1 STAFF REPORT
COMMUNITY
DEVELOPMENT
DATE: June 25, 2024
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA: Simone McFarland, Assistant Community Development Director BY: Sinai Gonzalez, Administrative Analyst I
SUBJECT: Adoption of a Resolution to Approve the Annual Action Plan for the Fiscal Year 2024-2025 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 (FY) 2024-2025 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 F Y 2024-2025 FOR THE COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) AND HOME INVESTME NT PARTNERSHIPS (HOME)
PROGRAMS; AND
3. THE CITY MANAGER OR DESIGNATED OFFICIAL TO EXECUTE CDBG
AGREEMENTS AND AMENDMENTS WITH SUBRECIPIENTS (ATTACHMENT 1)
BACKGROUND
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 jurisdiction’s five-year Consolidated Plan and Annual Action Plan ( AAP).1 The five-year Consolidated Plan for 2020-2025 creates the framework for how the City will fulfill housing and community development goals utilizing CDBG and HOME funds. Within the
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 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).
Staff is requesting Council approve the allocation of CDBG and HOME funds and as such, to incorporate these allocations into the AAP . Once approved, staff will begin issuing contracts to the fund subrecipients.
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 CDBG funding. Most importantly, CDBG continues to support local nonprofit and community organizatio n partnerships that offer free or low -cost services to people seeking their assistance.
CDBG Available Resources
The total FY 202 4-25 CDBG available funds is $1,120,760 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 2023-24 CDBG subrecipients that are still working on their grant expenditures will not have their funds reprogrammed.
Table 1: FY 2024-25 CDBG Projected Funds Funding Amount New Entitlement Funds $1,064,583
Prior Year (carry-over funding for capital project use only) $56,177 Total Funds Available $1,120,760
Of the total amount available for funding in FY 2024 -25, 65% is allocated towards capital/economic development projects, 15% is allocated towards public service projects, and 20% is allocated towards program administration. Table 2 below provides the funding amount that can be used for each activity, including the prior year carry-over.
Table 2: FY 2024-2025 CDBG Activity Distribution Funding Amount Capital/Economic Development Funds (includes carry-over of $56,177)
$748,156
Public Services (capped at 15% of new entitlement funds) $159,688 Program Administration (capped at 20% of new entitlement funds – City budgeted item)
$212,916
Total Funds to Distribute $1,120,760
Request for Funding Proposals
In March, staff solicited proposals from interested p arties that include nonprofits, City Departments, and other eligible subrecipient s. 2 Through the Request for Funding Proposal (RFP), a total of eight proposals were received by the RFP due date of April 10, 2024 (Attachment 3) . The proposals are separated into Public Service Programs
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 4) and Capital/Economic Development Projects (Attachment 5). The CDBG RFP included an emphasis on homeless services which is consistent with the City’s Five- Year Homelessness Plan (2022-2027).3
All proposals were vetted by the Community Develo pment Goals Committee and City staff. The Goals Committee and staff review ed the applications for funding merit, emphasis on addressing homelessness, and how the programs will effectively and efficiently serve the Burbank community. These actions provide guidance to Council who will then make the final decision on the CDBG grant awards for the applicants. Council’s funding decisions will be included in the FY 2024-25 AAP submittal to HUD.
CDBG Public Service Recommendations
In response to the CDBG RFP, seven 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
• Armenian Relief Society
o Social services to underserved populations.
• Boys and Girls Club
o Afterschool and summer programs for local youth.
• Burbank Coordinating Council
o Youth camp scholarships.
• Burbank Noon Lions
o Indigent eye/ear care.
Homeless Activities
• Family Service Agency of Burbank (FSA)
o Residential therapeutic care for Burbank’s homeless population. • Burbank Temporary Aid Center (BTAC)
o Emergency assistance for individuals and families.
• Home Again Los Angeles
o Outreach services targeting homeless families.
Staff recommends Council consider the funding recommendations from the Goals Committee as outlined in Attachment 4.
CDBG Capital/Economic Development Recommendations
One application was submitted for non-public services, referred to as capital projects or economic development projects for the benefit of low-to-moderate-income persons. “Upwards”, a nationwide organization that partners with employers and governments to make care accessible to all families , applied under the economic development category to assist low-to-moderate income childcare providers in Burbank (Attachment 5). Since only one application was received, the Goals Committee recommended not awarding a contract at this time and re- opening the application process for Capital/Economic Development funding only. By opening the application process, staff anticipate receiving
3 The City’s homelessness plan can be viewed at: https://www.burbankca.gov/homelessness 4 additional funding proposals in this category including a least one City initiated project. If approved, this would occur toward the end of summer 2024. Staff will focus on capital projects that are close to being constructed.
FY 2023-24 CDBG Subrecipient Updates
A total of nine grants were approved – eight nonprofit organizations and one City department. More than two-thirds of the grant subrecipients under the public services category have expended over 80% of their funding during the last funding cycle. The date to expend CDBG funds is June 30, 202 4, unless the project falls under capital/infrastructure projects, which may be carried over on an annual basis. There are four capital projects currently underway that will be carried over to the next FY:
1. Homeless Solutions Center Project located at 323-333 South Front Street;
2. Parks and Recreation’s Santa Anita Playlot Project;
3. Burbank Temporary Aid Center’s Roof Replacement Project; and
4. Armenian Cultural Foundation’s Solar Panel Project.
These four capital projects are in different stages of development, from predevelopment work to award and selection of a contractor. Staff is working closely with each subrecipient to ensure funds are expended in a timely manner. Under CDBG program guidelines, the City can have limited funds in the C ity’s line of credit. Currently, the City’s funds exceed the amount of funds to meet the timeliness requirement and needs to spend down our current funds. The City has not received the official notice from HUD Headquarters but has been communicating with the Los Angeles local office . Staff is developing a plan to ensure the timeliness requirement is met at the next review in May 2025 as these projects should be completed or near completion by then and the funds spent down.
COMMUNITY OUTREACH
Staff solicited public review and comment on the FY 2024-2025 AAP for 30 calendar days.
A notice for public comment was published in the Los Angeles Times on May 15, 2024.
The AAP was available online on the City’s website. No comments were received.
ENVIRONMENTAL REVIEW
The approval of the subject Annual Action Plan is a funding mechanism only and is excluded from the definition of "project" pursuant to State CEQA Guidelines Section 15378(b)(4). Furthermore, the proposed action does not constitute a final funding commitment to any of the identified activities, as the grant sub-recipients of the activities would be required to enter into contractual agreements. Pursuant to the terms of the contracts, appropriate environmental review of each funded activity will take place prior to commencement of any activity. Therefore, the action proposed herein will not have a significant effect on the environment and, hence, is not subject to CEQA. Even if it was a project, the action proposed herein is exempt from CEQA, pursuant to State CEQA Guidelines Section 15061 (b)(3), the "common sense" provision of CEQA which applies to projects which may have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
5 FISCAL IMPACT
Should the FY 2024-25 AAP for use of the CDBG Program funds be approved by Council, the allocated CDBG funds for each activity will be incorporated into the City’s FY 2024- 25 Adopted Budget.
CONCLUSION
Staff is committed to utilizing these federally restricted funds in the most efficient and effective manner. The CDBG projects and programs approved by Council will reach residents who are the most vulnerable to a financial crisis and improve the overall quality of life for those who are low-to-moderate income. Staff recommends that Council adopt the Resolution approving and authorizing the submission of the FY 2024-25 AAP.
Upon adoption, staff will reopen the Capital/Economic Development RFP process; results of which would be brought back to Council in the future.
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Annual Action Plan
Attachment 3 – FY 2024-25 CDBG Applications
Attachment 4 – FY 2024-25 Public Service Programs
Attachment 5 – FY 2024-25 Capital/Economic Development Funding Recommendations