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HomeMy WebLinkAbout01. 5 year CDBG-HOME grants AGENDA MEMO Date: February 23, 2010 TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM : THE OFFICE OF THE CITY MANAGER By: Brian Saeki, Director of Community Development SUBJECT:CONSOLIDATED PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME PARTNERSHIP INVESTMENT GRANT PROGRAMS RECOMMENDATION Staff recommends that the City Council receive public comment pertaining to the Community Development Block Grant (CDBG) and HOME Investment Partnership Grant Programs. No action other than to receive public comment is recommended at this time. BACKGROUND The City of Downey is an entitlement grantee of federal grants under the Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME). These grants are allocated to the City annually from the U.S. Department of Housing and Urban Development (HUD). In order to receive these Grants, HUD requires that the City have an approved 5-Year Consolidated Plan and annually submit an Action Plan. The period covered by the current Consolidated Plan will end on June 30, 2010. The Housing Division has initiated the development of the required Consolidated Plan for the next five year period. As part of this process, the City is required to hold a minimum of two public hearings prior to submitting the Consolidated Plan to HUD for approval. The first hearing is required in the initial phase of the Plan development process, and a second hearing is held at the end of the process when a draft is available for review and before the Consolidated Plan is approved by the City Council. The Consolidated Plan serves as a comprehensive planning document and includes an assessment of the City’s needs in affordable housing and supportive housing services for its low and moderate-income residents. HUD requires that the Consolidated Plan include an analysis of the housing market conditions and a 5-year strategy, with established priorities, for meeting identified priorities. The Plan must identify resources anticipated to be available for addressing the affordable and supportive housing needs and provide and annual Investment plan referred to as the “Action Plan”. The proposed 5-Year Consolidated Plan must focus on several population groups which HUD has determined to be a high priority. The federal CDBG program allows the City CITY OF DOWNEY, CALIFORNIA Page 2 – Consolidated Plan 2-23-10 to use these funds for eligible housing activities and well as non-housing development activities. Historically, the City has allocated a large percentage of these funds on housing rehabilitation, code enforcement, public improvements and public service activities. Whereas, funds available under the HOME grant can only be used for housing type activities. Under both grants the primary beneficiaries must be households that are low and moderate income, elderly, disabled or homeless. Federal regulation requires that no less then 70% of the CDBG funds and 100% of the HOME funds must be used on activities, which benefit low and moderate-income persons. The City is limited to using no more 20% of the CDBG grant for general administration costs, while the HOME grant only allows 10% for administration expenses. The purpose of the first public hearing is to provide an opportunity for the community to contribute suggestions and comment on the perceived or actual needs of the City and the use of these federal entitlement grants. Staff is seeking comment relevant to the following areas: Identify the deficiencies in affordable housing for low and moderate-income households, elderly households, the homeless, and special needs households. Identify the non-housing supportive needs for low-income, elderly and homeless households., including public infrastructure, community facilities, and social services Setting priorities to address the City’s identified needs and determining the distribution proportions of available federal resources. Proposals for projects, programs or ideas on how to use the federal funding. Feedback on the effectiveness or the performance outcomes of the current year CDBG and HOME funded activities. The extent or scope of issues or deficiencies effecting fair housing choices within the City. A second public hearing on this item will be scheduled for the Council meeting of May 11, 2010. A draft of the proposed Plan will be completed and available by April 12, 2010. FISCAL IMPACT The Consolidated Plan is a prerequisite for the City to receive the CDBG and HOME entitlement grants for period covering the next five fiscal years.