Title
Public Hearing to Consider Approving the Housing and Community Development Needs Statement and Priority Needs and Objectives for the Community Development Block Grant (CDBG) Annual and Five-Year Plans. (Housing 236)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The purpose of the public hearing is to consider approving the housing and community development needs for the Community Development Block Grant (CDBG) Five-Year Strategic Plan, covering the period July 1, 2020 to June 30, 2025 (FY’s 2020-25), and the Fiscal Year (FY) 2020-21 CDBG Annual Plan, which will be presented to City Council in May 2020. As an entitlement recipient of CDBG funds, the City of Alameda (City) receives approximately $1 million per year from the U.S. Department of Housing and Urban Development (HUD).
CDBG regulations require that an annual public hearing be held to obtain community input on current housing and community development needs related to the Action Plan. The Five-Year Strategic Plan identifies the following priority needs: affordable housing, homelessness, other special needs, and non-housing community development (public services, economic development, and public facilities).
BACKGROUND
The City is an entitlement recipient of CDBG funds from HUD. Each year the City receives an entitlement allocation of approximately $1 million of CDBG funding. CDBG funds programs and activities that benefit low- and moderate-income persons and households while helping to prevent or eliminate slums and blight. To receive CDBG 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 Strategic 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. Every five years, the City is also required to prepare a Five-Year Strategic Plan, which outlines the housing and community development priority needs that will inform CDBG funding decisions for the upcoming five-year period. This hearing provides an opportunity for input on both the Five-Year Strategic Plan, covering the period July 1, 2020 to June 30, 2025 (FYs 2020-25), and the Annual Action Plan for FY 2020-21. 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, and 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 must not exceed 15 percent of the annual entitlement allocation and the prior year’s program income.
All citizen participation requirements have been met for the public hearing, with publication of the notice in the December 6, 2019 Alameda Journal, as well as in Chinese, Spanish, Tagalog and Vietnamese 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 Strategic 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 2020-21 through FY 2024-25. Priority needs in the Five-Year Strategic Plan include the following:
• Preserving and increasing affordable housing and supportive services;
• Reducing housing discrimination;
• Preventing and addressing homelessness; and
• Addressing non-housing community development needs such as neighborhood improvements, public services, accessibility improvements and economic development.
The City is a participating jurisdiction in the Alameda County CDBG/HOME consortium. The Five-Year Strategic Plan priority needs are the same for all participating jurisdictions and, therefore, cannot be revised. However, the role of each jurisdiction is to develop and implement programs and projects on the local level that address the consortium-wide priority needs.
To support the City’s effort to identify the public service needs of the community, the Social Service Human Relations Board (SSHRB) held a meeting on November 21, 2019, and prepared a recommendation for the FY 2020-21 Needs Statement for approval by the City Council (Exhibit 1). The approved Needs Statement will be included in the upcoming CDBG FY 2020-21 Notice of Funding Availability (NOFA)/Request for Proposals (RFP). The proposed RFP schedule is included in Exhibit 2 for reference only.
Other efforts undertaken to identify community development needs included surveying the local community. SSHRB conducts a citywide needs assessment every four to five years as part of its chartered mandate. SSHRB’s most current needs assessment was conducted in 2017. Staff from the Community Development Department and the Alameda Housing Authority conferred to conduct a short, three-question survey to review and reaffirm the community and social service priorities identified by community members in the 2017 community needs assessment. This outreach provided additional feedback on the needs prioritization. Forty-four responses to the survey were received and a summary of the responses is included in Exhibit 3. Lastly, staff participated in the community stakeholder workshops that were organized by the County of Alameda Housing and Community Development Department to prepare a new Analysis of Impediments (AI) to Fair Housing Choice report. The County of Alameda plans to release the final AI in January 2020. Public outreach identified the following needs: affordable housing, fair housing, food security, homeless shelters and services, mental health, safety/crime prevention and transportation.
Alameda’s FY 2020-21 Action Plan will identify local priorities and uses of CDBG funds to address needs in eligible categories. Exhibit 4 includes the program objectives designed to meet the following priorities: affordable housing, homelessness, other special needs, and non-housing community development, which includes public services, economic development, and public facilities and infrastructure. Exhibit 4 also incorporates the SSHRB priorities in the public services section.
ALTERNATIVES
Staff recommends that the City Council approve both the Needs Statement (Exhibit 1) and the Priority Needs & Objectives (Exhibit 4). The approved Priority Needs and Objectives will inform staff’s funding recommendations in the Annual Action Plan. The recommended public service funding will be part of the FY 2020-21 Action Plan to be approved by the City Council in May 2020.
While CDBG regulations require that an annual public hearing be held to obtain views on current housing and community development needs, the City Council may modify the Needs Statement and/or the Priority Needs & Objectives prior to acceptance.
FINANCIAL IMPACT
There is no financial impact from conducting a public hearing to determine FY 2020-21 housing and community development needs. Although HUD has not yet published the CDBG entitlement allocations for FY 2020-21, staff anticipates receiving approximately $1,100,000 in entitlement funds and $120,000 of program income. Program income is generated from repayments of principal and interest on outstanding CDBG loans.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This project is consistent with the Housing and Community Development HUD CDBG/HOME 24 CFR Part 91 Five-Year Consolidated Plan requirement.
ENVIRONMENTAL REVIEW
Execution of related agreements and final funding commitments are subject to the requirements of the National Environmental Policy Act (NEPA) and satisfactory environmental clearance under 24 CFR Part 58.
CLIMATE IMPACTS
There are no climate impacts from conducting a public hearing to determine FY 2020-21 housing and community development needs or from approving the needs statement.
RECOMMENDATION
Conduct a public hearing and, following the public hearing, approve the Housing and Community Development Needs Statement and Priority Needs and Objectives for the Community Development Block Grant (CDBG) Annual and Five-Year Plans.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval of the Needs Statement and Priority Needs for CDBG. The City Council also has the ability to amend prior to approval.
Respectfully submitted,
Debbie Potter, Community Development Director
By:
Lisa Fitts, Housing Authority Management Analyst
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Needs Statement
2. NOFA/RFP Schedule
3. Survey Results
4. Proposed Priority Needs and Objectives
cc: Eric Levitt, City Manager
Social Service Human Relations Board