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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: May 1, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya , City Manager;
Gabriel Elliott, Director of Community Development and
Housing
Department: Community, Housing, & Economic Development (CED) Subject: Proposed Fiscal Year 2024-25 Annual Action Plan for the Community Development Block Grant, HOME
Investment Partnership and Emergency Solutions
Grant Programs (All Wards)
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 proposed Fiscal Year 2024-25 Annual Action Plan for the Community Development Block Grant, HOME Investment Partnership, and Emergency Solutions Grant Programs; and
2. Consider any necessary changes to the proposed Fiscal Year 2024-25 Annual Action Plan and direct staff to return on May 15, 2024, with the final Annual Action Plan for consideration prior to submittal to the United States Department of Housing and Urban Development.
3. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the submittal of the HUD Fiscal Year 2024-2025 Annual Action Plan and certification to HUD.
Executive Summary
The United States Department of Housing and Urban Development (HUD) provides Community Development Block Grant (CDBG), Emergency Solution Grant (ESG), and HOME Investment Partnership Program (HOME) funds annually to the City based on a formula calculation to help develop viable urban communities improving the lives of low to moderate-income residents. Funds are also used to create economic opportunities, provide assistance to homeless individuals and families, and develop 1 9
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affordable housing. Per HUD regulations, the City seeks to conduct a Public Hearing to collect resident views on housing and community development needs.
Background
The City of San Bernardino (City) is entitled to received Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG) funds from the United States Department of Housing and Urban Development (HUD). The funds are made available to provide decent housing, suitable living environments, and expanded economic opportunities, principally for low and moderate-income persons. Each year, the City prepares an Annual Action Plan (Plan), which describes how the City will spend its federal CDBG, HOME, and ESG funds that it expects to receive from the HUD.
This is the fifth year of the City’s Consolidated Plan (2020-25), which is a strategic framework for the City’s housing and community development goals over a five-year period. These needs were first identified in the City’s Five-Year Consolidated Plan, which sets the vision for allocating federal resources to housing, homelessness, community development, and special needs in the community.
The Fiscal Year 2024-25 (FY2024-25) HUD Annual Action Plan (AAP) is intended to recognize and accept the new FY2024-25 HUD allocation of CDBG, HOME, and ESG funding and allocate these funds to activities that will address the strategies and objectives identified in the City’s 2020-25 HUD Consolidated Plan that was approved by the City Council on April 15, 2020.
Discussion
To receive federal funding from HUD, the City must submit an AAP that identifies the proposed activities that will be used to address the priority needs and specific goals identified in the City’s 2020-2025 (Five-Year) Consolidated Plan.
For FY2024-25, the City anticipates receiving approximately $2,942,853 in CDBG funds, $1,460,93 in HOME funds, and $273,557 in ESG funds. Subject to limitations imposed by federal regulations, HOME, ESG, or CDBG funds may be used for homeowner assistance, emergency shelter, homelessness prevention, housing preservation, economic development, capital improvements, public services, housing development, fair housing, and program management.
Community Development Block Grant (CDBG)
The estimated allocation for CDBG FY2024-25 is $2,942,853, of which $588,570 is allowed for program administration. The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally for persons of low and moderate-income.
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During the application period for CDBG, the City received 15 applications from the community. Staff recommends that both the San Bernardino Police Department and the Inland Fair Housing Mediation Board receive grant funding for their respective programs. The San Bernardino Police Department would develop a Quality-of-Life Team that would have a significant impact on interaction with the homeless population in the City. The Inland Fair Housing organization will have a significant impact on the LMI population by assisting with housing and with several workshops for educating the community. A full list of all applicants can be found in attachment 3.
The table below shows the proposed funding activities for CDBG:
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROPOSED FUNDING ACTIVITIES AMOUNT
24/25 Grant Fund Allocation $2,900,000
*Reprogrammed Funds
(Reallocated Funds from FY 23/24) $520,000
Program Income $0
Total Available Funds for FY24/25 $3,420,000
Administration (maximum available)
•Expenses incurred in managing and overseeing the CDBG
program, including staff salaries, office space, equipment, training, and other operational expenses. These costs ensure the effective implementation and compliance of programs, including application processing, monitoring, reporting, and compliance with federal regulations.
$580,000
Section 108 Repayment
•The City is required to fund. This is repayment of the loan guarantee program that allows access to long-term financing for economic development, housing rehabilitation, public facilities, and large-scale physical development.
$745,612
Subtotal $1,325,612
Public Service Programs
Fair Housing (IFHMB)
•The City is required to fund. Program that includes intake, investigation, mediation, and enforcement activities. Also utilizing landlord tenant programs and workshops available for tenants. $80,000
San Bernardino Police Department
•To create a Quality-of-Life team to focus on the living conditions of children and youth living in poverty. Funds will be used to hire a Management Analyst for CDBG monitoring and tracking along with the purchase of specialized vehicles for client transportation. $355,000
Subtotal $435,000
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Public Facilities Projects
El Sol
•A recreation and wellness center serving about 5,000 in a program year, established to serve as a hub for health, educational and cultural enrichment for low income and/or minorities.
$1,000,000
Public Improvement Projects
•CDBG allows for a wide range of public improvement projects aimed at benefiting low- and moderate-income communities.
These projects typically focus on improving infrastructure, facilities, and services within eligible areas (i.e. street/sidewalk improvement, Public Facility upgrades, and public safety enhancements)
$659,388
Subtotal $1,659,388
Total Funds Allocated $3,420,000
Jurisdictions receiving CDBG funds must use the funds to meet one of the three national objectives:
1. To benefit low and moderate-income persons;
2. To aid in the prevention or elimination of slums and blight; or
3. To meet community development needs having a particular urgency.
The City typically requests the maximum available funding allocation allowed for Administration, which includes staff salaries, office space, equipment, training, and other operational expenses. Additionally, the City is required to fund Section 108 Repayment ($782,760) and Fair Housing services. For Public Services, the CDBG requirement restricts funding to 15% of the total CDBG allocation, or $580,000.
HOME Grant
The estimated allocation for HOME for FY2024-25 is $1,460,936 with $146,094 allowed for program administration. The objectives of the program are:
•To strengthen the ability of state and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing. •To provide assistance to participating jurisdictions for development of affordable housing.
•To strengthen partnerships among all levels of government and the private sector.
The table below shows the proposed funding activities for HOME:
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HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)
PROPOSED FUNDING ACTIVITIES AMOUNT
24/25 Grant Fund Allocation $1,460,936
*Reprogrammed Funds
(Reallocated Funds from FY 23/24) $0
Program Income $0
Total Available Funds for FY24/25 $1,460,936
Administration (maximum available)
•Expenses incurred in managing and overseeing the ESG program, including staff salaries, office space, equipment, training, and other operational expenses. These costs ensure the effective
implementation and compliance of programs, including application processing, monitoring, reporting, and compliance with federal regulations.
$146,094
Subtotal $146,094
Housing Programs/Projects
Affordable Housing Projects
•Designed to fund a variety of affordable housing initiatives, primarily for low-income households. HOME funds support a range of activities aimed at increasing the supply of decent, safe, and affordable housing for individuals and families in need.
$394,842
NPHS – Owner Occupied Rehabilitation Program
•Focuses on assisting low-income homeowners in repairing and rehabilitating their homes.
$920,000
Subtotal $1,314,842
Total Funds Allocated $1,460,936
In program year 2023/2024 the Owner-Occupied Rehabilitation Program was paused due to Housing staff transitions. Staff recommends providing HOME funding to Neighborhood Partnership Housing Services (NPHS) for $920,000. This will allow for a potential 20 households to be served, which will make up for the 2023/2024 shortfall.
NPHS has a long-standing positive partnership with the City and has demonstrated responsible monitoring and program management.
Emergency Solutions Grant (ESG)
The City’s total allocation for FY2024-25 ESG is $273,557, of which $20,516 is allowed for administration. The remaining $253,040 can be directed towards programs that provide:
1. Engagement of individuals and families living on the streets.
2. Improvement of homeless shelters and operation of shelters.
3. Rapid re-housing of homeless persons, and;
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4. Homelessness prevention for families and individuals at risk of becoming homeless.
The table below shows the proposed funding activities for ESG:
EMERGENCY SOLUTIONS GRANT (ESG)
PROPOSED FUNDING ACTIVITIES AMOUNT
24/25 Grant Fund Allocation $273,557
*Reprogrammed Funds
(Reallocated Funds from FY 23/24) $80,500
Program Income $0
Total Available Funds for FY24/25 $354,057
Administration (maximum available)
•Expenses incurred in managing and overseeing the ESG program, including staff salaries, office space, equipment, training, and other operational expenses. These costs ensure the effective
implementation and compliance of programs, including application processing, monitoring, reporting, and compliance with federal regulations.
$20,517
Subtotal $20,517
Homelessness Assistance
Salvation Army Emergency Shelter
•Emergency shelter funds for housing, homelessness, and long-term stability for residents experiencing hardship.
$298,540
Salvation Army HMIS
•Homeless Management Information System ongoing cost to ensure effective management of homeless services data.
$35,000
Subtotal $333,540
Total Funds Allocated $354,057
Additional resources, such as program income from CDBG and HOME, may become available and be allocated to eligible CDBG and HOME activities. Any activities identified to receive additional CDBG or HOME resources will be brought to the Council for approval. The Housing division will return on May 15, 2024, with the final proposed FY2024-25 Action Plan with incorporated public comment and funding recommendations.
2021-2025 Strategic Targets and Goals
The proposed Action Plan will meet Key Target No. 3: Improved Quality of Life by providing infrastructure, fair housing, and business assistance in the City. This funding will allow the City to continue to fund programs that preserve and improve the quality of the housing stock, promote home ownership, assist in small business start-ups and expansions, fund infrastructure projects, and maintain a working relationship with the 1 9
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federal government.
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:
1. Conduct a Public Hearing to obtain citizens’ comments on the proposed Fiscal Year 2024-25 Annual Action Plan for the Community Development Block Grant, HOME Investment Partnership, and Emergency Solutions Grant Programs; and
2. Consider any necessary changes to the proposed Fiscal Year 2024-25 Annual Action Plan and direct staff to return on May 15, 2024, with the final Annual Action Plan for consideration prior to submittal to the United States Department of Housing and Urban Development.
3. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the submittal of the HUD Fiscal Year 2024-2025 Annual Action Plan and certification to HUD.
Attachments
Attachment 1 Consolidated Plan
Attachment 2 Proposed FY 2024/2025 Annual Action Plan
Attachment 3 Proposed FY 2024/2025 Annual Action Plan Application Review Attachment 4 Annual Action Plan Presentation
Ward:
All Wards
Synopsis of Previous Council Actions:
April 15, 2020 Mayor and City Council approved the City’s Consolidated Plan for 2020-2025.