FROM:
Housing
SUBJECT:
Title
Public Hearing and Adoption of HUD Community Development Block Grant, HOME Investment Partnerships Program, and Emergency Solutions Grant 2024 Annual Action Plan
End
RECOMMENDATION:
Recommendation
1. Adopt the draft FY2024-25 Annual Action Plan for Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) programming;
2. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable, including but not limited to purchase agreements that may include acquisitions costs up to the full amount of the allocated funds, to ensure the City's timely receipt and execution of Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) programs;
3. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable, including but not limited to purchase agreements that may include acquisitions costs up to the full amount of the allocated funds, to facilitate the timely administration of the Community Development Block Grant (CDBG) Acquisition, Rehabilitation, and Rental Program including but not limited to property purchase agreements.
End
COUNCIL GOALS:
• Practice sound fiscal management by pursing grant opportunities.
• Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by acquisition, substantial rehabilitation, and professional management of selected multi-family properties to provide more affordable units and reduce crime and code enforcement activity.
• Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.
DISCUSSION:
The City of Fontana receives Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds from the U.S. Department of Housing and Urban Development (HUD) each year. In order to receive these funds, HUD mandates that all entitlement communities receiving CDBG, HOME and ESG funds prepare and submit an Action Plan outlining the planned projects, one-year goals and budgets for the CDBG, HOME and ESG programs to be implemented in an effort to address the priority needs and goals identified in the 2020-2024 Consolidated Plan. Six of the seven priority goals will be addressed in the 2024-25 Action Plan. This Action Plan does not include any funds for public facilities and infrastructure activities.
As of this meeting, HUD has not announced its annual allocations for FY2024. The budget specified in the draft report for next fiscal year is an approximation based on prior year allocations. The budget will be modified accordingly once HUD announces the FY2024 allocations. The City anticipates receiving $1.9 million of CDBG funds, $740,000 of HOME funds and $175,000 of ESG funds from HUD. In addition, the City has $3,586,247 in carryover HOME funds set aside for future affordable housing projects and activities.
The following CDBG projects are included in the draft FY2024-25 Action Plan:
|
Strategy/Goal |
Project |
Funding |
|
N/A |
CDBG Administration |
$342,500 |
|
Ensure equal access to housing opportunities/ Fair housing services |
Fair Housing |
$37,500 |
|
Provide public services for low-income residents/families |
Public Safety and Recreational Scholarships |
$285,000 |
|
Expand the supply of affordable housing |
Acquisition, Rehabilitation, and Rental Program |
$1,235,000 |
|
|
Total: |
$1,900,000 |
The CDBG Acquisition, Rehabilitation, and Rental Program is designed to increase the City’s affordable housing stock by purchasing, rehabilitating, and renting single-family properties to income-eligible households at or below 80% Area Median Income (AMI). The Housing staff bids on and purchases properties that are available on the market for sale and then rehabilitates them, in order to offer suitable living conditions for low-income families.
In order to have a successful program and to ensure that staff is able to compete with private purchasers, the following processes have been established:
• The Housing Development Manager would be authorized to submit offers on potential properties
• The Deputy City Manager (for purchases up to $50,000) or the City Manager (for all purchases over $50,000 and up to the full amount of allocated funds) would be authorized to finalize any contractual and/or escrow documents in order to purchase the properties.
• Only the City Manager would be authorized to sign the Certificate of Acceptance that is attached to the Grant Deed to complete the acquisition.
Staff will report to City Council annually on property purchases in the Consolidated Annual Performance and Evaluation Report (CAPER).
The following HOME projects are included in the draft Action Plan:
|
Strategy/Goal |
Project |
Funding |
|
N/A |
HOME Administration |
$74,000 |
|
Ensure equal access to housing opportunities/ Fair housing services |
Affordable Rental Housing (including CHDO set-aside) |
$666,000 |
|
|
Total: |
$740,000 |
The following ESG projects are included in the draft Action Plan:
|
Strategy/Goal |
Project |
Funding |
|
N/A |
ESG Administration |
$13,125 |
|
Prevent and eliminate homelessness & homelessness prevention services. |
Homelessness Prevention |
$121,400 |
|
Prevent and eliminate homelessness & homelessness prevention services. |
Rapid Re-Housing Program |
$40,475 |
|
|
Total: |
$175,000 |
Citizen Participation in the Development of the draft One-Year Action Plan
In compliance with federal regulations and the City’s adopted Citizen Participation Plan, the Notice of Public Hearing and notice of availability of the aforementioned draft documents were published in the Press Enterprise, San Bernardino Sun and the El Chicano on February 22, 2024.
The draft documents were made available for public review and comment from February 22, 2024 through March 22, 2024 at the Library and multiple locations at City Hall/Development Services buildings. Additionally, it was posted on the City’s website. The Public Hearing scheduled for March 26, 2024, at 2:00 p.m. provides another opportunity for public input. Any and all comments received during the process (at public meetings and/or in writing) with respect to a particular draft document will be incorporated into the final draft document, as applicable, prior to submission to HUD.
FISCAL IMPACT:
The fiscal impact associated with this approval of this item is approximately $1.9M of federal Community Development Block Grant (CDBG) program funds, $740,000 of HOME Investment Partnerships (HOME) funds, and $175,000 of Emergency Solutions Grant (ESG) funds and is included in the proposed 2024-25 budget in various Fund 362 and 363 projects.
Project # 30200011-362 $380,000 Project # 30200012-362 $175,000
Project # 04032033-362 $250,000 Project # 30200017-363 $74,000
Project # 30200016-362 $35,000 Project # 30200006-363 $666,000
Project # 30200002-362 $1,235,000
MOTION:
Approve staff recommendation.