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HomeMy WebLinkAbout2022-01-18; City Council; ; Fiscal Year 2022-23 Funding Plan and Authorization to Distribute the Notice of Funding Availability for the Community Development Block Grant ProgramMeeting Date: Jan. 18, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Nancy Melander, Program Manager nancy.melander@carlsbadca.gov, 760-434-2812 Subject: Fiscal Year 2022-23 Funding Plan and Authorization to Distribute the Notice of Funding Availability for the Community Development Block Grant Program District: All Recommended Action Hold a public hearing and adopt a resolution to approve the Fiscal Year 2022-23 Funding Plan and authorize the distribution of the FY 2022-23 Notice of Funding Availability for the Community Development Block Grant Program. Executive Summary The U. S. Department of Housing and Urban Development requires local jurisdictions to prepare a five-year consolidated plan to receive Community Development Block Grant funds. The plan is carried out each year through the annual action plan, which provides a summary of specific actions, activities and resources that will be used during the year to address community development needs and priorities identified in the five-year plan. Federal regulations require an entitlement agency to hold a minimum of two public hearings per year to allow for public participation in the grant funding process. Discussion The primary objective of the Community Development Block Grant program is to assist people with low incomes. Each proposed project must meet at least one of the national objectives for the program and at least one of the local housing and community development objectives. The City Council approved these Consolidated Plan priorities on Jan. 14, 2020: Priority 1: Increase and preserve affordable housing opportunities for low- and moderate-income households Priority 2: Prevent and reduce homelessness Priority 3: Strengthen support services for residents with special needs Priority 4: Improve and provide facilities to serve people with low incomes Priority 5: Provide fair housing services to residents Jan. 18, 2022 Item #3 Page 1 of 18 Priority 6: Plan and administer the Community Development Block Grant program The national and local objectives for the program are outlined in the FY 2022-23 Funding Plan (Attachment A to Exhibit 1). The FY 2022-23 Funding Plan represents the third year of the FY 2020-25 Consolidated Plan. It is the first step in the development of the annual action plan, which provides an estimated amount of funds available for the next program year. The notice of funding availability is the start of the application cycle and the process through which a portion of the city's Community Development Block Grant funds are distributed. The estimated budget of the FY 2022-23 Funding Plan is $527,154, and it is based on the city's prior year entitlement. Should the final allocation be 20% higher or lower than anticipated, staff will return to the Community Development Block Grant Advisory Committee and/or the City Council to revise the funding proposals to receive higher or lower grant amounts, in accordance with HUD guidelines. The budget outlined in the funding plan, and shown below, includes the anticipated entitlement of $527,154, and the maximum percentage of 15% of the annual grant for dedicated funding for public services and 20% for administrative costs, which are HUD- regulated caps and cannot be adjusted upward. Applications for grant funds will be made available on the city's website on Jan. 19, 2022 and are to be submitted for review by Feb. 21, 2022. City staff reviews each application for eligibility and completeness. Funding recommendations made by the Advisory Committee will be presented by staff to the City Council at a public hearing tentatively scheduled for May 2022. Options Staff provides the following options for the City Council’s consideration: 1. Approve the funding plan and notice of funding availability as presented. Pros • Allows for the timely solicitation of proposals and review by the Community Development Block Grant Advisory Committee. Cons • None identified Summary of estimated funds available for FY 2022-23 Activity percent of annual grant Proposed allocation Administration and fair housing 20% $105,430 Public services 15% $79,073 Facility improvement and affordable housing uncapped $342,651 Total available funds $527,154 Jan. 18, 2022 Item #3 Page 2 of 18 2. Revise the funding plan. If desired, the City Council may modify the FY 2020-25 Consolidated Plan priorities and/or include a theme to focus grant funding toward activities that meet a particular priority. Pros • Provides City Council an opportunity to provide further direction Cons • None identified 3. Do not approve the Funding Plan and notice of funding availability. Pros • None identified Cons • The city will not be eligible to receive Community Development Block Grant funding for FY 2022-23. Approval of the Funding Plan and notice of funding availability plan is required by the city’s Citizen Participation Plan. • Creates a delay or disruption of services to residents due to lack of funding for programs provided by subrecipients. Fiscal Analysis The Community Development Block Grant program is a fully funded federal program and there is no fiscal impact on the city’s General Fund. Next Steps Beginning Jan. 19, 2022, organizations will be able to access the FY 2022-23 notice of funding availability and application on the city’s website. The deadline for all applications is Feb. 21, 2022. The Community Development Block Grant Advisory Committee will review applications and convene to develop funding recommendations. Its recommendations will be presented by staff to the City Council for a public hearing and approval in May 2021. Environmental Evaluation This action does not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code section 21065. It has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and therefore does not require environmental review. Public Notification and Outreach In accordance with Community Development Block Grant guidelines, this item requires a 10- day public notice period. Staff published the notice of public hearing on Friday, Jan. 7, 2022, in The San Diego Union-Tribune and on the city’s website. Past and current recipients of Community Development Block Grant funds and city departments were directly notified of the proposed FY 2022-23 Funding Plan and the FY 2022- 23 Notice of Funding Availability. Public comments from the public hearing will be addressed through written response and included in the final FY 2022-23 Action Plan as part of the citizen participation section of the plan. Jan. 18, 2022 Item #3 Page 3 of 18 Exhibits 1. City Council resolution Jan. 18, 2022 Item #3 Page 4 of 18 Jan. 18, 2022 Item #3 Page 5 of 18 RESOLUTION NO. 2022-022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE FISCAL YEAR 2022-23 FUNDING PLAN AND AUTHORIZING THE DISTRIBUTION OF THE FISCAL YEAR 2022-23 NOTICE OF FUNDING AVAILABILITY FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM EXHl31T 1 WHEREAS, the City Council of the City of Carlsbad, California held a noticed public hearing to obtain comments on the FY 2022-23 Funding Plan and authorize the distribution of the FY 2022-23 Notice of Funding Availability; and, WHEREAS, the City of Carlsbad is anticipating a new allocation of CDBG funds from the United States Department of Housing and Urban Development (HUD) for FY 2022-23; and WHEREAS, the City Council has, following notice duly given, taken testimony of all persons des ring to be heard on the matter during a public hearing at a meeting on Jan. 18, 2022. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as foll~)ws: 1. That the above recitations are true and correct. 2. That the City Council approves the FY 2022-23 CDBG Funding Plan (Attachment A). 3. That the city manager, or his designee, is authorized to distribute the Notice of Funding Availability (Attachment B) for the City of Carlsbad FY 2022-23 CDBG program and accept applications for funding, and process them for review by the CDBG Citizen Advisory Committee. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carl:.bad on the 18th day of January 2022, by the following vote, to wit: AYES: Hall, Blackburn, Bhat-Patel, Acosta, Norby. NAYS: None. ABSENT: None. MATT HALL, Mayor lerk Services Mancger ATTACHMENT A CITY OF CARLSBAD COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING PLAN FY 2022-23 Prepared December 2021 Housing Services Division 1200 Carlsbad Village Drive Carlsbad, CA 92008 Jan. 18, 2022 Item #3 Page 6 of 18 2 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM STATEMENT OF COMMUNITY DEVELOPMENT OBJECTIVES AND HUD NATIONAL OBJECTIVES Community Development Objectives The City of Carlsbad Community Development Block Grant (CDBG) funds will be allocated to organizations, agencies, City Departments, or persons to implement programs or develop/improve public facilities which meet the following community development objectives: 1. INCREASE AND PRESERVE AFFORDABLE HOUSING OPPORTUNITIES FOR LOW-AND- MODERATE INCOME HOUSEHOLDS • Provide direct benefit to lower income persons through the provision or retention of affordable housing units in Carlsbad; • Provide direct assistance to lower income households to prevent or eliminate residential Building or Municipal Code violations and/or improve the quality of housing units in Carlsbad through residential (rental and/or owner occupied) rehabilitation programs. 2. PREVENT AND REDUCE HOMELESSNESS • Provide shelter or services to homeless or near homeless persons/families which results in an improved situation through employment, permanent or transitional housing, treatment of mental, or substance abuse problems, etc. 3. STRENGTHEN SUPPORT SERVICES FOR LOWER INCOME RESIDENTS AND RESIDENTS WITH SPECIAL NEEDS • Provide assistance to non-profit public service providers who meet the basic needs of lower income residents and residents with special needs. Basic needs are defined as those which provide food, shelter, clothing and, in some cases, health care; • Provide assistance to organizations administering programs that directly benefit lower income children living in Carlsbad. The programs must provide one or more of the following activities: daycare, after-school care, cultural enrichment, recreation, health care/immunization or self-improvement. The City may also give priority to single-parent assistance programs such as counseling services; and • Provide assistance to organizations administering programs that directly benefit low income adults living in Carlsbad. The programs must provide one or more of the Jan. 18, 2022 Item #3 Page 7 of 18 3 following activities for adults: employment services, job training, and educational programs. 4. CITY PROJECTS SERVING LOWER INCOME HOUSEHOLDS: • Provide assistance to city projects or facility improvements by public service providers which are intended to benefit lower income households. Such projects must be able to demonstrate that they will serve areas or residents of the City of Carlsbad that meet HUD requirements regarding household incomes for that area. 5. PROVIDE FAIR HOUSING SERVICES TO RESIDENTS • Provide assistance to organizations administering a fair housing program that directly benefits low income residents living in Carlsbad. The program must include conducting workshops, distributing literature on fair housing, monitoring related legislation, responding to inquiries related to fair housing from the public and processing inquiries, providing conflict resolution counseling on the telephone or in-person, and resolving discrimination complaints received from Carlsbad residents. 6. PLAN AND ADMINISTER THE CDBG PROGRAM • Provide planning and administration of the CDBG program which includes, but is not limited to, financial management, compliance, program reporting, contract management, and data input. HUD National Objectives To be eligible for funding, every CDBG-funded activity must qualify as meeting one of the three national objectives of the program. This requires that each activity, except those carried out under the basic eligibility categories of Program Administration and Planning, meet specific tests for either: • Benefiting low- and moderate-income persons, • Preventing or eliminating slums or blight, or • Meeting other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community and other financial resources are not available to meet such needs. An activity that fails to meet one or more of the applicable tests for meeting a HUD national objective is in noncompliance with CDBG rules. Jan. 18, 2022 Item #3 Page 8 of 18 4 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUMMARY OF ESTIMATED FUNDS AVAILABLE ______________________________________________________________________________ The estimated budget of the FY 2022-23 Funding Plan is $527,154 and is based on the city's prior year entitlement. Should the final allocation be 20 percent higher or lower than anticipated, staff will return to the CDBG Advisory Committee and/or City Council to revise the funding proposals, in accordance with HUD guidelines. The budget outlined in the Funding Plan, and shown below, includes the anticipated entitlement ($527,154), and the maximum percentage of dedicated funding for Public Services (15%) and Administrative Costs (20%) which are HUD regulated formulas and cannot be adjusted. Source of Funds: CDBG Entitlement Grant Amount ($): $527,154 (Remainder of page intentionally left blank) Summary of Estimated Funds Available for FY 2022-23 Activity Proposed Allocation Administration & Fair Housing (20% annual grant) $105,430 Public Services (15% annual grant) $79,073 Facility Improvement and Affordable Housing (Uncapped) $342,651 Total Available Funds $527,154 Jan. 18, 2022 Item #3 Page 9 of 18 ATTACHMENT B COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM NOTICE OF FUNDING AVAILABILITY (NOFA) The City of Carlsbad is announcing the start of the application cycle for the FY 2022-23 Community Development Block Grant Program. The CDBG program is a federally funded program and is administered by the city to provide decent housing, a suitable living environment, and the expansion of economic opportunities principally for lower income persons and households. The city anticipates receiving $527,154 in CDBG funds from the U.S. Department of Housing and Urban Development (HUD) for the 2022-2023 program year. To view the full Notice of Funding Availability for the CDBG programs, please visit: https://www.carlsbadca.gov/services/depts/ns/grants/cdbg.asp. The completed application package, including appropriate attachments, must be submitted prior to 5 P.M. on Monday, February 21, 2022. Applications may be submitted electronically to nancy.melander@calsbadca.gov. Paper copies may be mailed or delivered to the City of Carlsbad, Housing Services, Attn: Nancy Melander, at 1200 Carlsbad Village Drive, Carlsbad, CA 92008. Potential applicants who have questions regarding the application should contact Nancy Melander by email at nancy.melander@carlsbadca.gov or by calling 760-342-2812. The proposed timeline for the grant review process is as follows: Process and Timeline for Allocation of Funding Jan. 19, 2022 Issue NOFA Feb. 21, 2022 Applications Due Mid- March 2022 Application review and recommendation by the CDBG Advisory Committee 15-day public review/comment Early- May, 2022 City Council approval of allocations and FY2022-23 Action Plan Jan. 18, 2022 Item #3 Page 10 of 18 2 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FY 2022-23 FUNDING PROPOSAL APPLICATION The following information must be completed by each qualified nonprofit organization interested in being considered for CDBG funding. Please type or print clearly. Attach additional sheets or information as necessary. All information requested must be provided or the application will be considered incomplete and will not be further evaluated for funding consideration. The application must not exceed a total of twenty (20) pages, please reference the Checklist of Required Documents. (Attachments D and E may also be required depending on the proposed project, but will not count towards the 20 page limit.) The completed application package, including appropriate attachments, must be submitted prior to 5 P.M. on Monday, February 21, 2022. Applications may be submitted electronically to nancy.melander@calsbadca.gov. Paper copies may be mailed or delivered to the City of Carlsbad, Housing Services, Attn: Nancy Melander, at 1200 Carlsbad Village Drive, Carlsbad, CA 92008. Potential applicants who have questions regarding CDBG funding should contact Nancy Melander by email at nancy.melander@carlsbadca.gov. THEME: N/A FUNDING APPLICANT Name of Agency: Address: Federal DUNS Number: PROPOSED PROGRAM/PROJECT Title of Program/Project: Location of Program/Project: Person completing application: ______________Telephone No.: ___________email:________ Financial Contact:__________________________Telephone No.: _________________email:________ Program Manager Contact:__________________Telephone No.: _________________email:________ Executive Director Contact:__________________Telephone No.:__________________email:________ Requested Funding Amount: $ Brief Description of Program/Project (Describe the work to be performed, including the activities to be undertaken or the services to be provided and the goals and objectives of the program/project): Jan. 18, 2022 Item #3 Page 11 of 18 3 I. ORGANIZATIONAL ABILITY/CAPACITY A. This agency is:  Nonprofit  For-profit  Local public agency  State public agency  Other (Please specify.) B. What is the purpose/mission of the agency? C. How long has this agency been in operation? Please include the date of incorporation? D. How long has this agency been providing the proposed program/project? E. Please submit an organizational chart for the agency as Attachment B. F. Please describe the agency's existing staff positions directly responsible for the proposed program/project and their qualifications and experience in implementing such a program/project. (Resumes may also be submitted as an optional Attachment C but not in lieu of a complete response.) G. Please indicate your agency's level of experience with the CDBG program. CDBG program:  No or little experience (up to 1 year of using CDBG funds)  Some experience (2 to 3 years of using CDBG funds)  Moderate experience (4 to 5 years of using CDBG funds)  Considerable experience (more than 5 years of using CDBG funds) H. If you have received federal funds, including CDBG funds, in previous years, have Jan. 18, 2022 Item #3 Page 12 of 18 4 program violation findings ever been made against your agency/organization?  No  Yes If yes, please explain nature of finding(s) and how finding(s) has been addressed by your organization. I. Describe the steps that have been completed or must be completed to initiate the project. These may include community support, staffing, securing an appropriate location, marketing, and networking. Describe the program’s timeline with dates and times, including the earliest possible start dates, end dates, and milestones as applicable. II. FINANCIAL CAPACITY/STABILITY A. Please complete Page 8 itemizing revenues and expenses (sources and amounts) for the proposed program or project in which CDBG funds would be used. Indicate how the requested CDBG funds would relate to the overall proposed budget. B. Did you receive any of the following sources of funding from the City of Carlsbad within the last two fiscal years (2020-2021 and 2021-2022) for the proposed program/project? Sources of Funding No Yes CDBG Community Activities (or other General Fund monies)     If yes, please indicate amount and status of previously awarded funds (fully expended, funds remaining, program/project discontinued, etc.). Amount Received Status CDBG funds Community Activities/Other C. Did you receive any federal funds, including CDBG funding from other cities?  No  Yes (Please list funds below) Program Source Amount Received $ $ Jan. 18, 2022 Item #3 Page 13 of 18 5 $ III. BENEFITS & BENEFICIARIES A. How accessible or convenient is the proposed program/project to Carlsbad residents? (Please be specific such as direct services to client’s home, transportation provided to and from facility, or relation to public transportation.) B. What is the approximate percentage of your clients that have annual family incomes in each of the following ranges: (Percentages should add to 100%) % of clients are at 30 percent or below of the area median income _ % of clients are between 31 and 50 percent of the area median income % of clients are between 51 and 80 percent of the area median income % of clients are above 80 percent of the area median income C. Please describe how low-and-moderate income persons will benefit from the proposed program/project. Include the need or problem to be addressed in relation to Consolidated Plan housing and community development priorities, as well as the population to be served or the area to be benefited. (Reference Consolidated Plan Priorities) D. Please indicate the number of clients benefiting from the proposed activity and the percentage that are Carlsbad residents. Persons of which % are Carlsbad residents E. Does your agency focus its activities on populations with special needs?  No  Yes (Please specify) Please specify which special needs populations. (homeless individuals/families, persons with disabilities, persons with substance abuse problems, veterans, farmworkers and day laborers, seniors, children, etc.) F. Does your organization charge recipients for the provided services?  No  Yes (Please specify) $ IV. IMPLEMENTATION OF ACTIVITY A. Please submit a schedule for implementation as Attachment E if this proposal is for Jan. 18, 2022 Item #3 Page 14 of 18 6 construction, rehabilitation, property acquisition, and construction related activities, or a new public/community service program/project. Acquisition of property or construction related projects must also include an Attachment D for plans, scope of work, cost estimates, property listing, or other appropriate documents. V. DOCUMENTATION A. How will the beneficiaries’ information be collected and documented? B. How will the outcomes be measured, collected, and documented? VI. PARTNERSHIPS, COLLABORATION, AND OUTREACH A. Describe how you are collaborating with other agencies such as the County Continuum of Care and other non-profit organizations and/or agencies to form a cohesive approach in serving the low inome and most vulnerable populations. I, the undersigned, do hereby attest that the above information is true and correct to the best of my knowledge. Signature Title Date NOTE: Applications must include a resolution from your organization’s Board of Directors authorizing the person signing above to submit funding applications and to enter into funding agreements if selected. Information below to be completed by Housing and Homeless Services Department staff. Date Received: Date Reviewed: Staff Person Completing Review: National Objective: Local Objective: Eligibility Determination: Jan. 18, 2022 Item #3 Page 15 of 18 7 (Page intentionally left blank) Jan. 18, 2022 Item #3 Page 16 of 18 8 CDBG PROJECT BUDGET Organization: ___________________________________Total organization budget $_______________________ Program/Project name requesting funds: CDBG funds requested: $ Total program/project budget: $ Note: Indicate with an asterisk (*) funds that are volunteer time or in-kind contribution. 1. Sources of funding for program/project: (S)Secured or (A)Anticipated a. Funding requested from the City $ (S) or (A) b. Other federal funds (if any) (S) or (A) c. State or local government funds (S) or (A) d. Donations and contributions (S) or (A) e. Fees or memberships (S) or (A) f. In-kind contributions / Volunteer time (S) or (A) g. Other funding (S) or (A) h. TOTAL PROJECT FUNDING (project budget) $ (S) or (A) 2. Uses of CDBG funds requested for the program/project: (1.a.) a. Wages and salaries $ b. Personnel benefits c. Materials and supplies d. Program expenses and evaluation e. Rent and utilities f. Insurance g. Mileage (___ @ 56 cents/mile calendar year 2021) h. Incentives and Special Events i. Indirect costs j. k. l. TOTAL REQUESTED FUNDING (same as 1.a.) $ 3. Percentage of project budget represented by CDBG request % 4. If your project will require future funding, please provide information about how the program will be funded. CITY OF CARLSBAD Jan. 18, 2022 Item #3 Page 17 of 18 9 CDBG FUNDING APPLICATION PACKAGE CHECKLIST OF REQUIRED DOCUMENTS The following information is required of all CDBG applicants. All applicants must provide all of the documents listed below even if they have been provided in the past.  Board of Directors' resolution authorizing submittal of application (1 Copy)  Board of Directors' resolution designating official(s) authorized to enter into agreements on behalf of organization (1 Copy) (Note: One resolution both authorizing submittal of applications and entering into agreements may be substituted for the above two documents.)  List of Board of Directors (1 Copy)  Financial Audit Report for the most recently ending Fiscal Year (1 Copy)  Funding proposal application. Application form format is to remain as it is provided in Request for Proposal package. Application is not to exceed twenty (20) pages total, including attachments A, B, C below. (Pages included after the first 20 pages in an application package will not be distributed or used for evaluation purposes.)  Attachment A Executive Summary (required)  Attachment B Organizational chart (required)  Attachment C Resumes of identified key personnel (Optional)  Attachment D Implementation schedule for construction, rehabilitation, property acquisition, other construction related, or new public/community service activities. (if applicable)  Attachment E Acquisition of Property or Construction Related Projects: Architectural plans, scope of work, estimate of costs, listing of property to be acquired or other appropriate documentation. (if applicable) Please note that the attachment of brochures or other information will not be accepted in lieu of completing each question on the Funding Proposal Application. Additionally, any other attachments, such as newspaper articles, not directly related to the application will not be accepted. Jan. 18, 2022 Item #3 Page 18 of 18 FY 2022-23 Funding Plan and Notice of Funding Availability Nancy Melander, Sr. Program Manager Housing & Homeless Services Department January 18, 2022 {city of Carlsbad TODAY’S PRESENTATION •Overview •Consolidated Plan Priorities •Funding Plan •Notice of Funding Availability •Next Steps •Proposed Action ITEM 10:CDBG FUNDING PLAN { City of Carlsbad Overview •Consolidated Plan •Annual Action Plan •Funding Plan •Notice of Funding Availability ITEM 10: SHORTENED TITLE HERE (city of Carlsbad CONSOLIDATED PLAN PRIORITIES •Increase and preserve affordable housing •Prevent and reduce homelessness •Strengthen support services •Improve and provide facilities •Provide fair housing services ITEM 10: CDBG FUNDING PLAN { City of Carlsbad FUNDING PLAN FOR FY 2022-23 Activity Percent of annual grant Proposed allocation Administration and fair housing 20%$105,430 Public services 15%$79,073 Facility improvement and affordable housing uncapped $342,651 TOTAL AVAILABLE FUNDS $527,154 ITEM 10: CDBG FUNDING PLAN NOTICE OF FUNDING AVAILABILITY Applications: www.carlsbadca.gov Past and present service providers City departments Organizations that have expressed interest Deadline: February 21, 2022 ITEM 10: CDBG FUNDING PLAN [i] 0 00 c=3 ~ { City of Carlsbad NEXT STEPS 2022 MARCH CDBG Advisory Committee review and deliberation APRIL DRAFT Plan for public review & comment February NOFA deadline to submit proposals MAY FINAL Action Plan for City Council approval ITEM 10: SHORTENED TITLE HERE 0 0 0 0 (city of Carlsbad PROPOSED ACTION Adopt a resolution approving the Funding Plan and authorize the distribution of the Notice of Funding Availability for city’s CDBG FY 2022-23 program. ITEM 10: CDBG FUNDING PLAN { City of Carlsbad