HomeMy WebLinkAbout2023-01-10; City Council; ; Fiscal Year 2023-24 Funding Plan for the Community Development Block Grant Program and a Substantial Amendment to Fiscal Year 2022-23 Action PlanCA Review __RK__
Meeting Date:
To:
From:
Staff Contact:
Subject:
District:
Jan. 10, 2023
Mayor and City Council
Scott Chadwick, City Manager
Nicole Piano-Jones, Program Manager
nicole.pianojones@carlsbadca.gov, 442-339-2191
Fiscal Year 2023-24 Funding Plan for the Community Development Block
Grant Program and a Substantial Amendment to Fiscal Year 2022-23
Action Plan
All
Recommended Actions
Hold a public hearing and adopt resolutions:
1.Adopt a resolution approving the Community Development Block Grant Program Fiscal
Year 2023-24 Funding Plan and authorizing the distribution of the notice of funding
availability.
2.Adopt a resolution approving the Fiscal Year 2022-23 Amended Annual Action Plan,
authorizing it to be submitted to the U.S. Department of Housing and Urban
Development, and authorizing the Deputy City Manager, Administrative Services, to
appropriate an additional $253,018 to the Community Development Block Grant Special
Revenue Fund’s fiscal year 2022-23 operating budget to provide the funds needed to
complete public services and program administration.
Executive Summary
The city receives Community Development Block Grant funds from the U.S. Department of
Housing and Urban Development each year. These grants are intended to help the city provide
providing decent housing and a suitable living environment, and to expand economic
opportunities, principally for low- and moderate-income people.
As a condition of the grant, the city must have a consolidated plan identifying the community
development and housing needs of the city’s low-income residents and strategies to meet
those needs over a five-year period. The grant terms also require the city to have an annual
action plan that details the projects and programs to be funded to meet the goals identified in
the consolidated plan.
The City Council is being asked to approve:
•The funding plan for Fiscal Year 2023-24 (Exhibit 1)
•An amendment to the Fiscal Year 2022-23 Annual Action Plan (Exhibit 2)
Jan. 10, 2023 Item #4 Page 1 of 29
As a recipient of these federal CDBG funds, the city must allow for public participation in the
grant funding and reallocation process. The city’s Citizen Participation Plan for its CDBG
program describes the ways in which the city will meet those public participation requirements
and defines what is considered a substantial amendment to the city’s action plan. The
participation plan requires an opportunity for public input and the approval of the City Council
at a public hearing for both of these actions.
Discussion
FY 2023-24 Funding Plan
The purpose of the funding plan is to begin the annual cycle process for FY 2023-24, reaffirm
the Consolidated Plan’s priorities, and provide funding estimates for the year. The FY 2023-24
Funding Plan represents the fourth year of the FY 2020-25 Consolidated Plan. At a public
hearing on Jan. 14, 2020, the City Council approved the following Consolidated Plan priorities:
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 lower income persons
Priority 5 Provide fair housing services to residents
Priority 6 Plan and administer the Community Development Block Grant program
The proposed FY 2023-24 Funding Plan, with the national and local objectives for the program,
is provided as Attachment A to Exhibit 1. The objectives reflect the city's desire to develop a
program that best meets the various needs of lower-income residents in Carlsbad.
This federal grant program regulates the amount of funds that are to be allocated to certain
activities. Because of this, the funding plan provides estimates in three categories:
•Public service
•Planning and administration
•Facility improvements and affordable housing.
Jan. 10, 2023 Item #4 Page 2 of 29
While the grant amount the city will receive in FY 2023-24 is not yet known, staff estimate it will
be $476,057, based on a projected 5% reduction from the current year’s award.
Summary of proposed FY 2023-24 Funding Plan
Category To be funded Estimated
available
Public services
(Capped at 15% of grant)
Programs directly assisting low-income households
Services carried out by non-profit agencies $ 71,408
Administration,
fair housing
(Capped at 20% of grant)
Oversight of subrecipients
Compliance with federal requirements
Financial management
Fair housing services
$ 95,211
Affordable housing,
facility improvements
(No cap)
Facility improvements for non-profit service providers
Acquisition and rehabilitation of low-income housing $ 309,438
Estimated FY 2023-24 award $ 476,057
If the final allocation ends up being more or less than anticipated, staff will make adjustments
proportionally over each of the three categories.
Should the City Council approve the FY 2023-24 draft funding plan, applications for FY 2023-24
funds will be made available on the city's website on Jan. 11 and are to be submitted for review
by Feb. 22, 2023. Approving the funding plan, with its notice of funding availability, starts the
application cycle and the annual process of distributing the grant funds to non-profit service
providers in the community.
City staff will review each application for eligibility and completeness. Specific funding
recommendations will be made by the Community Development Block Grant Advisory
Committee and then brought before the City Council for consideration and approval at a public
hearing tentatively scheduled for May 2023. At that public hearing, the City Council will be
asked to review and approve the FY 2023-24 Action Plan, which contains the committee’s
funding recommendations for specific programs and projects.
FY 2022-23 Amended Action Plan
The City Council approved the FY 2022-23 Annual Action Plan on May 10, 2022 (Resolution No.
2022-105). Since that time, city staff identified an additional $996,122 in grant funding that
needs to be allocated to eligible activities. This additional funding comes from program
income received on CDBG-funded activities and unspent funds from projects in prior years.
Because these funds were not originally considered and approved with the FY 2022-23
Action Plan, the City Council approval of a substantial amendment to the existing FY 2022-23
Annual Action Plan is required to appropriate and allocate these funds to eligible projects and
programs.
Jan. 10, 2023 Item #4 Page 3 of 29
Summary of funding available for allocation
Source Amount
Income from resale of affordable units (7/22-12/22) $495,800
Projected income from resale of affordable units (1/23-6/23) $390,988
Unspent balances on completed projects $109,334
Total $996,122
Staff consulted with the non-profit organizations that are currently receiving CDBG funds from
the city to ascertain their need of additional assistance for both public service programs and
improvement projects. The additional funding awards recommended, shown in the table
below, reflect the needs of the subrecipients while staying within the funding limitations of the
grant program.
Funding recommendations
Organization Project Previous
award
Additional
award Total award
Public services
Catholic Charities La Posada Shelter $12,698 $74,370 $87,068
Interfaith Community Services Housing and basic needs $23,698 $29,324 $53,022
Community Resource Center Case management $18,698 $29,324 $48,022
Brother Benno Housing and basic needs $10,073 $0 $10,073
Women’s Resource Center Shelter $10,000 $0 $10,000
Subtotal $75,167 $133,018 $208,185
Administration and fair housing
City of Carlsbad Administration $77,222 $100,000 $177,222
Legal Aid Society Fair housing $23,000 $20,000 $43,000
Subtotal $100,222 $120,000 $220,222
Affordable housing and facility improvements
Catholic Charities Shelter expansion $58,000* $125,000 $183,000
Casa de Amparo Facility improvements $40,000 $150,000 $190,000
Affordable Housing Fund Acquisition and resale $285,724 $443,094 $728,818
Catholic Charities Facility improvements $0 $25,000 $25,000
Subtotal $325,724 $743,094 $1,068,818
All categories
Total $501,113 $996,122 $1,497,235
*awarded in FY 2020-21, so not included in FY 2022-23 totals
Public services
Staff recommend that the maximum amount of 15%, or $133,018, of all income received from
the program during the fiscal year be allocated to three existing public services activities, the
operations of Catholic Charities’ La Posada Shelter, the Community Resource Center program
Jan. 10, 2023 Item #4 Page 4 of 29
and Interfaith Community Services’ Service Center. These three organizations are being
recommended for additional funds based upon several important factors:
• Location of the organization
• Number of Carlsbad residents assisted
• Capacity to spend additional funds expeditiously
• Savings to the General Fund
The savings are because these services are currently being provided in Carlsbad as a part of the
city’s program to reduce homelessness. Using more CDBG funding for these services would help
pay for continued homelessness efforts in fiscal year 2023-24.
Program administration
Staff recommend that the maximum amount of 20%, or $120,000, of all program income
received for the fiscal year be allocated to program administration and fair housing activities.
This will help pay for the personnel costs in the current Fiscal Year 2022-23 Housing & Homeless
Services Department budget, which would otherwise come from the city’s General Fund.
Affordable housing and facility improvements
Staff also recommend that $250,000 be allocated to three facility improvement projects at local
shelters: two existing, approved projects and one new project.
• Catholic Charities previously requested funds for architecture and engineering studies
for the potential expansion of La Posada shelter. The organization was awarded $58,000
based on funding available at that time. The additional funding would cover the costs of
the next steps in the shelter’s expansion.
• Casa de Amparo was previously awarded $40,000 for facility improvements. The
additional award allows it to complete the improvements for the facility.
• Catholic Charities has an immediate need to purchase new commercial washers and
dryers and repair damages in its laundry room to maintain occupancy levels at the
shelter. There was a fire in the laundry room in September and the shelter’s ability to
house homeless people has been temporarily reduced because of its inability to wash
linens.
All remaining and unallocated program income will continue to be used for the city’s Affordable
Housing Resale Program, as needed.
Options
Staff provides the following options for the City Council’s consideration:
1. Approve the funding plan and amended action plan as presented and authorize the
appropriation of funds
Pros
• Allows for the timely solicitation of proposals and review by the Community
Development Block Grant Program Advisory Committee
• Allows the city to expend additional Community Development Block Grant funds
within the timelines required by Department of Housing and Urban Development.
Cons
• None identified
Jan. 10, 2023 Item #4 Page 5 of 29
2. Revise the funding plan and/or amended action plan. If desired, the City Council may
modify the FY 2020-25 Consolidated Plan’s priorities to focus grant funding on activities
that meet a particular priority.
Pros
• Provides the City Council an opportunity to give staff alternative direction
Cons
• None identified
3. Do not approve the funding plan and and/or the amended action plan.
Pros
• None identified
Cons
• The city will not be eligible to receive Community Development Block Grant funding
for FY 2023-24 because 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 is
separate from the city’s General Fund. The program operates on a reimbursement basis in
which grant funds are expended for approved activities and then reimbursed from the
Department of Housing and Urban Development.
The substantial amendment to the FY 2022-23 Action Plan proposes to increase CDBG funding
to three existing subrecipients, each of which has previously been allocated General Fund
dollars for new programs and projects as part of the city’s work program to reduce
homelessness. Increasing grant funding to these organizations would subsequently result in a
General Fund savings during the next FY 2023-24 budget.
Additionally, the proposed substantial amendment to the FY 2022-23 Action Plan would also
increase funding for program administration, which would result in a decrease of General Fund
expenditures within the current FY 2022-23 Housing & Homeless Services personnel budget by
approximately $100,000.
Next Steps
Applications for the grant funding for FY 2023-24 will be available beginning Jan. 11, 2023, and
accepted through Feb. 22, 2023. The Community Development Block Grant Advisory
Committee will review the applications in March or April 2023 and make funding
recommendations to be incorporated into the annual action plan and made available for a
public review period, followed by a public hearing of the City Council in May 2023.
The FY 2022-23 Amended Action Plan will be promptly submitted to HUD and staff will execute
the necessary agreement amendments.
Environmental Evaluation
This action does not require environmental review because it does not constitute a project
within the meaning of the California Environmental Quality Act under Public Resources Code
Jan. 10, 2023 Item #4 Page 6 of 29
section 21065 in that it has no potential to cause either a direct physical change in the
environment or a reasonably foreseeable indirect physical change in the environment.
Public Notification and Outreach
In accordance with the city’s Citizen Participation Plan for its Community Development Block
Grant Program, this public hearing required a 10-day public notice period. Staff published the
notice in the Coast News and on the city’s website on Friday, Dec. 30, 2022. The proposed
amended action plan also required a notice announcing a 30-day public review period. Staff
published the notice in the Coast News and on the city’s website on Dec. 9, 2022.
Past and current subrecipients of Community Development Block Grant funds and city
departments were directly notified of the proposed FY 2023-24 Funding Plan and the notice of
funding availability.
Public comments from the public hearing will be included in the final plans as part of the citizen
participation section.
Exhibits
1.City Council resolution - FY 2023-24 Funding Plan and notice of funding availability
2.City Council resolution - Substantial Amendment FY 2022-23 Action Plan
Jan. 10, 2023 Item #4 Page 7 of 29
RESOLUTION NO. 2023-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA,
APPROVING THE FISCAL YEAR 2023-24 FUNDING PLAN AND AUTHORIZING THE
DISTRIBUTION OF THE FISCAL YEAR 2023-24 NOTICE OF FUNDING
AVAILABILITY FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
WHEREAS, the City Council of the City of Carlsbad, California held a noticed public hearing to
obtain comments on the FY 2023-24 Funding Plan; and
WHEREAS, the City of Carlsbad is anticipating a new allocation of Community Development Block
Grant funds from the United States Department of Housing and Urban Development for FY 2023-24; and
WHEREAS, a public notice announcing this public hearing was published Dec. 30, 2022; and
WHEREAS, public comments from the public review period and the public hearing, if any, will be
included in the FY 2023-24 Annual Action Plan; and
WHEREAS, the City Council of the City of Carlsbad, California has taken all testimony into account
in considering the FY 2023-24 Annual Action Plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1.That the above recitations are true and correct.
2.That the City Council approves the Fiscal Year 2023-24 Community Development Block
Grant Funding Plan (Attachment A).
3.That the City Manager, or his designee, is authorized to distribute the Notice of Funding
Availability (Attachment A) for the FY 2023-24 Community Development Block Grant
program, accept applications for funding, and process them for review by the Community
Development Block Grant Citizen Advisory Committee.
Exhibit 1
Jan. 10, 2023 Item #4 Page 8 of 29
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad
on the 10th day of January, 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder.
None.
None.
None.
f' SHERRY FREISINGER, City Clerk
(SEAL)
Jan. 10, 2023 Item #4 Page 9 of 29
Attachment A
CITY OF CARLSBAD
COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDING PLAN & NOTICE OF FUNDING AVAILABILITY
FY 2023-24
Prepared January 2023
Housing Services Division
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Jan. 10, 2023 Item #4 Page 10 of 29
{'city of
Carlsbad
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. 10, 2023 Item #4 Page 11 of 29
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. 10, 2023 Item #4 Page 12 of 29
4
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
FUNDING PLAN & NOTICE OF FUNDING AVAILABILITY
FY 2023-24 FUNDING PLAN
The City of Carlsbad is a recipient of federal Community Development Block Grant (CDBG)
program funding. For FY 2023-24, the City anticipates an annual award of $476,057. The CDBG
program regulates the amount of funds allocated to certain activities. Because of this, the
Funding Plan provides estimates within three categories; public services, planning and
administration, and facility improvements/affordable housing.
Category Key Details Estimated
Available
Public Services
(Capped at 15% of grant)
• Programs directly assisting low-income households
• Services carried out by non-profit agencies $ 71,408
Administration/Fair Housing
(Capped at 20% of grant)
• Subrecipient oversight
• Compliance with federal requirements
• Financial management
• Fair Housing services
$ 95,211
Affordable Housing/Facility
Improvements
• Facility Improvements for non-profit service providers
• Acquisition/rehabilitation of low-income housing $ 309,438
ESTIMATED FY 2023-24 AWARD: $ 476,057
The FY 2023-24 award is currently an estimate based upon the five percent reduction from the
current year award. Should the actual allocation be more or less than anticipated, adjustments
will be made proportionally over each category; public services, planning/administration, and
facility improvements & affordable housing.
Program Income: Staff anticipates receiving program income during the fiscal year, although the
exact amount and date by which funds are received is unknown. For planning purposes, all
program income received during the fiscal year will be allocated as followed:
- A maximum of 15 percent allocated to public services
- A maximum of 20 percent allocated to program administration
- Remaining available program income will be distributed to existing, approved facility
improvement and affordable housing activities first, before funding a new project
NOTICE OF FUNDING AVAILABILITY
Beginning on January 11, 2023, the City of Carlsbad will be accepting applications for eligible
programs and projects. The estimated funding availability is as follows:
• Fair Housing Services $25,000
• Public Services $71,408
• Facility Improvements/ $309,438
Affordable Housing
Jan. 10, 2023 Item #4 Page 13 of 29
5
Below is the estimated timeline – please note that the dates are tentative and subject to
change. All public meetings and review/comment periods will be publicly noticed.
• Applications Available January 11, 2023
• Applications Due February 22, 2023
• CDBG Advisory Committee March/April 2023
• City Council Public Hearing May 9, 2023 (Anticipated)
The FY 2023-24 CDBG Application will be available on City Website:
https://www.carlsbadca.gov/city-hall/grants-assistance/cdbg
Applications due:
February 22, 2023, by 5:00 p.m.
housing@carlsbadca.gov
*Email Submission Highly Encouraged*
Paper copies may be delivered to:
City of Carlsbad - Housing & Homeless Services
Attn: CDBG Program
1200 Carlsbad Village Drive
Carlsbad, CA, 92008
Contact: Nicole Piano-Jones, Program Manager at
Nicole.pianojones@carlsbadca.gov
(442) 339-2191
(Remainder of page intentionally left blank)
Jan. 10, 2023 Item #4 Page 14 of 29
RESOLUTION NO. 2023-005
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE FISCAL YEAR 2022-23 AMENDED ANNUAL
ACTION PLAN, AND AUTHORIZING THE SUBMITTAL TO THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WHEREAS, the primary objective of the federal Community Development Block Grant Program
is to develop viable urban communities through the provision of improved living environments,
expansion of economic opportunity and decent housing. Grant funds received through the program
are intended to serve principally persons of low and moderate income; and
WHEREAS, the draft Amended Annual Action Plan was released for a 30-day public review
period which began on Dec. 9, 2022, and concluded with a City Council public hearing on Jan. 10, 2023;
and
WHEREAS, public comments from the public review period and the public hearing, if any, will
be addressed through written response and included in the FY 2022-23 Amended Annual Action Plan;
and
WHEREAS, the City Council of the City of Carlsbad, California has taken all testimony into
account in considering the FY 2022-23 Amended Annual Action Plan; and
WHEREAS, the City of Carlsbad is committed to continuing to provide a suitable living
environment and to expand economic opportunities for the city's low-income residents as is outlined
in the plan; and
WHEREAS, staff recommend an additional appropriation in the Community Development Block
Grant Special Revenue Fund of $253,018.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the FY 2022-23 Amended Annual Action Plan is hereby approved by the City Council
(Attachment A).
3.That, on the city's behalf, the City Manager, or designee, is authorized to prepare and
submit the city's FY 2022-2023 Amended Annual Action Plan (Attachment A), and
execute all documents required to as set forth in Attachment A to the U.S. Department
Exhibit 2
Jan. 10, 2023 Item #4 Page 15 of 29
of Housing and Urban Development for approval and execute all documents necessary
in carrying our activities in FY 2022-23 Amended Action Plan.
4.That the Deputy City Manager, Administrative Services, is authorized to appropriate
$253,018 to the Community Development Block Grant Special Revenue Fund's FY 2022-
23 operating budget.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 10th day of January, 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder.
None.
None.
None.
KEITH B� CKBURN, Mayor
� ./rv SHERRY FREISINGER, City Clerk
(SEAL)
Jan. 10, 2023 Item #4 Page 16 of 29
Attachment A
Fiscal Year 2022-23
Amended Annual Action Plan
Carlsbad, CA
Prepared By:
Housing Services Division
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Jan. 10, 2023 Item #4 Page 17 of 29
{_ City of
Carlsbad
Annual Action Plan
2022
2
OMB Control No: 2506-0117 (exp. 06/30/2018)
EXECUTIVE SUMMARY
The purpose of the Substantial Amendment #1 is to allocate additional CDBG funding to eligible
projects and programs. The additional funds were received from program income and
unspent funds from prior year projects.
The City of Carlsbad has received $495,800 in program income since July 1, 2022, and
additionally has a total of $109,334 in funds from projects that did not expend their full
allocation. Because these funds were not originally considered and approved with the FY 2022-
23 Action Plan, the plan must be amended in order to appropriate and allocate these funds to
eligible activities.
Pursuant to HUD regulations, the City’s Citizen and Community Participation Plan, this
Substantial Amendment will be available for public review and comment for a period of thirty
days. Notice of this review period and public hearing will be published in the Coast News and
on the City’s website.
Proposed amendments are shown using red underlined and strikeout formatting. Text in red
underline font indicates new text. Text with strike out formatting indicates deleted text. Only
amended 2022-23 Action Plan sections are shown.
Jan. 10, 2023 Item #4 Page 18 of 29
Annual Action Plan
2022
3
OMB Control No: 2506-0117 (exp. 06/30/2018)
Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
A number of housing and community development resources are currently available in the city. They
include:
• Community Development Block Grant (CDBG) funds
• Community Development Block Grant Coronavirus federal funds (CDBG-CV)
• General funds
• HUD Section 108
• HUD Housing Choice Voucher Program (through the Carlsbad Housing Authority)
• State Housing and Community Development (HCD) housing funds
• State transportation funds
• Carlsbad Affordable Housing Trust Fund
• American Rescue Plan
• Anticipated Resources
Jan. 10, 2023 Item #4 Page 19 of 29
Annual Action Plan
2022
4
OMB Control No: 2506-0117 (exp. 06/30/2018)
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 3 Expected
Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income: $ Prior Year
Resources:
$
Total:
$
CDBG
public
-
federal
Admin/
Planning
Public
Improv.
Public
Services
Acquisition
$501,113 $889,788 $109,334 $1,497,225
$501,113 $909,170
If the city continues to
receive approximately
$500,000 annually in
CDBG funds it estimated
that the city will have
approximately $2,500,000
available for the five years
covering the Consolidated
Plan not including
program income.
In FY2020 the city received
$536,522 and in FY 2021
the city received
$527,154. It is anticipated
that the city will again
receive the same amount
of $527,154 in CDBG
funds. Should the city
received the $527,154 the
remaining amount for the
remainder of the
Consolidated Plan will be
approximately $909,170. Jan. 10, 2023Item #4 Page 20 of 29
Annual Action Plan
2022
5
OMB Control No: 2506-0117 (exp. 06/30/2018)
Table 1 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how
matching requirements will be satisfied
While CDBG program does not require matching funds, CDBG funds offer excellent opportunities to leverage private, local, state, and other
federal funds to allow for the provision of public service activities. For example, many state housing programs have scoring criteria that reward
applicants who have matching funds. In the past, Carlsbad has been extremely successful in garnering matching infrastructure and
transportation funds, and it will continue to seek such opportunities in the future. The city is currently looking at HCD’s Permanent Local
Housing Allocation funding and how CDBG can be leveraged with the PHLA program.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs
identified in the plan
As the housing crisis has worsened in California, utilizing publicly owned land for affordable housing development has become an increasingly
popular policy solution. In recent years the State of California has taken several actions to make state and local lands available for affordable
housing development, including:
• An executive order to make excess state land available for affordable housing (Executive Order N-06-19)
• Connecting affordable housing developers to local surplus land and strengthening enforcement of the Surplus Lands Act (AB 1486, Ting,
2019)
• Requiring cities and counties to inventory and report surplus and excess local public lands to include in a statewide inventory (AB 1255,
Robert Rivas, 2019)
For its part, the city regularly reviews its real estate portfolio and assesses if properties are being put to best use. The city’s recently adopted
General Plan Housing Element includes a program to evaluate and re-designate city-owned sites appropriate for residential use to address the
housing needs of lower and moderate-income residents over the next eight years.
Jan. 10, 2023Item #4 Page 21 of 29
Annual Action Plan
2022
6
OMB Control No: 2506-0117 (exp. 06/30/2018)
Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e)
Goals Summary Information
Goal Name Start
Year
End
Year Category Geographic
Area
Needs
Addressed Funding
Goal
Outcome
Indicator
High
Priority
Increase and
preserve
affordable
housing
2022 2023 Affordable Housing Citywide
benefit
Increase
Affordable
Housing
CDBG:
$728,818
$285,725
Households
High Priority
Prevent and
reduce
homelessness
2022 2023 Homeless Services Citywide
benefit
Prevent and
Reduce
Homelessness
CDBG:
$149,537
$75,167
Persons
Medium
Priority
Supportive
Services for LMI
and Special
Needs Groups
2022 2023 Non-Homeless
Special Needs
Citywide
benefit
Social Services
for LMI and
Special Needs
CDBG: $0 Persons
Medium
Priority
Improve
Facilities 2022 2023
Non-Housing
Community
Development
Citywide
benefit
Public
Improvements
CDBG:
$190,000
$40,000
Persons
Medium
Priority
Provide Fair
Housing 2022 2023
Non-Housing
Community
Development
Citywide
benefit Fair Housing
CDBG:
$43,000
$23,000
Persons
Low
Priority
Program
Administration 2022 2023 N/A Citywide
benefit N/A
CDBG:
$177,222
$77,222
N/A
Table 2 – Goals Summary
Jan. 10, 2023Item #4 Page 22 of 29
Annual Action Plan
2022
7
OMB Control No: 2506-0117 (exp. 06/30/2018)
AP-35 Projects - 91.420, 91.220(d)
Introduction
For FY 2022-23, the City of Carlsbad will receive $501,113 in CDBG funding. Unspent funds from prior
year projects total $109,334. Program income received to-date totals $495,800. Based upon the
expected closing dates for three affordable resale program units, staff anticipates that the City will
receive an additional $390,988 in program income. The total projects listed in the table equal
$1,497,225. $501,113.
# Project Name FY 2022
CDBG Funding
1 Catholic Charities $87,068
$12,698
2 Interfaith Community Services $53,022*
$23,698
3 Community Resource Center $48,022*
$18,698
4 WRC $10,000
5 Brother Benno $10,073
6 Legal Aid Society of San Diego $43,000
23,000
7 Casa de Amparo $190,000
$40,000
8 Carlsbad Housing Fund $728,818
$285,725
9 City Administration $177,222*
$77,222
10 Catholic Charities – Facility Improvements $25,000
11 Catholic Charities – Shelter Expansion – Phase II $125,000
Table 3 – Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City of Carlsbad is limited in its ability to meet all of the housing needs of lower income households.
However, a sincere effort will be made to combine various city resources to meet as much of the top
needs as financially feasible within the Action Plan time period, as well as the overall needs identified in
the FY 2020-25 Consolidated Plan.
During this time while the COVID-19 pandemic is moving towards an endemic, the FY 2022 subrecipients
listed above have indicated that they are also serving the populations the Centers for Disease Control
and Prevention have indicated are at a higher risk of contracting COVID-19. Those populations include
persons experiencing homelessness, seniors over the age of 60, and persons with disabilities. The city’s
CDBG subrecipients are experiencing increased needs related to food insecurity, emergency financial
assistance for housing, and short-term shelter. Within these needs, there has been an increase in case
management required, crisis intervention, and helping clients navigate various systems to connect to
benefits. Additionally, the city’s fair housing services provider has seen an increase in requests for fair
Jan. 10, 2023 Item #4 Page 23 of 29
Annual Action Plan
2022
8
OMB Control No: 2506-0117 (exp. 06/30/2018)
housing assistance due to confusion regarding the rights of tenants and homeowners with mortgages in
relationship to the new eviction moratoriums.
AP-38 Project Summary
Project Summary Information
1 Project Name Catholic Charities
Target Area Citywide benefit
Goals Supported Prevent and reduce homelessness.
Needs Addressed Prevent and Reduce Homelessness
Funding CDBG: $87,068 $12,698 staff salaries
Description La Posada De Guadalupe is a 7-day, 24-hour alcohol- and drug-free
facility in Carlsbad. The program is designed to provide services for
homeless men in San Diego County. La Posada provides 50
emergency shelter beds for men and 50 farmworker beds. In the
winter months La Posada increases its emergency shelter beds from
50 to 60 beds.
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
70 individuals
Location Description 2476 Impala Drive Carlsbad, CA 92010
Planned Activities FY 2022 CDBG funds will be spent on salaries/wages (supervision of
clients at the shelter).
2 Project Name Interfaith Community Services
Target Area Citywide benefit
Goals Supported Prevent and reduce homelessness.
Needs Addressed Prevent and Reduce Homelessness
Funding CDBG: $53,022 $23,698 rental/utility payments and social services
Description Low-income Carlsbad residents will benefit from the range of
supportive programs at the Carlsbad Service Center including
emergency rental assistance, basic needs and employment assistance
services.
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
15 families for rental assistance, 200 individuals with basic needs, and
75 individuals with employment assistance
Location Description Carlsbad Service Center, 5731Palmer Way Suite A, Carlsbad, CA 92010
Planned Activities Rental assistance and diversion to prevent or immediately reverse
homelessness, basic needs such as emergency food and hygiene kits
to Carlsbad residents and their families, and employment assistance.
3 Project Name WRC
Target Area Citywide benefit
Jan. 10, 2023 Item #4 Page 24 of 29
Annual Action Plan
2022
9
OMB Control No: 2506-0117 (exp. 06/30/2018)
Goals Supported Prevent and reduce homelessness.
Needs Addressed Prevent and reduce homelessness.
Funding CDBG: $10,000 shelter and basic needs supplies
Description WRC shelter offers a safe, non-isolating environment for survivors
and their children to rest, recuperate, and plan next steps with the
support of WRC case management program. Case managers work
individually with clients, to assess their needs and guide them in
receiving the resources and support necessary to rebuild and find
accessible and affordable transitional or permanent housing
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
53 persons
Location Description 1963 Apple Street, Oceanside, CA 92054
Planned Activities Funds will be used to provide direct program materials to clients such
as food, hygiene products, linens, diapers, transportation.
4 Project Name Brother Benno
Target Area citywide benefit
Goals Supported Prevent and reduce homelessness.
Needs Addressed Prevent and reduce homelessness.
Funding CDBG: $10,073 recovery program for homeless and LMI
Description Brother Benno's serves the poor and neediest in North County San
Diego, including Carlsbad residents. The agency operates two shelters
for women, a twelve-step residential recovery program-for men, a
hot meal and emergency food distribution program for the working
poor.
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
10 individuals
Location Description 3260 Production Avenue Oceanside, CA 92058
Planned Activities The proposed program will assist direct program costs and case
management services
5 Project Name City of Carlsbad, Carlsbad Housing Fund
Target Area Citywide benefit
Goals Supported Increase and preserve affordable housing
Needs Addressed Affordable Housing
Funding CDBG: $728,818 $285,725
Jan. 10, 2023 Item #4 Page 25 of 29
Annual Action Plan
2022
10
OMB Control No: 2506-0117 (exp. 06/30/2018)
Description The City of Carlsbad has established a Housing Fund for the purpose
of developing affordable housing for lower -income households
and/or purchasing affordable housing units for lower income families.
The activities will include the purchase of existing affordable units as
they become available in existing developments and other property
acquisition for low income affordable housing purposes, including
housing for the homeless (such as acquisition of vacant land or
underutilized land for new development, existing rental units with
rehabilitation efforts, market rate condominiums to be resold to low
income households, and/or partnerships with an affordable housing
developer for property acquisition for low income affordable housing
development).
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
Households to be determined based on the housing activity described
above.
Location Description Carlsbad, Citywide
Planned Activities Utilize funds to acquire existing affordable units such as vacant land
or underutilized land for new development, existing rental units with
rehabilitation efforts, market rate condominiums to be resold to low-
income households, and/or partnerships with an affordable housing
developer for property acquisition for low-income affordable housing
development).
6 Project Name Program Administration
Target Area Citywide benefit
Goals Supported Increase and preserve affordable housing
Prevent and reduce homelessness.
Supportive Services for LMI and Special Needs
Improve Facilities
Provide Fair Housing
Needs Addressed Planning and Administration
Funding CDBG: $177,222 $77,222
Description The Housing Services Division is responsible for administering the
city's CDBG funded programs.
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
citywide
Location Description citywide
Planned Activities admin, planning, record keeping, monitoring, financial tracking
7 Project Name Legal Aid Society of San Diego
Target Area Citywide benefit
Goals Supported Provide Fair Housing
Needs Addressed Fair Housing
Jan. 10, 2023 Item #4 Page 26 of 29
Annual Action Plan
2022
11
OMB Control No: 2506-0117 (exp. 06/30/2018)
Funding CDBG: $43,000 $23,000
Description Legal Aid Society of San Diego will provide fair housing services to all
Carlsbad residents. LASSD promotes housing opportunities for all
persons regardless of race, religion, sex, family size, familial status,
ancestry, national origin, color, or disability. LASSD staff will provide
direct assistance to those in need in particular during the pandemic
when residents are in need of advice and guidance on eviction
moratoriums and recent changes to the law.
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
145 persons
Location Description 216 S. Tremont Street, Oceanside, CA 92054
Planned Activities Funds will be used to provide fair housing services for residents
including advocacy, education, and
mediation
8 Project Name Community Resource Center
Target Area Citywide benefit
Goals Supported Prevent and reduce homelessness
Needs Addressed Prevent and reduce homelessness
Funding CDBG: $48,022 $18,698
Description CRC works to end hunger, homelessness and domestic violence in
North County San Diego. As a provider of integrative services, CRC’s
programs include a domestic violence emergency shelter, hotline and
prevention/education outreach, a Therapeutic Children’s Center,
professional counseling, legal advocacy, food and nutrition
distribution center, homelessness prevention and rental and housing
assistance. All of CRC’s programs are designed to assist participants to
successfully navigate their paths of safety, stability & self-sufficiency.
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed activities
20 persons
Location Description 1065 Carlsbad Village Drive
Planned Activities Homeless prevention and diversion through emergency rental
assistance and wrap around services
9 Project Name Casa de Amparo
Target Area Citywide benefit
Goals Supported Prevent and reduce homelessness
Needs Addressed Prevent and reduce homelessness
Funding CDBG: $190,000 $40,000
Description Facility improvements to enhance the Casa Kids Campus
Target Date 6/30/2022
Jan. 10, 2023 Item #4 Page 27 of 29
Annual Action Plan
2022
12
OMB Control No: 2506-0117 (exp. 06/30/2018)
Estimate the number
and type of families
that will benefit from
the proposed activities
Approx. 2% of the total clients served
Location Description 325 Buena Creek Road, San Marcos, CA 92069
Planned Activities Security Shelter equipment for the Casa Kids Campus
10 Project Name Catholic Charities
Target Area Citywide benefit
Goals Supported Prevent and reduce homelessness
Needs Addressed Prevent and reduce homelessness
Funding CDBG: $25,000
Description Facility improvements to La Posada Shelter
Target Date 6/30/2022
Estimate the number
and type of families
that will benefit from
the proposed activities
6/30/2023
70 individuals
Location Description 2476 Impala Drive Carlsbad, CA 92010
Planned Activities La Posada Facility Improvements
11 Project Name Catholic Charities
Target Area Citywide benefit
Goals Supported Prevent and reduce homelessness
Needs Addressed Prevent and reduce homelessness
Funding CDBG: $125,000
Description Shelter Expansion at La Posada
Target Date 6/30/2022
Estimate the number
and type of families
that will benefit from
the proposed activities
6/30/2023
70 individuals
Location Description 2476 Impala Drive Carlsbad, CA 92010
Planned Activities Phase II – Shelter Expansion
Jan. 10, 2023 Item #4 Page 28 of 29
Annual Action Plan
2022
13
OMB Control No: 2506-0117 (exp. 06/30/2018)
Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4)
Introduction
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the
Projects Table. The following identifies program income that is available for use that is included in
projects to be carried out.
1. The total amount of program income that will have been received before the start of
the next program year and that has not yet been reprogrammed
N/A
$886,788
2. The amount of proceeds from section 108 loan guarantees that will be used during the
year to address priority needs and specific objectives identified in grantee's strategic plan
N/A
3. The amount of surplus funds from urban renewal settlements N/A
4. The amount of any grant funds returned to the line of credit for which the planned use
has not been included in a prior statement or plan.
N/A
5. The amount of income from float-funded activities N/A
Total Program Income N/A
$886,788
Other CDBG Requirements
1. The amount of urgent need activities N/A
Jan. 10, 2023 Item #4 Page 29 of 29
TO: CITY CLERK
DATE OF PUBLIC HEARING:
AFFIDAVIT OF MAILING
NOTICE OF PUBLIC HEARING
SUBJECT: _------",(:_,L_:').c...;(6c.....:::,,,...c.....:::t:;7c......_ __________ _
LOCATION: ~00 Carlsbad Village Drive, Carlsbad, CA 92008 J--. ✓
D Other:_________________ _/'\.
DATE POSTED TO CITY WEBSITE __ l~c9-~L-£-½~~~-
{) vi.rt»'....,
DATE NOTICES MAILED TO PROPERTY OWNERS: ----------
NUMBER MAILED:
I declare under penalty of perjury under the laws of the State of California that I am employed by
the City of Carlsbad and the foregoing is true and correct.
DEPARTMENT: ~ CLERK'S OFFICE □OTHER _______ _
':-,.,_ ~o. ).OR 121-~ / ,:;,/ 13/ ;2.c.;B
Signature Date
SENT TO FOR PUBLICATION VIA E-MAIL TO: □ Union Tribune on ___ _
~ Coast News on· I 1:;..,lu2:2_
PUBLICATION DATE: Union Tribune --------------
Coast News --'--J_;)...:;_f ..:.,...9/__,,~..,__2.____ ____ _
I declare under penalty of perjury under the laws of the State of California that I am employed by
the City of Carlsbad and the foregoing is true and correct.
DEPARTMENT: ~TY CLERK'S OFFICE □ OTHER _______ _
\~1il~
Signature Date
Attachments: 1) Mailing Labels
2) Notice w/ attachments
NOTICE OF PUBLIC HEARING AND
FUNDING AVAILABILITY
NOTICE IS HEREBY GIVEN to you because your interest may be affected, that the City Council of
the City of Carlsbad will hold a public hearing at the Council Chamber, 1200 Carlsbad Village Drive,
Carlsbad, California, at 5 p.m. on Tuesday, Jan. 10, 2023, for the city's Community Development
Block Grant (CDBG} program Fiscal Year (FY} 2023-24 (July 1, 2023 -June 30, 2024} Funding Plan
and Notice of Funding Availability.
The CDBG program is funded by the U.S. Department of Housing and Urban Development (HUD}.
The City of Carlsbad is an entitlement community and receives CDBG funds directly from HUD to
address local community development needs. The City of Carlsbad requests participation from
community members to develop a CDBG program that meets the needs of City's vulnerable and
lower income residents. The FY 2023-24 CDBG Funding Plan will be available for public review
beginning on Jan. 6, 2023, on the city's website: https://www.carlsbadca.gov/city-hall/grants-
assistance/cdbg. For FY 2023-24, the City of Carlsbad anticipates an annual grant of $476,057; of
which funds are estimated to be available in the following categories:
• Public Services
• Administration & Fair Housing
• Affordable Housing & Facility Improvements
$71,408
$95,211
$309,438
Beginning on Jan. 11, 2023, the City of Carlsbad is soliciting proposal s for projects, activities, and
programs. Applications will be available on the city website: https://www.carlsbadca.gov/city-
hall/grants-assistance/cdbg. Completed application packages, including required attachments,
must be submitted prior to Feb. 22, 2023. All community organizations are encouraged to submit
a proposed project, or projects, for consideration by the City Council at a future public hearing.
Those persons wishing to speak on this item are cordially invited to attend the public hearing. In
addition, written comments may be submitted to the City Council at or prior to the hea ring via
U.S. Mail to the attention of the City Clerk, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, or
via email to clerk@carlsbadcagov. Copies of the staff report will be available by Fri. Jan. 6, 2023,
on the city's website: https://www.carlsbadca.gov/city-hall/meetings-agendas The meeting can
be viewed online at https://www.carlsbadca.gov/city-hall/meetings-agendas or on the city's
cable channel.
For questions, or to obtain a copy of the staff report, please contact Housing & Homeless Services
Department Program Manager Nicole Piano-Jones at (442} 339-2191 or
nicole.pianojones@carlsbadca.gov.
PUBLISH: Friday, December 30, 2022
CITY OF CARLSBAD
CITY COUNCIL
NOTICE OF PUBLIC REVIEW AND
PUBLIC HEARING
NOTICE IS HEREBY GIVEN, the City Council of the City of Carlsbad will conduct a public hearing on
Tuesday, Jan. 10, 2023, at 5 p.m. for a substantial amendment to the city's Community
Development Block Grant (CDBG} program Fiscal Year (FY} 2022-23 (July 1, 2022 -June 30, 2023}
Action Plan.
The CDBG program is funded by the U.S. Department of Housing and Urban Development (HUD}.
The City of Carlsbad is an entitlement community and receives CDBG funds directly from HUD to
address local community development needs. Each year the City Council approves an Annual
Action Plan, which describes the projects and programs funded for the Fiscal Year. On May 10,
2022, the Carlsbad City Council approved the FY 2022-23 Annual Action Plan. Since that time the
city has received income on CDBG funded activities and city staff have identified unused CDBG
balances from completed projects. The amendment provides for the additional funds to be used
for previously approved programs and projects. The Substantial Amendment proposes the
following approximate allocation of CDBG funds:
• Public Services
• Administration & Fair Housing
• Affordable Housing & Facility Improvements
$133,018
$177,357
$689,148
The Substantial Amendment to the FY 2022-23 Action Plan will be available for public review
beginning on Monday, Dec. 12, 2022, on the city's website: https://www.carlsbadca.gov/city-
hall/grants-assistance/cdbg. Those with interest are encouraged to submit written comments
and/or attend the public hearing scheduled for Jan. 10, 2023, 5 p.m., at Carlsbad City Hall located
at 1200 Carlsbad Village Drive, Carlsbad, CA 92008. Copies of the staff report will be available by
Friday, Jan. 6, 2023, on the city's website: https://www.carlsbadca.gov/city-hall/meetings-
agendas. The meeting can be viewed online at https://www.carlsbadca.gov/city-hall/meetings-
agendas or on the city's cable channel.
To submit comments or direct questions, or to obtain a copy of the staff report, please contact
Housing & Homeless Services Department Program Manager Nicole-Piano-Jones at (442} 339-
2191 or nicole.pianojones@carlsbadca.gov.
PUBLISH: Friday, Dec. 9, 2022
CITY OF CARLSBAD
CITY COUNCIL