Title
Public Hearing to Consider Adoption of the Fiscal Year 2016-17 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. (Housing 236)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Public Hearing to Consider Adoption of the Fiscal Year 2016-17 Community Development Block Grant/HOME Partnership Investment Program Action Plan and Authorize the Interim 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 proscribed 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 Fiscal Year (FY) 2016-17 Action Plan period, the City will receive approximately $1,059,118 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 a total of $156,659 in FY 2016-17 HOME 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. The FY 2016-17 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, 2016.
The citizen participation requirements have been met with respect to the public hearing notice by publication of the notice in the April 1, 2016 Alameda Journal, 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 and the FY 2016-17 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 for that one grant year. The Action Plan funding recommendations are based on needs identified through a number of community meetings and reports, including the Alameda County report on Analysis of Impediments to Fair Housing, the County Everyone Home reports, consultation with community-based organizations, and results received from the online community needs survey, the City Council hearing on public needs, and the SSHRB meeting on public services needs held on January 7, 2016
As an entitlement jurisdiction, the City is required to comply with the HUD requirements to affirmatively further efforts to provide Fair Housing programs and services. Consequently, staff recommends $15,000 to fund the ECHO Fair Housing Program. Staff is also recommending $18,556 to fund the Eden I&R 211 Information and Referral Program. The City’s contribution to Eden I&R is based on our pro-rata share of that county-wide 211 information and referral service. The City’s annual pro rata share of funding for the referral service is $22,000. The $22,000 total is split between CDBG funding ($18,556) and City funds ($3,444).
The CDBG program is primarily a “bricks and mortar” program. Therefore, funding for public services is capped at no more than 15% of the annual allocation, plus 15% of the prior year’s program income. The funding for ECHO and Eden I&R is subtracted from the Public Services cap. SSHRB reviews and makes recommendations regarding the remaining funds for the Public Service category. The Action Plan Summary is included as Exhibit 2, and details staff’s and the SSHRB’s funding recommendations for FY 2016-17. SSHRB has provided a letter regarding its recommendations, attached as Exhibit 2. The Public Services funding is for two consecutive years, subject to any adjustment of CDBG funding by Congress.
HOME Funding Allocation and Activities
As a member of the Alameda County HOME Consortium, for the, the City of Alameda expects to receive approximately $156,659 FY 2016-17 HOME funds allocation. The City will use its HOME allocation for the construction and/or rehabilitation of affordable housing similar to the Park Alameda project, which was constructed in 2013.
FINANCIAL IMPACT
The funds for the CDBG and HOME programs will be budgeted in the Housing Development and Programs Division’s FY 2016-17 budget (CDBG Fund 236 and HOME Fund 235). This Action Plan will appropriate $1,059,118 in CDBG Entitlement funds. Other CDBG funds noted in the Action Plan include an estimated $150,000 in program income from loan repayments in FY 2015-16 from the Substantial Rehabilitation and Residential Rehabilitation programs. Each year, the Guyton settlement agreement requires that 15.3 percent of the entitlement allocation must be allocated to the Substantial Rehabilitation Program. These funds are also budgeted in the Housing Development and Programs Division budget (Fund 236). In addition, the Action Plan will appropriate approximately $156,659 of HOME funds for administration and construction and rehabilitation projects. As noted above, $3,444 in General Funds was previously budgeted, as part of the two-year budget, for FY 2016-17 2-1-1 services.
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 FY16-17 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,
Claudia Young, Community Development Program Manager
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. CDBG FY16-17 Action Plan
2. CDBG FY16-17 Action Plan Summary of Activities Recommended for Funding
3. SSHRB letter recommendation for FY16-17 Non-Housing Public Service allocations
4. PowerPoint Presentation