{{section.number}}2
CITY OF GLENDALE, CALIFORNIA
REPORT TO THE JOINT MEETING: GLENDALE CITY COUNCIL AND
GLENDALE HOUSING AUTHORITY
AGENDA ITEM
Report: Status of Program Planning for the FY 2024-2025 Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships Act (HOME) Annual Action Plan
1. City Council Motion approving the FY 2024-2025 CDBG program priorities; a FY 2024-2025 Proposed CDBG Funding Allocation Plan by Funding Category; and issuance of an RFP to community agencies for CDBG.
2. Housing Authority Motion approving the FY 2024-2025 CDBG program priorities; a FY 2024-2025 Proposed CDBG Funding Allocation Plan by Funding Category; and issuance of an RFP to community agencies for CDBG.
COUNCIL ACTION
Item Type: Action Item
Approved for November 14, 2023 calendar
EXECUTIVE SUMMARY
Program planning for FY 2024-2025 Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG) and HOME Investment Partnership (HOME) Annual Action Plan includes determining program priorities (Exhibit 1), a proposed CDBG Funding Allocation Plan (Exhibit 3), and a Request for Proposal (RFP) to issue to community agencies for CDBG Public Social Services and CDBG Capital Improvement project funding (Exhibit 4). The ESG Funding Allocation Plan is included in the report as Exhibit 5.
2{{section.number}}2
4 7
2 6
RECOMMENDATION
City Council and Housing Authority approve:
FY 2024-2025 CDBG program priorities; a FY 2024-2025 Proposed CDBG Funding Allocation Plan by Funding Category; and issuance of an RFP to community agencies for CDBG Public Social Services and CDBG Capital Improvement Projects.
ANALYSIS
Each year, the City of Glendale receives approximately $3,460,000 in formula entitlement funds from the U.S. Department of Housing and Urban Development (HUD) to administer community development, housing, and homeless programs in the community. The City is tasked with developing an annual plan for the use of these funds, consistent with a five- year strategic plan (Consolidated Plan) on file with HUD, which is based on a comprehensive community needs assessment. The most prominent program in the plan development process, with a proposed annual allocation of $1,700,000, is the Community Development Block Grant (CDBG) program. This program has the greatest level of community participation, local discretion, and demand for service. Therefore, this report is focused on program planning for the FY 2024-2025 CDBG program.
The City has been receiving CDBG funds from HUD since the inception of the program in 1974. The Emergency Solutions Grants (ESG) program was added in 1987, and the HOME Investment Partnerships (HOME) program was added in 1992.
The national and local objectives of the CDBG program are: 1) to eliminate conditions of slums and blight, 2) to provide programs and services that benefit low- and moderate- income persons, including the homeless, and 3) to meet an urgent need.
The primary objectives of the ESG program are to 1) engage homeless individuals and families living on the street, 2) rapidly re-house homeless individuals and families, 3) help operate and provide essential services in emergency shelters for homeless individuals and families, and 4) prevent individuals and families from becoming homeless.
The objective of the HOME program is to provide and preserve affordable housing for low-income households.
To receive CDBG, ESG, and HOME entitlement funds, the City is required by HUD to develop a Five-Year Consolidated Plan (long term, community based, strategic plan). The current Five-Year (2020-25) Consolidated Plan was approved by the City Council in June 2020 and approved by HUD. The Consolidated Plan provides a profile of the City and outlines the City’s long-term strategy for addressing identified local community development, homeless, housing and economic development needs and priorities; funding strategies; and proposed outcomes based on a comprehensive community needs assessment with extensive community input and data analysis. 3{{section.number}}2
4 7
2 6
CDBG ADVISORY COMMITTEE:
In developing the Annual Plan and the Consolidated Plan, HUD requires that the City involve citizens in the plan development and approval process. As a result, to achieve this goal, the City Council appoints a citizen CDBG Advisory Committee, whose responsibility is to help oversee the CDBG planning process. The Committee’s current responsibilities include:
•Reviewing and commenting on the annual community needs assessment strategy, •Recommending program priorities, based on findings from the needs assessment, as well as input from the City Council,
•Reviewing sub-recipient performance, such as site visits and outcome reviews, •Evaluating funding proposals,
•Interviewing community agencies and City departments that submit project proposals,
•Recommending projects for funding,
•Reviewing and approving revisions or amendments to projects throughout the program year, and
•Reviewing and recommending reprogramming of CDBG funds.
The current CDBG Advisory Committee is comprised of the following members:
Committee Member Appointing Council Member
1. Anita Quiñonez-Gabrielian (Chair) Councilmember Paula Devine
2. Armik Avedisian (Vice Chair) Councilmember Ardy Kassakhian
3. Zanku Armenian Mayor Brotman
4. Ronnie Gharibian Councilmember Ara Najarian
5. Marina Manoukian Councilmember Elen Asatryan
The CDBG Advisory Committee reviewed the results of community input, compared it with the current program priorities, and determined program priorities for FY 2024-2025.
PROGRAM PRIORITIES:
Based on the CDBG Advisory Committee’s evaluation of the input received, it was determined that the needs and priorities expressed by the community and corroborated by census data continue to be consistent with current program priorities. The program priorities as presented in Exhibit 1 are now recommended for Council’s approval and for publication in the RFP.
HUD Eligible Target Areas:
Generally, capital and neighborhood improvement projects and social services that serve an area benefit must be in HUD eligible, low-income areas and neighborhoods with physical conditions of slums and blight. Therefore, in addition to resident opinion surveys, and focus groups, another aspect of the community needs assessment is a demographic analysis of the City to ascertain which area of the City has the highest concentration of low-income households and the physical conditions that would be eligible for CDBG funds.
4{{section.number}}2
4 7
2 6
Based on 2022 1-year estimates U.S. Census American Community Survey (ACS), the percentage of persons below the poverty level in Glendale is 13.9%— with certain census tracts containing over a third of the population under the poverty level with low-income families concentrated in certain south Glendale and west Glendale census tracts that would be considered HUD eligible target areas for public improvements, parks, and community centers. Target areas include residential zones, schools, and commercial areas. (See Low-Income Census Tract Map Exhibit 2)
As part of the program planning process, a Proposed FY 2024-2025 CDBG Funding Allocation Plan by Funding Category has been developed based on a community needs assessment and the City’s best estimate of the availability of HUD entitlement funds.
FUNDING ALLOCATION PLAN
Each year CDBG staff and the CDBG Advisory Committee recommend a Proposed CDBG Funding Allocation Plan (based on the City’s best estimate of federal funding levels and available reprogrammed funds), which establishes parameters for funds available in the different funding categories to community agencies under the RFP process.
It is estimated that CDBG funds available for FY 2024-2025 will include a CDBG HUD entitlement grant in the amount of $1,700,000, $380,788 in returned funds from FY 2019 and FY2022 canceled Catholic Charities of Los Angeles Community Center and Roofing projects, and $146,795.13 in undesignated fund balance from program years 2020 and 2021.
The CDBG Advisory Committee reviewed the proposed plan at their meeting on October 23, 2023, and recommends City Council approval of the FY 2024-2025 Proposed CDBG Funding Allocation Plan by Funding Category presented in Exhibit 3, including the recommended pre-designated City CIP as proposed. A summary of the FY 2024-2025 Proposed Funding Allocation Plan as recommended by the CDBG Advisory Committee is as follows:
• $1,632,583.13Capital Improvement Projects
o$762,583.13 Community Organizations CIP
o$500,000 Pre-designate to City CIP Pac/Ed Artificial Turf Replacement o$370,000 Pre-designated to City CIP Pacific Natural Grass •$255,000Public Social Service Programs (15% of FY24-25 entitlement) •$340,000 Program Administration (20% of FY24-25 entitlement) The CDBG Advisory Committee or City Council could still revise the capital improvement funding allocations after an evaluation of capital improvement funding proposals received. 5{{section.number}}2
4 7
2 6
Program Administration:
HUD allows jurisdictions to use 20% of their CDBG entitlement funds for administration of the CDBG program to ensure that they have the capacity to comply with the administratively laden HUD requirements and minimize financial risks, especially as it relates to working with non-profit agencies. The core functions of CDBG administration is planning (including program planning and procurement), monitoring, contract compliance, financial management and project coordination. Based on the federal administration’s emphasis on accountability and transparency, HUD is becoming stricter in requiring more low-income documentation from the City’s sub-recipients to show eligibility of CDBG funds. This translates to greater financial risk and need for management and oversight.
It is proposed to allocate $340,000 in FY 2024-2025 for planning, program management and oversight of the CDBG and ESG programs; in addition to coordination of HUD compliance with the Community Development Department-Housing Division.
Public Social Services:
HUD limits the amount of funds that can be spent on social services to 15% of the entitlement amount. CDBG funds are eligible to be used for social services provided they are for a new or expanded level of service at the time an agency first applies for the funds.
Services must be shown to benefit primarily low and moderate-income families. To meet this requirement, agencies are required to collect back-up income documentation on 10% of the persons served, as a sampling of income eligibility. It is proposed to allocate $255,000 in FY 2024-2025 for social services to community agencies via an RFP process.
This represents approximately the same amount of funding as the current year.
Capital/Neighborhood Improvement Projects:
Generally, capital improvement funds represent 65% of entitlement funds, plus any available reprogrammed funds-which can only be used for capital projects. This funding category includes community centers, such as parks, libraries, recreation centers, senior centers, youth centers, employment centers, health centers, and social service centers; handicapped accessibility projects anywhere in the City; public improvements in low income neighborhoods, such as streets, alleys, curbs, sidewalks, parkways, lighting and traffic calming and economic development projects. Community hearts, parks, health centers, and libraries must be located in low-income census tracts and/or must demonstrate that they serve primarily low- and moderate-income persons.
Historically, the City Council has expressed its priorities for CDBG funding which must include City capital improvement projects (CIP) pre-designated to receive funding separate from the competitive RFP process. Thus, annually, the Proposed CDBG Funding Allocation Plan by Funding Category always identifies a City CIP project as a pre-designated project. It is proposed to allocate $1,632,583.13 in FY 2024-2025 for capital improvement projects to City and community agencies.
Total capital improvement funds available:$1,632,583.13 Total (undesignated) funds for community CIP projects: $762,583.13 6{{section.number}}2
4 7
2 6
Total pre-designated funds for City CIP project(s): $870,000.00 •Pac/Ed Artificial Turf Replacement Project $500,000.00 •Pacific Natural Grass Project $370,000.00
Historically, the City Council has expressed its priorities for CDBG funding. As a result, the Proposed CDBG Funding Allocation Plan by Funding Category includes City capital improvement projects pre-designated to receive funding separate from the competitive RFP process. $500,000 is pre-designed for Pac/Ed Artificial Turf Replacement Project.
As presented in the earlier staff report, staff recommended shifting $370,000 in CDBG funds from program year 2018 Pacific Natural Grass Project to 2021 Pacific Splash Pad Project as a proactive measure for HUD timeliness requirement. Therefore, $370,000 is being requested to backfill the funds for FY 2024-2025 for Pacific Natural Grass. A total of $870,000 is being requested to fund City CIP projects in FY 2024-2025.
REQUEST FOR PROPOSAL (RFP) PROCESS:
Subject to approval of the program priorities and a CDBG Funding Allocation Plan by Funding Category, it is recommended that the City Council/Housing Authority authorize the issuance of a RFP for both social service programs and CIP. (See Exhibit 4) Any non-profit agency that meets the pre-qualification requirements is eligible to apply for and receive CDBG funds provided that project meets one of the three broad national objectives of: 1) serving low-income persons, 2) preventing or eliminating conditions of slums and blight and 3) meeting an urgent need. In addition, funded projects are required to serve primarily Glendale residents and not to discriminate in the provision of services.
Further, projects that meet the established program priorities are given preference for funding.
At the August 28, 2023, meeting of the CDBG Advisory Committee, policy recommendations were introduced to address the HUD CDBG Timeliness requirement.
As a requirement of being timely, the City cannot have more than 1.5 times its current annual CDBG entitlement 60 days prior to the end of the fiscal year. The City has not been able to meet this requirement to expend funds for two program years and had to submit a CDBG Workout Plan to HUD.
To reduce the chance of not meeting the timeliness requirement in the future, staff proposed five new policy recommendations that were approved by the CDBG Advisory Committee and incorporated in the RFP. Two of the policy recommendations were also included in the RFP packets for Public Social Services.
The recommendations are as follows:
Recommendation #1(both Public Social Services/CIP)
Disqualify incomplete community agency proposals where an agency fails to properly respond and correct for the weaknesses in their application which were identified on the Strength and Weakness Analysis.
7{{section.number}}2
4 7
2 6
Recommendation #2
Agencies cannot be funded for more than two CIP projects at any one time, can only apply for one project at a time in any given program year, and can only submit a proposal for a second capital improvement project if their first funded project is already in construction and will be completed within a year of the application date.
Recommendation #3
Proposals must include one General Contractor estimate that reflects prevailing wage rates, but a minimum of two General Contractor estimates are strongly recommended.
Recommendation #4
A commitment to the timely completion of CIP projects reflected in the necessary completion of Project Planning and Design Phases. The proposal should reflect project readiness and completion, or near completion, of the following pre-construction activities:
• Feasibility studies
• Conceptual designs
• Pre-schematic work
• Schematic documents and plan documentation
• Technical consulting
• Construction Documents and/or specifications
• Permits (status of plan check)
Recommendation #5 (both Public Social Services/CIP)
Agencies must attend the Mandatory CDBG Technical Support Meeting as a requirement of submitting a CDBG Request for Proposal for Capital Improvement Projects.
Staff recommends that proposals for social service funds ($255,000) be solicited to community agencies and City departments under a competitive RFP process, and that proposals for undesignated CIP funds ($762,583) be solicited to community agencies only.
New Online Grant Management System
In recent years, staff has wanted to move away from the traditional hard copy grant application submission process to an online submission system for community agencies.
In 2022-2023, staff met with various vendors who offer online grant management systems and selected ZoomGrants to provide services to the City using an online web-based system. ZoomGrants was chosen because of their extensive knowledge in working with CDBG entitlement jurisdictions, federal, state, and local agencies, and foundations. Staff is currently in the process of setting up ZoomGrants Online Application Management System and will begin to conduct trainings with community agencies and CDBG Advisory Committee members in the coming months ahead. ZoomGrant is contracted with the City for 36 months (3 years). During the contract period the City will go through 2-3 grant cycles to properly evaluate the system and will seek feedback from community agencies and CDBG Advisory Committee members as end users.
8{{section.number}}2
4 7
2 6
The RFP packets, which are included as Exhibit 4, are redlined for information that will be revised once an online system is implemented through ZoomGrants.
Subject to City Council and Housing Authority’s approval, the RFP for the CDBG program is scheduled to be issued on November 17, 2023, with the due date of December 28, 2023. A mandatory Technical Assistance Meeting will be held on November 29, 2023, for all applicants applying for CDBG social service and CIP funds.
PROPOSAL EVALUATION PROCESS:
Historically, under the open, competitive RFP process, the City receives an estimated 20 funding proposals. Of the 20 proposals received, typically 15 are for social services and 5 are for community CIP projects. Once proposals are received, a staff analysis is prepared in January 2024 to indicate strengths and weaknesses or discrepancies relative to the requirements of the RFP and the evaluation criteria, including financial data and budget worksheets. The analysis is then sent to each agency and they have one week to submit a response to each weakness. The responses are then attached to the proposals.
The proposals, staff analyses, and agency responses are forwarded to the CDBG Advisory Committee members for review. In March 2024, the Committee, in one full-day and one half-day session, interviews each community agency requesting funds, then deliberates and develops funding recommendations. The funding recommendations are published in the newspaper, a public hearing is held, and then in May 2024, the recommendations are submitted to the Council and Housing Authority for final approval.
ESG PROGRAM:
The FY 2024-25 ESG Program (estimated at $160,000) follows the same process as CDBG, in terms of identification of homeless priorities, except that the ESG funding plan is a two-year plan and the funding recommendations are approved by the Continuum of Care (CoC) Board of Directors. FY 2024-2025 is Year Two of a two-year plan (FY2023- 2025). Programs approved during the initial round of funding (FY 2023-204) that meet outcomes and performance goals may be recommended for renewal for FY 2024-25 versus having to go through another RFP process. Exhibit 5 reflects FY 2023-2025 ESG Funding Allocation Plan.
The current CoC Board is comprised of the following members:
Board Member Agency
1. Melissa Younesian (Chair) - Verdugo Jobs Center
2. Vacant (Vice Chair)
3. Alex Krikorian - Glendale Police Department
4. Barron Hopkins - Homeless Alumni
5. Vacant
HOME PROGRAM:
The HOME program funding plan will be determined by the Housing Authority as part of the Housing Authority’s review and approval of the annual affordable housing strategy, with consideration given to input received during the CDBG, ESG and HOME community 9{{section.number}}2
4 7
2 6
needs assessment, which includes a HUD required discussion of housing needs. It is estimated that $1,600,000 in HOME funds will be available for the City in FY 2024-25.
It is important to note that the proposed funding allocation plan is preliminary. The entitlement allocation is based on the City’s best estimate of previous year’s funding.
Congress has not approved a federal budget for HUD and is operating on a Continuing Resolution until November 17, 2023; therefore, the City will not be notified of its final entitlement until approximately March 2024.
Summary:
When HUD issues final allocations for CDBG, ESG, and HOME programs in 2024, staff will return to City Council and Housing Authority with a final Annual Action Plan report to include the final entitlement amounts, which will be part of the 2024-2025 budget process.
The City’s projected funding for the FY 2024-2025 CDBG, ESG and HOME Annual Plan is as follows:
FY 2023-2024 FY 2024-2025 Inc./Dec
CDBG Entitlement: $1,764,982 $1,700,000 - 3.7%
ESG Entitlement: $152,207 $160,000 + 5.1%
HOME Entitlement: $1,576,169 $1,600,000 + 1.5%
HOME Program Income: $130,000 $130,000 +/- 0%
TOTAL: $3,623,358 $3,590,000 - 0.9%
STAKEHOLDERS/OUTREACH
The Consolidated Plan is the main planning document that HUD uses to measure the City’s effectiveness and to approve the submission of Annual Plans and other funding applications to HUD. The greatest effort and emphasis to conduct a community needs assessment to gain input from the community and to identify program priorities is with the development of the Consolidated Plan.
As part of the development of the FY 2024-2025 Annual Action Plan and the need to determine program priorities for the upcoming year, CDBG staff used multiple platforms to assess community need in gathering community input:
1) In-Person meeting at Pacific Community Center held on October 4, 2023 2) Virtual meeting held on October 5, 2023, at 7:00 p.m. via Microsoft Teams. 3) Email comments from October 2, 2023 to October 6, 2023. 4) Telephone call-in option from October 2, 2023 to October 6, 2023 All the platforms included bilingual support in Armenian and Spanish. 10{{section.number}}2
4 7
2 6
The community meetings were advertised through the newspaper, CSP’s newsletter, website, email blast to community agencies, and the City’s social media platforms (Twitter, Facebook, Instagram and Nextdoor).
Three people attended the in-person community meeting. One resident participated in the virtual community meeting. Two (2) email comments were received.
Staff also conducted an analysis of 2022 ACS 1-year estimates from US Census American Community Survey (ACS) data estimates, updated the summary list of key demographic indicators from a variety of sources, and reviewed available public needs assessment reports.
Staff evaluated the results of the community input and data estimates, compared them with the ConPlan program priorities, and determined program priorities for FY 2024-2025.
The Key Demographic Indicators and Public Hearing Comments are included as part of Exhibit 6.
FISCAL IMPACT
There is no fiscal impact associated with this report at this time. When HUD issues the final allocations for CDBG, ESG, and HOME programs, staff will return to City Council and Housing Authority with a final Annual Action Plan report to include the final entitlement amounts, which will be included as a part of the FY 2024-25 budget process.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
Because no possibility exists that the activity in question (program planning future Federal grant funding) may have a significant effect on the environment, the activity is not subject to CEQA review under the commonsense exemption set forth in 14 Cal. Code Regs. § 15061 (b)(3).
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
City Council:
Alternative 1: Do not approve 1) FY 2024-25 CDBG program priorities, 2) FY 2024- 25 Proposed CDBG Funding Allocation, 3) issuance of a CDBG RFP, which will risk the City losing HUD funds.
Alternative 2: Consider any other alternative not proposed by staff.
Housing Authority:
11{{section.number}}2
4 7
2 6
Alternative 1: Do not approve 1) the FY 2024-25 CDBG program priorities, 2) a FY 2024-25 Proposed CDBG Funding Allocation Plan, and 3) the issuance of a CDBG RFP, which will risk the City losing HUD funds.
Alternative 2: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Onnig Bulanikian, Director of Community Services & Parks Prepared by:
Maggie Kavarian, Community Services Manager
Tereza Aleksanian, Deputy Director of Community Services & Parks Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1- FY 2024-2025 Program Priorities
Exhibit 2- Low-Income Census Tract Map
Exhibit 3- FY 2024-2025 CDBG Proposed Funding Allocation Plan by Funding Category
Exhibit 4- FY 2024-2025 CDBG RFP for Public Social Services and Capital Improvement Instructions and Funding Application
Exhibit 5- FY 2023-2025 Funding Decisions by Glendale Continuum of Care Board Exhibit 6- Key Demographic Indicators and Public Hearing Comments