1 STAFF REPORT
COMMUNITY
DEVELOPMENT
DATE: June 7, 2022
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA: Simone McFarland, Ass istant Community Development Director , Economic Development and Housing
BY: Marcos Gonzalez, Housing Development Manager
SUBJECT: Adoption of a Resolution to Approve the Annual Action Plan for Fiscal Year 2022-2023 – Community Development Block Grant (CDBG)
RECOMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AUTHORIZING AND APPROVING:
1. THE SUBMISSION OF THE FISCAL YEAR 2022-2023 ANNUAL ACTION PLAN UNDER THE FIVE -YEAR CONSOLIDATED PLAN FOR FISCAL YEARS 2020 - 2025 TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD);
2. THE FILING OF APPLICATIONS AND CERTIFICATIONS FOR FEDERAL FUNDS FOR FISCAL YEAR (FY) 2022-2023 FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT
PARTNERSHIPS (HOME) PROGRAMS; AND
3. THE CITY MANAGER OR DESIGNATED OFFICIAL TO EXECUTE CDBG
AGREEMENTS AND AMENDMENTS WITH SUBRECIPIENTS
BACKGROUND
Staff is asking City Council to approve the allocation of CDBG and HOME funds and as such, to incorporate these allocations into the Annual Action Plan (AAP). Once approved, staff will begin issuing contracts to the fund recipients.
Annually, the U.S. Department of Housing and Urban Development (HUD) allocates CDBG funds to cities, count ies, and states to undertake projects and programs that address a wide range of community development needs, as specifically described in a
2 jurisdiction’s five-year Consolidated Plan and AAP.1 The five-year Consolidated Plan for Fiscal Years 2020- 2025 creates the framework for how the City will fulfill housing and community development goals utilizing CDBG and HOME funds. Within the Consolidated Plan’s five-year period, the City will issue an AAP which describes the programs, goals, and funding that will be implemented in a given fiscal year (Attachment 2).
DISCUSSION
For many years, CDBG funds have improved the quality of life for people who are elderly, disabled, homeless, and low-income living paycheck to paycheck . Most importantly, CDBG continues to support private/public sector partnerships that serve this community.
CDBG Available Resources
The total FY 2022-2023 CDBG available funds are $1,285,023 as shown in Table 1. The estimated CDBG entitlement is new funding from HUD. The final allocation has not been provided to Burbank , but staff expects the amount to be within 10% of this funding estimate. In addition, staff has reprogrammed unused prior year CDBG funds for capital projects, and there will be an additional $245,238 available in FY 2022- 2023.2 CDBG available resources also includes program income from former CDBG residential rehabilitation loan repayments. Rehabilitation loans were provided during the 1980’s to low-income homeowners. CDBG rehabilitation loans are no longer provided due to the lack of funding and high cost of construction. The repayment of these funds are used on future projects.
Table 1: FY 2022-2023 CDBG Projected Funds Funding Amount Estimated CDBG Entitlement $1,012,999
Prior Year Funding (Capital Project Use Only) $245,238
FY 2021-2022 Program Income $26,786
Total Funds Available $1,285,023
Of the total amount available for funding in FY 202 2-2023, CDBG rules limits spending by activity in a certain year. Table 2 below provides the funding amount that can be used for each activity, including prior year funds rolled over for capital projects.
Table 2: FY 2022-2023 CDBG Activity Distribution Funding Amount Capital/Economic Development Funds $921,100
Public Services – capped at 15% of total funds available $155,968 Program Administration – capped at 20% of total funds
available (City budgeted item)
$207,955
Total Funds to Distribute $1,285,023
1 In July 2020, the Council approved a five-year Consolidated Plan for Fiscal Years 2020-2025. Activities in the Consolidated Plan include - Affordable Housing, Homelessness, Public Facilities, Public Services, and Economic Development.
2 Prior year funds totaling $245,238 are a result of cost saving measures and bids below forecasted construction budgets. Prior year funds are only allowed to be re-programmed for capital projects. 3 Request for Funding Proposals
On February 1, 2022, staff solicited proposals from interested parties, nonprofits, and City Departments. Through a Request for Funding Proposal (RFP) , a total of 16 proposals were received by the RFP due date of March 1, 2022, (Attachment 3). These proposals are separated into Public Service Programs (Attachment 4) and Capital/Economic Development Projects (Attachment 5). T he CDBG RFP included an emphasis on homeless services which is consistent with the City of Burbank’s three year Homelessness Plan (2018-2021).3
All proposals were vetted for eligibility and prepared for review by the Community Development Goals Committee and staff . The Goals Committee and staff review ed the applications separately for funding merit, emphasis on addressing homelessness, and how the programs will effectively and efficiently serve the community. 4 These actions
provide guidance to the City Council who then makes the final decision on the CDBG grant awards for the applicants. The City Council’s funding decisions will be included in the FY 2022-2023 AAP submittal to HUD.
CDBG Public Service Recommendations
In response to the CDBG RFP, 12 of 16 applications received were for public service programs. The activities are service related and consist of a wide range of eligible uses that will promote community development goals. Six of these applications demonstrated a clear emphasis on homelessness, a City Council goal.
Homelessness
• Family Service Agency of Burbank (FSA), Residential Therapeutic Care • FSA – Homeless Transitional Stabilization Fund
• Burbank Temporary Aid Center (BTAC), Emergency Assistance • Home Again Los Angeles, formerly Family Promise of the Verdugos, Outreach for Families
• Jacaranda Housing, Residential Program for Transitional Aged-Youth • Believe in Big Change, Substance/Mental Health Counsel ing for women with children
These organizations received the highest funding consideration except for Jaracanda Housing and Believe in Big Change. Both organizations are new nonprofits to Burbank serving very specific homeless populations. According to their applications, the activities aligned with the City’s Homelessness Plan; however, the organizations were not recommended for funding for the following reasons.
• Jacaranda Housing lacks a facility to provide case management and housing. • Believe in Big Change has only operated for a short period of time; ther efore, the need could not be justified.
3 The City’s homelessness plan is currently being updated to a five-year (2022-2027) action plan. To view the existing Homelessness Plan, please visit: https://www.burbankca.gov/homelessness 4 The Goals Committee is a nine-member, City Council appointed, citizen review and recommending body established for the purpose of acting as a liaison for Burbank residents on matters related to the CDBG Program.
4 Four of the 12 applications in the public service category consisted of programs promoting health, special needs, youth , and social service programs. The Goals Committee and staff recommendations were all in alignm ent as provided in Chart 3. Staff is asking Council to consider the recommendations from the Goals Committee and staff as shown on Chart 3.
CDBG Capital Recommendations
Four of the 16 applications submitted were for non-public services, commonly referred as capital projects for the benefit of low-to-moderate income persons. The activities are usually real property improvements, housing construction, or economic development to name a few. Chart 4 titled Capital/Economic Development recommendations provides a comparison of the Goals Committee and staff recommended amounts for the four capital project applications received for CDBG.
The Goals Committee recommended $ 156,100 to BTAC to replace a damaged roof to the building located at 1304 Burbank Boulevard, which is $3,120 more than their original funding request. Staff recommends reducing this amount to what was requested by BTAC and recommends these funds move to the Community Development Department’s (CDD’s) Facility Improvement at 2244 N. Buena Vista Street. On April 5, 2022, City Council directed staff to release an RFP to obtain bids for a future lease from nonprofits $25,000
$6,472
$25,000
$12,000
$10,000
$4,996
$3,500
$16,000
$45,000
$8,000
$0
$0
$25,000
$6,472
$25,000
$12,000
$10,000
$4,996
$3,500
$16,000
$45,000
$8,000
$0
$0
CHART 3: PUBLIC SERVICE $155,968
Goals Committee Staff
5 who can provide city desired services at the City-owned site located at 2244 N. Buena Vista Street, also known as the former Boys and Girls Club. The property is currently in severe disrepair and cost estimates to improve the property are at $1,119,875 for both cosmetic repair and required health and saf ety improvements. Because only RFP responses are limited to non-profits, staff is concerned about their ability to be able to pay for all the repairs needed. Allocating $428,120 toward these improvements could be used to offset future funding needed by a non-profit and/or the City ’s General Fund. Staff is asking Council to consider the recommendations from staff as shown on Chart 4.
Public Comment on the Annual Action Plan
Staff solicited public review and comment on the FY 2022-2023 AAP for 30 days. A notice for public comment was published in the Los Angeles Times on April 2, 2022. The AAP was available on-line at www.burbankca.gov. No written comments were received.
FISCAL IMPACT
Should the FY 2022-2023 AAP for use of the CDBG Program funds be approved by the City Council, the allocated CDBG funds for each activity will be incorporated into the FY 2022-2023 Adopted Budget.
CONCLUSION
Staff requests that the City Council adopt the resolution approving and authorizing the submission of the FY 2022- 2023 AAP. Staff is committed to utilizing these federally restricted funds in the most efficient and effective manner . The CDBG projects and programs approved by City Council will reach residents who are the most vulnerable to a financial crisis and improving the overall quality of life for those who are low to moderate- income.
$156,100
$425,000
$50,000
$290,000
$152,980
$428,120
$50,000
$290,000
$0 $100,000 $200,000 $300,000 $400,000 $500,000
BTAC-Roof Repairs
CDD-2244 Buena Vista
Burbank Library-Consultation Spaces
Parks and Recreation-Santa Anita Playlot
Chart 4: Capital & Economic Development $921,100
Staff
Goals Committee
6 ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Annual Action Plan
Attachment 3 – FY 2022-2023 CDBG Funding Proposals
Attachment 4 – FY 2022-2023 Public Service Funding Recommendations Attachment 5 – FY 2022-2023 Capital/Economic Development Funding Recommendations