BACKGROUND:
The CDBG program is a federal program administered by HUD. The City has received CDBG funds directly from HUD since 2012 when it became an Entitlement Grantee.
CDBG funding is used to address a variety of housing and community development needs, which are prioritized during the five-year Consolidated Plan (ConPlan) process.
As a requirement of the CDBG program, local jurisdictions need to comply with various reporting requirements, such as the ConPlan, the Annual Action Plan (AAP), and the Consolidated Annual Performance and Evaluation Report (CAPER). The CAPER reports on the actual accomplishments and expenditures per fiscal year. The FY 2022- 2023 CAPER once approved becomes a document supporting the City’s FY 2022-2026 ConPlan.
DISCUSSION:
The FY 2022-2023 CAPER describes the accomplishments and expenditures for projects approved in the FY 2022-2023 AAP, which is the City’s first fiscal year programed in the 5-Year ConPlan.
The FY 2022-2023 CAPER includes information regarding:
•Amount of funds invested in projects and activities,
•Descriptions of households assisted by CDBG funds,
•Actions taken to affirmatively further fair housing, and •Other information relevant to the status of grant-funded projects administered by the City to improve local housing and community development needs.
The following information summarizes how the City managed the CDBG program and utilized CDBG funds:
Administrative Allowance
The Administrative Allowance is capped by HUD at a maximum of twenty percent (20%) of the City’s entitlement grant amount. The use of funds allocated in this allowance are restricted to the management of the overall CDBG program. During the last fiscal year, consulting costs, City Staff salaries and wages, and related costs from City Staff involved in the management of the CDBG program, were reimbursed with the administrative allowance. There is a remaining balance of $4,152.09 which will be reprogrammed through an amendment in FY 2023-2024.
To accomplish the City’s fair housing goals, $18,000 was programmed under the administrative allowance to fund the Inland Fair Housing and Mediation Board (IFHMB).
This Board was contracted to assist the City to affirmatively further fair housing by providing low- and moderate-income residents with information about their fair housing rights and to resolve landlord-tenant disputes. IFHMB has met their annual target goals and has fulfilled their contract obligation.
Public Services Allowance
The Public Service Allowance is restricted to fund public service activities and programs for low-and-moderate income residents, and it is capped at a maximum of fifteen percent (15%) of the City’s entitlement grant amount by HUD.
The City programmed funding for four (4) local agencies or CDBG subrecipients, to provide programs and services to the community. Each subrecipient was required to enter into an agreement with the City that included CDBG specific language and outlined requirements/goals that needed to be met for the program year. After the agreements were executed, the subrecipients were able to request reimbursement for services provided.
The four subrecipients that received funding from the City’s CDBG Public Service Allowance were Assistance League Coachella Valley, Cathedral City Boys and Girls Club, Cathedral City High School Band Boosters Organization, and Coachella Valley Rescue Mission. All subrecipients fulfilled their contract obligations and met their goals.
Public Improvements Allowance
The Public Improvements Allowance is restricted to fund the rehabilitation and reconstruction of public infrastructure in low-and-moderate income areas. This allowance is not capped by HUD.
For FY 2022-2023, the City committed CDBG funds in the amount of $387,119 to the Via De Anza Project Phase II, for the reconstruction of a residential street located in Census Tract 449.15 (Block Group 1). The project included the removal of existing asphalt pavement, shaping and compacting existing base material and placing asphalt paving (AC), sidewalk, concrete driveway approaches, ADA compliant sidewalk ramps, and curb and gutter, removal and construction of garden walls, lowering and raising utilities to final grade, pavement striping and markings along the east side of Via De Anza from Dinah Shore Drive to Olancha Road. There is a remaining balance of $48,818.80 which will remain committed to the Via De Anza Project Phase II and will be expended in FY 2023-2024.
Additionally, the City Council approved the Sidewalk Repair Assistance Program in the amount of $15,000 to be funded with the City’s FY 2022-2023 CDBG Public Improvement Allowance. During the reporting year, the amount of $800.00 was provided to one participant in the Sidewalk Repair Program. Due to HUD’s reporting requirements, these funds were drawn down as an eligible expense under the administrative allowance. Therefore, the $15,000 will be reprogrammed through an amendment in FY 2023-2024.
CARES Act – CDBG-CV Funds
In October 2020, the City received additional funds through the CARES Act (CDBG-CV) in response to the Coronavirus. At the start of FY 2022-2023 the City had $31,757 remaining in CDBG-CV Funding. On September 14, 2022, the City Council approved an administrative amendment, allocating $18,500 of CDBG-CV funds to the Cathedral City Senior Center (CCSC). The CCSC was required to enter into an agreement with the City that included specific HUD language for CDBG-CV and outlined requirements and goals that needed to be met for the program year. The CCSC fulfilled their contract obligation and met their goals. The remaining balance of $13,257 will be reprogrammed through an amendment in FY 2023-2024.
The table below summarizes how the City managed its program and utilized its CDBG funds:
FY2022-2023 ADMINISTRATIVE
(20%)
BUDGETED SPENT BALANCE
Planning and Administration $105,000 $100,847.91 $4,152.09 Inland Fair Housing & Mediation
Board (IFHMB)
$18,000 $18,000 $0.00
FY2022-2023 PUBLIC SERVICES
(15%)
BUDGETED SPENT BALANCE
Assistance League $13,000 $13,000 $0.00
Boys and Girls Club $13,000 $13,000 $0.00
Cathedral City High School Band
Boosters Organization
$13,000 $13,000 $0.00
Coachella Valley Rescue Mission $51,500 $51,500 $0.00
FY2022-2023 PUBLIC
IMPROVEMENTS
BUDGETED SPENT BALANCE
Via De Anza Street Improvements
Phase II
$387,119 $338,300.20 $48,818.80
Sidewalk Repair Assistance Program $15,000 $0 $15,000
FY2022-2023 CDBG-CV
(CARES Act)
BUDGETED SPENT BALANCE
Cathedral City Senior Center $18,500 $18,500 $0.00
The FY 2022-2023 CAPER was prepared utilizing the HUD-required eCon Planning Suite. The Draft of the CAPER is attached to the Staff Report.
PUBLIC NOTICE:
The City’s Community Participation Plan requires the CAPER be made available for fifteen (15) days to give residents and the rest of the community an opportunity to review and comment on the information reported for the FY 2022-2023. The Draft CAPER was made available from August 10, 2023, through August 25, 2023. Any public comments received will be included in the CAPER document as an attachment prior to submitting the final document to HUD. No comments were received at this time.
No public hearing is required for the approval of the CAPER.
Upon City Council approval, the FY 2022-2023 CAPER will be submitted to HUD for review and acceptance.
City Staff recommends that the City Council approve the City's CDBG FY 2022-2023 CAPER to be submitted to HUD.
ENVIRONMENTAL ANALYSIS:
The action before the City Council is exempt from environmental review pursuant to Section 15060 (c) (2) and (c)(3) of the Guidelines of the California Environmental Quality Act (CEQA) in that the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment; and the activity is not a project as defined in Section 15378 of the CEQA Guidelines
FISCAL IMPACT:
The City’s HUD entitlement for FY 2022-2023 was $615,619. City Staff is proposing to reallocate remaining funds from prior years by amendment within FY 2023-2024. This amendment will be presented to the City Council for approval.
FIVE-YEAR STRATEGIC PLAN:
GOAL B: COMMUNITY INVESTMENT
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
Action B-16 Explore providing a General Fund Capital Projects Fund as part of development of the next Biennial Budget.