March 19, 2024 Item #6
City Council
Meeting
Item #6 - RTC# 24-188
Public Hearing #1: FY24/25
DRAFT Annual Action Plan for the
Use of Federal Housing and
1852 Urban Development Grant Funds
THE MISSION CIT
March 19, 2024
1 Federal Funding Programs
• HOME: The HOME Investment Partnerships Program
- Eligible Uses:
• Providing direct rental assistance and security deposits to low-income people • Building, buying, and/or rehabilitating affordable housing for rent or homeownership
• Flexible; can be used as grants, direct loans, loan guarantees or other forms of credit enhancements
2 POST MEETING MATERIAL
1 March 19, 2024 Item #6
Federal Funding Programs
• CDBG: Community Development Block Grants
- Eligible Uses:
• Acquisition of Real Property
• Construction of Public Facilities and Improvements
• Public Services (limited to 15% of Grant)
• Rehabilitation of Residential and Non-Residential Structures • Activities related to Energy Conservation and Renewable Energy Sources • Relocation and Demolition
• Economic Development
3 • Planning/Administration for Program (limited to 20% of allocation) 3 Federal Funding Programs
• CDBG: Community Development Block Grants
- National Objectives: (Must meet at least 1)
1. Benefit low-and moderate-income persons (LMI)
2. Prevent or eliminate slum or blight
3. Meet urgent community development needs
- Eligible Beneficiaries:
Not less than 70% of CDBG funds must be used for activities that benefit low- and moderate-income persons.
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March 19, 2024 Item #6
Federal Funding Cycle
2020-2025 Consolidated Plan
FY 2024-2025 Annual Action Plan
FY 2023-2024 Annual Action Plan V
FY 2022-2023 Annual Action Plan V
FY 2021-2022 Annual Action Plan V
FY 2020-2021 Annual Action Plan V
5 Annual Action Plan
• The FY24/25 DRAFT Annual Action Plan details programming recommendations for federal Housing and Urban
Development funds for the upcoming 2024-2025 program year. • HUD requires that the City hold two public hearings to attain public comment on staff recommendations; this is the first hearing. • A 30-day public comment period on the FINAL version of the Annual Action Plan will begin on April 5th and ends on the final public hearing on May 7th prior to the submission of the Plan to HUD. 6 3
March 19, 2024 Item #6
Annual Action Plan
• The City typically receives the entitlement amounts in March, yet due to the Federal budget process, announcements have been delayed. • FY 23/24 CDBG entitlement was $1,041,762
• FY 23/24 HOME entitlement was $437,58
2024-2025 Annual Action Plan
Estimated Resources
CDBG HOME
Estimated Resources Estimated Resources
$1,830,873 $1,025,000
• $1,034,553 • $437,588
• 24/25 Allocation • 24/25 Allocation
• $15,574 • $577,412
• Funds from prior years • Funds from prior years
• $780,746 • $10,000
• Program Income • Program Income
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March 19, 2024 Item #6
2024-2025 Proposed Commitment Of CDBG Funds
• Affordable Housing
CDBG FUNDS - $1,830,873 - $100,000 Capital Improvements $226,910 - $500,000 NCIP Home Repair Loan Program
12% $823,963
- $73,963 NCIP Home Repair Activity Delivery
45%
- $150,000 Rebuilding Together Grant Program
• Public Services
S600,000
33% $180,000 • Public Service Facility Improvements
10% - Capital Improvements to public facilities that
serve low-income residents.
•Affordable Housing
• Public Services
• Administration
= Public Facility Improvements
•Administration - Approximately 20% of our annual allocation and next year's estimated program income. 9
Public Services
Bill Wilson Center - Counseling & Family Therapy $30,000 The Health Trust - Meals on Wheels $30,000
CDBG Funds HOPE Services - Educational Services $30,000 Silicon Valley Independent Living Center (SVILC) $30,000 Senior Adult Legal Assistance (SALA) - Legal Assistance $30,000 Heart of the Valley - Support & Transportation Services $30,000 Total $180,000
Project Sentinel - Landlord/Tenant Mediation Services $51,264 General Funds Catholic Charities Ombudsman - Ombudsman Prog. $15,000 United Way 211 Services $5,000
Total $71,264
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5 March 19, 2024 Item #6
Capital Projects
CDBG Funds ADA Curb Cuts (Public Facilities) $600,000
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Affordable Housing Programs
CIP for Affordable Housing - Liberty Tower $100,000
CDBG Funds NCIP Activity Delivery Costs $73,963
NCIP Loans and Grants $500,000
Rebuilding Together - Minor Repair Program $150,000
Total: $823,963
TBRA Rents and Deposits $905,604
HOME Funds Community Housing Development Org. (CHDO) Set-aside $65,638 Total: $971,242
Affordable Housing Fund 165 TBRA Administration & Case Management $160,697 Housing Successor Fund 169 TBRA Administration & Case Management $140,000 12 12
6 Item #6
March 19, 2024
2024-2025 Proposed Commitment Of HOME Funds
HOME FUNDS - $1,025,000 •Tenant Based Rental Assistance - Assisting homeless households to acquire
housing through rent subsidies and rental
_ $31,561
$22,197 3% deposits.
2%
O • Fair Housing Services
- Promote and address Fair Housing.
• Administration
_ $971,242 - Approximately 10% of our annual allocation 95% and 10% of the estimated program income for
program year 24/25.
TBRA • Fair Housing Administration & Planning
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Overview
Contingency Language for CDBG
Higher than expected Lower than expected
If the City receives more Program Income than If the City receives less Program Income expected, the excess amount will be and/or prior year resources are lower than programmed to address the need for estimated, the City Council would decide, or Affordable Housing. The funds may be delegate to the City Manager to decide, which activities would not be funded.
on the source of the income.
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7 Item #6
March 19, 2024
Overview
Contingency Language for HOME
Higher than expected Lower than expected
If the City receives more Program Income If the City receives less Program Income and/or prior year resources than estimated, and/or prior year resources than estimated, the excess funds shall be allocated to the TBRA funding for TBRA will be reduced after the program after the City's portion for City's portion for administration is set aside. administration is set aside.
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HUD Timeliness Test
• Each year HUD conducts a timeliness expenditure test for CDBG. • In recent years, the City has fallen behind in CDBG capital spending due to a pandemic-related drop in demand for the NCIP home repair program.
• In April 2022, the City awarded over $2.4M to six capital projects.
These projects moved slower than anticipated.
• In FY 24/25 staff are proposing a $600,000 ADA curb ramp project and increases to the NCIP home repair program to speed spending. • Staff will meet with HUD in spring 2024 to discuss additional strategies to ensure timeliness. 16
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March 19, 2024 Item #6
Annual Action Plan Schedule
• Public Hearing #1: March 19, 2024
• HUD finalizes allocation April/May 2024
• Public Hearing #2: May 7, 2024
• Submit Annual Action Plan to HUD: May 15, 2024
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Council Action
Recommendation
1. Approve the 2024-2025 DRAFT AAP and direct staff to include public comments in the final version to be presented to the City Council on May 7, 2024.
2. Delegate authority to the City Manager or designee to execute all agreements and amendments that exceed the City's $250,000 threshold for federal and local funding that is allocated through the City Council's adoption of the 2024-2025 Annual Action Plan in final forms approved by the City Attorney.
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9 Item #6
March 19, 2024
City Council
Meeting
Item #6 - RTC# 24-188
Public Hearing #1: FY24/25
CITY OF DRAFT Annual Action Plan for the
Use of Federal Housing and
1852 Urban Development Grant Funds
THE MISSION CITY
March 19, 2024
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