1 STAFF REPORT
COMMUNITY
DEVELOPMENT
DATE: June 13, 2023
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA: Simone McFarland, Assistant Community Development Director BY: Marcos Gonzalez, Housing Development Manager
SUBJECT: Adoption of a Resolution to Approve the Annual Action Plan for Fiscal Year 2023-2024 Community Development Block Grant
RECOMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AUTHORIZING AND APPROVING:
1. THE SUBMISSION OF THE FISCAL YEAR (FY) 2023-2024 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 FY 2023-2024 FOR THE COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) AND HOME INVESTME NT PARTNERSHIPS PROGRAMS (HOME); 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 Community Development Block Grant (CDBG) and Home Investment Partnerships Program (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 subrecipients.
Annually, the U.S. Department of Housing and Urban Development (HUD) allocates CDBG funds to cities, counties, 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 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 created or enhanced the availability of community services for residents of Burbank. The preservation of public facilities and community centers have also received their share of CDBG funding. Most importantly, CDBG continues to support local nonprofit and community organization partnerships that offer free or low-cost services to people seeking their assistance.
CDBG Available Resources
The total FY 2023-2024 CDBG available funds is $1,123,861 as shown in Table 1. The CDBG entitlement is new funding from HUD. In addition, staff will reprogram prior year CDBG funds due to underspending and include those funds in the new program year .
The FY 2022-2023 CDBG subrecipients that are working on their grant expenditures will not have their funds reprogrammed. All subrecipients saw a delay in receiving their grant agreements due to longer than normal processing of agreements by the City.
Table 1: FY 2023-2024 CDBG Projected Funds Funding Amount New entitlement funds $1,020,650
Prior Year (carry-over funding for capital project use only) $103,211 Total Funds Available $1,123,861
Of the total amount available for funding in FY 2023-2024, CDBG rules limit spending by activity in a certain year. Table 2 below provides the funding amount that can be used for each activity, including the prior year carry-over.
Table 2: FY 2023-2024 CDBG Activity Distribution Funding Amount Capital/Economic Development Funds (includes carry-over of $103,211)
$766,634
Public Services – capped at 15% of new entitlement funds $153,097 Program Administration – capped at 20% of new entitlement funds (City budgeted item)
$204,130
Total Funds to Distribute $1,123,861
Request for Funding Proposals
In February, staff solicited proposals from interested parties that include nonprofits, City Departments, and other eligible subrecipient s. 2 Through the Request for Funding Proposal (RFP), a total of 10 proposals were received by the due date of March 27, 2023,
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 Subrecipient means a public or private nonprofit agency, authority, or organization, or a for-profit entity authorized under 24 Code of Federal Regulations § 570.201(o), to undertake eligible activities. 3 (Attachment 3). The 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 five-year Homelessness Plan (2022-2027).3
All proposals were vetted by the Community Development Goals Committee (Goals Committee). One applicant , a for -profit entity, under Capital Projects was deemed ineligible because the funding requested for construction of a day care facility is only limited to public or private nonprofits. The Goals Committee reviewed the applications for funding merit, emphasis on addressing homelessness, and how the programs will effectively and efficiently serve the community. These actions provide guidance to the Council who then makes the final decision on the CDBG grant awards for the applicants.
The Council’s funding decisions will be included in the FY 20 23-2024 AAP submittal to HUD.
CDBG Public Service Recommendations
In response to the CDBG RFP, eight applications were received for public service programs. The activities consist of a wide range of eligible uses. The proposed programs are separated into non-homeless and homeless activities.
Community Development Activities
1. Armenian Relief Society, social services to underserved populations.
2. Boys and Girls Club, after school and summer programs.
3. Burbank Coordinating Council, youth camp scholarships.
4. Burbank Noon Lions, indigent eye/ear care.
Homeless Activities
• Family Service Agency of Burbank (FSA), residential therapeutic care. • Burbank Temporary Aid Center (BTAC), emergency assistance. • Home Again Los Angeles, outreach services targeting families. • Jacaranda Housing, residential on-site case manager.
Staff recommends Council consider the funding recommendations from the Goals Committee.
CDBG Capital Recommendations
A total of two applications were submitted for non- public services, referred to as capital projects for the benefit of low-to-moderate income persons. As previously stated, one application was deemed ineligible. The application submitted by Karis Family Day Care L.L.C. failed to demonstrate the status of a nonprofit or other eligible type. Therefore, the Goals Committee recommends a total of $766,634 go to the Community Development Department’s multi -year funding request for 2244 Buena Vista infrastructure improvements as shown on Attachment 5.
3 The City’s homelessness plan can be viewed at: https://www.burbankca.gov/homelessness 4 The City of Burbank owns the public facility located at 2244 N. Buena Vista Street, which remains vacant. The property is currently in severe disrepair and the cost to improve the property is estimated to be about $3M for cosmetic repair and infrastructure improvements that include health and safety requirements, possible demolition, and/or rehabilitation of temporary units along with desired tenant improvements. Staff is still in the very early phases of property assessment as we develop the rehabilitation plan and negotiate with Home Again Los Angeles (HALA).
In Fiscal Year 2022-23, Council approved $413,756 in CDBG funding toward this project and the ability for staff to enter into negotiations with HALA as the new tenant .
Additionally, staff has requested $800,000 from former Redevelopment Agency Loan Repayment One-Time funds in the FY 2023-24 budget. Still to be negotiated with HALA is the cost for tenant improvements and the refinement of the scope of work. If total need exceeds the funding amount, staff will look for loans, grants and/or phase improvements.
Fiscal Year (FY) 2022-23 CDBG Subrecipient Agreements
In June 2022, former Mayor Talamantes requested a mid-year progress update on F Y 2022-23 CDBG subrecipient awards. A total of 14 grants were approved (10 nonprofits and four City departments). More than half of the grant subrecipients have expended over 80% of their funding. The date to expend CDBG funds is June 30, 2023, unless the project falls under capital/infrastructure projects. Capital and infrastructure projects may be carried over on an annual basis.
As previously mentioned, all non-department CDBG subrecipients faced a delay in receiving their grant agreements. The agreement s are essential for describing the contractual obligation to reimburse the subrecipients. City staff envisioned a streamlined process; however, extensive delays occurred with updating a CDBG grant agreement and procedures that were outdated. Moving forward, the updated grant agreement proc ess will work more efficiently.
Public Comment on the Annual Action Plan
Staff solicited public review and comment on the FY 2023-2024 AAP for 30 calendar days.
A notice for public comment was published in the Los Angeles Times on April 26, 2023.
The AAP was available on- line at www.burbankca.gov. No written comments were received.
ENVIRONMENTAL REVIEW
The recommended actions to adopt a resolution approving an Annual Action Plan to receive $1,123,861 in CDBG funds to support community services and projects do not have the potential to cause a significant effect on the environment and has been determined to be categorically exempt from environmental review pursuant to the 5 California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378 . The Annual Action Plan falls under a categorically exempt activity.
FISCAL IMPACT
Should the FY 2023-2024 AAP for use of the CDBG Program funds be approved by the Council, the allocated CDBG funds for each activity will be incorporated into the FY 2023- 2024 Adopted Budget.
CONCLUSION
Staff requests that the City Council adopt the resolution approving and authorizing the submission of the FY 2023 -2024 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.
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Annual Action Plan
Attachment 3 – FY 2023-2024 CDBG Applications/Funding Proposals Attachment 4 – FY 2023-2024 Public Service Funding Recommendations Attachment 5 – FY 2023-2024 Capital and Economic Development Funding Recommendations