Title
Public Hearing to Consider Approving the Housing and Community Development Needs Statement for the Community Development Block Grant (CDBG) Annual Plan for Fiscal Year 2022-23. (Community Development 20361841)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
As an entitlement recipient of CDBG funds, the City of Alameda (City) receives approximately $1.15 million per year from the U.S. Department of Housing and Urban Development (HUD).
As a condition of funding eligibility, CDBG regulations require that two public hearings be held: (1) determine housing and community development needs/decide on local projects and priorities that would benefit from funding; and (2) development of proposed activities/review of program performance. This public hearing is designed to obtain residents’ views and respond to questions concerning o housing and community development needs relating to the action plan (Action Plan) described below for the Fiscal Year (FY) 2022-23 CDBG Annual Plan, which will be presented to City Council in May 2022. In 2020, the City prepared its Five-Year Consolidated Plan (Consolidated Plan), a planning document required by HUD, which is designed to assist the City with assessing its affordable housing and community development needs and market conditions so that it may make data-driven, place-based investment decisions. The Consolidated Plan identified the following priorities: affordable housing, homelessness, reducing housing discrimination, 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 $1.15 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 Action Plan detailing the programs, activities, and resources to address the housing and community development needs identified in the 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 FY 2022-23. The Action Plan will identify local priorities and uses for two sources of federal funds: CDBG and HOME Investment Partnership Program (HOME) funds. 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 must 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. Separate from complying with the Brown Act, the City published a notice in the December 3, 2021 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 Consolidated Plan contains the Five-Year Strategic Plan, which 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 Consolidated Plan included 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.
To support the City’s effort to identify the public service needs of the community (one of six priorities/goals in the Consolidated Plan, Exhibit 3), the Social Service Human Relations Board (SSHRB) held a meeting on December 9, 2021, and prepared a recommendation for the FY 2022-23 Needs Statement, which identifies the City’s priority needs (Needs Statement), for approval by the City Council (Exhibit 1). The approved Needs Statement will be included in the upcoming CDBG FY 2022-23 Notice of Funding Availability (NOFA)/Request for Proposals (RFP). Since SSHRB will kick off its community wide needs assessment in spring 2022, SSHRB recommended that the service provider agreements for the upcoming NOFA/RFP be for a single year so that next year’s RFP priorities can be informed by the results of the community needs survey. The FY 2022-23 NOFA is tentatively scheduled to be released in January 2022. The proposed Action Plan schedule is included as Exhibit 2 for reference only.
The City’s FY 2022-23 Action Plan will identify local priorities and uses of CDBG funds to address needs in eligible categories. Exhibit 3 includes the program goals designed to meet the following priorities: affordable housing, homelessness, reducing housing discrimination, other special needs, and non-housing community development, which includes public services, economic development, and public facilities and infrastructure.
ALTERNATIVES
• Staff recommends that City Council approve the Needs Statement (Exhibit 1) in support of the Consolidated Plan Priorities & Goals (Exhibit 3).
• 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 to include additional priorities or to remove proposed priorities prior to acceptance.
• City Council may decline to accept the Needs Statement.
FINANCIAL IMPACT
There is no financial impact from conducting a public hearing to determine FY 2022-23 housing and community development needs. Although HUD has not yet published the CDBG entitlement allocations for FY 2022-23, staff anticipates receiving approximately $1,150,000 in entitlement funds and $80,000 of program income. Program income is generated from repayments of principal and interest on outstanding CDBG loans. CDBG entitlement allocations for FY 2022-23 will be subject to future appropriations approval.
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. Additionally, the proposed action is statutorily exempt from the California Environmental Quality Act (CEQA) under section 15262 (feasibility and planning study) of the CEQA Guidelines.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Conduct Public Hearing to Consider Approving the Housing and Community Development Needs Statement for the Community Development Block Grant (CDBG) Annual Plan for Fiscal Year 2022-23.
CITY MANAGER RECOMMENDATION
The City Manager recommends conducting a Public Hearing to consider the Needs Statement for the CDBG Annual Plan for Fiscal Year 2022-2023.
Respectfully submitted,
Lisa Maxwell, Community Development Director
By,
Lisa Fitts, Community Development Program Manager
Financial Impact section reviewed,
Gerry Beaudin, Interim Finance Director
Exhibits:
1. Needs Statement
2. Action Plan Schedule
3. Consolidated Plan Priorities & Goals
cc: Eric Levitt, City Manager
Social Service Human Relations Board