Agenda Item No. 14
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 24, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Potential Programs/Projects for Inclusion in the 2024 State Community Development Block Grant Application
RECOMMENDATION
Conduct a public hearing to solicit community input and provide direction on the Community Development Block Grant (CDBG) eligible activities to apply for under the upcoming 2024 CDBG Notice of Funding Availability (NOFA).
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program authorizes the use of funds to provide decent housing, suitable living environments, and economic opportunities to low- and moderate-income families. There are two types of CDBG programs: “entitlement1
” and “non-entitlement.” The “non-entitlement” program is administered by the State Department of Housing and Community Development (HCD).
Beginning in 2013, the City has participated in the “non-entitlement” program where the City can apply for available funding under a competitive application process. The HCD publishes a Notice of Funding Availability (NOFA) for each program year for eligible projects. Since 2013, the City has received grant awards for the following projects:
City Awarded Programs
Waterline Improvement Project (2013, 2017, 2020) $5,900,000 Subsistence Payments/Eviction Prevention Program (2013, 2017, 2020) $840,000 Security Deposits/Rapid Rehousing Program (2013, 2017, 2020) $303,000 Childcare Training Program (2020 Coronavirus) $51,000
Warming Center Operation Program (2020 Coronavirus) $163,000 Homeless Services Program (2020 Coronavirus) $256,000
Homeless Shelter Operation Program (2022) $500,000
Planning/Technical Studies (2013, 2017)2 $200,000
Total $8,200,000
Pending Award Program
Ramona Garden Park Rehabilitation Project Phases 1 and 2 $3,300,000 1 Metropolitan cities and urban counties are entitled to receive annual grants from HUD under the “entitlement” program. Metropolitan cities are principal cities or Metropolitan Areas (MAs), or other cities within MAs that have populations of at least 50,000. Urban Counties are within MAs that have a population of 200,000 or more excluding the population of metropolitan cities within their boundaries.
2 Includes Housing Element Update, Economic Development Study, Senior Center Feasibility Study Staff Report: 2024 Community Development Block Grant Application Page 2 June 24, 2024
In September 2023, HCD released the 2023 CDBG NOFA and limited eligible “over-the-counter” activities to only projects, not programs. HCD also extended the application deadline for 2023 CDBG funds to March 2024. Pursuant to HCD requirements, staff had already advertised and held a public meeting on August 7, 2023, to seek public input on potential projects and programs.
The City received requests for two programs detailed in Attachment 2 and summarized below:
Table 1: 2023 CDBG NOFA Funding Requests
Grant
Category
Maximum
Award
Program
Applicant
Program Scope Cost Fund
Request
Over-theCounter
Microenterprise
Assistance
Program
$1,500,000 Upwards • Business Operations & Optimization • SUPPORT
• Childcare Assistance
$93,000
$841,000
$468,000
$1,500,000
Competitive
Public Service
Program
$300,000 5CHC • Non-Congregate Shelter Operations
• Security Deposit Assistance
$235,800
$64,200
$300,000
However, the programs listed above were not eligible under the revised HCD criteria and therefore could not be included in the City’s application. Based on the changes to the 2023 CDBG program year, Public Works staff identified an opportunity for an application for the Ramona Garden Park Rehabilitation Project Phases 1 and 2 identified within the City’s adopted Capital Improvement Program (CIP). Following Council’s approval of this application on February 13, 2024, staff submitted the application on March 1, 2024, for a total of $3.3 million. On March 21, 2024, HCD informed the City that the application was recommended for approval and staff anticipates final approval brought to the Council this summer.
2024 CDBG Notice of Funding Availability
The 2024 CDBG NOFA is anticipated to be released in July for approximately $30 million statewide with both an “Over-the-Counter” (OTC) component and “Competitive” component. The application period is expected to be from August through October 2024. HCD staff anticipates eligible jurisdictions will be able to apply for a maximum of three activities with total funding not to exceed $3.6 million. The activities will be allowed in one of the following combinations:
1. One OTC Project, One OTC Program, and one Competitive Program
2. One OTC Project, and up to two Competitive Programs
3. One OTC Program, and up to two Competitive Programs
OTC applications are intended for eligible “shovel-ready” projects and programs typically reviewed and awarded on a first-come, first-served basis. In contrast, Competitive applications for eligible activities are rated and ranked on a point system. For past NOFAs, competitive applications were ranked on categories such as Need (i.e. severity of a health or safety hazard), Benefit (i.e. percentage of households with incomes below 80% of the area median income (AMI)), Readiness (i.e. experience of the staff, consultant, or organization performing the activity), Jurisdictional Capacity/Past Performance (i.e. reporting and expenditure timeliness).
Eligible Activities
The authorizing statute of the CDBG program requires that each activity funded (project or program), except for program administration and planning activities, meet one of three national objectives:
Staff Report: 2024 Community Development Block Grant Application Page 3 June 24, 2024
• Benefit to low- and moderate-income (LMI) persons;
• Aid in the prevention or elimination of slums and blight; and • Meet a need having a particular urgency (referred to as urgent need) Historically, the City has qualified activities under the “benefit to LMI persons” which is the most predominately used National Objective. The activity must benefit an area that is comprised of at least 51% low- or moderate-income households or benefit individually qualified households. 54% of the city’s households qualify as low- or moderate-income households defined as at or below 80% of the county median income3
. Therefore, a proposed activity that benefits either a portion or the entire city is eligible dependent on the service areas outlined in the application.
In addition to meeting one of the three National Objectives, the activity must also fall under one of the categories listed below.
Table 2: CDBG Program Categories and Maximum Award Amounts Program Category Max Award Description
Over-the-Counter
Public Improvement
Project
$3,300,000 Project must be located in and serve a predominantly residential area within the city. Examples include water and sewer facilities, flood and drainage facilities, and accessibility related street improvements.
Public Facility Project $3,300,000 Examples include acquisition, rehabilitation or new construction of structures used for public purposes such as recreation, training, health services, education, nutrition, shelter, day care, temporary housing and fire protection.
Housing Project $3,300,000 • Multi-Family (five or more units at a specific site) Housing Rental Rehabilitation Project (with or without acquisition): provides a loan for repairs and improvements of renter-occupied units for sites where majority of the tenants qualify as LMI households.
• Acquisition of Real Property for Multi-Family (five or more units at a specific site) Projects: acquisition of a site where majority of tenants qualify as LMI households.
• Public Improvement Project in Support of New Housing: water and sewer facilities necessary to serve new housing developments designated for LMI households.
Housing Program $1,500,000 • Homebuyer Assistance Program: provides loans for down-payment or closing costs. The amount of the CDBG-funded loan cannot exceed the amount of the primary loan.
• Housing Rehabilitation Program for Single Family Dwellings:
provides loans for repairs and improvements of owner-occupied units. The loan cannot cause the total encumbrances on the property to exceed the property value.
Business Assistance
Program
$1,500,000 Provides funds for loans to business owners to finance working capital, furniture, equipment, and property repairs/improvements. CDBG regulations allow up to $35,000 of assistance per job position retained or created for LMI workers (owner/operator or employee). The City would need to retain the services of a firm experienced in CDBG loan underwriting. There are a number of federal requirements for this program that make it quite restrictive and cumbersome for businesses to be eligible.
Microenterprise
Assistance
$1,500,000 Provides funds for loans to LMI business owners for businesses with five or less workers (owner/operator and employees). Examples include business training, financing of working capital, furniture, equipment, and property repairs/improvements. The City would need to retain the services of a firm experienced in CDBG loan underwriting.
Competitive
3 Based on the 2015 American Community Survey utilized by HUD Staff Report: 2024 Community Development Block Grant Application Page 4 June 24, 2024
Program Category Max Award Description
Public Service
Program
$300,000 Examples include homeless services, subsistence payments, security deposits, childcare, health care, recreation programs, fair housing counseling, drug and alcohol abuse counseling and testing, homeless services, senior services, and nutrition services.
Planning and
Technical Assistance
$300,000 The product must show a connection to assisting with an eligible CDBG activity that, if implemented, meets a National Objective. Examples of products are studies or plans, which are submitted to the State at the time of completion. This activity requires a 5 percent cash match to be expended prior to the expenditure of CDBG funds.
2024 CDBG Funding Requests
Prior to applying for funds within the program year, the City is required to conduct public outreach regarding potential CDBG-eligible activities and hold a public hearing to discuss potential applications and allow for public comment. As mentioned earlier, staff conducted a public meeting on August 7, 2023 though the programs requested during this meeting were not eligible activities under the 2023 CDBG NOFA and have instead been brought forward as 2024 CDBG funding requests. Based on the funding success of the recent Ramona Garden Park Rehabilitation Project Phases 1 and 2 application, staff reviewed Council-adopted policies, the City’s CIP, and the Water and Sewer Master Plans to propose other qualifying/eligible projects (Attachment 2).
This public hearing provides the Council with the opportunity to review the funding requests (Attachment 2), select a maximum of three eligible activities subject to the 2024 CDBG NOFA with total funding not to exceed $3.6 million, and recommend staff to prepare an application with all required documents for the selected activities. As part of the public hearing, additional programs or projects may be considered, including those that may be suggested during the public hearing. At a future Council meeting, staff will return with a resolution authorizing the submittal of an application with the selected activities and funding levels. Table 3 below identifies potential projects or programs separated by grant category for the Council’s consideration:
Table 3: 2024 CDBG NOFA Funding Requests
Grant
Category
Maximum
Award
Program
Applicant
Program Scope Cost Fund
Request4
Over-the-Counter
Microenterprise
Assistance
Program
$1,500,000 Upwards
(For Profit
Business)
• Business Operations & Optimization
• SUPPORT
• Childcare Assistance
• General Administration
$93,000
$841,000
$468,000
$98,000
$1,500,000
Public
Improvement
Project
$3,300,000 City Sewer Main Replacement Project (CIP
5002)
$3,600,000 $3,300,000
Public Facility
Project
$3,300,000 City Ramona Garden Park Rehabilitation
Project (CIP 1259) Phase 3
$2,100,000 $2,250,000
Business
Assistance
$1,500,000 City Low interest loans to business owners
or property owners for certain tenant
improvements.
$1,500,000 $1,500,000
Competitive
Competitive
Public Service
Program
$300,000 5CHC Non-Congregate Shelter Navigation
Center Program
$235,800 $235,800
Competitive
Public Service
Program
$300,000 5CHC Security Deposit Assistance $64,200 $64,200 4 Request includes General Administrative cost
Staff Report: 2024 Community Development Block Grant Application Page 5 June 24, 2024
Analysis and Recommendation
Staff is requesting the Council conduct a public hearing, solicit community input, and provide direction on the CDBG-eligible activities to apply for under the upcoming 2024 CDBG NOFA, consistent with the following parameters:
1. Funding request not to exceed $3,600,000
2. Select maximum of three (3) activities, in one of the following combinations:
Option Eligible Activity Type
Option A One OTC Project One OTC Program One Competitive Program Option B One OTC Project Up to two Competitive Programs Option C One OTC Program Up to two Competitive Programs While the Council may consider all options listed above within these parameters, based on the information contained in this report including input from the contracted CDBG grant administrator Adams Ashby Group, staff recommends Option B to submit an application for an OTC Project and two Competitive Programs. Staff further recommends Ramona Garden Park Rehabilitation Project Phase 3 for the OTC Project and the Non-Congregate Shelter Navigation Center Program and Security Deposit Assistance Program for the Competitive Programs with additional information shown below.
First regarding the sewer project, while CDBG could provide funding for sewer projects similar to previous funding for water projects, the City’s adopted sewer rate structure provides adequate ratepayer funding for sewer infrastructure needs unlike previous rate structures. The November 2024 ballot measure that would repeal the City’s adopted water and sewer rates, however if passed would remove this ratepayer funding from sewer infrastructure projects in order to maintain funding for operations and maintenance and ensuring sufficient reserves. Staff would note that the Sewer Main Replacement Project is a shovel-ready project that could be implemented upon funding award.
With regards to the Ramona Park project, staff would note that the City does not currently have the ability to fund major park improvements without grant funding. Park rehabilitation enhances public spaces, promotes outdoor recreation, and improves community well-being. Upgrading facilities also ensures they meet standards for safety, accessibility, and functionality, thereby better serving residents of all ages. CDBG funding for Phases 1 and 2 of the Ramona Garden Park Rehabilitation Project will develop a playground at the park and an amphitheater for special events with the funding award anticipated to be brought to the Council this summer as noted.
However, the City does not have additional funding to complete improvements to Ramona Garden Park as recommended by the Ramona Garden Park Master Plan. Further investment in Ramona Garden Park, the City’s largest park, would continue to improve this well-used public facility and contribute to long-term community health and well-being particularly LMI households who may have limited access to other recreational opportunities. Phase 3 of the Ramona Park Rehabilitation Project includes the main plaza, picnic area, corner entry veteran’s memorial plaza and outdoor games area. In addition, Adams Ashby indicated that while OTC Project applications are currently awarded on a first-come, first-served basis, HCD has indicated that they may implement scoring similar to the competitive applications in future NOFAs. This would mean that a park project would likely score lower in future CDBG grant processes than a water or sewer project. As a result, Adams Ashby suggested that an application for remaining improvements at Ramona Park would be well-timed with the 2024 CDBG process (reference Attachment 1).
Staff Report: 2024 Community Development Block Grant Application Page 6 June 24, 2024
Lastly, homelessness continues to be a significant issue in Grover Beach and San Luis Obispo County affecting vulnerable members of the community. Applying for funding for navigation center/shelter services for homeless individuals as well as the security deposit assistance ensures that essential support and resources are made available to individuals and families in need. This type of activity aligns with CDBG objectives by addressing urgent community needs and supporting LMI households and persons and aligns with the City’s Major City Goal of Housing and Homelessness. This alignment would strengthen the application’s competitiveness and maximize the impact of CDBG funds.
In conclusion, staff would request that the Council prioritize applications for CDBG funding in a way that benefits a portion of or the entire community. All of the requested projects and programs have value to the City with staff’s recommendation developed in the interest of balancing community needs. This approach supports enhancing community infrastructure to promote equity and quality of life for all residents, particularly the LMI population in Grover Beach and leverages CDBG funding effectively to maximize impact and address disparities in access to essential services and recreational amenities.
FISCAL IMPACT
Adams Ashby Group, the City’s CDBG general administration consultant, estimates the cost to prepare the application(s) and related materials to be approximately $7,500. The cost associated with the preparation of applications is an eligible expenditure of existing CDBG funds. If awarded, design expenses incurred for the project will be eligible to be reimbursed.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Conduct a public hearing to solicit community input and provide direction to staff to prepare and submit an application for Ramona Garden Park Rehabilitation Project Phase 3, NonCongregate Shelter Navigation Operations Program, and Security Deposit Assistance Program; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The public hearing notice was published in the Tribune June 12, 2024, and New Times on June 13, 2024, in English and Spanish, as required by HCD. In addition, the notice was posted on the City Hall bulletin board, City website, and social media accounts on June 12, 2024. Upwards and 5Cities Homeless Coalition were notified of the meeting. The agenda was posted in accordance with the Brown Act.
Attachments
1. Adams Ashby Group Letter
2. 2024 CDBG NOFA Funding Requests
Exhibit A: 5Cities Homeless Coalition Proposal
Exhibit B: Upwards Proposal
Exhibit C: Ramona Garden Park Rehabilitation Plan
Exhibit D: Sewer Main Replacement Map
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April 11, 2024
TO: City of Grover Beach
RE: 2024 CDBG NOFA / Application
As I have discussed with city staff, we are expecƟng HCD to release their next NoƟce of Funding Availability (NOFA) someƟme near the end of July 2024. Although we have not seen the exact specifics of this NOFA, we have been involved in many of the office hours and webinars with their staff, thus are able to make some general assumpƟons of how this NOFA will look and what we anƟcipate occurring. Please remember though these are our general understanding and things may change as HCD has been known to pivot without much noƟce.
Since leaving the County consorƟum, the City has been extremely successful in accessing CDBG monies since 2013 with over $8 million being awarded and another $3 million pending award (which as of this point, we have been condiƟonally awarded and are awaiƟng an official contract). We anƟcipate this next NOFA to be more of their typical applicaƟon which will allow for all acƟviƟes again, and not certain ones only (i.e. most recently only projects were allowed and not public services). TentaƟvely we have been told applicaƟons will have a maximum request of approximately $3.6 million for a maximum of two acƟviƟes. If this holds true, our iniƟal recommendaƟon to the City would be to apply for one public service program and one public infrastructure/facility project. For the sake of this leƩer, we will only be focusing on the public infrastructure / facility component.
Of the $3.6 million we anƟcipate being able to apply for, approximately $3.3 million will be available towards the specific public infrastructure / facility acƟvity. Since 2020, CDBG has been accepƟng these applicaƟons for “projects” on an “Over the Counter” (OTC) basis. The OTC process funds acƟviƟes on a first come, first serve basis that are shovel ready (i.e. environmental complete, planning complete, design and plans complete, etc.). Since we have to cerƟfy a project is “ready” for construcƟon it is imperaƟve for the City to begin planning for such a project now so that all components are ready by the Ɵme the applicaƟon portal is opened which would be roughly 30 days from the release of the NOFA. Based on what we have heard, this process will conƟnue for the 2024 NOFA. So again, projects that meet eligibly and readiness requirements have a good chance of being funded as the hope is to apply on the first day funds are available.
In years past, CDBG used to have applicaƟons due on one day and applicaƟons received by that date would go into the applicant pool to then be scored. The scoring criteria focused on a number of criterions, however the largest was typically the “need” secƟon. This is where you demonstrated how important your project was, who it impacts, your income levels for the project, 3rd party studies supporƟng your project, etc. All of these components drove your need score which was then compared to other applicants. Under this method, certain projects were very difficult to get funded as they never could Attachment 1
complete with others who scored higher. For instance, one community could apply for a new drinking water well that had documentaƟon showing they had a “water boil” citaƟon from the State which of course scores extremely high, while another might apply for a park project or a community center, that of course is sƟll needed; however, will typically never have sufficient backup documentaƟon to compete with a need score a water applicaƟon might get. Thus, for many years the focus was always on projects that met the highest need according to CDBG scoring (i.e. your waterline projects are another example). With the OTC method, all of that changed and it really came down to having a project ready for construcƟon that simply met the eligibility criteria. This of course opens the door to consider all sorts of projects that used to be too difficult to fund if scoring was sƟll being used.
Now I have seen nothing official, but we have heard from a few higher ups at HCD that they are considering going back to the scoring system and steering away from the OTC method in hopes of geƫng these funds distributed for equitably across the State and ensure the funds are going to those projects that would have the highest impact in a community. If that is the case, then some of those projects we have seen as of late would probably not be nearly as compeƟƟve. In my mind, that would mean projects like parks, playgrounds, community centers, streets, sidewalks, etc. In turn, the higher need applicants would increase and those would most likely include water improvements, sewer improvement, storm drain, etc.
Based on this informaƟon, the City should consider applying for the remaining phases of the Ramona Garden Park Project for this round of funding while the OTC process remains in place and then apply for sewer, water or storm drain project at the next round when need scoring becomes the dominant factor. Whichever direcƟon is decided, I want to point out that both projects are eligible (Ramona Park and Sewer Improvements), and the most important aspect of being designed and bid ready is met with both projects which is criƟcal for OTC process.
The only other item that may come into play on this next NOFA is if HUD publishes the new income map which could greatly impact Grover Beach. Currently, the city as a “whole” qualifies for CDBG, basically meaning you can do improvements anywhere in the City that will serve the enƟre community. If these numbers were to change and not in your favor, you might be leŌ looking at doing specific improvements in only certain block groups that meet the income threshold – this definitely limits what you can do and you have to be a bit more strategic on how you plan for an applicaƟon. This is out of your control though as it driven by Census data which was already collect in 2020 – for some reason HUD is way behind in updaƟng their figures.
Please don’t hesitate to contact should you have any quesƟons or would like to discuss these opƟons further.
Thank you,
Paul Ashby
Adams Ashby Group
Attachment 2
2024 CDBG NOFA FUNDING REQUESTS
CDBG Application Type: Competitive
Grant Type: Public Service Program Maximum Grant Award: $300,000 Applicant: 5Cities Homeless Coalition
Program Request: Non-Congregate Shelter Navigation Center Program Program Cost: $235,800
Funding Request: $235,800
Program Description:
Non-Congregate Shelter Navigation Center Program: Since December 2022, 5CHC has operated “Cabins for Change”, a non-congregate shelter navigation center. A second navigation center called Balay Ko on Barca has been constructed and will open shortly. 5CHC is currently operating ”Cabins for Change” utilizing multiple funding sources including 2022 CDBG funds through the City, annual State and federal grants through the County of San Luis Obispo, contributions from the Cities of Arroyo Grande and Pismo Beach, private donations, and service reimbursement fees through CalAIM from CenCal Health. Since July 2023, 5CHC has expended approximately $270,000 of $368,000 in 2022 CDBG funds. Future operations are in need of additional funding. On May 28, 2024, Council authorized the submission for the competitive component of the Permanent Local Housing Allocation (PLHA) Program for this activity, which would provide partial funding for approximately four (4) years of operations, if awarded. However, announcement of the award is not anticipated until after the CDBG application period opens. Therefore, 5CHC is requesting $220,374 in funding (an additional $15,426 in general administration would be included for a total request of $235,800) to assist in continuing support of this program.
CDBG Application Type: Competitive
Grant Type: Public Service Program Maximum Grant Award: $300,000 Applicant: 5Cities Homeless Coalition
Program Request: Security Deposit Assistance Program
Program Cost: $64,200
Funding Request: $64,200
Program Description:
Security Deposit Assistance Program: In anticipation of the Cleaver and Clark Commons development opening in December 2025, 5CHC is requesting $60,000 in security deposit assistance (an additional $4,200 in general administration would be included for a total request of $64,200). This requested funding level is anticipated to support security deposits for all 53 units at Cleaver-Clark Commons, as well as additional units in the City.
CDBG Application Type: Over the Counter
Grant Type: Public Facility Project Maximum Grant Award: $3,300,000 Applicant: City of Grover Beach
Project Request: Ramona Garden Park Rehabilitation Project (CIP 1259) Phase 3 Project Cost : $2,250,000
Funding Request: $2,250,000
Project Description:
Ramona Garden Park Rehabilitation Project (CIP 1259) Phase 3: The Council adopted the Ramona Garden Park Master Plan on November 16, 2020. Phase 1 and Phase 2 of this project includes a playground and an amphitheater which was incorporated in the previous round of funding. Phase 3 includes the park entry along Ramona, the main plaza, and the Veteran’s memorial plaza. Design is complete and the estimated cost of the project is approximately $2,100,000. (an additional $147,000 in general administration would be included for a total request of $2,250,000).
CDBG Application Type: Over the Counter
Grant Type: Public Improvement Project Maximum Grant Award: $3,300,000 Applicant: City of Grover Beach
Project Request: Sewer Main Replacement Project (CIP 5002) Project Cost : $3,600,000
Funding Request: $3,300,000
Project Description:
The project involves upsizing sewer mains to address deficiencies for existing and future flows.
Design is complete and the current estimated cost of the project as shown in the Capital Improvement Plan is approximately $3,600,000. However, due to the requirements of the federally funded grant, the project will likely cost $4,000,000 if funded with CDBG funds. Council will need to allocate an additional $700,000 to complete this project with the CDBG funds.
CDBG Application Type: Over-the-Counter
Grant Type: Microenterprise Assistance Program Maximum Grant Award: $1,500,000 Applicant: Upwards
Program Request: Childcare Business Services
Program Cost: $1,500,000
Funding Request: $1,500,000
Program Description:
Upwards, previously known as WeeCare, would offer three programs, Business Operations and Optimization Support Tool (BOOST), the SUPPLY program supports new care providers, and Childcare Assistance for Small Employers (CASE) (Attachment 2). The request totals $1,500,000 ($1,402,000 for their programs, and $98,000 for general administration). Program budgets reflected in their proposal are slightly higher than what is depicted below, as the budgets were reduced to reflect general administration costs. • BOOST provides Family Childcare Homes, also known as in-home daycares (microenterprise businesses), business support services for one (1) year. These businesses do not typically qualify for Small Business Association loans due to their low number of employees and small budgets. An estimated budget of $93,000 would assist approximately 11 childcare providers.
• SUPPLY works with interested individuals, usually nannies and babysitters, to create new in-home daycares and assist in the licensing process. An estimated budget of $841,000 would assist approximately six providers in establishing their in-home daycare business. • CASE works with small business employers to offer childcare benefits to their incomeeligible employees. An estimated budget of $468,000 would result in approximately 100 employers offering childcare benefits.
CDBG Application Type: Over the Counter
Grant Type: Business Assistance Program Maximum Grant Award: $1,500,000 Applicant: City of Grover Beach
Program Request: Low Interest Business Assistance Loans Program Cost: $1,500,000
Funding Request: $1,500,000
Program Description:
Business Assistance Program by the City: In recent months, staff has been contacted by a number of individuals interested in establishing a business within existing buildings, but ultimately are unable to due to inadequate building infrastructure, such as plumbing or sewer lines, or fire suppression systems, that neither the prospective business owner nor property owner are able to address financially. A Business Assistance Program could provide no or low interest loans to business owners or property owners to make the needed improvements.
Should the Council wish to move forward with this activity, the City would need to retain the services of a consultant with business assistance program and loan underwriting experience as part of the application preparation process so that the consultant could prepare program documents in order to document to HCD that the program is ready to implement. It should also be noted that these programs have a number of federal requirements that are sometimes burdensome to the applicant and city staff that can greatly reduce eligibility.
City of Grover Beach
CDBG June 2024 Request
Description Of Homeless Services Non-Congregate Shelter Navigation Center Program, $220,374 Request:
Through two interim housing and emergency shelter navigation centers 5Cities Homeless Coalition (5CHC) seeks to serve people experiencing homelessness to obtain housing by offering spectrum of wrap-around supportive services including coordinated entry; emergency shelter and interim housing; and housing navigation to obtain housing (including application fees, deposit, rent, past rent, utility assistance and case management). Guests will be served with 5CHC’s Cabins for Change Program and Balay Ko on Barca Program, both located within the City of Grover Beach.
Description Of Deposit Program (05T), $60,000 Request:
This program will provide tenant subsidies exclusively for payment of security deposits for incomequalified individuals and families in Grover Beach to secure stable housing.
In addition to direct financial assistance to clients, 5CHC staff will oversee the grant requirements of intake and program qualification (including income verification) coupled with case management support, budget counseling and the development of housing stability plans. 5CHC EXPERIENCE
5CHC has provided services to those experiencing homelessness and who are at risk of homelessness since 2013, and is now the primary provider of rapid re-housing and homeless prevention services in San Luis Obispo County. 5CHC’s programs have expanded to include a comprehensive array of services to meet the needs of the continuum, as detailed below.
• Coordinated Entry
Through a progressive engagement process, all clients undergo a coordinate entry intake to assess appropriate services, diversion or rapid exit options before enrollment in a 5CHC program; be it outreach, seasonal warming center, non-congregate shelter(s), rapid re-housing or homeless prevention.
• Street Outreach and Access Center Services
5Cities Homeless Coalition has provided outreach services throughout the South County since 2016 partnering with City, County and State officials including public health, local hospitals, law enforcement, State Parks, and probation. 5CHC has built its program looking at best practices from multiple providers; including a special focus of hiring those with lived experience as homeless and/or incarcerated. 5CHC endeavors to build trust, develop a sense of community, and respect. We serve as a client advocate, reducing barriers to services, follow evidence based-models of care, motivational interviewing. In the first nine months of this fiscal year (7/1/2023-3/31/24), 5CHC has connected with 246 individuals through it’s outreach program connecting them to housing, shelter and supportive services to secure identification, coordinate family reunification, connect with treatment services, etc.
• Interim Housing and Emergency Shelter
5Cities Homeless Coalition has operated a seasonal inclement weather navigation center (winter emergency shelter) since 2014. In Dec. 2022, 5CHC opened its first permanent non-congregate interim housing navigation center in South County. The Cabins for Change program has successfuly housed 70% of program participants since opening. This 20-cabin program, rooted in housing first principles, provides intensive housing navigation case management, supportive services, shelter and assistance in navigating basic life skills to 20-25 individuals (at a time) focused on assisting the clients to obtain long-term stable housing. In preparation for opening, 5CHC did extensive research and staff training visiting other sites throughout California. As a component of the program clients are assisted with housing support services, which 5CHC has successfully provided since 2015. A second 30 bed shelter will open in summer 2024, and will operate an identical program utilizing the same referral list, for which there are currently 309 waiting on the referral wait list. • Rapid Re-Housing and Homeless Prevention
5Cities Homeless Coalition is the key rapid re-housing and homeless prevention provider in San Luis Obispo County, collaborating with agencies throughout the county to provide housing stabilization service, deposit, and rental assistance to those moving into permanent housing or those at-risk of homelessness. Since 2014 5Cities Homeless Coalition has been providing Rapid Re-Housing and Homeless Prevention services through a variety of funding sources including ESG, CDBG, private foundations. 5CHC is currently managing 18 grants for rapid re-housing and homeless prevention services. In fiscal year 22-23, 5CHC assisted 141 to move into housing through its Rapid Re-Housing program and prevented homelessness for an additional 240 households. In the first nine months of this fiscal year (7/1/2023-3/31/24), 112 households have been permanently housed through RRH, and another 117 have received prevention assistance.
5Cities Homeless Coalition
Cabins for Change Navigation Center
1523 B Longbranch, Grover Beach
In Dec. 2022, 5CHC opened its first
permanent interim housing navigation center
in South County, the 20-bed Cabins for
Change program. This site was unused and
owned by the County of San Luis Obispo,
located within the City of Grover Beach.
Since opening in the program has
successfully housed 67% of program
participants; more than half of whom are
“chronically homeless”. On average clients
have been experiencing homelessness for
nearly 3 years prior to entering the program.
This low-barrier program endeavors to
house clients within approximately 90 days
by providing intensive housing navigation case management, supportive services, shelter and basic needs. The current length of stay at exit is 109 days. Focused on assisting the clients to obtain long-term stable housing, the program. One does not need to be clean and sober to utilize the center.
Shelter services at the Cabins for Change Program (20 cabin) prioritize adults who are singlewomen, elders, veterans, TAY (age 18+), and those from South County. 18 local organizations have referred their clients to this program, which currently has a waiting list of over 300. Cabins for Change has been open for 17 months, with a 66% success rate of moving guests into permanent housing.
Those who are homeless experience multiple barriers to securing permanent housing, including limited or no income. Working with 5Cities Homeless Coalition and other community partners, guests work on their individualized housing stability plan to address the individual’s barriers to permanent housing and identify opportunities. Guests have the opportunity to meet regularly with their case manager and attend educational sessions to develop life-skills, money management, job training, etc.
5Cities Homeless Coalition
Balay Ko on Barca Navigation Center
955 S. 4th St., Grover Beach CA 93433
Construction at Balay Ko on Barca has only
recently concluded and services are planned to
begin in July. Shelter and supportive services at
Balay Ko on Barca will be offered through 30
individual 64 sq. ft “casitas.” The program, like
5CHC’s Cabins for Change program, prioritizes
adults who are single-women, elders, veterans,
TAY (age 18+), and those from South County.
Balay Ko on Barca will operate as an identical
program to the Cabins for Change Program, utilizing the same referral list (for which there are currently 319 awaiting services).
This site, which was a vacant lot, was purchased by the City of Grover Beach utilizing ARPA funds. 5CHC has entered into a 55-year lease with the City for operation of the interim housing navigation center. Based upon this commitment, the Balay Ko Foundation has underwritten all capital improvement expenses to develop the site (valued at more than $2 million), apart from the Boss Cubez housing units which were provided by the County of San Luis Obispo.
Those who are homeless experience multiple barriers to securing permanent housing, including limited or no income. Working with 5Cities Homeless Coalition and other community partners, guests work on their individualized housing stability plan to address the individual’s barriers to permanent housing and identify opportunities. Guests have the opportunity to meet regularly with their case manager and attend educational sessions to develop life-skills, money management, job training, etc.
09/12/2023
©2023 Gensler
DignityMoves
GROVER BEACH
Bird eye perspective facing north
Grover Beach Community Development
Block Grant (CDBG) Summary Proposal by
prepared for City of Grover Beach
Grover Beach Community Development Block Grant (CDBG) Proposal - JUN 2024 Upwards: Who We Are and How We Got Here
Upwards is the largest network of licensed home-based childcare providers in the U.S., offering a tech-powered early-learning childcare marketplace. The organization partners with childcare providers, families, employers, and municipalities to make childcare accessible to all. Upwards' programs have proven effective in increasing provider income, reducing administrative burdens, and supporting working families. The organization has successfully managed various government contracts and implemented innovative programs to address childcare challenges.
The Need for Childcare in Grover Beach
Grover Beach faces a significant need for quality childcare services. The city is home to over 733 children under the age of five and a number of non-resident children whose parents may travel into the City for work. According to U.S. Census data, about 380 households in Grover Beach have children under six years old, indicating a high demand for full or part-time childcare to support family well-being. Quality early care and education are essential for promoting brain development, social skills, school readiness, and long-term health and employment outcomes. It also reduces generational poverty and improves adult outcomes, which lead to a better functioning local economy in the long-term.
The current economic landscape makes dual incomes necessary for many families, highlighting the critical role of childcare in the majority of communities nationwide.
Without adequate childcare support, many parents, particularly single parents, cannot participate fully in the workforce. This issue affects economic recovery and increases social inequities. In Grover Beach, 354 children live with a single parent, and these households are at a high risk of housing instability. Childcare costs for a family of four can consume nearly 15% of their income, exacerbating financial strains.
The Programs
BOOST Program:
The BOOST (Business Operation & Optimization Support Tools) Program is designed to increase the supply of childcare and support existing licensed childcare providers in Grover Beach. It offers specialized business and technical assistance to microenterprise Family Childcare Homes for 12 months. BOOST prioritizes high-risk, high-need daycare providers and includes services like marketing support, attendance tracking, scheduling, billing, and curriculum planning. The goal is to help providers reach full enrollment, stabilize their operations, and create additional jobs by hiring teaching assistants. 2 upwards.com
Grover Beach Community Development Block Grant (CDBG) Proposal - JUN 2024 SUPPLY Program:
The SUPPLY Program focuses on increasing the availability of licensed childcare by helping nannies and babysitters transition into running their own in-home daycare facilities. The program supports the development of new childcare providers through licensing assistance, specialized training, and daily operational support that leads to a more sustainable local childcare ecosystem. SUPPLY aims to address the shortage of childcare for children under five in Grover Beach by creating new microenterprise childcare providers in geographic areas where these resources are scarce.
CASE Program:
The CASE (Child Care Assistance for Small Employers) Program aims to support local microenterprise employers by providing free childcare benefits to their employees for 12-months. This program helps microenterprise businesses improve recruitment, retention, and productivity while aiding working families in accessing quality childcare.
CASE includes comprehensive child care assistance, family matchmaking services, and support for employers to offer additional childcare benefits. This initiative helps reduce the economic burden of childcare on families, improving their overall quality of life and economic stability.
Program Outcomes:
The programs aim to expand economic opportunities for low-to-moderate income (LMI) microenterprise daycares and provide a whole host of indirect benefits to the families they serve. The key outcomes include:
BOOST Program:
Increase revenue for daycare providers through operational sustainability, retain existing childcare jobs, create new jobs by hiring additional staff, and connect LMI families with quality childcare.
SUPPLY Program:
Develop new childcare providers, increase the number of childcare facilities, and improve access to quality care for children in Grover Beach.
CASE Program:
Support microenterprise employers, improve labor force participation, and enhance economic productivity by providing childcare benefits to employees. 3 upwards.com
Grover Beach Community Development Block Grant (CDBG) Proposal - JUN 2024 Timeline
The proposed timeline for the programs is one year, during which BOOST and SUPPLY will teach daycare owners to improve their business practices and increase revenue streams. CASE will educate and activate local employers to offer childcare benefits, creating a pathway to long-term impact through employer contributions. ● Month 1-3: Program setup, participant recruitment, and initial training sessions. ● Month 4-6: Ongoing training, business coaching, and technical assistance for BOOST and SUPPLY participants. Care navigation support to CASE employees, helping them search, find, and enroll in childcare facilities that meet their unique needs.
● Month 7-9: Continued support, enrollment marketing, and operational assessments.
● Month 10-12: Program evaluation, outcome measurement, and transition planning for sustainability.
Cost
The total proposed budget for the CDBG programs is $1,360,000. The costs are broken down as follows:
Program Beneficiaries Unit Cost Total Cost LMJ Created Est LMI Supported BOOST 11 $10,000 $110,000 3 LMJs 154
SUPPLY 6 $125,000 $750,000 8 LMJs 84
CASE 50 $10,000 $500,000 - 250
Total 171 $8,766 $1,360,000 11 488
The budget primarily covers salaries for program personnel, software, marketing, and advertising expenses. Upwards can scale the programs based on available funding and has the operational systems in place to expand services in Grover Beach effectively.
The proposed BOOST, SUPPLY, and CASE programs are designed to address the critical childcare needs in Grover Beach by enhancing the capacity and financial stability of existing childcare providers, creating new childcare options, and supporting working families with affordable childcare benefits, leading to long-term economic and social benefits for the Grover Beach community. By investing in these programs, Grover Beach can foster economic growth, reduce social inequities, and ensure a brighter future for its childcare providers, children and families. 4 upwards.com
Grover Beach Community Development Block Grant (CDBG) Proposal - JUN 2024 5 upwards.com