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HomeMy WebLinkAbout04. Consolidated Plan for CDBG and HOME Partnership Investment Grant ProgramsAPPROVED 61 CITY MANAGEi 'w TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL illi FROM: OFFICE OF THE CITY MANAGER BY: ALDO E. SCHINDLER, DIRECTOR OF COMMUNITY DEVELOPMEN691, DATE: JANUARY 14, 2020 •- ill : 0 a SM M � 1 :11111 :r-11 A I � 14;4A m I 12 1 � kvj :&III J, 1:10 III&IMA 0 12 N Nelel uxq*-IWWr •� That the City Council conduct a Public Hearing and receive public comment pertaining to the Community Development Block Grant and HOME Investment Partnership Grant Programs. The City of Downey is an entitlement grantee of federal grants under the Community Development Block Grant ("CDBG") and HOME Investment Partnership Program ("HOME"). These grants are allocated annually to the City from the U.S. Department of Housing and Urban Development ("HUD"). In order to receive these Grants, HUD requires that the City have an approved 5 -Year Consolidated Plan and annually submit an Action Plan. The period covered by the current Consolidated Plan will end on June 30, 2020. The City's Housing Division will initiate the development of the required Consolidated Plan for the next five (5) year period, and will be conducting several community and stakeholder meetings, as required by HUD. In addition, the City is required to hold a minimum of two (2) public hearings and at least three (3) community meetings prior to submitting the Consolidated Plan to HUD for approval; this January 14, 2020 hearing is the first of two public hearings. This first hearing is required in the initial phase of the Plan development process; the public hearing is to provide an opportunity for the community to contribute suggestions and comments regarding the use of these federal entitlement grants. The three (3) community meetings will occur sometime between January and March. A second public hearing on this item will be scheduled in May, 2020 to receive comments, approve, and authorize the City Manager to submit the 5 -Year Consolidated Plan, Annual Action Plan, and the Analysis of Impediments to HUD. A draft of the proposed plans will be completed and available early February 2020, to receive further input from the public. CONSOLIDATED PLAN JANUARY 14, 2020 PAGE 2 serve its low- and moderate -income residents. HUD requires that the Consolidated Plan include an analysis of the housing market conditions and a strategic plan with established priorities to meet its identified priority needs. The Plan must identify resources anticipated to be available for addressing the affordable and supportive housing needs and provide an annual Investment Plan referred to as the Action Plan. The federal CDBG program allows the City to use these funds for eligible housing activities as well as non -housing development activities. Historically, the City has allocated a large percentage of these funds on housing rehabilitation, code enforcement, economic development, public improvements, and public service activities; whereas, funds available under the HOME grant can only be used for housing related activities. Under both grants, the primary beneficiaries must be households that are low- and moderate - income, elderly, disabled, or homeless. Federal regulation requires that no less than 70 percent of the CDBG funds and 100 percent of the HOME funds must be used on activities that benefit low- and moderate -income persons. The City is limited to using no more than 20 percent of the CDBG grant for general administration costs, while the HOME grant only allows 10 percent for administration expenses. As mentioned, this public hearing is to provide an opportunity for the community to contribute suggestions and comments regarding the use of these federal entitlement grants. Staff is seeking comment relevant to the following areas: • Identify the deficiencies in affordable housing for low- and moderate -income, elderly, the homeless, and special needs households; • Identify the non -housing supportive needs for low-income, elderly and homeless households; including public infrastructure, community facilities, and social services; • Setting priorities to address the City's identified needs and determining the distribution proportions of available federal resources; • Proposals for projects, programs, or ideas on how to use the federal funding; • Feedback on the effectiveness or the performance outcomes of the current year's CDBG and HOME funded activities; and, • The extent or scope of issues or deficiencies affecting fair housing choices within the City. Fiscal Responsibility Quality of Life, Infrastructure & Parks Public Engagement JANUARY 14, 2020 PAGE 2 FISCAL IMPACT There is no fiscal impact to the City's General Fund. The Consolidated Plan is a prerequisite for the City to receive the CDBG and HOME entitlement grants for period covering the next five (5) fiscal years.