BACKGROUND:
The Community Development Block Grant (CDBG) Entitlement Program provides annual grants to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low-to-moderate (low-mod) income individuals. Entitled grantees must fall under the following categories:
•Principal city of Metropolitan Statistical Areas (MSAs) •Other metropolitan cities with populations of at least 50,000 •Qualified urban counties with populations of at least 200,000 (excluding the population of entitled cities)
CDBG funds may be used to fund the administration of the CDBG program (20% limit set by HUD), Public Services that benefit Cathedral City residents (15% limit set by HUD), and Public Improvements in low-mod areas. Citizen participation and stakeholder consultation are key components of every state or community’s Consolidated Plan. The Citizen Participation Plan (CPP) sets forth the grantee’s policies and procedures for citizen participation throughout the consolidated planning process. The CPP is a pathway for all citizens to exercise their voice and influence decisions that affect their communities, neighborhoods, and way of life.
Once the Consolidated Plan is approved by HUD, the City is awarded a grant and begins drafting the Annual Action Plan (AAP). The AAP provides a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan. The activities that are supported in the AAP must align with the priority needs outlined in the Consolidated Plan. At the end of the program year, a Consolidated Annual Performance and Evaluation Report (CAPER) will be submitted to HUD, which reports on the actual accomplishments and progress toward Consolidated Plan goals.
At the January 12, 2022, City Council Study Session City Staff presented a discussion on a proposed Substantial Amendment, which was ultimately presented to the City Council on March 9, 2022, and thus continued to tonight’s meeting March 23, 2022, for approval.
Also, at the same January 12, 2022, City Council Study Session meeting, City Staff presented the City Council with a discussion on the City’s 5-Year Consolidated Plan.
Following the discussion, City Council requested City Staff to provide examples of various opportunities for funding qualified programs through the CDBG Program. The Council requested Staff to investigate qualified programs that have the potential to be considered and an investigation on what other CDBG entitled cities fund. All the aforementioned will provide the City Council a better insight to opportunities to address the needs of the community and appropriately allocate future CDBG funds.
DISCUSSION:
Following the Study Session, City Staff reached out to City’s in the Coachella Valley and received responses from four cities: Palm Desert, La Quinta, Indio, and Palm Springs.
Palm Desert:
According to the United States Census Bureau (USCB), Palm Desert has a population of 51,163 and qualifies as an entitlement city. Palm Desert receives around $400,000 in CDBG entitlement funds. Palm Desert did not have low-mod areas until the area by Lincoln Elementary recently was categorized as a low-mod area. As a result, the primary focus of Palm Desert’s public improvements have been park, ADA, and restroom upgrades. Other programs that Palm Desert has funded include:
•Council on Aging Southern California: Provides ombudsman services for the elderly and disabled living within long-term care facilities. •Fair Housing Council of Riverside County: Provides fair housing services. •Operation SafeHouse: Serves runaway youth, homeless, and at-risk youth ages 11-17 by providing food and transportation services.
•Martha’s Village: Energy improvements at homeless shelters. •John F. Kennedy Memorial Foundation: Flooring replacement project. oAllocated $24,000 from Public Improvements
•Coachella Valley Rescue Mission: Replace food service kitchen equipment at homeless shelter.
oAllocated $36,000 from Public Improvements
•City of Palm Desert: Removal of architectural barriers in public areas at Palm Desert City Hall.
oAllocated $204,519 from Public Improvements
La Quinta:
La Quinta has an estimated population of 37,558 (USCB) and does not qualify as an entitlement city. As a result, they follow the County’s Annual Action Plan. La Quinta receives $121,443 in CDBG funds. La Quinta does not have any low-mod areas in their City. The focus of public improvements through CDBG is their ADA Transition Plan, which includes curb ramp and public restroom upgrades. Their ADA Transition Plan started 10 years ago and is nearing completion. La Quinta has allocated $103,227 to the City’s Engineering Services division for ADA improvements around the City. The other program that they fund is the Fee Waiver Reduction Program with the Coachella Valley Boys and Girls Club in the amount of $18,216.
Indio:
Indio has an estimated population of 89,137 (USCB) and qualifies as an entitlement city.
Indio supports local organizations responding to homelessness, food needs, and tenant/landlord issues with their entitlement funding. Indio also, continues its efforts to enhance street lighting and ADA ramps in some of the older parts of the city. Below is a list of programs that have been funded through Indio’s CDBG allocation:
•Coachella Valley Rescue Mission: Emergency food and overnight shelter. •Martha’s Village and Kitchen: Overnight shelter and supportive services. •FIND Food Bank: Food distribution and outreach program. •Inland Fair Housing and Meditation Board: Housing and tenant services. •Inland Counties Legal Services: Tenant representation and eviction protection. •Business Assistance Program: Personal Protective Equipment (PPE). •Meals on Wheels: Food assistance for the elderly.
•Lift to Rise: United Lift Rental Assistance Program.
•Indio Teen Center: Outreach programs for youth.
•Indio Senior Center: Support services for elderly.
•City of Indio: Minor Home Repair Program that are urgent and compromise safety or accessibility.
oFor residents that are needing repairs that include plumbing, electrical, HVAC unit, water heaters, minor roofing repairs and more. oAllocated $200,000 (~$10,000 per repair) from Public Improvements.
Palm Springs:
Palm Springs has an estimated population of 44,575 (USCB) and is a principal city that has MSAs. Palm Springs received $540,416 for the FY 2021-22 CDBG program. The priority goals of Palm Springs are affordable housing, public service activities for low- mod housing and non-housing community development. Programs that have been funded through Palm Springs CDBG entitlement include:
•City of Palm Springs: Demuth Park Community Center Air Conditioning and Restroom Project.
oAllocated $374,333 from Public Improvements
•City of Palm Springs: Home Repair Program
oAllocated $10,000 from Public Improvements fund.
•Fair Housing Council of Riverside: Fair Housing Program City Staff also reached out to City’s outside the Coachella Valley and received responses from the following cities: Santee, Hemet, Perris, and Rosemead/ Monterey Park/ La Habra.
Santee
Santee has an estimated population of 60,037 (USCB) and is an entitlement city.
Santee received $302,103 in CDBG funds for FY 2021-22. The priority needs of Santee were identified as infrastructure, community services and facilities, economic development, and housing. Santee uses the Section 108 Loan Guarantee Program (Section 108) to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects.
Santee has used Section 108 to complete sidewalk, storm drain, street improvements, and a city-wide ADA project. Programs funded by Santee’s CDBG include:
•CSA San Diego: Fair housing administrative services
•Crisis House: Homeless prevention
•ElderHelp San Diego: Independent living support for seniors •LSS Caring Neighbor’s Project: Affordable housing for low-mod individuals •Meals on Wheels: Home delivered meals to elder adults
•Food Bank: Emergency food services
•Santee Santas: Provide meals for needy families and seniors •Voices for Children: Child support services
•Section 108: Improve community infrastructure and facilities oImprovements in low-mod Census Block
oAllocated $202,253 from Public Improvements
Hemet
Hemet has an estimated population of 89,833 (USCB) and is an entitlement city. Hemet received $1,074,431 for FY 2021-22 CDBG funds. The goal of Hemet’s CDBG program is to increase self-sufficiency and economic opportunity for lower-income residents and individuals with special needs so that they can achieve a reasonable standard of living.
Projects funded through Hemet CDBG include:
•City of Hemet: Rental property rehabilitation program. oProvide financial assistance to property owners that need to proactively address or remediate potential code enforcement violations or otherwise improve housing conditions.
oAllocated $200,000 from Public Improvements.
•City of Hemet: Senior disabled home repair program.
oHome repairs and improvements that are health and safety issues.
Includes energy efficient appliances, HVAC units, ADA compliant showers, roof replacements and more.
oAllocated $142,212 from Public Improvements.
•City of Hemet: City-wide ADA Projects.
oAllocated $257,572 from Public Improvements.
•Care-a-Van: Specialized transportation services for elderly, disabled, and low- mod individuals.
•Center Against Sexual Assault: Sexual assault and domestic violence support services.
•Exceed: Art in the Park.
oInteractive art program for adults with disabilities.
oAllocated $17,549 from Public Services.
Perris
Perris has an estimated population of 78,700 (USCB) and is an entitlement city. The goal of Perris’s CDBG program is to assist future and existing homeowners, improve access to homeless services through outreach, community services for elderly and youth, and to improve infrastructure improvements in eligible areas. Programs funded through Perris CDBG are listed below:
•Habitat for Humanity: Home repair program.
•Grid Alternative.
•City of Perris: Park and ADA improvements.
oAllocated $347,825 from Public Improvements (Data from FY 2017-18). •Senior Center: Facility improvements.
oAllocated $116,889 from Public Improvements (FY 2018-18).
Rosemead/ Monterey Park/ La Habra
The point of contact for Rosemead’s CDBG program, as listed on the city’s website, was the Consultant. The Consultant manages the CDBG program for Rosemead, Monterey Park, and La Habra. For FY 2021-22 CDBG funding, Rosemead received $2,215,476, Monterey Park received $976,000, and La Habra received $636,529.
Rosemead and Monterey Park also receive HOME funding from HUD. All three cities focus on private property improvements due to the age of homes. Other priorities include affordable housing, youth centers, parks and recreation, homelessness prevention and code enforcement. Programs funded by the three cities include:
•City of Rosemead: Summer youth employment program.
oProvides summer employment for high school aged youth. oAllocated $30,000 from Public Services.
•City of Rosemead: Senior nutrition program.
•City of Rosemead: Commercial façade program.
oProvide low interest loans/grants to viable businesses to enhance exterior facades.
oAllocated $100,000 from Public Improvements.
•City of Rosemead: Business assistance program.
•City of Monterey Park: Housing rehabilitation program. •City of Monterey Park: Code enforcement program.
•City of Monterey Park: Fair housing program.
•City of Monterey Park: ADA improvements.
oAllocated $54,985 from Public Improvements.
•City of Monterey Park: Reconstruction of deteriorated alleyways. •City of La Habra: Aldrich improvement project.
•City of La Habra: Community Center parking lot.
•City of La Habra: Old Reservoir Park improvements.
oAllocated $33,000 from Public Improvements.
•City of La Habra: Alley improvement program.
oPavement reconstruction in several alleys to benefit residents by increasing property value, providing satisfactory pavement rideability, and alley beautification.
oAllocated $150,377 from Public Improvements.
The examples listed above are ideas for the discussion with City Council tonight in the development of the City’s 5-Year Con Plan. The goal of the discussion is for City Council to provide guidance for Staff on the Council’s priorities for the community development needs of Cathedral City to incorporate into the City’s 5-year Con Plan.
FY 2022-26 Consolidated Plan and Annual Action Plan
The Con Plan and AAP is designed to help states and local jurisdictions assess their affordable housing and community development needs and market conditions, and make data-driven, place-based investment decisions. The Con Plan process 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, analyzing U.S. Census data, and utilizing information in several public planning documents. The City has hosted two 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 and AAP process, identify opportunities to improve collaborative efforts and eliminate service delivery gaps to develop and sustain decent and affordable housing, suitable living environments and expanded community and economic opportunities. The successful development of the Con Plan and AAP will summarize the City’s priorities and specific objectives in addressing the needs of low-income households 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 officials 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 with 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 housing, and capital improvements) for use within the development of the Con Plan. The following are key needs assessments to be considered during this 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 services (including childcare and other services for working families), facilities, infrastructure, and economic opportunities for targeted income households and CDBG areas (low-moderate 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 with disabilities, persons with HIV/AIDS, persons with alcohol or drug addictions, victims of domestic violence and any unique subgroups within the City?
This Study Session item is for the City Council to review the potential uses of FY 2022- 23 Community Development Block Grant (CDBG) Funds and Con Plan Update for the City Council's information, discussion and direction only.
FISCAL IMPACT:
Discussion Only. No Fiscal Impact.