ADMINISTRATIVE REPORT
MEETING DATE: February 10, 2025 AGENDA CATEGORY:
TO: Finance, Economic Development and Jobs Committee
FROM: Jennifer Byers, Economic and Community Development Director DATE: February 6, 2025
SUBJECT: Draft 2025-30 Consolidated Plan Goals and FY 2025-26 Annual Action Plan Budget for FY 2025-26
Overview of Consolidated Plan process, goals and Annual Action Plan budget.
RECOMMENDATION:
Staff recommends that the committee forward the reviewed allocations for approval by the full Council.
BACKGROUND:
The purpose of this item is to describe the process for the U.S. Department of Housing and Urban Development’s (HUD) 25-30 Consolidated Plan (ConPlan), to outline the associated goals for the next 5 years, and provide the Draft FY25 -26 Action Plan Budget r ecommendation to the Finance, Economic Development and Jobs Committee.
Draft 25-30 ConPlan Goals
Every five years, the City of Bakersfield is required by HUD to develop a new 5 -Year ConPlan and supporting documents. These documents use a combination o f data and community outreach to determine the top housing needs, community development concerns, and gaps in supportive services for low- and moderate-income populations in the city. This data was used to create goals listed below which will guide funding over the period of the plan. Total funds for all programs over the next five years will be approximately $34 million.
Recommended Goals for ConPlan 25-30
1. Invest in and preserve the supply of affordable housing for low -and moderate -income households, including homeownership opportunities.
2. Prevent and reduce homelessness, including increased support related to mental and behavioral health.
3. Foster and improve the quality of life by increasing access to economic development opportunities.
4. Improve community infrastructure and facilities to promote safe and vibrant communities.
5. Increase vital services for special needs populations, including children and youth, seniors, persons with disabilities, and persons living with HIV/AIDS.
FY25-26 Draft Annual Action Plan Budget
The City of Bakersfield anticipates receiving $6,887,592 each year from the following HUD programs:
Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG) and Housing Opportunit ies for Persons with AIDS (HOPWA). The FY25 -26 Action Plan entitlement program budgets for CDBG, HOME, ESG and HOPWA are listed individually in the table below ($8,000 in CDBG and $80,000 in HOME Program Income has been added). As of the preparation of this memo, HUD had not yet released the entitlement amounts for FY25 -26. 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 FY24-25 Allocation
Community Development Block Grant (CDBG) $3,929,593
Home Investment Partnership (HOME) $1,507,909*
Emergency Solutions Grant (ESG) $340,195
Housing Opportunities for Persons with AIDS
(HOPWA)
$1,109,895
Total $6,887,592*
*(includes $80,000 in Program Income from 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 FY25 -26 funding was December 6, 2024. The requested projects are intended to improve the quality of life and infrastructure for low -income persons and neighborhoods in the City of Bake rsfield. This year the City received 13 applications from non-profit and private entities totaling $5,289,676, and 8 applications from City Departments totaling $7,350,588. The total request for all grants, from both City and Non -City applicants, was $12,640,264. 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 recommen ded budget for consideration by the Finance, Economic Development and Jobs Committee. Staff anticipates that the FY25-26 HUD Action Plan will be considered by the City Council on April 23, 2025. This is the first funding year of the ConPlan 25-30.
Next Steps
In April of 2025, the City Council will hold a Public Hearing pursuant to the U.S. Department of Housing and Urban Development Title 24 CFR Part 91. The purpose of the Public Hearing will be to accept community input and consider approval of the City o f Bakersfield ConPlan 25 -30, FY25-26 Action Plan, Analysis of Impediments to Fair Housing Choice 25-30, and Citizen Participation Plan. The city will submit final documents to HUD
before the deadline of May 14, 2025. HUD may extend the deadline if final H UD Entitlement Allocations have not been received before the public noticing period.
Next Steps in Consolidated Plan Timeline
February 2025: Draft ConPlan and Annual Action Plan presented to the Budget and Finance Committee.
March/April 2025: 30-day public review and comment period April/May 2025: Draft ConPlan and supporting documents presented to City Council Prior to May 15, 2025 (unless HUD’s final budget is delayed): ConPlan submitted to HUD
Therefore, staff recommends that the Committee forward the reviewed allocations for the CDBG, HOME, ESG and HOPWA funds as listed in attachments A and B for approval of the full Council subject to appropriate administrative adjustments made to account for the final allocations provided by the Department of Housing and Urban Development.
FISCAL IMPACT:
No impact to the General Fund.
COUNCIL GOAL:
Economic Opportunity for All
ATTACHMENTS:
A. FY25-26 Recommended CDBG Budget
B. FY25-26 Recommended ESG/HOME/HOPWA Budget
C. Overview of Applications Received (Reference)