DATE: SEPTEMBER 20, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
THROUGH ROD POWELL, PLANNING MANAGER
PREPARED BY: CRISTINA GONZALEZ
TITLE: Submission of Consolidated Annual Performance and Evaluation Report for FY 2021-22 to THE 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 Community Development Block Grant (CDBG), CDBG- CARES Act COVID-19 (CDBG-CV), HOME Investment Partnerships (HOME), HOME American Rescue Plan (HOME-ARP), and Emergency Solutions Grants (ESG), and ESG CARES Act COVID-19 (ESG-CV) Programs. As a requirement 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, activities, and accomplishments for each of the City’s HUD programs for the past fiscal year. This document also serves as a mechanism and opportunity for public evaluation regarding the City’s progress in carrying 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.
BACKGROUND:
The CAPER is a one-year evaluative summary document 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 comment period for the CAPER. In compliance with this mandate, a draft CAPER public 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, at City libraries, City Hall, and the Community Development Department office, and by request through mail or email. The public comment period 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)
The City is an entitlement jurisdiction for CDBG, CDBG-CV, HOME, HOME-ARP, ESG and ESG-CV programs. HUD provides annual grants on a formula basis to entitled cities and counties to develop 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 utilizes 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 total 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
The table below represents total entitlement and PI expenditures incurred in FY 2021-22 for CDBG, CDBG-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 may be used to provide decent housing, support suitable living conditions, and expand economic opportunities, principally 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 facilities 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.
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
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, rental assistance, and related services. These programs provide resources for adults and families with children experiencing or are at-risk 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 variety of assistance, including short-term or medium-term rental assistance, housing navigation and placement, and housing stability case management.
For FY 2021-22, the City received a HUD ESG allocation of $172,631 and also had $3,447,936 of remaining ESG-CV funds 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.
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
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 supports local housing strategies intended to increase home ownership and affordable housing opportunities for low- and very low-income Americans. Eligible uses of funds 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 necessary 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 yet 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 currently being developed and will be submitted to HUD by the end of 2022. To assist in development of the plan, 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. Remaining funds will become available once HUD approves the City’s Allocation Plan and executes the required substantial amendment to the FY 2021-22 AAP. There were no HOME ARP 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 support 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 Division. However, other City departments including the City Attorney, Finance, 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:
Resolution
Draft CAPER
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