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Home My WebLink About2023-03-30; Community Development Block Grant -CDBG- Citizen Advisory Committee; ; Community Development Block Grant Overview & UpdatesMeeting Date: March 30, 2023 To: Community Development Block Grant Citizen Advisory Committee From: Nicole Piano-Jones, Program Manager Staff Contact: Nicole Piano-Jones, Program Manager nicole.pianojones@carlsbadca.gov, 442-339-2191 Subject: Community Development Block Grant Overview & Updates Recommended Action That the committee receive the informational report. Executive Summary This item provides an overview of the Community Development Block Grant program, the city’s funding process and proposed changes. Discussion The Community Development Block Grant (CDBG) program is a federally funded program created by the Housing and Community Development Act in 1974. Program funding is provided to the federal United States Department of Housing and Urban Development (HUD) through annual congressional appropriations. These funds are then distributed to local communicates as block grants. These grants are intended to help local jurisdictions fund projects and program that provide decent housing, a suitable living environment, and expand economic opportunities, principally for low- and moderate-income people. Each CDBG funded activity must meet one of the three program National Objectives: 1.Benefit low-and moderate-income individuals, households or neighborhoods; 2.Prevention or elimination of slums or blight; or 3.Address community development needs having particular urgency because existing conditions pose a series and immediate threat to the health and welfare of the community of which funding is not available. In addition to the meeting one of the national objectives, CDBG funded activities must be an eligible use of funds. The CDBG program defines eligible and ineligible activities – below are some examples of both: Eligible Activities •Acquisition/Disposition •Public Facilities/Improvements COMMUNITY DEVELOPMENT BLOCK GRANT CITIZEN ADVISORY COMMITTEE March 30, 2023 Item #2 Page 1 of 4 Staff Report •Clearance/Remediation •Public Services •Relocation •Rehabilitation/Preservation •Lead Based Paint Evaluation and Reduction •Planning/Administration Ineligible Activities •Buildings (or portions thereof) for the General Conduct of Government •General Government Expenses •Political Activities FUNDING RESTRICTIONS The CDBG program places limitations on the amount of funding for certain activities; specialty services and administration. An entitlement grantee may only expend a maximum of 15% of the total annual grant on public services and a maximum of 20% of the total grant on planning and administration. REQUIRED PLANS AND DOCUMENTS The CDBG program requires that entitlement grantees create several plans and documents that convey the priority use of funds and performance. Consolidated Plan - Identifies the community development and housing needs of the city’s low-income residents, and strategies to meet those needs over a five-year period -Establishes funding priorities for five-year period -Must be approved by HUD -Community engagement and participation key in development – public review, public hearing by City Council Annual Action Plan - Mechanism by which projects and programs are funded to meet the goals identified in the Consolidated Plan -Establishes funding plan for the fiscal year -Involves public review and public hearing by City Council -Submitted to HUD 45 days prior to new fiscal year Consolidated Annual Performance and Evaluation Report -Year-end summary of accomplishments and expended funds during fiscal year -Submitted to HUD 90 days after end of fiscal year -Involves public review Citizen Participation Plan -Describes how city makes documents available and solicits public participation in planning for CDBG funding -Must be approved by HUD -Involves public review and public hearing by City Council March 30, 2023 Item #2 Page 2 of 4 OTHER PROGRAM REQUIREMENTS All CDBG funded activities are required to comply with a number of federal laws, summarized in part below. Compliance with these federal laws is required by both the city as the grantee and every subrecipient receiving CDBG funds. -Fair Housing and Civil Rights Act - Americans with Disability Act -Environmental Review -Uniform Administrative Requirements -Davis Bacon and Related Acts (Labor) CITY OF CARLSBAD CDBG PROCESS The City of Carlsbad has been a CDBG entitlement grantee since 1988. The average annual award from FY 2018 – 2022 is $539,842. The city’s FY 2020-25 Consolidated Plan was approved by the City Council on January 14, 2020. The Consolidated Plan identified the following high 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 CDBG COMMITTEE The CDBG Citizens Advisory Committee was formed in 1994 and is comprised of seven members, including one Housing Commissioner, one Planning Commissioner, one Senior Commissioner and four residents at large. The Committee meets annually as needed. The charge of the Committee is to review eligible proposals submitted for CDBG funding from the City of Carlsbad. The role of the Committee is to consider the needs of the low/moderate income households of Carlsbad and make recommendations to the City Council to fund activities which are "the most qualified" to meet those needs. PROPOSED CHANGES City staff will be bringing forward several changes to CDBG program administration in the coming months. These changes include transferring review of the funding recommendations from the CDBG Citizen Advisory Committee to the Housing Commission, changes to the city’s Citizen Participation Plan and creation of a Policies and Procedures documents. These changes are discussed further below. CDBG FUNDING REVIEW City staff will be taking a resolution to the City Council to transfer CDBG funding review duties to the Housing Commission. March 30, 2023 Item #2 Page 3 of 4 This staff recommendation is due to a number of factors. First, the CDBG funding available for public services is a small, but essential component of the City’s Homelessness Action Plan. The Housing Commission and City Council will review and adopt a funding plan annually to implement priorities in the Homelessness Action Plan, which will allocate limited CDBG service funding, along with the Permanent Local Housing Allocation (PLHA), City Housing Trust Fund and City General Fund. As the Housing Commission will be reviewing the funding plan for City Council’s approval, it makes sense for that commission to look at the funding available for homeless services in its entirety as opposed to just one source. Additionally, since the CDBG Advisory Committee only meets annually it is challenging to identify dates and times for member availability within the availability of the Council Chambers since that room is booked almost daily for standing monthly meetings. CITIZEN PARTICIPATION PLAN AMENDMENTS At the beginning of the Coronavirus pandemic, HUD released a number of programmatic waivers mainly relating to funding caps and public participation. These programmatic waivers were discontinued during FY 2022-23, which does require the city to make changes to the city’s Citizen Participation Plan. An amendment to the Citizen Participation Plan requires a 30-day public review period and City Council approval. Additional edits are needed to address other changes which include: -Remove temporary COVID19 waivers regarding public participation -Revise Committee responsibilities to reflect above -Address changes to federal laws regarding fair housing -Minor edits and clean-up CDBG POLICIES AND PROCEDURES Staff will be preparing a Policies and Procedures document to formalize the annual funding process, city-specific requirements and provide technical assistance to applicants, elected officials and the public. Fiscal Analysis There is no direct fiscal impact associated with this informational report. Environmental Evaluation (CEQA) Pursuant to Public Resources Code Section 21065, this action does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) 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, and therefore does not require environmental review. Public Notification and Outreach This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 24 hours prior to scheduled meeting date. Exhibits None. March 30, 2023 Item #2 Page 4 of 4