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January 23, 2024
ITEM TITLE
Housing Annual Reporting: Federal Block Grant Programs Funding Priorities for Fiscal Year 2024/25 Report Number: 24-0005
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(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. Under the National Environmental Policy Act (NEPA), the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) of the Code of Federal Regulations.
Recommended Action
Conduct the public hearing and accept the report.
SUMMARY
As a Department of Housing and Urban Development Entitlement Community, the City of Chula Vista receives Community Development Block Grant, HOME Investment Partnerships Act Program, and Emergency Solutions Grant Program funds annually. These funds are aime d to fund diverse programs and services to enhance the quality of life for Chula Vista’s most vulnerable populations. The City prepares an Annual 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 2020-2024 Five-Year Consolidated Plan.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the state CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not P a g e | 2
subject to CEQA. Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines.
Thus, no environmental review is required. Under NEPA, the activity is exempt pursua nt to Title 24, Part
58.34(a)(2)(3) of the Code of Federal Regulations.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable
DISCUSSION
Department of Housing and Urban Development (“HUD”) Entitlement jurisdictions receive Community Development Block Grant (“CDBG”), HOME Investment Partnerships Act (“HOME”) Program, and Emergency Solutions Grant (“ESG”) Program annual allocations via a formula -based system determined by statistical and demographic data. The funds aim to addr ess 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 l iving environment and expanding economic opportunities for low/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 infrastru cture 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 funds by providing gap financing to first-time homebuyers and 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 provide 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, homeless prevention, and outreach services.
As a recipient of these funds, the City is required to prepare a five-year Consolidated Plan (“Con Plan”) describing the housing and community development needs of the City’s low/moderate-income residents P a g e | 3
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 fourth year of its 2020-2024 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 seniors, disabled, illiterate, and homeless, whom the grant p rograms 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 2024/25 Action Plan (“Action Plan”).
Funding Priorities for the 2020-2024 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 appro ved and incorporated in the 2020-2024 Con Plan as high-priority needs.
Funding Availability and Request for Applications (Program Year 2024/25) A Notice of Funding Availability (“NOFA”) for request of the grant funds will be released on February 1, 2024 for eligible agencies and City Departments. The application period will run from February 1, 2024 through March 1, 202 4. While the City has not received formal communication from HUD on the anticipated grant funds for the 2024/25 program year, staff will be assuming the same amount as in prior years. As a reference, the City has received a slight decrease 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 2024/25 program year.
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Table 1: 2020-2024 Consolidated Plan Funding Priorities
PRIORITY GOAL ACTIVITY TYPE
Homelessness
Assist individuals and families to gain stable
housing after experiencing homelessness or
a housing crisis by providing appropriate
services and housing solutions on a path to
stability.
Shelter Operations
Homeless Prevention
Homeless Outreach
Homeless Supportive Services
Social Service
Programs
Invest in community social services to
promote equity and serve the most
vulnerable of the community’s population.
Public Services to low/moderate
income including the following
population:
Homeless Veterans; Youth;
Seniors; Victims of Domestic
Violence; Special
Needs/Disabled
Capital
Improvement
and Public
Facilities
Support the development of vibrant,
equitable and accessible neighborhoods by
investing in public facilities and
infrastructure.
ADA improvements
New streets and sidewalks
Public facility improvements
Economic
Development
Enhance the City’s economic stability by
investing in inclusive economic growth
initiatives that develop and strengthen small
businesses, employment and workforce
development programs and improving
access to jobs.
Business Financial Assistance
Programs
Business Technical Assistance
Job Training and Placement
Affordable
Housing
Increase affordable rental and owner -
occupied housing to improve housing
opportunities that reflect the community’s
needs.
New Construction
Acquisition
Rehabilitation
First-Time Homebuyer
Assistance
Tenant-Based Rental Assistance
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.
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ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund as a result of this action.
ATTACHMENTS
None
Staff Contact: Mark Barnard, Management Analyst II
Stacey Kurz, Director of Housing and Homeless Services