Title
Public Hearing to Consider Approving the Housing and Community Development Needs Statement for the Community Development Block Grant (CDBG) Annual Action Plan for Fiscal Year (FY) 2017-18. (Housing 236)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Public Hearing to Consider Approving the Housing and Community Development Needs Statement for the Community Development Block Grant (CDBG) Annual Action Plan for Fiscal Year 2017-18
BACKGROUND
The City of Alameda is an entitlement recipient of CDBG funds from the Federal Department of Housing and Urban Development (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 Annual Action Plan (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 Fiscal Year (FY) 2017-18. 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 may 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 December 2, 2016 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;
• 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 December 1, 2016, and prepared a statement to support the staff recommendation for the FY 2017-18 Needs Statement (Exhibit 1). The Public Services programs are in the second year of a two-year funding cycle. SSHRB will complete a Community-wide Needs Survey next spring that will provide guidance for the next funding cycle. The FY 17-18 Notice of Funding Availability/Request for Proposals (RFP) will include a solicitation of proposals for projects that provide eligible non-Public Service activities (e.g., public facilities improvements, accessibility improvements, economic development, etc.). The proposed RFP schedule is included in Exhibit 2 for reference only.
Alameda’s FY 2017-18 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 selected areas. Exhibit 3 includes the objectives identified to meet the identified priorities. The identified priorities are affordable housing; homelessness; other special needs; and non-housing community development, which includes public services, economic development, and public facilities and infrastructure.
Staff is recommending that the City Council approve the Needs Statement as presented. The approved Needs Statement will inform staff’s funding recommendations to the City Council. The recommended Public Service funding will be part of the FY 2017-18 Action Plan to be approved by the City Council in May 2017.
FINANCIAL IMPACT
There is no financial impact from conducting a public hearing to determine FY 2017-18 housing and community development needs. Although the CDBG Entitlement allocations for FY 2017-18 have not yet been published, FY 2016-17 allocation is $1,059,118. In FY 2017-18, staff anticipates receiving a similar amount in Entitlement Funds and approximately $150,000 of Program Income.
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 Statement for the CDBG Annual Action Plan for FY 2017-18.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Claudia Young, Director of Rent and Community Programs
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. SSHRB Recommendations for Needs Statement
2. City of Alameda NOFA/RFP Schedule: FY 2016-17 CDBG Funding Timeline
3. Proposed Priority Needs Objectives
cc: Social Service Human Relations Board