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February 15, 2022
ITEM TITLE
Annual Report: Federal Block Grant Programs Funding Priorities for Fiscal Year 2022/23
Report Number: 22-0066
Location: No specific geographic location
Department: Development Services Department
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines and Title 24 of the Federal Code of Regulations ; therefore, pursuant to State Guidelines Section 15060(c)(3) and Federal Guidelines Part 58.34(a)(2)&(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines and Part 58.34 (a)(2)&(3) of the National Environmental Policy Act.
Recommended Action
Conduct the public hearing and accept the report.
SUMMARY
As a Department of Housing and Urban Development (“HUD”) Entitlement Community, the City of Chula Vista receives Community Development Block Grant (“CDBG”), HOME Investment Partnerships Act (“HOME”) Program, and Emergency Solutions Grant (“ESG”) Program funds. These funds are aimed to fund diverse programs and services to enhance the quality of life for Chula Vista’s most vulnerable population s. The City prepares an Annual Action Plan (“Action Plan”) for use of the funds describing the housing and community development needs of the City’s low/moderate-income residents and outlines the strategies to address those needs.
This Public Hearing will provide the community with an overview and an opportunity to provide input on the Goals and Funding Priorities established through the 2020 -2025 Five-Year Consolidated Plan (“Con Plan”).
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ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA). The ac tivity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposal consists of a reporting action, is not for a site-specific project(s) and will not result in a direct or indirect physical change in the environmental. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Under NEPA, the activity is exempt pursuant to Title 24, Part 58.34(a)(2)&(3) of the Code of Federal Regulations and pursuant to the U.S. Depart ment of Housing & Urban Development Environmental Guidelines. Thus, no further environmental review is necessary at this time. Although environmental review is not necessary at this time, once a project(s) has been defined, environmental review will be required and a CEQA/NEPA determination completed prior to initiation of any related project activity.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
As an entitlement community with HUD, the City of Chula Vista is annually allocated funds under three Federal Block Grant Programs (CDBG, HOME, and ESG) via a formula-based system determined by statistical and demographic data. The funds aim to address HUD’s performance measurement framework and were each enacted with a distinct community-need as further described below. CDBG: The primary objective of the CDBG program is the development of viable urban communities through decent housing, a suitable living environment and through expanding economic opportunities for lo w/moderate-income persons. Activities funded under this program must address one of three National Objectives:
1. Benefit to low/ moderate-income persons through social services, housing or infrastructure projects.
2. Aid in the prevention or elimination of slums and blight through residential or commercial rehabilitation; or
3. To meet an urgent need such as a natural disaster or pandemic.
Historically, the City has utilized this flexible funding source to fund social services programs as well as improve public facilities and construct new streets and sidewalks. HOME: The purpose of the program is to create and retain affordable housing. The type of assistance allowable under this program includes owner-occupied housing rehabilitation, new construction, and acquisition and rehabilitation, for both single-family and multifamily projects, as well as predevelopment loans to developers.
In the past, the City has leveraged HOME by providing gap financing to developers investing in our community by creating new affordable housing units such as Lofts on Landis, Duetta and Volta. ESG: The program was created specifically to address homelessness as it provides grant funding to engage and rapidly re -house homeless individuals and families as well as help operate and provid e P a g e | 3
essential services in emergency shelters. Funds may also be used to prevent individuals and families from becoming homeless through rapid re-housing programs.
Currently the City is utilizing ESG funds for operational costs for shelters designated for victims of domestic violence and outreach services. Furthermore, funding has been earmarked for the current development of the new homeless bridge shelter.
As a recipient of these funds, the City is required to prepare a Con Plan describing the housing and community development needs of the City’s low /moderate-income residents and outlining strategies to address those needs over a five -year period. The Con Plan provides the necessary policy guidance for implementation of programs and services to be funded , as further detailed in the Action Plan submitted to HUD as the formal funding application for the respective program year. As a reference, the City is currently in the second year of its 2020-2025 Con Plan.
Citizen Participation through Planning Process
Engaging residents and community members in defining and understanding the current housing and community development needs while prioritizing resources to address these needs is a key component of the development of the Con Plan. The City is required by HUD to gather input from its residents, including minorities, non -English-speaking persons, Low /Moderate-Income residents, persons with disabilities, advocates for senior s, disabled, illiterate and homeless, whom the grant programs are designed to serve.
Public input received is used to establish the strategies and funding priorities previously described.
This Public Hearing is an avenue for the community to engage in the prioritization of the grant funds and the development of the upcoming 2022/23 Action Plan.
Funding Priorities for the 2020-2025 Consolidated Plan
As previously described, the Con Plan is the strategic plan for allocating and leveraging the entitlement grants described above. It utilizes qualitative and quantitative data gathered through citizen participation, market analysis, and an assessment to identify the highest priority needs in which to direct entitlement dollars. Table 1, on the following page, highlights the goals that were approved and incorporated in the 2020-25 Con Plan as high-priority needs.
Funding Availability and Request for Applications (Program Year 2022/23) A Notice of Funding Availability (“NOFA”) for request of the grant funds was released on January 28, 2022 for eligible agencies and City Departments. The application period will run from January 28, 2022 through February 28, 2022. While the City has not received formal communication from HUD on the anticipated grant funds for the 2022/23 program year, staff will be assuming the same amount as in prior years. As a reference, the City has received a slight increase for each of the grants in the past four years.
Next Steps
Once the applications have been received and reviewed for eligibility and funding consideration, staff will return to present the funding applicant proposals and provide funding recommendations for the 2022/23 program year.
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Table 1
2020-2025 Con Plan Goals
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no fiscal impact to the General Fund as a result of this action as all costs associated with the planning and administration of the CDBG, HOME and ESG programs are covered by the respective grants.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund.
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ATTACHMENTS
None.
Staff Contact: Tiffany Allen, Development Services Director Angélica Davis, Development Services Senior Management Analyst