Loading...
HomeMy WebLinkAbout2020-06-23 - AGENDA REPORTS - SUBSTANTIAL AMENDS TO THE CITY'S CDBG CITIZEN PART (2)Agenda Item: 18 P CITY OF SANTA CLARITA AGENDA REPORT PUBLIC HEARINGS CITY MANAGER APPROVAL:1 DATE: June 23, 2020 SUBJECT: SUBSTANTIAL AMENDMENTS TO THE CITY'S COMMUNITY DEVELOPMENT BLOCK GRANT CITIZEN PARTICIPATION PLAN, 2019-20 to 2023-24 CONSOLIDATED PLAN, AND 2020-21 ANNUAL ACTION PLAN DEPARTMENT: Community Development PRESENTER: Erin Lay RECOMMENDED ACTION City Council: 1. Conduct a Public Hearing. 2. Approve the modification to the noticing and public comment periods in the Community Development Block Grant Citizen Participation Plan. 3. Accept Community Development Block Grant Coronavirus (CDBG-CV) funds; appropriate $855,759 from the Community Development Block Grant Fund (203) to expenditure accounts as follows: $105,759 to 13352-5161.001; $150,000 to 13353-5161.001; $150,000 to 13354-5161.001; $200,000 to 13355-5161.001; $250,000 to 13356-5161.001. Increase revenue account 203-4424.015 CARES ACT (COVID-19) by $855,759. 4. Approve the addition of $530,314 in HOME funds, $219,686 in Developer funds, and $855,759 in CDBG-CV funds to the resources identified in the Consolidated Plan. 5. Approve the allocation of the HOME funds, Developer funds, and CDBG-CV funds to the uses identified in the 2020-21 Annual Action Plan. BACKGROUND Each year, the City of Santa Clarita (City) receives Community Development Block Grant (CDBG) Program funds from the U.S. Department of Housing and Urban Development (HUD) based on a demographic formula. In order to use CDBG funds, the City must develop a Citizen Page 1 Packet Pg. 164 Participation Plan (CPP) which outlines the way residents will be notified and provided the opportunity to comment on the use of CDBG funds. The City's current CPP was developed in 2006. The City must also develop a Consolidated Plan (Con Plan), a five-year strategic planning document which sets priorities for use of CDBG funds, and an Annual Action Plan (AAP), in which the planned use of CDBG funds is described. The 2019-20 to 2023-24 Con Plan was adopted by the City Council on April 23, 2019. The 2020-21 AAP was adopted by the City Council on April 28, 2020. The City was recently awarded additional funds from HUD for two programs, requiring the update of these documents. The following is a summary of each new program: • CDBG-CV FUNDS On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. Through the CARES Act, the City was allocated $855,759 in additional CDBG funds (CDBG-CV). These funds are to be used for activities which prevent, prepare for, and respond to the coronavirus (coronavirus-related). To use these funds for eligible activities, the City must amend the 2018-19 to 2023-24 CDBG Con Plan and the 2020-21 AAP. • HOME FUNDS On April 2, 2020, the City was notified by HUD that it would receive a formula allocation of $530,314 in Home Investment Partnerships Act (HOME) funds. On April 28, 2020, the City Council formally accepted the allocation of HOME funds and also approved the use of $219,686 in Developer funds to meet the HUD Minimum Threshold Requirement. To use these funds for HOME -eligible activities, the City must amend the 2019-20 to 2023-24 Con Plan and the 2020-21 AAP. To help facilitate the use of these new funds in a timely and expeditious manner and to allow for modified processes related to physical distancing, HUD made waivers available which allow for the amendment of the existing CPP. The City submitted the request to use the CPP waiver on April 22, 2020. It was approved by HUD on April 23, 2020. OT TTR RA CT4 The Substantial Amendment to the AAP must contain the specific types of activities the City intends to undertake with the CDBG-CV funds. In order to determine the coronavirus-related needs in the community, City staff contacted local non-profit agencies, businesses, and business associations to obtain information on their needs and the needs their clients. The information obtained was used to guide the allocation of CDBG-CV funds in the Substantial Amendment to the AAP. PROPOSED AMENDMENTS The amendments to the CPP, Con Plan, and AAP are contained in the attached Substantial Amendment document. An overview of the proposed amendments is summarized below: Page 2 Packet Pg. 165 • Citizen Participation Plan o Reduce the public noticing period to five days o Reduce the public comment period to five days o Provide for alternative ways in which the public can access draft documents and make comments, while ensuring necessary physical distancing • Consolidated Plan o Include a new priority entitled "Address the Coronavirus Pandemic" o Include the new HOME, Developer, and CDBG-CV funds as available resources Annual Action Plan o Include the following activities using CDBG-CV funds: • Administration • Business Grants — Possible programs include, but are not limited to, grants to businesses for re -opening expenses and personal protective equipment, and assistance to microenterprises • COVID-19 Testing — Grants to pay for materials and staffing for coronavirus testing • Food Services Grants — Possible programs include, but are not limited to, grants to assist food banks, home -delivered meal programs, and homeless food services • Non -Profit Services Grants — Possible programs include, but are not limited to, grants for childcare programs, re -opening expenses, and for the increase in existing services due to coronavirus o Include the following activities using HOME and Developer funds: Administration • Construction of Affordable Housing NEXT STEPS Upon approval of the Substantial Amendments, staff will develop the required processes and procedures for allocation of funds to eligible activities and agencies and to address all cross- cutting federal regulations such as environmental compliance and procurement. This funding allocation process will include program guidelines and may include an application process. ALTERNATIVE ACTION Other action as directed by City Council. FISCAL IMPACT This item has no impact on the General Fund. ATTACHMENTS Public Hearing Notice Substantial Amendments Page 3 Packet Pg. 166 18.a NOTICE OF PUBLIC HEARING FOR A SUBSTANTIAL AMENDMENT TO THE CITY OF SANTA CLARITA' S 2019-20 TO 2023-24 CONSOLIDATED PLAN, A SUBSTANTIAL AMENDMENT TO THE 2020-21 ANNUAL ACTION PLAN, AND A SUBSTANTIAL AMENDMENT TO THE CITIZEN PARTICIPATION PLAN Notice is hereby given that the City of Santa Clarita (City) will conduct a public hearing for three draft Substantial Amendments (SA), and will be inviting public comment and review of the three SA's to be submitted to the U.S. Department of Housing and Urban Development (HUD). The three draft SA's being proposed are: the first SA to the City's 2019-20 to 2023-24 Consolidated Plan (Con Plan), the first SA to the City's 2020-21 Annual Action Plan (AAP), and the first SA to the City's Citizen Participation Plan (CPP). The public hearing will be held on Tuesday, June 23, 2020, at or after 6:00 p.m., in the Council Chambers at Santa Clarita City Hall, 23920 Valencia Boulevard, Santa Clarita, California, 91355. Citizens are encouraged to participate and provide comments on this item by attending the public hearing. The SA's, required by HUD, describe the proposed changes to the Con Plan, AAP, and the CPP. The SA to the Con Plan proposes to add the use of HOME and CDBG-CV funds. The SA to the 2020-21 AAP proposes how the City intends to use the HOME and CDBG-CV funds. The SA to the CPP proposes to amend HUD's legal noticing and public comment period requirements. The City also invites public comment regarding the draft SA documents during the five-day (5) day public comment period, which begins June 18, 2020. Copies of the draft Substantial Amendments to the 2019-20 to 2023-24 Con Plan, the 2020-21 AAP, and the CPP will be available online at www.santa-clarita.com/housing. Copies will be provided by U.S. Mail, fax, or email upon request. Citizens wishing to comment on any of the SA's may submit comments verbally by calling (661) 286-4141, or in writing via email at ela &7santa-clarita.com. Comments must be received by June 22, 2020, at 5:00 p.m. Copies of the City Council meeting agendas will be available 72 hours prior to the meeting date at the City Clerk's Office at City Hall, located at 23920 Valencia Blvd., Suite 120, Santa Clarita, CA 91355, or on-line at www.santa-claritaxom/agendas. Further information may also be obtained by contacting Erin Lay, Housing Program Administrator, at 661.286.4174, or by email at ela &7santa-clarita.com. If you wish to challenge the action taken on this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at or prior to, the public hearing. Para los que hablan espanol, si usted tiene preguntas o desea mas informati6n sobre este producto, por favor p6ngase en contacto con Vanessa Diaz, Clerk, al 661.255.4353 o por correo electr6nico a vdiaz@santa-clarita.com. Gracias. Packet Pg. 167 18.a Date: May 13, 2020 Mary Cusick, MMC City Clerk Published: Friday, June 12, 2020 — The Signal Packet Pg. 168 18.b Substantial Amendments On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Act identified additional funding for both the Emergency Solutions Grant (ESG) and the Community Development Block Grant (CDBG) to allow jurisdictions to prevent, prepare for, and respond to community impacts of the COVID-19 pandemic. HUD's distribution plan for the additional funding included multiple phases that would allow for quick access to funding necessary to address the immediate crisis resulting from the rising pandemic, as well as phases that would support post - pandemic community recovery. This Consolidated Plan includes planning for the first and any subsequent phases. In addition, the City of Santa Clarita is electing to opt into the HOME Investment Partnership Act (HOME) program as a HOME Entitlement Jurisdiction. Beginning FY 2020-2021, the City will receive annual HOME allocations from HUD. This document constitutes the City of Santa Clarita's substantial amendment to the following three documents: • Citizen Participation Plan for the CDBG program • Five -Year (FY 2019-2023) Consolidated Plan, covering July 1, 2019 through June 30, 2023) • FY 2020 Annual Action Plan, covering July 1, 2020 through June 30, 2021 The following amendment language will be added to the respective documents to allow the City of Santa Clarita access to emergency CDBG funding (CDBG-CV) through the CARES Act to assist in ensuring a timely response to the impacts of the COVID-19 pandemic. l bz iiri ° II4ri The following section will be added to the Citizen Participation Plan: Substantial Amendment Process in Response to COVID-19 Pandemic As provided by HUD's Mega Waviers for the CARES Act, the City will utilize a streamlined substantial amendment process to plan and allocate emergency funding to respond to the impacts of the COVID- 19 pandemic: • Reasonable Noticing: o The City will publish a notice regarding the public hearing and the availability of draft documents for public review at least five days prior to the public hearing. o The City will publish, on the City of Santa Clarita website, a notice regarding the public hearing and the availability of the draft amendments for public review at least five days prior to the hearing. • Public Review Comment: A five-day public comment period will be provided. Public Hearing: A virtual public hearing will be considered adequate. Consolidated Plan SANTA CLARITA E-1 OMB Control No: 2506-0117 (exp. 07/31/2015) Packet Pg. 169 18.b III lii� iirw Ilia2019Ilia 3) CarisdJdated ° II4iri The following sections in the Consolidated Plan will be amended: Illy e t tl e Stcavaiary 24. OIII " IIIR 91 200(c), 91 220(I 2. Summary of the Objectives and Outcomes Identified in the Plan Needs Assessment Overview The following priority specific to COVID-19 responses will be added to the Consolidated Plan: Provide Timely Assistance to Those Impacted by the COVID-19 Pandemic Priority 5: COVID-19 Pandemic Response: Priority activities may include but are not limited to: • Prevention of homelessness • Maintenance or Improvement of Access to Public Services • Maintenance or Improvement of Public Facilities and Infrastructure • Economic Development, including retention and/or creation of employment opportunities for affected businesses RIIR15 OliiitCi eiiini III ' iiir°fliii liil III "fliii0iiir u Summary of citizen participation process/Efforts made to broaden citizen participation The Consolidated Plan (CP) Amendment addressing additional funding from the CARES Act and participation in the HOME program will be available for a public comment period of 5 days per waiver of the federal regulations. The draft CP Amendment is available for comment from all interested members of the public from June 17, 2020. The draft AP Amendment and the public notice document are available for review on the City of Santa Clarita Development Services Department website at: www.santa-clarita.com/housing. Please submit written comments to elan santa-clarita.com. Comments may also be mailed to: Erin Lay Housing Program Administrator 23920 Valencia Boulevard, Suite 302 Santa Clarita, CA 91355 NAeiiir line Needs Assessment Overview The needs previously identified in this Consolidated Plan focused on affordable housing, supportive human services, and facilities and infrastructure. The COVID-19 pandemic has only exacerbated needs already existing in Santa Clarita. However, some needs have been reprioritized. The ongoing shut -down of businesses has resulted in record unemployment, which severely impacts the low -and moderate -income households, especially those already living below the poverty level and those with severe housing cost burden. Consolidated Plan SANTA CLARITA E-2 OMB Control No: 2506-0117 (exp. 07/31/2015) Packet Pg. 170 18.b As a result of shortages in some areas, combined with loss of income for many households, there has been substantial increase in demand for assistance through public services, especially food banks, meal delivery services, and healthcare -related services. The rapid increase in demand has left many service providers under -staffed and under-resourced and has added substantial cost. The increased demand is expected to be sustained beyond the shutdown as households will take time to regain employment and economic stability. Increased homeless prevention, supportive services, and homeless services may be needed as the City continues to address the impacts of COVID-19. Many households are facing unemployment or reduced income due to the shut -down and shelter -in -place orders issued in early March 2020. Expanded affordable housing opportunities must be a community priority to as a long-term solution to preventing increase in homelessness as housing protections are lifted. Many local businesses are also struggling to stay afloat. With the shutdown, many businesses are facing substantially reduced revenue while the costs of operations (such as rents and insurance) remain the same. To remain in business, or to get ready for reopening, some businesses may need financial assistance. III k25 Flribriiity Deeds 91 21 Priority Needs Table 8 — Priority Needs Summary 5 Priority Need Name COVID-19 Pandemic Response (CARES Act) Priority Level High Population Extremely Low Income Low Moderate Geographic Areas Affected Citywide Associated Goals Provide Timely Assistance to Those Impacted by the COVID-19 Pandemic Description Provide timely response for persons and businesses impacted by the COVID-19 pandemic, as well as activities that would prevent or arrest the spread of the virus. Consolidated Plan SANTA CLARITA E-3 OMB Control No: 2506-0117 (exp. 07/31/2015) Packet Pg. 171 18.b Basis for Relative In March 2020, the Coronavirus pandemic began to impact U.S. Priority communities. Projections indicated that the elderly, persons with underlying health conditions, and persons without access to housing were at particular risk of infection and death. Communities across the nation, including the State of California, initiated Shelter -in -Place Orders that encouraged non -essential workers to shelter in their homes, and that shut down all non -essential businesses. The Shelter in Place order also affected many low and moderate income persons and persons with special needs their ability to afford or access services, such as nutritious meals. Impacts from the pandemic are expected to range from health risks, to unemployment and homelessness. Additionally, the Shelter -in -Place Orders resulted in mass business shut -downs during the term of the Order. The shutdowns impacted non -essential services and resulted in record unemployment, causing financial strains on many low and moderate income households. SIIk35 AnrfltlllpatedIllResotiirces 91 21 4), 91 220(c)(1,2 Anticipated Resources Consolidated Plan SANTA CLARITA E-4 OMB Control No: 2506-0117 (exp. 07/31/2015) Packet Pg. 172 18.b I '� 4 '' Its Stcaiini iary 91 2 1 4 Goals Summary Information re, re ^rere ,m ^re re, 0 re emm -m m Improve, Homeowner Maintain, and Housing Provide Decent and Affordable Expand CDBG: $1,956,382 Rehabilitated: 250 Household 1 Affordable 2019 2023 HousingCitywide Affordable Housing HOME: $2,120,000 Housing Units Housing Planningand New Rental Units Administration Constructed: 4 Units 4 COVID-19 2020 2023 COVID-19 Citywide Homeless Public service Pandemic Pandemic (based on Prevention activities other Response Response income) Public than CDBG-CV: Low/Moderate Services Income Housing Public $855,749 Benefit: Facilities and 1,400 Persons Infrastructure Assisted Economic Businesses Development Assisted: 10 Businesses Table 1 - Goals Summary Ilia2020 A�iii� i a a III ct ii��i ( ct IIL)e iirw 1, 2019 I II iirw a III ii r II iirw 2020) Executive Summary E AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) Introduction On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Act identified additional funding for the Emergency Solutions Grant (ESG) Program and the Community Development Block Grant (CDBG) program to allow jurisdictions to prevent, prepare for, and respond to the community impacts of the COVID-19 pandemic. The distribution plan of the U.S. Department of Housing and Urban Development (HUD) for the additional funding includes multiple phases: an initial phase that would allow for quick access to funding necessary to address the immediate crisis resulting from the rising pandemic, as well as later phases that would support post - pandemic community recovery. The 2020-2021 Annual Action Plan (AP) is being amended to incorporate additional funding in the initial phase of HUD's CARES Act resource distribution plan. Consolidated Plan SANTA CLARITA E-5 OMB Control No: 2506-0117 (exp. 07/31/2015) Packet Pg. 173 18.b In addition, the City of Santa Clarita is electing to opt into the HOME Investment Partnership Act (HOME) program as a HOME Entitlement Jurisdiction. Beginning FY 2020-2021, the City will receive annual HOME allocations from HUD. AP-12 Participation - 91.115, 91.300(c) Summary of citizen participation process/Efforts made to broaden citizen participation The draft AP Amendment is available for comment from all interested members of the public from June 17, 2020. The draft AP Amendment and the public notice document are available for review on the City of Santa Clarita website at: www.santa-clarita.com/housing Please submit written comments to elan santa-clarita.com. Comments may also be mailed to: Erin Lay Housing Program Administrator 23920 Valencia Boulevard, Suite 302 Santa Clarita, CA 90802 Consolidated Plan SANTA CLARITA E-6 OMB Control No: 2506-0117 (exp. 07/31/2015) Packet Pg. 174 18.b AP-15 Expected Resources — 91.320(c) (1,2) Introduction This amendment covers two additional funding sources: • The City of Santa Clarita is entitled to receive one-time funding for the following program authorized under the CARES Act for Coronavirus response - Community Development Block Grant CARES Act Stimulus (CDBG-CV). • The City also became a HOME entitlement jurisdiction starting FY 2020-2021 Anticipated Resources The anticipated resources for the CDBG-CV program is based on award letters received in early April 2020 and indicate actual awards for these funds. Future funding for CDBG-CV is expected to address longer -term impacts of the COVID-19 pandemic, however those funds will be programmed through future plans and amendments. See table of anticipated resources below. Consolidated Plan SANTA CLARITA E-7 OMB Control No: 2506-0117 (exp. 07/31/2015) Packet Pg. 175 AP-20 Annual Goals and Objectives — 91.320(c)(3) &(e) Goals Summary Information The figures below represent estimates of allocation goals and objectives for the additional funding provided under the CARES Act. These figures are determined by the funding recipients' priority needs. Improve, Homeowner Maintain, and Housing Provide Decent Affordable Expand CDBG: $400,000 Rehabilitated: 1 and Affordable 2019 2023 N/A Affordable 64 Household Housing Housing Housing HOME: 530,314 Housing Units Planning and New Rental Units Administration Constructed: 1 Unit 4 COVID-19 2019 2023 COVID-19 N/A Homeless Public service Pandemic Pandemic Prevention activities other Response Response Public than Services Low/Moderate CDBG-CV: Income Housing Public Benefit: Facilities and $855,759 1,400 Persons Infrastructure Assisted Businesses Assisted: 10 Businesses F 38 I Project t S tau iiim iiim iiir Project Summary Information 1 Project Name Program Planning and Administration and Fair Housing Services Target Area Not Applicable Goals Supported Provide Decent and Affordable Housing Improve and Expand Facilities and Infrastructure Provide Supportive Human Services Provide Timely Assistance to Those Impacted by the COVID-19 Pandemic Needs Addressed Improve, Maintain, and Expand Affordable Housing Improve and Expand Facilities and Infrastructure Planning and Administration Provide Supportive Human Services COVID-19 Pandemic Response Funding CDBG: $290,942 HOME: $53,031 CDBG-CV: $105,759 Description Program Planning and Administration Consolidated Plan SANTA CLARITA E-8 OMB Control No: 2506-0117 (exp. 07/31/2015) Packet Pg. 176 18.b Target Date 6/30/2021 Estimate the number and type of Not applicable families that will benefit from the proposed activities Location Description The CDBG, HOME, and CDBG-CV Programs will be administered from Santa Clarita City Hall. Planned Activities Funds will be used for general management, monitoring and oversight of the programs, and the provision of fair housing services. In addition to general management activities, staff respond to citizen inquiries and facilitates the services of local non-profit agencies. 15 Project Name COVID-19 Response - Supportive Human Services Target Area Not Applicable Goals Supported Provide Timely Assistance to Those Impacted by the COVID-19 Pandemic Needs Addressed COVID-19 Pandemic Response Funding CDBG: $600,000 Description Provide a variety of public services to aid in the urgent needs of the most vulnerable segments of Santa Clarita residents Target Date 6/30/2021 Estimate the number and type of families that will benefit from the 1,400 Persons Assisted proposed activities Location Description Citywide Activities may include: • COVID-19 Testing — grants to pay for materials and staffing for coronavirus testing. • Food Services Grants — possible programs include, but are not limited to Planned Activities grants to assist food banks, home -delivered meal programs, and homeless food services. • Non -Profit Services Grants — possible programs include, but are not limited to grants for childcare programs, re -opening expenses, and to address the increased need for existing services due to coronavirus 16 Project Name COVID-19 Response — Business Grants Target Area Not Applicable Goals Supported Provide Timely Assistance to Those Impacted by the COVID-19 Pandemic Needs Addressed COVID-19 Pandemic Response Funding CDBG: $150,000 Provide assistance to local businesses that have been adversely impacted by Description COVID-19 and may not be able to remain in business without immediate assistance. Target Date 6/30/2021 Estimate the number and type of families that will benefit from the 10 Businesses Assisted proposed activities Location Description Citywide Consolidated Plan SANTA CLARITA E-9 OMB Control No: 2506-0117 (exp. 07/31/2015) r r; Packet Pg. 177 18.b Possible programs include, but are not limited to grants to businesses for re - Planned Activities opening expenses and personal protective equipment, and assistance to microenterprises 17 Project Name Affordable Housing Target Area Not Applicable Goals Supported Provide Decent and Affordable Housing Needs Addressed Improve, Maintain, and Expand Affordable Housing Planning and Administration Funding HOME: $477,283 Description Expand affordable housing opportunities through land acquisition, new construction, and/or acquisition/rehabilitation Target Date 6/30/2021 Estimate the number and type of families that will benefit from the 1 Housing Unit A proposed activities Location Description Citywide Planned Activities Specific activities will be determined later. XFkffardakAb IIFlotjsliiiiiini 1 220(g ilf! In addition to the City's CDBG-funded Property Rehabilitation and Handyworker program, the new HOME program could potentially facilitate the development of one affordable unit. One Year Goals for the Number of Households to be Supported Homeless 0 Non -Homeless 68 Special -Needs 0 Total 68 One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 1 Rehab of Existing Units 67 Acquisition of Existing Units 0 Total 68 Consolidated Plan SANTA CLARITA E-10 OMB Control No: 2506-0117 (exp. 07/31/2015) r r; Packet Pg. 178 18.b HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(I)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: No other forms of HOME investments beyond those previously described. 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: 3. The City's HOME program is new. The City does not intend to use HOME funds for homebuyer assistance. 4. 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: The City's HOME program is new. The City does not intend to use HOME funds for homebuyer assistance. 5. 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: The City has no plan to use HOME funds to refinance existing debt. Consolidated Plan SANTA CLARITA E-11 OMB Control No: 2506-0117 (exp. 07/31/2015) Packet Pg. 179