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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 2025-2026 Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships Act (HOME) Annual Action Plan
1. City Council Motion approving the 2025-2030 Consolidated Plan program priorities, FY 2025-2026 CDBG program priorities, and FY 2025-2026 Proposed CDBG Funding Allocation Plan by Funding Category; and issuance of an RFP to community agencies for CDBG and ESG public social services and CDBG capital improvement projects.
2. Housing Authority Motion approving the 2025-2030 Consolidated Plan program priorities, FY 2025-2026 CDBG program priorities, and FY 2025-2026 Proposed CDBG Funding Allocation Plan by Funding Category; and issuance of an RFP to community agencies for CDBG and ESG public social services and CDBG capital improvement projects.
COUNCIL ACTION
Item Type: Action Item
Approved for November 5, 2024 calendar
EXECUTIVE SUMMARY
Program planning for the FY 2025-2026 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 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.
Staff is seeking City Council approval of the 2025-2030 Consolidated Plan program priorities; FY 2025-2026 CDBG program priorities; a FY 2025-2026 Proposed CDBG Funding Allocation Plan by Funding Category; and issuance of an RFP to community agencies for CDBG and ESG public social services and CDBG capital improvement projects.
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RECOMMENDATION
City Council and Housing Authority should approve the 2025-2030 Consolidated Plan program priorities, FY 2025-2026 CDBG program priorities, and FY 2025-2026 Proposed CDBG Funding Allocation Plan by Funding Category; and issuance of an RFP to CDBG and ESG community agencies for CDBG and ESG social services and CDBG capital improvement projects.
ANALYSIS
Each year, the City of Glendale receives approximately $3,355,000 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 action plan for the use of these funds, consistent with a five-year strategic plan (Consolidated Plan) on file with HUD, 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 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 2025-2026 CDBG program.
The City has received CDBG funds 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 to develop a Five-Year Consolidated Plan (a long-term, community-based strategic plan). The current Five-Year (2020-25) Consolidated Plan (ConPlan) was approved by the City Council in June 2020 and approved by HUD. The ConPlan 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.
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This year, in addition to the Annual Action Plan, the City must prepare and submit to HUD a new Five-Year (2025-2030) ConPlan. Although Council is being asked to approve the 2025-2030 ConPlan program priorities at this time so that they can be incorporated into the FY 2025-2026 RFPs, the complete Five-Year Plan, inclusive of the program priorities, will be submitted for review and approval by the City Council and Housing Authority concurrent with the FY 2025-2026 Annual Action Plan in Spring of 2025.
CDBG ADVISORY COMMITTEE:
In developing the Annual Action Plan and the ConPlan, HUD requires that the City involve citizens in the plan development and approval process. As a result, the City Council appoints a citizen CDBG Advisory Committee, the responsibility of which 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
Armik Avedisian (Chair) Councilmember Ardy Kassakhian
Marina Manoukian (Vice Chair) Mayor Elen Asatryan
Zanku Armenian Councilmember Dan Brotman
Anita Quiñonez-Gabrielian Fmr. Councilmember Paula Devine Ronnie Gharibian Councilmember Ara Najarian
COMMUNITY NEEDS ASSESSMENT
The ConPlan is the main planning document that HUD uses to measure the City’s effectiveness and to approve the submission of Annual Action Plans and other funding applications to HUD. The ConPlan must be broad-based, examining statistical and analytical information, and community-based, relying on direct input from the community (especially residents in low- and moderate-income HUD eligible census tracts) to identify the needs and priorities and long-term strategies to meet those needs.
To prepare the ConPlan and determine program priorities for the next five years, including FY 2025-2026, the City hired Veronica Tam and Associates as the consultant to help with the expansive community needs assessment process, which included the following:
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1. Development of a Community Needs Survey in three languages (English, Armenian, and Spanish) made available through SurveyMonkey to those who live, work and go to school in the City of Glendale. A total of 759 online surveys were received and tabulated.
2. A public meeting held on October 2, 2024, at the Adult Recreation Center with breakout sessions available in English, Armenian and Spanish to help identify community needs and priorities. One hundred twenty attendees participated in this meeting with participation in all three language sessions.
3. Analysis of housing and population characteristics from the 2023 American Community Survey (ACS) and a variety of other sources to update a summary list of key demographic indicators.
As a result of these efforts, the FY2025-26 Annual Action Plan and 2025-2030 ConPlan program priorities were developed and recommended to the CDBG Advisory Committee.
The CDBG Advisory Committee reviewed the results of community input, compared the results with the current program priorities, and approved program priorities for 2025-2030 ConPlan and FY 2025-2026 Annual Action Plan.
PROGRAM PRIORITIES:
Based on the CDBG Advisory Committee’s evaluation of the input received, the needs and priorities expressed by the community and corroborated by census data were found to be consistent with current program priorities. The CDBG Advisory Committee program has recommended the priorities as presented in Exhibit 1 for Council’s approval and for publication in the RFP. The Committee recommended that the 2025-2030 ConPlan program priorities, which were originally ranked in order of importance based upon the Community Needs Survey results when presented to the CDBG Advisory Committee, remain unranked. Exhibit 1 as presented to City Council is as recommended by the CDBG Advisory Committee.
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 surveys and a community meeting, 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.
Based on 2023, one-year estimates of ACS, the percentage of persons below the poverty level in Glendale is 13.4%, with certain census tracts containing more than one-third of the population under the poverty level. Specifically, low-income families are 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 Exhibit 2) {{section.number}}{{item.number}}5
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FUNDING ALLOCATION PLAN
Each year the CDBG Advisory Committee recommends a Proposed CDBG Funding Allocation Plan (based upon the City’s best estimate of federal funding levels and available reprogrammed funds) to the City Council, which establishes parameters for funds available to community agencies in the different funding categories under the RFP process.
Staff estimates that the FY 2025-2026 HUD CDBG entitlement will be $1,700,000.
The Advisory Committee reviewed the FY 2025-2026 Proposed CDBG Funding Allocation Plan by Funding Category presented in Exhibit 3 on October 23, 2024, and has recommended it to City Council for approval. The proposed plan includes pre- designating funds to a City CIP project. A summary of the FY 2025-2026 Proposed Funding Allocation Plan as recommended by the CDBG Advisory Committee is as follows:
Program Administration $340,000
Public Social Service Programs $255,000
Capital Improvement Projects$1,105,000
•Community Organizations CIP $605,000
•Pre-designated City CIP Projects $500,000
Total $1,700,000
The CDBG Advisory Committee and/or City Council can revise the capital improvement funding allocations after receiving and evaluating capital improvement project proposals from the community.
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 HUD requirements and minimize financial risks, especially as they relate to working with non- profit agencies. The core functions of CDBG administration are planning (including program planning and procurement); monitoring; contract compliance; financial management; and project coordination. Based on the federal government’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 for CDBG funds. This translates to greater financial risk and need for management and oversight. The proposal includes allocation of $340,000 in FY 2025-2026 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:
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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 used 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. The proposal includes allocation of $255,000 in FY 2025-2026 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 applies to 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; and public improvements in low income neighborhoods, such as streets, alleys, curbs, sidewalks, parkways, lighting and traffic calming and economic development projects. Community 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 preference that City capital improvement projects (CIP) receive funding separate from the competitive RFP process. Thus, annually, the proposed CDBG Funding Allocation Plan by Funding Category identifies a City CIP project as a pre-designated project to receive funding separate from the competitive RFP process.
The proposal includes allocation of $1,105,000 in FY 2025-2026 for capital improvement projects to City and community agencies, of which $500,000 is pre-designed for two (2) park playground replacement projects (Elk and Wilson).
Total capital improvement funds available:$1,105,000
Total (undesignated) funds for community CIP projects: $605,000 Total pre-designated funds for City CIP project(s): $500,000 •Elk Mini Park Playground Replacement $250,000
•Wilson Mini Park Playground Replacement $250,000
REQUEST FOR PROPOSAL (RFP) PROCESS:
Subject to approval of the program priorities and a CDBG Funding Allocation Plan by Funding Category, staff recommends that the City Council and Housing Authority authorize the issuance of an RFP for both social service programs and CIP projects. (See Exhibit 4)
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Any non-profit agency that meets the pre-qualification requirements is eligible to apply for and receive CDBG funds, provided that the 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 primarily serve Glendale residents and not to discriminate in the provision of services.
Further, projects that meet the established program priorities are given preference for funding.
Staff recommends that proposals for social service funds ($255,000) be solicited from community agencies and City departments under a competitive RFP process, and that proposals for undesignated CIP funds ($605,000) be solicited to community agencies only.
ZoomGrants Online Grant Management System
ZoomGrants online grant application system will continue to be used to submit grant proposals in FY 2025-2026. The RFP packet, which is included as Exhibit 4, has been generated through the ZoomGrants online system.
Subject to City Council and Housing Authority approval, the RFP for the CDBG program is scheduled to be released on November 18, 2024, with the due date of January 10, 2025. A mandatory Technical Assistance Meeting will be held on December 4, 2024, for all agencies 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 five are for community CIP projects. Once proposals are received, a staff analysis will be prepared in January 2025 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 February/March 2025, the Committee, in one full-day and one half-day session, will interview each community agency requesting funds, deliberate and develop funding recommendations. The funding recommendations are published in the newspaper, a public hearing is held, and then in May 2025, the recommendations will be submitted to the City Council and Housing Authority for final approval.
ESG PROGRAM:
The FY 2025-2026 ESG Program (estimated at $155,000) 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 2025-2026 will be a two-year funding plan (FY2025- 2027). Programs approved during the initial round of funding (FY 2025-2026) that meet outcomes and performance goals may be recommended for renewal for FY 2026-27, {{section.number}}{{item.number}}8
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rather than pursuant to another RFP process. Staff recommends that City Council and Housing Authority authorize the issuance of an RFP for the ESG Program.
The current CoC Board is comprised of the following members:
Board Member Agency
1. Lt. Alex Krikorian (Chair) - Glendale Police Dept.
2. Dep. Chief Jeffrey Brooks (Vice Chair) - Glendale Fire Dept.
3. Melissa Younesian - Verdugo Jobs Center
4. Hagop Eulmessekian - Glendale Unified School District
5. Judith Messick - Lived Expertise
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 needs assessment, which includes a HUD-required discussion of housing needs. An estimated $1,500,000 in HOME funds will be available for the City in FY 2025-26.
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 the previous year’s funding.
Congress has not approved a federal budget for HUD and is operating on a Continuing Resolution until December 20, 2024; therefore, the City will not be notified of its final entitlement until approximately March 2025.
Summary:
When HUD issues final allocations for the CDBG, ESG, and HOME programs in 2025, staff will return to City Council and Housing Authority with a final Annual Action Plan report that includes the final entitlement amounts, which will be part of the 2025-2026 budget process.
The City’s projected funding for the FY 2025-2026 CDBG, ESG and HOME Annual Action Plan is as follows:
FY 2024-2025 FY 2025-2026 Inc./Dec
CDBG Entitlement: $1,733,207 $1,700,000 - 1.9%
ESG Entitlement: $155,123 $155,000 - 0.1%
HOME Entitlement: $1,247,169 $1,500,000 + 20.3%
TOTAL: $3,135,499 $3,355,000 + 7.0%
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STAKEHOLDERS/OUTREACH
The ConPlan is the main planning document that HUD uses to measure the City’s effectiveness and to approve the submission of Annual Action 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 comes with the development of the ConPlan.
As part of the development of the FY 2025-2026 Annual Action Plan and as preparation for the five-year ConPlan, multiple platforms and methods were used to assess community need and gather community input to determine program priorities for the upcoming year as well as 2025-2030, including an in-person community meeting held at the Adult Recreation Center on October 2, 2024 with breakout sessions in English, Armenian and Spanish.
The community meeting was advertised through the City/department website, city connection, CSP newsletter, email distribution list, City department counters, community events, flyers placed at downtown Glendale businesses, Glendale Unified School District, Glendale Community College, non-profit email distribution list, and social media platforms (Facebook, Instagram, X, and Nextdoor).
One hundred twenty people attended the in-person community meeting. Emails and telephone calls to make additional comments were provided by residents.
Free In-N-Out dinner, free onsite childcare, and raffle prizes were advertised on the meeting flyer to encourage more participation at the meeting.
Staff evaluated the results of the community survey, input and data estimates, and determined program priorities for FY 2024-2025 and 2025-2030 ConPlan. 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 the CDBG, ESG, and HOME programs, staff will return to the City Council and Housing Authority with a final Annual Action Plan report that includes the final entitlement amounts, which will be budgeted as a part of the FY 2025-26 budget process.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The action being considered does not constitute a “project” within the meaning of CEQA pursuant to CEQA Guidelines section 15378(b)(2), as it constitutes continuing administrative or maintenance activity, namely, general policy and procedural making, and section 15378(b)(4), as it creates a government funding mechanism or constitutes other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; {{section.number}}{{item.number}}10
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thus, it is not subject to CEQA pursuant to CEQA Guidelines section 15060(c)(3).
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Do not approve 2025-2030 ConPlan program priorities, FY 2025-26 CDBG program priorities, FY 2025-26 Proposed CDBG Funding Allocation, or issuance of a CDBG and ESG 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
Arsine Isayan, Homeless Services Manager
Pamela Jackson, Housing Coordinator
Tereza Aleksanian, Assistant Director of Community Services & Parks Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: 2025-2030 Program Priorities
Exhibit 2: Low-Income Census Tract Map
Exhibit 3: FY 2025-2026 CDBG Proposed Funding Allocation Plan by Funding Category
Exhibit 4: FY 2025-2026 CDBG RFP for Public Social Services and Capital Improvement Instructions and Funding Application
Exhibit 5: FY 2025-2027 ESG RFP
Exhibit 6: Key Demographic Indicators and Public Hearing Comments