HomeMy WebLinkAbout2020-04-28 - AGENDA REPORTS - ACCEPT OF HOME INVESTMENT PARTNERSHIPS ACT FUNDS (2)Agenda Item: 26
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CITY OF SANTA CLARITA AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:1
DATE: April 28, 2020
SUBJECT: ACCEPTANCE OF HOME INVESTMENT PARTNERSHIPS ACT
FUNDS
DEPARTMENT: Community Development
PRESENTER: Erin Lay
RECOMMENDED ACTION
City Council:
1. Accept the Home Investment Partnerships Act funds, appropriate $530,314 from the HOME
Entitlement Fund (207) to Expenditure Account F0005207-5161.001, and appropriate
$219,686 from the Developer Fee Fund (306) to Expenditure Account F0005306-5161.001.
2. Appropriate $530,314 of revenue to Account 207-4552.001 (Home Entitlement Fund).
3. Authorize the City Manager or designee to complete all required documents, subject to the
approval of the City Attorney.
BACKGROUND
On April 2, 2020, the City of Santa Clarita (City) was notified that the Department of Housing
and Urban Development (HUD) allocated $530,314 in 2020-21 HOME Investment Partnerships
Act (HOME) entitlement funds to the City. The City has previously received HOME funds
through a competitive grant process. This is the first year the City has been awarded HOME
entitlement funds.
Four main activities may be undertaken with HOME entitlement funds:
• Affordable Housing - construction or substantial rehabilitation
• Homebuyer Programs - affordable new construction or homebuyer loans
• Homeowner Rehabilitation - loans or grants for substantial rehabilitation
• Tenant -based Rental Assistance - financial assistance programs for renters
In order to accept the HOME funds from HUD, the City must meet a $750,000 Minimum
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Threshold Requirement by committing non -Federal funds to total $750,000. Staff recommends
the use of $219,686 in Developer Fees (Fund 306) to meet this threshold.
In order to use HOME funds, the Community Development Block Grant Consolidated Plan and
2020-21 Annual Action Plan must be amended. The City has 90 days from the formal acceptance
of the HOME funds to determine how the funds will be used and to complete the amendment
process.
CARES Act Funding
The City was also recently notified of an allocation of $885,759 as part the Coronavirus Aid,
Relief, and Economic Security (CARES) Act signed into law on March 27, 2020. Program
guidelines are expected to be released by the end of April. Once those guidelines are received,
the City will determine the best use of this funding.
ALTERNATIVE ACTION
Other action as directed by City Council.
FISCAL IMPACT
This item has no fiscal impact on the General Fund.
ATTACHMENTS
2020-21 HUD Allocation Letter
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Q,Vj,hE N I, U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
IIIIII WASHINGTON, DC 20410-7000
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ASSISTANT SECRETARY FOR
COMMUNITY PLANNING AND DEVELOPMENT
February 18, 2020
The Honorable Cameron Symth
Mayor of Santa Clarita
23920 Valencia Boulevard
Santa Clarita, CA 91355-2175
Dear Mayor Symth:
I am pleased to inform you of your jurisdiction's Fiscal Year (FY) 2020 allocations for the
Office of Community Planning and Development's (CPD) formula programs, which provide
funding for housing, community and economic development activities, and assistance for low- and
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moderate -income persons and special needs populations across the country. President Trump
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signed Public Law 116-94 on December 20t', 2019, which includes FY 2020 funding for these
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programs. Your jurisdiction's FY 2020 available amounts are as follows:
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Community Development Block Grant (CDBG) $1,454,712
HOME Investment Partnerships (HOME) $530,314
Housing Opportunities for Persons With AIDS (HOPWA) $ 0
Emergency Solutions Grant (ESG) $ 0
This letter highlights several important points related to these programs. We remind grantees
that CPD seeks to develop viable communities by promoting integrated approaches that provide
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decent housing and suitable living environments while expanding economic opportunities for low-
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and moderate -income and special needs populations, including people living with HIV/AIDS. The
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primary means towards this end is the development of partnerships among all levels of government
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and the private sector, including both for -profit and non-profit organizations.
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Based on your jurisdiction's CDBG allocation for this year, you also have $5,888,560 in
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available Section 108 borrowing authority. Since Section 108 loans are federally guaranteed, this
program can leverage your jurisdiction's existing CDBG funding to access low -interest, long-term
financing to invest in Opportunity Zones or other target areas in your jurisdiction
Because the funds are not appropriated by Congress, Housing Trust Fund (HTF) formula
allocation will be announced at a later date under separate cover.
HUD continues to emphasize the importance of effective performance measurements in all of
its formula grant programs. Proper reporting in the Integrated Disbursement and Information
System (IDIS) is critical to ensuring grantees are complying with program requirements and
policies, providing demographic and income information about the persons that benefited from a
community's activities, and allowing HUD to monitor grantees. Your ongoing attention to ensuring
www.hud.gov espanol.hud.gov
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complete and accurate reporting of performance measurement data continues to be an invaluable
resource with regard to the impact of these formula grant programs.
The Office of Community Planning and Development is looking forward to working with you
to promote simple steps that will enhance the performance of these critical programs and
successfully meet the challenges that our communities face. If you or any member of your staff have
questions, please contact your local CPD Office Director.
Sincerely,
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David C. Woll, Jr.
Principal Deputy Assistant Secretary
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