HomeMy WebLinkAbout01. Receive Public Comment on Federal CDBG & Home Inv Partnership Prog 2019-20iteM
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TO: • t •- AND MEMBERS OF •
FROM: OFFICE OF
BY: ALDO E. SCHINDLER, DIRECTOR OF COMMUNITY DEVELOPMENT
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That the City Council receive public comment on the Community Development Block Grant and
HOME Investment Partnership Programs for Fiscal Year 2019-2020.
The City of Downey is an entitlement grantee eligible to receive federal grant funds under the
Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME)
Program. These grants are allocated to the City annually by the U.S. Department of Housing
and Urban Development (HUD). The grants are available for a variety of activities which
address the City's needs in areas of affordable housing, neighborhood improvement, economic
development, public services, and community facilities.
In order to receive these grants, HUD requires that the City have an approved 5 -year
Consolidated Plan and annually prepare a new Action Plan. On May 26, 2015, the City Council
approved the current 5 -year Consolidated Plan, which covers the period from July, 2015
through June, 2020. In each year of the 5 -year Consolidated Plan cycle, the City is required to
prepare and submit a new Action Plan to HUD. The Action Plan also serves as the City's
application for both the CDBG and HOME grants, and provides HUD with specific projects and
activities the City will undertake with federal grant funds.
The Housing Division has begun the process of developing the required Action Plan for the
period of July 1, 2019 through June 30, 2020. The Action Plan will serve as the application for
both grants and will be submitted to HUD for compliance approval. 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. This first hearing is required during the initial phase
of the development process, and a second hearing is required at the end of the process before
the Action Plan is approved by the City Council. The three (3) community meetings are set for
dates within the Action Plan development timeframe.
FEDERAL rBG AND HOME PROGRAM
FEBRUARY 12, 2019
PAGE 2
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 spent 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.
These federal resources can be used in a variety of ways to address specific needs of the City.
The objective of this first public hearing is to provide an opportunity for the community to
contribute suggestions and comments on the perceived and actual needs of the City, and the
utilization of these federal grants.
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.
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Fiscal Responsibility
Quality of Life, Neighborhood & Infrastructure
Public Engagement
FISCAL IMPACT
There is no impact to the General Fund. The completion of the Annual Action Plan process is a
requirement for the City to receive its CDBG and HOME entitlement grants for Fiscal Year 2019-
2020.