23-11431 Pathways to Removing Obstacles to Housing Grant Application

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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: October 18, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager;
Mary Lanier, Interim Director of Community, Housing, and Economic Development;
Cassandra Searcy, Deputy Director of Housing and
Homelessness
Department: Community, Housing, and Economic Development (CED) Subject: Pathways to Removing Obstacles to Housing (PRO Housing) Grant Application
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Conduct a Public Hearing to obtain citizens’ comments on the draft Pathways to Removing Obstacles to Housing (PRO Housing) grant application to the Department of Housing and Urban Development (HUD); and

2. Authorize the City Manager, or designee, to take necessary steps to effectuate the submittal of the proposed Pathways to Removing Obstacles to Housing (PRO Housing) grant application, and related documents, to the Department of Housing and Urban Development (HUD).

Executive Summary
Staff requests to conduct a Public Hearing to provide the public an opportunity to comment on the proposed draft application for the Pathways to Removing Obstacles to Housing (Pro Housing) grant to the Department of Housing and Urban Development (HUD). The grant guidelines require applicants to publish their PRO Housing application with reasonable notice (minimum of 15 days) for public comment, at least one public hearing, and ongoing public access to information about the use of grant funds. If awarded, the City will serve as lead entity and fiscal agent, with the Housing Authority of the County of San Bernardino (HACSB) as the sub-recipient for the Arrowhead Grove project to develop affordable housing.
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Background
On September 7, 2023, HUD issued a Notice of Funding Opportunity (NOFO) under the authority of the Consolidated Appropriations Act, 2023 (Public Law 117-328, approved December 29, 2022) (Appropriations Act), which appropriates $85 million for competitive grant funding for the identification and removal of barriers to affordable housing production and preservation. Congress has directed HUD to undertake a competitive process using the Community Development Block Grant (CDBG) statutory and regulatory framework.

Eligible applicants include local governments, and funds may be used for the following:
•To further develop, evaluate, and implement housing policy plans; •Improve housing strategies;
•Facilitate affordable housing production and preservation; and •Respond to an acute demand for housing affordable to households with incomes below 100 percent of the area median income.

The City notified the public via published postings in the San Bernardino Sun (English) on October 3, 2023, and El Chicano (Spanish) on October 5, 2023, for feedback and comments on the draft application, available for review on the City’s website for a 15- day period. Feedback from the public will be assessed and incorporated into the execution of the grant, if awarded. The deadline to submit a final draft of the grant application is October 30, 2023.

Discussion
Affordable housing is scarce in California and the City of San Bernardino is no exception. Historically, the City of San Bernardino has faced overwhelming housing and homelessness challenges, further impacted by the current cost-to-income ratio of

12.9, where buying a home requires nearly thirteen times the median household income. Obtaining the PRO Housing grant funds will assist the City in alleviating obstacles to housing.

The City’s 2023-2024 Annual Action Plan to HUD addresses the demand for housing with the following goals:
•Fair Housing
•Expand Homeownership Opportunities
•New Affordable Housing Construction or Rehabilitation
•Improve Facilities and Infrastructure
To realize these goals, the City leans into well-established partnerships that assist in expanding the affordable housing inventory through new construction or redevelopment. In particular, the partnership with the Housing Authority of the County of San Bernardino (HACSB) has been instrumental in developing several affordable housing projects throughout the City: Valencia Vista (Phase 1: 76 units completed in 2016), Olive Meadow (Phase 2: 62 units completed in 2017), and Crestview Terrance (Phase 3: 184 units completed in 2021). Currently, HACSB is developing Phase 4:
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Arrowhead Grove, a 92-unit mixed-use, mixed-income project with an on-site Community Center where healthcare providers and other community-based services will be accessible to residents and the surrounding community.

Staff recommends approval for the City to apply to HUD for the PRO Housing grant as the lead entity and fiscal agent, with the HACSB as the sub-recipient for the Arrowhead Grove project. The requested amount in grant funds is approximately $5.3 million, which is inclusive of administrative costs and project expenditures. The Arrowhead Grove housing units will be designed to adhere to accessibility standards of the Americans with Disabilities Act, ensuring that individuals with disabilities can live comfortably and safely. In the face of a growing affordable housing crisis, Arrowhead Grove will help ensure adequate housing for all residents, irrespective of their economic standing.

This proposal aligns with California’s Housing Element Law, which mandates local governments to adequately plan for the housing needs of everyone in their community.

By developing the current Housing Element plan, the city must adopt an expedited compliant housing plan by February 7, 2024, and adjust the local density bonus ordinance to encourage projects to incorporate affordable dwelling units. Additionally, the City agreed to increase housing construction under the provisions of the Housing Element Law.

This effort also delivers a focused approach toward mitigating the housing challenges prevalent in the city and moves to create an equitable and sustainable urban living environment to positively impact one of the most disadvantaged communities in the state.
2021-2025 Strategic Targets and Goals
This request aligns with Key Target No. 3: Improved Quality of Life by reducing barriers to affordable housing that includes creating units for low-income residents.

Fiscal Impact
There is no fiscal impact to the General Fund associated with this report.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

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Synopsis of Previous Council Actions:

No previous Council actions.

Mayor and City CouncilOctober 18, 2023

Mayor and City Council
October 18, 2023