Agenda Item: 15
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: May 10, 2022
SUBJECT: 2022-23 ANNUAL ACTION PLAN AND FOURTH SUBSTANTIAL AMENDMENT TO THE 2020-21 ANNUAL ACTION PLAN
DEPARTMENT: Community Development
PRESENTER: Michael Villegas
RECOMMENDED ACTION
City Council approve the 2022-23 Annual Action Plan and fourth Substantial Amendment to the 2020-21 Annual Action Plan for the Community Development Block Grant and Home Investment Partnerships Act Programs.
BACKGROUND
Each year, the City of Santa Clarita (City) receives approximately $1.4 million in Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The City also receives approximately $500,000 in Home Investment Partnerships Act (HOME) funds annually from HUD. All CDBG and HOME funds allocated must be used primarily to assist low- and moderate-income residents in the areas of decent and affordable housing, a suitable living environment, and expanded economic opportunities.
In addition to its entitlement funding, in March 2020, through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the City received an initial allocation of $855,759 in CDBG funds to be used for activities which prevent, prepare for, and respond to the Coronavirus (CDBG-CV1). In November 2020, the City was notified of another allocation of $1,396,245 in CARES Act funds (CDBG-CV3). These funds were allocated through a Substantial Amendment (SA) to the 2020-21 Annual Action Plan (AAP) and approved by City Council on May 11, 2021.
In order to receive funding, the City is required to submit a Consolidated Plan (Con Plan) at least once every five years. The current Con Plan addresses the five-year period of 2019-20 to 2023- 24 and was adopted by the City Council on April 23, 2019. However, on June 27, 2020, the City Council approved an SA to the Con Plan, adding a fifth priority related to the COVID-19 pandemic.
The current Con Plan priorities are:
1. Improve, Maintain, and Expand Affordable Housing
2. Provide Supportive Human Services
3. Improve and Expand Facilities and Infrastructure
4. Provide Timely Assistance to Those Impacted by the COVID-19 Pandemic
5. Planning and Administration
The City is also required to submit an AAP each year that outlines the specific ways the City will spend its funding. Each AAP contains service goals and an explanation of how the proposed activities will meet the Con Plan priorities. If changes which meet certain criteria are made to an AAP after adoption, those changes must be made in a SA.
2022-23 ENTITLEMENT ALLOCATIONS
HUD has not released the amount of the 2022-23 CDBG Entitlement funding allocations. As directed in HUD Notice CPD 22-05, the City will develop the 2022-23 AAP using an estimated Entitlement amount equal to the Entitlement for the 2021-22 program year. In addition, a contingency strategy has been developed to guide the actual allocation of funds once the Entitlement amounts are released. In line with this guidance, the following funding amounts are based on the City’s current 2021-22 allocation amounts and are subject to change pending the release of actual Entitlement allocations by HUD.
• CDBG Entitlement Funds: The City estimates its 2022-23 Entitlement allocation will be approximately $1,494,849. The City has also identified $12,476 in prior year savings.
• HOME Funds: The City estimates its 2022-23 HOME allocation will be approximately $527,899. These funds are allocated through the 2022-23 AAP.
SUBSTANTIAL AMENDMENT TO THE 2020-21 AAP
Because the $12,476 in prior year savings, and $594,534 of the 2022-23 Entitlement funds are being allocated to existing projects, an SA to the 2020-21 AAP is required. This SA modifies the previously approved AAP for the program year in which the project was originally approved to include any additional funding. Effectively, the 2020-21 AAP is being amended as part of the City Council action to include additional funding for the West Creek Inclusionary Park Project and the Shelter Project.
DEVELOPMENT PROCESS
To develop the 2022-23 Plan and the SA to the 2020-21 Plan, the City contracted with the firm of Veronica Tam and Associates. In December 2021, a Community Needs Assessment (CNA) process was conducted to determine the current needs within each Con Plan priority area, with the results being presented to the City Council on February 22, 2022. Outreach efforts for the CNA included a press release issued to the local news agencies, a direct email to all current City CDBG service providers, and a link for the survey was posted on the City’s website and sent to City staff. In total, 218 individuals responded to the survey. Also, in December 2021, a Notice of Funding Availability was released for non-profit, community- based organizations to submit
funding applications for programs and services for the low- and moderate-income community, using CDBG Entitlement funds. A total of 77 organizations were notified of the opportunity to apply for funding for the 2022-23 program year.
Nine organizations submitted applications requesting funding for 13 programs and were evaluated by City staff. Of the 13 programs submitted, a total of 12 are recommended for funding in 2022-23. Eight programs are recommended for funding in 2022-23, using CDBG Entitlement funds. In addition, four programs, which are successfully providing services for the 2021-22 program year using CDBG-CV funds, are recommended for CDBG-CV funding in 2022-23.
It is also recommended that 2022-23 CDBG Entitlement funds be used to provide additional funding to two existing 2020-21 projects, the West Creek Inclusionary Park and the Shelter Project, and that HOME funds be allocated toward the Home Project, which will be used for land acquisition for a future affordable housing project. Additionally, $21,708 in unused 2021-22 Entitlement funds will be allocated to the Shelter Project.
All proposed funding is detailed on the attached 2022-23 Funding Recommendations document.
As required by HUD, information regarding the proposed funding was available for public review and comment for a 30-day period ending May 2, 2022. No comments from the public were received. The approved final Annual Action Plan and Substantial Amendment must be transmitted to HUD by July 11, 2022. In accordance with the HUD Notice issued March 25, 2022, for FY 2022, HUD will not execute a grant agreement with a grantee until HUD has received an AAP (or an amended AAP) which incorporates the actual allocation amounts a grantee is to receive for FY 2022. All funding is contingent upon completion of a National Environmental Policy Act environmental review.
The 2022-23 AAP and the SA to the 2020-21 AAP can be found in the City Clerk’s Reading File.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
There are no fiscal impacts to the General Fund associated with this item.
ATTACHMENTS
Public Hearing Notice
2022-23 Funding Recommendations
Draft Contingency Strategy
2022-23 Draft Action Plan (available in the City Clerk's Reading File) Fourth Substantial Amendment to the 2020-21 AAP (available in the City Clerk's Reading File)