Projects
# Project Name
1 Fair Housing Services
2 Affordable Rental Housing Development
3 Public Services for low-income families
4 Homeless Assistance (ESG23 Fontana)
5 Program Administration
Table 8 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Based on the Strategic Plan, the City is allocating 100 percent of its 2023 CDBG funds (excluding Program Administration) to projects and activities that benefit low- and moderate-income people. The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state, and other local sources and the high cost of housing that is not affordable to low- income people. Since housing continues to be the greatest need, the City will be designating most of its allocation to address housing needs and therefore not be investing in projects addressing Public Facilities and Infrastructure Improvements needs. The City will continue investing 2023 CDBG funds in projects that provide neighborhood services for low- and moderate-income people and those with special needs, and projects that prevent homelessness.
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AP-38 Project Summary
Project Summary Information
1 Project Name Fair Housing Services
Target Area Citywide
Goals Supported Fair Housing Services
Needs Addressed Ensure equal access to housing opportunities Funding CDBG: $37,500
Description Fulfill the HUD regulatory mandate to affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination, and landlord- tenant mediation services.
Target Date 6/30/2024
Estimate the
number and type of
families that will
benefit from the
proposed activities
90 low- and moderate-income people
Location
Description
Citywide
Planned Activities Fair Housing Services (90 People) $37,500 2 Project Name Affordable Rental Housing Development
Target Area Citywide
Goals Supported Affordable Rental Housing Development
Needs Addressed Expand the supply of affordable housing Funding CDBG: $1,286,324
HOME: $2,700,000 ($111,810 Fiscal Year 2023, $2,490,651 Prior Year Unallocated, $97,538 Program Income)
Description HOME funds in support of the development of new affordable rental housing units for a yet to be determined a project. Should a project be identified the Plan will be amended.
CDBG funds in support of the acquisition/rehabilitation of existing housing units affordable to household earning less than 80 percent of AMI.
Target Date 6/30/2024
Estimate the
number and type of
families that will
benefit from the
proposed activities
11 affordable housing units constructed for lower income families 2 affordable housing units acquired and rehabbed for lower income families.
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Location
Description
TBD
Planned Activities TBD
3 Project Name Public Services for low-income families
Target Area Citywide
Goals Supported Public Services for low- and moderate-income families Needs Addressed Provide public services to low-income residents Funding CDBG: $296,843
Description Provide low- and moderate-income families with a range of public services necessary to prevent homelessness and ameliorate the effects of poverty.
Target Date 6/30/2024
Estimate the
number and type of
families that will
benefit from the
proposed activities
20,250 Persons
Location
Description
Citywide
Planned Activities Public Safety Program (20,000 persons) $250,000 Recreational and Targeted Services for eligible residents (such as elderly and youth).
Activities may include recreational scholarships, meals, and transportation assistance (50 persons) $46,843
4 Project Name Homeless Assistance (ESG22 Fontana)
Target Area Citywide
Goals Supported Homelessness Prevention Services
Needs Addressed Prevent and eliminate homelessness
Funding ESG: $175,340
Description Support a continuum of services in San Bernardino County to prevent and eliminate homelessness including but not limited to homelessness prevention and rapid rehousing programs
Target Date 6/30/2024
Estimate the
number and type of
families that will
benefit from the
proposed activities
Approximately 150 extremely low-income individuals and households Location
Description
Citywide
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Planned Activities Homeless services in the amount of $161,875, which may include Street Outreach, Homelessness Prevention, Rapid Rehousing, and HMIS.
ESG Program Administration $13,125
5 Project Name Program Administration
Target Area Citywide
Goals Supported All
Needs Addressed All
Funding CDBG: $358,291
HOME: $73,853
Description Provide for the administration of the CDBG and HOME programs.
Target Date 6/30/2024
Estimate the
number and type of
families that will
benefit from the
proposed activities
Other
Location
Description
Citywide
Planned Activities Administration of CDBG and HOME programs, projects, and activities.
Table 9 - Project Summary
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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
Assistance will be primarily directed to low- and moderate-income persons or households, however all public facility improvement project funds will be directed within CDBG eligible Census tracts and block groups. These areas are comprised of low- and moderate-income Census tract Block Groups centered on the central part of Fontana and the Census tract Block Groups along Sierra Avenue to include the southeastern section of the City. Residents of these eligible areas have median incomes substantially below the citywide median household income of $64,304.
Geographic Distribution
Target Area Percentage of Funds
Citywide 100%
Table 10 - Geographic Distribution
Rationale for the priorities for allocating investments geographically Based on the Strategic Plan, the City is allocating 100 percent of its non-administrative CDBG funds and 100 percent of its non-administrative HOME investment partnership funds for program year 2023 to projects and activities that benefit low- and moderate-income people. While the City targets public facility activities in eligible areas, it does not target specific neighborhoods with concentrated investment and instead evaluates funding on a citywide basis when determining eligibility. The City is not requesting approval of a Neighborhood Revitalization Strategy Area as part of this Plan.
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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
Four high priority affordable housing needs are identified in the 2020-2024 Consolidated Plan and four Strategic Plan goals are established to provide the framework necessary to invest CDBG and HOME funds to address the affordable housing needs of the City.
Expand the Supply of Affordable Housing
Based on evaluation of 2011-2015 ACS and CHAS data, there is a high need for housing units affordable for households earning less than 80 percent of AMI. Of the 18,289 households earning 0-80 percent of AMI in the City, 13,988 are cost burdened households—meaning households paying more than 30 percent of their income for housing. Additionally, 7,815 of the cost burdened households are considered severely cost burdened households—meaning that they pay more than 50 percent of their income for housing. Of the 7,815 severely cost burdened households, 3,950 are renters. Of those severely cost burdened renter households, 4,180 households earn less than 50 percent of AMI and are considered the most at risk of becoming homeless.
Preserve the Supply of Affordable Housing
As the City's housing stock ages, a growing percentage of housing units may need rehabilitation to allow them to remain safe and habitable. The situation is of particular concern for low- and moderate-income homeowners who are generally not in a financial position to properly maintain their homes.
The age and condition of Fontana’s housing stock is an important indicator of potential rehabilitation needs.
Commonly, housing over 30 years of age needs some form of major rehabilitation, such as roof replacement, foundation work and plumbing systems. Housing over 15 years of age will generally exhibit deficiencies in terms of paint, weatherization, heating / air-conditioning systems, hot water heaters and finish plumbing fixtures.
According to CHAS data showing the year that housing units were built categorized by owner and renter tenure:
• 8,665 or 27.1 percent of the 31,945 owner -occupied housing units in Fontana were built 39 or more years ago (built prior to 1980).
• 14,160 or 44.3 percent of the 31,945 owner -occupied housing units built between 15 and 39 years ago (built between 1980 and 1999).
• 6,665 or 40.3 percent of the 18,029 renter -occupied housing units in Fontana were built 39 or more DRAFT
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years ago (built prior to 1980).
• 7,125 or 39.5 percent of the 18,029 renter -occupied housing units in Fontana were built between 15 and 39 years ago (built between 1980 and 1999).
Preservation of the physical and functional integrity of existing housing units occupied by low- and moderate-income households is a cost-effective way to invest limited resources to retain existing housing units that are already affordable to low- and moderate-income households in the community. Addressing substandard housing conditions through housing preservation activities provide that all economic segments of the community have the means to ensure that their property meets local standards and that all Fontana residents have the opportunity to live in decent housing.
One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 13
Special-Needs 0
Total
Table 11 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 50
The Production of New Units 11
Rehab of Existing Units 0
Acquisition of Existing Units 2
Total
Table 12 - One Year Goals for Affordable Housing by Support Type
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AP-60 Public Housing – 91.220(h)
Introduction
The City of Fontana Housing Authority was formed in 1994 under State of California Housing Authority Law to actively improve existing neighborhoods and develop affordable housing opportunities using local, state and federal resources. The Fontana Housing Authority does not administer Section 8 and does not own HUD Public Housing; however, the City is within the service area of the Housing Authority of the County of San Bernardino (HACSB) for the purposes of Section 8 and Public Housing.
Actions planned during the next year to address the needs to public housing HACSB will continue providing housing and public services to existing residents of HACSB-owned affordable housing units. It has completed the process of converting HUD Public Housing units to Section 8 units as part of HUD’s Rental Assistance Demonstration (RAD) program. As of HACSB’s 2020 Annual Report there were 812 vouchers and 144 HASCS-owned units in Fontana. Additionally, the HACSB waitlist for tenant-based rental assistance (Section 8) units is closed.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
HACSB encourages residents to be actively involved in the community and in the management of public housing developments through resident councils and numerous opportunities for feedback such as community meetings and surveys. The HACSB and the City of Fontana also actively encourage and promote public housing residents to explore homeownership opportunities and programs through HACSB’s Homeownership Assistance Program targeted at current residents. HACSB also encourages and supports residents in participating in homebuyer counseling programs and recommends residents use the family self-sufficiency escrow account to save money towards homeownership.
As of December 2017, HACSB’s Homeownership program is the second largest in the state by the families participating in the program and is 31st nationwide among nearly 700 agencies with homeownership programs. Since 2002, 248 families have become homeowners through the Housing Authority’s Homeownership Assistance Program, which provides mortgage assistance to working families for up to 15 years and families with disabilities for up to 30 years.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable. HACSB is considered a High Performing PHA.
Discussion
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HACSB is well-positioned to maintain and expand the supply of affordable housing units in the City of Fontana and throughout San Bernardino County through its partnerships with the State of California, San Bernardino County Department of Community Development and Housing, the City of Fontana, other cities throughout the county and Housing Partners I, a nonprofit affiliate of the Housing Authority.
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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City will invest CDBG and ESG funds during the 2023 program year to address high priority needs identified in the 2020-2024 Consolidated Plan including preventing homelessness and providing assistance to those who have become homeless. This will be accomplished though homeless prevention programs, emergency shelter and transitional housing.
Homelessness Prevention Services
According to the results of the bi-annual Point-in-Time Homeless Count (PIT Count) held on January 23, 2020, on any given night in San Bernardino County, approximately 3,125 people were homeless. To address incidences of homelessness in Fontana and to prevent extremely low-income Fontana families from becoming homeless, the City places a high priority on programs that work to prevent homelessness or rapidly connect homeless individuals with housing and supportive services. To address this need, the City will support a continuum of services in the City of Fontana utilizing its ESG funds and though the San Bernardino County COC to prevent and eliminate homelessness including, but not limited to, homelessness prevention programs, emergency shelter programs and transitional housing. Using ESG funds, the City will invest in homelessness prevention and anticipates serving about 150 unduplicated people in FY 2023. The City is investing nonfederal funds to create the position of Homeless Services Manager. It is anticipated this position will be filled in FY23 and will increase the City’s capacity to respond to the needs of those experiencing and at risk of experiencing homelessness.
Services for Residents with Special Needs
Analysis of available data and consultation with organizations providing services for special needs populations revealed a high need for a range of additional services including, but not limited to, those concerned with developmentally disabled adults. The City’s policy for its new rental housing construction program includes a requirement to set aside a minimum number of units exclusively set aside for persons with disabilities. Any new rental project will comply with Title VIII of the Civil Rights Act of 1968 as amended, including Public Law 90-234.
Describe the jurisdictions one -year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessin g their individual needs
Due to the rise in the homeless population within the City of Fontana and the amount of resources being drawn upon to deal with the homeless population, the Fontana Police Department Bike Unit has transitioned to traditional patrol units and has been renamed as the Multiple Enforcement Team (MET). The primary mission of the MET Unit is to provide a balanced approach in traditional law enforcement services, along with conducting outreach, education and providing resources to the homeless population. The goals DRAFT
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of the MET Unit are to reduce crime relating to homelessness, calls for service, resources to medical professionals and city staff. Additionally, the City has formed the Community Outreach and Support Team (COAST) in partnership with the San Bernardino County’s Department of Behavioral Health and the San Bernardino Fire Department. This Unit provides mental health services to the homeless population out in the field through crisis intervention, community activities, and providing resources to those in need. This will expedite the process and services in providing the much-needed mental health to the homeless population.
The Fontana Police Department has partnered with the organizations to provide additional resources to the homeless population. Those organizations include, the San Bernardino County Department of Behavioral Health, CitiLink (Water of Life Church), and Social Work Action Group (SWAG).
Since 2014, the City has worked with the San Bernardino County Sheriff’s Department efforts in creating a specific unit to engage the homeless. The mission of The Homeless Outreach Proactive Enforcement (H.O.P.E.) Team is to balance proactive outreach with enforcement of the law, while connecting members of the homeless population with resources that may help them transition from homelessness. The ultimate goal is to reduce the rate of recidivism, incarceration, and reduce the current costs associated to homeless related crime. This team interacts with many agencies within the city of Fontana and partners with organizations who are using their resources to reduce the number of chronically homeless individuals and families in the community. The HOPE Team’s goal is to go beyond the traditional response to homelessness by identifying problems, root causes and linking individual homeless people with agencies for help and housing. Through this investment in outreach, assessment and connection to appropriate resources, the City will significantly reduce the number of homeless occupying areas not meant for human habitation such as parks, alleys, canyons, commercial and industrial areas.
Addressing the emergency shelter and transitional housing needs of homeless persons The City of Fontana through its ESG allocation, homeless services, including supportive and financial assistance. In addition, the City supports the efforts of the San Bernardino County Continuum of Care (COC) and its member organizations that address homelessness. As described earlier, the City supports local nonprofit agencies who provide emergency rental assistance and housing counseling to low- and moderate-income residents to prevent homelessness.
Helping homeless persons (especially chronically homeless individual s and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, fa cilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
As mentioned above, during the 2023 program year, the City will use CDBG funds for the Police Department’s MET Team to address the needs of the homeless. MET will connect chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth with DRAFT
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available resources through the San Bernardino County COC, which is comprised of a network of public, private, faith-based, for-profit, and nonprofit service providers who utilize several federal, state, and local resources to provide services for homeless people. The goal is to help unsheltered homeless people make the transition to permanent housing and independent living, including shortening the time individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units.
The nonprofit and faith-based community plays a key role in the current COC system. Hundreds of agencies throughout the County provide programs ranging from feeding the homeless on the street to creating permanent supportive housing opportunities. These services are available to homeless families with children, and single men and women. The nonprofit and faith-based community also serves special needs populations, such as victims of domestic violence, veterans, the disabled and youth.
To prevent individuals and families who were recently homeless from becoming homeless again and to prevent individuals and families who are at risk of homelessness from becoming homeless, the City will provide ESG funds to a qualified subrecipient to assistance low- and moderate-income individuals and families housed in the event circumstances beyond their control make it infeasible to stay current on their rent.
Helping low-income individuals and families avoid becoming homeless, especially extremely low - income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs
The City will utilize its ESG funds to prevent homelessness by providing funding to a qualified homeless services provider to provide any or all of the following: street outreach, emergency shelter, rapid re- housing, and homelessness prevention. The COC is also developing informational resources (such as 2-1- 1) to better serve individuals who are homeless or at risk of becoming homeless. In addition, the COC is working to implement a database using real time information from intake and assessment that is housed in the Homeless Management Information System (HIMS). The City recently launched a 3-1-1 service to connect residents with homeless resources. Collectively these strategies will help minimize duplication of effort and better connect the most vulnerable individuals and families, chronically homeless, and people at risk of becoming homeless to appropriate resources.
In addition, the City Police Department has a memorandum of understanding with the San Bernardino County Department of Behavioral Health to provide dedicated, nonfinancial office space for rapid access to those in mental health crisis through their Triage, Engagement and Support Teams (TEST) and their mobile Community Crisis Response Teams (CCRT).
Discussion
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With limited ESG and CDBG resources available, the City is investing ESG funds through the grants made to qualified homeless services providers to offer to person living in Fontana one or more of the following:
street outreach, emergency shelter, rapid re-housing, and homelessness prevention . Additionally, the City is investing general funds through the Police Department budget to provide MET Team officers that will connect unsheltered homeless individuals and families with emergency shelter, transitional housing, and permanent housing opportunities, as well as other services to address special needs such as drug and alcohol rehabilitation and mental health services.
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AP-75 Barriers to Affordable Housing – 91.220(j)
Introduction
A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful.
Based on information gathered during community meetings, the Consolidated Plan Needs Assessment Survey, the 2021-2029 Housing Element and market analysis, the primary barriers to affordable housing in Fontana are housing affordability and the lack of monetary resources necessary to develop and sustain affordable housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply and insufficient resources are available to increase the supply of affordable housing to meet demand.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
In the development of the 2021-2029 Housing Element, the City evaluated significant public policies affecting affordable housing development such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges and growth limitations. Based on this evaluation, the City determined that it has taken adequate steps to ameliorate the negative effects of public policies that may have been a barrier to affordable housing. Moreover, the City is actively engaged with affordable housing developers concerning the siting of affordable housing and ensuring that the entitlement process runs smoothly from inception to completion.
Discussion
To address housing affordability and the lack of monetary resources for affordable housing, the 2020-2024 Consolidated Plan - Strategic Plan calls for the investment of a significant portion of CDBG and HOME funds for the development of 22 new affordable rental housing units during the five year period of the Consolidated Plan, the acquisition/rehabilitation of seven additional rental units and the rehabilitation and preservation of 100 existing affordable housing units over the next five years. Although the City no longer has access to Redevelopment Housing Set-Aside funds, the City will continue to leverage its CDBG and HOME funds to attract private and other available public resources, including land conveyed to the City for the purpose of affordable housing, to facilitate affordable housing development. This strategy will increase the supply of affordable housing and preserve existing affordable housing in the City.
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AP-85 Other Actions – 91.220(k)
Introduction
In the implementation of the 2023 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead- based paint hazards, reduce the number of poverty-level families, develop institutional structure and enhance coordination between public and private housing and social service agencies.
Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state, and other local sources, the high cost of housing that is not affordable to low- income people and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2023 Action Plan in projects that provide grants and loans to low- and moderate-income homeowners for home improvements, projects that provide public and neighborhood services to low- and moderate-income people and those with special needs, and projects that prevent homelessness. To address underserved needs, the City is allocating 100 percent of its non-administrative CDBG and 100 percent of its HOME investments for program year 2023 to projects and activities that benefit low- and moderate-income people.
Actions planned to foster and maintain affordable housing In the implementation of the 2023 Annual Action Plan, the City will invest CDBG and HOME funds to foster affordable housing through the City of Fontana Acquisition Rehabilitation Rental Program impacting an estimated 13 households.
Actions planned to reduce lead-based paint hazards
The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. To reduce lead-based paint hazards, the City of Fontana Housing Rehabilitation Program will conduct lead-based paint testing and risk assessments for each property assisted that was built prior to January 1, 1978 and will incorporate safe work practices or abatement into the scope of work as required to reduce lead-based paint hazards in accordance with 24 CFR Part 35.
Actions planned to reduce the number of poverty-level families The implementation of CDBG, ESG, and HOME activities meeting the goals established in the 2020-2024 Consolidated Plan - Strategic Plan and the 2023 Annual Action Plan will help to reduce the number of poverty-level families by:
• Supporting activities that expand the supply of housing that is affordable to low- and moderate-income DRAFT
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households
• Supporting activities that preserve the supply of decent housing that is affordable to low- and moderate- income households
• Supporting a continuum of housing and public service programs to prevent and eliminate homelessness • Supporting housing preservation programs that assure low -income households have a safe, decent and appropriate place to live
• Supporting public services for low- and moderate-income residents including those with special needs and those at-risk of homelessness offered by nonprofit organizations receiving ESG funds In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally in California, the primary programs that assist families in poverty are CalWORKS, CalFresh (formerly food stamps) and Medi-Cal. Together, these programs provide individuals and families with employment assistance, subsidy for food, medical care, childcare, and cash payments to meet basic needs such as housing, nutrition and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence, and mental illness.
In addition, the City intends to implement Opportunity Zones to promote business development and expansion opportunities and, in the process, create increase the number of jobs available to lower income persons.
Actions planned to develop institutional structure
The institutional delivery system in Fontana is high-functioning and collaborative—particularly the relationship between local government and the nonprofit sector comprised of a network of capable nonprofit organizations that are delivering a full range of services to residents. Strong City departments anchor the administration of HUD grant programs and the housing, community and economic development activities that are implemented by the City. support and enhance this existing institutional structure, the City of Fontana will collaborate with affordable housing developers and nonprofit agencies receiving CDBG and HOME funds through the 2023 Annual Action Plan to ensure that the needs of low- and moderate-income residents are met as envisioned within the 2020-2024 Consolidated Plan - Strategic Plan.
Actions planned to enhance coordination between publ ic and private housing and social service agencies
To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and moderate-income residents in Fontana—particularly the CDBG Target Areas.
Discussion:
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In the implementation of the 2023 Annual Action Plan, the City will invest CDBG, ESG, and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, reduce the number of poverty-level families, develop institutional structure and enhance coordination between public and private housing and social service agencies.
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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction
In the implementation of programs and activities under the 2023 Annual Action Plan, the City of Fontana will follow all HUD regulations concerning the use of program income, forms of investment, overall low- and moderate-income benefit for the CDBG program and recapture requirements for the HOME program.
Eligible applicants for CDBG and ESG assistance include subrecipients who may carry out programs to benefit program beneficiaries on behalf of the City. Applications from interested subrecipients may be solicited by the City directly or via published Notices of Funds Availability at the discretion of the City.
Eligible beneficiaries for CDBG or HOME funded housing rehabilitation or first-time homebuyer programs include households earning less than 80 percent of AMI. Developers for HOME-assisted rental housing development projects shall be selected via an application and underwriting process determined by the City based on the regulatory requirements applicable to the prospective project based on the nature and scope of the proposed development. Opportunities for leveraging and matching funds shall be emphasized in the selection of affordable housing Developers. Selection of affordable rental housing development projects shall be based on project feasibility; funding availability; and City needs as determined by staff and the City Council.
Prospective subrecipients, beneficiaries and developers may obtain more information on the Fontana Housing Department / Housing Authority website at www.fontana.org.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0
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5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan.
100.00%
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)
A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:
The City will not use any other forms of investment beyond those identified in Section 92.205.
A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:
During the 2023 program year, the City of Fontana will not implement any HOME-assisted homebuyer activities. In the future, should the City choose to implement a homebuyer assistance activity, the City will incorporate a recapture requirement into written agreements and long-term affordability covenants as required by 24 CFR 92.254.
The recapture provision ensures that all or a portion of the City's HOME assistance to homebuyers or homeowners is recaptured if the housing does not continue to be the principal residence of the family for the duration of the applicable period of affordability. In establishing this provision, the City is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the HOME investment due, the City can only recapture a portion of the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than HOME funds), capital improvements, and any closing costs.
In the event of a mortgage default, the City has the right of first refusal before foreclosure and may use additional HOME funds to acquire the housing in order to preserve the housing’s affordability.
However, notwithstanding a foreclosure situation, the City intends to recapture all or some of its HOME funds invested during or at the end of the established affordability period, if practicable. Recaptured HOME funds consist of loan payments (including interest) and/or a loan payoff, upon sale if the assisted owner is no longer residing in the assisted residence or for any other breaches of the agreement with the City. Recaptured funds may be used for any HOME eligible activity.
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These recaptured funds are identified in the City’s accounting system by a unique recaptured revenue object number. Any recaptured funds will be used by the City before any additional HOME funds.
A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
See above.
Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
The City does not intend to use HOME funds under the 2023 Annual Action Plan to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.
Emergency Solutions Grant (ESG)
Reference 91.220(I)(4)
Include written standards for providing ESG assistance (may include as attachment).
The Written Standards for Providing ESG Assistance are included in Appendix C.
If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.
The County of San Bernardino coordinates homeless services with both entitlement and non-entitlement cities through its Department of Behavioral Health Office of Homeless Services (OHS). This office is the designated administrative authority, or Lead Agency, over the County’s Continuum of Care (COC) and Coordinated Entry System (CES). The County oversees ESG grant distribution for its Service Area, which encompasses all unincorporated areas along with 12 non-entitlement cities within the county (the County Consortium). County ESG grant sub-recipients are required to coordinate with and report their homeless services data to the Homeless Management Information System (HMIS) for use by the County’s OHS and its COC. The HMIS maintains exceptions for victim service providers as set forth under 24 CFR 576.400(d).
Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).
The City solicited applications for ESG funds through a Notice of Available Funds (NOFA) process.
Respondents were required to submit proposals for homeless prevention and rapid-rehousing activities.
Respondents were required to have experience with providing these eligible activities, and already participate in, or be willing to participate in the County Homeless Provider Network and HMIS in conjunction with the COC. The applications will be reviewed by an Evaluation Committee, which was made DRAFT
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up of no less than one homeless person or formally homeless person. Every effort will be made to conclude this process so work may commence on July 1, 2022.
If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction mu st specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.
As part of the process of making sub-awards, the City included a formerly homeless person on the Evaluation Committee to assist in reviewing applications and making funding recommendations.
Describe performance standards for evaluating ESG.
The City and the COC will continue to work together to develop performance standards that provide a measure to evaluate each ESG subrecipients effectiveness, such as how well the service provider succeeded at (1) targeting those who need the assistance most; (2) reducing the number of people living on the streets or emergency shelters; (3) shortening the time people spend homeless; and (4) reducing each program participant’s housing barriers or housing stability risks. These performance standards will be incorporated into the City’s Subrecipient Agreement, and to the extent possible, will be tracked and measured in HMIS.
Current Performance Standards for the ESG grant are shown in the attached table labeled “ESG Performance Standards.” As previous performance accounting was based upon the Homeless Prevention and Rapid-Re-Housing (HPRP) program, which operated under a different set of regulations, these performance standards will be refined as the program progresses.
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