The URL can be used to link to this page

Home My WebLink About5A CITY COUNCIL STAFF REPORT DATE: FEBRUARY 24, 2022 NEW BUSINESS SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 2022–2023 ANNUAL ACTION PLAN AND BUDGET DISCUSSION FROM: Justin Clifton, City Manager BY: Community & Economic Development Department ______________________________________________________________________ SUMMARY: The CDBG Annual Action Plan (AAP) is prepared by the City every year pursuant to requirements set forth by the Department of Housing and Urban Development (HUD), which mandate that units of government receiving federal housing and community development assistance must prepare an AAP as part of the implementation of the Five Year Consolidated Plan (ConPlan) which serves as the blueprint for community development activity in the City. At this time, Staff is seeking input from the City Council regarding the Annual Action Plan and CDBG Budget for the 2022-2023 fiscal year. RECOMMENDATION: Provide Staff with recommendations for the CDBG Annual Action Plan and Budget for the 2022 – 2023 Fiscal Year. 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-eight 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 units of governments to fund three National Objectives: benefiting Low/Mod persons; preventing or eliminating slums or blight; and, meeting urgent need. HUD provides the five models to identify and select sub-recipients for CDBG funds. These are: Model 1: Formal application or request for application process. Model 2: Simplified or limited application. Model 3 Grantee survey of qualified organizations with direct solicitation. Model 4: Response to unsolicited applications. Item 5A - 1 City Council Staff Report February 24, 2022 – Page 2 CDBG 2022 – 2023 Annual Action Plan Model 5: Review of existing sub-recipients’ performance before renewing their participation. In Fiscal Year 2020, the City Council directed Staff to utilize Model 3. Model 3 allows the City to directly select the sub-recipients, which may include only City Departments for funding of City programs, services, or capital projects. At that time, the City Council also approved the 2020-2024 ConPlan goals listed in ATTACHMENT 1. STAFF ANALYSIS: At this time, it is estimated that the City will receive a CDBG allocation of $430,000 – which is the same amount of CDBG funds received last year. This amount will be updated accordingly once HUD releases the FY22/23 CDBG entitlement allocations. It should be noted that over the last two fiscal years, the City received $848,774 of additional CDBG funding specifically to address the impacts on the community as a result of the Coronavirus (CDBG-CV). The majority of the CDBG-CV funds were approved for a rental assistance program for Palm Springs residents ($510,000); $235,000 was provided to local non-profit organizations; and the balance of $103,000 was allocated for administrative costs. These allocations were only possible because CDBG-CV funds allowed for a waiver from the 15% Public Services limit. This waiver does not apply to CDBG funds and allocations of CDBG funds for Public Services is limited to 15% of the CDBG allocation for Fiscal Year 2023. Of the total amount of CDBG funds to be allocated for Fiscal Year 2023 ($430,000), the Federal statute requires that at least 70% of the expenditures 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. A map showing the City’s Low/Mod areas is provided in ATTACHMENT 2. There are also statutory limitations on the percentage of CDBG funds that may be utilized for administrative purposes, at no more than 20% of the entitlement, and as previously noted Public Services, at no more than 15% of the entitlement. The remaining 65% of the funds are to be utilized for Public Facilities and Capital Improvements, and Housing Rehabilitation. It is estimated the CDBG budget for 2022-2023 by eligibility category is as follows: Public Facilities and Capital Improvements $279,000 Public Services (includes Fair Housing) $ 55,000 Rehabilitation $ 10,000 TOTAL PROGRAMMATIC FUNDS (80%) $344,000 ADMINISTRATION (20%) $ 86,000 TOTAL CDBG 2022–2023 FUNDING $430,000 Item 5A - 2 City Council Staff Report February 24, 2022 – Page 3 CDBG 2022 – 2023 Annual Action Plan It should be noted, the recommended allocation of funds for Public Services is for a mandatory program of providing Fair Housing services. In addition, it is also recommended the City continue allocating CDBG funds ($10,000) to the Home Repair program. 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. First-year participants receive standard disaster preparedness items (i.e., hot water heater strapping). Information on the Home Repair program is provided in ATTACHMENT 3. In regard to the remaining Public Facilities and Capital Improvements CDBG funds in the amount of $279,000, Staff is recommending the entire amount be allocated to City public facility and capital improvement projects. As noted above, the City Council selected Model 3 to identify and select sub-recipients for CDBG funding which may include only City Departments for funding of City programs, services, or capital projects. Recommended projects include the following: 1. Shade Structures for Playground Equipment. CDBG may fund shade structures at Demuth Park and Baristo Park within the Low/Mod areas of the City. It is anticipated that three large shade structures would utilize the entire amount of allocated for public facilities and capital improvements ($279,000); or 2. Navigation Center. The Navigation Center at 3589 McCarthy will serve Low/Mod income clientele. The City and County have applied for Homekey 2 funds for the buildout of 80 modular units and two of the three buildings located at the Navigation Center. The third and largest building (25,800 square feet) is not included in the funding application and will require additional funds for future renovations. It is anticipated that such improvements would utilize the entire amount of CDBG funds for Public Facilities and Capital Improvements ($279,000). For reference, Public Facilities and Capital Improvements funded in the recent past include: • City of Palm Springs Public Works & Engineering – Demuth Park Community Center Air Conditioning Project which was allocated a total of $400,000. • City of Palm Springs Public Works & Engineering – Demuth Park Restroom Project which was allocated a total of $307,977. Staff will incorporate City Council’s recommendations for use of the CDBG funds into a draft CDBG 2022-2023 Annual Action Plan and Budget and will seek approval of the CDBG 2022-2023 Annual Action Plan and Budget as follows: • March 10 - Public Hearing #1 to solicit public input on the Draft Fiscal Year 2022- 2023 Annual Action Plan and Budget. Item 5A - 3 City Council Staff Report February 24, 2022 – Page 4 CDBG 2022 – 2023 Annual Action Plan • March 14 to April 13 – 30-day public review of Fiscal Year 2022-2023 Annual Action Plan and Budget. • April 21 - Public Hearing #2 Council approval of Fiscal Year 2022-2023 Annual Action Plan and Budget. • May 2 - Submittal of Fiscal Year 2022-2023 Annual Action Plan and Budget to HUD for review and approval. • July 1 - CDBG funds available for use (reimbursement basis). ENVIRONMENTAL IMPACT: The recommended action does not result in a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a Project means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: This action is a pre-requisite to ensure the City can receive approximately $430,000 in CDBG entitlement funding. REVIEWED BY: Department Director: Jay Virata Deputy City Manager: Flinn Fagg City Manager: Justin Clifton ATTACHMENTS: 1. 2020-2024 ConPlan Goals. 2. Low/Moderate Income Census Block Map. 3. Home Repair Program Promotional Materials. Item 5A - 4 Attachment 1 CONPLAN GOALS HOUSING GOALS GOAL 1: REMOVE CONSTRAINTS THAT HINDER THE PRODUCTION AND CONSERVATION OF AFFORDABLE HOUSING UNITS AND ASSIST IN THE DEVELOPMENT OF HOUSING OPPORTUNITIES AND ACCESSIBILITY FOR ALL ECONOMIC LEVELS IN THE CITY. GOAL 2: PROVIDE SUPPORT SERVICES FOR THE CITY'S RESIDENTS TO ENSURE THAT ALL HOUSING PROGRAMS ARE AVAILABLE WITHOUT DISCRIMINATION ON THE BASIS OF ACTUAL OR PERCEIVED RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN (I.E., PLACE OF ORIGIN, IMMIGRATION STATUS, CULTURAL OR LINGUISTIC CHARACTERISTICS, OR ETHNICITY), SEXUAL ORIENTATION, GENDER IDENTITY, GENDER EXPRESSION, ANCESTRY, DOMESTIC PARTNER STATUS, MARIITAL STATUS, AGE, HOUSEHOLD COMPOSITION, INCOME, SIZE, PHYSICL OR MENTAL DISABILITY, MEDICAL CONDITION, OR ANY OTHER ARBITRARY FACTOR. HOMELESS GOALS GOAL 1: SUPPORT OR PROVIDE FUNDING FOR PROGRAMS THAT OFFER SERVICES AND/OR SUPPORTIVE HOUSING TO ASSIST HOMELESS INDIVIDUALS AND/OR FAMILIES NON-HOUSING GOALS GOAL 1: ESTABLISH NEW AND/OR EXPANDED COLLABORATIONS WITH LOCAL SERVICE PROVIDERS ON PROJECTS AND PROGRAMS THAT REDUCE THE EFFECTS OF POVERTY AND SERVES SENIORS, AT-RISK YOUTH, SEVERELY DISABLED ADULTS, AND SPECIAL NEEDS POPULATIONS NON-HOUSING COMMUNITY DEVELOPMENT GOALS GOAL 1: PROVIDE PUBLIC FACILITY IMPROVEMENTS THROUGH DESIGN, ENERGY-EFFICIENCY, REHABILITATION AND NEW CONSTRUCTION ECONOMIC DEVELOPMENT GOAL 1: PROMOTE, MAINTAIN AND/OR EXPAND THE CITY’S ECONOMIC BASE THROUGH ECONOMIC AND EMPLOYMENT OPPORTUNITIES TO EXISTING LOCAL BUSINESSES AND PROSPECTIVE BUSINESSES Item 5A - 5 Attachment 2 Low / Moderate Income Census Block Map Item 5A - 6 Attachment 3 Home Repair Program Promotional Materials Item 5A - 7 060659414003 060650446023 060659412002 060659414002 060650445221 060650447021 060659408001 060650446062 060650446021 060650446042 060650447011 060650447012 060650448041060650448061 060659410001 060659410002 060650446052 060650445211 Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), (c) OpenStreetMap contributors, and the GIS User Community City of Palm SpringsLow and Moderate Income Areas with City Owned Overlays Legend Right-of-Way City Owned Property within LMI Low and Moderate Income Areas Census block groups where over 51% of population is LMI. Facility NameA Sunrise Park/StadiumBSkate ParkC PS Senior Affordable ApartmentsD Police Station ComplexEVisitors CenterFBaristo ParkGFire Station #4H Waste Water Treatment PlantI Demuth Park Community Center AB CD E F G I H Item 5A - 8 I l-'oa41e,-, SAN GORGON/0 PASS '?a,-<,.\ BANNING PASS ,0 , , ~ < ,.,,,. Folly Puk IOBl5tl, ' ?-"/~ S..nlil ~-Sen J .,.,. -uni:. .. , Na111na! t,l<>1•un11n1 , ., '.h 1 C ¥ d ii ~ i • White Water I . I .• I Sen JOClfltO Peak . l 1111 10331 ft Uar,nn .Un11r1,.,,,, Sad( June Pe,n ea Fl II } •• .\1~s10n Creu !fd j! \ , ./ 243511 - WCS!slde Dr Sunns" Or ro"View Dr •• ~--- ' - ol\l-'1ure 01 """ • " C e i G;-:irllt Chino Creeir • $ C " C :-•. Pierson Bl vd 1 • . I ., ~ & ~~ ; ;f :: ' .. ~ f 0 !,.I • • ~ ,, C ' "' C • , •. Smokll Tree Rd ••• Bane l Cal;ll.6 Rd D11bn Rd Chino Canyo11 Ta(;hevsh Ca11yon • "" ~--!----------~ Tithgu,tz Peek i > South Ridge ,, i • 7643 fl. South Peek ,• ' ' ' .. ... • - Murrey Canyon ,, "' . '' t' Sen• R::uB Sam.J-,,;mti, ~tiunuona Natc..at Monu""'rt ,~ •• "'• . "' ¾, D ' ~ C • 0 < ' • • 0 " z f404tl • ,, ,... 1 11h Ave scenie Or ' • ' ~ !i 1411!A~ 161h Ave W Slevens Rd ' > • C ~ , > z ,. ,. O"Oonnel Goo Club .. 6 C ~ 8 C ' • z Z z • ,i' l.liHDn (J:p Ulket 'i,Caumry ;;".i Club • ' ._ ~ l,"5son Lakes Blvd ~ 13th Ave • ~ 0 "" o,11on Rd Thumb Or ' • 0 t: Francis Or • § e 0 f • • • " f z ••• Z l·l;udy 2 • ~ s C • • J • ""rlt E T.imansk Rd E Gronvl.:i V.ilmonle E AleJO Rd E Am.:iao Rd 'l:-""' ' ' J • !ndOln 0 ' 1 i z 00 C.1n)'QRI Goll Re110rt Not1h 0 ~ 0 e • Agua C111 .. n1o E 8:lger1 r,1 PALM CANYON ,. ' e 0 • ' ~ ~ 0 • " 0 e • ~ ~ • " 0 ,,. • ~ • 5 • .... ~ IJJ Jr , m 0 ~ ,: ·~ 0 1 ~ ,. ~ \ ,;:."' \, v' -. , •------------~ 0 ~ 81h St 8 71h St Pierson Blvd 6 th .St 5 1hSI De sert Hot Springs 4th St 1,;tSt Acoma A,~ Buena VIS.I.I Ave Ca t1uilb Ave Desert Vtew Ave Ironwood Dr 15th Ave ~ • ~ ~ ! ' • f 0 ' ~--- ~ Hacie n:la Ave Cam1ro Campanero j ~ Camino Campeo,1111J j ~ • Otllon Rd 20111 Ave 0 E ~ 0 g !~ o, o> ~ ' < t C.-imn:, ld1hl.l • < 0 ~~ •E •'~ •• • 0 • 0 • • • , • I 18th Ave Duer1 Dunea GolfCOUrM , /' , , . " ..... ' ,,. ... • co..,uy > C•o ' ,a § ~ Sand• RV and Golf ~~- Pilon Rd cat Claw Rd Sl=Vl=N PAL 201h A,e WIiiow H ... Flot Top Mo1111f11,11 ~hoq'"III ,f: CouraryClub.:t) Fa.,.:h11:h Bel A11G-n1 Tcmmr '="" B11IA11 GtHn, E sonorn Rd • 0 " > • ' ' e < ~ • • Wa"tlot'O,rf) Con,1011 Kori< Oougl.J.i. .. , Vsst.J Chno Club .. " •.. •• •· '• •• t Oeser! La~es Dr Mur,ay HIii Rock Conyon Vemre Rd Ol.lJO Rd Pllmeta Rd O.•" Pr1nc11H Coumry Club "' f ~ c,,..,,..,,, Goll Rlsort ""' f&t,,:iu1zC-k Gol!Re110rt ? • ~, ~ '\-ess Dr ., ii t e ~ r M::Ca ll um \'i.Jy f ~ > • • • 0 • 0 • 0 • I ' 8.lrasto Rd J3 City of Palm Springs Community Development Block Grant Home Repair Program What is the Community Development Block Grant (CDBG) Program? In 1974, the Federal Government created the CDBG program that replaced a variety of federal urban renewal, housing and neighborhood development programs. CDBG was the first federal ‘block grant’ program. Its purpose is to provide eligible units of governments with funds to help meet the needs of low to moderate (Low to Mod) income areas and persons. The City of Palm Springs receives an annual CDBG entitlement allocation established by a formula from the U.S. Department of Housing and Urban Development – HUD, for local use, as an entitlement city based on population. Which City Department oversees the CDBG program? The City’s Community & Economic Development Department administers the CDBG program along with a variety of redevelopment and housing activities within the City’s jurisdictional boundary. What type of housing maintenance assistance is available? Through the City's CDBG Program, very low income homeowners with real property improvement needs are provided annual financial assistance for minor routine home maintenance, emergency repairs, accessibility modifications and code violations of health and safety concerns to the livable areas of the residence. Disaster preparedness items are addressed in applicant’s first year such as smoke detectors, natural gas shut-off valves, and hot water heater strapping. Applicants must be the primary owner-occupant, meet household-income guidelines, and in good financial standing with the City (delinquency of property taxes, fees, fines, liens, etc.). What items of repairs may be addressed? • Minor plumbing repairs. • Routine heating/cooling and evaporative service calls. • Accessibility aids. • City code violations and emergency repairs as determined by the City. What items can NOT be addressed? • Cosmetic repairs (e.g. irrigation, landscaping, painting, yard cleaning, etc.) • Property placed for sale. • Premature useful-life replacement. • Non built-in removable appliance. • Questionable repairs (e.g. intentional destruction, vandalism, sanitary neglect, premature useful-life replacement, and existing condition prior to purchase etc.). • Frequency of prior similar request. Item 5A - 9 How do I know if I am eligible? The program is designed to facilitate the needs of very low income households who meet the following eligibility criteria: • The applicant MUST be the primary owner-occupant living in Palm Springs as one's primary residence. • The applicant CANNOT have liquid assets exceeding $9,000, or have transferred assets of $5,000 or more to any other person in the preceeding two years, except in repayment of a legitimate loan. • The total income of the applicant's household cannot exceed the income limits: Family Size No More Than 1 $27,650 2 $31,600 3 $35,550 4 $39,500 5 $42,700 6 $45,850 7 $49,000 8 $52,150 The applicant must be current on property taxes and have no outstanding debt to the City. Acceptance of new applicants and continued services are limited to funds available, as well as keeping scheduled appointments. For more information or an application about maintenance assistance, contact the Community & Economic Development Department as follows: The City of Palm Springs Community & Economic Development Department COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 3200 E. Tahquitz Canyon Way Post Office Box 2743 Palm Springs, CA 92263-2743 For English Telephone: 760 323-8264 For Spanish Telephone: 760-323-8264 For TDD: 760-864-9527 FAX: 760 322-8325 The City of Palm Springs does not discriminate on the basis of any reason that is not related to a bona -fide qualification in admission or access to, or treatment or employment in, its federally assisted programs and activities. It is the intention of the City to comply with the American with Disabilities Act (ADA) in all respects. Item 5A - 10 Community Development Block Grant City of Palm Springs Home Repair Program City of Palm Springs Community & Economic Development Department Post Office Box 2743 Palm Springs, CA 92263-2743 Palm Springs Home Repair Program The City of Palm Springs Community & Economic Development Department CDBG Grant Program 3200 E. Tahquitz Canyon Way Post Office Box 2743 Palm Springs, CA 92263-2743 www.palmspringsca.gov English: 760-323-8264 Spanish: 760-323-8264 FAX: 760-322-8325 TDD: 760-864-9527 Equal Housing Opportunity Item 5A - 11 • for minor routine home maintenance, emergency repairs, accessibility modifications and code violations of health and safety concerns to the livable areas of the residence. Disaster preparedness items are addressed in applicant’s first year such as smoke detectors, natural gas shut-off valves, and hot water heater strapping. Applicants must be the primary owner-occupant, meet household-income guidelines, and in good financial standing with the City (delinquency of property taxes, fees, fines, liens, etc.). What items of repairs may be addressed? • Minor plumbing and electrical repairs. • Routine heating/cooling and evaporative service calls. • Accessibility aids. • City code violations and emergency repairs as determined by the City. What items are NOT addressed? • Cosmetic repairs (e.g. irrigation, landscaping, painting, yard cleaning, etc.) • Premature useful-life replacement. • Non built-in removable appliance. • Questionable repairs (e.g. intentional destruction, vandalism, sanitary neglect, premature useful-life replacement, existing condition prior to purchase, etc.). • Property placed for-sale. • Frequency of prior similar request. What is the Community Development Block Grant (CDBG) Program? In 1974, the Federal Government created the CDBG program that replaced a variety of federal urban renewal, housing and neighborhood development programs. CDBG was the first federal ‘block grant’ program. Its purpose is to provide eligible units of governments with funds to help meet the needs of low to moderate (Low to Mod) income areas and persons. The City of Palm Springs receives an annual CDBG entitlement allocation established by a formula from the U.S. Department of Housing and Urban Development – HUD, for local use, as an entitlement city based on population. Which City Department oversees the CDBG program? The City’s Community & Economic Development Department administers the CDBG program along with a variety of redevelopment and housing activities within the City’s jurisdictional boundary. What type of housing maintenance assistance is available? Through the City's CDBG Program, very low income homeowners with real property improvement needs are provided annual financial assistance Home Repair Program How do I know if I am eligible? The program is designed to facilitate the needs of very low income house- holds who meet the following eligibility criteria: The applicant MUST be the primary owner-occupant living in Palm Springs as one’s primary residence. • The applicant CANNOT have liquid assets exceeding $9,000, or have transferred assets of $5,000 or more to any other person in the preceeding two years, except in repayment of a legitimate loan. • The total income of the applicant’s household cannot exceed the income limits: Family Size No More Than 1 $27,650 2 $31,600 3 $35,550 4 $39,500 • The applicant must be current on property taxes and have no outstanding debt to the City. Acceptance of new applicants and continued services are limited to funds available as well as keeping scheduled repair appointments. The City of Palm Springs does not discriminate on the basis of any reason that is not related to a bona-fide qualification in admission or access to, or treatment or employment in, its federally assisted programs and activities. Equal Housing Opportunity Rev. 07/2021 Item 5A - 12