City Council Agenda Report
June 4, 2024
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: John P. Ramirez, AICP, Director of Community Development Bethani Cardenas, Housing Manager
Rosio Medina, Senior Management Analyst
SUBJECT: PUBLIC HEARING – RESOLUTION NO. 24-29 – APPROVING THE
COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT
PARTNERSHIPS PROGRAM FISCAL YEAR 2024-2025 ANNUAL ACTION
PLAN AND AUTHORIZING THE CITY MANAGER TO EXECUTE AND
TRANSMIT ALL REQUIRED DOCUMENTS TO THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Background:
The purpose of this public hearing is to provide an opportunity for further input from the community and City Council on the Fiscal Year (FY) 2024/25 Annual Action Plan (Plan) for the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME), and obtain City Council authorization to transmit the Plan with an application to secure CDBG and HOME funds from the United States Department of Housing and Urban Development (HUD). As a part of the application process, the Plan lists the specific activities that the City will undertake with the funds. The types of activities that the City may conduct are subject to federal rules and regulations, such as funding caps on program administration and social services, requirements for public-private partnerships, and compliance with National Objectives of decent housing, a suitable living environment and expanded economic opportunities.
While HOME funds may only be used for housing related activities, CDBG funds may be used for a variety of community development activities, such as rehabilitation of housing and commercial buildings, infrastructure improvements, and certain services, such as counseling and job training. Funds may be used to directly benefit a household that meets income limitations, such as repair of a specific home, or used for an area benefit, where the improvement is located in a census tract with at least 51% of the households being considered low to moderate income.
City Council June 4, 2024
Resolution No. 24-29 – Proposed FY 2024/25 Annual Action Plan Page No. 2 8 7
9 The City Council conducted a public meeting concerning the Plan on March 19, 2024, for public comments of the proposed activities for CDBG and HOME. A draft Plan was prepared and was available for public review and comment, starting March 25, 2024 through April 25, 2024.
HUD regulations limit the City to funding only those activities listed in the 30-day public review notice. The City Council may increase, reduce, or eliminate the funding allocation of any of the activities listed below, but new activities cannot be added at this time without issuing a new public hearing notice and providing additional opportunity for public comment.
Activities in the 2024/25 Annual Action Plan
For FY 2024/25, the City will receive $977,097 in CDBG entitlement funds; $130,000 in estimated program income and $100,000 in carryover funds. Program income and carryover funds will be allocated to a Capital Improvement Project or Economic Development Activity. In HOME entitlement funds, the City will receive $240,414; $30,000 in HOME estimated program income and $235,000 in HOME carryover funds. Program income and carryover funds will be allocated to an Affordable Housing Activity. In the first public hearing held on March 19, 2024, estimated CDBG and HOME grant amounts were presented as HUD had not issued final grant allocations. However, CDBG and HOME final allocations were announced by HUD on May 7, 2024, which were less than anticipated. The Consolidated Plan explains how the City will utilize these monies to improve community development needs, address affordable housing, and priorities for people experiencing homelessness. The plan establishes strategies for the next program year and identifies specifiv projects and activities that will be undertaken with CDBG and HOME funds received from HUD.
The following table lists the activities and expenditures for FY 2024/25:
PROJECTS/ACTIVITIES FUNDED BY CDBG Final Funding
Program Administration – CDBG (20% cap of CDBG funds) $182,419 Fair Housing – CDBG (20% cap of CDBG funds) $13,000
Emergency Services – Social Services Center* $75,000
Community Legal Aid* $18,827
Job Training – Norwalk La Mirada Adult School* $17,579
Los Angeles Centers for Alcohol and Drug Abuse (LA-CADA)* $17,579 Jovenes, Inc.* $17,579
Capital Improvement Project $385,114
Economic Development Activities $480,000
TOTAL $1,207,097
* CDBG funding for social service programs (15% cap of CDBG funds) City Council June 4, 2024
Resolution No. 24-29 – Proposed FY 2024/25 Annual Action Plan Page No. 3 8 7
9 PROJECTS/ACTIVITIES FUNDED BY HOME Final Funding
Program Administration – HOME (10% cap of HOME funds) $24,041 CHDO Set-Aside – HOME (15% cap of HOME funds) $83,028
TBRA – Security Deposit Assistance $30,000
Affordable Housing Project $368,345
TOTAL $505,414
Citizen Participation Plan
The Citizen Participation Plan outlines the City’s policies and procedures to encourage resident participation in the development of the City’s Consolidated Plan, Annual Action Plan, and Annual Reports. Staff proposes that the City Participation Plan be revised to allow the City to increase or decrease funding for any specific activity by no more than 20% of the activity funding without triggering a public hearing; City Council will conduct two (2) public hearing on the Consolidated Plan/Action Plan(s); the Social Services Commission and Staff will review and provide funding recommendations for public service agency funding, City Council will review recommendations from the Social Services Commission and/or provide final funding recommendations; and to publish the public notices on the Consolidated Plan/Action Plan(s) in Spanish.
Fiscal Impact:
The CDBG and HOME programs are funded solely by the United States Department of Housing and Urban Development. Normally there is no impact to the general fund.
Citizens Advised:
The availability of the draft Annual Action Plan was published in The Norwalk Patriot and La Opinion and posted at City Hall and the City’s website from March 25, 2024 to April 25, 2024, for citizens to review and make comments before the public hearing. Notice of the Public Hearing for the Plan was published in The Norwalk Patriot and La Opinion and posted at City Hall and the City’s website on May 17, 2024. Any public comments received will be noted in the final Plan.
Strategic Plan 2023 Implementation:
The recommended actions will further the City’s Strategic Plan Goal 2: Objective 1 Re-invest in existing and aging infrastructure and Objective 3: Improve living conditions for residents in greatest need; Goal 3: Objective 1 Create dynamic neighborhoods, Objective 2 Diversify and grow the economy, and Objective 3 build great public destinations.
City Council June 4, 2024
Resolution No. 24-29 – Proposed FY 2024/25 Annual Action Plan Page No. 4 8 7
9 Recommended Action:
Staff recommends City Council:
a.adopt Resolution No. 24-29, A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NORWALK APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIPS PROGRAM FISCAL YEAR 2024/25 ANNUAL
ACTION PLAN, AN APPLICATION FOR FUNDING, AND AUTHORIZING THE CITY
MANAGER TO EXECUTE AND TRANSMIT ALL REQUIRED DOCUMENTS TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; and b.authorize the City Manager to execute agreements and any amendments, in forms approved by the City Attorney, with social service agencies for the provision of services funded under the Annual Action Plan; and
c. authorize the Director of Community Development to execute Memorandums of Understanding with City Departments and homeless referral organizations for the provision of services funded under the Annual Action Plan.
Attachments:
1. Resolution No. 24-29
2. FY 2024/25 Annual Action Plan