HomeMy WebLinkAbout2BCity Council Staff Report
DATE: April 22, 2021 PUBLIC HEARING
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 2021-2022
ANNUAL ACTION PLAN (AAP) AND BUDGET ADOPTION HEARING
AND AUTHORIZATION FOR SUBMISSION TO THE UNITED STATES
DEPARTMENT OF HOUSING & URBAN DEVELOPMENT, FOR THE .
FISCAL YEAR 2021-2022 COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM, 47TH PROGRAM YEAR; AND, AUTHORIZING THE
CITY MANAGER TO EXECUTE ALL NECESSARY AGREEMENTS.
FROM: Justin Clifton, City Manager
BY: Community & Economic Development Department
SUMMARY
This action approves the 2021-2022 Annual Action Plan and Budget. The resolution
(Attachment 1) also authorizes the City Manager to execute all agreements with U.S.
Department of Housing & Urban Development (HUD) as well as the CDBG program's
Subrecipients, including City Departments. The Annual Action Plan is prepared by the
City pursuant to requirements set forth by 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.
This second public hearing is part of the public review and approval process for
submittal to HUD.
RECOMMENDATION:
1) Open the Public Hearing for public testimony;
2) Adopt Resolution No. ___ , "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE 2021-2022
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION PLAN;
APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET FOR
FISCAL YEAR 2021-2022 IN THE AMOUNT OF $540,416; AUTHORIZING THE
SUBMITTAL OF THE PLAN AND BUDGET TO THE UNITED STATES
DEPARTMENT OF HOUSING & URBAN DEVELOPMENT (HUD); AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
APPROVAUAGREEMENT WITH HUD -GRANT # B-21-MC-06-0561 IN THE
AMOUNT OF $425,116 AND TO EXECUTE THE SUBRECIPIENT AGREEMENTS".
ITEM NO. l-, b 1
City Council Staff Report
April 22, 2021 -Page 2 of 8
CDBG 2021 -2022 Annual Action Plan Public Hearing 2
BACKGROUND
On February 11, 2021, the City Council discussed potential uses for the 2021-2022 .
CDBG Funds. At this meeting the City Council was presented with potential Public
Improvement and Capital Improvement, Public Service, and Rehabilitation projects
which meet the City's 2020-2024 Consolidated Plan (ConPlan) goals for non-housing
community development as shown in ATTACHMENT 2.
On February 25, 2021, The City was informed that its allocation would be $425,116.
Staff had also identified $115,300 of unexpended CDBG funds from prior years that
may be re-programmed for use in FY21/22. These funds were previously allocated to
administrative expenses and projects which were not fully utilized by prior sub-
recipients over the past five years. Therefore, the total amount of funds to be allocated
for FY21/22 AAP is $540,416.
On March 11, 2021, the City Council held a public hearing for the 2021-2022 Annual
Action Plan (AAP). The AAP was made available for public review for a period of 30
days (March 15, 2021, to April 15, 2021 ), as required by HUD. No comments were
received.
STAFF ANALYSIS:
Of the total amount of CDBG funds to be allocated for the 2021-2022 Fiscal Year
($540,416), 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 3.
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 Public Services,
at no more than 15% of the entitlement. The remaining funds are to be utilized for Public
Facilities and Capital Improvements, and Housing Rehabilitation. The total funds
recommended for 2021-2022, by eligibility category, are as follows:
Public Facilities and Capital Improvements
Public Services (9% -includes Fair Housing)
Rehabilitation
TOTAL PROGRAMMATIC FUNDS (80%)
ADMINISTRATION (20%)
TOTAL CDBG 2021-2022 FUNDING
$374,333
$ 48,000
$ 10,000
$432,333
$108,083
$540,416
2
City Council Staff Report
April 22, 2021 -Page 3 of 8
CDBG 2021 -2022 Annual Action Plan Public Hearing 2
2021-2022 ANNUAL ACTION PLAN RECOMMENDATIONS
In evaluating the capital projects to be undertaken by the City in furtherance of the
ConPlan Goals, staff is recommending that the City Council allocate the full amount
budgeted for Public Facilities and Improvements ($374,333) for the Demuth Park
Community Center Air Conditioning Project and Demuth Park Restroom Project as
detailed below. In addition, recommendations for Public Services and Rehabilitation
programs are also provided.
Public Facilities & Capital Improvements:
1. City of Palm Springs Public Works & Engineering -Demuth Park Community
Center Air Conditioning Project. Last year this project received an allocation of
CDBG funds in the amount of $130,000. The total cost for this project is
estimated to be $400,000. To fully fund this project, $270,000 more is needed.
2.
2,704 Census Tract; 2, 127 UM 2,704 PS Residents Recommended: $270,000
City of Palm Springs Public Works & Engineering -Demuth Park Restroom
Project. Demuth Park is in need of new restrooms. Last year $175,000 in
CDBG funds was allocated for new restrooms at Demuth Park. The total cost for
new restrooms is estimated to be $400,000. $225,000 is still required to fully
fund this restroom project. This project will provide for the construction of a new
facility to the East of the existing building and accessible from -the adjacent
parking lot. This will bring the new restrooms closer to the majority of park users
and move it further away from the east Mesquite Avenue frontage. An existing
two stall restroom will be demolished. It is recommended the remaining
$104,333 in CDBG funds for Public Facilities and Capital Improvements be
allocated towards the new restrooms at Demuth Park.
2,704 Census Tract; 2,127 UM 2,704 PS Residents
Public Services:
Recommended: $104,333
1. Fair Housing Council of Riverside County -Fair Housing Program: Under CDBG
guidelines the City is required to provide its residents a fair housing program. Staff
recommends working with the Fair Housing Council to provide comprehensive
services which affirmatively address and promote fair housing rights and
landlord/tenant services. These include anti-discrimination investigations,
landlord/tenant mediation services, training and technical assistance, workshops
and seminars, and housing discrimination audits and tests.
2,000 City-wide; 1,800 UM; 2,000 PS Residents
Rehabilitation:
Recommended: $48,000
1. Citv of Palm Springs Community & Economic Development -Home Repair
Program: For the past 35 years, the City has operated a Home Repair Program.
3
City Council Staff Report
April 22, 2021 -Page 4 of 8
CDBG 2021 -2022 Annual Action Plan Public Hearing 2
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). The annual $1,500
grant excludes the first-year disaster preparedness items and any Code
Enforcement abatement.
20 City-wide; 20 UM; 20 PS Households Recommended: $10,000
As the recommended allocation of funds for Public Services is for a mandatory program
(Fair Housing), and funding recommended for Rehabilitation provides critical home
repair services for very low-income homeowners at a relatively low level of funding.
After providing staff with direction, the anticipated next steps for moving forward would
be to submit the Fiscal Year 2021-2022 Annual Action Plan and Budget to HUD for
review and approval.
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 ensuring the City can receive its anticipated $425,116
CDBG entitlement and reprogram $115,300 of unexpended CDBG funds for a total
CDBG budget of in the amount of $540,416.
SUBMITTED: ~~
ta Irector Marcus L. Fuller
· y & Economic Development Assistant City Manager
Justin~~
Ci~y Manager
ATTACHMENTS: 1) Resolution; 2) 2020-2024 Con Plan Goals; and 3) Low/Moderate
Income Census Block Map
4
ATTACHMENT 1
Resolution
5
RESOLUTION NO. ---
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, APPROVING THE 2021-
2022 COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) ANNUAL ACTION PLAN; APPROVING THE
COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET
FOR FISCAL YEAR 2021-2022 IN THE AMOUNT OF
$540,416; AUTHORIZING THE SUBMITTAL OF THE PLAN
AND BUDGET TO THE UNITED STATES DEPARTMENT
OF HOUSING & URBAN DEVELOPMENT (HUD); AND
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
APPROVAUAGREEMENT WITH HUD -GRANT # B-21-
MC-06-0561 IN THE AMOUNT OF $425,116 AND TO
EXECUTE THE SUBRECIPIENT AGREEMENTS.
WHEREAS, as a Community Development Block Grant entitlement community, the City
of Palm Springs is required to prepare and submit a Five Year Consolidated Plan and
Annual Action Plan for the use of the federal funds received; and
WHEREAS, the City of Palm Springs is eligible to receive an entitlement of $425,116 of
Community Development Block Grant funds under the U.S. Department of Housing &
Urban Development regulations; and
WHEREAS, unexpended CDBG funds from prior years in the amount of $115,300 may
be re-programmed for use in Fiscal Year 2021-2022; and
WHEREAS, these funds, totaling $540,416, must be used for eligible activities which
principally benefit low and moderate income persons; and
WHEREAS, the City Council held two public hearings on March 11, 2021, and April 22,
2021, to receive public input on the allocation of these funds;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE
AS FOLLOWS:
SECTION 1. The 2021-2022· Annual Action Plan are hereby approved. The City
Manager or his designee is authorized to submit the Annual Action Plan,
which accurately reflects the 2021-2022 CDBG budget and projects
approved by the City Council to the United States Department of Housing &
Urban Development.
SECTION 2. The total Community Development Block Grants funds available for 2021-
2022, by authorized category of basic eligibility, are approved as follows:
6
Resolution No.
Page 2 of 4
---
2021-2022 CDBG
Public Facilities and Capital Improvements
Public Services (9% -includes Fair Housing)
Rehabilitation
TOTAL PROGRAMMATIC FUNDS (80%)
ADMINISTRATION (20%)
TOTAL CDBG 2021-2022 FUNDING
$374,333
$ 48,000
$ 10,000
$432,333
$108,083
$540,416
SECTION 3. The City Manager is hereby authorized to accept and execute the Funding
Approval/Agreement with HUD -Grant #: B-21-MC-06-0561 in the
amount of $425,116, for the Fiscal Year 2021-2022 CDBG Program, 4ih
Program Year.
SECTION 4. The City Manager is hereby authorized to execute the following
Subrecipient Agreements and all necessary documents, in a form
acceptable to the City Attorney:
2021-2022 CDBG:
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
Fair Housing Council of Riverside -Fair Housing Services
City of Palm Springs Department of Community & Economic
Development -Home Repair Program
$104,333
$270,000
$48,000
$10,000
7
Resolution No. __ _
Page 3 of 4
ADOPTED this_ day of April 2021.
Justin Clifton, City Manager
· ATTEST:
Anthony J. Mejia, MMC, City Clerk
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Resolution No. ---
Page 4 of 4
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS)
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. ___ is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on April_, 2021, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Anthony J. Mejia, MMC, City Clerk
City of Palm Springs, California
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HOUSING GOALS
ATTACHMENT 2
2020-2024 ConPlan 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 RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN, ANCESTRY,
MARIITAL STATUS, AGE, HOUSEHOLD COMPOSITION, INCOME, SIZE,
DISABILITY 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 COLLABERATIONS 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
10
ATTACHMENT 3
Low / Moderate Income Census Block Map
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-Right-of-Way
-City Owned Property within LMI
Low and Moderate Income Areas --Facilit Name
A Sunrise Park/Stadium
B Skate Park
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