BUDGET, FINANCE AND ECONOMIC DEVELOPMENT
POST-MEETING AGENDA
REGULAR MEETING
February 26, 2024, 12:00 p.m.
City Hall North Conference Room A
1600 Truxtun Avenue
Members
Andrae Gonzales
Eric Arias
Ken Weir
1. ROLL CALL
2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
b. Non-Agenda Item Public Statements
3. STAFF REPORT
4. ADOPTION OF MINUTES
a. Adoption of the January 29, 2024 regular meeting minutes Staff recommends adoption of minutes
5. NEW BUSINESS
a. Presentation on HOME-ARP - Notice of Funding Availability Award Recommendations
Staff recommends receive and file presentation.
1. Presentation provided by Economic and Community Development on
HOME-ARP
b. Annual Action Plan Process for FY 2024-25 HUD Applications (CDBG, ESG, HOME, HOPWA)
Staff recommends that the item be referred to the full Council.
6. COMMITTEE COMMENTS
7. ADJOURNMENT
ADMINISTRATIVE REPORT
MEETING DATE: February 26, 2024 AGENDA CATEGORY: Minutes TO: Budget, Finance and Economic Development Committee
FROM: Julie Drimakis, City Clerk
DATE: February 13, 2024
SUBJECT: Adoption of the January 29, 2024 regular meeting minutes
[Document Description]
RECOMMENDATION:
Staff recommends adoption of minutes
BACKGROUND:
FISCAL IMPACT:
COUNCIL GOAL:
Choose an item.
ATTACHMENTS:
January 29, 2024 minutes
1 BUDGET, FINANCE AND ECONOMIC DEVELOPMENT
MINUTES
REGULAR MEETING
January 29, 2024, 12:00 p.m.
City Hall North Conference Room A
1600 Truxtun Avenue
Members Present: Andrae Gonzales, Eric Arias
Members Absent: Ken Weir
Staff Present: Christian Clegg, City Manager
Josh Rudnick, Deputy City Attorney II
Julie Drimakis, City Clerk
Jenni Byers, Acting Economic Development Director
Mario Orosco, Budget Officer
Joe Conroy, Public Information Officer
Cecilia Greigo, Principal Planner (ECD)
Michelle Cruz, Management Assistant
Monica Medve, Planner II (ECD)
_____________________________________________________________________
1. ROLL CALL
2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
b. Non-Agenda Item Public Statements
3. ADOPTION OF MINUTES
a. Adoption of the November 27, 2023, agenda summary report Moved by: Eric Arias
Adoption of minutes
For (2): Andrae Gonzales, and Eric Arias
Absent (1): Ken Weir
Approved (2 to 0)
2 4. STAFF REPORTS
a. Staff Update on the Security Grant Program
Jenny Byers, Acting Economic and Community Development Director made staff comments.
Moved by: Eric Arias
Staff recommends receive and file
Approved
1. PowerPoint presentation Business Security Grant
5. NEW BUSINESS
a. Review of upcoming Committee Topics
Chair Gonzales asked for a conversation about P/Q Street Property.
Chair Gonzales asked to add his referral for timetables for development process be discussed in this Committee.
Committee Member Arias requested an update on East Hills Mall and an evaluation of the small infrastructure fund that is dedicated to Wards 1 and 2 while expanding that into more wards as necessary with more money.
Overview of where we are with CDBG (Community Development Block Grant) program.
Chair Gonzales would like to have a conversation about the Housing Trust fund.
Moved by: Eric Arias
Staff recommends receive and file
Approved
b. EOA Program Update
Principal Planner Cecelia Griego made staff comments and provided a PowerPoint presentation.
Chair Gonzales requested that we move to all TIF funding.
Committee Member Arias would like an update on the ballooning costs in the General fund.
3 Chair Gonzales asked if we could address the issues in 34th Street.
Rename it and move it down to 24th Street or 23rd Street.
Chair Gonzales requested ongoing revenue service for new businesses trying to come in to the downtown area.
Moved by: Andrae Gonzales
That item be referred to the full Council
Approved
1. PowerPoint presentation Economic Opportunity Area Plan and Program Update
6. COMMITTEE COMMENTS
7. ADJOURNMENT
Meeting was adjourned at 1:03 p.m.
_________________________
ANDRAE GONZALES, CHAIR
BUDGET, FINANCE AND ECONOMIC DEVELOPMENT COMMITTEE
ATTEST:
_________________________
JULIE DRIMAKIS, MMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
ADMINISTRATIVE REPORT
MEETING DATE: February 26, 2024 AGENDA CATEGORY: NEW BUSINESS TO: Budget, Finance and Economic Development Committee
FROM: Jennifer M. Byers, Acting Economic and
DATE: February 16, 2024
SUBJECT: Presentation on HOME – ARP Notice of Funding Availability Award Recommendations
HOME-ARP – Notice of Funding Availability Award Recommendations
RECOMMENDATION:
Staff recommends receive and file presentation.
BACKGROUND:
The HOME Investment Partnerships American Rescue Plan Program (HOME -ARP) provides funding to HOME participating jurisdictions to reduce homelessness and increase housing stabili ty. HOME -ARP provided $5 billion to assist individuals or households who are homeless, at risk of homelessness, and other vulnerable populations, by providing housing, rental assistance, supportive services, and non - congregate shelter to reduce homelessness and increase housing stability across the country.
In September 2021, HUD conditionally allocated $5,458,039 to the City of Bakersfield in HOME-ARP funds and provided guidelines on the requirements to prepare and submit an Allocation Plan. On March 22, 2023, the Bakerfield City Council approved the Fiscal Year 2021 -2022 Action Plan Amendment No. 5 and authorized the City Manager to execute all documents required to submit the HOME-ARP Allocation Plan to HUD.
On May 9, 2023, the City of B akersfield was notified by HUD that the HOME -ARP Allocation Plan was approved. Funding included the recommended eligible activities listed below, as well as $545,803 designated for program administration and planning.
Eligible Activities that may be funded with HOME-ARP include:
- Production or Preservation of Affordable Housing
- Tenant-Based Rental Assistance
- Supportive Services, including homeless prevention services and housing counseling - Purchase and Development of Non-Congregate Shelter
Funds must primarily benefit individuals and households in the following qualifying populations:
- People experiencing homelessness
- People at-risk of homelessness
- People fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking
- Other populations where providing supportive services or assistance under Section 212(a) of the Public Health and Welfare Act (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability - Veterans and families that include a veteran family member that meet one of the preceding criteria
On November 10, 2023, the City of Bakersfield released its Notice of Funding Availability (NOFA) to solicit proposals. The NOFA included the following allocations by eligible activity:
Activity Funding Amount
Supportive Services $575,784
Development of Affordable Housing $4,063,549
Non-Profit Capacity Building $272,901
Total $4,912,234
NOFA Results: Cumulatively, the NOFA was open for thirty-five (35) days. There were a total of ten (10) applications submitted: six (6) for the development of affordable housing, three (3) for supportive services, and one (1) for the nonprofit capacity building for a total of $9,509,485 in funding requests.
Consistent with the NOFA, applications were reviewed and scored by two internal staff members using the following criteria:
- Timeliness
- Consistency
- Capacity
- Completeness
- Compatibility
After review, staff recommends allocating funding to five (5) affordable housing projects and two (2) supportive services projects. No funding is recommended for non-profit capacity building projects, as the sole application received did not align with the objectives of the HOME-ARP program. Furthermore, staff is recommending a substantial amendment to the HOME-ARP Allocation Plan to allocate $201,016 of Non- Profit Capacity Building funding to Supportive Services to fully fund both Supportive Services applications.
This would result in $71,885 remaining for Non -Profit Capacity Building that staff proposes to release a second NOFA to provide opportunity for non-profits to benefit from the HOME-ARP program.
Staff has prepared the attached recommendations for funding. After today’s presen tation, staff will be contacting the proposed applicants to discuss next steps. Each project receiving a reserved allocation of funding will be subject to further underwriting and funding adoption by the Bakersfield City Council prior to officially receiving a commitment of funds.
FISCAL IMPACT:
The projects will be funded through the HOME American Rescue Plan and result in no General Fund Impact.
COUNCIL GOAL:
Safety and Resilience
ATTACHMENTS:
HOME-ARP Funding Recommendations
ADMINISTRATIVE REPORT
MEETING DATE: February 26, 2024 AGENDA CATEGORY: NEW BUSINESS TO: Budget, Finance and Economic Development Committee
FROM: Jennifer M. Byers, Acting Economic and Community Development Director DATE: February 21, 2024
SUBJECT: Annual Action Plan Process for FY 2024-25 HUD Applications (CDBG, ESG, HOME, HOPWA)
Annual Action Plan Process for FY 2024-25 HUD Applications (CDBG, ESG, HOME, HOPWA)
RECOMMENDATION:
Staff recommends that the item be referred to full Council.
BACKGROUND:
The United States Department of Housing and Urban Development (HUD) has designated the City of Bakersfield as an Entitlement City. Therefore, HUD provides annual funding to improve low -income neighborhoods throughout the city pursuant to the federal programs noted below. As is the case each year, HUD had not yet released the entitlement amount for FY 2024-25 as of the preparation of this memo.
However, there is an expectation that Congress will maintain previous year funding levels for all programs.
The table below shows the anticipated HUD funds for all projects using last year’s entitlement as the current projection.
Federal Program Previous FY23-24 Allocation
Community Development Block Grant (CDBG) $3,878,710*
Home Investment Partnership (HOME) $1,801,273*
Emergency Solutions Grant (ESG) $334,506
Housing Opportunities for Persons with AIDS (HOPWA) $1,080,283 Total $7,094,772
*Includes an additional $8,000 in program income for CDBG and $80,000 for HOME
Applications Received: Each year, the City issues a Notice of Funding Ability (NOFA) for the annual entitlement funds listed in the table above. The deadline for the submission of CDBG, HOME, and ESG applications for FY 2024 -25 funding was December 21, 2023. The requested projec ts are intended to improve the quality of life and infrastructure for low -income persons and neighborhoods in the City of Bakersfield. This year the City received 11 applications from non -profit and private entities totaling $4,584,918, and 7 applications from City Departments totaling $6,958,640. The total request for all grants, from both City and Non-City applicants, was $11,543,558. The application details are listed in Attachment C.
NEW Recommendation: Pursuant to federal requirements, staff conducted a comprehensive review and evaluation of all applications for funding. Staff has prepared the attached Memorandum and recommended budget for consideration by the Budget and Finance Committee. Staff anticipates that the FY 2024-25 HUD Action Plan will be considered by the City Council on April 24, 2024. This is the fifth funding year of the 2020-2025 Consolidated Plan.
Therefore, Staff recommends that the Committee forward the reviewed allocations for the CDBG, HOME, ESG and HOPWA funds as listed in attac hments A and B for approval of the full Council. Subject to appropriate administrative adjustments made to account for the final allocations provide by the Department of Housing and Urban Development before April 24, 2024.
FISCAL IMPACT:
No fiscal impact.
COUNCIL GOAL:
Community Character & Quality of Life
ATTACHMENTS:
FY 24/25 Recommended CDBG Budget
FY 24/25 Recommended ESG/HOME/HOPWA Budget
Overall HUD Project Applications Table 24-25 (Reference)
Description FY 24-25
Requested
FY 24-25
Projected
FY 23-24
Funded Ward
CDBG Entitlement 3,870,710 3,870,710 3,870,710 Program Income (Projected) 8,000 8,000 8,000 Total Available Resources 3,878,710 3,878,710 3,878,710 Administration (not to exceed 20%) 774,142 774,142 774,142 Section 108 Loan Payment on $4.1M - - - Section 108 Loan Payment on $800K - - 61,854 Total Admin and Debt Payment 774,142 774,142 835,996 Total Resources minus Admin and Debt Payments 3,104,568 3,104,568 3,042,714 PUBLIC SERVICES (MAX. 15%) $580,606
Fair Housing Program Services 100,000 100,000 100,000 All Bakersfield Senior Center Support Services 150,000 90,000 90,000 1 Habitat for Humanity Workforce Development 50,000 All Total Public Service Projects 250,000 190,000 240,000 Home Access Rehabilitation 50,000 50,000 50,000 All East Truxtun Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 649,000 649,000 390,000 2 Oleander Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 649,000 649,000 200,000 2 Belle Terrace Area Street Light Upgrade 650,000 686,520 - 2 Alta Vista Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 649,000 649,000 700,000 3 East Truxtun Area Street Light Upgrade 537,840 - - 2 Q Street Area Pedestrian Improvements 3,773,800 - - 3 Community Action Partnership of Kern (CAPK) Friendship House Solar Installations 231,048 231,048 1 Benton Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. 350,000 1 Sunset Area Lighting Upgrade 462,714 2
Holtby Road Lighting Project 650,000 2
Total Public Facilities 7,189,688 2,914,568 2,802,714 Total Requests for Public Services + Projects 7,439,688 3,104,568 3,042,714 Total Available Resources Remaining (4,335,120) - - PROPOSED CDBG BUDGET FY 2024-25
RESOURCES
ADMINISTRATION AND DEBT SERVICE
PUBLIC FACILITIES
PROPOSED HOME BUDGET FY 2024-25
HOME Entitlement 1,721,27 3$ 1,721,27 3$ 1,721,273$ Program Income 80,000 $ 80,000 $ 80,000$ Total Available Resources 1,801,273$ 1,801,273 $ 1,801,273$ Administration (not to exceed 10%) 172,127$ 172,12 7$ 172,127$ Total Resources minus Admin 1,629,146$ 1,629,146 $ 1,629,146$ CHDO Set Aside (15%) 258,191$ 258,191$ 258,191$ Acquisition/Construction/Rehabilitation/Downpayment - $ 1,112,95 5$ 1,331,016$ Niles Street Housing Authority of County of Kern* 1,800,000$ 1,399,260$ CapK Tenant Based Rental Assistance* 1,200,000$ 1,000,000$ VCCDC 258,000$ 258,000 $
GEAHI II 4th Street Senior Apartments* 258,191$
Total (All Requests) 3,258,000$ 1,629,146 $ 3,988,467$ Total Available Resources Remaining (1,628,854)$ (0)$ PROPOSED ESG BUDGET FY 2024-25
ESG Entitlement 334,506 $ 334,506 $ 334,506$ Administration (not to exceed 7.5%) 25,087$ 25,08 7$ 25,087$ Total Resources minus Admin 309,419$ 309,419 $ 309,419$ Flood Ministries - Street Outreach* 25,000 $ 25,000 $ 25,000$ The Open Door Network - Shelter* 180,000 $ 70,000 $ 70,000$ The Open Door Network - Rapid Rehousing & Prevention* 498,430 $ 109,419 $ 109,419$ The Mission at Kern County - Shelter* 97,500 $ 70,000 $ 70,000$ The Open Door Network (AAFV) - Shelter 44,940$ 35,000 $ 35,000$ Total (All Requests) 845,870$ 309,419 $ 309,419$ Total Available Resources Remaining (536,451)$ - $ - $ PROPOSED HOPWA BUDGET FY 2024-25
HOPWA Entitlement 1,080,28 3$ 1,080,28 3$ 1,080,283$ Administration (not to exceed 3%) 32,408$ 32,408 $ 32,408$ Total Resources minus Admin 1,047,875$ 1,047,875 $ 1,047,875$ Kern County Public Health 1,047,87 5$ 1,047,87 5$ 1,047,87 5$ Total (All Requests) 1,047,875$ 1,047,875 $ 1,047,875$ Total Available Resources Remaining -$ - $ - $
RESOURCES
Description FY 24-25
Requested
FY 24-25
Projected
FY 23-24
Funded
RESOURCES
ADMINISTRATION AND DEBT SERVICE
PROJECTS
Description FY 24-25
Requested
FY 24-25
Projected
FY 23-24
Funded
* Funded with prior year funding.
RESOURCES
ADMINISTRATION AND DEBT SERVICE
HOPWA SPONSOR/PROVIDER
ADMINISTRATION
PROJECTS
Shelter/Outreach Cap $200,703.60
Description FY 24-25
Requested
FY 24-25
Projected
FY 23-24
Funded
Attachment C
Overall HUD Project Applications for FY 2024-25 Funding
FY 2024-25 Community Development Block Grant Applications (CDBG)- Outside Public Services & Facilities HUD
Category Applicant Ward Proposal Total Cost FY 23-24
Funded
HUD
Eligible
Staff
Rating
CD Recommendation
and Notes
Proposed
for Budget
Public
Services
Bakersfield
Senior
Center
Ward 1 Public Services $150,000 $90,000 Yes 30/30 Staff recommends approval $90,000
Fair Housing
Services
Greater
Bakersfield
Legal Asst.
All Fair Housing Services $100,000 $100,000 Yes 30/30 Staff recommends approval $100,000
Public
Facilities
Community
Action
Partnership
of Kern
(CapK)
All Friendship House Solar
Installation $231,048 $0 Yes 26/30 Staff recommends
approval $231,048
Outside Public Services and Facilities Requested: $481,048 Recommended Funding: $421,048
FY 2024-25 Community Development Block Grant Applications (CDBG) – City Departments HUD Category Applicant Ward Proposal Total Cost FY 23-24 Funded
HUD
Eligible
Staff
Rating
CD Recommendation and
Notes
Proposed
for Budget
Public
Improvements Public Works Ward
2 East Truxtun Area
Curb, Gutter,
Sidewalk and ADA
Imprv.
$649,000 $390,000 Yes 28/30
Priority #1. Priority listing
provided by Public Works
Department.
$649,000
Public
Improvements Public Works Ward
2 Oleander Area
Curb, Gutter,
Sidewalk and ADA
Imprv.
$649,000 $200,000 Yes 26/30
Priority #2. Priority listing
provided by Public Works
Department.
$649,000
Public
Improvements
Public Works
Ward
2 Belle Terrace Area
Street Light
Upgrades.
$650,000
$0
Yes
26/30
Priority #3. Priority listing
provided by Public Works
Department. Continuation of
prior year project.
$686,520
Public
Improvements Public Works Ward
3 Alta Vista Area
Curb, Gutter,
Sidewalk and ADA
Imprv.
$649,000 $700,000 Yes 26/30
Priority #4. Priority listing
provided by Public Works
Department. Continuation of
prior year project.
$649,000
Public
Improvements Public Works Ward
2 East Truxtun Area
Street Light
Upgrades.
$537,840 $390,000 Yes 28/30
Priority #5. Priority listing
provided by Public Works
Department. Continuation of
prior year projects.
$0
Public
Improvements Public Works Ward
3 Q Street Area
Pedestrian Imprv. $3,773,800 $0 Yes 28/30
Priority #6. Priority listing
provided by Public Works
Department.
$0
Accessibility
Improvements
Economic &
Community
Development
All
Home
Accessibility
Imprv.
$50,000 $50,000 Yes 30/30 ECD Department Program $50,000 Capital Improvement Projects Requested: $6,958,640 Funding Recommended: $3,104,568
FY 2024-25 Home Investment Partnerships (HOME) Applications HUD
Category Applicant Ward Proposal Total Cost FY 23-24
Funded
HUD
Eligible
Staff
Rating
CD Recommendation and
Notes
Proposed for
Budget
Tenant Based
Rental
Assistance
Community
Action
Partnership of
Kern (CapK)
All
Rental Assistance
over 24 months
serving 55
households
60%<AMI.
$1,200,000 $0 Yes 28/30 Staff recommends approval
with prior year funding $1,000,000*
New
Construction
Housing
Authority of
County of
Kern (HACK)
50-Unit Affordable
Housing with 12
HOME units.
$1,800,000 $0 Yes 26/30 Staff recommends approval
with prior year funding $1,399,260*
Homebuyer
Down
Payment
Assistance
Bakersfield
Homeless
Center
All
Down payment
assistance for 10
first-time
homebuyers.
$258,000 $0 Yes 24/30 Staff recommends approval $258,000 HOME Requested: $3,258,000 Recommended Funding: $258,000 *Projects funded with prior fiscal year allocations.
FY 2024-25 Emergency Solutions Grant (ESG) APPLICATIONS HUD
Category Applicant Ward Proposal Total Cost FY 23-24
Funded
HUD
Eligible
Staff
Rating
CD Recommendation and
Notes
Proposed for
Budget
Emergency
Shelter
Alliance
Against Family
Violence
All
Operating expenses
for emergency
shelter
$44,940 $35,000 Yes 30/30 Staff recommends approval $35,000 Rapid
Rehousing &
Homeless
Prevention
Bakersfield
Homeless
Center
All
Expenses to house
homeless families
and individuals.
$498,430 $109,419 Yes 30/30 Staff recommends approval $109,419 Emergency
Shelter
Bakersfield
Homeless
Center
All
Operating expenses
for emergency
shelter
$180,000 $70,000 Yes 30/30 Staff recommends approval $70,000 Emergency
Shelter
Mission of
Kern County All
Operating expenses
for emergency
shelter
$97,500 $70,000 Yes 30/30 Staff recommends approval $70,000 Outreach Flood
Ministries All
Expenses to operate
outreach efforts to
homeless persons.
$25,000 $25,000 Yes 29/30 Staff recommends approval $25,000 ESG Requested: $845,870 Recommended Funding: $309,419