FROM:
Housing
SUBJECT:
Title
Public Hearing and Adoption of Housing and Urban Development (HUD) Planning Documents including the Five-Year Consolidated Plan (2025-2029), the One-Year Annual Action Plan (2025-2026), and the Analysis of Impediments (2025-2029)
End
RECOMMENDATION:
Recommendation
1. Adopt the draft Five-Year Consolidated Plan (2025-2029); and
2. Adopt the draft FY2025-26 Annual Action Plan for Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) programming; and
3. Adopt the draft Analysis of Impediments to Fair Housing Choice (2025-2029); and
4. 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; and
5. 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; and
6. Authorize the City Manager, or City Manager’s designee, to award and execute any construction contracts up to $200,000 to facilitate the timely administration of the Community Development Block Grant (CDBG) Acquisition, Rehabilitation, and Rental Program.
End
COUNCIL GOALS:
• Increase citizen involvement by seeking community input.
• Practice sound fiscal management by producing timely and accurate financial information.
• Practice sound fiscal management by pursing grant opportunities.
• 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. To continue receiving these funds, the City is required to prepare and submit a new Five-Year Consolidated Plan (2025-2029), which establishes a unified, strategic vision for housing, community and economic development actions.
Each year, HUD requires the submission of a One-Year Annual Action Plan that describes planned projects along with one-year goals and budgets for the CDBG, HOME and ESG projects during the upcoming program year. The draft 2025-2026 Action Plan represents the first-year program as described in the draft Five-Year Consolidated Plan. The draft documents submitted for consideration fulfills the HUD requirements.
In addition, the City is required to prepare a new Analysis of Impediments for Fair Housing, which assesses the fair housing needs of the City's residents, identifies fair housing impediments and provides recommended actions to address those impediments.
Consolidated Plan (2025-2029)
The draft Consolidated Plan covers the period of July 1, 2025 to June 30, 2030. It identifies housing, community needs and strategies to address those needs supported by overall goals. The needs analysis took into account available demographic, housing and economic data from the 2020 American Community Survey 5-Year Estimates and other HUD-supplied data, public hearings, community meetings, and consultations with local agencies and stakeholders. The City conducted a community needs survey that was available to the public online and in hardcopy format. The City received a total of 476 responses and a summary is included in the Plan. The strategies and goals for using CDBG, HOME and ESG funds to address local priority needs are aligned with HUD's national goals to provide decent housing, a suitable living environment and expand economic opportunity for low- and moderate- income families.
The draft Consolidated Plan includes five (5) priority needs and goals to be addressed through the implementation of projects in each One-Year Annual Action Plan. The priority needs are:
1. Preserve the supply of affordable housing
2. Expand the supply of affordable housing
3. Ensure equal access to housing opportunities
4. Prevent and eliminate homelessness
5. Provide public services to low-income residents
One-Year Action Plan (2025-2026)
The draft Action Plan covers the period of July 1, 2025, to June 30, 2026. It outlines the one-year goals and budgets for the CDBG, HOME and ESG programs, and the planned projects to address the priority needs and goals identified in the Consolidated Plan.
If additional funds become available during the program year from unanticipated increases in appropriations, savings from completed projects or dropped projects, the City will use those funds for the rental acquisition and rehabilitation program without amending the Action Plan.
This year, the City anticipates receiving $1,900,000 of CDBG funds, $600,000 of HOME funds and $170,000 of ESG funds from HUD. In addition, the City has prior year CDBG funds and HOME funds that are dedicated to various rental housing projects including the CourtPlace Apartment project.
As of the time of this item, the City has not received formal notification of the funding allocations. Once they are received, staff will adjust the budget accordingly based on overall decreases in funding.
The following CDBG projects are included in the draft FY2025-2026 Action Plan:
|
Activity |
Budget (Estimated) |
|
Fair Housing Services |
$37,500 |
|
Affordable Rental Housing Development |
$1,235,000 |
|
Senior Recreation Scholarships |
$70,000 |
|
Public safety |
$215,000 |
|
Program Administration |
$342,500 |
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.
Lastly, if a property that is purchased through the CDBG Acquisition, Rehabilitation, and Rental Program requires any rehabilitation to bring it up to suitable living conditions, Housing staff would create and bid out the necessary items to satisfy any necessary codes and/or regulations. Authorizing the City Manager, or their designee, to award and execute construction contracts up to $200,000 would facilitate the timely administration of the program and provide homes to income-eligible families expediently.
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:
|
ActivityBudget (Estimated) |
|
|
Affordable Rental Housing Development |
$540,000 |
|
Program Administration |
$60,000 |
The following ESG projects are included in the draft Action Plan:
|
ActivityBudget (Estimated) |
|
|
Homeless Prevention |
$70,762.00 |
|
Rapid Rehousing |
$70,762.00 |
|
Emergency Shelter |
$15,726.00 |
|
Program Administration |
$12,750 |
Citizen Participation in the Development of all Plans
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 20, 2025.
The draft documents were made available for public review and comment from February 24, 2025 through March 25, 2024 at the Library and multiple locations at City buildings. Additionally, it was posted on the City’s website. The Public Hearing scheduled for March 25, 2025, 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.
Analysis of Impediments to Fair Housing
The Draft Analysis of Impediments assesses factors that hinder individuals of similar income levels in the same housing market from having a like range of housing choice available to them regardless of race, color, ancestry, national origin, religion, age, sex, disability, marital status, familial status, source of income, sexual orientation or any other arbitrary factor. It then identified actions that can be taken to address those factors.
To affirmatively promote equal housing opportunity, a community must work to remove or mitigate impediments to fair housing. To meet this requirement, the City must certify its commitment to actively further fair housing choice, maintain fair housing records and conduct an analysis of impediments of fair housing.
The Draft Analysis of Impediments identified five (5) fair housing issues, eight (8) factors contributing to those issues, and associated goals to address those factors. No new impediments were identified from the previous report.
Issues
1. Concentrations of racial/ethnic groups in Central, South, East, and Northwest Fontana.
2. Racially/ethnically concentrated areas of poverty in Central Fontana.
3. Disparities in access to high-performing schools, employment, and environmentally healthy neighborhoods for Hispanic and low-income residents.
4. Disproportionate housing problems for American Indian and Alaska Native, Asian, Pacific Islander, and Black/African American households in different income ranges.
5. Disparities in access to homeownership for Black, Hispanic, and Native American households.
Factors & Goals:
Factor #1: Lending Discrimination
Goal #1 Monitor lending data; market and communicate the City’s Fair Housing commitment and resources to buyers and lenders
Factor #2: Discrimination Based on Disability
Goal #2 Continue working with Fair Housing provider to respond to instances of believed discrimination, facilitating accessibility reviews of multi-family properties, and distributing design and construction information with building permit inquiries.
Factor #3: Fair Housing Education
Goal #3 Continue supporting Fair Housing provider educational initiatives and encouraging collaboration with local realtors.
Factor #4: Transit Access
Goal #4 Build and expand public transportation opportunities servicing the Falcon Ridge / Summit Avenue Job Center and the Southwest Industrial / Jurupa Hills Job Centers.
Factor #5: Reasonable Accommodation
Goal #5 Develop a policy to provide relief from Code regulations and permitting procedures that have a discriminatory effect on housing for individuals with disabilities.
Factor #6: Public Investment in Specific Neighborhoods
Goal #6 Engage community to understand need and engage developer to provide responsive affordable housing options.
Factor #7: Availability of Affordable Housing
Goal #7 Streamline affordable housing projects, provide additional incentives when funding is available, work with developer to potentially utilize the existing Inclusionary Ordinance.
Factor #8: Access to Proficient Education
Goal #8 Support housing opportunities adjacent to educational institutions and schools and partner with FUSD annually to gather insight via community outreach about key housing and economic needs of FUSD families and students.
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, $600,000 of HOME Investment Partnerships (HOME) funds, and $170,000 of Emergency Solutions Grant (ESG) funds and will be included in the proposed 2025-26 budget in various Fund 362 and 363 projects as follows:
Project # 30200011-362 $380,000 Project # 30200012-362 $170,000
Project # 04032033-362 $215,000 Project # 30200017-363 $60,000
Project # 30200016-362 $70,000 Project # 30200006-363 $540,000
Project # 30200002-362 $1,235,000
MOTION:
Approve Staff Recommendation