MEETING DATE:
March 22, 2022
SUBJECT:
Title
PROPOSED USES OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR PROGRAM YEAR 2022/2023
Body
Recommendation
Recommendation
RECEIVE public input and provide guidance on the proposed uses of Federal Community Development Block Grant funds for the Program Year 2022/2023 Annual Action Plan.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Quality of Life
Relevant Department Goal
No applicable
Executive Summary
The U.S. Department of Housing and Urban Development (HUD) issues Community Development Block Grant (CDBG) funds for the development of viable urban communities, by providing decent housing, suitable living environments, and expanded economic opportunities, primarily for low- and moderate-income persons. Based on communications with HUD, the City expects to receive $841,819.92 in CDBG funds for Program Year (PY) 2022/2023.
In order to receive CDBG funding, the City must have a five-year Consolidated Plan (ConPlan) and an Annual Action Plan (AAP). The AAP is required by HUD as part of the CDBG program and identifies eligible activities the City will implement in the program year to address the current needs in the community and the goals identified in the ConPlan.
Each year during the development of the AAP, the City consults with social service providers in San Marcos to gather input on the needs of their clientele. Due to the impacts of COVID19 this past year, services providers saw a significant increase in requests for help to meet basic needs such as food, housing, and shelter assistance.
No formal action is being requested at this time. Based on input received during the public hearing, Staff will complete a draft copy of the PY 2022/2023 AAP and make it available to the public for comment for a minimum of thirty days. The draft PY 2022/2023 AAP along with comments received will then be provided to the City Council for final approval at a later date.
Discussion
In order to receive CDBG funding, the City must have a five-year Consolidated Plan (ConPlan) and an Annual Action Plan (AAP). The current ConPlan is for Program Years 2020 through 2024 and identified the following goals:
• ADA Improvements to City Facilities and Infrastructure
• Affirmatively Furthering Fair Housing
• Non-Profit Coordination
• Community Facilities
The purpose of the PY 2022/2023 AAP is to identify the actions, activities, and the specific resources that will be used to address the current community needs and the goals identified in the Consolidated Plan. The authorizing statute of the CDBG program requires that each activity funded in the AAP, except for program administration and planning activities, must meet one of three national objectives which are:
• Benefit to low- and moderate- income (LMI) persons;
• Aid in the prevention or elimination of slums or blight; and
• Meet a need having a particular urgency (referred to as urgent need).
The LMI national objective is often referred to as the “primary” national objective because the statute requires that recipients expend 70 percent of their CDBG funds to benefit LMI persons. Low- and moderate-income is defined by HUD as an annual household income that is equal to or less than 80% of the County’s Area Median Income (AMI).
To determine the current needs of the community for the PY2022/2023 AAP, the City held a virtual needs assessment meeting on February 19, 2022. This year, 31 service providers and agencies were invited to attend the meeting to share the needs of their clients and view a presentation from 2-1-1 San Diego and the San Marcos Community Foundation. A Needs Assessment Survey was also posted on the City’s website.
The most urgent needs presented were for assistance with food, housing, and rental assistance. Other needs presented were for child services, health, and security
Based on input received, Staff recommends the following projects/activities for CDBG funding for PY 2022/2023:
Project Category Description
Non-Profit Coordination Public Services Provide assistance with basic needs
Affirmatively Furthering Public Services Mandated Fair Housing Program
Fair Housing
Community Facilities Create Suitable Improvements to Public
Living Environments Infrastructure, Facilities,
Parks and/or Programs
ADA Improvements to City Create Suitable Accessibility Improvements to Public
Facilities and Infrastructure Living Environments Infrastructure and/or Facilities
Program Administration N/A Program Administration, Planning,
Reporting, and Compliance
Note: HUD limits public service activities to fifteen percent and Program Administration to twenty percent of the Cities yearly allocation.
The City is currently funding rental assistance through the CDBG program utilizing $1,051,615 of COVID_CV funds which are already programmed. The City also provides $125,000 to the Alliance for Regional Solutions to assist persons experiencing homelessness. The City has also been helping low- and moderate-income residents obtain housing through the production of affordable housing by partnering with housing developers.
No formal action is being requested at this time. Based on input received at the public hearing, Staff will complete a draft copy of the PY 2022/2023 AAP and make it available to the public for comment for a minimum of thirty days. The draft PY 2022/2023 AAP along with comments received will be provided to City Council for final approval at a later date.
Environmental Review
There is no environmental review associated with the AAP approval process.
Fiscal Impact
Pending funding of the CDBG program and congressional approval, it is estimated that the City will receive approximately $841,819.92 in FY 2022/2023 which will be budgeted in CDBG Fund 207 and the CIP budget. The City will not be eligible to receive the CDBG grant funds if an AAP is not submitted to HUD.
Attachment
none
Prepared by: Veronica Medina, Housing Specialist
Submitted by: Veronica Medina, Housing Specialist
Reviewed by: Tess Sangster, Community & Economic Development Director
Approved by: Jack Griffin, City Manager