Fiscal Year 2005 Proposed Budget

DEPARTMENT OF COMMUNITY PLANNING, HOUSING AND DEVELOPMENT
COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET SUMMARY

MISSION STATEMENT: To improve the housing, neighborhood and economic conditions of Arlington County's low and moderate income residents by effectively administering the Community Development Block Grant (CDBG) program.

FY 2005 PRIORITIES: The Community Development Block Grant program priorities are:

• To provide adequate housing, broaden housing choices and minimize displacement for all persons, especially low and moderate income persons, minorities and persons with mental and physical disabilities.

• To plan and implement an array of housing, neighborhood improvement and special public service programs as part of comprehensive strategies for revitalization of the Community Development Neighborhood Strategy Areas (NSAs) of Nauck, Columbia Heights West, Long Branch Creek (formerly Arna Valley), and Buckingham.

• To provide economic opportunities for low and moderate income persons.

• To undertake special outreach and citizen involvement activities to ensure the participation of Arlington's low and moderate income and multi-cultural communities in the annual CDBG proposal process and in CDBG-funded programs.

• To implement the ongoing consolidated planning process for HUD entitlement programs.

PRINCIPAL PROGRAMS: CDBG-funded staff administer the CDBG program efficiently and effectively by:

• Providing neighborhood planning and developing, coordinating, implementing and evaluating improvement activities in the Nauck, Columbia Heights West, Long Branch Creek, and Buckingham NSAs.

• Providing technical assistance, monitoring and evaluation for agencies and non-profit organizations implementing CDBG funded activities, including assisting subrecipients to develop and monitor performance measures.

• Developing the annual CDBG program, including soliciting proposals, coordinating interdepartmental review, evaluating proposals, and developing program and funding recommendations.

• Administering the CDBG program through financial management, activities to ensure compliance with federal regulations (such as environmental assessments, labor standards, relocation, etc.) and the development of quarterly and annual reports to HUD.

• Providing information and technical assistance to citizens participating in the planning, implementation or evaluation of the CDBG program; including staff support for the Community Development Citizens Advisory Committee.

• Assisting in the development of plans for affordable housing and other small area/neighborhood improvement efforts.

SIGNIFICANT PROGRAM HIGHLIGHTS:

The FY 2005 CDBG program budget includes an estimated $2,248,000 in grant funds from the U.S. Department of Housing and Urban Development for Arlington and the City of Falls Church and an estimated $1,600,000 of program income (from loan repayments and subrecipient revolving fund activity). The City of Falls Church will receive $105,900 under a Cooperation Agreement with the County. The CDBG program for FY 2005, developed from proposals received in September 2003, will address the above priorities through a variety of programs, for which detailed descriptions are provided on the following pages. Some activities are implemented directly by County staff, others by subrecipients.

The following criteria guided development of the FY 2005 CDBG recommendations: 1) proposal responds to a County Board CDBG priority of affordable housing development and housing support services, economic development and job training, or is targeted to NSAs; 2) proposal responds to County Board focus on services that ensure the development of a safe, healthy and nurturing environment for children, youth, and their families; 3) proposal responds to needs identified in the Seven-Year Consolidated Plan, including Comprehensive Neighborhood Revitalization Plans for Nauck, Columbia Heights West and Buckingham NSAs; 4) success of prior funded projects in meeting established performance outcomes; 5) length of time project has received CDBG funding and availability of other potential funding sources, i.e., General Fund, Arlington Affordable Housing Investment Fund, or foundations; and 6) extent to which the community was involved in proposal development.

SIGNIFICANT BUDGET CHANGES:

• Decreased personnel costs ($79,195) include normal salary adjustments and also reflect the reclassification of a former Division Chief position to a planner position and a technical correction for 1.0 FTE transferred to the Department of Economic Development following the re-alignment of the Housing Division from the Department of Economic Development back to the Department of Community Planning, Housing and Development.

• The non-personnel is increased $84,195 to balance within the grant allocation $2,248,000.

The above measures are aggregated for similar CD-funded programs and outcome performance measures are available for each individual program. Activities are implemented by County staff and subrecipients.

• Single-family households are assisted through the AHC, Inc. Home Improvement Program and RPJ Rebuilding Together Program. Satisfaction is measured by surveying program participants.

• Multi-family projects in FY 2003 include acquisition by AHC, Inc., of 465 units at Gates of Arlington and APAH's completion of Lorcom Arms (38 units); and acquisition of Columbia Grove (210). Expected FY 2004 includes construction of AHC's Hunter's Park, 74 units of affordable elderly housing, and APAH's completion of Cameron Commons in Highview Park (5 units). Although not usually used to fund individual projects, CDBG funds support some of the housing development costs of non-profit sponsors.

• Job placement success rate measures the percentage of clients who remain employed 90 days after placement.

• Several customer measures are new. Data collection will commence in FY 2005.

FUTURE BUDGET CONSIDERATIONS:

• CDBG grant amount may decline as CDBG formula changes are under consideration, impacting the County's ability to meet affordable housing goals, implement NSA Plans and administer the program.

* The fund statement assumes that all revenues will be spent in the current year.