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HomeMy WebLinkAboutAgenda Report - April 15, 2020 G-01 PHAGENDA ITEM o-l Crrv op Lou C ourucrr C oru ruuNrcATroN IM AGENDA TITLE: MEETING DATE: PREPARED BY: Public Hearing to Consider Adopting a Resolution Approving the Draft 2020-2021 Annual Action Plan for the Community Development Block Grant (CDBG) Program March 18,2020 Community Development Department RECOMMENDED ACTION Public Hearing to consider a resolution approving the Draft 2020- 2021 Annual Action Plan for the Community Development Block Grant (CDBG) program. BACKGROUND INFORMATION A public hearing is required as part of the federal requirements under the US Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG) program. Overview The City of Lodi (City) receives an annual allocation of funds from HUD under the CDBG program. ln the 2020-2021 program year, the City will receive $647,277 in CDBG entitlement funds from HUD. The primary purpose of this program is to improve the quality of life for low- and moderate-income persons, households, and neighborhoods by supporting public services, public facilities, crime prevention, access for disabled persons, affordable housing, and economic development. The City adopts a five-year Consolidated Plan, as required by HUD, which lays out how the City plans to use the funds through strategies and goals that improve quality of life in Lodi and address community needs. Each year the City prepares an Annual Action Plan that identifies the services and projects to fund that will meet these Consolidated Plan goals. As part of this planning process, the City gathers public comment on the community needs and recommended activities to meet those needs. Applications for funds are scored by staff and the Lodi lmprovement Committee (Committee). Activities that further the City's five-year Consolidated Plan goals and meet priority community needs are given the highest priority for funding. This Draft 2020-2021 Annual Action Plan covers the second program year of the five-year 2019-2023 Consolidated Plan cycle. AnnualAction Plan City's CDBG Allocation Policies and Practices: City Council policy states that 60 percent of awarded CDBG funds will be allocated to City-sponsored projects, and that the remaining 40 percent will go toward community-based organizations (CBO). City- sponsored projects also receive priority ranking over CBO projects. The Lodi lmprovement Committee performs scoring for CBO projects only. Furthermore, HUD guidelines limit public services activities to 15 percent of the total grant amount and administrative activities to 20 percent of the total grant amount. tu Steve SchlFrttfier (Apr 9,2020)APPROVED: Stephen Schwabauer, City Manager PH 2020-21 AAP CDBG Program Page 2 of 4 Based on the 9647,277 allocation, the distribution of funds will be as follows: Administration $129,455 (20% Cap) Public Service $97,091 (15% Cap) Capital Proiects $420.731TOTAL 9647,277 The City received eight project applications from CBOs, requesting over $185,000 in social service-type activities and $1 5,740 in planning and administration for fair housing-related projects. The amount requested in social service activities exceeded the $97,091 available under the public services cap. To determine which proposed projects to fund, the Lodi lmprovement Committee and City staff evaluated and scored each application using the following criteria: . Seruing Priority Populations. Programs and projects were evaluated on whether they serve targeted priority populations, as identified in the Consolidated Plan. . Activity Need and Justification Activities were evaluated on their ability to address a significant community need and their benefit to very low-income persons. Readrness to Proceed. Programs and projects were evaluated based on their feasibility of implementation, overall and within the allotted time frame. Cosf Reasonableness and Effectiveness. Budgets were reviewed to determine completeness and reasonableness of all costs related to the request for CDBG funding. Organizations applying for service funding were also evaluated on their ability to become self-sustaining. Activity Management and lmplementation. Applicants were evaluated on past experience, administrative capacity, and financial management. Past Performance. Applicants who previously received CDBG funds from the City were evaluated on their reporting and timely expenditure of funds. Note: Additional detail on applicants and recommendations can be found in Exhibit A (Summary/Ranking of Applications Received). CDBG Funding Recommendatlons The draft Annual Action Plan contains recommendations to Council that outline how the City will allocate funds to projects for the 2020-2021 program year. Funding recommendations are grouped into the following categories: Program Administration, City Capital projects, CBO Capital projects, City Service programs, and CBO Service programs. The Lodi lmprovement Committee and City staff have provided two funding recommendations for CBO Service programs and City Service programs for the 2020-2021 program year. The 2020-2021 program year recommendations are as follows: Lodi lmprovement Committee Recommendation - without Graffiti Abatement Program Administration $1 29,455. CDBG Program Administration $113,715. San Joaquin Fair Housing $15,740 City Capital Projects. Public Works - Alley lmprovements $314,991 CBO Capital Projects. Salvation Army: HVAO/Refrigerator Repairs $105,740 a a PH 2020-21 AAP CDBG Program Page 3 of 4 City Service Programs. GraffitiAbatement $0 CBO Service Programs $97,091. LOEL Foundation - Meals on Wheels Program $10,000. Second Harvest Food Bank - Food Assistance Program $10,000. Ready to Work - Lodi Employment and Support Effort $10,000. CA Human Development - lmmigration Expansion Program $29,000. Community Partnership for Families - Family Resource Center and Youth Program $38,091 The Salvation Army: HVAC/Refrigerator Repairs project was originally funded in the 2019-2020 program year; however, the project was delayed and rescheduled to be completed in the 2020-2021 program year. Funds for this project were transferred to a City Capital lmprovement project that could more readily spend the funds in 2019-2020. The Committee's recommendation allocates no CDBG funds ($0) to the City's graffiti abatement program; however, the Committee does not want to see the program go away but rather to have it funded with other permanent City funds. The Committee stated that the graffiti abatement program is important for reducing youth gang activity and maintaining the appearance and condition of the Heritage District. As such, the Committee would like to see the program become a permanent City-funded program, while leaving more CDBG funds available for newer or short-term priority projects. Staff Alternative Recommendation - with Graffiti Abatement: City Service Programs. GraffitiAbatement$30,000 CBO Service Programs $67,091. LOEL Foundation - Meals on Wheels Program $10,000. Second Harvest Food Bank - Food Assistance Program $10,000. Ready to Work - Lodi Employment and Support Effort $10,000. CA Human Development- lmmigration Expansion Program $0. Community Partnership for Families - Family Resource Center and Youth Program $37,091 Note that the graffiti abatement program was initially started with CDBG funds and over the last few years has gradually received fewer CDBG funds while receiving more from the City's general fund. Without CDBG funding, the City would have to find another source of funds or eliminate the program. The only available City funding is from the generalfund. As such, staff recommends that LOEL, Second Harvest Food Bank, and Ready to Work all receive $10,000, while Community Partnership for Families receives $37,091 and the City's GraffitiAbatement program receives $30,000. ln this scenario, California Human Development would not receive funding because staff scoring of its application demonstrates that the proposed immigration program is less of a Consolidated Plan priority, compared to other funded programs that are more closely connected with the City's priorities. This alternative reflects the Committee's application scores and ranking (with the exception of the California Human Development application) and the Committee's preference to support the Ready-To- Work program, which assists Lodi's homeless, and fits the parameters of projects being funded at a minimum of $10,000 to cover administrative burden. Community Engagement The process of developing the Draft2020-2021 Annual Action Plan has involved various instances of community outreach and public involvement. Outreach included a workshop which focused on prioritizing funding and community needs; consultations with local organizations and stakeholders; Lodi PH 2020-21 AAP CDBG Program Page 4 of 4 lmprovement Committee meetings that encouraged citizen participation and public comment; a 30-day public review period for the draft Annual Action Plan documents; attendance at a community event to solicit feedback from priority populations; and public hearings to allow for public feedback after the release of the Draft2020-2021 AnnualAction Plan. Next Steps Upon completion of the initial public hearing on April 15,2020, the Final 2O2O-2O2| AnnualAction plan and will be brought back for final comment and approval at a public hearing on May 6, 2020. HUD recently announced that it will provide additional emergency grant funds to assist communities in addressing the impact of COVID-19. As part of this supplemental funding, HUD is extending the submission dates for the Annual Action Plan and modifying the processes to expedite the updating of yearly plans. Consultant staff will work with the Community Development Department to determine how the supplement funds might be used and will provide an update to City Council of any such proposed plans. Per HUD's recent announcement, the latest date that the Annual Action Plan may be submitted is August 16,2020. Regardless of this tentative submittal, the program year will begin July 1,2020. FISCAL IMPAGT: CDBG funds are federalfunds. Capital improvements allow for maintenance costs to be reduced. Administration costs are paid via a 20 percent set-aside of the grant funds. FUNDING AVAILABLE $647 ,277 - 2020-2021 Community Development Block Grant Allocation A^"1o, -V.-- Andrew Kels (Apir a,Zôz6f Andrew Keys, Deputy City Manager ,.7"-,0ê//ã 't,,r* John R. Della Monica, Jr. {Apr 8, 2020) John R. Della Monica, Jr. Community Development Director Exhibit A: Summary/Ranking of Applications Received CDBG PUBLIC SERVICES APPLICANTS Final Scores (Out of 127) Amount Requested LIC Recommended Amount Staff Alternative Amount 1 Community Partnerships for Families 120 $50,000 $38,091 $37,091 2 Second Harvest Food Bank 117 $10,000 $10,000 $10,000 3 LOEL Foundation 111 $10,000 $10,000 $10,000 4 CA Human Development 103 $31,147 $29,000 $0 5 Lodi Boys and Girls Club 101 $25,000 $0 $0 6 The Village 97 $46,800 $0 $0 7 Ready to Work 89 $18,265 $10,000 $10,000 8 Graffiti Abatement (City project) - - $0 $30,000 CDBG DRAFT ANNUAL ACTION PLAN PROGRAM YEAR 2020-2021 Presented by Community Development –Neighborhood Services Division April 15, 2020 CDBG PURPOSE The purpose of the Community Development Block Grant (CDBG) program is to revitalize low -and moderate-income neighborhoods, to expand affordable housing and economic opportunities and to improve community facilities and services. CDBG objectives include: Assisting low to moderate income residents Preventing slum and blight Providing decent housing Ensuring suitable living environments Supporting community development activities Supporting public services Each year the City is required to prepare an Annual Action Plan which is then submitted to the Department of Housing and Urban Development (HUD) to receive CDBG entitlement funds. The Annual Action plan provides: Detailed descriptions of the program year’s budget. Projects that will be funded through CDBG funds for that year. Description of community development and housing-related updates and plans for the program year. DRAFT 2020-2021 ANNUAL ACTION PLAN ANNUAL ACTION PLAN PROCESS The draft Annual Action Plan contains recommendations for potential CDBG-funded activities that will meet the needs identified in the five- year Consolidated Plan. Potential activities are selected through the following process: City staff gathers public comment on community needs and recommended activities to meet those needs. Applications for funds are scored by staff and the Lodi Improvement Committee (LIC). Activities that further the City’s five-year Consolidated Plan goals and meet priority community needs are given the highest priority for funding. Recommendations are presented to Council for approval. 2020-2021 CDBG BUDGET HUD has notified the City that it will be receiving $647,277 in 2020-2021 entitlement CDBG funds. The program year will begin on July 1, 2020 •15% Cap on Public Service Activities •20% Cap on Planning and Administration Administration $129,455 (20% Cap) Public Service $97,091 (15% Cap) Capital Projects $420,731 TOTAL $647,277 2020-2021 FUNDING RECOMMENDATIONS PROGRAM ADMINISTRATION $129,455 City Program Administration ($113,715) San Joaquin Fair Housing ($15,740) CITY CAPITAL PROJECTS ($314,991) Public Works –Alley Improvements ($314,991) CBO CAPITAL PROJECTS ($105,740) Salvation Army: HVAC/Refrigerator Repairs ($105,740) Funding recommendations are grouped into the following categories: Program Admin, City Capital projects, CBO Capital projects, City Service programs, and CBO Service programs. FUNDING RECOMMENDATIONS (CONT.) LIC Recommendation: CITY SERVICE PROGRAMS Graffiti Abatement ($0) CBO SERVICE PROGRAMS ($97,091) LOEL Foundation: Meals on Wheels Program ($10,000) Second Harvest Food Bank: Food Assistance Program ($10,000) Ready to Work –Lodi Employment and Support Effort ($10,000) CA Human Development: Immigration Expansion Program ($29,000) Community Partnership for Families: Family/Youth Resource Center ($38,091) The LIC and City staff have provided two separate funding recommendations for CBO Service programs and City Service programs for the 2020-2021 program year: FUNDING RECOMMENDATIONS (CONT.) Alternative Staff Recommendation CITY SERVICE PROGRAMS Graffiti Abatement ($30,000) CBO SERVICE PROGRAMS ($67,091) LOEL Foundation: Meals on Wheels Program ($10,000) Second Harvest Food Bank: Food Assistance Program ($10,000) Ready to Work –Lodi Employment and Support Effort ($10,000) CA Human Development: Immigration Expansion Program ($0) Community Partnership for Families: Family Resource Center & Youth Program ($37,091) RECOMMENDED ACTION Conduct a Public Hearing to consider a resolution approving the draft 2020-2021 Annual Action Plan for the Community Development Block Grant (CDBG) program. Upcoming Timeline: Public Hearing on May 6, 2020 to approve final AAP Submit to HUD by May 15, 2020 Program Year Begins: July 1, 2020 Questions or Comments?