City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00804 6/11/2024 Discussion Item 3.
2025 One-Year Action Plan Federal Programs Allocation Process and Consolidated Plan Workshop
File ID: 2024-00804
Location: Citywide
Recommendation: Review and provide direction.
Contact: Christine Weichert, Director, Housing Finance, (916) 440-1353, Sacramento Housing and Redevelopment Agency
Presenter: Stephanie Green, Program Manager, (916) 440-1302, [email protected], Sacramento Housing and Redevelopment Agency
Attachments:
1- Description/Analysis
2- Attachment 1 - Background
3- Attachment 2 - Recommended List of Projects
4- Attachment 3 - Map: CDBG Low/Moderate Income Areas
Additional Description/Analysis
Issue Detail: The Sacramento Housing and Redevelopment Agency (SHRA) administers four formula program grants from the Department of Housing and Urban Development (HUD) on behalf of The City, including Community Development Block Grant (CDBG), HOME, Emergency Solutions Grant (ESG), and Housing for Person with AIDS (HOPWA). HUD requires the submission of a Consolidated Plan every five years and a One-Year Action Plan annually. This will be the second workshop for the 2025 Action Plan and the Consolidated Plan.
The Consolidated Plan is a five-year planning document that identifies the area’s housing, public service, and community development needs and describes a long-term strategy to meet those needs.
SHRA is currently in the process of developing the next Consolidated Plan, which will cover the years 2025 through 2029. The Consolidated Plan development process includes extensive consultation with the community, community service providers, other jurisdictions, and other entities with a potential interest in or knowledge of housing and non-housing community development issues. The Consolidated Plan is required to be completed, approved by the governing board, and submitted to
File ID: 2024-00804 6/11/2024 Discussion Item 3.
HUD by November 15, 2024. An update on the Consolidated Planning process will be provided at the workshop.
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 2025 One-Year Action Plan in October 2025. 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 2025 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 Public Facility projects to align with the City Budget and Capital Improvement Program.
Economic Impacts: None.
Environmental Considerations: This informational workshop is not considered a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines § 15378, and there are no actions requiring review under the National Environmental Policy Act (NEPA). Environmental review pursuant to CEQA and NEPA will be completed prior to any project commitment.
Sustainability: The Consolidated Plan serves as a five-year planning document to direct investments that seek to improve health, nutrition, and social and economic sustainability.
Commission/Committee Action: The Sacramento Housing and Redevelopment Commission (SHRC) heard this item at its May 15, 2024, meeting.
Rationale for Recommendation: As a condition of receiving various federal grants provided through HUD, the regulations require the submittal of a five-year Consolidated Plan and an annual 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. SHRA and City staff met to identify, evaluate, and prioritize projects to be funded with the 2025 allocation of CDBG funds. Projects are also solicited from City Council members. In order to develop the recommended list of projects, projects submitted for consideration are assessed based on CDBG eligibility, alignment with Consolidated Plan goals, community need, City staff recommendations, ability to spend funds within 12-18 months, and funding availability.
The result is a preliminary list of eligible projects.
File ID: 2024-00804 6/11/2024 Discussion Item 3.
The recommended list of projects could change in the event CDBG funding is less than estimated or based on further analysis and input. Newly funded capital improvement projects are scheduled to be implemented and completed within 18 months to comply with federal regulations governing the timely expenditure of funds in the current year.
Assessment of Proposed Projects
At the first CDBG workshop on February 13, 2024, Councilmembers provided preliminary feedback on potential infrastructure activities to be funded with CDBG funds, which included construction of a restroom at Robla Community Park (District 2), and funding projects that support Safe Routes to Schools. Additional feedback included utilizing funds towards rental assistance to keep people housed. Following the first workshop, an additional recommendation was made for additional lighting at Ninos Park Playground (District 3).
The potential for funding the Robla Community Park Restroom Project was discussed with the City Parks Department staff. Construction of the restrooms is estimated to cost approximately $800,000.
The City does not have additional funding identified to supplement CDBG funds for the construction of the restroom at this time. In addition, Colonial Park Restroom (District 6) has been identified as a higher priority. Colonia Park restroom is an existing restroom that has been on the City’s list for needed improvements and has also been requested by the community.
City Staff has also recommended improvements at the Ninos Park Playground. Improvements will include new playground equipment, as well as security lighting.
The Northwood School Access Improvements Project, funded with CDBG in 2023, is the only project currently proposed by the City to address Safe Routes to Schools. Construction is almost complete and coordination with the Northwood School for the education component has begun. No additional funding for the Northwood School Access Project has been requested at this time.
In addition to City Staff and Councilmember recommendations, there is a need to provide funding for environmental assessments and clean up at the Dos Rios housing site so that affordable housing may be developed upon completion of the light rail station.
Forty percent of available HUD and State ESG funds are currently budgeted to Rapid-Rehousing and Prevention Services, which includes rental assistance. Rental assistance activities are also an eligible use of CDBG funds, however no CDBG funds are currently allocated to rental assistance. In order to allocate CDBG funds to rental assistance, these activities would fall under the public services category which has a maximum expenditure cap of 15% of the annual entitlement. Currently, public services funds are allocated to the Meals on Wheels program and homeless shelter operations.
Financial Considerations: Below are the estimated allocations by category for the 2025 CDBG entitlement funding, and are based upon previous years’ allocations, as well as 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.).
The amount of funding required for the HUD Loan Repayment for Mirasol Village has increased from
File ID: 2024-00804 6/11/2024 Discussion Item 3.
previous years due to a rising variable interest rate.
All proposed allocations, including program income and reprogrammed funds, are estimates and may change prior to final Action Plan adoption.
Revenue Source 2025
Estimated
Allocation
Estimated 2025 CDBG Allocation $4,600,000
Estimated Program Income $143,000
Estimated Reprogrammed Funds $0
Total Estimated Allocation $4,743,000
Funding Categories
- Infrastructure and Public Facility Improvements $970,000 - Housing Development, Preservation, and Homeownership: minor repair programs and multifamily affordable housing
$1,085,000
- Public Services (15% maximum) $600,000
- Grant Planning and Administration (20% maximum) $920,000 - HUD Loan Repayment $980,000
- Capital Reserve $188,000
Total $4,743,000
LBE - M/WBE and Section 3 requirements:
Minority and Women’s Business Enterprise requirements and Section 3 considerations will be applied to all activities to the extent required by the federal funding and in accordance with SHRA’s Section 3 Economic Opportunity Plan.
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 Department of Housing and Urban Development (HUD) requires the submission of a Consolidated Plan every five years and a One-Year Action Plan annually.
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 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 the 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 area’s housing, public service, and community development needs and 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 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 are developed through an extensive community engagement process and consultation with public agencies in the City.
Attachment 1
The next Five-Year Consolidated Plan period is 2025-2029. The Consolidated Plan is required to be completed, approved by governing board, and submitted to HUD by November 15, 2024.
Action Plan
The One-Year Action Plan (Plan) details programs, activities, and budgets for the year beginning January 1 through December 31. The Plan describes the resources expected to be available in the coming program year from federal sources. It includes a description of the activities that will be undertaken to meet the specific objectives in 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 outlined below:
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 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 infrastructure and public facility improvement project recommendations are selected through consultation with City staff and are based on the ability for them to be completed in a timely manner, CDBG program eligibility, and current County priorities.
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 that promote positive changes within the community.
Attachment 1
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 2025 CDBG Action Plan
Project District Location Amount
Requested Use of Funds
Ninos Park - Playground
Equipment Installation
3 705 Northfield Drive
$500,000 Design, Construction
Dos Rios Housing Site -
Remediation
4 1451 Sproule Ave.
$175,000 Environmental
Remediation
Colonial Park - Restroom
Rehabilitation
6 5315 19th Ave.
$80,000 Design
24 Street Bypass Park –
Exercise Equipment Install
8 7290 24th St. $200,000 Design, Construction
Environmental Review $15,000
TOTAL $970,000