Title
Public Hearing to Consider an Amendment to the Fiscal Year 2019-20 Community Development Block Grant Action Plan and Authorize the City Manager to Negotiate and Execute Related Documents, Agreements and Modifications. (Community Development 236)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The purpose of the public hearing is to consider approving an amendment to the Community Development Block Grant (CDBG) Five-Year Consolidated Plan (2015-2020), specifically to the Fiscal Year (FY) 2019-20 Action Plan (Action Plan), to accept and allocate CDBG funds received as a result of the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The pandemic caused by the coronavirus is impacting Alamedans’ physical, mental and financial health. Staff proposes to amend the Action Plan to accept and allocate CARES Act funding so that it can be used to fund public services that provide food and shelter to low- and moderate-income families and individuals who are vulnerable and in crisis.
BACKGROUND
The City of Alameda (City) is an entitlement recipient of CDBG funds from the Federal Department of Housing and Urban Development (HUD). Each year, the City receives an allocation of approximately $1 million of CDBG funding. CDBG funds can be used to finance programs and activities that benefit low- and moderate-income households, and to help prevent or eliminate blight. To receive CDBG funding, the City has to submit to HUD an annual action plan detailing the programs and activities that address the needs identified in the City’s approved Five-Year Consolidated Plan. The action plan is approved by the City Council and includes programs, activities, and the associated funding amounts for the fiscal year. A public hearing is required for any amendment to the action plan if the City cancels an activity, adds an activity, or substantially changes the purpose, scope, location, or beneficiaries of an activity.
COVID-19 and the Coronavirus Aid, Relief, and Economic Security (CARES) Act
On January 30, 2020, the World Health Organization (WHO) declared a public health emergency of international concern due to the rapid spread of a severe acute respiratory illness caused by a novel (new) coronavirus (COVID-19 or the virus). On January 31, 2020, the U.S. Department of Health and Human Services declared a Public Health Emergency for the United States of America. The United States Centers for Disease Control and Prevention (CDC) has determined that the virus presents a serious public health threat, requiring coordination among state and local health departments to ensure readiness for potential health threats associated with the virus. On March 4, 2020, the Governor of California proclaimed a state of emergency to exist in California as a result of the threat of COVID-19.
On March 12, 2020, the Governor of California issued Executive Order N-25-20 which, among other things, orders that all California residents are to “. . . heed any orders and guidance of state and local public health officials, including but not limited to the imposition of social distancing measures, to control the spread of COVID-19”. On March 16, 2020, the California Department of Public Health issued a directive that all individuals who are 65 or older, who have serious chronic medical conditions or who have a compromised immune system should self-isolate during the COVID-19 pandemic as these individuals are particularly at risk of encountering medical complications due to the virus.
On March 16, 2020, based on evidence of increasing occurrence of COVID-19 within Alameda County and throughout the Bay Area, the Alameda County Health Officer, along with health officers in five other Bay Area counties, issued an order “directing all individuals living in Alameda County to shelter at their place of residence…directing all businesses and governmental agencies to cease non-essential operations at physical locations in the County; prohibiting all non-essential gatherings of any number of individuals; and ordering cessation of all non-essential travel”. On March 16, 2020, the Alameda County Director of Emergency Services also declared a local emergency based on conditions of extreme peril to the safety of persons and property within the County from the introduction of COVID-19 into the County.
On March 27, 2020, the President of the United States signed the CARES Act into law. On April 2, 2020, HUD announced that the City of Alameda would receive an allocation of $683,116 pursuant to the CARES Act. Through the CARES Act, HUD has been authorized to loosen some of the constraints for CDBG allocations for FY 2019-20 and FY 2020-21, including:
• Extending the deadline for submission of FY 2020 Consolidated Plan/Action Plans;
• Suspending the 15% cap on public services;
• Authorizing a five-day public comment period;
• Eliminating in-person public hearings, allowing grantees to hold virtual hearings; and
• Allowing HUD to further waive program requirements (except for requirements related to fair housing, nondiscrimination, labor standards and the environment).
To date, HUD has acknowledged the City’s requests for the waivers listed above. Consequently, the Five-Year Consolidated Plan (2020-2025) is due on July 3, 2020. Staff plans to present it to City Council at the June 16, 2020 City Council meeting. The Citizen Participation Plan has been revised to incorporate shortened public comment periods, acknowledge the use of virtual hearings and recognize that information may be disseminated through electronic media. The updated Citizen Participation Plan is attached as Exhibit 1.
All citizen participation requirements have been met for the public hearing, with publication of the notice in the May 22, 2020 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
With the unprecedented orders and directives from federal, state and local authorities to practice social distancing measures, which include self-isolation and self-quarantine, Alamedans find themselves isolating in their residences. All but “essential” businesses, as that term is defined by the public health orders are closed, resulting in a high number of layoffs. The US Department of Labor registered 6.6 million initial unemployment insurance claims for the week end April 4 and 6.9 million from the previous week. Furthermore, almost all schools are closed, requiring parents to care for their children at home and therefore, these parents are often unable to work if their workplaces are open. As a result, many Alamedans are facing significant reductions in household income. With reduced income, residents may not be able to afford rent, putting these residents at risk of losing shelter and/or being displaced from the Alameda community, or are forced to choose between paying rent and buying food. Shelter-in-place orders are also taxing families, resulting in an uptick in mental health concerns, including domestic violence directed at women and children.
Staff proposes to amend the current Action Plan in order to accept and allocate CARES Act funding, so that it can be used to fund public services that provide food and shelter to families and individuals who are vulnerable and in crisis. Staff proposes three programs:
|
Program |
Proposed Administrator |
Recommended Allocation |
|
Emergency Food Distribution |
Alameda Food Bank |
$50,000 |
|
Emergency Rent Relief |
Building Futures |
$583,116 |
|
Emergency Shelter |
Family Violence Law Center |
$50,000 |
Funds must be disbursed by September 30, 2022.
Emergency Food Distribution
On April 23, 2020, Cindy Houts, the Executive Director, reported that the Alameda Food Bank saw a nine-fold increase in demand - from serving 800 families per month to 1800 per week (and that number has continued to increase during the month of May). In addition to increased demand, the food supply chain and distribution channels have been disrupted by COVID-19 and the resulting shelter-in-place orders. While the Food Bank continues to obtain what it can from the Alameda County Food Bank, it has also begun buying staples, such as rice and peanut butter, directly from a wholesaler.
The proposed allocation from the CARES Act will be in addition to emergency food distribution funds that are allocated through either the FY 2019-20 or the FY 2020-21 Action Plan.
Emergency Rent Relief
The objective of the proposed COVID-19 Emergency Rental Assistance Program is to mitigate potential homelessness and displacement of low-income Alameda tenants that experience a decrease in household income due to the COVID-19 pandemic.
The proposed COVID-19 Emergency Rent Relief Program will provide up to $3,500 of assistance or one month’s property rent, whichever is less, to Alameda households who are financially impacted by the COVID-19 pandemic. Program funding will be in the form of a grant to assist eligible affected tenants in paying rent, immediately preceding the 30 days following the expiration of the Urgency Eviction Moratorium Ordinance, as this is when residents financially impacted by COVID-19 will be most at risk for eviction action. Affected tenants will be required to submit an application electronically and remit documentation to verify that they meet the program eligibility criteria.
The criteria include:
1) Current Residential Lease Agreement in Alameda;
2) Household income of 80% of Area Median Income (AMI) or below;
3) Verification of COVID-19 financial impact;
4) Verification that the Tenant’s rent was current immediately preceding March 4, 2020; and
5) Documentation from the landlord to confirm the amount of unpaid rent. Payments must be made directly to the landlord.
Staff anticipates that more applications will be received than funding is available and proposes that funds be awarded with priority given to the highest need as defined by the greatest increase in loss of income. The draft Program guidelines are attached as Exhibit 2.
It is proposed that Building Futures with Women and Children (BFWC) administer the Emergency Rent Relief Program on behalf of the City. HUD guidelines require that rent relief programs be administered by a third party entity. BFWC administered the City’s Homeless Prevention/Rapid Rehousing Program in 2009-2011, when the City received those funds over a two-year period through the federal American Recovery and Reinvestment Act Program.
At this time staff cannot estimate the demand for the program; however demand is anticipated to be extremely high based on utilization of other similar programs recently released in the Bay Area. Staff estimates that the rental assistance payments will average $2,500 and that the City will issue approximately 215 payments to landlords.
Emergency Shelter
The Emergency Shelter Program is designed to assist individuals who may be fleeing stalking, dating violence, domestic violence, sexual assault or human trafficking that is occurring within the City. Due to the shelter-in-place order and the Judicial Council’s order to release offenders from County jails to relieve overcrowding during the COVID-19 pandemic, non-violent offenders are being released early or being returned home without being held when removed from home as a result of a domestic violence call. Sometimes this results in individuals who were arrested on a domestic violence call being returned home the same night that the call was made. The intent of this program is to provide safe, emergency shelter for survivors who might otherwise be forced to remain sheltered with an abusive person. The draft program guidelines are attached as Exhibit 3.
The Emergency Shelter Program will provide assistance in the form of: hotel vouchers, grocery gift cards and transportation vouchers (i.e., Clipper Card or gas gift card). Individuals may be referred to the Program by different sources, including but not limited to: Alameda Police Department, partner agencies and the Program Administrator’s Hotline. Individuals will be directed to a confidential location, provided with basic toiletries, gift cards for groceries and temporary housing where they may shelter away from their abusers.
The Family Violence Law Center (FVLC) will serve as the program administrator, and will compile and prepare all records and reports required by the City. The reports will contain demographic and other information as required per CDBG regulations. The reports shall be submitted to the City no less frequently than quarterly. Collaborative members will use standardized reporting forms designed by FVLC and/or the City. Case files and documentation to support reports will be available through the business offices of each partner agency.
ALTERNATIVES
• Staff recommends that City Council hold a public hearing to consider an amendment to the FY 2019-20 CDBG Action Plan and authorize the City Manager to negotiate and execute related documents, agreements and modifications to implement the programs described above.
• While CDBG regulations require that a public hearing be held to amend the Action Plan, the City Council may modify the recommendations prior to acceptance. Such modifications could include revising program criteria such as the maximum amount of rent assistance to be provided, eligibility criteria, etc. or the proposed funding allocation among the proposed projects.
• City Council could direct staff to consider other programs for funding as long as those programs are consistent with HUD guidelines (e.g., assistance is limited to low-income residents, funding must be expended by September 30, 2022, etc.).
• City Council could decline to move forward with amending the FY 2019-20 CDBG Action Plan at this time.
FINANCIAL IMPACT
There is no impact on the General Fund. The CDBG CARES Act funding, in the amount of $683,116, is additional revenue that will be budgeted as part of the Fiscal Year 2020-21 Mid-Cycle Budget update.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The proposed Action Plan amendments are consistent with the City's CDBG/HOME Five-Year Consolidated Plan and citizen participation requirements.
ENVIRONMENTAL REVIEW
The execution of related agreements and final funding commitments are subject to satisfactory environmental clearance under 24 CFR Part 58.
CLIMATE IMPACTS
There are no climate impacts from conducting a public hearing to amend the City’s CDBG Five-Year Consolidated Plan, specifically the FY 2019-20 Action Plan.
RECOMMENDATION
Hold a public hearing to consider an amendment to the Fiscal Year 2019-20 Community Development Block Grant Action Plan and authorize the City Manager to negotiate and execute related documents, agreements, and modifications.
CITY MANAGER RECOMMENDATION
The City Manager recommends holding the public hearing to consider amending the FY 2019-2020 CDBG Action Plan. I recommend the proposed uses of the additional CDBG plan. It meets the goals of the Council in meeting different needs of the community during the COVID 19.
Respectfully submitted,
Debbie Potter, Community Development Director
By:
Lisa Fitts, Housing Authority Management Analyst
Financial Impact section reviewed,
Nancy Bronstein, Human Resources Director and Interim Finance Director
Exhibits:
1. Revised Citizen Participation Plan
2. Draft Emergency Rent Relief Guidelines
3. Draft Emergency Shelter Guidelines
cc: Eric Levitt, City Manager
Social Service Human Relations Board