City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00257 5/9/2023 Discussion Item 4.
2024 One-Year Action Plan Federal Programs Allocation Process Workshop Number 2 File ID: 2023-00257
Location: Citywide
Recommendation: Review and provide direction regarding the recommended 2024 Community Development Block Grant Infrastructure and Public Facility projects.
Contact: Christine Weichert, Director of Development, (916) 440-1353, Sacramento Housing and Redevelopment Agency
Presenter: Stephanie Green, Program Manager, (916) 440-1302, Sacramento Housing and Redevelopment Agency
Attachments:
1-Description/Analysis
2-Attachment 1 - Background
3-Attachment 2 - Recommended Project List
4-Attachment 4 - CDBG Low/Moderate Income Areas Map
Additional Description/Analysis
Issue Detail: The One-Year Action Plan Allocation Process provides a specific opportunity for input from the Mayor and City Council, the City Manager, the community, and City Departments on the allocation of Community Development Block Grant (CDBG) funds for community development and infrastructure projects. Additionally, the process 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 CDBG and approved as part of the 2024 One-Year Action Plan in October 2023. The preliminary list of projects (Attachment 2) was evaluated by City and Sacramento Housing and Redevelopment Agency (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 2024 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 Infrastructure and
File ID: 2023-00257 5/9/2023 Discussion Item 4.
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.
Sustainability: Not applicable.
Commission Action: The Sacramento Housing and Redevelopment Commission (SHRC) will hear this item at its May 3, 2023 meeting. The Council will be notified of SHRC comments.
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 to identify, evaluate, and prioritize projects to be funded with the 2024 allocation of CDBG funds.
Projects are also solicited from City Council members. The result is a preliminary list of eligible projects from City departments. Projects are also solicited from City Council members and a list of projects provided by Councilmembers has also been developed. The recommended lists of projects could change in the event CDBG funding is less than estimated, or based on further analysis and input.
Financial Considerations: Below are the estimated allocations by category for the 2024 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 canceled, completed with cost-saving, or funds are being moved to ensure timely expenditure. Program income is funds generated by a grant-supported activity (e.g., loan repayment, property sale, etc.). Estimates for reprogrammed funds and program income are made in late summer.
Revenue Source 2024
Estimated
Allocation
Estimated 2024 CDBG Allocation $4,500,000
Funding Categories
- Infrastructure and Public Facility Improvements $1,200,000 - Housing Development, Preservation, and Homeownership: minor repair programs and multifamily affordable housing
$900,000
- Public Services (15% maximum) $675,000
- Grant Planning and Administration (20% maximum) $900,000 - HUD Loan Repayment $722,000
- Capital Reserve (~10% of Infrastructure Improvements) $103,000 Total $4,500,000
File ID: 2023-00257 5/9/2023 Discussion Item 4.
Revenue Source 2024
Estimated
Allocation
Estimated 2024 CDBG Allocation $4,500,000
Funding Categories
- Infrastructure and Public Facility Improvements $1,200,000 - Housing Development, Preservation, and Homeownership: minor repair programs and multifamily affordable housing
$900,000
- Public Services (15% maximum) $675,000
- Grant Planning and Administration (20% maximum) $900,000 - HUD Loan Repayment $722,000
- Capital Reserve (~10% of Infrastructure Improvements) $103,000 Total $4,500,000
LBE - M/WBE and Section 3 requirements: M/WBE and Section 3 considerations do not apply to this presentation. Minority and Women’s Business Enterprise requirements and Section 3 will be applied to all activities to the greatest extent feasible and as required by federal funding.
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 submitting an Analysis of Impediments (AI) to Fair Housing, a Consolidated Plan, and One-Year Action Plans to continue ongoing funding for these programs. The City Council approved the AI and the 2020-2024 Consolidated Plan 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 to coordinate program requirements and simplify 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 assessing 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 housing, public service, and community development needs and describes a One Year Action Plan Workshop Number Two May 9,2023
long-term strategy to meet those needs. In addition, the Consolidated Plan provides a vision, goals, and strategies for allocating 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 are detailed in the 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. In addition, 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).
CDBG Eligible Activities
The CDBG program requires that each activity must meet one of three national objectives: 1) Benefit 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 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 residents 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 the Action Plan strives for maximum leveraging opportunities in order to provide the greatest impact to residents.
One Year Action Plan Workshop Number Two May 9,2023
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 that 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 promoting positive community changes.
Infrastructure and Public Facility – Project Selection Criteria:
• Benefits to Low-Income Residents and Neighborhoods – eligible projects must be located in or directly benefit Sacramento’s low- and moderate-income residents (map of eligible areas attached as Attachment 3). At least 51% of those residents in the project service area need to be at low and moderate income. • 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 a match for grants increases the impact of these scarce funds. It is also a consideration that the federal government monitors.
• 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 2024 CDBG Action Plan
Project Location/District Amount
Requested Use of Funds
Envision Broadway
Oak Park
Broadway between Franklin
Blvd and Martin Luther King
Jr Blvd
District 5
$150,000 Design and
Engineering
Fruitridge Road
Complete Streets
Fruitridge Rd between 65th
St Expressway and Power
Inn Rd
District 6
$300,000 Design,
Engineering
and
Construction
Wood Park Community
Garden (and ADA
improvements)
6755 Bodine Circle 95823
District 8
$400,000 Construction
Franklin Complete
Streets
Franklin Blvd between 32nd
Ave and the city limits near
38th Ave
District 5
$250,000 Design, ROW
North Pointe Park 4925 Amber Leaf Way
District 1
TBD Design,
Construction
Robla Park 625 Bell Avenue
District 2
TBD Design,
Construction
Ninos Park 705 Northfield Drive
District 3
TBD Design,
Construction
Thelma Park 2324 Thelma Avenue
District 3
TBD Design,
Construction
Patio Ave. District 3 TBD Design,
Construction
South Sacramento
Safe Bike Routes
Broadway/Stockton/Franklin
District 5
TBD Design,
Construction
Attachment 4