Narrative Responses to Action Plan Questions

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1 Narrative Responses to Action Plan Questions COMMUNITY DEVELOPMENT Tab 7. Community Development contains responses to HUD s questions about Community Development and Antipoverty Strategy as follows: 1. Identify the jurisdiction's priority non-housing community development needs eligible for assistance by CDBG eligibility category specified in the Community Development Needs Table (formerly Table 2B), public facilities, public improvements, public services and economic development. 2. Identify specific long-term and short-term community development objectives (including economic development activities that create jobs), developed in accordance with the statutory goals described in section 24 CFR 91.1 and the primary objective of the CDBG program to provide decent housing and a suitable living environment and expand economic opportunities, principally for low- and moderate-income persons. ACTION PLAN COMMUNITY DEVELOPMENT RESPONSE The City will continue to commit CDBG funds for provision of a wide variety of critical public services throughout the City, through implementation of a safety net of essential programs for the working poor, youth at risk, the disabled, seniors and the frail elderly, day laborers, and victims of domestic abuse, among other special needs populations. This year s Annual Plan will again emphasize the use of CDBG resources to promote family economic stability and self-sufficiency through coordinated and targeted public services. Public Services/Community Development Organizations (CBDO) The City plans to allocate $14,970,170 in public services and $20,846,906 in Special Activities by Community Based Development Organizations (CBDOs) for the 37 th Program Year. Special activities by CBDOs are projects that are specifically designed to increase economic opportunities through job training and placement and other support services, including, but not limited to peer support groups, counseling, child care, transportation, and other similar services. CBDOs are organizations that primarily engage in community development activities that address the needs of low- and moderate- income persons in a defined geographic area of the City. CBDOs must also maintain a governing body that is composed of at least 51% low- and moderate-income persons. FamilySource System During the 35 th Year, the City completed its redesign of its Human Services Delivery System (HSDS) and launched the new FamilySource System. The FamilySource System funds 21 facilities strategically located in areas of the City where poverty is concentrated. The FamilySource System delivers services designed to assist low-income families achieve two outcomes: 1) increase household income and economic resources and 2) increase youth academic achievement. Implementing a two-generation anti-poverty strategy, the FamilySource System promotes the economic well-being of parents, while ensuring that their children are healthy, safe, and succeeding in school. 1

2 Core services include case management, pre-employment and employment support services, financial literacy, child care, parenting classes, computer literacy, and youth services such as tutoring and mentorship. FamilySource Centers also conduct multibenefit screenings to assist low-income families access public benefits for which they are eligible. Benefits that low-income families qualify for include earned income tax credits (EITC), nutritional benefits such as food stamps and WIC, subsidized health insurance, low cost auto insurance, and utilities discount programs. All FamilySource Centers partner with the City s Workforce Development Program to assist low-income residents obtain any necessary job training and secure long-term employment. Funding for the FamilySource System is a combination of CDBG Public Services and CBDO funds, Community Services Block Grant (CSBG) and CSBG-American Recovery and Reinvestment Act (ARRA) dollars. CDBG funding provided under the Consolidated Plan, when combined with leveraged CSBG and CSBG-ARRA dollars, provides more than $18 million in annual support. The FamilySource Centers are complemented by additional CDBG-funded City Wide projects that focus on partnerships with schools, increasing access to post-secondary education, job training, and specially targeted youth development activities: Cash for College Expands awareness of financial opportunities among City students and their families. Clean and Green Provides training and employment to youth ages years old. Fuego Tech Fire Rangers - Provides at-risk youth with structured job training in fire suppression to enhance their self-esteem, promote academic retention and matriculation, and placement in the National Forest Apprenticeship Program. GRYD Summer Night Lights Provides low- to moderate-income residents residing in gang-impacted areas of the City with work experience and a safe environment for recreational, athletic, and educational activities during peak times for violence. Hire LA Youth Employment Provides work readiness training and places individuals ages in private-sector jobs. LA s BEST - Provides after school enrichment, education, and recreation activities at selected LAUSD elementary schools. PALS (Police Activities League) After School Program Prevention Services for Youth at Risk Provides prevention classes to 4 th graders in 14 elementary schools and 6 th graders in three middle schools, parenting classes, teen classes, and community clean up services. Project SAVE Provides employment training and employment support services as well as real world work experience through community clean-up activities. Rita Walters Learning Complex Provides access to employment development activities, financial literacy and job readiness activities, family and individual counseling and an alternative high school for youth ages River Rangers Youth corps members will provide clean-up services at various sites along the Glendale Narrows stretch of the Los Angeles River. Youth Opportunities High School-Watts Provides case management and supportive services for youth ages to encourage youth to stay in school, obtain a GED, or enroll in job training programs. 2

3 Youth Recreation and Nutrition Program Provides school age youth with after school recreation activities, off-track nutrition and enrichment programs, and specialized sports academy programs. Aging Services Delivery System The Aging Services Delivery System (ASDS) provides seniors with programs that address housing, adult day care, caregiving, and emergency medical and safety assistance issues. The ASDS consists of the Adult Day Support Centers, Alternative Living for the Aging, and the Emergency Alert Response System programs. The Adult Day Support Center provides caregivers and seniors with adult day care so that family members can have respite, and pursue employment, education and economic opportunities. Adult day care services include family counseling, care management, therapy, financial planning, nutrition and health education, and recreational activities. The Alternative Living for the Aging program provides housing options to seniors through counseling, referrals, and access to a housing database that listing various housing options for seniors. The Emergency Alert Response System (EARS) program provides homebound and/or frail seniors the opportunity to remain in their homes by allowing them to summon the police, fire, and medical units at the push of a button. CDBG funds are leveraged with the Older Americans Act funding to support the Aging Services Delivery System. Domestic Violence Shelter Operations Program The Domestic Violence Shelter Operations Program (DVSO) provides safe and secure emergency and transitional shelter, case management and related supportive services to domestic violence survivors and their children. Services include assisting persons in crisis situations by providing services such as individual and family counseling, job skill development, job search activities, income management, and opportunities for education and improved literacy to ensure clients and their families are emotionally and economically self-sufficient. Day Laborer Program With unemployment rates at nearly 13%, day laborer sites are experiencing an influx of unemployed city residents, especially those working in the field of construction, Day Laborer sites provide job seekers with water, coffee, bread, lavatories, waste disposals, and shaded seating areas. The Day Laborer Program is supported with CDBG and the City s General Fund. Please refer to the individual Project Summary sheets under Tab 11 of this document for additional information on the above project activities. 3

4 Economic Development Framework The City s Economic Development Strategy emphasizes the need for partnerships with both community-based organizations and the private sector to identify and serve low- and moderate-income communities and to develop strategies to effect social and economic change. The Community Development Department (CDD) targets its goals by focusing its efforts and resources towards activities that: Provide low- and moderate-income persons with the tools necessary to achieve selfsufficiency and to end dependence on social programs Facilitate community and economic development activities that lead to revitalization of distressed communities that are experiencing business disinvestment To meet these goals, CDD will continue to emphasize provision of technical assistance and financial incentive programs for businesses to assure that existing and emerging micro-enterprises, medium size businesses, and growth industries are identified, attracted to and/or retained in Los Angeles, particularly those in impoverished and/or economically and physically blighted areas. Several City communities have been designated as California State and Federal Empowerment Zones, Federal Renewal Communities, and CRA Redevelopment Project Areas. All promote business development and economic investment in Los Angeles communities. The Economic Development Strategy is fully consistent with the Mayor s goal expressed through the Consolidated Plan Priority Job Creation and Securing Our Economic Future. Underpinning the Strategy are three inter-related elements: strong and diverse economic growth; social inclusion for all residents; and fundamental improvements in management and use of limited resources. Specifically, the City s Economic Development Strategy goals will continue to be: increase employment opportunities for all residents of Los Angeles; create quality jobs with a living wage; target growth industries for expansion, retention and recruitment; develop strong collaborative partnerships to carry out CDD s mission to create jobs and strengthen families; establish educational programs that are aligned with industry needs; strengthen the City s distribution and transportation facilities; build the capacity of non-profits for economic development; and promote neighborhood development and facility improvement The Community Development Department, Economic Development Division (EDD) oversees roughly $650 million in financing capacity; [rlh1]resources are used as incentives for development efforts in low to moderate income areas of the City. 4

5 Services include non-profit bond financing, business advisory services for small and micro-businesses, and tax incentives that further encourage business development. Target areas are identified at the state and federal level through analysis of census tracts, labor and employment data, and income distribution. EDD offers lending programs specifically targeted for commercial and industrial development, business technical assistance, and federal and state business incentive zones. HUD Section 108 Loan Guarantee Program Section 108 loans fill financing gaps for companies or developers seeking to acquire or build on property for industrial or commercial projects. Section 108 loans are typically only for a maximum of 30% of the project cost so that these funds leverage at least 70% private capital. As commercial lenders continue to be reluctant to finance capital projects, borrowers have sought out CDD as a lender. CDD finance staff as a result is more flexible and creative in their approach to Section 108 lending, while mindful of federal regulations. The Pacoima Plaza project was funded through the Section 108 program for $7.4 million to assist in completion. This was the first major retail project in 20 years and will provide 200 new jobs. Other projects underway include the La Cienega-Jefferson Office Towers, the Slauson-Central Shopping Center, and the Calko Steel projects in the old Goodyear Tract in South Los Angeles. Other economic development tools include: Los Angeles Industrial Development Authority (IDA) Both taxable and non-taxable bonds are issued by the City through the IDA for manufacturing projects. Non-Profit Bonds Small Business Loan Program This program, funded with a Section 108 loan to the Valley Economic Development Corporation (VEDC), will provide small loans to businesses throughout the City. State and Federal Business Tax Incentive and Enterprise Zones - The East Los Angeles Enterprise Zone, co-managed with Los Angeles County, provides business incentives to all of East Los Angeles and Atwater Village. Empowerment Zone and Renewal Community These business incentive zones provide an impetus for businesses to locate within our inner-city communities, as well as valuable tax reductions and city incentives for existing businesses. Los Angeles Business Assistance Program (LABAP) Micro-Enterprise/Entrepreneur Centers, Retail, and Growth Industry Business Assistance Centers. Programs will now be combined in the new Business Source Program, covered in the next section. PY Economic Development Project Activities economic development activities will continue to focus on projects that promote job creation and assist in local economic recovery. For the 37 th Program Year, the City will increase its percentage of CDBG funds for economic development activities from 10% in the 36 th Program Year to 14% in the 37 th Program Year. Several economic development project activities featured in the 37 th include: PY Action Plan 5

6 Los Angeles CleanTech Corridor - Overview Investment in the Los Angeles CleanTech Corridor is on the forefront of the City s investment in economic development activities. The Los Angeles CleanTech Corridor extends four miles along the Los Angeles River from Chinatown south to the Clean Tech Manufacturing Center on Spring St. The Corridor will be composed of clusters of clean technology and green-focused companies near the Los Angeles River, and is the focal point of the City s strategy to become the top clean technology manufacturing area in the nation. Investment in the Los Angeles CleanTech Corridor also positions the City to create and retain jobs that promote environmental sustainability for tomorrow s economy. Clean Tech Business Incubator Project The 37th Program Year includes continued funding for the Clean Tech Business Incubator Project. Funds will be used to lease 20,000 square feet of space from the Los Angeles Department of Water and Power (DWP), and will pay for building/tenant improvements necessary to bring the property in compliance with applicable building code requirements. This site will house the CleanTech Business Incubator, which will provide flexible office space for venture firms and start-ups. Los Angeles Port Tech Business Incubator Project The San Pedro Bay Port Technologies Development Center, Inc. (PortTech LA) is a non-profit business incubator and technology commercialization center founded by the Chambers of Commerce of San Pedro and Wilmington in cooperation with the City and Port of Los Angeles. Its mission is to create jobs by finding, attracting, incubating, and mentoring companies with advanced technologies that will enable the Port to meet its environmental, energy, security, and logistics goals. PortTech is being recommended for $1.5 million in CDBG funding for the immediate purpose of purchasing and renovating a suitable facility in downtown San Pedro to provide office space for incubating companies. The Center has already secured nearly $1 million in funds through a variety of public and private sources; these funds will be used to hire staff, hold events, and to recruit a network of 30 start-up companies. CDBG funding will allow PortTech to provide office space and services for 15 companies at a time, greatly enhancing their chances of succeeding in a competitive marketplace. It s estimated that as many as 300 jobs could be created over a five-year period with the benefit of CDBG funding. Los Angeles Business Source Program (Formerly the Los Angeles Business Assistance Program) The City s Los Angeles Business Assistance Program (LABAP) is going through a substantial redesign with the goal of increasing the array and efficiency of services available to small business in the City of Los Angeles. LABAP activities will be consolidated in the 37 th Program Year into the new Business Source Program. Business Source has been designed to help small businesses start, operate and expand in Los Angeles. The program will be operated in partnership with several community-based organizations throughout the City that have expertise in providing free or low cost assistance to small businesses. 6

7 The key services provided will be business courses, financing assistance, connecting to government procurement opportunities, available incentives, and recruiting/training employees. The program s primary goal is job creation through helping businesses grow, secure financing, and work more efficiently with the City. Several catalytic projects specifically designed to create jobs and revitalize business in the City are included in the 37 th PY Action Plan: Gensler Business Attraction Project Gensler is an international architectural firm that is relocating to downtown Los Angeles from Santa Monica. The firm will bring 250 employees to the City and plans to grow to 360 employees over a 5-year period. They will partner with the City s WorkSource Centers to recruit low- to moderate-income residents for available positions. The funds will be used to assist the company in their tenant improvements at their new location. District Square Retail Project CDBG funding in the amount of $1 million is proposed for the 6.5-acre District Square Retail project, located along the Crenshaw Commercial Corridor. Funding will be used for development of the site as a two-story retail center. Marlton Square Acquisition Fund CDBG funding in the amount of $1.5 million is proposed to assist in redevelopment of over 8 acres of severely deteriorated commercial parcels along Martin Luther King Blvd. and Marlton Avenue. Six of the eight parcels constituting the project area were previously acquired or are now in escrow, utilizing HUD Section 108 Loan Guarantee funds, CDBG, Economic Development Initiative (EDI) funds. One additional parcel will be purchased with prior allocations. $1.3 million in CDBG funds will be used to acquire the last parcel, work will begin on clearance of the site, relocation of existing businesses and selection of a developer. Wilmington Industrial Tract Expansion - CDBG funding in the amount of $500,000 is proposed for expansion of access to industrial parcels along Banning and F Streets in the Wilmington Industrial Park, immediately adjacent to the Port of Los Angeles. Streets are currently unimproved, restricting access and marketability of parcels for industrial and logistics uses. Engineering studies are funded and nearly completed, and final roadway design drawings are underway. The CDBG funds would provide all funding needed to accelerate reconstruction of these streets to industry standards, and bring these blocks and parcels to productive use in support Port and overall industrial activities in the Wilmington community, which is characterized by a significant amount of blight and disinvestment. PY Neighborhood Improvement Projects (including Public Facilities and Improvements) The CDD Neighborhood Development Section (ND) of the Economic Development Division coordinates CDBG-funded City- and non-profit-owned facility projects on behalf of City departments and non-profit agencies. The following project schedule is an estimate only, and subject to change; projects may span beyond the 37 th PY time frame. Other sources of funding than CDBG may be used. CDBG funds are used to defray the salaries and related costs for ND staff involved in acquisition, construction and renovation of facilities. 7

8 Projects proposed for funding through CDBG, Section 108 Loan Guarantee, or other HUD programs may not consist of facility repair and/or maintenance. Neighborhood Development or the City Bureau of Contract Administration (BCA) is responsible for labor standards and payroll compliance depending on funding availability. The Neighborhood Development Unit does not select projects; this is accomplished through the Action Plan application, reprogramming and Project Expenditure Plan (PEP) processes. ND's operations are described in related Action Plan applications and PEPs. Any funding for City-owned facility improvements included in ND s Action Plan application for program delivery must also go through the PEP process. Projects promoting expansion of a facility for increasing public service capacity by increasing the number of clients served, for better utilization of space, conversion of a City-owned facility for delivery of eligible public services or small business services, capital improvements to a City-owned structure or leased to a nonprofit, energy efficiency improvements, or correction of City code violations are examples of activities eligible under the City s Neighborhood Development Program. The City of Los Angeles is proposing allocation of $8.5 million in CDBG funds in the proposed budget for a variety of exciting and diverse neighborhood improvement projects with significant potential for community impact. Proposed Projects include: Boyle Heights Neighborhood City Hall (BHNCH) The BHNCH project is a continuation of an on-going renovation of a City-owned building. The facility will house multiple city departments and community non-profits that will provide direct services to the residents of Boyle Heights. CDBG funding will be used to complete the necessary tenant improvements required to operate a City-managed FamilySource Center that will provide services to low-and moderate-income residents of Boyle Heights. Improvements include: build-out of classroom space, computer labs, office space, counseling rooms, and other activities. City Trees The City Trees project provides greening to low-income areas, which facilitates healthier air quality, while training youth and providing them with work experience. Code Enforcement (Citywide PACE) - The PACE (Pro-Active Code Enforcement) program is a successful multi-agency collaboration between the City Attorney and the Department of Building and Safety to revitalize neighborhoods, increase public safety, reduce crime, and resolve code violations in low-income residential areas. Substandard single-family residences, hazardous or illegal construction, trash dumping, and vacant buildings are high priorities for the program. East Hollywood Gardening Achievement Center - The project is part of the East Hollywood Gardening Achievement Center. This phase of the project is to acquire parcels totaling about half an acre in area to be the future site of a community garden. The area will also be landscaped. Fletcher Drive (Glassell Park) Streetscape - Construction of new decorative and landscaped median islands, new ADA access ramps, new curb extensions, new tree wells, reconstruction of sidewalks, curbs and gutters, installation of stamped crosswalks, tree removals, tree plantings and deep root pruning as needed in a primarily low/mod area residential block group. 8

9 Fulton and Vanowen Pocket Park - CDBG funds will be used to develop a vacant lot into a pocket park. Los Angeles River and Aliso Creek Confluence/Reseda River Loop Project - This project will be one of the first park and trail projects along the Los Angeles River in the San Fernando Valley. The park will provide much-needed green space, recreation, community revitalization amenities, a safer alternative route to schools and other community institutions, and create an outdoor shaded respite from the increasingly hot summer temperatures. CDBG funds will be used for park and trail amenities, including tree planting, native habitat establishment, community gathering spaces (benches, tables, an outdoor classroom), educational kiosks, landscaping, shade structures, gateways, and signage. Sun Valley Lighting CDBG funds will be used for design and construction of 30 street lights in an underserved, primarily low- and moderate-income residential area of Sun Valley. CDBG funds will pay for installation and construction. Neighborhood Development Strategic Plan Additional projects have been identified on a tentative basis, subject to available funding and staffing: (PY 37) ACTION PLAN CDD NEIGHBORHOOD DEVELOPMENT ESTIMATED PROJECT SCHEDULE NEIGHBORHOOD DEVELOPMENT SECTION Watts Municipal Building Bradley Milken FamilySource Center Central City neighborhood Partners Cypress Park FamilySource Center Lucille Beserra Roybal FamilySource Center Pacoima FamilySource Center Tom Bradley FamilySource Center Boyle Heights Technology Center Vera Davis Center Westlake Theater 1. Describe the actions that will take place during the next year to reduce the number of poverty level families ANTIPOVERTY STRATEGY During the 35 th Program year, the City of Los Angeles completed the redesign of the Human Services Delivery System (HSDS) and launched the new FamilySource System which will be used to implement a two-generational antipoverty strategy. This strategy focuses on achieving two primary outcomes: 1) increased family income and economic resources and 2) increased youth academic achievement. Based on a one-stop consortium-based model, the City s FamilySource System funds 21 FamilySource Centers that are strategically located in the areas of the City were there is the highest concentration of poverty. FamilySource Centers provides a continuum of core services including multi-benefit screening, case management, preemployment/employment support, child-care, parenting classes, financial literacy, adult 9

10 education, computer literacy, legal services, and youth services. The FamilySource System provides incentives for strengthened collaboration with critical partners, including improved linkages with the City s Workforce Development System, the ASDS, DVSO and Gang Reduction and Youth Development (GRYD) programs to address the obstacles low-income residents face, while reducing duplication of effort and maximizing of resources. Through an online multi-benefit screening tool, One-e-App, FamilySource service providers can refer and enroll clients in many undersubscribed programs for which they are eligible. This includes Food Stamps, low-income automobile insurance, and utilities discount programs. Additionally, each FamilySource Center will participate in the Greater Los Angeles Earned Income Tax Credit (EITC) Campaign Partnership and Bank on LA program. FamilySource Centers will either operate as a Volunteer Income Tax Assistance (VITA) site or partner with a local VITA site in their area to provide free tax preparation and assist residents in filing for up to $4,700 in EITC. FamilySource program staff will also provide low-income residents with financial literacy classes that will strengthen their budgeting skills and encourage an asset-based approach in combating poverty. The Bank on LA program will be critical in reinforcing asset building and management by increasing access to mainstream banking institutions through affordable banking services. As part of a long-term anti-poverty strategy, FamilySource Centers also provide a range of youth services that are designed to increase youth academic achievement and produce an educated workforce. Youth services include tutoring, mentoring, youth leadership, college access, and recreational and cultural activities. Youth academic achievement will be measured by one or more of the following indicators: improved grades, reading/math skills and/or increased school attendance; grade level advancement; or academic enrollment for out-of-school youth. These programs will also be complemented by a range of targeted job training programs supported with CDBG and WIA funds. The Los Angeles Housing Department (LAHD) and the Housing Authority of the City of Los Angeles (HACLA) are also critical in breaking the poverty cycle. LAHD supports the development of new affordable housing; enforces state health and safety codes and tenant protection ordinances; works to preserve the City s existing housing stock; enables low- and moderate-income residents to achieve home ownership; develops new policies and programs to address the City s housing needs; removes barriers to affordable housing due to discrimination and predatory lending; and other factors that prohibit poor residents from obtaining decent, affordable housing. HACLA provides housing to thousands of extremely low-income City residents, and Section 8 rental assistance to over 50,000 households who would otherwise be at risk of homelessness. The City will continue to fully support the mandate of the federal McKinney/Vento Act by dedicating both CDBG and ESG funds to provision of supportive services and a variety of housing types for homeless individuals and families, and those at risk of becoming homeless. In 2008, the Los Angeles Continuum of Care (CoC) received $73.4 million, its largest award to date. McKinney-Vento Homeless Assistance Act programs include competitive funding for the Supportive Housing Program (SHP) and the Shelter Plus Care Program, for which LAHSA applies on behalf of the CoC. This award also includes formula funding from the Emergency Shelter Grant Program (ESG), which is distributed to local entitlement communities that submit a consolidated plan for use of those funds. LAHSA administers ESG funds for both the City and the County of Los Angeles. 10

11 The LAHSA Commission strongly supported the reauthorization of the McKinney- Vento Homeless Assistance Act in 2009 to make HUD s homeless assistance more flexible, performance-based, and accountable, and to update the Act to prioritize programming and promote best practices to accomplish the goals of preventing and ending homelessness. Many of the McKinney-Vento reauthorization provisions will have implications for future programming in Los Angeles. LAHSA staff is studying the legislation to produce a comprehensive analysis of the likely impacts and recommendations for the development of regulations for the new program and will develop future strategies based on these findings. Please see the Consolidated Plan Anti-Poverty Strategy for a full exposition of the City s strategies to ameliorate poverty over the next year and the remaining years of the Consolidated Planning period. 11

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