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HomeMy WebLinkAboutAgenda Report - May 6, 2020 G-01 PHG-l Crrv op Loor C oulvclr CopTMUNI cATIoN fM AGENDA TITLE: MEETING DATE: PREPARED BY: Public Hearing to Consider Adopting a Resolution Approving the final 2020-2021 Annual Action Plan for the Community Development Block Grant (CDBG) Program May 6, 2020 CDBG Program Specialist RECOMMENDED ACTION Adopt a resolution approving the final 2020-2021Annual Action Plan for the Community Development Block Grant (CDBG) program BAGKGROU ND IN FORMAT¡ON 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. ïhe 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. This final 2020-2021Annual Action Plan covers the second program year of the five-year 2019-2023 Consolidated Plan cycle. Annual Action Plan 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). 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. Based on the $647,277 allocation, the distribution of funds will be as follows Administration $129,455 (2Qo/o Cap) Public Service $97,091 (15% Cap) Capital Proiects $420,731 $647,277TOTAL APPROVED City Manager 05-06-20 AAP CDBG Program Page 2 of 3 CDBG Funding Recommendations The final Annual Action Plan contains recommended funding allocations, which 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. Selected projects and allocation amounts were determined through an application process in January 2020. Applications that were received for the 2020-2021 program year were reviewed and scored by the Lodi lmprovement Committee and CDBG program staff. Funding recommendations were made to City Council on April 15, 2020. Council reviewed and discussed the proposed recommendations and recommended the following allocations: Program Administration $1 29,455. CDBG Program Administration $113,715. San Joaquin Fair Housing $15,740 City Capital Projectso Public Works - Alley lmprovements $314,991 CBO Capital Projects. Salvation Army: HVAC/Refrigerator Repairs 9105,740 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 910,000o Ready to Work - Lodi Employment and Support Effort 910,000. CA Human Development - lmmigration Expansion Program g0 o Community Partnership for Families - Family Resource Center and Youth Program $37,091 Gommunity Engagement The process of developing the 2020-2021Annual 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 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 2020-2021Annual Action Plan. Next Steps 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 AnnualAction Plan may be submitted is August 16,2020. Regardless of this tentative submittal, the program year will begin July 1,2020. 05-06-20 AAP CDBG Program Page 3 of 3 FISCAL IMPACT:CDBG funds are federal funds. 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 Andrew Keys Andrew Keys, Deputy City Manager John R. Detla Monica, Jr. John R. Della Monica Jr. Community Development Dírector CDBG FINAL ANNUAL ACTION PLAN PROGRAM YEAR 2020-2021 Presented by Community Development –Neighborhood Services Division May 6, 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. 2020-2021 ANNUAL ACTION PLAN ANNUAL ACTION PLAN PROCESS The final 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.) 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) Community Partnership for Families: Family Resource Center & Youth Program ($37,091) The recommendations for CBO Service and City Service programs are listed below for the 2020-2021 program year. Combined, they total $97,091: RECOMMENDED ACTION Approve the final 2020-2021 Annual Action Plan for the Community Development Block Grant (CDBG). Approval will allow the City to submit the final AAP to the Department of Housing and Urban Development (HUD) by May 15, 2020. Upcoming Timeline: Submit to HUD by May 15, 2020 Program Year Begins: July 1, 2020 Questions or Comments?