Title
Public Hearing to Consider Adoption of the Community Development Block Grant (CDBG) Fiscal Year (FY) 2015-20 Five-Year Strategic Plan and the FY 2015-16 Action Plan, and Authorize the City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications. (Housing 235 and 236)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Public Hearing to Consider Adoption of the Community Development Block Grant FY 2015-20 Five-Year Strategic Plan and the FY 2015-16 Action Plan, and Authorize the City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications
BACKGROUND
The City of Alameda is the recipient of Community Development Block Grant (CDBG) funds from the Federal Department of Housing and Urban Development (HUD). These funds are used to finance programs and activities that benefit low- and moderate-income persons and to help prevent or eliminate slums and blight. As a condition of funding, the City is required to prepare a Five-Year Strategic Plan and an Annual Action Plan. A new five year cycle will begin in FY 2015-2016.
The FY 2015-20 Five-Year Strategic Plan (Strategic Plan) sets forth broad policy goals and the City's plan for addressing the identified priority needs, primarily through the use of CDBG and HOME funds. The priority need categories are defined by HUD. Specific objectives for the coming year are addressed in the FY 15-16 Action Plan (Action Plan) covering the period of July 1, 2015 through June 30, 2016.
The Action Plan will allocate $1,039,953 in CDBG Entitlement Funds, $137,230 in HOME funds, and an estimated $150,000 in CDBG Program Income, for a total of $1,327,183. Both the Strategic and Action Plans must be approved by the City Council and submitted to HUD by May 15, 2015. In preparing its 2015-2020 Strategic Plan, the City consulted with community-based service providers, residents, and City departments and boards. The community stakeholders helped to establish priority needs and objectives and proposed strategies in the form of projects and activities to further those objectives. Public meetings to discuss and prioritize needs were held on October 22, 2014, and November 20, 2014, and a public hearing was held on January 20, 2015. No written comments were received.
The citizen participation requirements have been met with respect to this public hearing by publication of the notice in the April 3, 2015 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 and the Five-Year 2015-2020 Strategic Plan and 2015-16 Action Plan are attached as Exhibit 1.
DISCUSSION
Strategic Plan
The City of Alameda is one of eight jurisdictional members of the Alameda County HOME Consortium (HOME Consortium) which makes it possible for participating jurisdictions to receive HOME funding from HUD. Because the City is a member of the HOME Consortium, both five-year plans and annual applications for CDBG and HOME funds are coordinated through the HOME Consortium. As required by HUD, the HOME Consortium must identify priority needs and develop broad policy objectives for the use of CDBG, HOME, and any other federal funds that may be awarded. The policy objectives are addressed in the Strategic Plan. In addition to the priority needs identified by the HOME Consortium, the City's Social Service Human Relations Board (SSHRB) seeks input from the community and articulates needs that are specific to Alameda with a particular focus on public services.
The Strategic Plan addresses needs in the areas of housing, homelessness, non-housing community development such as public services, public facilities/infrastructure and economic development. The Strategic Plan, attached as Exhibit 2, incorporates community input and outlines five areas of priority needs and 14 objectives that will be used to address the identified priority needs.
Action Plan
The City prepares an annual Action Plan that identifies specific objectives and the proposed uses of CDBG funds for one grant year. The Action Plan funding recommendations are based on needs identified through a number of community meetings and reports, including the Analysis of Impediments to Fair Housing, the County Everyone Home Reports, consultation with community-based organizations, and public comments received at the community needs workshop meeting, and the City Council Public Needs Hearing. The SSHRB held a public hearing on public services needs on November 20, 2014, and made public services funding recommendations at its March 26, 2015 meeting. SSHRB provided a letter supporting staff recommendations, attached as Exhibit 3.
The Action Plan Summary is included as Exhibit 4, and details the funding recommendations for FY 15-16. The following is a summary of activities that will be undertaken in the upcoming fiscal year.
PS=Public Services, ED=Economic Development; AH=Affordable Housing; RR=Residential Rehabilitation
Following approval of, and in accordance with, the FY 2015-2016 CDBG Action Plan, agreements or modifications will be negotiated to fulfill Federal and City requirements.
FINANCIAL IMPACT
The CDBG grant is an entitlement grant that allows up to 20 percent of the grant amount to be used for administrative purposes. This allowance covers the cost of staff who administer the grant programs. The CDBG programs are managed by the Housing Authority of the City of Alameda (AHA) staff through the services agreement between the City and AHA that includes administrative staffing services. There is no impact on the General Fund.
CDBG funds are also used to leverage private investment and matching grants from private, foundation, and other public sources for the benefit of Alameda. This Action Plan will allocate $1,039,953 in CDBG Entitlement funds. Other CDBG funds noted in the Action Plan include an estimated $150,000 in program income from loan repayments. The HOME funds are allocated by Alameda County.
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; both have been satisfied.
RECOMMENDATION
Hold a Public Hearing to consider adoption of the Community Development Block Grant FY 2015-20 Five-Year Strategic Plan and the FY 2015-16 Action Plan, and authorize the City Manager to negotiate and execute related documents, agreements, and modifications.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Claudia Young, Housing and Community Development Program Manager
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Five Year Strategic Plan (2015-2020) and Action Plan (2015-16)
2. Priority Needs and Objectives
3. SSHRB FY 2015-2016 Public Service Recommendation Support Letter
4. FY 2015-2016 CDBG Action Plan Summary