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;
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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
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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
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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.
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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:
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