HomeMy WebLinkAbout5C OCRCity Council Staff Re{Jorl
DATE: November 12, 2020 DISCUSSION
SUBJECT: DISCUSS AMENDMENT TO COMMUNITY DEVELOPMENT BLOCK
GRANT CONSOLIDATED PLAN AND ANNUAL ACTION PLAN FOR THE
FISCAL YEAR 2020-2021 COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM, 45TH PROGRAM YEAR FOR ALLOCATING COMMUNITY
DEVELOPMENT BLOCK GRANT -CORONA VIRUS FUNDS
FROM: David H. Ready, City Manager
BY: Department of Community & Economic Development
SUMMARY
The City of Palm Springs has received an allocation of Community Development Block
Grant Corona Virus Round 3 (CDBG-CV3) funds in the amount of $584,613. In
addition, $16,764 of Community Development Block Grant Corona Virus (CDBG-CV)
funds are also available for re-allocation. Staff is requesting direction from the City
Council for use of these funds. A public hearing will be scheduled for a future City
Council meeting to approve an amendment to the 2020-2021 Community Development
Block Grant (CDBG) Consolidated Plan and Annual Action Plan to incorporate City
Council's recommendations for approval by the U.S. Department of Housing and Urban
Development (HUD).
RECOMMENDATION
1. Discuss an increase to the 2020-2021 Consolidated Plan and Annual Action Plan
by $584,613 in Community Development Block Grant Corona Virus Round 3
funds, and re-allocate $16,764 of Community Development Block Grant Corona
Virus funds for the 2020-2021 Community Development Block Grant
Consolidated Plan and Annual Action Plan for the City of Palm Springs.
BACKGROUND
Palm Springs is an "entitlement city," meaning that it is a direct recipient of CDBG funds
from the federal government. The CDBG Program was adopted by Congress forty-six
years ago to provide a flexible funding source for local governments to meet the
community development needs of their low and moderate-income (Low/Mod) residents
and was the first federal block grant. This direct grant from HUD enables entitlement
rn:M No._ .. 5C ___ _
2City Council Staff Report November 12, 2020-Page 2 of 5 CDBG 2021 Program Amendment Discussion units of governments to fund three National Objectives: benefiting Low/Mod persons; preventing or eliminating slums or blight; and, meeting urgent need. The federal statute also requires that at least 70% of CDBG expenditures must benefit Low/Mod persons. As an entitlement grantee, the City has and will continue to utilize these funds for neighborhood revitalization, preserving decent housing, expanding economic opportunities, and/or improving community facilities and services, principally to benefit Low/Mod persons. Current CDBG and CDBG-CV Allocations The "regular" allocation of CDBG funds were approved by City Council on May 14, 2020, when the City Council allocated $449,050 in CDBG funds as follows: Public Facilities and Improvements Public Services Rehabilitation Administration Total CDBG $305,552 43,688 10,000 89.810 $449,050 The allocations of CDBG funds are detailed in ATTACHMENT 1. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into Public Law 116-136 on March 27, 2020, to respond to the growing effects of COVID-19. The CARES Act made available $5 billion in Community Development Block Grant Coronavirus funds. Of this amount, HUD initially allocated $2 billion based on the fiscal year 2019-2020 CDBG formula and made the first round of fund allocations earlier in 2020. On July 9, 2020, the City Council allocated $264,161 of CDBG-CV funds as follows: Public Services Administration Total CDBG-CV $211,329 52.832 $264,161 The allocations of CDBG-CV funds were made based on a pro rata share of awards provided through the City's Community Grant program and are detailed in ATTACHMENT 2. It should be noted that $16,764 of the CDBG-CV funds may be re-allocated as the LGBT Center of the Desert declined the CDBG-CV funds. CDBG-CV3 Allocation -HUD has now allocated the remaining $3 billion of the $5 billion the CARES Act made available in Community Development Block Grant Coronavirus funds based on needs in the following tranches: $1 billion to states and insular areas, and $2 billion to states and local governments at the discretion of the HUD Secretary. The City of Palm Springs' allocation of CDBG-CV3 is $584,613. After allocating 20% for Administration in the amount of $116,922, the amount to be allocated for programs is $467,691.
3City Council Staff Report November 12, 2020 -Page 3 of 5 CDBG 2021 Program Amendment Discussion Staff is seeking Council direction for use of the new $467,691 in CDBG-CV3 funds and the re-allocation of $16,764 in CBGG-CV funds. Total amount to be allocated I re-allocated is $484,455. These funds must be used to respond to and mitigate the effects of COVID-19. STAFF ANALYSIS Before the City can use any reallocated CDBG-CV and new CDBG-CV3 funds it will be required to amend the City's 2021 Consolidated Plan and Annual Action Plan. Formal amendments are required when a program: A. Is increased in an amount greater than 100% of the activity allocation if the allocation is $50,000 or more as listed in a published Consolidated Plan; or B. Is increased greater than $50,000 of the activity allocation if the allocation is less than $50,000 as listed in a published Consolidated Plan, or as amended; or C. Is increased or decreased in an activity allocation greater than $300,000; or D. Is added that is not previously described in a published Consolidated Plan, or as amended Adding CDBG-CV3 funds in the amount of $584,613 would increase existing activities in an amount greater than $50,000 and/or create new activities not previously described in a published Consolidated Plan. Council's recommendations will be incorporated into the amendment which will be submitted to HUD for its approval. The CARES Act included "flexibilities" to the requirements for use of CDBG-CV funds to help grantees quickly respond to the coronavirus pandemic. This includes: • Elimination of the 15% cap on Public Service activities for CDBG-CV funds. • Shorter public review period -reduced from 30 days to 5 days for CDBG-CV funds, 2019-2020 CDBG funds, and 2020-2021 CDBG funds. • Grantees may use virtual public hearings instead of in-person public hearings. • Fair Housing services are still required. These flexibilities allowed the City to allocated 80% of CDBG-CV funds on Public Services with the remaining 20% used for program administration. According to HUD, grantees are required to use all CDBG-CV funds for CDBG-eligible activities that are carried out to prevent, prepare for, and respond to coronavirus. CDBG-CV grants cannot be used for any other purpose. Allocation of New CDBG-CV3 Funds Staff is seeking Council direction for use of the new $467,691 in CDBG-CV3 funds. The City Council has previously discussed options on how CDBG-CV funds should be allocated, including the following:
4City Council Staff Report November 12, 2020 -Page 4 of 5 CDBG 2021 Program Amendment Discussion 1. As noted above, the Council voted to allocate $264,161 to non-profit organizations to provide services in response to the coronavirus pandemic. The Public Services include food assistance, financial assistance, expanding shelter capacity, meal delivery, mental health/ isolation virtual counseling, and operational support for COVID-19 testing and triage clinics. The Council may choose to increase the allocations to the organizations providing these services or utilize the additional funds for other types of services as described below. 2. Direct Rent/Mortgage Assistance -To help Low-Moderate Income (LMI) Households with rent and mortgage payments where heads of household have lost their job, been furloughed, or had their hours reduced because of the economic impact of COVID-19. Such payments would be provided as emergency grant payments for rent or mortgage but cannot be made for more than three consecutive months. Payments must also be directly given to the landlord or mortgagor on behalf of an individual or family. It should be noted, United Lift, a collaboration of Riverside County, Inland SoCal United Way and Lift to Rise, has provided $33 million of rental assistance throughout Riverside County. The number of applications for the City of Palm Springs from June through September was 424. However, according to the United Lift website, they have "dispersed all of the rental funding available through the CARES Act. Rental assistance funds from other sources are still available but include expanded eligibility requirements... The rental assistance application remains open, but new applications will be placed on a waiting list with applications reviewed on a rolling basis." 3. Assistance to Small Businesses -CDBG-CV and CDBG-CV3 funds can be used to assist small businesses by providing loans, grants, and technical assistance. Financial assistance typically ranges from $5,000 to $20,000 depending on the number of Full Time Equivalent Employees, and are used for operational needs (such as lease payments, mortgage, payroll, supplies, and services), or facility adaptations and equipment to continue operating while complying with State mandates. A survey conducted by the National Community Development Association, a National Community Development Association comprised of more than 400 local governments across the country that administer federally-supported community development, economic development, and affordable housing programs, polled their members in April 2020 on how they plan to utilize the CDBG-CV funds. • 53% of respondents planned to provide Direct Rent/Mortgage Assistance • 4 7% of respondents planned to provide assistance to Small Businesses. There were a total of 68 CDBG grantees from 32 states that responded to the survey.
5City Council Staff Report November 12, 2020-Page 5 of 5 CDBG 2021 Program Amendment Discussion Rea/location of Available CDBG-CV Funds LGBT Center of the Desert requested funding and was allocated $16,764 of CDBG-CV funds. However, after reviewing the funds limited uses, they subsequently decided not to accept the funds. Therefore, staff is seeking direction from the City Council on how to reallocate $16,764 of CDBG-CV funds. As with the CDBG-CV3 funds, the CDBG-CV funds may be allocated to non-profits to help prevent, prepare for, and respond to coronavirus; used for direct rental assistance; or utilized for direct small business assistance. FISCAL IMPACT: There is no direct fiscal impact to the General Fund. These dollars are the City's allocated federal annual entitlement funds from the U.S. Department of Housing & Urban Development Community Development Block Grant program. SUBMITTED: , Director & Economic Development ATTACHMENTS: 1. CDBG Allocations 2. CDBG-CV Allocations MARCUS FULLER, P.E., M.P.A., P.L.S Assistant City Manager
6ATTACHMENT 1 CDBG ALLOCATIONS 2020-2021 CDBG FUNDS CDBG Public Facilities & Improvements: City of Palm Springs Department of Public Works & Engineering -Demuth Park Public Restrooms City of Palm Springs Department of Public Works & Engineering -Demuth Park Community Center Air Conditioning CDBG Public Services: Fair Housing Council of Riverside -Fair Housing Services $175,552 $130,000 $43,688 Under CDBG guidelines, the City is mandated to provide its residents a fair housing program. The Fair Housing Council will utilize these funds to provide comprehensive services which affirmatively address and promote fair housing (anti-discrimination) rights and landlord/tenant services to the City of Palm Springs. CDBG Rehabilitation: City of Palm Springs Department of Community & Economic Development -Home Repair Program $10,000 This program assists very low-income homeowners with minor routine maintenance, emergency repairs and accessibility modifications at nominal costs, including other related health and safety code work. CDBG Administration: City of Palm Springs Department of Community & Economic Development -Administration $89,81 0 Total $449,050
7ATTACHMENT 2 CDBG-CV ALLOCATION Organization Mizell Senior Center Social distancing / protective barriers, grocery delivery to seniors. Well in the Desert Expand social distancing, food bank services, cooling center, home delivery to seniors, mental health counseling, transportation assistance, and rental/utility assistance. FIND Food Bank Food bank services. Boys & Girls Club Dividers/repairs for social distancing, create virtual club house activities/equipment, and improve building ventilation (windows and cooler). LGBT Center of the Desert Food bank services. Increased demand. Establish virtual counseling. Desert Aids Project Dedicated COVID-19 triage clinic, COVID-19 testing, and respiratory treatments. Habitat For Humanity Rental Assistance. Jewish Family Services of the Desert Financial assistance (rent, utilities, food, medications). Transgender Health and Wellness Center Food boxes, home visits. Hidden Harvest Food bank services. Fiscal Year 21 {CDBG-CV Funds) 55,880 41,910 35,305 22,352 16,764 13,970 8,382 8,382 2,794 2,794
8Coachella Valley Housing Coalition Rental assistance (Palm Springs affordable housing project). Total 211,328 CDBG-CV Administration: City of Palm Springs Department of Community & Economic Development -Administration $52,832 CDBG-CV Total $264,161