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HomeMy WebLinkAboutStaff Report 5.A 04/06/2015DATE: April 6, 2015 AGENDA ITEM # 5.A. TO: Honorable Mayor and Members of the City Council through City Manager FROM: Sue Castellucci, Housing Coordinator t, SUBJECT: Resolution Approving the 2015-2020 Consolidated Plan for the City of Petaluma RECOMMENDATION It is recommended that the City Council Adopt a Resolution Approving the 2015-2020 Consolidated Plan for the City of Petaluma. BACKGROUND The City of Petaluma is an "entitlement jurisdiction" under the Community Development Block Grant Program. One of the program's statutory requirements is that all entitlement jurisdictions prepare a Consolidated Plan in order to receive federal housing and community development funding. The Con Plan contains a description of the Plan process, housing needs assessment, a market analysis of Petaluma and the City's priorities and goals over the next five years. The primary objective of the Community Development Block Grant (CDBG) program is the development of "viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income." DISCUSSION The information in the 2015-2020 Consolidated Plan reiterates the same data that is contained in the City's 2015-2023 Housing Element that was approved by the City Council on December 1, 2014 and certified by the Housing & Community Development Department of the State of California on January 23, 2015. The programs and policies in the Housing Element support the Consolidated Plan's priorities that are listed in the 2015-2020 Plan. A public notice was published in the Argus Courier advertising for public input on the Consolidated Plan and the CDBG program. Staff held a public workshop in February along with ajoint public meeting with the Sonoma County Community Development Commission to get public input on the needs of the community. The Executive Summary (Attachment 42) gives a brief overview of the Consolidated Plan and an assessment of the needs of Petaluma along with demographics and a market analysis. The Summary also lists the proposed priorities for funding over the next five years of the Consolidated Plan. As in past years, all future funding proposals will be expected to address one or more of the City Council's housing and community development priorities. Copies of the whole document may be reviewed and/or downloaded from the City's Housing website, cityofpetaluma.net/cmgr/liousing.htmi or viewed at the Housing Division office at 27 Howard Street, or by calling Sue Castellucci at 707-778-4563. FINANCIAL IMPACTS The City of Petaluma will receive an estimated $1,630,000 over the five year planning period that the Consolidated Plan covers. The administrative costs to complete this Plan were covered through funds received for administrative costs under the current fiscal year grant. ATTACHMENTS 1. Resolution 2. Executive Summary for 2015-2020 Consolidated Plan ATTACHMENT 41 RESOLUTION APPROVING TILE 2015-2020 CONSOLIDATED PLAN FOR THE CITY OF PETALUMA WHEREAS, the City of Petaluma is considered an entitlement jurisdiction under the Community Development Block Grant Program and applies directly to the Department of Housing and Urban Development (HUD) for funds; and WHEREAS, 24 CPR 91.2(b)(10) and 91.15(b)(1) require the City to submit to HUD, every five years, the Consolidated Plan; and WHEREAS, the Consolidated Plan serves both as a strategic plan for allocating finding for projects and programs for low and moderate income people and as a funding application; and WHEREAS, the City of Petaluma has implemented Citizen Participation Plan to offer ample opportunity and encouragement of participation by interested citizens, service delivery agencies, and their clients, other governmental entities, through a series of public hearings and forums; and WIIEREAS, consistent with the Participation Plan, City staff provided an opportunity for public participation, and WIIEREAS, all comments, questions, and suggestions received were considered as valuable input to the process; and WHEREAS, the City Council finds that the2015-2020 Consolidated Plan outlines affordable housing, and community development strategies which contribute to the well-being and improvement of lives of our low and moderate income residents and the quality of life in our community, and satisfies the requirements of 24 CPR 91.200-230, as required by 24 CFR 91.200(a). NOW, THEREFORE, BE IT RESOLVED that the Petaluma City Council approves the 2015-2020 Consolidated Plan and directs the Housing Manager to submit the document to HUD in a timely fashion. EXECUTIVE SUMMARY CONSOLIDATED PLAN 2015-2020 ES -05 Executive Summary Introduction ATTACHMENT #2 The City of Petaluma (City) is an entitlement jurisdiction that receives federal funds from the U.S. Department of Housing and Urban Development (HUD) to invest in local communities. The funds are provided under the Community Development Block Grant Program (CDBG). In order to receive these funds, the City must complete a report every three to five years called the Consolidated Plan. The primary objective of the CDBG program is to develop viable communities through the provision of decent housing, a suitable living environment, and expanded economic opportunities. The purpose of the Consolidated Plan is to identify a city or state's housing and community development needs, priorities, goals and strategies; and to stipulate how funds will be allocated to activities over the period of the Consolidated Plan, which in the case of the City is five years. The City's Housing Division is the lead agency overseeing the completion and implementation of the updated Consolidated Plan. The Housing Division is under the City Manager's Office and receives direction from the City Council of Petaluma in the review and approval of all housing and Block Grant policies and financial allocations. The Consolidated Plan process actively involved the housing and community development organizations in the City, nonprofit providers of affordable housing, service providers to the City's low/moderate and special needs populations, advocates and others. This Consolidated Plan 2015-2020 is the strategic plan for allocating and leveraging the CDBG grant. It utilizes qualitative and quantitative data gathered through public input, market analysis, and an assessment of need to identify the highest priority needs in which to direct entitlement dollars. The following goals are proposed to meet these high priority needs (in no particular order or ranking) • Improve housing opportunities by preserving existing affordable housing • Provide housing and services to the low income populations, including but not limited to, children, seniors and special needs population (homeless, disabled, etc) • Increase the supply of affordable housing • Promote housing opportunities for homeownership • Improve accessibility in public facilities and infrastructure The Plan process also included the development of the first-year Action Plan which is the annual plan the City prepares pursuant to the goals outlined in the Consolidated Plan. The Action Plan details the activities the City will undertake to address the housing needs and local objectives using CDBG funds received during the program year 2015/2016. HUD recommends that grantees implement programs that leverage Federal financial resources to achieve the greatest possible return for the communities and individuals we are intending to assist. With the City's CDBG allocation being so small, it has been the goal of the Housing Division to concentrate the funds on activities that serve the greater number of residents. Activities to implement the Strategic Action will include: Allocate funds to programs that expand or create services for special needs population Allocate funds to local partners that collaborate and leverage commitments to promote a higher level of service Summary of the objectives and outcomes identified in the Plan Needs Assessment Petaluma is located 40 miles north of San Francisco in southern Sonoma County, bisected by the Petaluma River and under the backdrop of the Sonoma Mountains. It is a unique, geographically defined community with a distinctive character derived from its geography and physical diversity. A brief history of the development of Petaluma shows that the community was incorporated in 1858 and grew steadily following incorporation. There was a notable residential growth spurt following suburbanization from the 1950's to 1970's resulting in the adoption of its well-known residential growth management program. Following that landmark legislation, the city slowed its residential growth rate to not exceed 500 units per year through the turn of the 201h century. Although the growth management program is hardly mentioned in today's planning milieu, the annual growth rate during the first 14 years of the 21st century was at an annual rate of just one half percent. • The population grew from 54,548 in 2000 to 57,941 in 2010, an increase of approximately 5.68% which represents an annual average growth rate of approximately one-half percent over the ten years. The housing supply increased by approximately 9% from 2000 to 2014. • The percentage of owner -occupied households decreased over the decade from 70% in 2000 to 66% in 2010. The City is tasked with determining both the areas of greatest need, and the areas in which community investment can have the greatest impact given the limited resources available. 42% of low income households are paying over 30% of their income towards their housing cost. The City has sponsored the development of approximately 1,359 rental units affordable to extremely low-income, very low-income, low-income and moderate -income household, including 685 of family units (51%) and 647 of senior units (49%). Fifteen percent of the renter households are seniors (978 households) with the remaining 85% are non -age restricted rental households. The percentage of affordable housing units built for families/individuals falls below the need (51% built/85% renter households). While there is a need for all types of affordable housing, there is a greater need for non -age restricted affordable housing in Petaluma. Housing Needs (See NA -10) 34% of Petaluma's households (7,160 households) are extremely low-income, very low-income, or low-income, with incomes ranging from 0-80% of Area Median Income (AMI). 0 8.8% are extremely low-income (1,885 households at 0-30%) 0 9.1% are very -low income (1,950 households at 31-50%) 0 15.5% are low-income (3,325 households at 51-80%) Public Housing (See NA -35) • Petaluma does not own any public housing units • The Section 8 Program is a program of the Sonoma County Housing Authority and serves Petaluma households. The Sonoma County Housing Authority assists 399 Petaluma households with Housing Choice Voucher rental assistance. There are 1,170 Petaluma households on the Housing Authority's Section 8 Housing Choice voucher waiting list Homeless Needs (See NA -40) • The 2013 Point -In -Time count for Sonoma County found that 4,280 homeless individuals were living in the City, and 77 percent were unsheltered. • 21% of the homeless are located in Petaluma. Non -Homeless Special Needs (See NA -45) • 4,746 households in Petaluma are 65 and over (22.9% of total households). • Elderly households are more likely to be low-income with 47% of households 62 or older being extremely low-income, very low-income and low income with incomes ranging from 0-80% AMI, compared to 34% for the City as a whole. • 40% of households with children fall within low-, very low- and extremely low income households (0-80%) • Elderly individuals are also more likely to be disabled, with 47% of elderly ages 65 or older considered disabled, compare to 9% of the total overall City population. Evaluation of past performance The City prepares the Consolidated Annual Performance and Evaluation Report (CAPER) which outlines how the City met the needs and objectives outlined in the 2010-2015 Consolidated Plan and Annual Action Plan. The City's key accomplishments over the 2010-2015 Consolidated Plan period include: • Preserved affordability of more than 243 units of housing units, senior, disabled, and multi- family. • Assisted approximately 1,050 seniors through its Meals on Wheels program. • Provided a new children's playground/sport court which improved access to a suitable living environment for 230 children at one of our affordable family complexes. • Provided new ADA access to a public facility for approximately 4,746 persons with disabilities. • Provide funds to rehabilitate a children's center to provide improved access to services for 130 children. rd Accomplishments of the City with other housing funds: • Provided funds to assist approximately 2,766 homeless individuals by supporting COTS programs — the Mary Isaak Center and their family transitional housing program. • Provided funds to purchase property at 951 Petaluma Blvd. So., for future affordable housing. • Provided funds for the development of 181 affordable housing units (multi -family and senior) in three projects, which are completed and are fully occupied. • Provided funds for over 1,250 children access to the Boys and Girls Club program at five of our affordable housing family complexes. • Provided funds to add a commercial kitchen to the Mary Isaak Center. • Provided funds to the City's Fair Housing program that provided accessibility to services for over 1,206 people. 7