HomeMy WebLinkAboutStaff Report 5.A 05/02/2016Agenda Item #5.A
DATE: May 2, 2016
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Sue Castellucci, Housing Administrator �!
SUBJECT: Public Hearing to Receive Comments on the 2016 -2017 Proposed Action Plan
and Adoption of a Resolution Approving the Community Development Block
Grant Action Plan and Authorizing the City Manager to Sign All Documents
Required by the Department of Housing and Urban Development
RECOMMENDATION
It is recommended that the City Council hold a Public Hearing to Receive Comments on the
2016 -2017 Proposed Action Plan and Adopt a Resolution Approving the Community
Development Block Grant Action Plan and Authorizing the City Manager to Sign All
Documents Required by the Department of Housing And Urban Development (HUD).
BACKGROUND
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." The City of Petaluma has "entitlement" status under the CDBG program and, as such,
receives an annual allocation of funding for eligible activities. The CDBG funding allocation is
made available to non - profit agencies who apply for the funding. The applications are evaluated
by staff and recommendations for funding are presented for City Council review.
Requests for funding for projects and programs must address not only the national objectives, but
also the Council's local priorities as outlined in the proposed 2015 -2020 Consolidated Plan. The
document, required by HUD, is to serve as a five -year planning tool and as an application for
federal funding. The priorities of the 2015 -2020 Consolidated Plan are:
• Improve housing opportunities by preserving existing affordable housing
• Provide housing and services to the low income population, including but not limited to,
children, seniors, and special needs populations
• Increase the supply of affordable housing
• Promote housing opportunities for homeownership
• Improve accessibility in public facilities and infiastructure
DISCUSSION
The City's CDBG entitlement is determined by HUD utilizing a formula based on population,
poverty, housing conditions, etc. This year Petaluma's allocation for FY 2016 -2017 is $344,211.
The City has limited funding options to offer to the nonprofits who provide vital services and
programs to the low income households in Petaluma. The majority of the community's nonprofit
housing and service providers have worked diligently to adapt to this changing environment by
economizing, downsizing, collaborating, and reinventing their organizations.
Therefore, following discussions with the CDBG applicants, the funding recommendations
presented to Council this year are those that realize the best use of funds with the most potential
for leveraging those funds with collaboration of other agencies. Other conditions upon which
staff recommendations are based are: (1) maximize the 20% allowable administration costs to
this program to fund staffing costs due to the overall shortages in other Housing Funds; (2) fund
programs which provide the most basic life support services; (3) fund a minimal number of
subrecipient agreements in order to minimize staff oversight and monitoring responsibilities.
Attachment #2 outlines agency requests and staff recommendations. Each applicant has been
notified of the public hearing and representatives from each agency have been invited to attend,
present information if they wish and be available for questions from Council.
As part of the application process, the City of Petaluma agrees to several CDBG certifications as
required by 24 CFR 91.225. These certifications align with the City's policies, such as a Drug -
Free Workplace, Anti- Lobbying, and Affirmatively Further Fair Housing. The CDBG sub -
recipient agreement was just updated to provide that all HUD's regulations and certifications are
passed through to our nonprofit sub - recipients.
CDBG PROCESS
The Petaluma Block Grant application process consisted of a public notice, application packets
to community agencies and other City departments, and a technical assistance workshop. At that
workshop, staff presented the current fiscal situation. Four applications were received from
nonprofit service providers and the City's Code Enforcement division.
There are two statutory restrictions on the funds: (1) a 20% cap on expenditures for program
administration; and (2), a 15% cap on expenditures for "public service" activities. Program
administration expenses include Block Grant staff and support services, and a share of
Petaluma's commitment to the county -wide Continuum of Care program. Public services are
defined as those which "improve the community's facilities, such as child care, health services,
drug abuse programs, services to seniors, etc."
2016 -2017 Entitlement
Administration Cap
Public Service Cap
$ 344,211
68,842
51,631
2
In accordance with CDBG regulations, the City of Petaluma has published a public notice for the
2016 -2017 Action Plan. Staff will respond to any community questions and comments. The
public comment period ends April 28, 2016. The Action Plan will be submitted to HUD by May
15, 2016; funds are available as of July 1, 2016.
FINANCIAL IMPACTS
The Block Grant Program is fiscally self - sustaining. All administrative, project, and program
expenditures are covered by the entitlement revenues. The CDBG grant for FY 2016 -2017 is
$344,211.
ATTACHMENTS
1. Resolution
2. CDBG Certifications
3. CDBG Proposals for FY 2016 -2017
ATTACHMENT 1
Resolution Approving The Community Development Block Grant 2016
Action Plan And Authorizing The City Manager To Sign All Documents
Required By The Department Of Housing And Urban Development
WHEREAS, the City of Petaluma is an entitlement community under the jurisdiction of
the Department of Housing and Urban Development (HUD) Community Development Block
Grant Program; and
WHEREAS, 24 CFR 91.220 requires the City to submit an annual Action Plan which is
comprised of the community's projected use of Block Grant funds to address community needs;
and
WHEREAS, all projects and programs which are proposed for funding address one or
more of the national objectives of the CDBG program and the priorities of the City's 2015 -2020
Consolidated Plan; and
WHEREAS, a public hearing was noticed on January 21, 2016 and March 24, 2016 and
a public hearing was conducted on May 2, 2016 to hear comments from the community on the
proposed projects and programs and the City Council found the proposed funding plan to be
consistent with the Consolidated Plan; and
NOW, THEREFORE, BE IT RESOLVED by the Petaluma City Council as follows:
The Action Plan, as attached, is approved and adopted for FY 2016 -2017.
2. The City Manager, or his designee, is authorized to sign all program documents
required by the Department of Housing and Urban Development for the 2016 -2017
Action Plan.
3. Should there be changes in the 2016 -2017 entitlement amount, the City Manager is
authorized to increase /decrease each sub - recipient's allocation proportionately.
11
ATTACHMENT 2
CERTIFICATIONS
In accordance with the applicable statutes and the regulations governing the consolidated plan
regulations, the jurisdiction certifies that:
Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which
means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take
appropriate actions to overcome the effects of any impediments identified through that analysis, and
maintain records reflecting that analysis and actions in this regard.
Anti - displacement and Relocation Plan -- It will comply with the acquisition and relocation
requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a
residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing
and Community Development Act of 1974, as amended, in connection with any activity assisted with
funding under the CDBG or HOME programs.
Anti- Lobbying -- To the best of the jurisdiction's knowledge and belief:
No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person
for influencing or attempting to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any Federal grant, the
making of any Federal loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement;
If any funds other than Federal appropriated funds have been paid or will be paid to any person
for influencing or attempting to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and
submit Standard Form -LLL, 'Disclosure Form to Report Lobbying," in accordance with its
instructions; and
It will require that the language of paragraph l and 2 of this anti - lobbying certification be
included in the award documents for all subawards at all tiers (including subcontracts, subgrants,
and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall
certify and disclose accordingly.
Authority of Jurisdiction -- The consolidated plan is authorized under State and local law (as
applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is
seeking funding, in accordance with applicable HUD regulations.
Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and
HOPWA funds are consistent with the strategic plan.
Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968, and
implementing regulations at 24 CFR Part 135.
Signature /Authorized Official Date
Specific CDBG Certifications
The Entitlement Community certifies that:
Citizen Participation -- It is in 11-611 compliance and following a detailed citizen participation plan that
satisfies the requirements of 24 CFR 91.105.
Community Development Plan -- Its consolidated housing and community development plan identifies
community development and housing needs and specifies both short -term and long -term community
development objectives that provide decent housing, expand economic opportunities primarily for
persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570)
Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability
Strategy) that has been approved by HUD.
Use of Funds -- It has complied with the following criteria:
1. Maximum Feasible Priority. With respect to activities expected to be assisted with CDBG funds,
it certifies that it has developed its Action Plan so as to give maximum feasible priority to
activities which benefit low and moderate income families or aid in the prevention or elimination
of slums or blight. The Action Plan may also include activities which the grantee certifies are
designed to meet other community development needs having a particular urgency because
existing conditions pose a serious and immediate threat to the health or welfare of the
community, and other financial resources are not available);
2. Overall Benefit. The aggregate use of CDBG funds including section 108 guaranteed loans
during program year(s) (a period specified by the grantee consisting of one,
two, or three specific consecutive program years), shall principally benefit persons of low and
moderate income in a manner that ensures that at least 70 percent of the amount is expended
for activities that benefit such persons during the designated period;
3. Special Assessments. It will not attempt to recover any capital costs of public improvements
assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount
against properties owned and occupied by persons of low and moderate income, including any fee
charged or assessment made as a condition of obtaining access to such public improvements.
However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to
the capital costs of public improvements (assisted in part with CDBG funds) financed from
other revenue sources, an assessment or charge may be made against the property with respect
to the public improvements financed by a source other than CDBG funds.
The jurisdiction will not attempt to recover any capital costs of public improvements assisted
with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of
fee or assessment attributable to the capital costs of public improvements financed from other
revenue sources. In this case, an assessment or charge may be made against the property with
respect to the public improvements financed by a source other than CDBG funds. Also, in the
case of properties owned and occupied by moderate- income (not low- income) families, an
assessment or charge may be made against the property for public improvements financed by a
source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the
assessment.
Excessive Force -- It has adopted and is enforcing:
1. A policy prohibiting the use of excessive force by law enforcement agencies within its
Excess
jurisdiction against any individuals engaged in non - violent civil rights demonstrations; and
A policy of enforcing applicable State and local laws against physically barring entrance to or
exit from a facility or location which is the subject of such non - violent civil rights
demonstrations within its jurisdiction;
Compliance With Anti - discrimination laws -- The grant will be conducted and administered in
conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC
3601- 3619), and implementing regulations.
Lead -Based Paint -- Its activities concerning lead -based paint will comply with the requirements of 24
CFR Part 35, subparts A, B, J, K and R;
Compliance with Laws -- It will comply with applicable laws.
Signature/Authorized Official Date
Title
ATTACHMENT #3
2016 -2017 CDBG PROPOSALS
Worldng in partnership with CDBG applicants, RTP will continue to be the City's main
rehabilitation arm, coordinating suppliers and volunteers to respond to the community's
rehabilitation needs.
SUMMARY OF REQUESTS AND RECOMMENDATIONS
1. The City of Petaluma is allowed a maximum of $68,842 (20% of total grant) to
administer the CDBG program, under the Administrative Cap rule. The administrative funds can
utilized for salaries; supplies; Block Grant's share of intergovernmental transfers; various
consulting agreements, including Petaluma's share of administering the County -wide Continuum
of Care Program. Additionally, the City's Code Enforcement staff has requested funding for the
ongoing operation and continuing education related to the City's code enforcement software
program.
Total Petalumans served: N/A
Staff Recommendation: $64,281
2. Petaluma People Services Center (PPSC) has requested $48,000 to continue PPSC's
Home Delivered Meals Program. In PPSC's application, it was projected that $105,703 of other
funds will be used for their Meals on Wheels program to provide this valuable service. Through
the Home Delivered Meals program, which operates every day of the year, homebound seniors
receive a daily hot meal and security check, nutritional assessments, and, when needed,
Funds
Funds
Nat'l
Agency
Project Description
Requested
Recommended
Objective
• Intergovernmental
transfers
• Code Enforcement
I
City
Software
$64,281
$64,281
N/A
• Audit
• Continuum of Care
• Staff Admin
Suitable
2
$48,000
$48,000
Living
PPSC
Senior Meals
Environment
Providing
3
Rehabilitation low
$223,000
$223,000
decent
Rebuilding Together
income properties
housing
Providing
4
Rehabilitation of 2 of its
$16,000
$8,919
decent
PEP Housing
older properties
housing
2016 -2017 TOTALS
$351,281
$344,200
Worldng in partnership with CDBG applicants, RTP will continue to be the City's main
rehabilitation arm, coordinating suppliers and volunteers to respond to the community's
rehabilitation needs.
SUMMARY OF REQUESTS AND RECOMMENDATIONS
1. The City of Petaluma is allowed a maximum of $68,842 (20% of total grant) to
administer the CDBG program, under the Administrative Cap rule. The administrative funds can
utilized for salaries; supplies; Block Grant's share of intergovernmental transfers; various
consulting agreements, including Petaluma's share of administering the County -wide Continuum
of Care Program. Additionally, the City's Code Enforcement staff has requested funding for the
ongoing operation and continuing education related to the City's code enforcement software
program.
Total Petalumans served: N/A
Staff Recommendation: $64,281
2. Petaluma People Services Center (PPSC) has requested $48,000 to continue PPSC's
Home Delivered Meals Program. In PPSC's application, it was projected that $105,703 of other
funds will be used for their Meals on Wheels program to provide this valuable service. Through
the Home Delivered Meals program, which operates every day of the year, homebound seniors
receive a daily hot meal and security check, nutritional assessments, and, when needed,
individualized counseling by a registered dietician. Meals are cooked on weekdays at the PPSC
newly renovated commercial kitchen, located in the senior Center at 211 Novak Drive. On
weekends PPSC purchases meals prepared by Petaluma Valley hospital. Meals are delivered
seven days a week by caring PPSC volunteers.
Total Meals Delivered: 27,000
Staff Recommendation: $48,000
3. Rebuilding Together Petaluma (RTP) requested $223,000 to serve as the City's
rehabilitation arm. RTP, previously funded from the PCDC Low -Mod housing set - aside, is in its
20th year of providing much needed, free of charge, home repair, home modifications (for
disabled persons), and water and energy efficient services to low and very low income
homeowners and renters, as well as repairs and major maintenance on nonprofit facilities.
Because of budget cuts, the City no longer has the staff capability to responsibly administer
many small contracts. During the year, Rebuilding Together will utilize skilled and unskilled
labor valued at $425,000 to get the work done. RTP will be coordinating with other nonprofit
CDBG applicants to address the rehabilitation requests from our low - income community.
Because they use volunteer workers and donated materials, RTP is able to greatly leverage
CDBG's limited funds.
Total number of persons served: 43 homeowners and 65 home repair projects;
Staff Recommendation: $223,000
4. PEP Housing requested $16,000 to rehabilitate two of their older properties, which
include, 154 Wilson (new water heaters and fence repair); and 1275 Lindberg Lane (updated
emergency call system). There is not enough CDBG funds to complete all the projects, so staff
is recommending to do the new water heaters at 154 Wilson and the emergency call update at
1275 Lindberg Lane. The fence can be completed using other nonprofit agencies and
coordinating with neighboring property owners.
Total number of persons served: 22 persons
Staff Recommendation: $8,919
M