City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00993 June 14, 2022
Title: (City Council) 2023 One Year Action Plan Federal Programs Allocation Process Workshop Number 2
Location: Citywide
Recommendation: Review and provide direction regarding the recommended 2023 Community Development Block Grant Infrastructure and Public Facility projects.
Contact: Christine Weichert, Director of Development, (916) 440-1353, [email protected] ,
Sacramento Housing and Redevelopment Agency
Presenter: Celia Yniguez, Program Manager, (916) 440-1350, [email protected], Sacramento Housing and Redevelopment Agency
Attachments:
1-Description/Analysis
2-Background
3-Recommended Infrastructure and Public Facility Projects for 2023 Action Plan 4-Map: CDBG Low/Moderate Income Areas
Description/Analysis
Issue Detail: The allocation process approved in 2019 provides specific opportunity for input from the Mayor and City Council, the City Manager, the community, and City Departments.
Additionally, it aligns with the development of the City’s Capital Improvement Program (CIP) resulting in improved alignment of funding resources to improve housing, economic and community development opportunities for low and moderate income residents of Sacramento.
This is the second workshop specific to the Infrastructure and Public Facilities projects to be funded with Community Development Block Grant (CDBG) and approved as part of the 2023 One-Year Action Plan in October 2022. The preliminary list of projects (Attachment 2) was evaluated by City and SHRA staff as part of the City’s CIP planning process.
Policy Considerations: The One-Year Action Plan Allocation Workshop and the preliminary infrastructure and public facility project list for the 2023 Action Plan are consistent with the adopted Consolidated Plan, including the Citizen Participation Plan. This Workshop provides transparency to the allocation process. City and SHRA staff developed the recommended list of prioritized Infrastructure and Public Facility projects (Attachment 2) to align with the City Budget and Capital Improvement Program.
Economic Impacts: Not applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): This informational workshop is not considered a project under CEQA pursuant to CEQA Guidelines § 15378.
National Environmental Policy Act (NEPA): This informational workshop involves no federal action and therefore NEPA does not apply.
Sustainability Considerations: Not applicable.
Rationale for Recommendation: As a condition of the receipt of various federal grants provided through HUD, the regulations require the annual submittal of a Consolidated Plan for a five-year period and annually a One-Year Action Plan describing proposed activities and expenditures that meet the goals and priorities of the Consolidated Plan. In general, the purpose of the activities funded is to revitalize lower-income neighborhoods and to assist disadvantaged populations by providing adequate public facilities and services and generating affordable housing opportunities.
The SHRA and City staff representing the following Departments: Public Works; Youth, Parks and Community Enrichment (YPCE); Utilities, and the Office of Innovation and Economic Development (OIED) met two times to identify, evaluate, and prioritize projects. The result is a preliminary prioritized list of eligible projects from City departments. Projects are solicited from City Councilmembers, City grant managers, forward funding staff, and priority project lists, among others.
The recommended list of projects is prioritized in the event CDBG funding is less than estimated.
Financial Considerations: Below are the estimated allocations by category for the 2023 CDBG entitlement funding and are based upon previous years’ allocations. Funding not included are reprogrammed funds and program income. Reprogrammed funds are made available when an activity has been cancelled, completed with cost saving, or funds are being moved to ensure timely expenditure. Program income are funds generated by a grant- supported activity (e.g., loan repayment, property sale, etc.). Estimates for reprogramed funds and program income are made in late summer.
Revenue Source 2023
Estimated
Allocation
Estimated 2023 CDBG Allocation $4,830,000
Funding Categories
- Infrastructure and Public Facility Improvements $1,925,000 - Housing Development, Preservation and Homeownership:
minor repair programs and Multifamily Affordable Housing
$541,500
- Public Services (15% maximum) $724,500
- Grant Planning and Administration (15%) $724,500
- HUD Loan Repayment $722,000
- Capital Reserve (10% of Infrastructure and Public Facility Improvements) $192,500
Total $4,830,000
Local Business Enterprise (LBE)/Minority and Women’s Business Enterprise (MBE/WBE):
Not applicable.
Attachment 1
Background
Since 1982, SHRA has managed and administered federal housing, public service and community development funds on behalf of the City and County of Sacramento (City and County) and has served as the federal housing and community development staffing entity pursuant to a joint powers agreement between the City and County and its Housing Authorities. The United States Department of Housing and Urban Development (HUD) requires the submission of an Analysis of Impediments (AI) to Fair Housing, a Consolidated Plan and One-Year Action Plans to continue ongoing funding for these programs. The AI and the 2020-2024 Consolidated Plan were approved by the City Council on October 22, 2019 by Resolution 2019-0408.
Analysis of Impediments (AI)
In 2016, the City authorized SHRA to enter into collaboration agreements with surrounding municipalities and public housing authorities to perform a regional AI. .
The AI identifies actions needed to overcome the effects of impediments to fair housing which are incorporated into the Consolidated Plan. The Primary Findings are the following: 1) segregation and lack of access to economic opportunity persist; 2) homeownership rates vary widely by race and ethnicity, lowest rates for Blacks and Hispanics; 3) highest rates of cost burden and crowding are experienced by Blacks and Hispanic households; 4) affordable rental options increasingly limited; 5) residents with disabilities lack access to affordable, accessible housing, services; 6) public transportation outside of the downtown grid is limited and costly (prior to Sacramento Regional Transit network changes); 7) educational inequities persist in the region; and 8) there are disparities in labor market engagement.
Consolidated Plan
A Consolidated Plan is required of any city, county or state that receives federal block grant dollars for housing and community development funding from HUD. HUD consolidated the planning and application process of formula grant programs in 1995, with the purpose of coordinating program requirements and simplifying the process of requesting and obtaining federal funds. The City of Sacramento receives four formula grants which are administered by SHRA including: Community Development Block Grant (CDBG), Home Investment Partnership (HOME), Emergency Solutions Grant (ESG), and Housing for Persons with AIDS (HOPWA) programs. The consolidated planning process is intended to achieve the following:
Promote citizen participation in the development of local priority needs benefiting low- and moderate- income persons.
Develop a series of One-Year Action Plans that will be the basis for assessment of performance.
Consult with public and private agencies to identify needs and appropriate actions required to address their needs.
The 2020-2024 Consolidated Plan is a joint City-County planning document that identifies the areas housing, public service, and community development needs and One Year Action Plan Workshop Number Two
June 2022
describes a long-term strategy to meet those needs. The Consolidated Plan provides a vision, goals and strategies for the allocation of these federal formula grant funds.
The Consolidated Plan has three overarching goals to address community needs including: 1) provide affordable housing, including for those with special needs; 2) provide a suitable living environment through more livable and integrated neighborhoods; and 3) expand economic opportunities, especially for low- and moderate-income persons. Specific activities the City will undertake to achieve the stated objectives in 2020 are detailed in the 2020 One-Year Action Plan. These activities are designed to serve extremely low-, low-, and moderate-income residents by funding programs and projects in the following categories: 1) Infrastructure and Public Improvements, 2) Affordable Housing Development, and 3) Public Services. The Consolidated Plan’s goals and priorities for the City were developed through an extensive community engagement process and consultation with public agencies in the City.
Action Plan
The One-Year Action Plan (Plan) details programs, activities, and budgets for the year beginning January 1 through December 31. The One-Year Action Plan describes the resources expected to be available in the coming program year from federal, nonfederal, and private sources. It includes a description of the activities that will be undertaken to meet the specific objectives in the Consolidated Plan. In subsequent years, the One-Year Action Plan will be used to update the Consolidated Plan. It also provides the City with a basis for assessing its progress in meeting the goals of the Consolidated Plan through the Consolidated Annual Performance and Evaluation Reports (CAPER).
The Action Plan’s key components are broken down in the following sections:
CDBG Eligible Activities
The CDBG program requires that each activity must meet one of three national objectives: 1) Benefitting low and moderate income persons using one of four subcategories: a) Low and Moderate Income (LMI), Area Benefit in a primarily residential census tract; b) LMI Clientele (homeless, seniors, etc.); c) Housing for LMI residents; d) Jobs for Jobs LMI residents; 2) Prevention or elimination of slums or blighted areas; and 3) Urgent Need. Additionally, the activity must also be eligible and generally include the following: Public Facility/Infrastructure Improvements; Public Services; Acquisition; Clearance and Remediation Activities; Homeownership Assistance; and Planning and Environmental Studies.
Infrastructure and Public Facility Improvements
There is a continuing need in the City for infrastructure and public facility improvements to serve low- and moderate-income resident who reside within older neighborhoods that either have inadequate facilities or where existing facilities suffer from heavy use or deferred maintenance, leading to disrepair. Capital improvement funding identified in One Year Action Plan Workshop Number Two
June 2022
the Action Plan strives for maximum leveraging opportunities in order to provide the greatest impact to residents.
Supporting large infrastructure and public facility improvement projects benefiting low and moderate-income areas remains a key objective of the City’s CDBG Program. The Consolidated Plan identifies targeted priority areas which represent the intersection of various considerations for effectively targeting funding and maximizing impacts. To the extent a pipeline of projects exists within the priority areas, the program goal is to strategically support such projects. However, area benefit projects outside the priority areas will also be supported where strategic projects exist in broader low- and moderate-income areas and to the extent that capital and public facility funding remains available.
The Action Plan recognizes the limited federal, state, and local funding available for Projects, and strategically focuses funding on fewer, but larger projects in low- and moderate-income neighborhoods. The goal is to create a concentration of activity that generates strategic and visible impacts which promote positive changes within the community.
Infrastructure and Public Facility – Project Selection Criteria:
Benefits to Low Income Residents and Neighborhoods – eligible projects must be located in or directly benefit low- and moderate-income residents of Sacramento (map of eligible areas attached as Exhibit A). Project Readiness – projects must be able to expend the CDBG funds within the calendar year or shortly thereafter. This is a consideration tracked by the federal government.
City Priority – to rate highly in this category, the project must meet a City priority category such as being listed in an approved project planning guide or meeting a City Council or City Manager priority.
Sustainability, Safety and ADA Considerations – as Citywide goals, these issues are weighed in terms of increasing safety, reducing City liability, reducing ongoing operating costs, and improving access for disabled persons. Leverage/Match for Grant Applications – using CDBG as match for grants increases the impact of these scarce funds. It is also a consideration that is monitored by the federal government.
Availability of Other Funding Sources – while leverage is an important criterion, other City funds may not be available to pay for needed community priorities. CDBG can provide a valuable resource when no other funds are available in low-income communities.
Geographic Distribution – this criterion weighs how well eligible areas of the city are being served by CDBG. Examining the distribution by Council districts ensures funds are disbursed throughout eligible areas of Sacramento.
Attachment 2
Preliminary Infrastructure and Public Facility Project List for the 2023 CDBG Action Plan
Provided by City Staff
Projects Order by Priority
Project Location/District Amount
Requested Use of Funds
1. Northwood School
Access
El Camino Ave.,
Lexington St., Clay St.,
Frienza Ave., Taft St.
2 $700,000 Construction
2. Broadway Complete
Streets Phases 1 and
2 3rd St-24th St
4 $300,000 Construction
3. Franklin Complete
Streets
Franklin Boulevard
between 19th and 32nd
Avenues
5 $800,000 Design,
Engineering and
Construction
*Notice of Funding
Availability (NOFA) -
Non-profits
$100,000
*CIP Environmental
Review for Projects
$25,000
TOTAL
$1,925,000
2023 Estimated
Allocation
$1,925,000
*Annual allocations
Attachment 3