April 23, 2024
Agenda Item No. 15
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, [email protected] PREPARED BY:
Lauren Wooding Whitlinger, Real Property Administrator - 949-644-3236, [email protected] TITLE:
Resolution No. 2024-30: Community Development Block Grant – 2024-2025 Annual Action Plan ABSTRACT:
The City of Newport Beach receives funds each year through the U. S. Department of Housing and Urban Development (HUD) program for Community Development Block Grants (CDBG), to benefit those with low and moderate incomes, aid in the prevention of neighborhood deterioration, and meet other urgent community development needs due to natural disasters or other emergencies. In compliance with the CDBG program regulations, the City prepares a grant application, in the form of an Annual Action Plan, outlining how funds will be used in the community. The plan implements strategies adopted in the City’s five-year Consolidated Plan. For the City Council's consideration are the specific programs and funding proposed for Fiscal Year 2024-2025, allocating approximately $399,099 in grant funds and $305,774 in program income.
RECOMMENDATIONS:
Conduct a public hearing to receive comments on the Annual Action Plan; Find the approval of the 2024-2025 Annual Action Plan exempt from the National Environmental Policy Act (NEPA) pursuant to 24 CFR Part 58, Section 58.34; Find the approval of the 2024-2025 Annual Action Plan exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; Adopt Resolution No. 2024-30, A Resolution of the City Council of the City of Newport Beach, California, Approving the 2024-2025 Annual Action Plan for Allocation of the Federal Community Development Block Grant Program Funds for Fiscal Year 2024-2025; and Authorize the City Manager to:
Proportionally adjust appropriations to specific programs and projects as necessary to conform with the final 2024-2025 formula grant allocation of CDBG funds from HUD if the appropriation is more or less than $399,099; Submit the 2024-2025 Annual Action Plan to HUD;
Execute the 2024-2025 CDBG Program Grant Agreement and all related documents on behalf of the City of Newport Beach; Execute all sub-recipient agreements with the non-profit organizations receiving allocations of CDBG funds in the 2024-2025 Action Plan; and Authorize the Community Development Director, or his designee, to be the official representative of the City of Newport Beach, administer the 2024-2025 Annual Action Plan and submit required environmental documentation to HUD for CDBG projects.
DISCUSSION:
The City receives a formula grant allocation of CDBG funds each year from the federal government, a program run by HUD. The objective of the CDBG program is to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. CDBG is authorized under Title I of the Housing and Community Development Act of 1974. CDBG funds may be used for a wide variety of programs, services and facilities improvements, including but not limited to:
Community and senior services
Fair housing enforcement and landlord/ tenant mediation Homeless prevention and domestic violence programs
Public facilities and infrastructure improvements
Disabled (ADA) accessibility improvements
Housing programs
Section 108 loan payments
Since July 1, 1989, the City has received total direct allocation of approximately $15.6 million of CDBG funds from HUD with annual allocations ranging from a low of $319,676 in 2017, to a high of $534,000 in 1995. The 2024-2025 formula grant allocation is anticipated to be approximately $399,099, based on last year’s grant amount. In addition, the City will be using $305,774 in program income from the lease of property acquired with CDBG funds, for a total of $704,873 to be programmed for fiscal year 2024-2025.
According to CDBG regulations, the City may spend up to 20% of the annual formula grant allocation of CDBG funds for program administration and 15% for community services such as senior meal delivery, senior services, or homeless prevention programs. The remaining amount of funding may be used for projects such as street and sidewalk improvements, disabled accessibility improvements, and public facilities improvements such as the construction or rehabilitation of park and recreational facilities, provided the projects meet applicable CDBG regulations and national objectives.
Each year, the City uses a portion of the funds reserved for program administration to comply with Fair Housing Act requirements and make fair housing enforcement and landlord/tenant mediation services available to the community. These services have been provided free of cost to City residents by the Fair Housing Foundation since 2011.
On January 13, 2024, the City published a Notice of Funding Availability (NOFA) in the Daily Pilot newspaper and on the City website, to announce the availability of CDBG funds and solicit proposals from tax-exempt, nonprofit organizations that provide eligible CDBG services or projects that benefit the residents.
In response to the NOFA, six nonprofit organizations submitted applications for CDBG grants. In consideration of the funding available, the amount of funding requested, past performance, anticipated benefit to the residents, and the City’s priorities, staff recommends program/project funding levels in the Action Plan as follows:
Category
Requested
Recommended
Public Services (subject to 15% grant cap)
Limit of $105,730
Meals on Wheels OC: Home Delivered Meals
$30,000
$30,000
Families Forward: Housing Program
$20,000
$20,000
Newport Beach: City Motel Voucher Program
$30,000
$30,000
Boys and Girls Club: Career Development
$50,000
$25,730
Administration (subject to 20% grant cap)
Limit of $140,973
CDBG Program Administration
$67,819
$67,819
CDBG Program Administration: 2025-2029 Consolidated Plan and Analysis to Impediments to Fair Housing Preparation $0
$61,094
Fair Housing Foundation: Fair Housing Services
$12,000
$12,000
Capital Projects
$458,170
Trellis International: Senior Home Maintenance
$15,000
$15,000
San Miguel Park Playground Replacement & ADA Upgrades
$0
$443,170
Total
$224,819
$704,873
The Action Plan, found in the draft resolution (Attachment A), describes each program. In consideration of the amount of public service funding available and the amount of public service funding requested, staff did not recommend fully funding the new public services applicant, Boys and Girls Club. Doing so would impact the City’s ability to fund the requests of the three existing public service providers which have a focus on preventing and addressing homelessness in the City. It should be noted the home delivered meals program has previously been operated by Age Well Senior Services, but due to a redistricting, the service provider for the City will be changing to Meals on Wheels OC. Historically, the existing service providers have successfully accomplished their annual performance goals and provided high quality services to City residents.
With the proposed funding levels shown in the table above, Meals on Wheels OC plans to serve approximately 35 City residents during the 2024-2025 fiscal year; the agency’s focus is serving meals to homebound senior citizens. Seniors make up approximately 24% of the City’s population. Families Forward plans to serve approximately 25 unduplicated City residents with the proposed funding level and will provide services to families to prevent and address homelessness. Staff also recommends allocating funding to supplement the City's motel voucher program that is part of the City's ongoing efforts to address homelessness and provide for street exits. Funding will provide approximately 30 individuals with short-term lodging as a temporary interim housing solution as they transition to long-term housing and family reunifications.
Under the Capital Projects category, $458,170 is available to be programmed. Staff recommends $15,000 to be allocated to Trellis International for its ‘Labors of Love’ home maintenance program to assist low- and moderate-income senior residents at risk of losing their housing due to deferred maintenance or code enforcement violations. The balance of the funding to be allocated under the Capital Projects category, $443,170, is proposed to be added to the funding of $229,768 allocated under the CDBG 2023-2024 Annual Action Plan to further supplement the City’s costs for the San Miguel Park playground. The Recreation and Senior Services Department, with construction and project management by the Public Works Department, is overseeing the playground replacement project and is proposing to install inclusive playground equipment that can be accessed by all children regardless of physical ability. The project is still in the design phase, and the total project costs are still being developed. Staff will return to the City Council for approval of the project once the design has been finalized.
Each of the programs and projects recommended above are contemplated within the Strategic Plan priorities of the 2020-2024 Consolidated Plan.
On March 23, 2024, staff published a notice in the Daily Pilot informing the general public that the City of Newport Beach had prepared the Draft 2024-2025 Annual Action Plan. The notice also indicated the plan would be available for review and comment until April 23, 2024. The public has been provided an opportunity to provide oral and/ or written comments on the proposed activities included in the Draft 2024-2025 Annual Action Plan. At the time this report was prepared, no public comments have been received. Additionally, the current Citizen Participation Plan requires that a public hearing be held to receive testimony from interested residents or parties regarding the Action Plan. The April 23, 2024, public hearing fulfills this requirement.
CARES Act Funding Update
Under the 2020 federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the City received additional CDBG funding from HUD. A Substantial Amendment to the 2020-2021 Annual Action Plan was approved by the City Council in July 2021 that funded activities related to preventing and responding to homelessness. A contract with Mind OC for the Be Well OC Mobile Crisis Response Team Program was approved by City Council in September 2021, and the program began in March 2022, and has so far spent $618,845 of $741,079 of the CDBG CARES Act funds. The funds will continue to be used toward the Mind OC contract until fully expended.
FISCAL IMPACT:
This item provides for the City Council approval of the use of an estimated $399,099 of CDBG funds, and $305,774 in program income for the 2024-2025 fiscal year, to be adjusted by the city manager as necessary to conform with the final 2024-2025 formula grant allocation from HUD. The costs associated with staff management of the CDBG program are approximately $17,000 per year.
ENVIRONMENTAL REVIEW:
The development of required plans and allocation of CDBG program funds is an administrative activity exempt under 24 CFR Part 58, Section 58.34 of the National Environmental Policy Act of 1969 (NEPA), as amended.
Staff recommends the City Council find the adoption of the 2024-2025 Annual Action Plan is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
In accordance with HUD requirements for a 30-day public review and comment period, notice of the public hearing was published in the Daily Pilot on March 23, 2024. Notice was also sent to each of the applicants requesting funding and emailed to all parties that signed up to receive email notifications from the Planning Division of the Community Development Department. Further, the agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A – Resolution No. 2024-30 (2024-2025 Annual Action Plan included) 15-3
15-1
Resolution No. 2024-30: Community Development Block Grant – 2024-2025 Annual Action Plan
April 23, 2024
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