----Title
Public Hearing to Consider Adoption of the Fiscal Year (FY) 2018-19 Community Development Block Grant (CDBG)/HOME Partnership Investment Program Action Plan and Authorize the Acting City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications at Funding Levels Approved by Congress. (Housing)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Public Hearing to Consider Adoption of the FY18-19 Community Development Block Grant/HOME Partnership Investment Program Action Plan and Authorize the Acting City Manager to Negotiate and Execute Related Documents, Agreements, and Modifications at Funding Levels Approved by Congress
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 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 May 1, 2018, HUD announced CDBG Allocations for FY18-19. The City of Alameda will receive $1,127,434 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 $244,691 in FY18-19 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. 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 13, 2018 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. The FY18-19 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
• SSHRB public meeting on public services needs held on November 30, 2017
In addition to the Action Plan, staff has prepared an Action Plan Summary (Exhibit 2). The summary lists activities recommended for funding in FY 18-19. Funding sources include FY 18-19 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, $25,000 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. The Social Service and Human Relations Board (SSHRB) reviews and makes recommendations regarding the remaining funds for Public Services. Exhibit 2 reflects SSHRB’s public services funding recommendations from its March 22, 2018 public meeting. SSHRB provided a letter supporting staff recommendations 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 $1,138,436 of carry-forward funds, based on the balance as of May 2, 2018. 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 of Alameda expects to receive approximately $244,691 FY18-19 HOME funds. It is recommended that the City use its HOME allocation for the construction and/or rehabilitation of affordable housing. The HOME allocation is subject to federal budget appropriations.
FINANCIAL IMPACT
There is no impact to the General Fund to approve the FY 18-19 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 $1,127,434 in CDBG Entitlement funds. Other CDBG funds noted in the Action Plan include an estimated $145,000 in program income from loan repayments in FY18-19 from the Substantial Rehab and Residential Rehab programs. The Action Plan will appropriate approximately $244,691 of HOME funds for affordable housing administration, construction, and rehabilitation projects. In addition, approximately $1,138,436 will be appropriated and carried forward.
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 FY18-19 CDBG/HOME Action Plan and authorize the Acting 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,
Edwin Gato, Acting Finance Director
Exhibits:
1. Fiscal Year 2018-19 Action Plan
2. Summary of Activities
3. SSHRB Letter