Title
Public Hearing to Consider Adoption of the Fiscal Year (FY) 2019-20 Community Development Block Grant (CDBG)/HOME Partnership Investment Program Action Plan and Authorize the City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications at Funding Levels Approved by Congress. (Housing 236)
Body
To: Honorable Mayor and Members of the City Council
From: Eric Levitt, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) is an entitlement recipient of Community Development Block Grant (CDBG) funds from the Federal Department of Housing and Urban Development (HUD). In the Fiscal Year (FY) 2019-20 Action Plan period, the City will receive $1,122,143 in CDBG Entitlement funds. This public hearing is an opportunity for the community to weigh in on the proposed programs and projects to be funded with CDBG monies in the upcoming fiscal year.
BACKGROUND
The City is an entitlement recipient of CDBG funds from HUD. CDBG funds support programs and activities that benefit low- and moderate-income persons and households and help prevent or eliminate slums and blight. Each year, entitlement cities must follow a process to receive public input, establish community goals and prepare a budget for the coming year. Each city must also prepare and submit an Action Plan to HUD for formal approval.
On April 12, 2019, HUD announced CDBG Allocations for the FY 2019-20 Action Plan period. The City will receive $1,122,143 in CDBG Entitlement funds. In addition, as a member of the Alameda County HOME Partnership Investment Program (HOME) Consortium, the City expects to receive $221,998 in FY 2019-20 HOME Program funds. To receive CDBG/HOME 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. All grant funds are subject to federal budget appropriations.
The citizen participation requirements with respect to the public hearing have been met by publication of a notice in the April 5, 2019 Alameda Journal newspaper, as well as in Chinese, Tagalog, Vietnamese, and Spanish-language newspapers. Provisions for non-English speaking residents and persons with disabilities have been made available. The FY 2019-20 Action Plan is attached as Exhibit 1.
DISCUSSION
CDBG Funding Allocation
The City prepares an annual Action Plan that identifies specific objectives and the proposed uses of CDBG funds. The Action Plan funding recommendations are based on needs identified through a number of community meetings and reports, including:
• Alameda County report on Analysis of Impediments to Fair Housing
• Alameda County EveryOne Home reports
• City of Alameda Draft Community Needs Assessment 2017
• Consultation with community-based organizations
• City Council Annual Public Needs Hearing
• Social Service Human Relations Board (SSHRB) meeting on public services needs held on November 29, 2018
In addition to the Action Plan, staff has prepared an Action Plan Summary (Exhibit 2). The summary lists activities recommended for funding in FY 2019-20. Funding sources include FY 2019-20 entitlement funds, program income and carry-forward funds. Public Services funding is capped at 15% of the current year’s grant allocation plus program income received in the previous fiscal year. As an entitlement jurisdiction that receives federal funds, the City is required to comply with HUD’s Fair Housing requirements. Therefore, staff recommends $15,000 to fund the City’s Fair Housing Program through a contract with ECHO Housing. These funds are included in the total recommendation for funding for ECHO Housing counseling services. In addition, $23,813 is proposed to fund the Eden I&R 211 Information and Referral Program. This amount reflects the City’s portion of a County-wide social services referral service.
SSHRB reviews and makes recommendations regarding the remaining funds for Public Services. At SSHRB’s February 28, 2019 meeting, the Board approved recommendations for CDBG Public Service funding. These recommendations are included in a letter supporting staff recommendations and are attached as Exhibit 3. The Public Services funding is subject to federal budget appropriations.
Each annual Action Plan also includes estimated carry-forward funds (i.e., appropriated but unexpended funds) from the prior year and those remaining funds are encumbered within the same grant year until a project is complete or a project is identified and funds are reprogrammed to the new project. This Action Plan includes approximately $1,183,836 of carry-forward funds, based on the balance as of April 5, 2019. This includes funds for projects that have been previously approved, but not yet completed.
HOME Funding Allocation and Activities
As a member of the Alameda County HOME Consortium, the City expects to receive $221,998 in FY 2019-20 HOME funds of which $12,763 may be used for administrative purposes. It is recommended that the City use its HOME allocation of project funds for the construction and/or rehabilitation of affordable housing. Staff received two applications for HOME funds. Staff proposes that $150,000 be allocated to the Rosefield Village Project and the remaining $59,235 be allocated to the 1245 McKay Avenue Project. The HOME allociation is subject to federal budget appropriations.
FINANCIAL IMPACT
There is no impact to the General Fund to approve the FY 2019-20 CDBG/HOME Action Plan. CDBG/HOME funds received will be budgeted in the CDBG Fund 236 and HOME Fund 235. This Action Plan will appropriate an estimated $1,122,143 in CDBG Entitlement funds. Other CDBG funds noted in the Action Plan include an estimated $123,000 in program income from loan repayments in FY 2019-20 from the Substantial Rehab and Residential Rehab programs. The Action Plan will appropriate approximately $221,998 of HOME funds for affordable housing administration, construction, and rehabilitation projects. In addition, approximately $1,183,836 will be appropriated and carried forward from prior years’ allocations.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The proposed Action Plan is consistent with the City’s CDBG Five-Year Consolidated Plan and citizen participation requirements.
ENVIRONMENTAL REVIEW
The execution of related agreements and final funding commitments are subject to the requirements of the National Environmental Policy Act (NEPA) and satisfactory environmental clearance pursuant to 24 CFR Part 58.
RECOMMENDATION
Adopt the FY 2019-20 CDBG/HOME Action Plan and authorize the City Manager to negotiate and execute grant agreements, grant modifications, and other related documents at funding levels approved by Congress.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Lisa Fitts, CDBG Management Analyst
Financial impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. FY19-20 Action Plan
2. Summary of Activities
3. Social Service Human Relations Board Letter