MEETING DATE:
APRIL 23, 2024
SUBJECT:
Title
RESOLUTION NO. 2024-9282 - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM YEAR 2024-2025 ANNUAL ACTION PLAN APPROVAL
Body
Recommendation
Recommendation
1. OPEN, CONDUCT and CLOSE a public hearing on the proposed uses of Federal Community Development Grant funds for the FINAL 2024-2025 Annual Action Plan.
2. ADOPT a resolution approving the Community Development Block Grant Program Year (PY) 2024/2025 Annual Action Plan, authorize submission of the plan to the U.S. Department of Housing and Urban Development, and authorize the City Manager to approve and execute all documents related to the implementation of said Plan.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Quality of Life
Executive Summary
The U.S. Department of Housing and Urban Development (HUD) annually provides funding to eligible jurisdictions through the federal Community Development Block Grant (CDBG) entitlement program for the development of viable urban communities, by providing decent housing, suitable living environments, and expanded economic opportunities, primarily to low- and moderate-income persons.
An Annual Action Plan (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 five-year Consolidated Plan (ConPlan). The City gathered input from the community and based on the input received, drafted the final PY2024-2025 AAP for consideration and approval.
The City is expected to receive $710,208 in CDBG funds, an estimate based on the prior year allocation, and anticipates that $1,245,279 will be available from previous program years (2018-2023) bringing the estimated total CDBG funds available to $1,955,487 to fund projects that support decent housing and suitable living environments primarily for the City’s low- and moderate-income residents.
Discussion
To receive CDBG funding, the City must have a five-year ConPlan and an AAP. The current ConPlan was approved on May 12, 2020, and 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
From January to April 2024, the City shared a virtual needs assessment survey, conducted several outreach activities, and held a public hearing on March 26, 2024, to determine the needs of the community for the PY 2024-2025 AAP. The survey yielded 289 responses ranking the highest needs as follows: community services and community facilities, followed by affordable housing and then economic development.
A draft of PY 2024-2025 AAP, including the identified community needs, was published on the City’s website on March 23,2024 for public review and comment. The public comment period will close at the end of the Public Hearing on April 23, 2024, for approval of the PY 2024-2025 Annual Action Plan.
The CDBG program can utilize funds through the following activities:
• Program Administration, which can include Fair Housing Services, can utilize up to twenty percent of the annual CDBG allocation. The City contracts with Legal Aid Society of San Diego to provide fair housing education, workshops, tenant and landlord mitigation and legal support for low-income families and individuals with a fair housing violation. The PY 2024-2025 AAP estimates allocating $142,041 to administration.
• Public Service Programs can utilize a maximum of 15 percent of the annual CDBG allocation to fund non-profit and social service providers to serve low- and moderate-income clientele.
The 2024-2025 AAP estimates allocating $106,500 to public service programs.
• Community Development, also known as Capital Projects in the AAP, are not limited to a maximum allocation but can include infrastructure improvements and cannot include maintenance and repair of public facilities. The 2024-2025 AAP estimates allocating $461,636 to fund capital projects.
Staff Recommendation. Based on the estimated funds available and the current needs of the community, staff recommends funding the following projects/activities for PY 2024-2025:
|
Program |
CDBG Service Category & Brief Description |
Funding |
|
Program Administration |
Program Administration including staff, training, and ConPlan development |
$142,041 |
|
Public Service Providers |
|
|
Affirmatively Furthering Fair Housing |
Fair Housing Services-Legal Aid Society of San Diego |
$20,000 |
|
Boys & Girls Club |
Multi-week Summer Day Camp for low-income youth |
$20,000 |
|
COSM Parks & Recreation |
Senior nutrition program |
$10,000 |
|
Community Resource Center |
Victim advocacy for San Marcos LMI residents |
$24,500 |
|
ElderHelp |
Housing placement and support services for low-income and/or disabled seniors |
$12,000 |
|
Meals-On-Wheels |
Nutritional meal delivery for homebound, food insecure seniors |
$20,000 |
|
Public Service Provider Total |
$106,531 |
|
Community Facilities/ Capital Improvement |
Senior Activity Center HVAC planning and construction |
$461,636 |
|
Proposed PY 2024-2025 CDBG Spending Total |
$710,208 |
|
Prior Year Funds--Community Facilities |
Richmar Park, Phase 2 Improvements |
$839,776 |
|
Prior Year Funds--Community Facilities |
Senior Activity Center HVAC |
$405,503 |
|
Total |
$1,955,487 |
Capital Projects. Prior year funding was reserved over the last two program years to complete the Richmar Park, Phase 2 to include a shade structure, half basketball court, sidewalk, and landscaping totaling $839,776. The bidding process is anticipated to begin in the next few months and construction is expected to commence by 2025. Staff also recommends allocating additional capital funds from the current program year, $461,636 to support the planning and construction of a new HVAC system at the Senior Center, which dually serves seniors and is one of the City’s designated cool-zones in our community. Additional, prior year funds totaling $405,503, are recommended to support the Senior Center capital project, as the project plan is incomplete, but staff anticipate the project estimate to exceed $1 million, thus resulting in multi-year funding set aside to complete the project.
Program Admin. The City is in it’s final year of the Consolidated Plan and in collaboration with a contractor, will focus on conducting outreach, community feedback, and data collection to develop a new plan over the next twelve months. Simultaneously, HUD is monitoring prior years of the City’s CDBG Program. Upon completion of the monitoring, staff may return to Council if prior year amendments are required.
Staff will update the final draft PY 2024-2025 AAP based on input received and direction provided by City Council during the public hearing prior to finalizing the plan and submitting to HUD. Upon approval by HUD, the funds will become available, through a reimbursable grant, beginning July 1, 2024.
Environmental Review
There is no environmental review associated with the AAP approval process.
Fiscal Impact
There is no impact to the Fiscal Year (FY) 2024-25 Budget for the adoption of this resolution. Once HUD announces the annual allocation for the City, staff will make the appropriate adjustments and budget for use in the CDBG Operating Budget (Fund 207) and the Capital Improvement Program Budget. The City will not be eligible to receive the CDBG grant funds if an AAP is not submitted to HUD.
Attachment(s)
1. PY 2024-2025 Annual Action Plan Final Draft
2. 2024-2025 CDBG Public Service Applicants
3. Resolution
Prepared by: Quinton Hufferd, Management Analyst
Submitted by: Sylvia Solis Daniels, Housing & Neighborhood Services Manager
Reviewed by: Tess Sangster, Communications and Economic Development Director
Approved by: Michelle Bender, City Manager