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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: SEPTEMBER 20, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: ROD POWELL, PLANNING MANAGER
PREPARED BY: CRISTINA GONZALEZ
TITLE:
SUBMISSION OF CONSOLI DATED ANNUAL PERFORMANCE
AND EVALUATION REPORT FOR FY 2021-22 TO UNITED
STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
RECOMMENDED MOTION:
It is recommended that City Council approve a resolution approving the Fiscal Year (FY) 2021- 22 Consolidated Annual Performance and Evaluation Report (CAPER) and authorize submittal to the United States Department of Housing and Urban Development (HUD).
RECOMMENDATION:
The Community Development Department (CDD) recommends that City Council approve a resolution approving the FY 2021-22 CAPER and authorize submittal to HUD.
EXECUTIVE SUMMARY:
The City of Salinas (City) is designated as a HUD Entitlement jurisdiction which allows for the direct receipt of funding from HUD’s Comm unity Development Block Grant (CDBG), HOME Investment Partnerships (HOME), HOME American Rescue Plan (HOME-ARP), and Emergency Solutions Grants (ESG) Programs. As a requireme nt of the continued receipt of entitlement funding, each year the City must submit a CAPER to HUD. The CAPER provides a comprehensive summary of expenditures, activ ities, and accomplishments for each of the City’s HUD programs for the past fiscal year. This document also serves as a m echanism and opportu nity for public evaluation regarding the City’s progress in carryi ng out goals and objectives as stated in its FY 2020-24 Consolidated Plan (Con Plan) and FY 2021-22 Annual Action Plan (AAP). The CAPER is due to HUD no later than ninety (90) days after the end of the City’s FY 2021-22. This year, the CAPER is due to HUD no later than September 30, 2022.
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BACKGROUND:
The CAPER is a one-year evaluative summary doc ument which describes all eligible projects, programs and activities funded through CDBG, CDBG-CV, HOME, HOME-ARP, ESG and ESG- CV funds and their relationship to the City’s housing, homelessness, and community development priorities and needs. In accordance with the City’s adopted Citizen Participation Plan (CPP), HUD requires a minimum fifteen (15) day public comm ent period for the CAPER. In compliance with this mandate, a draft CAPER pu blic notice was published in The Californian and El Sol newspapers on September 3, 2022. The draft CAPER was also made available to the public on the City’s website, City libraries, City Hall, and at the Community Development Department office building and by request through mail or email. The public comment pe riod for the FY 2021-22 CAPER began on September 3, 2022, and ends on September 20, 2022. This City Council public hearing provides an additional opportunity for the public to provide City Council feedback regarding the draft CAPER and provide input on community development needs within the City.
A summary of all public comments received during the public comment period will be included in the City’s final CAPER submission to HUD.
DISCUSSION:
Entitlement Funding & Program Income (PI)
As mentioned above, the City is an entitle ment jurisdiction for CDBG, CDBG-CV, HOME, HOME-ARP, ESG and ESG-CV programs. HUD provi des annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low and moderate-income persons. The City also utilize s program income (PI) to further fund certain eligible activities on an annual basis. PI is the gross income received by the City that is generated from the use of CDBG and HOME funds. The table below represents entitlement funding and PI available for FY 2021-22 for CDBG, CDBG-CV, HOME, HOME-ARP, ESG and ESG-CV.
Funding Source Entitlement
Amount Program Income Total Funding
Available
CDBG $2,128,725 $144,572 $2,273,297
CDBG-CV $1,379,528* $0 $1,379,528*
HOME $803,851 $281,767 $1,085,618
HOME-ARP $145,938 $0 $145,938
ESG $172,631 $0 $172,631
ESG-CV $3,447,936* $0 $3,447,936*
Total $8,078,609 $426,339 $8,504,948
* Remaining funding from FY 2020-21
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The table below represents entitlement and PI expenditures incurred in FY 2021-22 for CDBG, CBDB -CV, HOME, HOME ARP, ESG and ESG-CV.
Funding Source Total Available
Funding
Total
Expenditures
CDBG $2,273,297 $892,489
CDBG-CV $1,379,528* $595,065
HOME $1,085,618 $1,028,321
HOME ARP $145,938 $ 0
ESG $172,631 $138,297
ESG-CV $3,447,936* $2,772,470
Total $8,504,948 $5,426,642
* Remaining funding from FY 2020-21
Community Development Block Grant (CDBG)
CDBG Entitlement Funds can be used to provide decent housing and a suitable living environment, and by expanding economic opportunities, principa lly for low- and moderate-income persons.
CDBG funds may be used for activities which include, but are not limited to:
Acquisition of real property
Relocation and demolition
Rehabilitation of residential and non-residential structures Construction of public facili ties and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes Public services (up to 15% of CDBG allocation)
Activities relating to energy conservation and renewable energy resources Provision of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities
In FY 2021-22, the City utilized CDBG funds to support public services, economic development, and Public Facilities. The following tables show the activities performed with CDBG Entitlement and CDBG-CV funds and their accomplishments for FY 2021-22. Due to the Covid-19 pandemic, implementation of some programs and activities have been delayed.
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CDBG Program
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas
Program
Administration
(20% Grant & PI)
Administration $466,487 $378,993 N/A
City of Salinas Grow Salinas Fund Economic
Development $14,501* $14,501 9 Businesses
City of Salinas Sherwood Recreation
Center – Phase 4
Public
Facility $1,100,000* $0 Public Facility
City of Salinas Hebron Recreation
Center
Public
Facility $1,406,613* $0 Public Facility
City of Salinas Chinatown
Improvements
Public
Facility $0 $0 Public Facility
First United
Methodist Church Kitchen Remodel Public
Facility $466,866* $28,694 Public Facility
Alisal Union
School District
Buckhorn Early
Childhood
Development Center
Public
Facility $968,000* $0 Public Facility
Interim Inc. Catalyst Apartments
Rehabilitation Housing $547,855* $373,063 5 Housing
Units
City of Salinas
Natividad Creek and
Closter Park
Restroom Renovation
Public
Facility $798,633* $4,344 Public Facility
Interim Inc. Sun Rose Apartments Housing $540,996* $65,171 1 Unit / 8
people
Girl Scouts of
California
Girl Scouts Alisal
Program Center Public Service $35,000 $27,722 221 Youth * Remaining funding from previous fiscal years
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CDBG-CV Program
(Remaining Funding from FY 2020-21)
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas
Program
Administration
(20% of Grant)
Administration $266,687 $126,330 N/A
City of Salinas
Housing
Information,
Referral Services
& Fair Housing
Public Service $358,478 $73,880 1204
Households
City of Salinas Grow Salinas
Fund
Economic
Development $0 $0 24
Businesses
City of Salinas
Economic
Development and
Technical
Assistance
Public Service $335,395 $113,428 240
Businesses
Downtown
Streets Inc.
Salinas Downtown
Streets Team Public Service $206,693 $189,846 113 Persons Eden Council
for Hope and
Opportunity
Fair Housing &
Tenant/Landlord
Services (CV)
Public Service $100,000 $91,582 171
Households
Unallocated
Funds
To be determined
(TBD) TBD $112,275 $0 N/A
Emergency Solutions Grant (ESG)
The ESG and ESG-CV programs utilize federal funds to support communities in providing street outreach, emergency shelter, rent al assistance, and related services. These programs provide resources for adults and families with children experiencing or are at-ris k of homelessness. The street outreach and emergency shelter program components are capped at 60% of the ESG total funding. This 60% cap was waived by HUD for ESG-CV funds. Additional uses of the ESG and ESG-CV are to provide homelessness prevention assistance to households who are at risk of homelessness, and assistance to rapidly re-house persons who are experiencing homelessness. ESG and ESG-CV funds provide a variet y of assistance, incl uding short-term or medium-term rental assistance, housing navigation and placement, and housing stability case management.
For FY 2021-22, the City recei ved a HUD ESG allocation of $172,631 and had available $3,447,936 in ESG-CV funds remaining from FY 2020-21. The following tables show the agency name, program funded, total number of unduplicated persons served, budgeted amount, and total FY 2021-22 expenditures.
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ESG Program
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas
Program
Administration
(7.5% of Grant)
Administration $15,056* $3,436 N/A
City of Salinas
Salinas Outreach
and Response
Team (SORT)
Public Service $79,000 $61,942 36 Persons
Central Coast
Center for
Independent
Living (CCCIL)
Rapid Re-
Housing and
Homeless
Prevention
Program
Public Service $55,176* $33,418 27 Persons
Bay Area
Community
Services (BACS)
Rapid Re-
Housing Public Service $80,684 $39,501 78 Persons
*Remaining funding from FY 2020-21
ESG – CV Program
(Remaining Funding from FY 2020-21)
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas
Program
Administration
(10% of Grant)
Administration $268,333 $215,133 NA
Step-Up on
Second Street
Inc.
Homekey Project Public Service $141,600 $141,600
1,657
Persons
University
Corporation at
Monterey Bay
Rapid Re-housing
(RRH) Program Public Service $221,949 $182,626
CCCIL
RRH, Outreach, and
Shelter Services Public Service $333,000 $328,576
Coalition of
Homeless
Services
Providers
Hotel / Motel
Vouchers and Case
Management
Public Service $49,8880 $49,880
Community
Homeless
Solutions
Chinatown
Navigation Center,
Shelter and Trailers
Operations
Public Service $780,290 $780,290
Downtown
Streets Team,
Inc.
Salinas Downtown
Streets Team - Street
Outreach
Public Service $450,000 $337,106
Interim, Inc. MCHOME Public Service $150,000 $109,095.00
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ESG – CV Program (Continued)
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas SORT & Sanitation
Stations Public Service $380,430 $209,265.53 36
Persons
City of Salinas Sprung Structure
and RV Trailers Public Facility $115,889 $115,889 Public Facility
Bay Area
Community
Services
SHARE Center
Operations Public Services $563,865 $303,010 78
Persons
HOME Investment Partnerships Program
The HOME Investment Partnerships Program s upports local housing strategies intended to increase home ownership and affordable housi ng opportunities for low and very low-income Americans. Eligible uses of f unds include tenant-based rental assistance; housing rehabilitation; assistance to homebuyers; and new construction of housing. HOME funding may also be used for site acquisition, site improvements, demolition, relocation, and other nece ssary and reasonable activities related to the development of non-luxury housing.
In FY 2021-22, the City used HOME grant funds for housing activities that expanded the supply of decent, safe, and affordable housing. The FY 2021-22 HOME housing development funds have not been allocated. It is the City’s intent to commit these funds to a project in the near future. The City conducted a Housing and Development Forum in February of 2022 to advertise and promote the availability of funds including HOME funding to produce affordable housing units.
HOME Program
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas Program
Administration Administration $299,539* $72,457 N/A
Monterey
County Housing
Development
Corporation
Parkside Manor
Phase I Housing $1,017,540* $955,864 6 Housing
Units
To be
committed in the
future
To be committed
on the future Housing $ 1,133,147 $0 TBD
*Funding from previous fiscal years.
HOME American Rescue Plan
The Allocation Plan for the HOME-ARP is being developed and will be submitted to HUD by the end of 2022. The City received an initial amount of $145,938.70 in January 2022 for administration and planning, out of the total funds $2,918,774. The remaining funds to become available once
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HUD approves the allocation plan and substa ntial amendment to the FY 2021-22 AAP. No expenditures accrued during FY 2021-22.
HOME-ARP Program
Agency Activity Name Funding
Category
Available
Funding Expenditures Outcome
City of Salinas
Program
Administration
(Awarded)
Administration $145,939 $0 N/A
City of Salinas
Program
Administration
(Pending HUD
approval)
Administration $291,877 $0 N/A
To be
committed in the
future
To be committed
on the future TBD $ 2,480,958 $0 TBD
CEQA CONSIDERATION:
The City of Salinas determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) per Guidelines Section 15378.
STRATEGIC PLAN INITIATIVE:
Funded activities and projects s upport the City of Salinas Strategic Plan 2022-2025 Goals and Strategies for Economic Development, Housing/Affordable Housing, and Effective and Culturally Responsive Government.
DEPARTMENT COORDINATION:
This agenda item originates from the City’s CDD Housing Di vision. However, other City departments including the City Attorney, Fina nce, Public Works and Library and Community Services have also contributed staff time and resources.
FISCAL AND SUSTAINABILITY IMPACT:
Funds are provided directly to the City by HUD and no matching City funds required.
ATTACHMENTS:
1. Resolution
2. Draft CAPER