City Council
Report
City Council Meeting: April 26, 2022
Agenda Item: 3.A
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To: Mayor and City Council
From: Andy Agle, Director, Community Services Department, Housing and Human Services
Subject: Approval of the Proposed FY 2022-23 One-Year Action Plan Allocating Federal Community Development Block Grant (CDBG) and HOME Investment Partnerships Act Program (HOME) Entitlement Grant Fund Recommended Action
Staff recommends that the City Council:
1. Approve the Proposed 2022-23 Annual CDBG and HOME Action Plan (Attachment A).
2. Authorize the City Manager to submit all documents required to receive the City’s annual Community Development Block Grant (CDBG) and Home Investment Partnerships Act (HOME) entitlement grant funds to the U.S. Department of Housing and Urban Development (HUD).
Summary
Santa Monica is a longtime recipient of Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) entitlement funds provided through the United States Department of Housing and Urban Development (HUD). The City must submit a Council-approved Annual Action Plan to HUD to demonstrate that funds will be expended in a manner consistent with the community development strategy outlined in the City-approved 2020-24 Consolidated Plan.
The Proposed FY 2022-23 Annual Action Plan (Attachment A) allocates an estimated $1.97 million in CDBG and HOME funds to activities that align with the priority needs identified in the 2020-24 Consolidated Plan and advances Council’s priorities to Address 2 of 7
Homelessness, promote a Clean and Safe Santa Monica, and cultivate an Equitable and Inclusive Economic Recovery. Funds would support a trio of capital improvement projects in an eligible park, continued tenant-based rental assistance to qualifying households, and ongoing community-based services to low-income individuals and people experiencing homelessness.
Discussion
The CDBG program dates to the Ford Administration and is designed to benefit the residents of eligible low- and moderate-income neighborhoods. The HOME Program was enacted in 1990 and is the largest Federal block grant to state and local governments designed exclusively to support low-income households. Activities eligible for funding include community facilities and improvements, preservation of affordable housing, public services, economic development, and program administration.
The City’s current FY 2020-2024 Consolidated Plan, originally approved by Council on June 9, 2020 (Attachment B) and later amended to incorporate an additional onetime allocation of CDBG CARES Act funding (CDBG-CV), identifies high-priority community needs, establishes housing and community development strategies, and institutes a set of objectives to guide Federal funding decisions throughout its five program years. Priority needs were identified through the Consolidated Plan’s Needs Assessment and Market Analysis, which incorporated data from the Census and the American Community Survey; local information from City documents such as the Housing Element, Action Plan to Address Homelessness in Santa Monica, and Assessment of Fair Housing Plan; and input from the public, City commissions, City staff, partner organizations, online survey responses, and interviews with key community stakeholders.
Priority needs identified in the Consolidated Plan are as follows:
• Expand and Improve Public Infrastructure and Facilities • Preserve and Develop Affordable Housing
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• Public Services and Quality of Life Improvements • Economic Development Opportunities
• Homelessness Housing and Support Services
• Fair Housing
The Proposed FY 2022-23 Annual Action Plan represents the third year of the City’s FY 2020-24 Consolidated Plan and is part of the City’s broader effort to support its most vulnerable community members through local and regional programs. Activities proposed for funding align with both the priority needs identified in the Consolidated Plan as well as community priorities to Address Homelessness, promote a Clean and Safe Santa Monica, and cultivate an Equitable and Inclusive Economic Recovery, as established by Council on March 13, 2021. Included among the proposed activities are three eligible and previously unfunded projects in the City’s Capital Improvements Program (CIP). All three CIP projects are co-located on the Virginia Avenue Park campus in the Pico Neighborhood and serve the dual purpose of advancing Consolidated Plan goals while also reducing potential future demands on the City’s General Fund. Additional activities such as tenant-based rental assistance (TBRA), minor home modifications for people with disabilities, and public service offerings to vulnerable populations continue ongoing commitments originally identified in the Consolidated Plan.
HUD has yet to formally announce FY 2022-23 CDBG and HOME funding allocations.
For the purposes of preparing the Proposed FY 2022-23 Annual Action Plan, staff presumes that forthcoming allocations will remain essentially flat in FY 2021-22. Total projected FY 2022-23 CDBG and HOME resources are detailed below.
FUNDING TYPE CDBG HOME TOTAL
Entitlement $1,200,000 $613,000 $1,813,000
Prior-Year Funds $75,000 $ - $75,000
Program Income $40,000 $40,000 $80,000
$1,315,000 $653,000 $1,968,000
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Proposed activities for the FY 2022-23 program year include:
Thelma Terry Center Improvements (CDBG)
$ 570,732
The project will allow the Thelma Terry Center to fully return to its intended purpose as a well-utilized space for community meetings and events in anticipation of the opening of the Virginia Avenue Park (VAP) Community Kitchen, which is also located within this facility. Work would include interior restoration of Community Workshop 3, addition of a building access control system, HVAC upgrades, installation of energy efficient light fixtures, and aesthetic landscaping improvements.
Teen Center Courtyard Safety Improvements (CDBG)
$ 175,000
The VAP Teen Center courtyard is intended to be a safe, enclosed, outdoor space for neighborhood youth and as a gathering place for community events, but the space has been subject to intense heat from direct sunlight in the summer months and to recurring flooding during bouts of rain. The project seeks to add a much-needed shade solution and to install a long-term drainage system to ensure that the courtyard remains safe and accessible year-round.
Park Center Building - Fitness Room Safety Improvements (CDBG) $ 120,000
Located in VAP’s Park Center Building, Fitness Rooms 1 and 2 are used by the City and partner agencies to provide out-of-school-time youth programming and community-based fitness classes. However, damage to the flooring has created a safety hazard. Replacement of the floors would restore the room to its intended state to support the health and wellbeing of community members.
Tenant-Based Rental Assistance/TBRA (HOME)
Rental subsidies for qualifying low-income households who may be at $ 495,750 risk of losing housing.
Home Access Program – (CDBG)
$ 36,644 Administered by the Disability Community Resource Center, the Independent Living Service/Home Access Program (HAP) provides minor home modifications for low-income persons with disabilities.
Public Services (CDBG)
$ 164,624
- The Santa Monica Retention Program assists low-income families in retaining housing and achieving economic independence.
- The Santa Monica Employment Program assists low-income individuals and people experiencing homelessness in developing skills to obtain and maintain employment.
- The General Community Legal Services program provides legal assistance to low-income residents, including tenant harassment and eviction prevention.
Administration & Planning (CDBG, HOME)
Up to 20% of CDBG and 10% of HOME funding is allocated to staff time and resources required to administer programs in compliance with federal regulations.
$ 313,300
CHDO Reserve (HOME) $ 91,950
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15% set-aside for Community Development Housing Organization activities (regulatory requirement)
TOTAL $1,968,000
The following contingencies apply to FY 2022-23 activities proposed for funding:
• As of the writing of this staff report, HUD had yet to formally announce CDBG and HOME allocation amounts for FY 2022-23. Once allocations are released, funding for proposed activities will be adjusted to account for all available resources. Any additional CDBG funding is proposed to be applied to expand the scope of the Thelma Terry Center project, and any additional HOME funding is proposed to be used to increase funding for Tenant-Based Rental Assistance. • Annual Action Plans are ordinarily due to HUD on May 15, or 45 days prior to the start of the City’s fiscal year. However, per HUD Notice CPD-22-05 received by the City on April 4, 2022, and with respect to the delay in the release of FY 2022-23 CDBG and HOME allocations, the 2022-23 Annual Action Plan is now due to HUD 60 days after the HUD’s official allocation announcement date. • Since 2017, HUD has waived the regulatory requirement that entitlement jurisdictions set aside 15% of their annual HOME allocation for Community Housing Development Organization activities. Should the waiver be announced for the FY 2022-23 program year, the funds would be used to increase funding for Tenant-Based Rental Assistance (TBRA) and/or HOME Administration.
Public Participation
Pursuant to Municipal Code Section 2.68.050, the City has adopted a public participation process which requires a minimum of two public hearings prior to approval of an Annual Action Plan. To meet the requirement, staff advertised public hearings to inform development of the Proposed FY 2022-23 Annual Action Plan. Public hearings took place during the February 28, 2022 meeting of the Social Services Commission and the March 19, 2022 meeting of the Virginia Avenue Park Advisory Board. All meetings were held via teleconference pursuant to State of California Executive Order N-29-20 and in 6 of 7
accordance with HUD’s temporary waiver of Community Planning and Development requirements to allow for virtual public hearings in lieu of in-person public hearings.
The Proposed FY 2022-23 Annual Action Plan was also made available for a 30-day public review period beginning on April 6, 2022. All public comments received to-date are included in the Proposed FY 2022-23 Annual Action Plan. Any input received through the public review process and public hearings will be incorporated into the final version of the Annual Action Plan prior to HUD submittal.
Past Council Actions
Meeting Date Description
June 9, 2020 (Attachment C) Approval of FY 2020-24 Consolidated Plan and FY 2020-21 Annual Action Plan
March 13, 2021 (Attachment D) Adoption of Community Priorities to Guide the Budget Process for Fiscal Years 2021-2023
April 27, 2021 (Attachment E) Approval of FY 2021-22 Annual Action Plan Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. The funding recommendations for the awards will be included in the City’s Proposed FY 2022-23 Budget and are subject to City Council approval.
HUD’s submission requirements for the CDBG and HOME Consolidated Plan and Annual Action Plan precede the City Council’s adoption of the City’s Budget.
Acronym Glossary
HUD: United States Department of Housing and Urban Development CDBG: Community Development Block Grant
HOME: Home Investment Partnerships Program
CARES Act: Coronavirus Aid, Relief, and Economic Security Act CDBG-CV: Onetime CDBG funding awarded under the CARES Act TBRA: Tenant-Based Rental Assistance
CHDO: Community Housing Development Organization
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Prepared By: Marc Amaral, Administrator
Approved Forwarded to Council
Attachments:
A. Attachment A: Proposed 2022-23 Action Plan - Public Review B. Attachment B: 2020-24 Consolidated Plan
C. Attachment C: June 9, 2020 Staff Report (Web Link)
D. Attachment D: March 13, 2021 Staff Report (Web Link) E. Attachment E: April 27, 2021 Staff Report (Web Link)