TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to conduct a public hearing to receive comments during the development of the 2025 -2029 Consolidated Plan for the allocation of Community Development Block Grant and HOME Investment Partnership Program funds, and the Analysis of Impediments to Fair Housing Choice.
DATE: February 10, 2025
EXECUTIVE SUMMARY
Every five years, the City must complete two documents to receive its annual entitlement of Community Development Block Grant (“CDBG”) and HOME Investment Partnership Program (“HOME”) funds from the United States department of Housing and Urban Development (“HUD”): A five-year Consolidated Plan (“ConPlan”) and an Analysis of Impediments to Fair Housing Choice. The City is required to conduct two public hearings during the development of these documents to receive public input. This is the first of the two public hearings in this process.
RECOMMENDATION TO CITY COUNCIL
1) Open the public hearing to receive public input on the Five-Year Consolidated Plan and Analysis of Impediments to Fair Housing Choice; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The U.S. Department of Housing and Urban Development (“HUD”) has not yet announced allocations for local jurisdictions. It is anticipated that the City of Bellflower (“City”) will receive approximately $4.4 million in CDBG entitlement funds, and approximat ely $1.8 in HOME entitlement funds, from HUD over a five-year period, for FYs 2025-2030. The CDBG and HOME activities and some administrative costs will be funded solely by grant funds and will not impact the General Fund.
11-C «‘1 OF BELLFL 0 w e
m
R
"0 R0 WING TOG “
M st
1 Staff Report – 2025-2029 CONPLAN
February 10, 2025
BACKGROUND
The City of Bellflower is considered an entitlement jurisdiction and receives an annual allocation from HUD for the operations of its CDBG and HOME programs. The funding is determined by a formula calculated by HUD based on population, age of the city, poverty levels, etc. The City’s allocation can fluctuate year-to-year causing funding to increase or decrease in various programs.
As a recipient of the federal funds, the City is required to submit a five -year ConPlan and Annual Action Plans (“AAP”), and monitor their progress, outcomes, and expenditures through the Consolidated Annual Performance and Evaluation Report s (“CAPER”).
The purpose of the ConPlan is to identify the City’s housing and community development needs, priorities, goals, and strategies and to stipulate how funds will be allocated to housing and community development activities over the next five (5) years. The C DBG Program provides Federal funds for local improvement projects and programs. Activities assisted with CDBG funds must meet one of the three (3) national objectives:
1. Benefit low and moderate-income persons; or
2. Aid in the elimination of slum and blight; or
3. Meet a particular urgent community need because existing conditions pose a serious threat, and no other source of funds is available. This national objective is rare and is designated only for activities that alleviate emergency conditions, e.g., fire, flood, earthquake.
The HOME program provides formula grants, often in partnership with local nonprofit groups, to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing or providing direct rental assistance to low-income persons. HOME is the largest Federal Block Grant to State and Local Governments designed exclusively to create affordable housing for low-income households.
In addition to the ConPlan, HUD requires the development of a Five -Year Analysis of Impediments to Fair Housing Choice.
DISCUSSION
The Consolidated Plan is a HUD required plan assessing affordable housing and community development needs for the next five-year (2025-2029) period. The ConPlan determines how funds from HUD will be used.
The following table shows the current 2020-2024 Consolidated Plan goals and outcomes.
Where applicable, the City’s programs are listed in parentheses in the “Needs Addressed” column.
2 Staff Report – 2025-2029 CONPLAN
February 10, 2025
DISCUSSION – Continued
Goal Name Category Geographic
Area Needs Addressed
Improve and Conserve
Existing Affordable
Housing
Affordable Housing Citywide
Preserve the supply of affordable
housing
(Home Improvement Program)
Neighborhood
Preservation
Non-Housing
Community
Development
Neighborhood
Preservation
Citywide Neighborhood Preservation
(Code Enforcement)
Development of
Affordable Housing Affordable Housing Citywide Development of Affordable Housing Affirmatively Further
Fair Housing Choice Affordable Housing Citywide Fair Housing (Fair Housing Foundation)
Public Services Public Services Citywide Public Services (Bellflower Volunteer Center)
Employment Training
Non-Housing
Community
Development
Employment Training
Citywide Job Creation/Retention
(Kingdom Causes Bellflower)
Section 108 Loan
Repayment
Non-Housing
Community
Development and
Section 108 loan
repayment
Citywide Repayment of Section 108 Loan
Business Assistance Job Creation/Retention Citywide Job Creation/Retention (Business Assistance Program)
Administration Administration Citywide Administration
The Analysis of Impediments to Fair Housing Choice is a review of policies, procedures, and practices within the community that affect the location, availability and accessibility of housing and current residential patterns and conditions related to fair housing choice. Fair Housing Choice is a condition in which individuals and families of similar income levels in the same housing market have a like range of choices available to them regardless of protected status. Federal and State Law define protected status as:
• Race
• Color
• Ancestry
• National Origin
• Religion
• Sex
• Age
• Disability
• Familial Status
• Marital Status
• Sexual Orientation
• Source of Income
• Any other arbitrary factor
3 Staff Report – 2025-2029 CONPLAN
February 10, 2025
DISCUSSION – Continued
The Analysis of Impediments to Fair Housing Choice is a study of actions, omissions, or decisions that restrict housing choices or the availability of housing choices or that have the effect of restricting choice or availability.
The scope of the analysis includes:
Community Profile
• Demographic Profile
• Household Characteristics
• Income Profile
• Housing Profile
• Accessibility to public facilities, jobs, and housing • Fair Housing practices of realtors and other housing associations • Mortgage lending practices
• Public policies and programs affecting housing development
Fair Housing Profile
• Fair Housing complaints, violations, and lawsuits
• Trends and patterns of Impediments
The Economic Development Department released a Stakeholder and Community Survey in November 2024. The Stakeholder survey was distributed to the City Council Members, City employees, and nearby public agencies to identify potential gaps and needs within the community. The Community Survey was made available on the City website and social media.
The following charts reflect some of the top results received from the community, thus far.
Community Priorities
Affordable Housing – Rehabilitation of Owner-Occupied Housing; Transitional Housing; Housing for Disabled; New Affordable Single or Multi-Family Housing; Affordable Rental Housing; Lead-based Paint Test/Abatement; Energy Efficient Improvements; Down Payment Assistance; Senior Housing
Public Improvements – Sidewalks, ADA Ramps, Water and/or Sewer Line, Storm Water Drainage, Street Paving, Street Lighting, Trails
Public Services – Senior & Youth Activities, Child Care Services, Transportation Services; Anti-Crime Programs; Fair Housing; Health Services; Mental Health Services; Legal Services, Domestic Violence Services; Substance Abuse Services; Homeless Shelters & Services; HIV/AIDS Centers Services; Neglected/Abused Children Services; Services for the Disabled; Accessibility Improvements.
4 Staff Report – 2025-2029 CONPLAN
February 10, 2025
DISCUSSION – Continued
Types of Affordable Housing Projects identified by the community survey:
Affordable Housing
New Affordable Rental or Homeownership Housing
Rehab of Owner-Occupied Housing
Fair Housing
Types of Public Improvement Projects identified by the community survey:
Public Improvements
Neighborhood Cleanup
Street Improvement
Trails
Types of Public Service Projects identified by the community survey:
Public Services
Homeless Services
Anti-Crime Programs
Mental Health Services
Over the past five years (2020-2024) the City received an annual average of $895,576 in CDBG funds and $375,389 in HOME funds. Although HUD has not yet announced allocations for local jurisdictions, staff anticipates that over the next ConPlan period (2025-2029), the City will receive similar CDBG and HOME program allocations totaling approximately $4.4 million in CDBG entitlement funds and $1.8 million in HOME entitlement funds.
Additionally, during the current ConPlan period (2020-2024), the City’s Section 108 Loan was paid off, therefore the City will have about $500,000 available annually for the following qualified CDBG activities:
• Acquisition, construction, reconstruction, rehabilitation, or installation of public facilities and improvements.
• Providing loans and grants to businesses.
• Funding job training.
• Making improvements to commercial/retail districts.
• Financing efforts that attract/retain workers in devastated communities. • Acquisition of real property.
• Relocation and demolition.
• Rehabilitation of residential and non-residential structures. • Construction of public facilities and improvements.
5 Staff Report – 2025-2029 CONPLAN
February 10, 2025
DISCUSSION – Continued
The City Council may choose to use these funds annually for eligible projects and programs, or consider taking out another Section 108 loan that could be used on activities eligible under Section 108 that include the following:
• Acquisition of real property
• Rehabilitation of publicly owned real property
• Housing rehabilitation eligible under CDBG
• Construction, reconstruction, or installation of public facilities (including street, sidewalk, and other site improvements)
• Related relocation, clearance, and site improvements
• Loan to for-profit businesses for economic development purposes
As part of this process, staff is reviewing the potential of taking out another Section 108 loan for the rehabilitation of Town Center Plaza or other public facilities.
HUD requires two public hearings during the development of the Consolidated Plan. The first public hearing taking place today will receive input from the public, and City Council may provide direction to city staff on the five -year ConPlan and Analysis of Impediments to Fair Housing Choice. After receiving input and direction from City Council, the drafts of the aforementioned plans will be finalized. The City will then conduct a 30 -day comment period and conduct the second public hearing to receive any additional input to adopt the five-year Consolidated Plan and the Analysis of Impediments to Fair Housing. The FY 2025-2026 Annual Action Plan will be considered as part of the ConPlan. Additionally, staff will present an updated Citizen Participation plan, if applicable. Following City Council adoption, the five-year Consolidated Plan, 2025-2026 Annual Action Plan and Citizens Participation Plan will be submitted to HUD.
6