Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: April 25, 2023
SUBJECT: 2023-24 ANNUAL ACTION PLAN
DEPARTMENT: Community Development
PRESENTER: Tracy Sullivan
RECOMMENDED ACTION
City Council approve the 2023-24 Annual Action Plan for the Community Development Block Grant and Home Investment Partnerships Act Programs.
BACKGROUND
The City of Santa Clarita (City) receives an annual allocation of Community Development Block Grant (CDBG) Entitlement funds from the U.S. Department of Housing and Urban Development (HUD). The City also receives an annual allocation of Home Investment Partnerships Act (HOME) Entitlement funds 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 Act, the City received an initial allocation of $855,759 in CDBG funds to be used for activities that prevent, prepare for, and respond to the Coronavirus (CDBG-CV). In November 2020, the City was notified of an additional allocation of $1,396,245 in funds, bringing the total amount of CDBG-CV funds to $2,252,004. These funds were allocated through a Substantial Amendment (SA) to the 2020-21 Annual Action Plan and approved by City Council on May 11, 2021.
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 Annual Action Plan (AAP) each year that outlines the specific ways the City will spend its funding. Each AAP contains service goals and explains how the proposed activities will meet the Con Plan priorities. If changes that meet certain criteria are made to an AAP after adoption, those changes must be made in an SA.
2023-24 ENTITLEMENT ALLOCATIONS
HUD informed the City of its CDBG allocation for FY 2023-24, which totals $1,504,349. The City also identified $370,474 in prior year savings, which can be added to the AAP. Finally, the City’s 2023-24 HOME entitlement allocation is $634,974.
DEVELOPMENT PROCESS
To develop the 2023-24 AAP, the City contracted with the Veronica Tam and Associates firm. In December 2022, a Community Needs Assessment (CNA) process was conducted to determine the current needs within each Con Plan priority area. The results were presented to the City Council on February 28, 2023. 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, a social media campaign, posting of flyers at community centers and libraries, direct distribution to a targeted community, and a link for the survey was posted on the City’s website and sent to City staff. In total, 310 individuals responded to the survey. Also, in December 2022, 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 200 organizations were notified of the opportunity to apply for funding for the 2023-24 program year.
For the 2023-24 program year, 13 organizations submitted applications requesting funding for 18 programs. A panel of City staff evaluated these applications. Of the 18 programs, a total of 15 are recommended for funding. Nine programs are recommended for funding using CDBG Entitlement funds, and six programs are recommended for funding using CDBG-CV funds.
The City is required to allocate 65% of its CDBG grant award to capital projects/programs. Of the 15 programs recommended for funding, two meet the criteria for capital programs. The City is also recommending capital funding for park improvements that remove architectural barriers and create greater inclusivity for qualifying populations including severely disabled adults and the elderly. These improvements will be similar to the improvements recently made at Canyon Country Park and West Creek Park under the CDBG program. The park that is anticipated to be included as part of this Annual Action Plan is Valencia Glen Park.
The HOME entitlement allocation will be committed to the Home Project, which will be used for potential land acquisition for a future affordable housing project or other partnership opportunities.
All proposed funding is detailed in the attached 2023-24 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 April 25, 2023. The approved final Annual Action Plan must be transmitted to HUD by May 17, 2023. All funding is contingent upon completing a National Environmental Policy Act environmental review.
The 2023-24 AAP can be found in the City Clerk’s Reading File.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The funding to support the recommended actions is provided by HUD, has no impact on the City's General Fund, and will be appropriated as part of the Fiscal Year 23-24 Annual Budget.
ATTACHMENTS
Public Hearing Notice
CDGB, CDBG-CV and Home Funding Rec 23-24
23-24 Draft Action Plan (available in Clerk's Reading File)