Item #01
Date: February 27, 2024
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Submission of the 2023 Community Development Block Grant, Notice of Funding Availability – Amendment #1
Recommendation:
Pass a Motion to 1) open a public hearing and receive public comment regarding the submission of a Community Development Block Grant (CDBG) application not to exceed $3.3 million, 2) approve Resolution No. 2024-XX approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2023 Notice of Funding Availability (NOFA) Amendment #1 for the proposed Street Improvement Project, and 3) adopt Resolution No. 2024-XX and associated Residential Anti-Displacement and Relocation Assistance Plan.
Rationale for Recommendation:
The City of Marysville held a Public Hearing and outreach regarding street projects for the 2023 NOFA issued for waitlisted projects on November 21, 2023. With the recent amendment to the NOFA adding an additional $19 million for projects, the recent discussions of the critical importance of street improvements, including ADA in the City, staff believes this project will continue to the support the efforts and projects communicated to the public and with the limitations on activities available, will be the highest and best use of funds in the City of Marysville. The City will continue to conduct outreach for additional projects and discuss opportunities as new funding is available. The recommended action is to allow City staff to move forward with the process of accepting the award from the State once funded.
In addition, the City needs an active Residential Anti-Displacement Policy to apply for the CDBG program.
This policy supports the Uniform Relocation Act, as stated in Federal Regulation 24 CFR 42.325. The City has drafted a plan that meets the regulation requirements and agrees to follow them. The plan aims to prevent the displacement of occupants whose property gets funds from federal sources, such as the CDBG program. The current project does not need this policy, but the CDBG application checklist does.
Based on these requirements, we are asking for your approval of the plan by resolution.
Background:
The California Department of Housing and Community Development (HCD) announcesthe availability of an additional $19 million in funding available through the federal Small Cities CDBG program for the 2023 funding year. The City of Marysville is prepared to make an application for these additional funds.
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The City is required to conduct public outreach regarding potential CDBG-eligible projects that could be considered for an application, including holding a public hearing to discuss potential application(s) and to allow for public input. On November 21, 2023, to make an application under the 2023 NOFA, staff held a public meeting to seek public input which included funding related to street improvement projects. The City submitted an application based on the limited parameters allowed under this cycle.
The 2023 NOFA was limited to projectsthat were placed on the waitlist from the 2019/2020 CDBG NOFA application process.
On January 31, 2024, HCD released an amendment that allows a jurisdiction to be able to apply for up to one project that has been designed and is ready to construct, up to a maximum of $3.3 million.
Jurisdictions are not eligible to request funds for programs. Therefore, other programs discussed at previous hearings and outreach are not eligible to be considered at this time. That is why the staff has recommended submitting a street improvement project based on the previous public outreach and meeting discussions.
Staff requests that the Council open a public hearing to seek public input, update the community on the funding, review potential eligible projects, and authorize staff to prepare and submit an application for the recommended project. We will also take an opportunity to discuss upcoming funding in 2024 as activities will be expanded and to allow the community an opportunity to share ideas and provide input on other programs and projects under consideration for future NOFA releases.
The objectives of the CDBG program are to develop viable communities by the provision of decent affordable housing, a suitable living environment, and to expand economic opportunities, principally for the benefit of Low- and Moderate- Income (LMI) persons, families, households, and neighborhoods.
Project Selection
In order to be considered eligible, a suggested project/activity must meet one or more of the three National Objectives listed in CDBG Federal Statutes:
• Benefit to low- and moderate-income persons;
• Prevention or elimination of slums and blight; or
• Meeting an urgent community need which poses an immediate threat to the health and welfare of the community (State designates when the “urgent need” objective is allowed for a NOFA).
The benefit to low- and moderate-income persons is the most predominately used National Objective.
In order to benefit low- or moderate-income persons, the project must either benefit an area that is comprised of at least 51% low- or moderate-income households, or benefit individually qualified households (i.e., each household is income certified). 62.31% of the City’s households qualify as low- or moderate-income households, based on the 2015 American Community Survey.
In addition to meeting one of the three National Objectives, the project must also fall under one of the categories listed below.
• Public Improvements. Project must be located in and serve a predominantly residential area within the City. Examples include water and sewer facilities, flood and drainage facilities, accessibility related street improvements (i.e., curb ramps), and utilities. • Public Facility. Examples include acquisition, rehabilitation or new construction of buildings used for public purposes such as training, health services, education, senior and recreation centers, nutrition, shelter, day care, temporary housing and fire protection.
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• Housing Project:
o Multi-Family (five or more units at a specific site) Housing Rental Rehabilitation o Project (with or without acquisition): loan for repairs and improvements of renter occupied units for sites where the majority of the tenants qualify as low- or moderate-income households.
The project proposed this evening meets the Low-Moderate Income Area National Objectives, provide compliance as a Public Improvement and aligns with the previous discussion of street improvements with the community.
Alignment with City Council Goals:
The grant acceptance for CDBG Funds supports City Council Goal #3: Improve Infrastructure. These goals have been discussed in multiple public meetings and are updated annually.
Fiscal Analysis:
Adams Ashby Group, the City’s CDBG general administration consultant, estimates the cost to prepare the Public Improvement application to be approximately $7,500. The costs associated with the preparation of application is an eligible expenditure of existing CDBG funds. Additionally, costs associated with the Environmental process will be $4,500 and is also reimbursed, if awarded, as well as the design expenses.
Alternatives:
The Council may consider alternatives and provide direction to staff based on the discussion.
Public Notification
The public hearing notice was published in the Appeal Democrat, posted on the City Hall Bulletin Board, City Hall Lobby, City’s website, and the City’s social media accounts consistent with HCD’s CDBG public noticing requirements. Additionally, the City also followed required posting requirements for the February 27, 2024, meeting. The agenda was posted in accordance with the Brown Act.
Attachments:
1) Resolution No. 2024-XX, CDBG Program
2) CDBG Proposed Paving Area Map
3) PowerPoint Presentation
4) Fair Housing Posters
5) Resolution No. 2024-XX, Residential Anti-Displacement Plan 6) Residential Anti-Displacement and Relocation Assistance Plan