Title
Public Hearing to Consider Adoption of the FY14-15 Community Development Block Grant/HOME Partnership Investment Program Action Plan and Authorize the City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications. (Housing 236)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Public Hearing to Consider Adoption of the FY14-15 Community Development Block Gant/HOME Partnership Investment Program Action Plan and Authorize the City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications
BACKGROUND
The City of Alameda is an entitlement recipient of Community Development Block Grant (CDBG) funds from the Federal Department of Housing and Urban Development (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 prescribed 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.
In the FY14-15 Action Plan period, the City will receive approximately $1,073,723 in CDBG entitlement funds. In addition, as a member of the Alameda County HOME Partnership Investment Program (HOME) Consortium, the City of Alameda expects to receive approximately $238,145 in FY14-15 HOME funds, which includes $83,889 in program income (i.e. funds captured through loan repayments). 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. The FY14-15 CDBG/HOME Action Plan, describing the proposed use of CDBG/HOME funds in the coming year, must be approved by the City Council and submitted to HUD by May 15, 2014.
The citizen participation requirements have been met with respect to the public hearing by publishing a notice in the April 4, 2014 Alameda Journal, as well as in Chinese and Spanish-language newspapers. Provisions for non-English speaking residents and persons with disabilities have been made available. The FY14-15 Action Plan is attached as Exhibit 1.
DISCUSSION
CDBG Funding Allocation
In March 2014, the City of Alameda was informed that the CDBG allocation for FY14-15 would be approximately $1,073,723. The funding reflects a 1.7% reduction in overall new funding. In addition, the City anticipates receiving approximately $200,000 in prior year's program income. Funds that may be used for CDBG Public Services (local assistance provided to community members) are capped at 15 percent of the entitlement allocation ($161,058) and of the prior year's program income ($30,000). The total funding available for Public Services is $191,058. Each year, the Guyton settlement agreement requires that 15.3 percent of the entitlement allocation be allocated to the Substantial Rehabilitation Program.
CDBG Activities
The Action Plan Summary (Exhibit 2) summarizes the activities recommended for funding in FY14-15. Recommendations described in the Action Plan Summary are based on needs identified through a variety of community engagement activities, including results from the Social Service Human Relations Board's (SSHRB) community needs survey, consultation with community-based organizations, and public comments received at the SSHRB and City Council meetings on community needs held on December 4, 2013, and January 7, 2014, respectively.
Non-Housing Public Services:
On January 13, 2014, the City released the Notice of Funding Availability/Request for Proposals (NOFA/RFP) for FY14-15 CDBG funds. Eight proposals for the non-housing public service funding category were submitted for review, with a total request for funding of $224,481. Funding requests exceeded available funding of $191,058 by $33,423. A panel was convened to review the proposals. All applications were reviewed for conformance with threshold requirements. Priority emphasis was directed to "safety net" services for families and individuals (including seniors) who are vulnerable and in crisis through programs that provide food, shelter, case management or counseling services, personal safety services, and homeless prevention services such as short-term rental and utility assistance. The priority on safety net services is consistent with the Public Services Needs statement approved by City Council on January 7, 2014.
On February 19, 2014, the review panel's recommendations for the non-housing public services category were presented to SSHRB. The SSHRB was provided access to all applications, supporting documents, and copies of the staff evaluation scores for review prior to the meeting. On March 19, 2014, HUD released the entitlement allocations and staff presented the revised recommendations to SSHRB on April 1, 2014. Due to the scarcity of available funds, staff is recommending to fund the seven highest scoring applications but not the lowest scoring application. The SSHRB is recommending to fund all eight applications by reducing the grant award to the other eight agencies. It should be noted that if the funds to a particular agency are significantly reduced, some programs may not be able to operate at all. SSHRB's letter to the City Council is attached as Exhibit 3.
The Alameda Food Bank (AFB) submitted a reduced funding request this year to allow other crucial safety-net providers better access to CDBG funding. All applicants meet one of the identified safety net needs. The Building Futures with Women and Children (BFWC) Midway Shelter is the only shelter in Alameda and includes funding for the Domestic Violence taskforce. In addition, BFWC's Alameda Homeless Prevention Program will provide rent and utility assistance to address homeless prevention. The Eden Council for Hope and Opportunity's (ECHO) Housing Counseling Program has two components. The first is Fair Housing, which is required by HUD for the City to affirmatively further fair housing and receive CDBG funds and to be in conformance with the Housing Element. The second component is case management services which prevent homelessness and reduce the need for additional crisis services. The Eden Information and Referral 211 program is the only information referral program in the county and is essential to connecting the community to available safety net services. The Family Violence Law Center (FVLC) provides direct legal services to victims of domestic violence (DV) and is the only legal provider specific for DV in Alameda. The Legal Assistance for Seniors (LAS) is the only legal provider specific to the senior population in Alameda that provides home visits for case management and advocacy.
After careful consideration, staff did not recommend funding for the Alameda Family Services Housing Permanence Program. Because overall funds were limited, it was necessary to deny some of the funding requests, and this program scored the lowest on the scoring matrix based on lack of readiness to proceed and a low ratio of leveraged funds. Moreover, their original requested CDBG funds would have been 60% of the overall program budget. Recommended public service programs and funding levels are included in the Action Plan Summary (Exhibit 2).
Non-Housing Public Facilities & Infrastructure: The City's Public Works Department will carry out eligible capital improvement projects which include a traffic signal modification in the Main/Singleton intersection and various accessibility improvements such as curb cuts and lighting improvements.
Non-Housing Economic Development: The City will continue to work with the Alameda Point Collaborative (APC), which has been designated as a Community-Based Development Organization (CBDO). This designation increases the City's flexibility to fund economic development-related initiatives, including employment training. The funding will continue to enhance the APC's entrepreneurial efforts, including the Ploughshares Nursery and Growing Youth Food Security Program.
Other Programs/Projects: Other programs and projects, including the Substantial Rehabilitation, Residential Rehabilitation, Minor Home Repair, and the Lead Based Paint Program and the Fire Department's Safety and Accessibility Program, will continue to be funded. The Substantial Rehabilitation Program is funded in accordance with the requirements of the Guyton Settlement Agreement to develop new units in vacant or underutilized space in existing residential and mixed-use structures. The Fire Department's Safety and Accessibility Program offers grants to eligible senior and/or disabled residents to make accessibility modifications to their homes.
Planning/Administration/Program Delivery: The Action Plan includes an allocation for EveryOne Home (formerly known as the Continuum of Care) and to support program delivery, planning, and administration related to the development and implementation of all CDBG-eligible and CDBG-funded projects. In furtherance of the CDBG objective of assistance to lower-income residents, staff provides support to the Rent Review Advisory Committee, the SSHRB, and other similar activities.
Following approval of, and in accordance with, the FY14-15 CDBG/HOME Action Plan, grant agreements or modifications will be negotiated to fulfill federal and City requirements. The form of agreements and modifications are those previously approved by the City Council and the City Attorney's office.
HOME Funding Allocation and Activities
As a member of the Alameda County HOME Consortium, the City of Alameda expects to receive approximately $238,145 in HOME funds for FY14-15. Program funding levels have fluctuated somewhat over the years, but in the past two years, the federal budget for HOME has been cut to about half of what was allocated prior to FY12-13. The City Council has previously approved the use of $367,043, over three years (from the FY 2013-14, 2014-15, and 2015-16 HOME grants), to be used for pre-development expenses for the affordable housing project at Alameda Landing. For FY 2014-15, approximately $79,695 in HOME grant funds remain unobligated. Consistent with HOME regulations, the City will use its HOME allocation for the construction and/or rehabilitation of affordable housing. In addition, the City will participate in the County effort to update the "Analysis of Impediments to Fair Housing" as required by HUD.
FINANCIAL IMPACT
There is no impact on the General Fund. The funds for the CDBG and HOME programs are budgeted in the Housing Development and Programs Division's FY14-15 budget (CDBG Fund 236 and HOME Fund 235). This Action Plan will appropriate approximately $1,073,723 in CDBG Entitlement funds. Other CDBG funds noted in the Action Plan include an estimated $200,000 in program income from loan repayments in FY13-14, and $835,353 in carry-forward entitlement funds and $175,000 in carry-forward program income from previous years from the Substantial Rehabilitation and Residential Rehabilitation programs. These funds are also budgeted in the Housing Development and Programs Division budget (Fund 236). In addition, the Action Plan will appropriate approximately $238,145 of HOME funds for administration, construction, and rehabilitation projects.
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 and meet the requirements of the National Environmental Policy Act (NEPA) and satisfactory environmental clearance pursuant to 24 CFR Part 58.
RECOMMENDATION
Adopt the FY14-15 CDBG/HOME Action Plan and authorize the City Manager to negotiate and execute grant agreements, grant modifications, and other related documents.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Michael T. Pucci, Housing Authority Executive Director
Financial Impact section reviewed,
Fred Marsh, Finance Director
Exhibits:
1. CDBG FY14-15 Action Plan
2. CDBG FY14-15 Action Plan Summary of Activities Recommended for Funding
3. SSHRB Letter Recommendation for FY14-15 Non-Housing Public Service Allocations
cc: FY14-15 CDBG applicants
Social Services Human Relations Board