City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0348
REQUEST FOR CITY COUNCIL ACTION
DATE: 05/04/2022
TO: Honorable Mayor and City Council Members
FROM: Community Services Department
SUBJECT:
Public Hearing for City Council consideration of the 2022-2023 Action Plan for the Community Development Block Grant and HOME Investment Partnerships Programs.
EXECUTIVE SUMMARY:
Community Development Block Grant and HOME Investment Partnerships Programs funding recommendations are presented to the City Council every fiscal year as part of the CDBG and HOME Action Plan. The United States Department of Housing and Urban Development requires each participating jurisdiction prepare an annual action plan, provide public notice of the plan, host a public hearing to accept public comment on the draft action plan recommendations, and obtain City Council approval. In accordance, the Fiscal Year 2022-2023 Action Plan is scheduled for public hearing, at which time the City Council will vote on the Community Development Block Grant and HOME Investment Partnerships Programs funding recommendations. The City’s approved Action Plan is due to the Department of Housing and Urban Development on May 16, 2022.
RECOMMENDED ACTION:
That the City Council:
a. Approve the 2022-2023 Action Plan, inclusive of the allocation of funds to the Community Development Block Grant and HOME Investment Partnerships projects, and authorize the City Manager, or his designee, to submit these documents and any necessary amendments to the United States Department of Housing and Urban Development. b. Authorize the City Manager, or his designee, to adjust the Action Plan project and activity funding levels proportionally, as necessary, to conform with the final formula grant allocations, to be announced by the United States Department of Housing and Urban Development, and the total available Community Development Block Grant and HOME Investment Partnerships funds.
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c. Authorize the City Manager, or his designee, to prepare and process all necessary budgetary transactions to receive the funds included in the Housing and Urban Development Funding Approval Agreements.
d. Authorize the City Manager, or his designee, to negotiate, execute, and amend contracts with sub-recipients, developers, contractors, or professional service providers as necessary to implement the Community Development Block Grant and HOME Investment Partnerships program activities using funds under the approved projects identified in the 2022-2023 Action Plan, and any ongoing projects identified in prior Action Plans. e. Authorize the City Manager, or his designee, to execute, amend, and submit to the United States Department of Housing and Urban Development all plans and documents necessary to administer the 2022-2023 Community Development Block Grant and HOME Investment Partnerships projects and activities.
f. Authorize the appropriation of any Community Development Block Grant program income receipts from loan payoffs received by the City to the Residential Rehabilitation Program, CIP 67133431, a Community Development Block Grant approved project, within the Community Development Block Grant Fund.
g. Authorize the appropriation of any HOME Investment Partnerships program income receipts from loan payoffs received by the City to the Residential Rehabilitation Program, CIP 67133432, a HOME Investment Partnerships approved project, within the HOME Investment Partnership Fund.
BACKGROUND & HISTORY:
The City Council approved the 2020-2024 Consolidated Plan for Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Funds on June 17, 2020. The 2020-2024 Consolidated Plan includes a comprehensive assessment of housing, community, and economic development needs in Corona and provides a five-year strategy to address identified needs. Each year, the City Council adopts an Annual Action Plan that describes how CDBG and HOME Funds will be spent in the following fiscal year in accordance with the strategies outlined in the five-year Consolidated Plan.
The United States Department of Housing and Urban Development (HUD) regulations allow 20 percent of CDBG funds to be used for administration and 15 percent to be used for public services that would serve and benefit eligible City residents. The remaining balance of CDBG funds are used on City Capital Improvement Projects. Activities funded by CDBG and HOME funds are to specifically serve persons of low and moderate incomes.
ANALYSIS:
The City anticipates receiving a CDBG allocation of $1,209,556 for Fiscal Year 2022-2023. The City allocates 20 percent of the funds ($241,911) to administration to perform, monitor, and provide annual reporting to HUD on the City’s CDBG program, and allocates up to 15 percent of the funds to non-profit public service providers. For the upcoming fiscal year, staff recommends allocating City of Corona Page 2 of 8 Printed on 4/28/2022 powered by Legistar™
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non-profit public service providers. For the upcoming fiscal year, staff recommends allocating $155,000 to the non-profit public service providers selected last year as part of the 2021-2024 fouryear grant application process. The Fiscal Year 2022-2023 public service grants will be the second year of the four-year commitment. The remaining balance of the CDBG allocation for FY 2022-2023 is $812,645, plus $62,355 of prior year unspent funds for a total of $875,000.
The following information describes the projects and activities recommended for funding allocations in the Action Plan, including CDBG Capital Improvement Projects, CDBG Public Service activities, and HOME projects and activities.
City CDBG Capital Improvement Projects considered for Funding City departments implementing housing and community development activities were requested to submit funding applications for programs or projects that would benefit low- and moderate-income residents, including those located within the CDBG target area as shown on the map in Exhibit 1, Appendix B. The Community Services Department received three grant applications from City departments for FY 2022-2023.
Proposed CDBG Capital Grant Requests Amount
Requested
Code Compliance $100,000
Sidewalk Improvement Program $700,000
Park Plan - Year 1: Sheridan and Victoria Parks $750,000 Total Amount Requested $1,550,000
Amount of Funding Available $875,000
Code Compliance Program
The Code Compliance Program managed by the Planning and Development Department provides one full-time City Code Compliance position to the CDBG target area that would otherwise be paid by the General Fund. This position inspects residential dwellings and properties to ensure safe and sanitary housing and preserves aging housing units occupied by low- and moderate-income persons. CDBG funds currently fund this program and provides a necessary service to the CDBG target area without having an impact on the General Fund.
Sidewalk Improvement Program
This project focuses on creating accessible pedestrian routes on residential streets within the CDBG target area. CDBG funds would be used for the removal of damaged and lifted sidewalks, driveway approaches, pedestrian curb ramps, and cross gutters.
Park Plan
This project is set as a three-year phased plan. The proposed Park Plan is eligible because it lowers barriers and provides access to passive recreational activities, increases programing opportunities and upgrades park amenities for residents in this underserved area. Both Sheridan Park and Victoria Park have been selected as the CDBG investment sites because they meet the Federal Requirements of serving low- and moderate-income families. Additionally, these improvements will provide fair and City of Corona Page 3 of 8 Printed on 4/28/2022
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of serving low- and moderate-income families. Additionally, these improvements will provide fair and equitable access to all Corona residents.
The three-year Park Plan is outlined as follows:
Year 1: (CDBG Program Year 2022-2023):
· Sheridan Park: Upgrade play structure with an inclusive ADA accessible unit. · Victoria Park: Install a small splash pad.
Year 2: (CDBG Program Year 2023-2024):
· Sheridan Park: Demolish existing restroom structure and install single use prefabricated restroom facility.
· Victoria Park: Renovate building layout to create one large flex space classroom area.
Year 3 (CDBG Program Year 2024-2025):
· Sheridan Park: Replace large picnic shelter with up to three smaller pavilion shelters including lighting.
· Victoria Park: Install additional security lighting and convert walk lights to LED.
While the CDBG funding can be used for the initial capital improvements, the on-going costs for maintaining of these new assets will need to be included in Parks Maintenance budget. Maintenance for the restrooms and the Victoria Park building are already in the budget and will not increase because of these improvements. The additional maintenance will be for the Splash Pad which will approximately $15,000 for the chemicals, general maintenance, and incidental repairs. Staff Recommendation
Sidewalk maintenance and accessibility improvements is an on-going need, especially in the older areas of the City. For that reason, the Sidewalk Improvement Program project has been the most common activity conducted with the use of CDBG funds. However, residents have also voiced concerns about parks and the need for improved City facilities. In response to this feedback, staff is recommending additional eligible options for the Council to consider that will address park and facility upgrades utilizing City CDBG funds.
Staff recommends that the Code Compliance Program continue to be funded by CDBG funds for up to $100,000, and that the balance of $775,000 be allocated to Year 1 of the Park Plan as a priority, with the Sidewalk Improvement project as an alternative. Given HUD regulations require timely expenditure of funds within the program year, alternative projects are an important part of the planning process in case the priority project becomes unfeasible to complete. Staff also seeks Council commitment to fund Year 2 and Year 3 of the Park Plan in future program years, as outlined above.
CDBG Public Service Grant Activities considered for Funding Recommendation Staff recommends providing funds to all six of the CDBG public service grant nonprofit organizations selected last year as part of our four-year public service grant Notice of Funding Availability (NOFA) that serves the City through the remaining years of the adopted 2020-2024 Consolidated Plan.
Proposed CDBG Public Service GrantsAmount Requested
ABC Hopes, Inc.: (dis)ABILITIES Fitness + Life Skill Support $25,000 Big Brothers Big Sisters: Bigs with Badges Mentoring Program $25,000 Fair Housing Council of Riverside County: Fair Housing $30,000 City of Corona Page 4 of 8 Printed on 4/28/2022
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Proposed CDBG Public Service GrantsAmount Requested
ABC Hopes, Inc.: (dis)ABILITIES Fitness + Life Skill Support $25,000 Big Brothers Big Sisters: Bigs with Badges Mentoring Program $25,000 Fair Housing Council of Riverside County: Fair Housing $30,000 Starting Over, Inc.: Path to SEED $25,000
Peppermint Ridge: Nursing Services $25,000
Voices for Children: Court-Appointed Special Advocate Program $25,000 Total Amount Requested $155,000
Amount of Funding Available $155,000
The six activities listed in the table above represent the highest scoring applications from our fouryear Notice of Funding Availability (NOFA) process last year.
The NOFA was issued on February 10, 2021 and distributed to 200 non-profit public service providers listed on the City’s contact list. The NOFA was also advertised in the Sentinel Weekly and posted on the City’s social media platforms. The NOFA covered the current 2021-2022 fiscal year and up to three additional years to coincide with the fifth year of the 5-year Consolidated Plan. Public service providers were eligible to apply for CDBG funds if the program was a new service or new program that was not previously funded using CDBG monies or the program constitutes a quantifiable increase above and beyond the level of service already provided. The deadline for grant applications was March 5, 2021. The City received a total of 11 grant applications from public service providers.
Additionally, the City is required to use CDBG and HOME funds to affirmatively further fair housing as part of the City’s annual certification mandate to HUD. Therefore, the City uses the services provided by the Fair Housing Council of Riverside County (Fair Housing) to provide fair housing services. Fair Housing was the only applicant to submit a grant application for this service, which is included in the 15% allocation to service providers. The other grant applications were reviewed by a four-person panel consisting of City employees. The applications were scored using the criteria described in the NOFA which included: a) 30 points for project narratives, b) 30 points for answers to the questions related to project outcomes, and c) 40 points for answers to the questions addressing organizational capacity and history of compliance.
The following is a brief description of the programs selected by the City Council for the four-year grants as part of the 2021-2022 Action Plan.
ABC Hopes, Inc.: (dis)ABILITIES Fitness + Life Skill Support This activity benefits low-income Corona residents with intellectual disabilities and their families through a fitness program and a life skills wrap-around support program. The program focuses on the participant’s physical well-being through partnerships with local gyms and wellness centers, and life skills from selling produce the participants have harvested from the local community at the Corona Farmer’s Market. Through these activities, participants gain opportunities for social interaction, money management skills, and valuable life skills. This program assists approximately 120 Corona residents each Fiscal Year.
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Big Brothers Big Sisters: Bigs with Badges Mentoring Program This activity provides high school students with mentors in law enforcement from the Corona Police Department to focus on career exploration and life skills development. This mentorship program seeks to transform police and community relations while providing life-changing opportunities for youth dealing with incarcerated parents, poverty, and gangs. This program assists approximately 15 Corona residents each Fiscal Year.
Fair Housing Council of Riverside County: Fair Housing
The Fair Housing Council of Riverside County is the City of Corona’s current provider of fair housing services. Fair housing assistance is a mandatory requirement of the Corona CDBG and HOME funds to affirmatively further fair housing choice as required by HUD. The program includes landlord-tenant mediation services, anti-discrimination services, workshops, seminars, presentations, and enforcement actions in partnership with HUD, the Department of Fair Employment and Housing, or private attorneys. The Fair Housing Council serves over 1,500 Corona residents each Fiscal Year.
Starting Over, Inc.: Path to SEED
Starting Over assists formerly incarcerated and convicted people to find employment, which is an essential first step to reentering society, maintaining housing, and remaining out of jail or prison.
Studies show that work reduces reoffending, and the sooner ex-offenders are employed the less likely they will commit future crimes. Path to SEED helps participants address typical barriers like background checks, employer policies and practices, discrimination, and lack of employment skills.
Starting Over provides pre-employment readiness training and other resources through agreements maintained with employers, employment agencies, local businesses, consultants, and other community stakeholders. This program assists approximately 120 Corona residents each fiscal Year.
Peppermint Ridge: Nursing Services
Peppermint Ridge uses CDBG public service funds to address a gap in client care for 24 men and women living in the Ridge’s three “satellite” licensed Community Care homes separate from the main Peppermint Ridge campus located on Magnolia Avenue in Corona. The program provides nursing care from a registered nurse 32 hours per month to provide assessments, complete wellness checks, and review medical discharge orders from the hospital or emergency room. Additionally, the nurse serves as an advocate for the developmentally disabled residents when interacting with medical professionals. This program serves approximately 24 Corona residents each Fiscal Year.
Voices for Children: Court-Appointed Special Advocate Program (CASA) This program involves volunteers who advocate for children in foster care (ages birth to 21) in court, at school, and throughout the community to ensure their needs are best represented in an overburdened foster care system. CASA commits to serving an individual child or sibling group for a minimum of 18 months and will spend 10-15 hours per month getting to know case child(ren), identifying necessary services and resources, and advocating on their behalf in court, at school and in the community. This program serves approximately 13 Corona residents each Fiscal Year.
Staff Recommendation
Staff is recommending that Corona City Council consider continuing to fund all six of the selected CDBG public service grant nonprofit organizations selected last year as part of the City’s four-year City of Corona Page 6 of 8 Printed on 4/28/2022
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CDBG public service grant nonprofit organizations selected last year as part of the City’s four-year public service grant NOFA that serves the City through the remaining years of the adopted 2020- 2024 Consolidated Plan.
City HOME Projects considered for Funding Recommendation For the upcoming Program Year, the City anticipates receiving $497,089 of HOME funds and may use 10% ($49,708) for City administrative costs. HUD requires a set-aside of 15% of the grant for projects undertaken by HOME Community Housing Development Organizations (CHDO). The main activity recommended for funding using 75% of the HOME allocation is Tenant-Based Rental Assistance (TBRA). TBRA was also funded in the current 2021 Action Plan and that funding will be used in furtherance of the Homeless Strategies to house homeless or at-risk households.
Staff Recommendation
Staff is recommending that the Corona City Council consider funding the HOME activities listed below:
Proposed HOME ActivitiesAmount
Tenant-Based Rental Assistance $372,817
CHDO Reserve (HUD requirement) $74,564
HOME Program Planning and Administration $49,708
Public Participation for the CDBG/HOME FY2022-2023 Action Plan This item is a public hearing on the CDBG and HOME funding recommendations for the FY2022-2023 Action Plan. The Action Plan was made available for public review for a period of 30 days prior to the public hearing. The public review draft of the FY2022-2023 Action Plan is included as Exhibit 1 and available on the City’s website at www.coronaca.gov/government/departments-divisions/cdbg <http://www.coronaca.gov/government/departments-divisions/cdbg>. The Action Plan is required to be submitted to HUD by May 16, 2022.
FINANCIAL IMPACT:
The City Council’s approval of the 2022-2023 Action Plan will program the $1,209,556 in CDBG funds and $497,089 in HOME funds the City anticipates receiving in Fiscal Year 2022-2023. This funding is appropriated during the annual budget process. There will be no negative impact to the General Fund as a result of the planned projects to be funded with annual grants of CDBG and HOME funds from HUD.
FY2022-2023 CDBG Activities
1. Peppermint Ridge $25,000
2. Voices for Children $25,000
3. Starting Over $25,000
4. Big Brother Big Sister $25,000
5. ABC HOPES $25,000
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6. Fair Housing Council of Riverside County $30,000
7. Code Compliance $100,000
8. Community Facilities & Infrastructure - Sheridan/Victoria Parks $775,000
9. CDBG Administration $241,911
2021-2022 HOME Activities
1. Tenant-Based Rental Assistance (TBRA) $372,817
2. CHDO Reserve (HUD requirement) $74,564
3. HOME Program Planning and Administration $49,708
ENVIRONMENTAL ANALYSIS:
The creation of required plans and the allocation of CDBG and HOME funds is an administrative activity exempt under 24 CFR Part 58, Section 58.34 of the National Environmental Policy Act of 1969, as amended. Additionally, these activities are not considered to be a “project” under the California Environmental Quality Act.
PREPARED BY: CYNTHIA LARA, COMMUNITY ASSISTANCE MANAGER & FRANK PEREZ, CDBG
CONSULTANT
REVIEWED BY: ANNE K. TURNER, COMMUNITY SERVICES DIRECTOR Attachments:
1. Exhibit 1 - Draft 2022-2023 Action Plan for CDBG and HOME Investments Partnership Programs.
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