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PRESENTATION OF THE 2014/2015 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) AND SOLICITATION OF INPUT ON FUNDING PRIORITIES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME), AND EMERGENCY SOLUTIONS GRANT (ESG) 2016/2017 PROGRAM
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RECOMMENDED ACTION
Recommended Action
Council accept the year-end report and conduct the public hearing.
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SUMMARY
The City of Chula Vista is required to prepare a Consolidated Annual Performance and Evaluation Report (CAPER) for the City’s U.S. Department of Housing and Urban Development (HUD) grant programs, which include Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Solutions Grant (ESG). This report provides a summary of activities undertaken this past fiscal year (July 1, 2014 through June 30, 2015) to meet the goals of the 2010-2015 Consolidated Plan. In addition, a public hearing is being held to solicit public input on funding priorities for the upcoming grant year (2016/2017).
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activities for compliance with the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA). The proposed activities are not considered “Projects” as defined under Section 15378(b)(5) of the State CEQA Guidelines because the proposals consist of a reporting action, is an administrative function, and is not site specific project(s) and will not result in a direct or indirect physical change in the environment. Therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines, these activities are not subject to CEQA. Under NEPA, the activity qualifies for a Certification of Exemption pursuant to Title 24, Part 58.34(a)(2)&(3) of the Code of Federal Regulations and pursuant to the U.S. Department of Housing & Urban Development Environmental Guidelines. Thus, no further environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable.
DISCUSSION
The City of Chula Vista receives, on an annual basis, Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) Program, and Emergency Solutions Grant (ESG) Program funds from the U.S. Department of Housing and Urban Development (HUD) to contribute towards a number of diverse programs and services to enhance the quality of life for Chula Vista’s low to moderate income residents. On an annual basis, the City prepares a Consolidated Annual Performance and Evaluation Report (CAPER) describing the use of HUD funds on housing and community development activities that primarily benefit low and moderate income persons and households. The CAPER also provides a final progress report towards meeting the goals identified in the 2010-2015 Consolidated Plan.
Performance Evaluation (CAPER):
HUD requires that the City report its performance with regard to CDBG, HOME, and ESG grants using the HUD Consolidated Annual Performance and Evaluation Report (CAPER), which was provided to HUD 45 days after the conclusion of the 2014/2015 fiscal year. The CAPER includes specific financial and performance information for the CDBG, HOME, and ESG grants. The CAPER also includes discussion describing how the City carried out its housing and community development strategies, projects, and activities during the fiscal year. A copy of the CAPER is included as Attachment 1.
A review of CAPER shows that the City:
• Expended fund grants in a timely manner;
• Funded only HUD eligible projects;
• Provided detailed accomplishment data for all grant-funded projects; and,
• Maintained its administration and public service expenditures within the mandated spending caps.
Public Hearing-Solicitation on Input for the 2016/2017 Annual Process for HUD Grant Programs:
The City’s HUD approved 2015-2019 Consolidated Plan (ConPlan), effective July 1, 2015, identifies its needs and establishes funding priorities and goals (Attachment 2). The Consolidated Plan guides the City in its development of its annual program. Established priorities and goals are as follows:
• Housing:
o Affordable Rental Housing for low and moderate income households
o Maintenance and Preservation of existing housing stock
o Homeownership Opportunities
• Community Development Priorities:
o Infrastructure Improvements in low and moderate income neighborhoods
o Community Enhancement
o Special Needs and Homeless Priorities including Public Services, ADA Improvements, and Transitional and Homeless Housing and Services
o Economic Development job creation/job training activities
This public hearing represents the first opportunity to solicit public input on these identified low income housing and community development needs and funding priorities for the upcoming year (2016/2017).
While the City has not yet received notification of its allocation for fiscal year 2016/2017, the City estimates a five percent reduction (5%) in the CDBG grant due to the potential budgetary cuts known as “Sequestration.” The City anticipates receiving the following for 2016/2017:
|
HUD Program |
2015/16 Received |
2016/2017 Anticipated |
|
CDBG |
$1,746,692 |
$1,659,357 |
|
HOME |
$598,726 |
Change Unknown |
|
ESG |
$119,795 |
No change anticipated |
Funding applications for the three grant programs (CDBG, HOME, and ESG) will be available to all interested organizations and City departments in January 2016, with applications due in February 2016. Staff will review all applications to determine eligibility and return to Council in March 2016 to present recommended allocations to eligible projects.
CDBG PROGRAM
The CDBG program represents the City’s largest grant entitlement to fund a variety of housing and community development activities to benefit the City’s lower income residents. Funding is generally available for public service activities, capital projects, housing activities, and debt service payment of a Section 108 loan.
Section 108 Loan:
For fiscal year 2016/2017, the City’s Section 108 debt service payment will be $759,585.00. After deducting this required debt service payment from the anticipated CDBG annual entitlement, approximately $899,499 will remain for public services programs, community development, housing projects, and grant administration.
Public Services Category:
HUD regulates the amount of funding which can be utilized on public services activities by placing an expenditure cap of 15% of the entitlement amount (approximately $248,903). Annually, the City receives a large number of funding requests for public services which typically exceed the amount available.
Consistent with the 2015-2019 ConPlan, additional rating criteria (the “tier” system) will be included in the review of the Public Services applications. Given the economic conditions over the last few years, Staff has seen a significant increase in the number of requests and amount of the requests received by both non-profit organizations and City Departments. CDBG funds were pursued to close funding gaps resulting from losses of funding at the Federal and State levels and in community giving. Several non-profit organizations and City Departments experienced complete cuts in state funding and/or experienced decreased levels of donations.
Given the limited financial resources available, the tier system focuses our limited resources on basic and essential daily living needs and on vulnerable populations where the impact of limited resources can be significant.
The funding methodology consists of a three-tier approach, classifying each of the activities in the following three categories for Public Services activities:
• Tier I: Basic/Essential Needs (Homeless Services, Food, Emergency Housing)
• Tier II: Special Needs Clientele who meet HUD’s Definition of Presumed Benefit (Services for Battered Spouses, Abused Children, Severely Disabled Adults, Abused Children)
• Tier III: Other (Transportation Services, Case Management, Preventative Health Care Services, Recreation (non-disabled, non-emergency services)
Historically, there has been sufficient funding for Tier I and Tier II programs. Any remaining Public Services funds were distributed among Tier III programs.
Capital Improvement and Housing Related Activities:
Approximately $318,724 is available for capital improvement and housing projects for 2016/2017. To be considered eligible for funding, a project must first meet a HUD National Objective (located in a low and moderate income census tract), not be regional in nature, and be located in a service area that is primarily residential. Funding recommendations for Capital and Housing Related Activities are then prioritized based on the following criteria:
• Eligible projects that address priorities listed in the ConPlan (Attachment 2); and
• Effectiveness of activity by meeting the following:
o Leveraging of other funding sources;
o Number of clients to be served;
o Identification on the City of Chula Vista’s Critical Needs List (applicable to infrastructure projects, improvements to park and recreational facilities, and purchase of equipment or improvements to fire stations).
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The activities funded through the federal grant programs are directed towards the revitalization of neighborhoods, economic development opportunities, and improved facilities and services. The nature of these activities is consistent with the Goals, Strategies and Initiatives in Goal 5: Connected Community.
Strategy 5.1: Encourage Residents to Engage in Civic Activities
Initiative 5.1.2 Fosters an Environment of Community Involvement
The City has developed a detailed Citizen Participation Plan (CPP) which requires the participation of the community. The CPP requires the City to provide citizens with reasonable and timely access to meetings, information, and records related to the grantee's proposed and actual use of funds. A minimum of two public hearings are held annually to obtain citizen participation at all stages of the Five-Year Consolidated Plan and Annual Action Plan. This includes the identification of priorities, review of proposed activities, and review of program performance.
Strategy 5.2: Provide Opportunities that Enrich the Community’s Quality of Life
Initiative 5.2.1 Provide Services and Programs Responsive to Residents Priorities
The CAPER (Attachment 1) includes the list of accomplishments using CDBG, HOME and ESG funding that provided decent affordable housing opportunities and a suitable living environment with adequate public facilities, infrastructure and services to City residents.
CURRENT YEAR FISCAL IMPACT
There is no current fiscal impact to the General Fund as the program is revenue offset by the grant funds.
ONGOING FISCAL IMPACT
There are no ongoing fiscal impacts as the program is revenue offset by the grant funds.
ATTACHMENTS
Attachment 1: CAPER Narrative
Attachment 2: 2015-2019 Consolidated Plan Funding Priorities & Low Income Area Map
Staff Contacts: Jose Dorado, DSD Housing Division,
Angelica Davis, DSD Housing Division