Title
Public Hearing to Consider Approving the Housing and Community Development Needs Statement for the Community Development Block Grant (CDBG) Annual Plan for Fiscal Year 2019-20. (Housing 236)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The purpose of the public hearing is to consider approving the Housing and Community Development Needs Statement to be used to prepare the Fiscal Year (FY) 2019-20 Community Development Block Grant (CDBG) Annual Plan, which will be presented to City Council in May 2019. As an entitlement recipient of CDBG funds, the City of Alameda receives approximately $1 million per year from the U.S. Department of Housing and Urban Development (HUD). CDBG regulations require that an annual public hearing be held to obtain views on current housing and community development needs relating to the Action Plan. The Five-Year Consolidated Plan identified the following priorities: affordable housing, homelessness, other special needs, and non-housing community development (public services, economic development, and public facilities).
BACKGROUND
The City of Alameda is an entitlement recipient of CDBG funds from HUD. Each year the City receives an entitlement allocation of approximately $1 million of CDBG funding. CDBG funds finance programs and activities that benefit low- and moderate-income persons and households while helping prevent or eliminate slums and blight. To receive CDBG funding, the City has to submit to HUD an Action Plan detailing the programs, activities, and resources to address the housing and community development needs identified in the Five-Year Consolidated Plan.
CDBG regulations require that an annual public hearing be held to obtain views on current housing and community development needs relating to the Action Plan. This hearing provides an opportunity for input for FY 2019-20. The Action Plan will identify local priorities and uses of CDBG and HOME funds to address needs in eligible categories. Eligible activities include housing development, property acquisition and rehabilitation, public facility capital improvements, public services, accessibility improvements, economic development, as well as planning and administrative activities. At least 70 percent of CDBG funds must benefit low- and moderate-income residents or neighborhoods. In addition, the total amount of CDBG funds obligated for public services activities must not exceed 15 percent of the annual entitlement allocation and prior year’s program income.
All citizen participation requirements have been met for the public hearing, with publication of the notice in the November 30, 2018 Alameda Journal, as well as in Chinese, Vietnamese, Tagalog and Spanish-language newspapers. Accommodations are available for non-English speaking residents and persons with disabilities to participate in the public comment process.
DISCUSSION
The Five-Year Consolidated Plan is the foundation for identifying the priority housing and community development needs of the community and is used to guide the development of Annual Action Plans during the five-year period covering FY 2015-16 through FY 2019-20. Priority needs in the Consolidated Plan include the following:
• Preserving and increasing affordable housing and supportive services;
• Reducing housing discrimination;
• Preventing and addressing homelessness; and
• Addressing non-housing community development needs such as neighborhood improvements, public services, accessibility improvements and economic development.
To support the City’s effort to identify the social service needs of the community, the Social Service Human Relations Board (SSHRB) held a meeting on November 29, 2018, and prepared a statement to support the staff recommendation for the FY 2019-20 Needs Statement (Exhibit 1).
The approved Needs Statement will be included in the upcoming CDBG FY 2019-20 Notice of Funding Availability (NOFA)/Request for Proposals (RFP). The proposed RFP schedule is included in Exhibit 2 for reference only.
Alameda’s FY 2019-20 Action Plan will identify local priorities and uses of CDBG funds to address needs in eligible categories. As noted above, eligible activities include housing development, property acquisition and rehabilitation, public facilities improvements, accessibility improvements, economic development, and planning and administrative activities. At least 70 percent of CDBG funds must benefit low- and moderate-income residents or neighborhoods. A limited amount of funds may also be used to eliminate blight in eligible areas. Exhibit 3 includes the objectives identified to meet the following priorities: affordable housing, homelessness, other special needs, and non-housing community development, such as public services, economic development, and public facilities and infrastructure.
Staff is recommending that the City Council approve the Needs Objectives as shown in Exhibit 3. The approved Needs Objectives will inform staff’s funding recommendations to the City Council. The recommended public service funding will be part of the FY 2019-20 Action Plan to be approved by the City Council in May 2019.
In addition to the above, this public hearing will serve as formal notice that an administrative correction will be made to the current year’s Action Plan. The FY 2018-19 Action Plan lists the unduplicated client goal for Eden Information & Referral as 1400. This is an error. It was Eden I&R’s intent to list 1400 for the expected number of calls from Alameda residents and 350 as the unduplicated client goal.
FINANCIAL IMPACT
There is no financial impact from conducting a public hearing to determine FY 2019-20 housing and community development needs. Although the CDBG entitlement allocations for FY 2019-20 have not yet been published, staff anticipates receiving approximately $1,100,000 in Entitlement Funds and $150,000 of Program Income. Program Income is generated from repayments of principal and interest on the CDBG loans.
ENVIRONMENTAL REVIEW
Execution of related agreements and final funding commitments are subject to satisfactory environmental clearance under 24 CFR Part 58.
RECOMMENDATION
Approve the housing and community development Needs and Objectives for the CDBG Annual Plan for FY 2019-20 (Exhibit 3).
Respectfully submitted,
Debbie Potter, Base Reuse and Community Development Director
By:
Lisa Fitts, Housing Authority Management Analyst
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Needs Statement
2. NOFA/RFP Schedule
3. Proposed Priority Needs and Objectives
cc: Social Service Human Relations Board