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HomeMy WebLinkAbout01. Amendment to 2017-2018 CDGB HOME Annual Action PlanTO.. MAYOR ASHTON AND MEMBERS OF THE CITY COUNCIL C1 4 ED 13Y Ty IWAIN FROM: OFFICE OF - : r• E. SCHINDLER,DIRECTOR OF • DEVELOPMEN DATE- AMENDMENT • THE 2017-18r: iACTION PLAN ALLOWING•r • OF RESIDENTIAL REHABILITATION-• AND ADDING A HOUSING PROGRAM;RENTAL ASSISTANCE AND OPEN THE PUBLIC COMMENT PETIOD FTHE 2018-19 ANNUAL ACTION PLAN OR That the City Council approve the following: a. The addition:ia Rental Assistance Program; •The allocationof $352,998 •fundsF. Housing Rental Assistanc • • 1 c. The commitment•. $690,696 HOMEfundsto Housing .:• :•. Assistance • • 3. Allow the City Manager to enter into Subrecipient Agreements committing $352,998 in HOME• . two (2) Subrecipients for• i of Rental Assistance • f and, 4. Receive public on theCommunityDevelopment :. • (CDBG) • HOMEInvestment Partnership Programs ii for 2018-19. The City of Downey is an entitlement community that receives both Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) grant funds from the U.S. Department of Housing and Urban Development (HUD). As a result, the City of Downey must prepare a new Action Plan annually as it serves as the City's application for both CDBG and HOME grants. The process to develop the Action Plan includes gathering input from the community via two (2) public hearings and three (3) community meetings. The City seeks comments to facilitate the preparation of the Action Plan relevant to affordable housing, community improvements, the priority for distributing federal grants, suggestions for projects, programs, and funding amounts, and comments on the effectiveness of previous funded programs. HOME entitlement funds are available to the City of Downey to supply a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership, AMENDMENT TO THE 2017-18 ACTION PLAN, RENTAL ASSISTANCE PROGRAM, MODIFICATIONOF •PROGRAM,D ACTION COMMENT•D FEBRUARY 13, 2018 and for providing direct financial assistance to low- and moderate -income persons to purchase and/or rent a home. DISCUSSION First -Time Homebuver Proaram and Rental Assistance Prooram The City's current Action Plan identifies affordable housing as a community need based on existing market conditions. As a result, in 2016, the City committed $353,000 and entered into a two (2) year Agreement with Neighborhood Housing Services (NHS) to administer its First -Time Homebuyer Assistance Program with a goal to assist 11 low- to moderate -income households in purchasing their home. Since the inception of the program, NHS assisted 210 households in various forms, including educating, counseling and preparing said households for homeownership, resulting in two (2) low- to moderate -income households purchasing their home in Downey. Due to Downey home prices increasing by 12% since 2016, and the average purchase price for a home in the city exceeding HUD established HOME Value Limits of $486,400 for a 3 -bedroom 2 -bathroom home, the First-time Homebuyer Program has become unfeasible, not allowing low - to moderate -income households to purchase their home, even with $90,000 in combined assistance from NHS and the City. As a result, and in order to continue to address the need for affordable housing in the City, staff is proposing to allocate $352,998 in HOME funds to the Housing Rental Assistance Program, to assist people who are on the verge of becoming homeless and/or are currently experiencing homelessness in Downey. Staff recommends using said funding to assist people who are experiencing homelessness through: rapid rehousing — assists in obtaining housing as quickly as possible; preventative subsidies —assists individuals and families in paying the previous balance owed for their rent, bringing them current so as to not lose their home; and, shallow subsidies — assists individuals and families to pay a portion of their rent, in order to increase the affordability of their home. As such, staff has identified two (2) local nonprofit organizations that provide homelessness services within the area, that can assist staff in managing a housing rental assistance program. The first is The Whole Child (TWC), which focuses on assisting homeless families through rapid rehousing, shallow subsidies and preventative subsidies (arrears); TWC's average monthly voucher is between $1,500 to $3,000 per family. The second organization, Jovenes Inc., focuses on assisting homeless youth through rapid rehousing; Jovenes' average monthly voucher is between $500 to $1,300 per individual. The aforementioned non-profit organizations currently collaborate with local organizations such as True Lasting Connection (TLC), and will continue to do so through the rental assistance program. Staff recommends that the City Council approve awarding $302,998 to TWC and $50,000 to Jovenes, to further affordable housing in the community, and assist those individuals and families who are homeless or are on the verge of becoming homeless (see Attachment "B" Scopes of Work). 9 COMMENT • IC FEBRUARY 13, 2018 Rehabilitation Program The Action Plan has also identified a need to improve the living environment of low- and moderate -income families residing in substandard housing. Currently, the City runs a Rehabilitation Assistance Program that provides assistance of up to $15,000 and requires the homeowner to provide matching funds of $15,000 to make improvements to owner -occupied homes. Improvements to owner -occupied homes include: painting the exterior of the dwelling abating lead; replacing deteriorating roofs, furnace, flooring, plumbing, windows, kitchen and bathroom cabinets and doors; electrical systems; plumbing system and fixtures; and replacing asphalt and/or deteriorated driveways. In addition, the program also intends to allow seniors to age -in-place by adding rails, ramps, and provide accessibility to bathrooms by replacing tubs with walk-in showers and/or tubs, all meeting American with Disabilities Act (ADA) requirements. Although the City's Rehabilitation Assistance Program is successful, $15,000 does not cover the cost to bring older homes up to applicable property standards, and our low-income population has difficulties providing matching funds. As such, staff contacted local contractors to calculate the average cost to bring said homes into current code compliance by addressing: roof replacement; window change -outs; replacement of flooring, plumbing, electrical; necessary kitchen and bathroom remodels; removing lead; driveway replacement; and painting the exterior of the home and garage. As a result, the cost to address the above mentioned items vary from approximately $60,000 to $90,000 for a 1,500 sq. ft. home. Since not all homes require all improvements to be completed, staff recommends modifying the Rehabilitation Assistance Program guidelines to increase the grant from $15,000 to $35,000, and to not require the homeowner to provide matching funds. Based on staff research, it is recommended to prioritize and target the following areas: • Old River School Road west to the Rio Hondo riverbed, from Pellet Street south to Luxor Street; • Patton Road from Cleta Street south to Alameda Street; • The Promenade vicinity, including: o Rose Avenue from Lakewood Boulevard south to Imperial Highway; o Washburn Road south to Spry Street, Izetta Street, Dunrobin Avenue, Eastbrook Avenue, and Cornuta Avenue; and, o Margaret Street south to Stewart and Gray Road, from Bellflower Boulevard west to Coldbrook Avenue. • Telegraph Road south to the 5Freeway, from Lakewood Boulevard east to Paramount Boulevard; • Foster Road south to Rosecrans Avenue, from Downey Avenue west to Lakewood Boulevard; and, • Studebaker Road east to the 5 Freeway, from Dollison Drive south to Cecilia Street. As such, staff recommends that the City Council approve the proposed amendment to the FY 2017-18 Action Plan and allocate an additional $690,696 to the Rehabilitation Assistance Program; this funding is projected to assist 19 homeowners. 3 AMENDMENT TO THE 2017-18 ACTION PLAN, RENTAL ASSISTANCE PROGRAM, MODIFICATIONOF • ASSISTANCE PROGRAM,ACTION COMMENT• r FEBRUARY 13, 2018 FY 2018-19 Annual Action Plan Comment Period As mentioned previously, the City of Downey is an entitlement grantee eligible to receive federal grant funds under the CDBG and HOME programs. In order to receive these grants, HUD requires that the City prepare a new Action Plan annually. The Action Plan serves as the City's application for both the CDBG and HOME grants. The Housing Division has begun the process of developing the required Action Plan for the period of July 1, 2018 through June 30, 2019. In the course of developing this proposed Action Plan, City staff will schedule two (2) public hearings before the City Council, and three (3) community meetings. The first hearing is required during the initial phase of the development process and will take place on February 13; the second hearing will take place in May 2018, at the end of the process,_ before the Action Plan is approved by the City Council and submitted to HUD. The three (3), publicly noticed community meetings will be scheduled within the Action Plan development timeframe. Both the CDBG and HOME grants can be used by the City for a wide range of activities, but must principally benefit the City's low- and moderate -income residents. Each Grant has its defined restrictions and conditions, but generally, the City can spend its CDBG allocation on both housing and non -housing activities. Conversely, under the HOME program, funds can only be used for affordable housing activities. In addition, at least 70% of the CDBG funds and 100% of the HOME funds must be spent on activities which principally benefit low- and moderate -income persons. Historically, the City has allocated a larger share of these funds for housing rehabilitation, code enforcement, and public service activities. Both grants provide allowances to cover the City's administrative overhead and expenses. Staff is seeking comments to facilitate the preparation of the Annual Action Plan relevant to the following areas: • The degree of need for affordable housing in the City, particularly for low- and moderate income households, elderly households, the homeless, and those households with special needs; • The need for community improvements such as public infrastructure, community facilities, and community services which would directly benefit CDBG eligible households; • Policies and priorities for the distribution of the federal grants; • Suggestions for projects, programs, and funding amounts of activities that would address the needs of those eligible under the CDBG and HOME programs; and, • Comment on the effectiveness of previous or currently -funded CDBG and HOME program or projects. 4 AMENDMENT TO THE 2017-18 ACTION PLAN, RENTAL ASSISTANCE PR•RAM, MODIFICATION OF THE REHABILITATION ASSISTANCE PROGRAM, AND ACTION PLAN COMMENT PERIOD FEBRUARY 13, 2018 Approval of this item will not impact the General Fund and will commit FY 2017-18 Federal HOME funds of $352,998 to the Housing Rental Assistance Program to be administered by the two (2) nonprofit subrecipients. Additionally, $690,696 from the City's HOME fund allocation will be committed towards the Rehabilitation Assistance Program. Attachments: "A" — Scopes of Work "B" — Amendment to 2017-18 Action Plan P ATTACHMENT „A„ Founded in 1989, Jovenes (which means youth in Spanish), helps young people, ages 18- 25, end their cycle of homelessness. Located in Boyle Heights and serving communities throughout Southeast LA County, Jovenes goes deep with each of our youth, implementing a plan that addresses their needs for housing, healthcare, education/employment, and trauma recovery. Our youth have the desire to turn their lives around but frequently lack the skills and supportive mechanisms that are necessary for self-sufficiency — often times the product of systems that did not adequately prepare them for the future. Jovenes has grown to provide a wide range of housing and supportive services which are designed to get homeless youth off the streets and into their own apartments. Jovenes operates a complete continuum of care that includes emergency shelter, transitional housing and multiple forms of permanent housing that. We understand that while safe and stable housing is the cornerstone of ending homelessness, our youth need positive relationships and multiple forms of support in order to thrive over the long-term. In both short and long-term housing, Jovenes provides the following supportive services to all youth that we serve: • Individualized case management, • Employment & educational counseling, • Job placement, • Life skills training, • Leadership development, - • Mental health services. SERVING DOWNEY THROUGH CES Through the Coodinated Entry System (CES), Jovenes is the the RegionalCoordinator for Transition Age Youth in Service Planning Area 7 (which covers Southeast LA, including Downey). CES is designed to help homeless individuals and youth receive the assessments and housing placements they need to move into permanent housing. This leadership role increases Jovenes' capacity to move homeless youth off the streets and into their own apartments while also bringing much needed resources and support into underserved communities throughout Southeast LA County. As the TAY regional coodinator for SPA 7, Jovenes conducts landlord engagement as well as outreach to youth and other organizations, such as shelters and churches, in order to connect more homeless youth with affordable,safe housing. Through the work of our case managers, youth can enter the rapid rehousing program and move into permanent housing quickly and efficiently while still accessing all of the supportive services Jovenes' Continuum Care program provides. Attachment A 1 Attachment "A" The services that we provide through CES in SPA 7 include the following: Outreach to homeless youth and community stakeholders Landlord Engagement • Coodination between homeless service providers • Assessment of homeless youth Housing solutions including: o Family Reconnection- helping homeless youth return home by repairing family relationships o Transitional Housing- a time limited intervention designed to provide youth with the safety and security of housing while they work on a longer-term plan for self sufficiency and independence o Rapid Rehousing- A rental subsidy based intervention which helps youth move into permanent housing and gradually take on the full cost of their lease. In addition to our CES activities, Jovenes has launched our College Success Initiative in order to take on the crisis of student homelessness on community college campuses. With affordable housing scarce & no housing support available on campus, 1 in 5 Los Angeles' community college students are experiencing homelessness. To address this issue, the agency decided to start bringing our resources onto campus and launched the College Success Initiative to combat student homelessness on community college campuses throughout los Angeles. ovenes has developed a simple solution to the complex challenge of student homelessness: provide rental subsidies to homeless students so they can move into permanent housing, focus on their education, and graduate. Jovenes combines an on- campus/in-home support system to homeless and former foster care students that will complement college resources and will focus on: 1) Housing support &rental subsidies, 2) Case management, employment counseling, & mental health support, 3) Linkages to community resources/service navigation. By partnering with on -campus programs for at -risk students, this program is able to reach out to the most vulnerable youth at community colleges and provide them the support they need to continue their education. We work closely to focus on homeless students in the community colleges closest to Downey- specifically East LA College, Cerritos College, and Rio Hondo College: To date, of the 31 students we've housed from community colleges throughout Los Angeles, 90% have maintained their housing and persisted in school, with five students transferring or graduating within the last year alone. INCREASING RAPID REHOUSING IN DOWNEY Jovenes is interested in working with Downey to increase our ability to move homeless youth off the streets of Downey and into permanent housing. Rapid Rehousing is a program based on a Housing First, "transition in place" model for TAY that builds on our current successful model of rental subsidies. Funding would allow us to grow the Attachment 2 success of this approach to increase the placements of TAY who are living in either emergency shelter or places not meant for human habitation into permanent housing. Jovenes has a demonstrated ability to leverage funding from multiple sources to implement a variety of programs that are successfully placing homeless youth into permanent housing that they are able to maintain while meeting contractual obligations and outcomes. The proposed RRH program will be a scattered -site housing first model where youth in the program will access market rate community based housing that meets the HUD quality and rent reasonableness standards while receiving a time limited rental subsidy. All clients will have the full legal rights and responsibilities of tenant - landlord relationship. Services will be based on a Critical Time Intervention model where the frequency of services will more intense in the first months and less intensive as the client shows greater level of achieved independence. This will translate in multiple contacts and visits/meetings with youth during the first months, as youth are enrolled in the rental assistance program, and will decrease as time goes as youth will stabilize. All youth in the program will receive monthly contacts with their case manager, at the minimum. Youth will work with Jovenes' staff to conduct a housing search. Once a unit is identified and orientation completed, the rental subsidy will be paid directly to the landlord. The structure of the subsidy works in the following way: Jovenes will cover 100% of the youth's rental costs during the first few months of their tenancy, as the youth obtains employment and increases their financial capabilities. As the youth stabilizes, the subsidy amount will generally decrease as time goes by until the youth is able to take on the full cost of the lease, usually within 12 months of entering the program. The typical subsidy amount is between $8,000-$10,000 per year, depending on the youth's situation andrental costs. Given an amount of $136,000, we anticipate having the capacity to move 13-17 youth into permanent housing. Attachment A 3 I$ r r The Whole Child (Contractor) will assist Downey Families who are either homeless or at risk of homelessness secure and/or retain permanent housing. The Whole Child shall provide a centralized and coordinate point of responsibility for homeless families residing in Downey, assisting families secure permanent housing as rapidly as possible or prevent them from becoming homeless. 2. The Whole Child contact information is defined by the contract with the City of Downey. 3. Contractor shall assess families seeking assistances with stabilizing` a housing crisis and develop a housing and supportive services plan based on the family's eligibility and housing needs. Services will be based on the family's individual strengths and challenges to longterm housing stability. 4. Contactor shall track all services and benefits provided to eligible families.; 5. Families Who identify as currently fleeing a domestic violence situation must be immediately connected with and provided placement into a domestic violence shelter at a confidential location to ensure the safety and well-being of the family. 6. Contractor must utilize the Los Angeles-CoC Homeless Certification Form to document homeless status. 7. Contractor will provide the following services and benefits to eligible families: 8. Standardized Assessment: The Whole Child Staff will complete a comprehensive standardized screening on all families seeking assistance with crisis housing situation. 9. Prevention and Diversion: Contractor will assist families with imminent housing crisis and those seeking emergency shelter with access to other Attachment A 4 temporary housing, during the duration of time permanent housing is being identified. a. Diversion Services will include but not limited to mediation/conflict resolution with landlords/family/friends, connection to mainstream benefits, and limited financial assistances. b. Prevention Services are aimed to help low-income participants resolves a crisis that would otherwise lead to a loss of housing. Most common prevention methods include short-term financial assistance, housing related support services, legal assistances and or discharge planning. 10. Contract will assist participants in housing search and placement process. Assistance includes: a. Assistances with locating appropriate housing that meets the needs of the family. b. Meeting the landlords to assist families with preparing and understanding lease agreements, lease process and expectation of tenancy. 11. Contractor will take reasonable steps to ensure that the rent for the unit is reasonably in the reach for the participant once financial assistance has ended. 12. Contactor will conduct inspection, verify property ownership, and conduct rent reasonableness survey for each apartment receiving direct financial assistance through The Whole Child. 13. Contractor will complete at least one (1) follow-up (Le. home visit, phone call) per month to clients placed into permanent housing. 14. Contractor shall provide direct financial assistances needed to identify and maintain housing. a. This financial assistances includes both move -in assistances and monthly housing assistances to assist the participants in being able to maintain their housing while working to increase income. b. Eligible cost will included crisis housing assistances and prevention services (arrears). Attachment A 5 c. Monitoring and coordination of the use of disbursement of financial assistances will be conducted monthly. d. Financial expenditures will be entered into Clarity (HMIS) anV documentation will be placed into client file. 15. Contractor shall submit a monthly report to the city of Downey by the 101h of Attachment A 6 I - 6 0 lilmommw Attachment A 2017-18 ACTION PLAN; « 2 �. . \. . � Community DevelopmentDepartment . � 77777 Brookshire Avenue & Downey, CJ 90241 (2�&76 . ( ) . May 23, 2017 ,....± �� ... ..�.. .... �.�...... ............... \ . .. � � { . . .. . . . . . .. . . . . . \ .. . .. .. :�:.�y. ...... .................. . ...... 2�«��6 ��.. �:m a�fy4«6v> ?#?2 AP -05 1f 91.220(b) This is the City's 3rd Annual Action Plan ("Action Plan") connected to the Consolidated Plan's 5 -Year cycle. The 5 -year Consolidated Plan ("ConPlan") was approved on May 26, 2015 and covers five (5) consecutive program years, from 2015 through 2020. This Action Plan serves as the City of Downey's annual application to the U.S. Department of Housing and Urban Development ("HUD") for federal Community Planning and Development ("CPD") funds. The relevant federal CPD grants include the Community Development Block Grant ("CDBG") and the HOME Investment Partnership Program ("HOME")grants. This Action Plan includes specific activities and projects which the City proposes to fund with federal resources expected during the next fiscal year. Each activity proposed in this Action Plan will be funded in whole or in part with funds obtained from HUD. During the program year, these funds are projected to benefit the City by providing a variety of activities that will provide the following: specialized public services to 4,400 to 4,800 residents, improve 28 housing units, counsel 250 persons on fair housing issues, funding for code enforcement, transitional housing to four (4) families, and rental assistance to 40 homeless or on the verge of becoming homeless individuals and/or families. In addition, Section 108 Loan Guarantee Program funds will be utilized to create Full -Time Equivalent ("FTE") jobs for at least 35 low- and moderate -income persons. Summarize the objectives and outcomes identified in the Plan The City of Downey has ambitious objectives for spending its federal entitlement grant funding. The City allocates these and other state funds to maximize assistance and meet the priorities established by the ConPlan; these priorities can be achieved through a combination of the following five (5) main activity groups: 1. Provide decent and affordable housing; 2. Maintain and promote neighborhood preservation; 3. Support special needs programs and services; 4: Economic development; and, 5. Grant administration. By focusing on these overall activity groups, the City seeks to address community concerns such as: Page 11 •< A need for additional affordable housing to address housing problems (i.e. overcrowding, overpayment, and substandard housing conditions for the City's low- and moderate -income households); •-A network of support services to prevent homelessness, transition homeless to permanent housing, and prevent homeless families; • The production of housing units made available to low- and moderate -income households; • Affordable housing through a homebuyer assistance program; Supportive services that fill the needs assessed in the community through the public services program; • Neighborhood preservation through the Code Enforcement program; and, • Programs and activities promoting economic development and the creation of full-time equivalent jobs for low- and moderate -income households. The objectives and outcomes for the priorities (needs assessment) are further detailed in the Action Plan. There are a total of 12 programs proposed utilizing the CDBG and HOME funding. During the next fiscal year, 100 percent of the total revenues will directly benefit low- and moderate -income households; however, when calculated over a three (3) year period, the percentage benefits to low- and moderate -income households will not be less than 90 percent. Evaluation of past performance The City of Downey provided decent and suitable housing through their Housing Rehabilitation Assistance Rebate and Grant Program. This program offered financial assistance in the form of a grant for owner -occupied residential units. Under the Housing Rehabilitation Assistance Grant Program, a homeowner is able to make the needed repairs to their homes. During FY 2016-17, the City will completed 15 projects and is expected to complete 28 during the proposed fiscal year. The City also provides financial assistance through a CDBG Subrecipient Program. During FY 2016-17, the City funded three (3) subrecipients and three (3) City administered programs. The three (3) CDBG Subrecipients were The Whole Child, The Arc of the Los Angeles and Orange Counties, and the Downey Unified School District. The Whole Child's ("TWC") mission is to give children of all ages the skills, support and security they need to build emotionally healthy lives and become caring, responsible adults. During FY 2016-17, TWC is provided housing services to ten (10) homeless families in Downey by providing community based housing, re -housing families in Downey, providing stabilization and linking families to supportive services to support families through the stabilization process. The Arc of Los Angeles and Orange Counties provides an employment services program that supports adults with disabilities to prepare for employment and make informed Page 12 choices about their work and careers while providing resources to pursue, obtain, and be successful in community employment. During FY 2016-17, the Arc assisted 25 persons. The Downey Unified School District funds two (2) programs: the 10/20 Club and the True Lasting Connections ("TLC") Family Resource Center. The 10/20 Club provides services to Downey youth who are considered to beat -risk of substance abuse, gangs, and other delinquent behaviors. The 10/20 club assisted 165 youths during FY 2016- 17. TLC utilizes CDBG funds to help uninsured Downey children obtain the glasses they need to see and succeed. During FY 2016-17, the TLC program assisted 66 low- and moderate -income students. The programs administered by the City of Downey Community Services Department are the After School Program for Information Recreation and Education ("ASPIRE") and the Senior First Monday Programs; the City's Library administers the Adult Literacy Program. The ASPIRE program's mission is to provide fun, safe and educational after school program that encourages the developmental growth of students grades K -8th. During FY 2016-17, the ASPIRE program served 95 students. The Senior First Monday meal program offers seniors a low cost daily lunch at the Barbara J. Riley Community and Senior Center. During FY 2016-17, over 10,000 meals were served to senior citizens and assisted 7,425 low- and moderate -income seniors. The Adult Literacy Program assisted approximately 124 persons. Finally, the City will implement a Rental Assistance Program to assist people who are homeless or on the verge of becoming homeless. The Rental Assistance Program will be administered by a few local nonprofit subrecipients: The Whole Child (TWC) and Jovenes. The City has committed $352,998 in HOME funds to the above mentioned subrecipients to provide homeless assistance or homeless prevention assistance through rapid rehousing, shallow subsidies, and preventative subsidies such as arrears. It will be the first year administering this program and does not have a previous performance to evaluate. Summary of Citizen Participation Process and consultation process As required by HUD, community members and nonprofit agencies were provided several opportunities to review and comment on the proposed Action Plan. Citizens were engaged through community meetings and public hearings. W.. 4 s Ii•. f. il., . r The notification process for this Action Plan included several components: first, the City published notices of meetings in the Downey Patriot. Second, public noticing provided Page 13 program descriptions, estimates of available funding, planned objectives, and a list of locations where copies of the Plan could be reviewed. Third, the draft Action Plan was available for public review 30 days prior to final approval _A copy of the Action Plan was available for public review at the following locations: • Downey City Clerk, 11111 Brookshire Avenue Downey Housing Division Office, 11111 Brookshire Avenue Downey City Library, 11121 Brookshire Avenue Downey City Web Site (www.downeyca.org) Public Meetings Citizens were encouraged to participate in the development of the Action Plan via a series of public hearings and community meetings. Participants in the process received information on the Action Plan, the citizen participation process, federal requirements, funding and revenue projections, and examples of how federal funds can be utilized. Residents were encouraged to provide City staff with their input on prioritizing the community needs. The City held two (2) public hearings and three (3) community meetings: the schedule was as follows: Tuesday, February 14, 2017, Downey City Hall — Public Hearing Tuesday May 23, 2017, Downey City Hall — Public Hearing Thursday, February 16, 2017, Barbara J. Riley—Community Meeting Wednesday, February 22, 2017, Barbara J. Riley— Community Meeting Saturday, March 4, 2017, Barbara J. Riley — Community Meeting • The City of Downey accepted all comments on the Action Plan and seeks to addresses many of the public's concerns and priorities as soon as possible. The lack of adequate funding to address all needs during the five (5) year period covered by the Consolidated Plan (2015-2020) means that not all priority needs can be addressed, or fully addressed. Public comments related to the City's process for funding, coordinating, and monitoring projects, programs, and services under the Action Plan were also accepted and will be considered in the City's review of its internal processes. All comments and/or views were accepted and considered inthe development of the Annual Action Plan. page 14 Summary The City of Downey will receive $980,589 in CDBG entitlement funds, and $333,925 in HOME funds; that is 4.6% less than the previous fiscal year in CDBG and almost one percent (1%) increase in HOME. The City is also proposing to use excess program income and prior year resources. The City of Downey's City Council approved the 2017-18 Annual Action Plan ("Action Plan") on May 23, 2017. At the Public Hearing, City Council was supportive of staff's recommendations for allocation of CDBG and HOME funding presented. A summary of those recommendations are as follows: The continued agreement to fund a first-time homebuyer program through the partnership with Neighborhood Housing Services, a nonprofit, that will assist between 2 new homeowners; Continued funding towards the Housing Rehabilitation Assistance Rebate and Grant programs to assist between 28 households; Fund the Economic Development Program to create 35 Full -Time Equivalent jobs for low- and moderate income persons; Continue funding the ARC of Los Angeles and Orange Counties to assist people with intellectual and developmental disabilities with job training and assisting them achieve their goals; Continue funding The Whole Child to assist with placing Downey homeless families in permanent housing; Continue funding the 10/20 Club to counsel at -risk youth; * Continue funding the True and Lasting Connections program through the Downey Unified School District to assist low- and moderate -income children with health screenings and reading glasses; Continue funding the ASPIRE program to assist low- and moderate -income children after school with homework; Provide Rental Assistance through local nonprofit subrecipients to assist homeless individuals and/or individuals and families who are on the verge of becoming homeless; and, Continue funding the Senior Meals Program to assist our senior population attain affordable and healthy meals every day. Page 15 Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source i • i The City of Downey's Community Development Department is the lead agency for overseeing the development and implementation of the Consolidated and Annual Action Plans. The Department coordinates the City's funding allocation and monitoring for community based organizations, administration of Federal funds, and operation of other housing and community service programs such as the Adult Literacy, ASPIRE, and the Senior First Monday meal program. Jose G. Vazquez, Management Analyst Housing and Economic Development Division Community Development Department 11111 BrookshireAvenue Downey, CA 90241 (562) 904-7161 Will I r • ■ ` 1 • i • if1 iii• `` In the preparation of the Action Plan, the City consulted with public and private agencies and nonprofit organizations to understand the community's needs and available resources. The City met with several department representatives to provide information about the Action Plan and its process. Department staff provided input on how CDBG resources could be used and leveraged to provide services. Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1)) The Housing Authority of Los Angeles County administers the Section 8 Voucher program. Activities to be undertaken by the Housing Authority are identified in the Public Housing Agency ("PHA") 5 -Year and One Year Action Plans. The residents are invited each year to contribute to the drafting of the Housing Authority's Plan. The City works closely with the Housing Authority of Los Angeles County to qualify community residents for Section 8 Housing Vouchers. The City provides information on the availability of Section 8 assistance to qualify residents. Other key health, mental health, and service agencies that the City works closely with are listed in the next section. Each was consulted during the City's Action Plan Process. Describe coordination with the Continuum of Car and "efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness The City of Downey is a part of the countywide Los Angeles Continuum of Care ("LACoC"), Coordinated by the LAHSA, a joint powers authority. LAHSA-partners with cities to provide homeless services throughout the county. The City periodically reviews the Continuum of Care homeless system to assist in eradicating homelessness within the City. In addition, the City will be entering into three (3) subrecipient agreements with homeless service providers to assist individuals and families who are experiencing homelessness or are on the verge of becoming homeless find permanent housing. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocated ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS In the preparation of the Action Plan, the City consulted with public and private agencies, as well as nonprofit organizations to understand the community's needs and Page 17 available resources. City staff also met internally with several department representatives to provide information about the Action Plan and its process. Department staff provided input regarding how CDBG resources could be used and leveraged to provide services. The Housing Authority of Los Angeles County administers the Section 8 Voucher program. Activities to be undertaken by the Housing Authority are identified in the Public Housing Agency ("PHA") 5 -Year and One Year Action Plans. The residents are invited each year to contribute to the drafting of the Housing Authority's Plan. The City works closely with the Housing Authority of Los Angeles County to qualify community residents for Section 8 Housing Vouchers. The City provides information on the availability of Section 8 assistance to qualifying residents. Other key health, mental health, and service agencies that the City works closely with are listed in the Section 2 of AP -10 Consultation. Each was consulted during the City's Action Plan Process. The City of Downey is a part of the countywide Los Angeles Continuum of Care ("LACoC"), Coordinated by the LAHSA, a joint powers authority. LAHSA partners with cities to provide homeless services throughout the county. The City periodically reviews the Continuum of Care homeless system to assist in eradicating homelessness within the City. The City of Downey does not receive ESG funding and supports the network of homeless service providers existing in and outside of Downey. Describe Agencies, groups, organizations and others who participated in process and describe the jurisdiction's consultations with housing, social service agencies and other entities Page 18 I 14 +`i o 0 a) c2 4- On m . 0 -a -'a .2 > (U +, i5 m c u-OEw c= (u ucm -oc: = M E 4- Ln :3 m 41 t!cu 0 -0 :3 4- Ln '- Tu > 41 -0 E E w m E E E E -S cu 4T L- 0 E t!o m -I- -0 E -0 4- U L- , -, c Ln-5 a) +1 u " C aj m CU a = 4- 0 W a) = +1 V) 3: In 4� 4- w — +1 c -0 M (U 0 -0 -0 E u C: m 0 -0 M -0 c -0 -D m 0- Ln M > M (A c uE :3 a) :3 C: m 0 :3 C 4- 4- *- a) 0 0 -5 E +1 U M -0 -C 0 0 a) E 4- = M Ln 0 _0 'n m 0 V, w - 0) w U m 0 w 0 CU u c 0 4� Q) 3: _ m _C _ +� aQ) , (A c 0- •a w M " m 12 -@ bp m a) L- -0 c N a) 0 -E -c- E -0 v, a) .2 E a) u :E m :L--J 0 "a--j OM +-1 m :t 0 c u On 3: -C 0 u <u LED tmw 0 E u < L- 0 4- U a) M +, -C E 4� M C: 0 = -9-- - W U M M 4� 0 c= E L- 0 >. 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I 14 +`i 4 iT44[Cs XM k - WAll 11 SUSIT1:46 K414161to I ION a M1 In the preparation of the Annual Action Plan, the City has consulted with public and private agencies and non-profit organizations to understand the community's needs and available resources. The City met with Kingdom Causes and determined that additional resources were needed to reduce homelessness for individuals and families. In addition, they provided ideas and information regarding a fund gap between recidivism and employment services for previously incarcerated individuals. Other homeless agencies were not consulted since the City already funds these type of services. • • • • • preparing 1< -A enc /Grou /Or anization Agency/Group/Organization Type What section of the Plan was addressed by Consultation? Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The Whole Child Housing Services Housing Services -Children Services -homeless Services -Health Services -Employment Child Welfare Agency Homeless Needs - Families with children In the preparation of the Annual Action Plan, the City has consulted with public and private agencies and non-profit organizations to understand the community's needs and available resources. The City met with The Whole Child and determined that additional resources were needed to reduce homeless families. In addition, it was determined that a program is needed to fund the gap between homeless families/families on the verge of becoming homeless and housing assistance. Page 110 2 Agency/Group/Organization Agency/Group/Organization Type What section of the Plan was addressed by Consultation? Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Narrative (Optional) r KINGDOM CAUSES BELLFLOWER Housing 'Services Housing Services -homeless Services -Health Services -Employment Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Strategy In the preparation of the Annual Action Plan, the City has consulted with public and private agencies and non-profit organizations to understand the community's needs and available resources. The City met with Kingdom Causes and determined that additional resources were needed to reduce homelessness for individuals and families. In addition, they provided ideas and information regarding a fund gap between recidivism and employment services for previously incarcerated individuals. Page 111 EO v 3 � a0 c .> U m v _� o. 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"� > V A V/ V/ A V `d A \/ `d A '� A •,•J \/ : a i•�•1 Q -.'N •�...cu Nen �n L 1�• c 3 m� v L a With its CDBG and NOME funds, the City of Downey will fund eligible projects based on the following goals: Provide decent affordable housing, maintain and promote neighborhood preservation, support special needs programs and services, economic development, and grant administration. Projects # Pro'ect Name 1 HOUSING REHABILITATION PROGRAM 2 HOUSING REHABILITATION ADMINISTRATION 3 PUBLIC SERVICES 4 FAIR HOUSING PROGRAM 5 CODE ENFORCEMENT 6 SECTION 108 LOAN PAYMENT 7 HOME -GENERAL ADMINISTRATION 8 CDBG - GENERAL ADMINISTRATION 9 HOUSING PRODUCTION 10 ECONOMIC DEVELOPMENT 11 HOMEBUYER ASSISTANCE PROGRAM 12 Rental Assistance Program Table 3 — Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs: The City of Downey's allocation priorities are informed by the priorities of its local key stakeholders as a result of the City's community planning process. The City's citizen participation plan engages key stakeholders that include: residents and leaders of low- income neighborhoods, community-based organizations (including community building associations, nonprofit social service providers, supportive housing providers, and affordable housing developers), advocacy groups, elected and appointed officials, etc. For example, many of these key stakeholders are members of the Continuum of Care, which helped develop the CDBG Public Service funding priorities._ Some of these priorities include: senior meal program, services for individuals and families experiencing homelessness or on the verge of becoming homeless, fair housing and tenant/landlord services, and services for seniors/persons with disabilities. Additionally, key stakeholders ranked high the priorities of spurring economic development through the creation and retention of jobs for low- and moderate -income persons, as well as improving the existing stock of affordable housing for both families and senior citizens. Page 118 The primary o •stac e to meeting un•erserve•nee s is t e availa•i ity o un•ing. The availability of funding from both Federal and State sources is a key determinant of Downey's ability to address identified needs. To make the most of limited resources, the City has formed partnerships with a variety of governmental, nonprofit and service I • • WIS- community development needs. Project Name HOUSING REHABILITATION PROGRAM Target Area City Wide CDBG Eligible Areas Goals Sppported Provide decent affordable housing Needs Addressed Provide decent affordable housing Funding CDBG: $1,420,863 HOME: $383,925 Description Provide decent and affordable housing units through the Rehabilitation Assistance Grant Program. Target Date Estimate the number It is estimated that approximately 28 low- and moderate - and type of families income homeowners will benefit from this program. that will benefit from the proposed activities Location Description Planned Activities Provide Grants to Low- and Moderate -income households to rehabilitate the existing residence. Some of the activities that qualify under the Rehabilitation Assistance Program are Code Violations, bringing substandard properties to conformance, lead and asbestos abatement, exterior and interior painting, weatherstripping, reroof, window change -out, flooring replacement, kitchen and bathroom remodel, addressing health and safety concerns, and the enhancement of energy and water efficiency. 2 Project Name HOUSING REHABILITATION ADMINISTRATION Tar et Area City Wide Goals Supported Provide decent affordable housing Maintain and promote neighborhood preservation Support special needs programs and services Grant Administration Needs Addressed Provide decent affordable housing Maintain and promote neighborhood preservation Support special needs programs and services Page 120 Funding CDBG: $1,420,863 HOME: $383,925 Description Administration of rehabilitation programs. T rizet Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities Planning and Administration. 3 Prosect Name PUBLIC SERVICES Target Area CDBG Eligible Areas Goals Su orted Support special needs programs and services Needs Addressed Support special needs programs and services Fundin CDBG: $1,420,863 Description CDBG ALLOCATION RESERVED FOR PUBLIC SERVICE ACTIVITIES INCLUDING GRANTS TO COMMUNITY SERVICE PARTNERS AND INTER CITY PROGRAMS Tar et Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities The Arc—services persons with intellectual and developmental disabilities, expected to serve 15 individuals; ASPIRE—an afterschool program, expected to serve 100 individuals; Adult Literacy Program — literacy instruction to adults, expected to serve 25 individuals; 10/20 Club — provides counseling to at -risk youth, expected to serve 100 individuals; TLC Program — provides health screenings to children, expected to serve 50 individuals; First Monday/ Meal Program — provides lunch & diner to seniors, expected to serve 100 individuals; The Whole Child— provides transitional housing to families, expected to serve 4 households. Senior Center —provides services to seniors, expected to serve 4,000 individuals. 4 Project Name FAIR HOUSING PROGRAM Page 121 Tar et Area City Wide Goals Su orted Support special needs programs and services Needs Addressed fair Housing Funding CDBG: $1,420,863 Description This program provides Fair Housing information counseling, landlord/tenant mediation, educational workshops, investigation services, and referrals to promote Fair Housing. Target Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities For FY2017-18, the City has planned to contract the Fair Housing Foundation to provide fair housing services to all residents. 5 Proiect Name CODE ENFORCEMENT TaretArea CDBG Eligible Areas Goals Supported Maintain and promote neighborhood preservation Needs Addressed- Maintain and promote neighborhood preservation Fundin CDBG: $1,420,863 Description Program provides inspections of non -conforming and substandard properties in low- and moderate -income areas. Tar et Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities During FY2017-18, the Code Enforcement Division will assist approximately 250 persons to counsel, maintain and promote neighborhood preservation, and refer to the City's Rehabilitation Assistance Program to those who qualify as low - and moderate -income households. 6 Project Name SECTION 108 LOAN PAYMENT Target Area City Wide _CDBG Eligible Areas Page 122 Goals Supported Economic Development Needs Addressed Support special needs programs and services Fundin Description Accrued interest and principle due on two (3) existing Section 108 loans from the U.S. Department of Housing and Urban Development (HUD)._,_ Target Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities Repayment of three (3) Section 108 Loans. 7 Proiect Name HOME - GENERAL ADMINISTRATION Target Area City Wide CDBG Eligible Areas Goals SUDDorted Grant Administration Needs Addressed Fundinor HOME: $383,925 Description 10 percent of HOME Entitlement allocated for program administration expenditures. Target Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities Grant administration of HOME funds. 8 Pro'ectNae CDBG -GENERAL ADMINISTRATION Target Area City Wide CDBG Eligible Areas Goals Supported Grant Administration Needs Addressed Funding CDBG: $1,420,863 Page 123 Page 124 Description 20 percent of CDBG Entitlement allocated for program administration expenditures. Target Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities The grant administration of CDBG funds. 9 Project Name HOUSING PRODUCTION Target Area CDBG Eligible Areas Goals Su orted Provide decent affordable housing Needs Addressed Provide decent affordable housing Funding HOME: $383,925 Description CHDO activities to develop or sponsor affordable housing for low- and moderate -income households. Tar et Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities The development of one (1) housing unit. 10 Proiect Name ECONOMIC DEVELOPMENT Tar et Area_ City Wide Goals Supported Economic Development Needs Addressed Support special needs programs and services Funding CDBG: $1,420,863 Description The creation of 17 Full Time Equivalent (FTE) jobs for low- and moderate -income households. Target Date Page 124 Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities During FY 2017-18, the City of Downey is planning to create additional Full -Time Equivalent jobs for low- and moderate - income persons by assisting local businesses with their expansions or eliminating blight. 11 Project Name HOMEBUYER ASSISTANCE PROGRAM Target Area City Wide CDBG Eligible Areas Goals Supported Provide decent affordable housing Maintain and promote neighborhood preservation Needs Addressed Provide decent affordable housing Maintain and promote neighborhood preservation Funding HOME: $383,925 Description This program provides loans to assist low- and moderate= income households purchase a'home in the City of Downey. This program is in a partnership with Neighborhood Housing Services (NHS); loan amounts for homebuyers shall be determined by the need to afford a home in Downey. Loans shall be deferred for 30 years at 3% simple interest per annum. Target Date Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities The continuation of the City's 1st Time Homebuyer program in partnership with Neighborhood Housing Services. The assistance will provide approximately six (6) new low- and moderate -income homebuyers in Downey. 12 Project Name Rental Assistance Program Tar et Area City Wide Goals Supported Provide decent affordable housing Support_ special needs programs and services Page 125 Needs Addressed Provide decent. affordable housing Support special needs programs and services Fundi HOME: $383,925 Description The Rental Assistance Program is a program designed to help individuals and families who are homeless or are on the verge of becoming homeless. Target Date __ 6/30/2018 Estimate the number and type of families that will benefit from the proposed activities Location Description Planned Activities ` f - r; •Wir • Description of the geographicof of • • Pnd minority concentration) where assistance will be directed The City of Downey is located in the heart of Southern California; situated 12 miles southeast of the Los Angeles Civic Center, 5 miles from Orange County, and about 10 miles from the beautiful Pacific coastline. The map shows the concentrated areas of low-income households, where median household incomes are below 80 percent of the area's median income; these areas are classified as CDBG census tracts and will be the focus of assistance during the program year. In the funding of all projects, and in providing assistance to specific beneficiaries, the City will ensure: • Documentation of the low- and moderate -income status of households/individuals; • The area where a project benefit will be realized has a population where at least 51 percent of the residents are low- and moderate -income; and/or, • A slum and blight development meets the criteria as described in HUD regulations. Target Area Percentage of Funds CDBG Eligible Areas 25% City Wide 75% Downey will use a place -based strategy during the planning period. The geographic distribution of funding is predicated somewhat on the nature of the activity to be funded. It is the City's intent to fund activities in the areas most directly affected by the needs of low-income residents and those with other special needs. The Annual Action Plan directs investment geographically to an area benefit neighborhood. The area benefit category is the most commonly used national objective for activities that benefit a residential neighborhood. An area benefit activity is one that benefits all residents in a particular area, where at least 51% of the residents are low- and moderate -income persons.- Public infrastructure improvements are an area benefit activity when they are located in a predominately low- and moderate -income neighborhood. Page 127 Most of the CDBG and/or HOME -funded programs and services are provided on a citywide basis to income -eligible and/or special needs households. Certain capital projects are assisted at a specific site, based on the location of the project, but projects may be proposed in any area of the City. Human services are supported in a number of facilities and locations throughout the City, and in some cases just outside the City, as longus Downey residents are being served by the program. In order to avoid concentration of poverty, affordable housing assistance is provided anywhere in the City; this ensures fair access to affordable rental housing, rehabilitation assistance, and homeownership opportunities in all neighborhoods. The City is always looking to improve blighted areas requiring major redevelopment, and private development throughout the City. Community resources such as parks, schools, and community/neighborhood centers are also dispersed throughout the City. Page !28 i : i i ' t' •marZEMM a. The section specify goals for the number of homeless, non -homeless, and special needs households to be provided affordable housing within the program year. The plan also indicate the number of affordable housing units that will be provided by program type, including rental assistance, production of new units, rehabilitation of existing units, or acquisition of existing units. For the purpose of this section, the term "affordable housing" is defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership. Homeless: 20 Non -Homeless: -20 Special Needs: 0 Total: 40 Rental Assistance: 40 The Production of New Units: 6 Rehab of Existing Units: 28 Acquisition of Existing Units: 2 Total: 76 Discussion: The City of Downey is expected to assist approximately 24 homeless households and 20 non -homeless households with rental assistance. The City will complete the development of a six (6) unit townhome project which will be sold to low- and moderate income homebuyers. In addition, through the City's homeowner Rehabilitation Assistance Grant Program, it is expected to rehabilitate 28 homes. The partnership with Neighborhood Housing Services (NHS) is expected to produce the acquisition of two (2) units for first-time homebuyers. Page 129 This section describes what actions the City will take in the given program year to carry out the public housing portion of the Strategic Plan. The City must identify the manner in which its plan will address the needs of public housing during the program year. If the public housing agency is designated as "troubled" by HUD or otherwise is performing poorly, the jurisdiction must describe the manner in which it will provide financial or other assistance to improve the operations of the public housing agency to remove such a designation. In this case, The City of Downey does not own or manage public housing. Actions planned during the next year o address the needs to public Not applicable, Actions to encourage public housing residents o become more involved in management and participated in homeownership: Not applicable. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance: Not applicable: Not applicable. P g e 130 Homelessness is a critical issue for all jurisdictionsthroughout the San Gabriel Valley and Los Angeles Metropolitan regions. Every community has a homeless population and providing adequate housing and services is a significant challenge. The individuals who are homeless are typically affected by a complex set of unmet social, economic, and housing needs. These needs may include affordable housing, stable employment, treatment of medical conditions, childcare assistance, credit history, adequate rental assistance, and treatment of substance abuse and/or mental illness. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs: The City will coordinate as needed with the Los Angeles Homeless Services Authority (LAHSA), Housing Authority of the County of Los Angeles (HACOLA) and financially support local nonprofits through CDBG funds to eradicate homelessness in Downey. In addition, the City will enter into Subrecipient Agreements with nonprofit organizations to administer a Rental Assistance Program and assist homeless people or individuals who are on the verge of becoming homeless. The types of programs provided will be in the form of rapid rehousing and preventative subsidies such as paying for arrears and/or providing shallow subsidies. The City of Downey participate as an Opt -in community in the Greater Los Angeles Homeless Count Report authored by LAHSA. The Opt -In Program provides local jurisdictions with homeless count numbers specific to their area or city allowing them to obtain local homeless count information to more effectively address local homelessness and to report progress to federal, state, and county agencies to meet funding requirements. Prior to the 2009 homeless count, the methodology did not support this need. Beginning in 2009, the study methodology was enhanced to enable opt -in cities/communities to coordinate a homeless count within their borders using locally recruited volunteers from public and private agencies. In total, 35 areas consisting of 28 cities and seven communities enumerated all of their census tracts = including the City of Downey. Using the results from the LAHSA shelter and youth counts, cities are able to estimate a point -in -time number of the homeless families and individuals who are sheltered and unsheltered in their jurisdictions. Page 131 Addressing the emergency shelter and transitional housing needs of homelesspersons As of 2016, the Housing Authority of the County of Los Angeles counted 209 individuals experiencing homelessness; of those, 200 were living on the street and 9 were sheltered. The state legislature thus enacted Senate Bill 2 to address this need, which allows for a continuum of housing opportunities for homeless people, including emergency shelter, transitional housing, and permanent supportive housing. Emergency Shelters. Emergency shelters are the first step in a homeless continuum of care program and are designed to allow homeless people a temporary place of stay. As of 2014, the Development Code was amended to define this use and permit an emergency shelter in the community; Transitional Housing. Transitional facilities typically accommodate homeless people for up to two years as they stabilize their lives. The City allows transitional facilities serving six or fewer residents in any residential zone, and has clarified the definition of facility in the Development Code; and, Supportive Housing. Supportive housing is affordable housing with `on-site "or off-site services that help a person or family with multiple barriers to employment and housing stability. As of 2014, the Development Code was amended to define supportive housing and permit such facilities in the community. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again: The City will review and provide comments as needed to continue to fund a wide variety of nonprofit organizations providing services for homeless people through the Annual Action Plan process. In addition, the City will continue to coordinate with the Los Angeles Homeless Services Authority (LAHSA), County of Los Angeles Housing' Authority and financially support local nonprofits through CDBG in eradicating homelessness in Downey. Page 132 Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The City will be entering into three (3) separate subrecipients with local nonprofit agencies that will assist individuals, families, and youth who are experiencing homelessness or are on the verge of becoming homeless. The type of assistancewill be provided through the subrecipients rapid rehousing and preventative subsidies program. In addition, the Homeless Prevention and Rapid Re -housing Program (HPRP) service to individuals and families with children is administered through Los Angeles County. HPRP is a once in a lifetime program that provides temporary assistance and stabilization services to either help those who are experiencing homelessness to be quickly re -housed and stabilized (rapid rehousing) or prevent eligible very low income individuals and families from becoming homeless (prevention). If eligible for L.A. County's HPRP, monetary assistance is paid directly to the landlord and/or utility company for expenses such as security deposits, utility turn -on fees and back -due rent and/or utilities (gas/electric only). Tobe eligible for the L.A. County program, callers must be either homeless or at risk of becoming homeless, and beat or below 50 % of Area Median Income (AMI) and not eligible for CalWORKs or General Relief. The household must also have the ability to maintain their housing after HPRP assistance is provided. Discussion: Homelessness is a critical issue for all jurisdictions throughout the San Gabriel Valley and Los Angeles Metropolitan regions. Every community has a homeless population and providing adequate housing and services is a significant challenge. The individuals who are homeless are typically affected by a complex set of unmet social, economic, and housing needs. These needs may include affordable housing, stable employment, treatment of medical conditions, childcare assistance, credit history, adequate rental assistance, and treatment of substance abuse and/or mental illness. As of 2016, the Housing Authority of the County of Los Angeles counted 209 individuals experiencing homelessness; of those, 200 were Living on the street and 9 were sheltered. The state legislature thus enacted Senate Bill 2 to address this need, which allows for a continuum of housing opportunities for homeless people, including emergency shelter, transitional housing, and permanent supportive housing. The City will coordinate as needed with the Los Angeles Homeless Services Authority (LAHSA), Housing Authority of the County of Los Angeles (HACOLA) and financially P` a g e 133 support local nonprofits through CDBG funds to eradicate homelessness in Downey. In addition, the City will enter into Subrecipient Agreements with nonprofit organizations to administer a Rental Assistance Program and assist homeless people or individuals who are on the verge of becoming homeless. The types of programs provided will be in the form of rapid rehousing and preventative subsidies such as paying for arrears and/or providing shallow subsidies. Finally, the City will review and provide comments as needed to continue to fund a wide variety of nonprofit organizations providing services for homeless people through the Annual Action Plan process. In addition, the City will continue to coordinate with the Los Angeles Homeless Services Authority (LAHSA), County of Los Angeles Housing Authority and financially support local nonprofits through CDBG in eradicating homelessness in Downey. Page 134 The Consolidated Plan identified a variety of barriers to the provision of affordable housing and also provided a strategy to address barriers. Outlined below are steps the City has identified it will undertake during the 2015-2020 planning period in an effort to overcome barriers: The City will utilize a number of policies intended to provide additional flexibility in housing site planning and promote more intense development where appropriate. The City's Housing Sites Inventory Program helps ensure that the City continuously monitors available sites in the area that may be appropriate for residential uses. A density floor is another tool that can be used to promote the maximum use of residential land. The density floor would establish a minimum density requirement within a given residential land -use designation. The availability of developable acreage in upper density ranges allows for the development of certain types of housing. Actions it planned to removed or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment: In 2008, the City adopted a comprehensive update to the Zoning Code, which included an updated density bonus program that is consistent with State law. During the planning period, a 50 -unit affordable housing project, Downey View, utilized a density bonus to construct 35, two bedroom apartments and 15 three-bedroom apartments all affordable to low income residents. This program is essential to the development of affordable units, as it allows developers the flexibility to construct at densities above what is allowed by the Municipal Code. • i ; i4 Continue to encourage Planned Unit Developments as a means to provide affordable housing through creative land use techniques. Inform developers of the density incentives under the program. Throughout the planning period, the City continued to encourage projects pursuant to its Planned Unit Development process. During the planning period a project containing 46 units located near Lakewood Boulevard and Gallatin Road utilized a PUD to facilitate decreased setbacks and increased heights to obtain approval for new multifamily units. Page '135 The Community Development Department will continue to monitor permit processing times and investigate ways to streamline. The Department will continue to review information including building permits and the Zoning Code. The City continued to offer streamlined development processing throughout the planning period, and continuously facilitates inter -departmental collaboration to ensure that the application process is as efficient as possible. In 2010 the City also implemented new permitting software by Accela which allows quicker review times and centralized document access. The City is proposing to allocate a total of $352,998 to a Rental Assistance Program to assist homeless individuals and/or people who are on the verge of becoming homeless. For homeless individuals or families, the Rental Assistance Program will assist through rapid rehousing. For individuals or families who are on the verge of becoming homeless, the Rental Assistance Program will assist through preventative subsidies such as paying for arrears and/or providing shallow subsidies. Discussion: The Consolidated Plan identified a variety of barriers to the provision of affordable housing and also provided a strategy to address barriers. The City will utilize a number of policies intended to provide additional flexibility in housing site planning and promote more intense development where appropriate. The City's Housing Sites Inventory Program helps ensure that the City continuously monitors available sites in the area that may be appropriate for residential uses. A density floor is another tool that can be used to promote the maximum use of residential land. In addition, the City will continue to encourage Planned Unit Developments as a means to provide affordable housing through creative land use techniques. Inform developers of the density incentives under the program. The Community Development Department will continue to monitor permit processing times and investigate ways to streamline. The Department will continue to review information including building permits and the Zoning Code. Finally, the City is proposing to allocate a total of $352,998 to a Rental Assistance Program to assist homeless individuals and/or people who are on the verge of becoming homeless. For homeless individuals or families, the Rental Assistance Program will assist through rapid rehousing. For individuals or families who are on the verge of becoming homeless, the Rental Assistance Program will assist through preventative subsidies such as paying for arrears and/or providing shallow subsidies. Page 136 i • I The City of Downey uses a range of strategies to address the housing, homeless, and community development goals identified in the Consolidated Plan. This section discusses actions planned to foster and maintain affordable housing, to reduce of lead- based paint hazards, to reduce the number of poverty level families in Downey, to create low- and moderate -income jobs, and to coordinate activities in these areas with other entities. Actions planned to address obstacles to meeting underserved needs: One of Downey's major obstacles to meeting underserved needs is the limited amount of federal, state, and local resources available given the diversity of needs in the community. The City of Downey will continue to pursue new State and Federal resources as available to meet underserved needs. The City has also taken actions to address obstacles to meeting underserved needs, such as embarking on new programs to generate local funds for low- and moderate -income households through new development or creation of full-time equivalent jobs. Actions planned to foster and maintain affordable housing: To encourage developers to pursue projects providing low- and moderate -income housing, California has provided regulations to govern the approval process, permitting greater density for affordable housing projects that include additional incentives to the developer. The City utilizes this Density Bonus Ordinance to encourage developers interested in additional density or incentives to develop a portion of their market rate project as affordable to low- and moderate -income households to meet the state housing requirements. In addition, it is planned to provide rental assistance to assist those individuals and families who are on the verge of becoming homeless and are struggling to pay rent. Actions planned to reduce lead-based paint hazards: Lead poisoning education and abatement efforts in Downey are provided through the cooperative efforts of the County Public Health Department. The abatement of lead- based hazards is a vital component of the City of Downey's Housing Rehabilitation Assistance Program. All housing rehabilitation projects are assessed for lead based paint and lead based paint abatements are performed by licensed contractors. In accordance with federal regulations and the City of Downey's policy regarding the identification of lead-based paint hazards, all housing built prior to 1978 must undergo lead based paint testing prior to receiving funding for rehabilitation. If deteriorated Page 137 lead-based paint surfaces are found, it must be stabilized during the rehabilitation of the property. Abatement must be performed by a certified lead-based paint professional and a Clearance Inspection must be issued by the certified lead-based paint assessor prior to the issuance of the Notice of Completion. Actions planned to reduce the number of poverty -level families: Goal: To reduce poverty level incomes below current levels by 2020. Downey's antipoverty strategy is closely aligned with the goals and objectives of the overall affordable housing plan. These goals include: reducing poverty, creating new and affordable housing, developing and promoting services for at -risk populations, expanding job training and opportunities, and providing public and social services. The City will also continue partnering with organizations to provide a continuum of services addressing the full range of needs of low- and moderate -income families. All communities share a goal to eradicate poverty. The City recognizes that a goal to reduce poverty will contribute to the economic wellbeing of individuals and families. The families whose income increases above the poverty level will be able to live independent of public and private assistance. Downey will also work to identify those individuals of below moderate income to refer to any new economic development project sponsored by the City. As a result, in Fiscal Year 2015-16, the City entered into an Operating Covenant Agreement to assist Downey Nissan with $2,250,000 for the relocation and expansion of their facility; of which, $1,000,000 would come from HUD's Section 108 Loan Program. The assistance would create a minimum of 35 Full -Time Equivalent jobs for low- and moderate -income persons. Nissan shall accomplish the job creation criteria by May 2019. Actions planned to develop institutional Structure'. The City of Downey's Housing Division will administer all of the activities specifically identified in the investment plan. The City works closely with other housing -related organizations and service providers in the County to ensure that the housing needs of City residents are addressed to the best ability of the network of such providers given available resources. The City's Community Development Department worksin conjunction with the Housing Authority to ensure quality housing for all low-income City residents. The working relationships between these organizations are strong and facilitative.- Due to the City's relatively small size, communication is typically direct and immediate. As a result, gaps in program or service delivery are typically not the result of poor institutional structure or lack of intergovernmental cooperation, but rather due to shortcomings in available resources. Page 138 Actions planned to enhance coordination between public and private housing and social service agencies: The City's Community Development Department maintains primary management of as well as the coordination of the various organizations involved in these processes. The staff within the Department works closely with other City departments and the community to develop programs and activities that improve low- and moderate -income neighborhoods throughout Downey. The administration of program activities includes housing, public facility and infrastructure improvements; in addition, public and social service activities, and economic development activities. The City collaborates with public agencies, for-profit and non-profit organizations, in order to provide the aforementioned programming and services. Discussion: The City of Downey uses a range of strategies to address the housing, homeless, and community development goals identified in the Consolidated Plan. One of Downey's major obstacles to meeting underserved needs is the limited amount of federal, state, and local resources available given the diversity of needs in the community. The City of Downey will continue to pursue new State and Federal resources as available to meet underserved needs. To encourage developers to pursue projects providing low- and moderate -income housing, California has provided regulations to govern the approval process, permitting greater density for affordable housing projects that include additional incentives to the developer. The City utilizes this Density Bonus Ordinance to encourage developers interested in additional density or incentives to develop a portion of their market rate project as affordable to low- and moderate -income households to meet the state housing requirements. In addition, it is planned to provide rental assistance to assist those individuals and families who are on the verge of becoming homeless and are struggling to pay rent. Lead poisoning education and abatement efforts in Downey are provided through the cooperative efforts of the County Public Health Department. The abatement of lead-based hazards is a vital component of the City of Downey's-Housing Rehabilitation Assistance Program. Downey's'antipoverty strategy is closely aligned with the goals and objectives of the overall affordable housing plan. These goals include:_ reducing poverty, creating new and affordable housing, developing and promoting services for at -risk populations, expanding job training and opportunities, and providing public and social services. The City will also continue partnering with organizations to provide a continuum of services addressing the full range of needs of low- and moderate -income families. Downey will also work to identify those individuals of below moderate income to refer to any new economic development project sponsored by the City. As a result, in Fiscal'Year 2015 16, the City entered into an Operating Covenant Agreement to assist Downey Nissan with $2,250,000 for the relocation and expansion of their facility; of which, $1,000,000 would come from HUD's Section 108 Loan Program. The assistance would create a Page 139 minimum of 35 Full -Time Equivalent jobs for low- and moderate -income persons. Nissan shall accomplish the job creation criteria by May 2019. Finally, the City of Downey`s Housing Division will administer all of the activities specifically identified in the investment plan. The City works closely with other housing -related organizations and service providers in the County to ensure that the housing needs of City residents are addressed to the best ability of the network of such providers given available resources. Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. Reference 24 CFR 91.220(1)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have 0 been received before the start of the next year program year and that has not yet been reprogrammed. 2. The amount of proceeds from section 108 loan 0 guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 3. The amount of surplus funds from urban renewal 0 settlements 4. The amount of any grant funds returned to the line 0 of credit for which the planned use has not been included in a prior statement or plan. 5. The amount of income from float -funded activities D Total Program Income: 0 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will 100 be used for activities that benefit persons of low and moderate -income Overall Benefit = A consecutive period of one, two or three years may be used to determine that a minimum Page 141 overall benefit of 70% of CDBG funds is used to benefit persons of low- and moderate -income. _ Specify the years covered that include this Annual Action Plan. HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(1)(2) The jurisdiction must describe activities planned with HOME funds expected to be available during the year. All such activities should be included in the Projects screen. In addition, the following information should be supplied: 1. A description of other forms of investment being used beyond those intensified in Section 92.205 is as follows: Funding from Housing Successor agency funds will be used to supplement the Housing Rehabilitation Assistance program and programs/activities that will benefit low- and moderate -income persons and/or affordable housing. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: HOME Resale & Recapture Guidelines July 1, 2017= June 30, 2018 24 CFR 92.254 (a) (4) HOMEBUYER ASSISTANCE PROGRAM Homebuyer Assistance activities will utilize option (ii), recapturing its full HOME investment out of the net proceeds. Homeownership assistance will be furnished as a deferred loan (silent second) typically with three (3%) percent simple_ interest rate and loan amounts based on gap financing determinations. These loans will have a five (5) to 15 year affordability period and a loan term with no monthly payment of principal or accrued interest. The loan must be repaid at the end of the set term or sooner if the property is sold, transferred, refinanced, or upon a change in title to the property. P a g,e 142 The net proceeds recaptured after sale of the property would be the sales price minus loan repayments, closing costs, and the interest accrued over the loan term. Should the net proceeds be insufficient to repay both the HOME investment by the City and the homeowner's investment, the City will recapture the full net proceeds. HOUSING DEVELOPMENT - CHDO's Downey's Housing Develop ment/CHDO Program will utilize resale option (1) requiring the sale of the assisted property to a subsequent qualified low income purchaser using the property as their principal residence. The sale of the property by the original first-time homebuyer to a subsequent purchaser during the period of affordability will be accomplished in a manner that will allow the seller to receive a fair return on investment, while ensuring that the property will be affordable to the subsequent purchaser. The net proceeds recaptured after the sale of the property would be the sale price minus loan principal repayments, closing costs, and the any interest accrued over the term of the loan. These loans will have a five (5) to 15 year affordability period and a loan term with no monthly payment of principal or accrued interest. In order to qualify economically, the gross income of the person and his or her family shall not be more than 80 percent of the then current median income in Los Angeles County, adjusted for family size, as determined by HUD. Also, affordable purchase price to the subsequent buyer means that monthly payments of principal interest, property taxes and insurance is initially 30 percent of the proposed transferee's gross income. On a case by case basis, this threshold limit can be up to 32 percent of the household income. 1. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: Not Applicable. 1. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: Not Applicable. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: Notapplicable. - Page 143 • 1--kt--mswel • housing that is rehabilitated with HOME funds along with a description of the follows: I=- .r• .► 2333=