003 CDBG, ESG AND HOME FUNDS. WHEREAS, the City of Berkeley has completed its public participation process receiving public comments on community needs and on proposals submitted for funding under the CDBG Program, and ESG program, and use of HOME monies for program administration and other affordable housing development activities; and WHEREAS, the City Manager and the Housing Advisory Commission reviewed CDBG and ESG proposals (and the Homeless Commission also reviewed ESG proposals) and have made funding recommendations; and WHEREAS, the City Council has considered the funding recommendations and special conditions for the above programs as contained in Exhibit 1 of this resolution; and WHEREAS, the City has a policy of, whenever possible, having administrative costs borne by the program being administered and wants to include use of a portion of HOME monies as part of that policy; and placing the rest of the HOME monies into the Housing Trust Fund; and WHEREAS, the Council expressed its intent to consider a ten dollar ($10.00) Rental Housing Safety Inspection fee to enable funding the second-tier projects; and WHEREAS, the Council supports the City Manager’s plan to fund A Better Way, Inc. immediately due to their scheduling requirements; and WHEREAS, the City must submit to HUD the Annual Action Plan to implement the City’s 5-year Consolidated Plan for providing affordable housing, dealing with homelessness and poverty, and community development before it can receive funds under the CDBG, ESG, HOME, and other federal programs. NOW THEREFORE, BE IT RESOLVED that the Council of the City of Berkeley approves the FY FY 2002-2003 CDBG federal entitlement and CDBG program income, the federal ESG and HOME Entitlements, as well as specific proposals recommended by the City Manager and contained in Exhibit 1, attached and made part hereto. BE IT FURTHER RESOLVED that the City Manager is authorized to execute contracts with agencies receiving funding and make two-month advance payments to those agencies under the following budget codes: CDBG (370-various) ESG (045-various) HOME (040-8151-465-9922) A record copy of said contracts and any amendments are on file in the Office of the City Clerk. BE IT FURTHER RESOLVED, that $116,400 in HOME monies be used for administration of the HOME Program and $1,049,000 be placed into the Housing Trust Fund; and BE IT FURTHER RESOLVED, that the issue of transfer of the FY 2002-2003 CDBG allocation from Adelante to the Multicultural Institute be referred to the Housing Advisory Commission for its recommendation to Council; and BE IT FURTHER RESOLVED, that the City Manager is authorized to finalize and submit the Annual Action Plan of the 5-Year Consolidated Plan to HUD and execute all documents necessary to receive the City's entitlement grants under the CDBG, ESG, and HOME programs.


2180 Milvia Street, Berkeley, CA 94704 Tel: 510.981.7000 TDD: 510.981.6903 Fax: 510.981.7099 E-mail: [email protected]

Attachment F

Housing Advisory Commission

COUNCIL ACTION April 16, 2002 To: Honorable Mayor and Members of the City Council From: Housing Advisory Commission Subject: FUNDING RECOMMENDATIONS FOR THE FY 2002-2003 COMMUNITY DEVELOPMENT BLOCK

GRANT (CDBG) PROGRAM AND EMERGENCY SHELTER GRANT (ESG) PROGRAM RECOMMENDATION: That Council approve the Housing Advisory Commission (HAC) funding recommendations for the FY 2002-2003 CDBG and ESG Program as contained in Exhibit 1 of the resolution contained in the City Manager’s Council report on the same subject. BACKGROUND: The recommendations presented in this report were adopted unanimously by the HAC. The HAC recommendations were developed after an intensive three-month review process which involved close scrutiny of all proposals by the HAC’s CDBG Subcommittee and the Commission as a whole, extensive dialogue with agencies and City staff, site visits, and considerable public comments. The HAC and the CDBG Subcommittee used the following general guidelines in reviewing proposals and making funding recommendations: ♦ Continue funding successful ongoing programs (including both City and nonprofit programs) at last year’s levels

with a 4% Cost-of-Living Adjustment (COLA), while allowing for greater increases or decreases in funding where warranted.

♦ Fund capital improvement projects that (1) meet important City needs, (2) are feasible and cost-effective, (3) leverage

other funding, and (4) are ready to begin construction. ♦ Encourage diversity in staff and clientele.

♦ Encourage inclusion of Berkeley residents on the boards of directors of funded agencies.



♦ Encourage collaboration among agencies in order to reduce costs and improve service delivery. ♦ Encourage agencies to hold fundraising events and diversify their funding sources so that they are not dependent

solely on CDBG and other governmental funding.

♦ Allocate CDBG funds for parks and City facilities as a supplement and not in lieu of spending General Fund monies.

♦ Maintain and create affordable housing as the top CDBG and City priority. Generally, the HAC recommendations are the same as the City Manager’s recommendations, with a few exceptions discussed below. Below is an explanation of some of the HAC’s funding recommendations. RENTAL HOUSING SAFETY PROGRAM The HAC is proposing a significant cut in funding for the City’s Rental Housing Safety Program (RHSP) from $306,195 to $170,004. This cut is necessary in order to restrict the overall level of CDBG funds going to City operations and administration1 to last year’s level, plus a 4% cost of living adjustment, while shifting some staff positions (such as the Shelter Plus Care Coordination) over to CDBG funding as requested by City departments. Maintaining RHSP funding at last year’s level while shifting other City staff to CDBG would mean a 15% increase for City administration; the HAC feels that such a large increase would be unfair to the nonprofit agencies, who are generally seeing only a 4% increase, and would shift too great a proportion of CDBG funding over to the City. Given the reduction, the HAC recommends that RHSP impose a fee on all rental units in the City to fund its operations. According to staff, a modest annual fee of $10 per unit would make up the difference. Shifting the program over to fee-based funding would be consistent with last year’s funding recommendation for the RHSP, which contemplated that the program would be largely self-funded by this year. Please note that, while the formal City Manager recommendations cannot presume a Council-approved fee and fund RHSP at last year’s level plus a COLA, the HAC and the City Manager are in agreement that RHSP should impose a fee and move toward greater self-sufficiency. (While we understand why the City Manager in making his recommendations was reluctant to assume the adoption of the fee, the HAC is reluctant to make any recommendation that would increase City funding beyond the 4% increase given to the nonprofit sector.) The difference between the City Manager’s and the HAC’s recommendation for the RHSP is $159,788 (the City Manager’s recommended $329,792 minus the HAC’s recommended $170,004). Should Council impose the $10 fee, the HAC and the City Manager agree as to the use of the $159,788 that would be freed up from the RHSP allocation.

NONPROFIT HOUSING DEVELOPERS

Jubilee Restoration (#12). The HAC is recommending reducing Jubilee Restoration’s funding from $60,000 to $50,000, while the City Manager proposes an increase to $62,400. Jubilee’s funding last year, while doubled from the year before, was conditioned on Jubilee improving its performance in a number of areas. While Jubilee 1 This category includes Housing Development (excluding Housing Trust Fund), Housing Rehabilitation (excluding loans), Rental Housing Safety Program, Loan Servicing, Program Planning, Homeless Prevention and Services Planning, and Relocation. This does not include Public Housing Improvements, Support Costs, or the CDBG Audit.



has made significant progress improving its board of directors and joint venturing with other developers, it has fallen short in improving its contract administration. The HAC is recommending that the $12,400 difference between the HAC recommendation and the City Manager’s recommendation instead go to fund more rehabilitation loans to elderly and disabled homeowners (Item # 7). Northern California Land Trust (NCLT) (#13). The HAC is recommending reducing NCLT’s funding from $79,567 to $50,000. It appears that the mission of NCLT seems to be moving away from housing development to co-op conversion. NCLT has failed to point to any specific new development projects it intends to pursue next year, and has not submitted a Housing Trust Fund proposal for some time, choosing instead to concentrate on finishing up the projects it has started. While the HAC understands NCLT’s decision, the HAC believes that CDBG funding of developer operations should be used primarily to support the predevelopment of new housing projects, not to finish projects that are underway and have already been funded. Resources for Community Development (RCD) (#15). The HAC is recommending a significant increase this year for RCD, from $98,818 to their full request of $141,750. This additional funding will free up funds for RCD to hire staff to coordinate and improve the provision of social services to residents of RCD’s special-needs projects. The need for enhanced services to residents of RCD projects has been an identified priority for some time.

CAPITAL IMPROVEMENT PROJECTS The HAC is proposing that the following capital improvement projects (which are included in both the Housing and the Public/Community Facilities categories) be funded at the indicated amount: Bonita House ADA Bathroom (#3): $28,000. This project will make Bonita House more accessible and serves an important need. The HAC is recommending only partial funding; the agency will need to raise funds for the remainder of the project. The agency director has indicated that the $28,000 will enable the project to seek matching funds. Public Housing Improvements (#5): $120,000. The HAC is recommending the full request. The need for rehabilitation of existing public housing units in Berkeley is clear in view of the poor condition of the units and the fact that these units are housing of last resort for Berkeley’s poor families. University Students’ Cooperative Association Accessibility Improvements (#16): $35,000. The recommended $35,000 in funding will supplement last year’s funding of $35,000 to continue USCA’s efforts to make more of their units accessible to the disabled. A Better Way Office Expansion (#17): $70,000. The HAC is recommending half of the requested funding to support the expansion of A Better Way’s office space to allow for more therapy rooms and space for interns. The HAC is impressed by the quality of the services the program provides to foster children and families, and supports expanding program services to more clients. While the recommended funds cover only a portion of the overall $140,000 requested, the HAC believes this should be sufficient along with other funds to renovate a portion of the available space or to seek matching funds for the entire project. San Pablo Park Climbing Wall (#18): $70,000. The HAC feels the climbing wall would provide a beneficial recreational opportunity for the children of South Berkeley. The recommended funding will cover most of the hard costs of installing the climbing wall, minus the contingency and administrative charges. Lifelong Medical Care/West Berkeley Family Practice Expansion (#22): $75,000. The HAC is recommending close to full funding of this project. CDBG funding will provide most of the remaining funding needed for this project, which will allow this valuable program to serve many more clients.



Rebuilding Together/Community Facilities (#14): $20,000. The HAC is recommending funding at close to the requested level because Rebuilding Together has been successful in leveraging other funding, volunteer work, and in-kind support to carry out its rehabilitation projects. La Pena Improvements (#21): $35,809. The HAC is recommending this funding in view of the value of La Pena as a cultural asset to the community and the need to make the facility accessible to the disabled. However, the HAC is concerned that the recommending funding is only a small part (less than 20%) of the funding necessary to install the bathroom improvements, with no firm commitments from other funding sources for this work. The funding should be contingent on the agency making progress in identifying matching sources of funding for the bathroom work within six months. The HAC is recommending that the following capital improvements not be funded this year: A Better Way Housing Renovation (#1). While the HAC supports the concept of providing housing for foster teens, the HAC believes that it was not good policy to use CDBG funds to support projects that displace existing tenants. The HAC also feels that the budget for this project is unrealistic, and that the agency should consider working with an experienced housing developer. Black Repertory Group Theater Improvements (#19). The HAC is not recommending funding this year because there is still $20,000 unspent from a $50,000 CDBG allocation approved years ago for the Theater, and this should be spent before any new money is allocated. Also, some requested items, such as the new sound system, are apparently not eligible for community facilities funds. The HAC recommends that any future funding request prioritize which work is most needed. Work related to health and safety should be given first priority. The HAC believes that the agency should do its own fundraising to match any CDBG funding of Theater improvements. The agency needs to develop a strong events schedule that embraces the Berkeley arts community. BOSS Harrison House Community Center (#20). While the HAC fully supports the community center concept, this project does not seem to be ready to go at this time. No other funding has been committed. The HAC would consider future funding requests at a lesser amount when other funding has been identified. Jubilee Potter’s House Rehabilitation (#33). This program would convert an existing vacant single-family house to program use. In view of the importance of preserving the City’s housing stock, the HAC does not approve of removing this house from possible residential use to accommodate the program. HAC members also question whether the program is well thought-out.

PLANNING AND ADMINISTRATION Support costs (#25). The HAC believes that as a general rule the contribution for City support costs should not exceed 5% of total CDBG funds. The HAC is recommending a lesser allocation of $230,000 this year. This would keep support costs close to the 5% limit. The $9,000 difference between the HAC recommendation and the City Manager’s recommendation of $239,000 should instead go to the Housing Department for Program Planning (# 27). Ed Roberts Campus (#28). Funding this request was not possible, given HUD’s cap on funding for planning and administration. The HAC is encouraged by the progress made on this project, and believes the Council should consider funding this request out of the General Fund.



CONTACT PERSON: Daniel Rossi, Chairperson, 559-8751 Oscar A. Sung, Secretary, 981-5410 Teri Piccolo, Senior Planner, 981-5420 Approved by: (original signed Daniel Rossi, Chairperson Housing Advisory Commission ref: g:\cd-ppmb\council\hacrecommend02.doc

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