Agenda Item Wording:
title
Review and comment on the proposed use of U.S. Department of Housing and Urban and Development (HUD) Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and HOME Investment Partnership American Rescue Plan Program (HOME-ARP) funds including: 1) The Draft Program Year 2022 Annual Action Plan, and 2) The Draft Program Year 2021 Annual Action Plan Amendment, including the Draft HOME-ARP Allocation Plan.
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Deadline for Action: 4/4/2022
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
Margie Perez, Housing Specialist, (559) 713-4460, margie.perez@visalia.city <mailto:margie.perez@visalia.city>;
Melody Murch, Assistant Finance Director, (559) 713-4379, melody.murch@visalia.city <mailto:melody.murch@visalia.city>;
Renee Nagel, Finance Director, (559) 713-4378, renee.nagel@visalia.city <mailto:renee.nagel@visalia.city>
Department Recommendation: That Council review and comment on the Draft CDBG and HOME priorities and allocation of resources included in the Draft 2022 Annual Action Plan and Draft 2021 Annual Action Plan Amendment including the Draft HOME-ARP Allocation Plan and receive public comment.
Background Discussion:
Staff is seeking input from City Council on the priorities and activity allocations proposed for the Program Year (PY) 2022 (Fiscal Year 2022-23) Annual Action Plan and PY 2021 (Fiscal Year 2021-22) Annual Action Plan Amendment including the HOME-ARP Allocation Plan. The proposed programs for the Draft PY 2022 Action Plan were formulated based upon applications received in response to a Notice of Funding Availability (NOFA) for the available funding.
Staff is also requesting Council review and comment on a proposed 2021 Annual Action Plan Amendment that includes the draft HOME-ARP Allocation Plan. The City has been awarded $1,840,059 in HOME Investment Partnership American Rescue Plan (HOME-ARP) funds, from the U.S. Department of Housing and Urban Development (HUD) to assist people experiencing homelessness, at-risk of homelessness, and other vulnerable populations by providing housing, shelters, rental assistance, and/or supportive services to reduce homelessness and increase housing stability. This amendment will satisfy the HUD requirement to develop and submit a HOME-ARP Allocation Plan for the use of this PY 2021 funding.
Staff will incorporate any changes directed by Council and return with the final 2022 Annual Action Plan and 2021 Annual Action Plan Amendment including the HOME-ARP Allocation Plan on April 18, 2022, to hold a public hearing for adoption. The final plan and amendment will include any comments provided by Council today, those received during the Citizens Advisory Committee (CAC) on April 6, 2022, and all public comments received during the 30-day public comment period beginning on March 18, 2022 through April 18, 2022. The adopted 2022 Annual Action Plan must be submitted to HUD by May 15, 2022.
As an entitlement community (EC) for CDBG and a participating jurisdiction (PJ) for HOME, the City of Visalia receives annual federal formula grants through HUD. This provides the City with annual direct grant funding primarily for the benefit of low-income persons and households. As required by HUD, the City develops a 5-year Strategic Plan based on a Community Needs Assessment which is reviewed and approved by Council during the development of the Consolidated Plan (Con Plan). The 2022 Annual Action Plan is the third year of the 5-Year ConPlan and the plan objectives have been produced based upon those established in the City’s 5-year Strategic Plan.
2022 Proposed Annual Action Plan: The proposed 2022 Annual Action plan consists of a total of $3,184,163 in CDBG projected resources, and $707,520 in HOME projected resources. The 2022 proposed CDBG and HOME resources, activities, and funding allocations are explained in further detail below.
2022 Proposed Community Development Block Grant (CDBG) Revenue and Expenses:
The CDBG 2022 projected resources are comprised of $1,300,000 in estimated annual grant allocation, $50,000 in estimated program income*; and $1,834,163 in prior year resources which have been carried forward for a total 2022 CDBG projected resources available of $3,184,163 as identified in Table 1: 2022 CDBG Projected Resources. *CDBG Program income is generated from repayment of CDBG funded first-time homebuyer and/or owner-occupied rehabilitation loans.
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Table-1: 2022 CDBG Projected Resources |
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Resources |
Amount |
|
2022 Annual Allocation |
$ 1,300,000 |
|
2022 Program Income |
50,000 |
|
Prior Year Resources |
1,834,163 |
|
Total 2022 CDBG Projected Resources |
$ 3,184,163 |
The City released a NOFA from January 12, 2022 through February 11, 2022 to solicit applications for the administration the City’s 2022 CDBG public services, emergency and accessibility home repair program, and senior/disabled mobile home repair program. The NOFA was published in the Visalia Times Delta on 1/12/22 and 1/18/22. The NOFA was also posted on the City’s purchasing website, the Central Valley Purchasing System “BidNet”, and on the Kings Tulare Homeless Alliance listserv on January 12, 2022, to over 330 recipients.
As a result of the release of the CDBG NOFA, the City received the following applications:
• Kings Tulare Homeless Alliance - Requested $20,000 in CDBG funds. The Kings Tulare Homeless Alliance (KTHA) is the designated Continuum of Care (CoC) for our region. The CoC is recommended by HUD as a comprehensive and strategic approach to addressing homelessness and to promote communitywide commitment to ending homelessness. As the designated CoC, KTHA oversees the Point in Time (PIT) Count. KTHA oversees the administration of HUD funded Permanent Supportive Housing (PSH) and Rapid Rehousing (RRH) programs. KTHA oversees the Coordinated Entry System (CES) that begins the process of housing placement. KTHA also operates the Visalia Local Initiatives Navigation Center (LINC) to provide wrap-around services including mental health assessments/enrollments, housing counseling, free birth certificates, CA ID vouchers, mainstream benefit enrollment, social security advocacy, substance abuse program enrollments, veteran services, food, prescription eyeglasses, and clothing assistance.
• Family Services of Tulare County - Requested $45,000 for the “Voucher” program to continue providing case management and essential supportive services to Visalia chronically homeless persons who are receiving a PSH voucher through the HUD funded Tulare Housing First grants, previously known as the Shelter Plus Care program. The requested funds would also contribute towards the match required for the receipt of the HUD funded Tulare Housing First grant funds. The Tulare Housing First program is funded with a federal (HUD) funds and vouchers are available countywide. Family Services assist clients to maintain housing stability, by providing case management, financial literacy, life skills workshops, transportation assistance, emergency assistance, such as food, clothing, and furniture assistance. Family Services also serves as a landlord liaison for clients.
• Kings View PATH Program - Requested $35,000 to leverage existing funding sources to provide direct client services for outreach, case management, transportation assistance, legal document assistance, linkage to employment services, and completion of the VI-SPDAT assessment to begin housing placements. Requested funding would provide direct client assistance including security deposits, rental application fees, motel vouchers, legal document fees, interview clothing assistance, food vouchers, hygiene kits, and emergency rental assistance to prevent homelessness.
• Habitat for Humanity - Requested $50,000 to administer an Emergency Repair and Accessibility Program (ERAP) to provide at least 8 low-income owner-occupied households with necessary emergency and accessibility repairs and improvements. Improvements may include but are not limited to accessibility improvements, energy efficient upgrades, weatherization, roof repairs, plumbing and electrical repairs.
• Self-Help Enterprises - Requested $100,000 to administer a Senior/Disabled Mobile Home Repair Program (SMHRP) to provide at least 7 senior and/or disabled owner-occupied mobile homeowners with necessary repairs including roof repair/replacement, accessibility improvements, floor repair/replacement, and energy efficient improvements.
• Riding for a Reason (application has since been withdrawn*) - Requested $500,000 for operating assistance to assist individuals who have suffered financial hardship due to a serious illness. Riding for a Reason plans to develop a community building, and nursery. Riding for a Reason also plans to provide education on water conservation, pollution reduction, reduce carbon emissions, solar alternatives, recycling, and gardening. *Riding 4 a Reason decided to withdraw their application due to their program’s inability to meet a required national CDBG objective and the client expenditure ratio threshold.
Staff Recommended 2022 Annual Action Plan Activities (Attachment C):
A discussion of the proposed 2022 Annual Action Plan activities and their respective funding follows below. A summary of the proposed funding has also been provided in Attachment D. Staff requests that Council comment, discuss, and direct any necessary changes to the proposed project and program allocations. The 2022 CDBG administration and planning budget is $262,500, which is 20% of the 2022 combined total of grant allocation and program income.
The 2022 Proposed CDBG Public Services are listed below and included in Table-2: 2021 CDBG Proposed Public Services.
• Kings Tulare Homeless Alliance - At $20,000 to weekly operate the Visalia Local Initiatives Navigation Center (LINC) to provide wrap-around services for people experiencing homelessness, including mental health assessments/enrollments, housing counseling, birth certificates, CA ID vouchers, mainstream benefit enrollment, social security advocacy, substance abuse program enrollments, veteran services, hygiene kits, and food. KTHA will also oversee the annual PIT count expected in January 2023.
• Family Services of Tulare County - At $45,000 for the “Voucher” program to continue to provide case management and supportive services to chronically homeless persons in Visalia who are receiving a Tulare Housing First permanent supportive housing voucher. These funds are also used as match to secure the Tulare Housing First grants and PSH vouchers. The Tulare Housing First program is funded with a federal (HUD) grant and vouchers are available countywide.
• Kings View PATH Program - At $35,000 to provide direct homeless services and homeless prevention services. Services include case management, transportation assistance, legal document assistance, linkage to employment services, and completion of the VI-SPDAT assessment. Direct client assistance includes security deposits, rental application fees, motel vouchers, legal document fees, interview clothing assistance, food vouchers, hygiene kits, and emergency rental assistance to prevent evictions.
• Fair Housing Education - At $7,500 to provide fair housing education. Fair Housing Education was identified as a community need during the development of the 5-year Consolidated Plan and Analysis of Impediments to Fair Housing Choice.
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Table-2: 2022 CDBG Proposed Public Services |
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Kings Tulare Homeless Alliance |
$ 20,000 |
|
Family Services Voucher Program |
45,000 |
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Kings View PATH Program |
35,000 |
|
Fair Housing Education |
7,500 |
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Total 2022 CDBG Proposed Public Services |
$ 107,500 |
The 2022 CDBG Proposed Affordable Housing Projects are listed below and included in Table-3: 2022 CDBG Projected Affordable Housing.
• Habitat for Humanity - At $50,000 to administer an Emergency Repair and Accessibility Program (ERAP) to provide at least 8 low-income owner-occupied households with necessary emergency and accessibility repairs and improvements.
• Self-Help Enterprises - At $100,000 to administer a Senior Mobile Home Repair Program (SMHRP) to provide at least 7 senior and/or disabled owner-occupied mobile homeowners with necessary repairs including roof repair/replacement, accessibility improvements, floor repair/replacement, and energy efficient improvements.
• Code Enforcement - At $150,000 to provide code enforcement inspections in CDBG eligible low-moderate income target areas to address substandard housing. This funding pays the full cost of one staff position which is responsible for code enforcement in CDBG Target Areas. This staff position has been funded with CDBG annually for 25+ years. Code Enforcement activities were identified as an objective during the during the development of the 5-year Consolidated Plan.
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Table-3: 2022 CDBG Proposed Affordable Housing |
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Emergency Repair and ADA Program |
$ 50,000 |
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Senior Mobile Home Repair Program |
100,000 |
|
Code Enforcement |
150,000 |
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Total 2022 CDBG Proposed Affordable Housing |
$ 300,000 |
The 2022 CDBG proposed facility improvement projects are listed below and included in
Table-4: 2022 CDBG Projected Facility Improvement Projects.
• ADA Compliance Projects - $458,958 to for ADA compliance projects, which includes design and construction of an ADA improvements in the downtown area, including a ADA pathway from Transit to Main Street per the request of the Disability Advocacy Committee (DAC).
*Any increase or decrease of FY 2022 CDBG annual allocation or program income will be an adjustment to ADA Compliance Projects.
• Navigation Center Development - $2,055,205 to develop a low-barrier Navigation Center for Visalia’s homeless population through acquisition and/or rehabilitation. On June 21, 2021, Council authorized the use of CDBG funds, in the amount of $2,055,205 over the course of two years, toward the development of a low-barrier Navigation Center. The first year’s allotment of $1,834,163 has not been spent and is being carried forward as identified in the 2021 Annual Action Amendment. The $2,055,205 represents the City’s full CDBG investment in the construction of this facility.
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Table-4: 2022 CDBG Proposed Facility Improvement Projects |
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ADA Compliance Projects |
$ 458,958 |
|
Navigation Center Development |
2,055,205 |
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Total 2022 CDBG Proposed Public Facility Improvement Projects |
$ 2,514,163 |
2022 Proposed HOME Investment Partnership Program (HOME) Revenue and Expenses:
The 2022 HOME projected revenue includes $507,520 in estimated annual grant allocation, and $200,000 in estimated program income as identified in Table 5: 2022 HOME Projected Resources. *HOME program income is generated from repayment of HOME funded first-time homebuyer and/or owner-occupied loans.
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Table-5: 2022 HOME Projected Resources |
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2022 Annual Allocation |
$ 507,520 |
|
2022 Program Income |
200,000 |
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Total 2022 HOME Projected Resources |
$ 707,520 |
The 2022 Proposed HOME funding is listed below and included in Table-6: 2022 HOME Proposed Funding.
• HOME Administration - $70,750 for 2022 HOME Admin and Planning. This represents the 10% allowed for administration of the HOME program by HUD.
• First Time Homebuyer Program - $125,000 for 5 first time homebuyer assistance loans at $25,000 each, for the 5 HOME assisted single family homes under construction on NW 5th Avenue and N Court Avenue.
• The Lofts Project - $511,770 to construct an 80-multi-unit affordable rental housing complex. As a HOME Participating Jurisdiction, the City is required to provide at least 15% of HOME funds to a Community Housing Development Organization (CHDO) to develop affordable housing. Self Help Enterprises (SHE) is currently the only CHDO for the City of Visalia and the Lofts Project funding satisfies this HOME requirement. *Any increase or decrease of FY 2022 HOME annual allocation or program income will be an adjustment to the Lofts Project.
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Table-6: 2022 HOME Proposed Funding |
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HOME Administration |
$ 70,750 |
|
First Time Homebuyer Program (For NW 5th Ave. Homes) |
125,000 |
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The Lofts Project |
511,770 |
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Total 2021 HOME Proposed Funding |
$ 707,520 |
The 2021 Annual Action Plan Amendment:
The Program Year (PY) 2021 Community Development Block Grant (CDBG) Annual Action Plan (AAP) Amendment is comprised of funding in the amount of $1,834,163 from the 2021 Navigation Center project and carried forward to the 2022 Annual Action Plan as shown in Table-7: 2021 CDBG Annual Action Plan Amendment. Those funds were awarded for the development of the Navigation Center in the 2021 PY and will be combined with the 2022 Annual Action Plan allocation for this project.
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Table-7: 2021 CDBG Annual Action Plan Amendment |
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Resources |
Approved |
Adjustments |
Proposed |
|
2021 Annual Allocation |
$ 1,288,951 |
|
$ 1,288,951 |
|
2021 Program Income |
50,000 |
|
50,000 |
|
Prior Year Resources |
1,306,758 |
|
1,306,758 |
|
Total Resources |
$ 2,645,709 |
$ - |
$ 2,645,709 |
|
Expenditures |
Approved |
Adjustments |
Proposed |
|
Administration |
$ 264,046 |
|
$ 264,046 |
|
Kings Tulare Homeless Alliance |
20,000 |
|
20,000 |
|
Family Services Voucher Program |
45,000 |
|
45,000 |
|
Kings View PATH Program |
25,000 |
|
25,000 |
|
United Way of Tulare County |
50,000 |
|
50,000 |
|
Fair Housing Education |
7,500 |
|
7,500 |
|
Emergency Repair and ADA Program |
50,000 |
|
50,000 |
|
Senior Mobile Home Repair Program |
100,000 |
|
100,000 |
|
Code Enforcement |
150,000 |
|
150,000 |
|
ADA Compliance Projects |
100,000 |
|
100,000 |
|
Navigation Center (Forward to 2022 AAP) |
1,834,163 |
(1,834,163) |
- |
|
Total Expenditures |
$ 2,645,709 |
$ (1,834,163) |
$ 811,546 |
|
Carryover |
- |
$ 1,834,163 |
$ 1,834,163 |
The 2021 HOME Annual Action Plan Amendment includes an addition of $55,000 of program income, $875,334 from prior years HOME grant funds, and $1,840,059 in HOME ARP funds for a total of $2,770,393 of HOME funds added to the 2021 Annual Action Plan. The 2021 HOME Action Plan Amendment also includes a reduction of $98,765 of HOME Admin, an allocation of $40,059 in HOME-ARP admin, an allocation of $1,029,099 to the single-family homes under construction at NW 5th Avenue, and an allocation of $1,800,000 to a HOME-ARP project to be determined as shown below in Table 8 - FY 2021 HOME Annual Action Plan Amendment.
Prior Years Funds: The 2021 HOME AAP Amendment includes $875,334 from prior year HOME funds from the previously approved NW 5th Ave. project. The NW 5th Ave. project includes construction of 5 single family affordable homes on vacant lots. Due to a delay in the construction of this project which resulted from the Covid-19 pandemic, the NW 5th Ave. activities have been canceled in the 2019 Annual Action Plan in U.S. Department of Housing and Urban Development (HUD) Integrated Disbursement & Information System (IDIS) and will now be included in 2021 Annual Action Plan Amendment.
HOME-ARP Funds: The City has been awarded $1,840,059 in 2021 HOME-ARP funds, to reduce homelessness and increase housing stability. On December 20, 2021, Council directed staff to prepare the HOME-ARP Allocation Plan as an amendment to the 2021 Annual Action Plan and to release an RFP seeking a nonprofit to develop permanent affordable rental housing for qualified City residents. This RFP is currently on the street being advertised. As a result, this is the final step to file the Amendment and submit to HUD. The draft HOME-ARP Allocation Plan is attached herein as Attachment C: Draft HOME-ARP Allocation Plan.
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Table-8: 2021 HOME Annual Action Plan Amendment |
|
Resources |
Approved |
Adjustments |
Proposed |
|
2021 HOME Allocation |
$ 507,520 |
$ - |
$ 507,520 |
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2021 Program Income |
200,000 |
55,000 |
255,000 |
|
Prior Year Funds |
2,365,371 |
875,334 |
3,240,704 |
|
HOME-ARP |
|
1,840,059 |
1,840,059 |
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Total Resources |
$ 3,072,891 |
$ 2,770,393 |
$ 5,843,283 |
|
Expenditures |
Approved |
Adjustments |
Proposed |
|
HOME Admin |
$ 257,409 |
$ (98,765) |
$ 158,643 |
|
HOME-ARP Admin |
|
40,059 |
40,059 |
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Tenant-Based Rental Assistance |
150,000 |
|
150,000 |
|
Sequoia Village Project |
1,500,000 |
|
1,500,000 |
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The Lofts Project |
1,165,482 |
|
1,165,482 |
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NW 5th Avenue Project |
|
1,029,099 |
1,029,099 |
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HOME-ARP Project |
|
1,800,000 |
1,800,000 |
|
Total Expenditures |
$ 3,072,891 |
$ 2,770,393 |
$ 5,843,283 |
|
Carryover |
$ - |
$ - |
$ - |
Public Hearing for Adoption: Staff will return to Council with the final PY 2022 Annual Action Plan and PY 2021 Action Plan Amendment, including the HOME-ARP Allocation Plan on April 18, 2022, to hold a public hearing for adoption. This will include the comments provided by Council today, those received at meetings with the Citizens Advisory Committee (CAC) on April 6, 2022, and all public comments received during the 30-day Public Review Period commencing March 18, 2022 through April 18, 2022. The adopted PY 2022 Annual Action Plan must be submitted to HUD no later than May 15, 2022.
Fiscal Impact:
All expenditures proposed in this item will be funded with CDBG, HOME, and HOME-ARP grant funds and no General Fund money is to be included. All proposed budget amounts will be included in the final City budget document for appropriation in June 2022.
Prior Council Action:
• December 20, 2021 - HOME-ARP Public Hearing to review and comment on the development of HOME-ARP Allocation Plan.
• June 21, 2021 - Council authorized the use of CDBG funds, in the amount of $2,055,205, as a forgivable loan, toward the development of a low-barrier Navigation Center.
• November 16, 2021 - Council authorized a preliminary award letter for a commitment to Self-Help Enterprises in $2,350,898 of HOME funds to construct the Lofts 80-unit mulit-family project.
• April 20, 2020 - Adoption of 5-year (2020/21 - 2024/25) Consolidated Plan
Other: None
Alternatives: None
Recommended Motion (and Alternative Motions if expected):
recommendation
That Council review and comment on the Draft U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG), HOME Investment Partnership Program, and HOME Investment Partnership American Rescue Plan Program (HOME-ARP) priorities and allocation of resources included in the Draft 2022 Annual Action Plan and Draft 2021 Annual Action Plan Amendment, including the Draft HOME-ARP Allocation Plan and provide the opportunity for the public to comment.
end
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
• Attachment A: Draft 2022 Annual Action Plan
• Attachment B: Draft 2021 Annual Action Plan Amendment
• Attachment C: Draft HOME-ARP Allocation Plan
• Attachment D: Draft 2022 AAP & 2021 AAP Amendment Tables
• Attachment E: Draft 2022 AAP & 2021 AAP Amendment PPT