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Staff Report
City Council
Item No. 5.B
Meeting Date: January 12, 2022
From: John Corella, Director of Engineering/Public Works Title: Update on FY 2021-2022 Community Development Block Grant (CDBG) Program Substantial Amendment and Five -Year
Consolidated Plan
City Council
RECOMMENDATION:
Update on FY 2021 -2022 Community Development Block Grant (CDBG) Program Substantial Amendment and Five -Year Consolidated Plan. This item is for discussion and direction only, no formal action will be taken.
BACKGROUND:
On October 28, 2020, the City Council approved the City’s FY 2019-2020 Consolidated Annual Performance Evaluation Report (CAPER) actual accomplishments and expenditures for the fiscal year. The allocated and remaining funds can be found on attachment “FY 2019-2020 CDBG Allocations”. The remaining funds from FY 2019- 2020 program were amended into the FY 2020-2021 program.
On September 23, 2020, the City Council approved the City’s FY 2020 -2021 Community Development Block Grant (CDBG) Annual Action Plan (AAP) describing the federal funding allocations from the City’s annual entitlement grant and CARES Act (CDBG-CV) apportionments (M.O. 2020 -134). This approval included the City’s entitlement apportionment of $613,195 and CDBG -CV Round 1 Award of $ 360,777.
Subsequently, t he City was informed it w ould receive additional CDBG -CV Round 3 funding totaling $566,430. This additional CDBG -CV funding was incorporated into the AAP by the approval of a Substantial Amendment (M.O. 2020 -164). The allocated and remaining funds can be found on attachment “FY 2020-2021 CDBG-CARES ACT RD 1 and 2”. The remaining funds from CDBG and CDBG -CV FY 2020-2021 program will need to be amended into the FY 2021-2022 program.
On May 12, 2021, the City Council approved the City ’s FY 2021 -2022 AAP. The proposed funding allocations under the approved AAP can be found on attachment “FY 2021-2022 CDBG Approved AAP”.
At the start of the year, t he City had $530,365 of COVID-CV funding remaining from prior years . On December 9, 2021, the City Council approved an Administrative
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Amendment of $25,000 in CDBG-CV funds to support Desert Access and Mobility. This action left a remaining balance of $505,36 5 in unallocated CDBG -CV funds. Unspent CDBG-CV funding was a result of a few local bu sinesses being awarded the Small Business Economic Relief Program during the previous FY 2020-2021. Remaining CDBG-CV Funds will need to be reallocated and amended into the FY 2021 -2022 program. Staff has provided a recommendation for allocating these funds as follows:
DISCUSSION:
At this Study Session , Staff and its Consultant (The Ramsey Group) will provide an update on the upcoming CDBG FY 2021-2022 Substantial Amendment, which include s proposals on reallocation of FY 2020-2021 unspent CDBG and CDB G-CV funding.
During the development of the AAP, proposals were solicited from Public Service Providers, which were then reviewed by Staff and its Consultant. For proposals related to CDBG, Staff and its Consultant work with Service Providers to ensure that the beneficiaries of the proposals are Cathedral City residents and in compliance with HUD’s guidelines. For proposals related to CDBG -CV, Staff and its Consultant work with the Service Providers to confirm that the proposal responds, mitigates, and/ or prepares for Covid-19 and future pandemics.
The proposed Substantial Amendment is proposed for City Council consideration at the City Council meeting on January 26, 2022. In addition, at this Study Session an update on the Five -Year Consolidated Plan (Co n Plan) will be presented, which is under development and will include community development needs of low -moderate income households and communities within the City; and discussion on proposed funding priorities (public service, affordable housing, and cap ital improvements) for use within the development of the Con Plan.
Substantial Amendment
According to the PR01 Report generated from HUD’s Integrated Disbursement & Information System (IDIS), the City has unspent prior year ( FY 2020-2021) funds of $47,809 in CDBG, unspent prior year ( FY 2020-2021) funds of $ 505,365 in CDBG-CV, and unallocated Public Services funds of $80,000 for the FY 2021-2022 program. The City is required to amend the FY 2021-2022 AAP to reprogram any prior year funding. A proposed allocation of funds can be found in attachment “FY 2021-2022 Proposed Allocations.”
FY 2022-26 Consolidated Plan and Annual Action Plan
The Con Plan and A AP is designed to help states and local jurisdictions assess their
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affordable housing and community development needs and market conditions, and make data-driven, place-based investment decisions. The Con Plan proc ess serves as the framework for a community -wide dialogue to identify housing and community development priorities.
In preparing the Con Plan/AAP, the City is utilizing several methods to analyze the housing and community development needs of the community. Methods include hosting focus groups, surveying community residents and stakeholders, surveying multi -family unit property owners, analyzin g U.S. Census data, and utilizing information in several public planning documents. The City will also host community meetings as an effort to outreach and encourage the participation of all residents, particularly low - and moderate-income residents, elderly persons, and persons with disabilities. The purpose of these meetings is to inform the community about the Con Plan/AAP process, identify opportunities to improve collaborative efforts and eliminate service delivery gaps to develop and sustain decent an d affordable housing, suitable living environments and expanded community and economic opportunities. The successful development of the Con Plan/AAP will summarize the City’s priorities and specific objectives in addressing the needs of low -income househol ds and communities, as well as describe how allocated funds will be made available to address identified needs.
The U.S. Department of Housing and Urban Development Office of Community Planning and Development’s guidelines in preparing a consolidated plan and annual action plan submission to HUD states, “The consolidated plan should have the clear backing and support of the Mayor or Chief Elected Official. Real cooperation and coordination will not occur without leadership by the jurisdiction's elected of ficials and citizens will not participate in a process that does not have leadership by elected officials. Leadership also aids in the effective implementation of the plan and increases commitment to the plan.”
The City Council Study Session complies w ith this guideline by encouraging the City Council to provide Staff with input on the community development needs of low - moderate income households and communities within the City and direction on future funding priorities (public service, affordable housi ng, and capital improvements) for use within the development of the Con Plan. The following are key needs assessments to be considered during the Study Session:
1. Housing and Homeless Needs Assessment
What are the projected housing needs for the next five years for families that are anywhere between very low to middle income, owners, renters, the elderly, single and large families, the disabled, and families affected by HIV and AIDS? Also, what is the extent and characteristics of homelessness in the jurisdiction.
2. Housing Market Analysis
What are the identified challenges to increasing affordable housing and provide a strategy to increase affordable housing opportunities?
3. Community and Economic Development Needs Assessment
What are the needs for service s, facilities, infrastructure, and economic opportunities for targeted income households and CDBG areas (low -moderate
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census tracts)? Also, what are the needs for infrastructure projects, business incentive programs and job educational services that could significantly benefit the local target groups?
4. Non-Homeless Special Needs Assessment
What is the nature and extent of the housing assistance / public service needs of Non-homeless special needs populations such as the elderly and frail elderly, persons wi th disabilities, persons with HIV/AIDS, persons with alcohol or drug addictions, victims of domestic violence and any unique subgroups within the City?
Public Participation
The Study Session is open to the public and the agenda was posted and made available to the public. Under the Community Participation Plan (CPP), the City is not required to provide further public noticing of the Study Session.
FISCAL IMPACT:
There is no fiscal impact as this item is for City Council discussion, questions and direction.
ATTACHMENTS:
FY2019-20 CDBG Allocations
FY2020-21 CDBG-CARES ACT RD 1 and 2
FY2021-22 CDBG Approved AAP
FY 2021-22 Proposed Allocations