City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00438 3/11/2025 Discussion Item 5.
2026 One-Year Action Plan Federal Programs Allocation Process Workshop Number One File ID: 2025-00438
Location: Citywide
Recommendation: Review and provide direction regarding the Federal Programs Allocation Process Schedule, Eligibility, and Potential Projects.
Contact: Christine Weichert, Director of Development Finance, (916) 440-1353, [email protected], Sacramento Housing and Redevelopment Agency
Presenter: Christine Weichert, Director of Development Finance, (916) 440-1353, [email protected], Sacramento Housing and Redevelopment Agency Attachments:
1-Description/Analysis
Description/Analysis
Issue Detail: On May 28, 2019, the Council approved the One-Year Action Plan Allocation Process for federal funds administered by the Sacramento Housing and Redevelopment Agency (SHRA). The One-Year Action Plan outlines programs, projects, and other actions for multiple federally funded programs, including Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) Program, and is approved by the Council each year. The One-Year Action Plan Allocation Process includes a process and schedule to develop the annual One-Year Action Plan.
The process begins early each year and includes workshops with the City Council, and the Sacramento Housing and Redevelopment Commission, and multiple coordination activities with the City Manager and City Departments to determine projects and programs. Additionally, the schedule aligns with the development of the City’s annual Capital Improvement Program. This presentation is the initial step in the One-Year Action Plan Allocation process and requests input from the Council related to potential projects.
Policy Considerations: The One-Year Action Plan Allocation Workshop is consistent with the adopted Consolidated Plan, including the Citizen Participation Plan. This Workshop provides transparency to the allocation process.
File ID: 2025-00438 3/11/2025 Discussion Item 5.
Economic Impacts: None.
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
Commission/Committee Action: A workshop was held at the Sacramento Housing and Redevelopment Commission (SHRC) meeting of February 19, 2025.
Rationale for Recommendation: Not applicable.
Financial Considerations: Below are the estimated allocations for 2026 for each funding source.
The figures are based on previous years’ entitlement allocations.
Revenue Source 2026 Estimated New
Allocation
CDBG $4,500,000
HOME $2,200,000
ESG $ 400,000
HOPWA $2,000,000
Total $9,100,000
Local Business Enterprise (LBE): Not applicable.
Background: Since 1982, the Sacramento Housing and Redevelopment Agency (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 an agreement between the City and County and its housing authorities. SHRA administers four formula grants on behalf of The City:
Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Housing Opportunities for Persons with AIDS (HOPWA), and Emergency Solutions Grant (ESG). The United States Department of Housing and Urban Development (HUD) requires the submission of two documents as part of the formula grant programs. These documents include the Five Year Consolidated Plan and annual One-Year Action Plan, which are described below.
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
File ID: 2025-00438 3/11/2025 Discussion Item 5.
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 Consolidated Plan identifies the City’s housing, public service, and community development needs and describes a long-term strategy to meet those needs. The Consolidated Plan provides the vision, goals, and strategies for the allocation of these federal formula grant funds.
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.
The 2025-2029 Consolidated Plan was adopted by City Council on October 8, 2024.
To meet its community's needs, the current Consolidated Plan is guided by three overarching goals that are applied according to these needs. The three overarching goals are:
1) To provide decent housing by preserving the affordable housing stock, increasing the availability of affordable housing, reducing discriminatory barriers, increasing the supply of supportive housing for those with special needs, and transitioning homeless persons and families into housing.
2) To provide a suitable living environment through safer, more livable neighborhoods, greater integration of low- and moderate-income residents throughout Sacramento, increased housing opportunities, and reinvestment in deteriorating neighborhoods. 3) To expand economic opportunities through more jobs paying self-sufficient wages, greater homeownership opportunities, development activities that promote long-term community viability, and the empowerment of low- and moderate-income persons to achieve self- sufficiency.
Specific activities the City of Sacramento and SHRA will undertake to achieve the objectives are detailed in the One-Year Action Plan, described below.
Action Plan
The One-Year Action Plan details the 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, nonfederal, and private sources. It includes a description of the activities that will be undertaken to meet the specific objectives in the Consolidated Plan. These
File ID: 2025-00438 3/11/2025 Discussion Item 5.
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 Action Plan 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 HUD Entitlement Grants covered by the Action Plan (CDBG, HOME, HOPWA, ESG) are described below:
CDBG Program
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. In addition to meeting a National Objective, the activity must also generally include the following: public facility/infrastructure improvements; public services; housing development, preservation and homeownership; and planning and environmental studies.
HOME Program
The HOME Program empowers grantees to design and implement affordable housing strategies to respond to locally determined needs. HOME funds, unlike CDBG, can be used for construction of new housing. Additionally, HOME funds are also used for the rehabilitation of existing housing.
ESG program
ESG provides funds for a variety of activities to address homelessness as authorized under the federal Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009.
ESG funds may be used for five program components: street outreach, emergency shelter, homelessness prevention, rapid re-housing assistance, and administrative activities. Rapid re- housing services include housing search and placement, housing stability case management, direct short-term rental assistance, rental application fees, security/utility deposits, and first/last months’ rent.
HOPWA
HOPWA provides housing assistance and related supportive services to low-income persons living with HIV/AIDS and their families. These include, but are not limited to, the acquisition, rehabilitation, or new construction of housing units, costs for facility operations, rental assistance, and short-term payments to prevent homelessness. Supportive services can include case management, substance abuse treatment, mental health treatment, nutritional services, job training and placement assistance, and assistance with daily living.
As a HOPWA recipient, SHRA is responsible for serving eligible individuals within the Eligible
File ID: 2025-00438 3/11/2025 Discussion Item 5.
Metropolitan Statistical Area (EMSA), a metropolitan area with more than 500,000 people and more than 2,000 persons living with HIV or AIDS. The eligible area for HOPWA funds allocated to the City, includes Sacramento, Yolo, Placer, and El Dorado counties. SHRA works with sub-recipients to provide services to HOPWA-eligible clients. In 2024, the anticipated service providers include: 1) CARES Community Health (Sacramento), 2) Sunburst (Sacramento), 3) Volunteers of America (Sacramento), 4) Colonia San Martin (Sacramento), 5) Communicare (Yolo County), and 6) Sierra Foothills AIDS Foundation (El Dorado and Placer Counties). These organizations provide services, case management, and emergency shelter to individuals and families.
The Action Plan’s key components are outlined below:
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 are suffering 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. Supporting large infrastructure and public facility improvement projects benefiting low- and moderate-income areas is a key objective of the City’s CDBG Program. 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.
The infrastructure and public facility improvement project recommendations are selected through consultation with City staff and are based on the following criteria:
· Benefits to Low-Income Residents and Neighborhoods - eligible projects must be located in or directly benefit Sacramento’s low- and moderate-income residents. 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 twelve to eighteen months, or shortly thereafter. This is a consideration tracked by the federal government.
· 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 Council or City Manager priority.
· 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
File ID: 2025-00438 3/11/2025 Discussion Item 5.
served by CDBG. Examining the distribution by districts ensures funds are disbursed throughout eligible areas of the City.
Housing
The housing activities outlined in the Action Plan seek to support, increase and improve the multi- family housing stock, fund minor and emergency repairs to existing single-family homes, and provide decent and affordable housing to low- and moderate-income individuals.
To maximize fair housing choice, affordable housing rehabilitation and new construction are not limited to low- and moderate-income areas and can be developed where it is most appropriate.
Guidelines for investing in affordable housing rehabilitation and new construction activities were approved by the City Council separately as part of SHRA’s Multifamily Lending and Mortgage Revenue Bond Policies.
Public Services
An overall priority for CDBG is to increase self-sufficiency and economic opportunity for low- and moderate-income residents and individuals with special needs so that they can achieve a reasonable standard of living. The priority in the Consolidated Plan for the utilization of public service funding is to support the provision of vital services to the City’s most vulnerable populations, such as providing meals to seniors and services and emergency shelter to homeless households.
SHRA is part of the Continuum of Care Advisory board and is committed to partnering with Sacramento Steps Forward (SSF), the lead agency for the Continuum of Care (CoC). As such, SHRA continues to participate in discussions about the most effective ways to reach out to homeless individuals and assess their individual needs as part of ongoing coordination efforts. SHRA continues to work with City staff on the most strategic use of federal funding for homeless services, including CDBG and ESG to reflect and complement the broader commitments of the City to prevent and end homelessness.
Objectives to address homelessness include supporting the continuation of the CoC homeless assistance system for individuals and families through the provision of emergency shelters, rapid re- housing/prevention services, permanent supportive housing services, and supportive services for low - and moderate-income individuals and those with special needs, including the homeless and persons living with HIV/AIDS.
As part of the Action Plan, CDBG and ESG funding is expected to continue for established programs which include emergency shelters, rapid re-housing, and other actions related to the prevention of homelessness.