CITY OF POMONA
COUNCIL REPORT
May 1, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Benita DeFrank, Neighborhood Services Director SUBJECT: Public Hearing Amending the Fiscal year (FY) 2022-23 Annual Action Plan, the Home investment partnerships American Rescue Plan (HOME-ARP) and the FY 2022-23 City Operating Budget TO APPROPRIATE Community Development Block Grant Corona Virus (CDBG-CV) and HOME-ARP Funds RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2023-69 – (ATTACHMENT NO. 1) - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, Amending the Fiscal year (FY) 2022-23 Annual Action Plan, the HOME Investment Partnerships American Rescue PLAN (HOME-ARP) and the FY 2022-23 City Operating Budget TO APPROPRIATE Community Development Block Grant Corona Virus (CDBG-CV) and HOME-ARP Funds Approve award of $274,839 in CDBG-CV funds to Volunteers of America Los Angeles, under the current site operator agreement for the Hope for Home Service Center EXECUTIVE SUMMARY:
Annually, the Housing Services Division administers over 15 different grants with various activities, totaling over $30 million in program funds. Staff has identified unexpended funds balances from activities, which are needed to complete the same activities or be re-appropriated to other eligible projects. These unexpended funds come from projects that were either underway during the current fiscal year and are now complete or previous years and were not appropriated for FY 2022-23. As such, these funds and activities must be appropriated in FY 2022-23 for expenditure authority. Additionally, HOME-ARP funds are being re-appropriated to another eligible activity. The City may amend the FY 2022-23 Annual Action Plan and HOME-ARP Plan by holding a public hearing giving residents the opportunity to comment on proposed budget changes.
FISCAL IMPACT: This action will adjust the FY 2022-23 Operating Budget by increasing revenue estimates and appropriating unspent funds available from the prior fiscal year. The changes to the Operating Budgets are as follows:
Amendments to the FY 2022-23 Operating Budget
FUNDING SOURCE
PROJECT
REVENUE ACCT #
INCREASE/DECREASE TO REVENUES ($)
EXPENDITURE
ACCT #
APPROPRIATE ($)
CDBG-CV
Youth Employment
194-1798-40848-65336
-$92,056
Controllable Contract Services (194-1798-52285-65336
-$92,056
Housing Assistance
194-1798-40848-65337
-$78,113
Housing Assistance (194-1798-52579-65337)
-$78,113
Emergency Shelter – Motel Vouchers
194-1798-40848-xxxxx (new project)
+$274,839
Controllable Contract Services (194-1798-52285-xxxxx (new project) +$274,839
HOME-ARP
Development of Non-Congregate Shelter
190-1791-40850-00000
-$2,361,578
Acq/Rehab (190-1791-66201-00000)
-$2,361,578
Development of Affordable Rental Housing
190-1791-40848- xxxxx (new project)
+$2,361,578
Rehabilitation Costs (190-1791-52584- xxxxx (new project)) +$2,361,578
PUBLIC NOTICING REQUIREMENTS: – A combined Notice of Public Hearing and 15-Day Comment Period for the Amendment of the Annual Action Plan and HOME-ARP Plan was published on April 14, 2023 in the Inland Valley Daily Bulletin (Attachment No. 2).
PREVIOUS COUNCIL RELATED ACTION: On June 6, 2022, the City Council adopted the FY 2022-23 City Operating Budget and the FY 2022-23 Capital Improvement Program (CIP) Budget.
DISCUSSION:
On March 27, 2020, Congress approved the CARES Act which made available $5 billion in Community Development Block Grant Coronavirus (“CDBG-CV”) funds. Of this amount, HUD immediately allocated $2 billion to local governments based on the Fiscal Year 2020 CDBG formula. Additionally, the CARES Act made $4 billion in Emergency Solutions Grant Coronavirus (ESG-CV) funding available to supplement FY 2020 ESG funding.
The City of Pomona received $1,221,892 in CDBG-CV funds and $629,131 in ESG-CV funds. The primary objective of the funding is to support activities that impact short-term and long-term social welfare and economic development recovery efforts. Funds were allocated to activities that were vital in responding to the effects of Coronavirus Disease 2019 (“COVID-19”)., including housing assistance, information and referral services, business assistance, employment opportunities and park improvements to facilitate safe outdoor gathering spaces.
Staff has identified unexpended funds balances from these activities that will be re-appropriated to other eligible activities. These unexpended funds come from projects that were either underway during the current fiscal year and are now complete or previous years fund balance. CDBG-CV and HOME-ARP funds must be appropriated in FY 2022-23 for expenditure authority. The City must amend the FY 2022-23 Annual Action Plan and HOME-ARP Plan by holding a public hearing giving residents the opportunity to comment on proposed budget changes.
CDBG-CV
Proposed reallocations of available funding is as follows:
Youth Employment: This is an existing activity where another source of funds (Youth Commitment Funds) will be utilized to continue providing low-income youth with jobs. The CDBG-CV fund balance includes $104,670 in unspent funds from FY 21-22 and $92,056 currently budgeted in FY 22-23 that is needed to support homelessness. These funds will be reallocated.
Housing Assistance: This is an activity which is complete. An alternate source of funding is available to provide limited short-term rental assistance for eligible households in need of housing assistance. The CDBG-CV fund balance of $78,113 is needed to support homelessness. These funds will be reallocated.
Emergency Shelter – Motel Vouchers: This is a new CDBG-CV eligible activity that will support the City’s effort in assisting the homeless. Specifically, reallocated funds from Youth Employment and Housing Assistance totaling $274,839 will be used to provide emergency shelter motel assistance for vulnerable households. Volunteers of America Los Angeles (VOALA) is contracted with the City to assist homeless persons needing temporary motel shelter. Funds will be awarded to VOALA.
HOME-ARP
On March 11, 2021, Congress signed the American Rescue Plan Act of 2021 for funding to address the impacts of the COVID-19 pandemic on the economy, housing, health, businesses, individuals and local governments. The City received an award of $3.1 million in HOME-ARP funds to address the need for homelessness assistance and supportive services. These funds are not the traditional HOME Program funds, but are also administered through the HUD and must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. Eligible uses of HOME-ARP funds include the following activities:
Administration and Planning;
Development and Support of Affordable Rental Housing;
Tenant-Based Rental Assistance;
Supportive Services for Qualifying Populations; and
Acquisition and Development of Non-Congregate Shelter (NCS) The existing HOME-ARP Plan, as approved by HUD includes the City’s Plan for Administration of HOME-ARP activities, Supportive Services for Qualified Populations and Acquisition/Development of Non-Congregate Shelter. Staff is proposing that funds be reallocated from the Development of Non-Congregate Shelter to the Development of Affordable Rental Housing. Currently, funds are budgeted in the FY 2022-23 Operating Budget for Development of Non-Congregate Shelter. Non-Congregate shelter provides temporary shelter to individuals and families who are homeless or at risk of homelessness. In FY 2021-2022, the City acquired a multi-family housing complex for non-congregate shelter with Emergency Solutions Grant (ESG) funds which will require ongoing maintenance with no rental revenue stream derived from the property. ESG funds are the main source for continued up keep of the property but those funds have steadily decreased every year. Thus, staff proposes the creation of a new activity to develop long-term affordable rental housing with HOME-ARP funds.
COUNCIL PRIORITIES & GOALS: This supports the following FY 2020/21 City Council Priorities:
Fiscal and Operational Responsibility – Goal C: Obtain additional grant funding and other revenues to help achieve City goals; and Increased Opportunity and Housing Stability - Goal J: Encourage the development and maintenance of quality housing opportunities for all; and Increased Opportunity and Housing Stability - Goal K: Reduce the unsheltered homeless population by 10% annually and take actions to mitigate the impacts of homelessness on the Community.
Prepared by:
Beverly Johnson
Neighborhood Services Assistant Director
ATTACHMENT:
Attachment No. 1 – Resolution No. 2023-69
Attachment No. 2 – Public Notice
Amendments to the 2022-23 Annual Action Plan, HOME-ARP Plan and 2022-23 Operating Budget to Appropriate CDBG-CV and HOME-ARP Funds