HomeMy WebLinkAbout01a. Consolidated Plan memo
AGENDA MEMO
DATE: May 11, 2010
TO:
Mayor and Members of the City Council
FROM:
Office of the City Manager
By: Brian Saeki, Director of Community Development
SUBJECT: FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME
INVESTMENT PARTNERSHIP GRANTS CONSOLIDATED PLAN AND
ANNUAL ACTION PLAN
RECOMMENDATION
That the City Council conduct a public hearing to receive comments on the Five-Year
Consolidated Plan, the annual Action Plan, and the Analysis of Impediments Report;
and approve the three plans and authorize the City Manager to submit each to the U.S.
Department of Housing and Urban Development.
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) provides the City of
Downey (City) with its annual entitlement of Community Development Block Grant
(CDBG) and Home Investment Partnership (HOME) grants. These two federal grants
are available to the City for a variety of community development activities including
housing activities, neighborhood improvements, economic development, public facilities
and public services. CDBG and HOME grants must be used for eligible activities which
primarily benefit low and moderate-income households.
The City is required to update its Consolidated Plan (Consolidated Plan) every five
years and prepare a new Action Plan (Action Plan) every ear. Every three years, HUD
requires that the City conduct an analysis of any impediments to housing choices and
prepare an Analysis of Impediments Report. The proposed Consolidated Plan will
replace the current Consolidated Plan previously approved in May 2005. The
Consolidated Plan was prepared with the assistance of The Ramsey Group, a
consulting firm, and covers the period beginning July 1, 2010 through June 30, 2015
The Consolidated Plan and the Action Plan must be submitted to HUD by May 16, 2010
as a prerequisite to receiving the federal CDBG and HOME grants. During the course
of developing these plans, the City was required to hold two public hearing. The first
hearing was held on February 23, 2010. In addition, staff sponsored three community
meetings, providing additional opportunity for public participation during the
development process of the plans. Nine individuals attended this year’s meetings and
participated in the plan-development process.
CITY OF DOWNEY, CALIFORNIA
DISCUSSION
The 5-Year Consolidated Plan is a comprehensive report which serves as a planning
guide for the expenditure of the federal grants over the next five-year period. The
Consolidated Plan consists of several HUD required sections, including an assessment
of the City’s needs for housing and supportive service for low and moderate-income
residents. HUD requires that the city conduct an analysis of the housing market
conditions as well as a section on the non-housing needs of the community. The
Consolidated Plan includes a 5-year strategic plan with established goals and realistic
objectives, and a one-year expenditure plan that outlines the specific projects and
activities for the available resources.
Over the five-year period of the Consolidated Plan, an estimated $12 million may be
available to the City from federal CDBG and HOME funds. These resources can be
used to undertake programs and activities recommended in the Consolidated Plan and
the Analysis of Impediments report.
This proposed Consolidated Plan recommends the implementation of several programs
to address specific identified needs, and establishes the following quantitative
objectives:
Improve 290 housing units using the Residential Rehab and Housing
Modification programs
Improve accessibility of 100 housing units for disabled or elderly persons
Add 25 affordable housing units through new construction or purchase of existing
housing units
Provide support for a transitional housing facility to accommodate 20 homeless
households
Provide assistance for public services which address the special needs for 4,100
low income persons
Provide a funding source to improve two public facilities
Provide a funding source for Neighborhood Preservation program
Provide a funding source for two economic development projects which create or
retain employment opportunities for 115 low and moderate-income persons
Provide a funding source for the Code Enforcement Program
2010- 2011 Action Plan
The Action Plan is a stand alone component of the Consolidated Plan, and serves as
the City’s application for both the CDBG and HOME grants. The Action Plan, which is
incorporated within the attached draft Consolidated Plan, provides HUD with the specific
activities and projects the City will undertake and fund with the federal funds. Next
fiscal year, the City will receive $2,409,437 in new HUD grants: $1,615,728 in CDBG
and $793,709 in HOME funds. Additionally, staff estimates that another $135,000 in
program income, primarily from loan repayments, will be available next fiscal year.
The Action Plan proposed by staff incorporates funding request from the police
Department and the Community Services Department, as well as and the ongoing
funding needs of the many programs implemented directly by the Housing Division.
The following activities will be undertaken per the Action Plan proposed for next year:
Housing rehabilitation loans
Houses repainted under the Senior Paint & Fix-up Program
Houses modified to improve accessibility for disabled or elderly persons
Housing units abated of lead paint hazards
Homeless families accommodated in a transitional housing facility
Grants to non-profit agencies for public services
Units of affordable housing developed
4,413 Persons assisted from public services supported programs
Funding for code enforcement program cases
$2,500 Grant for a nutritional meal program for senior citizens
Overall, in the next program year, at least 70% of the CDBG and 100% of the HOME
resources will be allocated for activities that meet an eligibility criteria based on a
benefiting low and moderate-income persons.
The next table provides a summary of the general categories for activities and funding
amounts recommended by staff for the 2010-2011 Action Plan:
ProposedPrior Year
COMMUNITY DEVELOPMENT BLOCK GRANT
FundingBudget
Property Improvement/Preservation
Senior Paint & Fix-Up Program 481,997 489,220
Code Enforcement 225,000 225,000
Public Service Activities
Community/Senior Center 106,364 104,838
Adult Literacy Program 25,000 25,000
ARC of Southeast LA County 11,500 11,500
Aspire Program 34,769 34,769
Downey Unified School Grant 31,000 31,000
Rio Hondo Temporary Home 17,500 17,500
Senior Services Grant 2,500 2,500
So. Calif. Rehabilitation Services 3,000 2,000
True Lasting Connection Resource Center 3,400 3,400
Community Development
HUD Section 108 Loan Program 445,476 316,875
General Program Administration311,269 306,316
TOTAL CDBG RESOURCES $ 1,697,775 $ 1,644,918
ProposedPrior Year
HOME INVESTMENT PARTNERSHIP GRANT
FundingBudget
Housing Rehabilitation 753,038 953,521
Affordable Housing Partnership 711,314 715,000
General Administration 103,132 98,224
TOTAL HOME RESOURCES $1,567,484 $1,766,745
Analysis of Impediments
The Analysis of Impediments (AI) Report provides information on fair housing issues in
the City. The report includes an analysis of actions or policies in both the private and
public sectors, which could have a direct or indirect impediment on housing
opportunities. This report examines the following areas:
Applicable federal, state and local laws and policies, and assessed how these may
have affected the location, availability, and accessibility of housing
Effect of private sector lending and real estate policies and practices on fair housing
choices
Fair housing complaint data
Development of an action plan to minimize impediments and further fair housing
opportunities over the next five years
The AI was prepared by the Ramsey Group whose contract required that they review a
wide range of public-sector and private-sector activities for impacts on fair housing
choices. Their report identified several areas for improvement and further
recommended the following actions to address the effects of these impediments:
Conduct additional outreach regarding availability of housing programs for owner
and renter households and maintain a listing of affordable housing resources
Continue efforts to expand affordable housing opportunities for diverse types of
households
Use federal resources to increase awareness of fair housing and fair lending
mortgage issues. This will include sponsoring workshops and developing resource
materials
Utilize the local fair housing agency to explore fair housing complaints and conduct
testing and audits
Collaborate with other public and private organizations to address fair housing
issues on a region-wide basis.
Finally, the AI supplements the City's Consolidated Plan for the 2010-2015 period and
addresses HUD’s requirement that the City provide a certification that it will affirmatively
further fair housing and carry out actions to reduce impediments.
FISCAL IMPACT
The City of Downey is entitled to receive $2,409,437 in CDBG and HOME funds for
fiscal year 2010-2011. These funds will be incorporated into the 2010-2011 City
budget. The Consolidation Plan, the Annual Action Plan and the Analysis of
Impediments are required in order to receive these federal grants. Any action
recommended in these Plans and approved by the City Council will be funded with
federal grant funds.
Attachment A - Consolidated Plan Action Plan/Action Plan
Attachment B - Analysis of Impediments