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HomeMy WebLinkAbout2023-05-09; City Council; ; Fiscal Year 2023-24 Homelessness Action Plan Funding Plan and Annual Action Plan for the Community Development Block Grant ProgramCA Review _MK___ Meeting Date: May 9, 2023 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Nicole Piano-Jones, Program Manager nicole.pianojones@carlsbadca.gov, 442-339-2191 Chris Shilling, Homeless Services Manager chris.shilling@carlsbadca.gov, 442-339-2284 Subject: Fiscal Year 2023-24 Homelessness Action Plan Funding Plan and Annual Action Plan for the Community Development Block Grant Program District: All Recommended Actions Hold a public hearing and: 1.Receive a presentation on the Fiscal Year 2023-24 Homelessness Action Plan Funding Plan. 2.Adopt a resolution approving the Community Development Block Grant Program Fiscal Year 2023-24 Annual Action Plan and authorizing its submission to the U.S. Department of Housing and Urban Development. Executive Summary The Carlsbad City Council adopted a Homelessness Action Plan on Feb. 7, 2023, to update the city’s goal to reduce homelessness and its effects on the local community and outline the programs and initiatives the city plans to carry out over the next five years. Staff are now presenting the City Council with the Fiscal Year 2023-24 Homelessness Action Plan Funding Plan (Exhibit 2), which identifies the most appropriate funding sources for each of the city’s initiatives and directs resources to where they will have the biggest impact. Staff are recommending a total of $5,001,921 in funding to implement the Homelessness Action Plan, with the funding to be considered starting next month as part of the city’s annual budgeting process. This includes funding for a wide range of services and programs that support the three key areas of focus in the action plan: •Shelter and housing •Outreach and access to services •Public safety May 9, 2023 Item #8 Page 1 of 48 Staff have secured two new grant funding sources--the state Permanent Local Housing Allocation Program and a federal rapid re-housing grant—which will provide an additional $843,252 for the city’s rapid rehousing program and services provided at Carlsbad’s La Posada de Guadalupe Shelter. This will allow the city to expand direct services to combat homelessness in Carlsbad at less cost to the city, with all of the new funds going toward direct services such as short-term rental assistance and shelter services. As a result, staff will ask the City Council to allocate $373,217 less from the General Fund for direct services to relieve homelessness in the fiscal year 2023-24 budget than was budgeted in the current fiscal year. City staff are also presenting the City Council with the Fiscal Year 2023-24 Annual Action Plan for the Community Development Block Grant Program as part of this staff report. (Attachment A to Exhibit 1.) That’s because the Community Development Block Grant (CDBG) funding the city receives from the U.S. Department of Housing and Urban Development (HUD) is an essential revenue source for the city’s Homelessness Action Plan Funding Plan. The City Council must adopt a CDBG annual action plan each year for the city to receive the funding. The action plan is then submitted to HUD for its review and final approval. The CDBG action plan identifies goals, projects and funding allocations for the city’s annual entitlement grant of $545,490 for the 2023-24 fiscal year – of which 15% (approximately $80,000) can be used for direct services to address homelessness. The CDBG action plan assesses community development needs, identifies six priority goals and outlines strategies to help the city meet those goals. Explanation & Analysis Homelessness Action Plan Funding Plan The city’s Homelessness Action Plan includes high-level policy direction and strategies, with the annual resource needs being identified each year in a funding plan. The funding plan determines the most appropriate funding source for each activity to ensure the most effective use of funding and maximize the impact of the activities within the Homelessness Action Plan. Identifying all services in one consolidated funding plan allows city staff to more easily identify gaps, duplication or alternate funding resources. City staff analyzed the strategies and activities identified in the Homelessness Action Plan against resources available and individual grant requirements to identify an appropriate funding plan for FY 2023-24 (Exhibit 2). In the budget for FY 2023-24, which is to be initially presented to the City Council later this month, staff will be recommending the city appropriate $5,001,921 to address homelessness. Funding sources The city has funded its efforts to reduce homelessness through three funding sources: General Fund - The city’s General Fund operating budget covers a wide range of day-to-day city services. It is used for activities not eligible for other funding sources or when service needs exceed available grant funding. Community Development Block Grant Program - This federal program provides annual grants to states, cities and counties to help provide decent housing and a suitable living environment, principally for low- and moderate-income people. May 9, 2023 Item #8 Page 2 of 48 Housing Trust Fund - This fund receives fees that all residential developments greater than six units must pay the city to satisfy their obligation to provide affordable housing. It also receives revenue from other sources, including interest from loans, housing impact fees and interest earned on the fund balance. The funds are designated to support the affordable housing needs of lower-income households. Staff have identified two new funding sources from grant awards that are being added to the funding plan: Permanent Local Housing Allocation Program (PLHA) - This state program was established in 2017 to provide funding for affordable housing. It is funded by a $75 fee levied on certain real-estate transactions and is expected to generate an ongoing revenue source for jurisdictions throughout the state. HUD Rapid Re-housing Grant – These federal grants provide funds for limited-term rental assistance and supportive services to households experiencing homelessness. How funding sources are being used General Fund - $3,975,846 This is a $123,478 decrease from what was budgeted in the current fiscal year. Most of this allocation is for city staff dedicated to reducing homelessness and addressing the impacts of homelessness on the community, specifically the Police Department’s Homeless Outreach Team and the city’s Homeless Services staff. The amount of General Funds included in the funding plan for direct services is $995,825, a decrease of $373,217 from the amount budgeted in the current fiscal year. This is attributable to the new Permanent Local Housing Allocation Program funding source being added to the funding plan. Because of this new funding source, we are able to reduce the General Fund appropriation request to $410,783, which will be reflected in the draft FY 2023-24 Operating Budget being presented to the City Council next month. These funds are for activities identified in the Homelessness Action Plan that were only funded through the current fiscal year, not on an ongoing basis. The amount available and recommended from other eligible funding sources is $1,026,075, as described below. Housing Trust Fund - $101,000 City Council Policy No. 90 for Administration of the Housing Trust Fund identifies six affordable housing priorities in descending order. The fourth priority is homelessness programs. This includes but is not limited to programs and services that provide short-term rental assistance or short-term shelters. Since this fund is intended to increase the supply of housing, city staff recommends using this funding source sparingly for ongoing operations so the fund can be reserved for capital needs. The recommended Homelessness Action Plan Funding Plan includes a limited amount from the Housing Trust Fund, which is consistent with historical allocation and strategic priorities as identified by the City Council. Community Development Block Grant - $81,823 This federal grant funding for public services is limited and heavily regulated with high reporting and monitoring requirements. The city’s annual entitlement grant for FY 2023-24 allows for May 9, 2023 Item #8 Page 3 of 48 $81,823 to be spent on public service activities, such as those provided under the Homelessness Action Plan. The five-year plan for CDBG funds identified homeless services as the highest priority for CDBG service funding. Since the CDBG funding available for public services is such a low amount, but requires a high administrative burden, city staff recommend that CDBG funding be used to fund fewer service contracts than in previous years, but in higher amounts. City staff recommend allocating funding for two contracts for emergency rental assistance which are essential prevention components of the city’s Homelessness Action Plan and will be discussed further in this staff report. Permanent Local Housing Allocation - $375,000 The City Council approved the Permanent Local Housing Allocation Program Funding Plan and Application for Funds last October. This program provides funding to help people who are experiencing homelessness or at-risk of becoming homeless. The Homelessness Action Plan Funding Plan would use the city’s funding from this program for shelter services and rapid re- housing staffing and operational costs. This is the first fiscal year this ongoing funding source will be available. As noted above, including these funds in the funding plan for homeless services allows the city to maintain service levels, while reducing the amount of General Funds used to address homelessness. This funding is recommended for inclusion in the draft Operating Budget for FY 2023-24. HUD Rapid Re-housing grant - $468,252 City staff submitted an application for a Rapid Re-housing grant in August 2022, and HUD recently announced the city will receive over $468,000 for the next fiscal year. This HUD grant will provide additional funding for short-term rental assistance and supportive services, and cannot replace state or local funding sources. Staff recommend including this grant funding in the draft Operating Budget for FY 2023-24. Staff anticipate that this funding should be renewed and be available to the city annually. Services provided The city coordinates and collaborates with many other agencies supporting the needs of people experiencing homelessness. Services such as health care, food assistance, behavioral health and substance abuse services are important in serving the needs of people experiencing homelessness, and are funded through other governmental and philanthropic sources. The city contracts for direct services including prevention, outreach and case management, shelter, benefits and employment, housing assistance, and other critical services to reduce homelessness in our community. The Homelessness Action Plan Funding Plan identifies appropriate funding sources and amounts for these services. The graph below details the percentage of funds spent on direct services: May 9, 2023 Item #8 Page 4 of 48 City staff Most of the recommended allocation from the city’s General Fund is for the Police Department’s Homeless Outreach Team and the city’s Homeless Services staff because most social service and benefit programs are funded through the federal, state and county governments. Funding for city staff dedicated to reducing homelessness and addressing the impacts of homelessness on the community is included in the city’s baseline operating budget. City staff costs include public safety, contract administration, data collection and reporting and coordination of service delivery. The largest portion of this category is allocated to the Homeless Outreach Team, which operates seven days per week and is staffed with two police sergeants and six officers. City services infrastructure A small percentage of funding is allocated to city services infrastructure, which includes encampment and abandoned trash clean up and portable restrooms. A total of $125,000 from the General Fund is included in the city’s FY 2023-24 baseline operating budget for these services. Activities and funding overview Activity Approximate budget Percentage of total funding Housing assistance $1,007,075 20% Shelter $379,825 8% Benefits and employment $320,000 6% Outreach and case management $315,000 6% Subtotal $2,021,900 40% Police Homeless Outreach Team $2,244,593 45% Homeless Services $610,428 12% City services infrastructure $125,000 3% Subtotal $2,980,021 60% Total city resources $5,001,921 100% 15% 19% 16% 50% Direct services Outreach & Case Management Shelter Benefits & Employment Housing Assistance May 9, 2023 Item #8 Page 5 of 48 ■ ■ ■ ■ Community Development Block Grant Program Fiscal Year 2023-24 Annual Action Plan The federal Community Development Block Grant Program provides Carlsbad with a reliable source of funding for programs intended to improve the lives of their low- and moderate- income residents in Carlsbad. The Fiscal Year 2023-24 Annual Action Plan (Exhibit 1, Attachment A) covers the fourth year of the city’s five-year Consolidated Plan, which assesses community development needs, identifies six priority goals and outlines strategies to help the city meet those goals. The City Council approved the following priorities for the CDBG funds 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 lower-income persons Priority 5: Provide fair housing services to residents Priority 6: Plan and administer the Community Development Block Grant program The action plan being submitted for the City Council’s approval details how the city intends to use its CDBG funds to try to achieve these goals. CDBG Annual Plan process The City Council confirmed these priorities on Jan. 10, 2023, authorizing staff to issue a notice of availability of the FY 2023-24 CDBG funds and to accept applications. The application period was approximately six weeks from Jan. 11 to Feb. 22, 2023. Carlsbad is expected to receive a CDBG funding award of $545,490 For FY 2023-24. Of the total allocation amount, the city is limited to spending a maximum of 15% of the grant funds for public service activities and no more than 20% for program administration and fair housing services, which is a requirement of CDBG funding. The remaining funds may be spent on affordable housing, facility improvements and other eligible activities. Funding allocation breakdown Public services (15% max) $81,823 Administration and fair housing (20% max) $109,098 Housing and facilities $354,569 FY 2023-24 entitlement grant $545,490 May 9, 2023 Item #8 Page 6 of 48 CDBG allocation recommendations The Community Development Block Grant Citizen Advisory Committee met on March 30, 2023, to review the applications and staff’s funding recommendations. The committee is charged only with making recommendations on CDBG funding, so it was not presented with the overall Homelessness Action Plan Funding Plan. The consensus of the CDBG Advisory Committee was to distribute CDBG funding to all organizations who applied because its members were unsure the agencies would otherwise be awarded funding through the Homelessness Action Plan Funding Plan (Exhibit 5). Staff, on the other hand, recommend using the other funding sources detailed above (see pages 2- 3) to continue to fund these services at the same or similar funding levels for each organization. Both the committee’s and staff’s recommendations were included in a draft FY 2023-24 Community Development Block Grant Annual Action Plan that was made available for public review from April 10- May 9, 2023 (Exhibit 1, Attachment A). Public services The CDBG funding available for public services is limited and heavily regulated, with significant reporting and monitoring requirements. The city received six applications for public services activities, totaling $204,453, which exceeded the estimated available amount by $122,629. Because the CDBG funding available for public services is such a low amount ($81,823), but requires a high administrative burden, city staff recommend that CDBG funding be used to fund fewer service contracts, but in higher amounts, rather than spreading the limited resources to all applicants. City staff recommend allocating funding for two contracts for emergency rental assistance, which are essential prevention components of the city’s Homelessness Action Plan. This activity is well suited for CDBG reporting, as the client screening already provides the data necessary for CDBG reporting. Considering the limited funding available for public services, city staff made their recommendations based on the following criteria: • Services that are identified in the Homelessness Action Plan • Services located in the City of Carlsbad • Organizations that have a strong capacity to adhere to strict administrative requirements of federal funding Funding fewer agencies (two or three) with meaningful amounts is a recommended practice due to the time-intensive process required to monitor each contract and activity. While the advisory committee recommended distributing the CDBG funding to all the organizations who applied, staff recommend the city continue awarding CDBG funds to cover part of two of the applications while also using money from the city’s General Fund and the state’s Permanent Local Housing Allocation Program to continue to support the remaining organizations, as detailed in the following table: May 9, 2023 Item #8 Page 7 of 48 SUMMARY OF RECOMMENDATIONS - PUBLIC SERVICES FY 2023-24 Funding Organization Program FY 2022- 23 award Request Advisory Committee Staff Brother Benno Rent, utility assistance, motel vouchers, substance abuse $10,073 $11,000 $5,000 $0 CDBG $10,000 General Fund Catholic Charities La Posada de Guadalupe Shelter $12,698 $30,000 $5,000 $0 CDBG $30,000 PLHA 1 (as part of a larger contract) Community Resource Center Homelessness prevention Carlsbad residents $18,698 $71,408 $13,000 $23,000 CDBG Interfaith Community Services Rental assistance, emergency support, basic needs $23,698 $71,345 $43,823 $58,823 CDBG Meals on Wheels Senior meal delivery service $0 $10,000 $5,000 $0 Women’s Resource Center Alternatives to Abuse Emergency Shelter Program $10,000 $10,700 $10,000 $0 CDBG $10,000 General Fund TOTALS $75,167 $204,453 $81,823 $81,823 CDBG funding $50,000 other funding 1 Permanent Local Housing Allocation Community Resource Center and Interfaith Community Services administer homelessness prevention activities identified in the Homelessness Action Plan and have the capacity to meet the strict federal administrative requirements. May 9, 2023 Item #8 Page 8 of 48 Staff are recommending Brother Benno’s, Catholic Charities and Women’s Resource Center not be funded through the CDBG program, but through other funding alternatives identified in the Homelessness Action Plan Funding Plan. Staff’s recommended approach still funds homeless services projects at the FY 2022-23 level with other funding sources and does not increase the amount dedicated for direct homeless services from the General Fund. The only application not recommended for an initial CDBG contract, or alternative funding in the Homelessness Action Plan Funding Plan, is Meals on Wheels. While Meals on Wheels is a valuable service to low-income seniors, this activity is not a service identified in the Homelessness Action Plan. However, city staff have listed Meals on Wheels as the first project to be eligible to receive any mid-year contract funding should additional CDBG funds be received, as discussed later in this report. Program administration and fair housing The city received two CDBG funding applications from outside non-profit agencies for providing fair housing services1, which are CSA San Diego County and Legal Aid Society of San Diego – the current contractor. Based on the limited resources available for fair housing services and program administration, city staff are making recommendations based on the following criteria: • Maximize available CDBG funds to cover administrative expenses • Increase efficiency with fewer contracts • Try to retain current fair housing services provider (Legal Aid Society of San Diego) to offer continuity of service to residents, property owners and managers SUMMARY OF RECOMMENDATIONS - PROGRAM ADMINISTRATION AND FAIR HOUSING FY 2023-24 Funding Organization Program FY 2022-23 award Request Advisory committee Staff CSA San Diego County Fair Housing Program $0 $25,000 $12,000 $0 Legal Aid Society of San Diego Fair Housing Program $23,000 $23,000 $12,000 $23,000 City of Carlsbad Program administration $77,222 $86,098 $85,098 $86,098 TOTALS $100,222 $134,098 $109,098 $109,098 Although CSA San Diego is a worthy organization and provides valuable and critical services to residents throughout the county, staff’s recommendation is to continue service with the Legal 1 The federal Fair Housing Act ensures that people are protected from discrimination on the basis of protected classes (such as race, gender and national origin) when renting or purchasing a home, when applying for a mortgage, seeking housing assistance or engaging in other housing-related activities. Fair housing services include educating residents and housing providers about their rights and obligations under the Fair Housing Act. Fair housing service providers receive fair housing complaints from residents and housing providers and mediate and/or refer cases depending upon the case. Services also include random testing within the rental market to determine if testers experience disparate treatment based upon a protected class. May 9, 2023 Item #8 Page 9 of 48 Aid Society. This recommendation is based upon experience with the current provider, feedback from community partners and residents and overall satisfactory performance. Staff do not recommend splitting the limited available funding between two providers, as the committee recommended, because this will reduce each organization’s capacity to serve residents, requires additional coordination between providers, and generates the need for additional city staff time and resources to be dedicated to two contracts as opposed to one. Affordable Housing & Facility Improvements No applications for CDBG funding were received from outside agencies for facility improvements. A total of $354,569 in CDBG funds is available within this category. Staff recommends allocating this $354,569 to help pay for the city’s Affordable Resale Program and other city-owned affordable rental housing rehabilitation needs. Program income and back-up projects Some CDBG-funded activities generate program income, such as the city’s Affordable Housing Resale Program, which purchases affordable housing to be resold to qualified buyers. The average amount of program income received annually varies, with a five-year average of $438,302. CDBG regulations allow up to 15% of any program income received during the fiscal year to be allocated to public services, and up to 20% allocated to program administration. Program income must be allocated in the same manner as entitlement funds and comply with all CDBG regulations. As a proactive measure to ensure the timely expenditure of funds, staff recommend allocating the program income at the beginning of the fiscal year along with the approval of the FY 2023- 24 CDBG Annual Action Plan, rather than waiting until the program income is received and then having to go through the process of amending the FY 2023-24 CDBG Annual Action Plan mid- year. Staff recommend using the program income received during FY 2023-24 as follows: • Up to 15% for public services activities found in the Community Development Block Grant FY 2023-24 funding options table included as Exhibit 3 • Up to 20% for administration and fair housing activities • The remaining program income received during FY 2023-24 to go to the Affordable Housing Fund Once enough program income is received, it will be allocated according to the priority list shown in Exhibit 3, beginning with Meals on Wheels, the first applicant identified for program income public service funding. Based on the projected amount of program income, staff anticipate enough program income will be received to fund the first few priority projects identified in the funding options table to receive program income. If CDBG funds are made available to a project or applicant that was previously awarded an agreement funded by the city’s General Funds, the city will be reimbursed with CDBG funds for the value of the remaining portion of the contract. The unused portion of the General Fund allocation will be rolled over to the following year, which would decrease the amount of General Funds needing to be requested in the following year. May 9, 2023 Item #8 Page 10 of 48 As an additional measure, staff are recommending including back-up projects in the FY 2023-24 CDBG Annual Action Plan. These back-up projects would be considered if additional funding becomes available, or if approved projects or programs are not making progress in a timely fashion. Back-up projects are projects having been identified as CDBG-eligible, meeting at least one priority of the city’s consolidated plan for CDBG funds and ready-to-fund and likely to be completed in a short period of time. Staff recommend funding as back-up projects city-wide projects that would bring city facilities and infrastructure into compliance with the Americans with Disabilities Act. Community Engagement As a recipient of federal CDBG funds, the city must allow for public participation in the grant funding and reallocation process. The city’s Citizen Participation Plan for the CDBG program describes the ways in which the city will meet those public participation requirements. In accordance with that plan, this public hearing required a 10-day public notice period. The draft FY 2023-24 CDBG Annual Action Plan also required a notice announcing a 30-day public review period. Staff published the notice for these requirements in the Coast News and on the city’s website on April 7, 2023. Past and current subrecipients of CDBG funds and city departments were directly notified of the draft FY 2023-24 CDBG Annual Action Plan availability for public comment. All comments received during the public hearing will be included in the final plan as part of the citizen participation section. Fiscal Analysis As staff reported to the City Council in February, city staff are including funding recommendations for the services identified in the Homelessness Action Plan as a part of the FY 2023-24 draft Operating Budget, as either in the baseline budget with other recurring expenses or as a recommended appropriation. The General Fund recommended appropriation for direct services is $373,217 less than was budgeted in the current fiscal year. With the inclusion of the Homeless Outreach Team and Homeless Services staff, the General Fund recommended appropriation is still $123,478 less than what was budgeted in the current fiscal year. As of the date of this report, the Finance Department was still finalizing the FY 2023-24 Preliminary Budget. There may be minor changes made to the budget scheduled to be presented for City Council consideration on May 23, 2023. City staff will continue to identify opportunities to use grant funding and other outside funding sources for its efforts to combat homelessness, in an effort to reduce funds needed from the city’s General Fund. The recommended Carlsbad Homelessness Action Plan Funding Plan includes $1,026,075 in revenue from sources outside the city’s General Fund. Included in the funding plan are funds from the Community Development Block Grant Program, Permanent Local Housing Allocation Program, the HUD Rapid Re-housing grant and the city’s Housing Trust Fund. May 9, 2023 Item #8 Page 11 of 48 The $545,490 in CDBG funding allocated in this action are federal funds. The program operates on a reimbursement basis, in which the city expends funds for approved activities and is then reimbursed from the U.S. Department of Housing and Urban Development. Options The funding for the Homelessness Action Plan Funding Plan is to be presented to the City Council next month, as part of the budget for FY 2023-24. Staff provide the following options on the Annual Action Plan for the Community Development Block Grant Program for the City Council’s consideration: 1. Approve the FY 2023-24 Community Development Block Grant Annual Action Plan with staff recommended activities and authorize its submission to the U.S. Department of Housing and Urban Development. Pros • Allows for the timely execution of agreements and provision of services to Carlsbad residents • Provides adequate funding levels for services • Allows for the timely execution of agreements and provision of services to Carlsbad residents • Allows the city to comply with CDBG requirements • Increases administrative efficiency for both city staff and nonprofit agencies Cons • None identified 2. Approve the FY 2023-24 Community Development Block Grant Annual Action Plan with the Community Development Block Grant Advisory Committee’s recommended activities and authorize the submission to the U.S. Department of Housing and Urban Development. Pros • The city remains eligible to receive Community Development Block Grant funds Cons • Does not provide adequate funding levels for services • Increases administrative burden for both city staff and nonprofit agencies Next Steps The FY 2023-24 Community Development Block Grant Annual Action Plan will be submitted to HUD by the statutory requirement of May 17, 2023 (45 days before beginning of new fiscal year). Funding agreements with outside non-profit organizations will be executed after HUD has committed funding. Commission and committee review The city has two appointed advisory panels that make advisory recommendations to the City Council on Housing Trust Fund and CDBG funding. The Housing Commission reviews housing and homeless matters and Housing Trust Fund recommendations, while the Community Development Block Grant Advisory Committee reviews CDBG allocations. In the coming months, staff will be presenting an item to the City Council recommending that the CDBG funding review and recommendation duties transfer from the Community Development Block Grant Advisory Committee to the Housing Commission. This recommendation, if approved, would streamline the May 9, 2023 Item #8 Page 12 of 48 review process and allow staff’s recommendations for the use of funds from CDBG and the Housing Trust Fund to be considered together, as a part of the annual Homelessness Action Plan Funding Plan. 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 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. Exhibits 1. City Council resolution 2. Homelessness Action Plan Funding Plan 3. FY 2023-24 Community Development Block Grant Funding Options Table 4. Housing Commission resolution No. 2023-006 5. Community Development Block Grant Advisory Committee Resolution No. 2023-001 May 9, 2023 Item #8 Page 13 of 48 RESOLUTION NO. 2023-124 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE FISCAL YEAR 2023-24 CDBG ANNUAL ACTION PLAN, AND AUTHORIZING SUBMISSION TO THE U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the primary objective of the federal Community Development Block Grant (CDBG) 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 principally serve persons of low and moderate income; and WHEREAS, the CDBG program is a fully funded federal program and does not impact the General Fund;and WHEREAS, to be eligible for CDBG funds, the applicant jurisdiction must adopt an Annual Action Plan, which must be reviewed and approved by the Department of Housing and Urban Development; and WHEREAS, the City Council of the City of Carlsbad, California has considered the city's Annual Action Plan for the period July 1, 2023 through June 30, 2024, as required for the city's CDBG program ("fiscal year 2023-24 CDBG Annual Action Plan"); and WHEREAS, the draft fiscal year 2023-24 CDBG Annual Action Plan was released for a 30-day public review period which began on April 11, 2023 and concluded on May 9, 2023; and WHEREAS, public comments from the public review period and the public hearing on May 9, 2023, if any, have been addressed through written response and included in the fiscal year 2023-24 CDBG Annual Action Plan; and WHEREAS, the City Council of the City of Carlsbad, California has taken all testimony into account in considering the fiscal year 2023-24 CDBG Annual Action Plan, as required for the city's CDBG program; and WHEREAS, the City Council of the City of Carlsbad, California, approves the fiscal year 2023-24 CDBG Annual Action Plan and authorizes submittal of the city's CDBG program to the U.S. Department of Housing and Urban Development; 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. Exhibit 1 May 9, 2023 Item #8 Page 14 of 48 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 fiscal year 2023-24 CDBG Annual Action Plan (Attachment A) is hereby approved by the City Council. 3.That, on the city's behalf, the City Manager, or designee, is authorized to submit the city's fiscal year 2023-24 CDBG Annual Action Plan to the U.S. Department of Housing and Urban Development for approval and to execute all appropriate related documents for the submission. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 9th day of May, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. KEITH BLACKBURN, Mayor l SHERRY FREISINGER, City Clerk�•v (SEAL) May 9, 2023 Item #8 Page 15 of 48 ~ Annual Action Plan 2023 1 OMB Control No: 2506-0117 (exp. 09/30/2021) Community Development Block Grant Program Fiscal Year 2023-24 Annual Action Plan Carlsbad, California Prepared By: Housing Services Division City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attachment A May 9, 2023 Item #8 Page 16 of 48 (City of Carlsbad Annual Action Plan 2023 2 OMB Control No: 2506-0117 (exp. 09/30/2021) Executive Summary AP-05 Executive Summary - 91.200(c), 91.220(b) 1. Introduction As an entitlement jurisdiction under the U.S. Department of Housing and Urban Development (HUD), the City of Carlsbad (“City”) receives federal funds in proportion to its population size, concentration of poverty, and other socioeconomic and demographic data. To receive such funds, the City of Carlsbad must submit a Consolidated Plan every five years to HUD and an Annual Action Plan each year. The Annual Action Plan document is the city’s plan to carry out the expenditure of funds as approved by the City Council. This year the Annual Action Plan covers the Fiscal Year (FY) 2023-2024. 2. Summarize the objectives and outcomes identified in the Plan HUD’s Office of Community Planning and Development maintains the following approaches to developing viable communities: (1) providing decent housing; (2) providing a suitable living environment; and (3) expanding economic opportunity. The city established the following priorities for the 2020-2025 Consolidated Plan period to achieve HUD’s vision: • 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 CDBG program. These priorities represent the diverse needs of the city which emerged through the Consolidated Plan community engagement and development process. This process includes qualitative and quantitative data gathered through citizen participation, market analysis, and assessment of needs. As a result, affordable housing was identified as the top priority of residents who participated in the Community Needs Survey and was echoed by individuals who participated in the community meetings. Carlsbad is one of the least affordable cities in North County San Diego; the identification of affordable housing as a top priority by residents reflects this lived reality. Homelessness in the city is directly related to the high cost and lack of housing available thus preventing and reducing homelessness is a top priority as well. Affordable housing and serving the homeless population continue to be the top priorities that the city continues to work on. The goals identified above address the uses of CDBG funds in Carlsbad and will be leveraged by other funding sources. 3. Evaluation of past performance The city has successfully implemented housing, homelessness, and public facilities activities in the previous Action Plan cycle, impacting the lives of thousands of Low-Moderate-Income (LMI) residents. It is anticipated the city and its partners will continue to have an impact on residents through collaborative efforts. The following represent some of the achievements in the prior FY 2021-22 Action Plan: May 9, 2023 Item #8 Page 17 of 48 Annual Action Plan 2023 3 OMB Control No: 2506-0117 (exp. 09/30/2021) • Acquisition of two affordable housing units anticipated to serve two LMI households • Approximately 145 Carlsbad residents served through fair housing services • Approximately 70 Carlsbad residents served through the homeless overnight shelter • Approximately 1,044 Carlsbad residents served through homelessness prevention public services • Partnered with approximately 4 community partners to provide funding Full program outcomes are reported on an annual basis through Consolidated Annual Performance Evaluation Reports (CAPERs). These reports are provided to the general public for public comment and posted on the city’s website for public access. 4. Summary of Citizen Participation Process and consultation process The city’s community participation process was informed by the Citizens Participation Plan (CPP), which guides the implementation of a community engagement process and notification of community meetings and public hearings. To facilitate as much community participation as possible, the city held one CDBG Advisory Committee meeting, one public hearing (one more planned in May 2023), and consulted with various organizational stakeholders including community planners, businesses, community advocates, and other city departments. 5. Summary of public comments Across all events the general public was invited to speak and participate on the Annual Action Plan and no comments were received. 6. Summary of comments or views not accepted and the reasons for not accepting them All comments or views would have been accepted and responded to. 7. Summary The city’s Action Plan sets forth the actions, activities, and funding levels for the program period of 2023-2024 and satisfies the statutory requirements for receiving CDBG funds. More than merely meeting requirements, however, the city is committed to providing every opportunity for residents and stakeholders in Carlsbad to participate in the Action Plan process and expanding opportunities for its LMI populations to thrive. This Action Plan and the associated community engagement process are indicative of that commitment. May 9, 2023 Item #8 Page 18 of 48 Annual Action Plan 2023 4 OMB Control No: 2506-0117 (exp. 09/30/2021) PR-05 Lead & Responsible Agencies - 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency CDBG Administrator CARLSBAD Housing & Homeless Services Department Table 1 – Responsible Agencies Narrative The City of Carlsbad, Housing & Homeless Services Department is the lead agency responsible for the preparation and administration of the Consolidated Plan, corresponding Annual Action Plans and Consolidated Annual Evaluation Reports and the CDBG program. The County of San Diego is the lead agency for HOME Investment Partnership funding, which the city utilizes as a member of the County’s HOME Consortium. Consolidated Plan Public Contact Information Nicole Piano-Jones Program Manager City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 98008 (442) 339-2191 Nicole.pianojones@carlsbadca.gov May 9, 2023 Item #8 Page 19 of 48 Annual Action Plan 2023 5 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-10 Consultation - 91.100, 91.200(b), 91.215(l) 1. Introduction The City of Carlsbad has long communicated and collaborates with many governmental and nongovernmental agencies in the region to address the needs of the city’s LMI population. The city’s formalized collaborative efforts include: • Member of the County of San Diego’s HOME Consortium • Supporter of Alliance for Regional Solutions, North County San Diego’s collaborative network of homelessness service providers • Participant in the Community Development Block Grant Administrators meetings • Member of the San Diego Regional Alliance for Fair Housing (SDRAFFH) • Staff works closely with the County of San Diego Health and Human Services Agency as well as nonprofit health and mental health providers Other nongovernmental agencies the city works closely with include but are not limited to: Interfaith Community Services, Women’s Resource Center, Brother Benno, Community Resource Center, and Meals on Wheels. The city encourages agencies to work together to leverage resources and prevent duplication of services for the betterment of the people being served. The city’s CDBG program also consults with the Housing Commission and CDBG Citizens Advisory Committee to inform and enhance the coordination of projects/activities, approaches, and strategies of the CDBG program. The city is committed towards working with additional and new stakeholders to improve efficiencies, discuss new approaches, and build more partnerships. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)). The City of Carlsbad serves as the city’s public housing agency whereby the Section 8 Rental Assistance Program is implemented and administered daily. The city actively participates in a variety of coalitions made up of affordable housing and community development coordinators from all 18 incorporated cities and various nonprofit organizations in the San Diego region. These strong partnerships result in coordination of activities, sharing of information, and joint operation of specific HUD programs. These coalitions include: CDBG Coordinators Group; County of San Diego HOME Consortium; Regional Continuum of Care Council; California Finance Officers’ Group; California Association of Housing Authorities; National Association of Housing Redevelopment Officials; Housing Authorities within the County of San Diego; participating cities in the First-Time Homebuyer Program; and notably, the city engages and contributes as a member of the San Diego Regional Alliance for Fair Housing (www.sdfairhousing.org). Also included is the San Diego Housing Federation, made up of affordable housing organizations and lenders that sponsor programs and activities in partnership with the County of San Diego and cities in the region. May 9, 2023 Item #8 Page 20 of 48 Annual Action Plan 2023 6 OMB Control No: 2506-0117 (exp. 09/30/2021) Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The City of Carlsbad is an active member of the San Diego Regional Continuum of Care Council (RCCC) which is a large cooperative community group consisting of representatives of the 18 cities within the County of San Diego, nonprofit homeless providers and other interested parties. The RCCC regularly meets to identify gaps in homeless services, establish funding priorities, and to pursue an overall systemic approach to addressing homelessness. The RCCC makes recommendations for allocation of funds available under the Emergency Shelter Grants (ESG) program. The representatives seek ways to improve collaboration and share scarce resources. The consensus approach from service providers is to emphasize prevention of homelessness first, then transitional housing and support services for individuals and families, and finally support for chronically homeless individuals. Facilities in proximity to Carlsbad serving this population include the Brother Benno Foundation providing transitional housing for men in recovery from substance abuse, the Women’s Resource Center which provides emergency safe shelter for victims of domestic violence, Catholic Charities’ La Posada de Guadalupe men’s shelter which targets homeless men, Community Resource Center which provides emergency safe shelter for victims of domestic violence, and Casa de Amparo which provides targeted support for children and youth who have been removed from their homes by Child Protective Services. Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Carlsbad does not receive ESG (Emergency Shelter Grant) funds from HUD. The Regional Continuum of Care Consortium (RCCC) coordinates efforts to address homelessness in the San Diego region and is the HUD designated Continuum of Care (CoC) for the region. The RCCC manages the application for, receipt and distribution of federal and other grant funds. The Regional Task Force on the Homeless (RTFH) was selected by the RCCC to manage the region’s homeless management information system (HMIS). This system coordinates the region’s AHAR efforts and is working to combine data from multiple consortium area systems into one data warehouse. The HMIS produces quarterly and annual reports that assist in monitoring key indicators to assess needs and progress on strategic goals pertaining to homelessness. In 2010, a Data Advisory Committee was created to provide community-based oversight, system evaluation, and comprehensive HMIS planning. 2. Agencies, groups, organizations and others who participated in the process and consultations May 9, 2023 Item #8 Page 21 of 48 Annual Action Plan 2023 7 OMB Control No: 2506-0117 (exp. 09/30/2021) Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization CDBG Advisory Committee Agency/Group/Organization Type Civic Leaders Business and Civic Leaders What section of the Plan was addressed by Consultation? Community Development Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? This advisory group comprised of civic leaders was asked to take the needs of the community into consideration and think about how the needs could be served with the funding that is available. Participation from this advisory group provided staff with insight into the needs of the city and where additional improvement should be focused on. Staff met with the advisory group on three different occasions and invited the general public to participate in the discussion. 2 Agency/Group/Organization City of Carlsbad Agency/Group/Organization Type Other government - Local Community Development Financial Institution What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? City staff with specialties in affordable housing and homeless services were consulted to ensure that programs and activities align with the community needs. 3 Agency/Group/Organization Carlsbad Housing Agency Agency/Group/Organization Type PHA What section of the Plan was addressed by Consultation? Public Housing Needs May 9, 2023 Item #8 Page 22 of 48 Annual Action Plan 2023 8 OMB Control No: 2506-0117 (exp. 09/30/2021) Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The Carlsbad Housing Authority was consulted to ensure enhanced coordinated with services and potential collaboration. Identify any Agency Types not consulted and provide rationale for not consulting In addition to the agencies listed the city consulted with the CDBG local administrators group comprised of the other local jurisdictions in the San Diego County. The city also consulted with and outreached to past, present, and potential future local service providers to understand the challenges facing non- profits and the accomplishments from the past year to understand what can be done or should be done with CDBG assistance. No agency or service was turned away for comments or participation. Other local/regional/state/federal planning efforts considered when preparing the Plan Table 3 - Other local / regional / federal planning efforts Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Regional Continuum of Care The city's homeless needs are addressed by the CoC strategy. Ten Year Plan to End Homelessness Regional Continuum of Care The city's homeless needs are addressed by the Ten-Year Plan to End Homelessness. City of Carlsbad Housing Element City of Carlsbad Aligns with the strategic plan goal of continuing to create affordable housing units. City of Carlsbad General Plan City of Carlsbad Aligns with the strategic plan goal of improving the quality of life for the city's low- and moderate-income community. May 9, 2023 Item #8 Page 23 of 48 Annual Action Plan 2023 9 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-12 Participation - 91.401, 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting Citizen participation is one of the most important components of the Action Plan process. To solicit public input during the development of this Action Plan, the City of Carlsbad held one CDBG Advisory Committee meeting for residents, local housing and services providers, as well as community stakeholders. The first public hearing before the City Council was also held on January 10, 2023, to approve the funding plan and reaffirm the Consolidated Plan Priorities. The second and final public hearing for the approval of the FY 2023-24 program year will be held on May 9, 2023. A public notice for the Jan. 10, 2023, public hearing was published on Dec. 9, 2022. The public notice for the Mar. 30, 2023, CDBG advisory committee meeting was published on Mar. 24, 2023. The last public notice was published on Apr. 7, 2023, for the final public hearing for the adoption of the Annual Action Plan on May 9, 2023. Citizen Participation Outreach Table 4 – Citizen Participation Outreach Mode of Outreach Target of Outreach Summary of response/ attendance Summary of comments received Summary of comments not accepted and reasons Public Meeting Non- Targeted/ Broad Community Public service providers were in attendance and spoke. No members from the general public spoke. All comments were received. All comments were received. Public Hearing Non- Targeted/ Broad Community The general public was invited to listen and participate. Although many residents attended the public hearings no members provided comments. No comments received. No comments were received. News Paper Ad Non- Targeted/ Broad Community n/a No comments were received from public notices published on Dec. 9, 2022, Mar. 24, 2023, and Apr. 7, 2023. Attachment 1 contains Citizen participation materials. May 9, 2023 Item #8 Page 24 of 48 Annual Action Plan 2023 10 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 May 9, 2023 Item #8 Page 25 of 48 Annual Action Plan 2023 11 OMB Control No: 2506-0117 (exp. 09/30/2021) Anticipated Resources Program Source of Funds Uses of Funds Expected Amount Available Year 4 Expected Avail. Remainder of ConPlan Narrative Description Annual Allocation: Program Income: Prior Year Resources: Total: CDBG public - federal Admin/ Planning Public Improv. Public Services Acquisition $545,490 $519,000 $0 $1,064,490 $545,490 If city receives approx. $500,000 annually, approx. $2,500,000 will be available for the 5- year period not including program income. FY 2020 - $536,522 FY 2021 - $527,154 FY 2022 - $501,113 FY 2023 - $545,490 Table 5 - 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 the 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 the 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. May 9, 2023 Item #8 Page 26 of 48 Annual Action Plan 2023 12 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Goals and Objectives AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information Table 6 – Goals Summary Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome High Priority Increase & preserve affordable housing 2023 2024 Affordable Housing Citywide benefit Increase Affordable Housing CDBG: $354,569 Households High Priority Prevent & reduce homelessness 2023 2024 Homeless Services Citywide benefit Prevent & Reduce Homelessness CDBG: $81,823 Persons Medium Priority Supportive Services for LMI & Special Needs 2023 2024 Non- Homeless Special Needs Citywide benefit Social Services LMI & Special Needs CDBG: $0 Persons Medium Priority Improve Facilities 2023 2024 Non-Housing Community Development Citywide benefit Public Improvements CDBG: $0 Persons Medium Priority Provide Fair Housing 2023 2024 Non-Housing Community Development Citywide benefit Fair Housing CDBG: $23,000 Persons Low Priority Program Administration 2023 2024 N/A Citywide benefit N/A CDBG: $86,098 N/A Goal Descriptions 1 Goal Name Increase and preserve affordable housing Goal Description Increase and preserve affordable housing opportunities for low-and-moderate income households 2 Goal Name Prevent and reduce homelessness Goal Description Prevent and reduce homelessness 3 Goal Name Supportive services for LMI and special needs Goal Description Strengthen support services for the residents with special needs 4 Goal Name Improve Facilities Goal Description Improve and provide facilities to serve lower income persons 5 Goal Name Provide Fair Housing Goal Description Provide fair housing services to residents May 9, 2023 Item #8 Page 27 of 48 Annual Action Plan 2023 13 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-35 Projects - 91.420, 91.220(d) Introduction For FY 2023-24, the City of Carlsbad will receive $545,490 in CDBG funding. Based upon the expected closing dates for three affordable resale program units, staff anticipates that the City will receive approximately $519,000 in program income. PROGRAM INCOME & BACK-UP PROJECTS With the expected program income expected to be approximately $519,000, fund up to 15% of program income received during FY 2023-24 to priority public service activities listed below, fund up to 20% of program income during FY 2023-24 to approved CDBG funded administration and fair housing activities, and the remaining program income received during FY 2023-24 to approved CDBG funded affordable housing activities. Priority Public Services Projects – Program Income A maximum of 15% of all program income received during FY 2023-24 will be allocated to public services activities in the following order and amount: 1. Meals on Wheels - up to $10,000 2. Women’s Resource Center - up to $10,700 3. Brother Benno - up to $11,000 4. Catholic Charities - up to $30,000 5. Community Resource Center - up to $48,408 6. Interfaith Community Services - up to $12,522 Back-up projects are projects having been identified as CDBG eligible, meeting at least one Consolidated Plan Priority, and intended to be ready-to-fund and complete in a short period of time. Back-up projects are only to be considered only if additional funding becomes available or if approved projects or programs are not proceeding in a timely fashion. For FY 2023-24, consider projects that would bring city facilities and infrastructure into compliance with the Americans with Disabilities Act as back-up projects. Table 7 – Project Information # Project Name FY 2023 CDBG Funding 1 Catholic Charities $0 (Priority #4 to be funded with program income) 2 Interfaith Community Services $58,823(Priority #6 to be funded with program income) 3 Community Resource Center $23,000 (Priority #5 to be funded with program income) 4 Women’s Resource Center $0 (Priority #2 to be funded with program income) 5 Brother Benno $0 (Priority #3 to be funded with program income) 6 Meals on Wheels $0 (Priority #1 to be funded with program income) 7 Legal Aid Society of San Diego $23,000 8 Center for Social Advocacy $0 9 Carlsbad Housing Fund $354,569 10 City Administration $86,098 11 Back-up Projects – ADA Compliance See narrative – funded amount TBD Describe the reasons for allocation priorities and 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. May 9, 2023 Item #8 Page 28 of 48 Annual Action Plan 2023 14 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 the COVID-19 pandemic is moving towards an endemic, the CDBG subrecipients indicated that they continue to serve higher-risk populations. 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 housing assistance due to confusion regarding the rights of tenants and homeowners with mortgages in relationship to the new eviction moratoriums. May 9, 2023 Item #8 Page 29 of 48 Annual Action Plan 2023 15 OMB Control No: 2506-0117 (exp. 09/30/2021) 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: $0 (Priority #4 to be funded with program income) 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 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 90 individuals Location Description 2476 Impala Drive Carlsbad, CA 92010 Planned Activities FY 2023 CDBG funds will be spent on salaries/wages 2 Project Name Interfaith Community Services Target Area Citywide benefit Goals Supported Prevent and reduce homelessness. Needs Addressed Prevent and Reduce Homelessness Funding CDBG: $58,823 (Priority #6 to be funded with program income) Description Low-income Carlsbad residents will benefit from the supportive programs including emergency rental assistance, basic needs and employment assistance services. Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 20 families for rental assistance, 200 individuals with basic needs and employment assistance Location Description Carlsbad Service Center, 5731 Palmer Way Suite A, Carlsbad, CA 92010 Planned Activities Rental assistance to prevent or immediately reverse homelessness, basic needs such as emergency food and hygiene kits and employment assistance. 3 Project Name Women’s Resource Center Target Area Citywide benefit Goals Supported Prevent and reduce homelessness. Needs Addressed Prevent and reduce homelessness. Funding CDBG: $0 (Priority #2 to be funded with program income) May 9, 2023 Item #8 Page 30 of 48 Annual Action Plan 2023 16 OMB Control No: 2506-0117 (exp. 09/30/2021) Description WRC shelter offers a safe environment for survivors and their children to rest, recuperate, and plan next steps. 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 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 25 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: $0 (Priority #3 to be funded with program income) Description Brother Benno's serves the neediest in North County San Diego, including Carlsbad residents. The agency operates two shelters for women, a twelve-step residential recovery program-for men, and a hot meal and emergency food distribution program. Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 40 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: $354,569 May 9, 2023 Item #8 Page 31 of 48 Annual Action Plan 2023 17 OMB Control No: 2506-0117 (exp. 09/30/2021) Description The City of Carlsbad established a Housing Fund for the purpose of developing affordable housing for lower -income households and/or purchasing affordable and market-rate housing units to be resold to low-income households. Activities include purchasing existing affordable units as they become available, acquisition of vacant land or underutilized land for new development, other property acquisition for affordable housing purposes, including housing for the homeless, support existing rental units with rehabilitation efforts, and/or partnerships with an affordable housing developer for property acquisition for low-income affordable housing development. Target Date 6/30/2024 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 or market rate condominiums to be resold to low-income households, acquire vacant or underutilized land for new development, support existing rental units with rehabilitation efforts, and/or partnerships with affordable housing developers for property acquisition for low-income affordable housing development. 6 Project Name Program Administration Target Area Citywide benefit Goals Supported Increase & preserve affordable housing - Prevent & reduce homelessness. Supportive Services for LMI & Special Needs - Improve Facilities - Provide Fair Housing Needs Addressed Planning and Administration Funding CDBG: $86,098 Description The Housing Services Division administers the city's CDBG funded programs. Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities citywide Location Description citywide Planned Activities Administration, 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 Funding CDBG: $23,000 May 9, 2023 Item #8 Page 32 of 48 Annual Action Plan 2023 18 OMB Control No: 2506-0117 (exp. 09/30/2021) Description LASSD 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 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 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 146 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: $23,000 (Priority #5 to be funded with program income) Description 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. CRC’s programs are designed to assist participants to successfully navigate their paths of safety, stability & self-sufficiency. Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 30 persons Location Description 1065 Carlsbad Village Drive, Carlsbad CA, 92008 Planned Activities Homeless prevention through emergency rental assistance and wrap around services 9 Project Name Meals on Wheels of Greater San Diego Target Area Citywide benefit Goals Supported Supportive Services for LMI and Special Needs Needs Addressed Supportive Services for LMI and Special Needs Funding CDBG: $0 (Priority #1 to be funded with program income) Description Meals on Wheels is a meal delivery service for low income and homebound seniors. Meals on Wheels also provides wellness checks and referrals for other social services. Meals are provided on a sliding scale based on need and at discounted price Target Date 6/30/2024 May 9, 2023 Item #8 Page 33 of 48 Annual Action Plan 2023 19 OMB Control No: 2506-0117 (exp. 09/30/2021) Estimate the number and type of families that will benefit from the proposed activities 78 clients Location Description 930 Boardwalk # C, San Marcos, CA 92078 Planned Activities Food purchases and packaging expenses 10 Project Name Fair Housing CSA San Diego County Target Area Citywide benefit Goals Supported Provide Fair Housing Needs Addressed Fair Housing Funding CDBG: $0 Description CSA San Diego County will provide fair housing services to all Carlsbad residents. CSA promotes housing opportunities for all persons regardless of race, religion, sex family size, familial status, ancestry, national origin, color, or disability. Via the telephone, CSA staff will provide direct assistance to those in need. Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 95 clients Location Description 327 Van Houten Ave, El Cajon CA 92020 Planned Activities Funds will be used to provide fair housing services for residents including advocacy, education, and mediation 11 Project Name Back-up Project – ADA Compliance Target Area Citywide benefit Goals Supported Improve Facilities Needs Addressed Public improvements Funding CDBG: Back-up project only. To be funded in the event that funds become available through excess program income or other projects experience delay and/or cancel Description Projects located city-wide that are shovel ready and bring the facility into compliance with Americans with Disabilities Act. Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities Based upon project(s) - to be determined Location Description City-wide Planned Activities Funds will be used to pay for curb-cuts, removal of barriers, and other items to bring public facilities and infrastructure into compliance with the Americans with Disabilities Act May 9, 2023 Item #8 Page 34 of 48 Annual Action Plan 2023 20 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-50 Geographic Distribution - 91.420, 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Through the city's inclusionary housing program, the city intends to develop lower-income affordable housing units throughout Carlsbad, thereby reducing the impact of housing on any one area. City staff will be responsible for initiating or facilitating the development of housing through agreements with local for-profit and non-profit housing developers (including agreements to provide city assistance) and through managing/monitoring the affordability of these housing units in future years. City resources for the provision, construction, or improvements to public services or facilities to meet the community development needs will also be distributed throughout the city. Carlsbad will consider the allocation of resources to public service organizations located outside of the city limits in those instances where such public services provide adequate access to Carlsbad residents. Geographic Distribution Target Area Percentage of Funds n/a n/a Table 8 - Geographic Distribution Rationale for the priorities for allocating investments geographically There are currently no targeted areas within the city where CDBG funds are focused towards. CDBG funds are targeted towards Carlsbad residents who are low-income meeting eligibility requirements of the program. Recipients of these federal funds reside throughout the city. May 9, 2023 Item #8 Page 35 of 48 Annual Action Plan 2023 21 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-85 Other Actions - 91.420, 91.220(k) Introduction Priority Needs established in the FY 2020-2025 Five-Year Consolidated Plan, which form the basis for establishing objectives and outcomes in the FY 2023-2024 Action Plan, are as follows: High Priority • Increase and Preserve Affordable Housing • Prevent and Reduce Homelessness Medium Priority • Provide Supportive Services to Low Income and Special Needs Groups • Facility Improvements • Provide Fair Housing Services to Residents Low Priority • Planning and Administration Actions planned to address obstacles to meeting underserved needs Limited financial resources are the biggest obstacle to meeting underserved needs in Carlsbad. The city's policy is to leverage, to the maximum extent feasible, the funds available in providing public services and affordable housing. The city supports the use of CDBG and Housing Trust funds for development activities and "gap financing" by private and non -profit entities to develop affordable housing. Actions planned to foster and maintain affordable housing In order to foster and maintain affordable housing for lower income households, the city will use CDBG funds to assist with the development of affordable multi-family housing. The city also fosters development of affordable housing through implementation of its Inclusionary Housing Ordinance, which requires that 15 percent of all housing units constructed in the city be affordable to lower and moderate-income households. For projects proposing seven units or less, a fee is collected and deposited into the city' s Housing Trust Fund to be used to foster and maintain affordable housing. Actions planned to reduce lead-based paint hazards The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. This strategy requires jurisdictions to focus on implementing practical changes in older housing to protect children from lead hazards. The city has identified two primary strategies to reduce lead-based paint hazards in Carlsbad to be carried out during the FY 2020-2025 Consolidated Plan period. Strategy 1: Integrate lead hazard evaluation and reduction activities into all housing programs. Currently, many federal programs have requirements for evaluating and reducing lead hazards. For those State and local housing and community development programs, the city will pursue the following activities to evaluate and reduce lead hazards: • Require inspection for and abatement of lead-based paint hazards as a requirement of all residential rehabilitation programs when children under the age of seven reside in the dwelling unit and have been identified with elevated blood levels; • Include lead-based paint hazard abatement as an eligible activity for funding under the city's CDBG program and include minimum lead-based paint abatement requirements to housing quality standards which must be met; and • Provide all eligible applicants of housing programs, with information regarding lead-based Strategy 2: Support the development of comprehensive health programs for the screening of children May 9, 2023 Item #8 Page 36 of 48 Annual Action Plan 2023 22 OMB Control No: 2506-0117 (exp. 09/30/2021) for lead poisoning and a follow-up on those identified as lead poisoned. In accordance with Center for Disease Control (CDC) guidelines, all children found to have elevated blood levels (above 20 micrograms per deciliter) should both be provided with public health management services and be tested every three months. The County of San Diego's Department of Health Services currently provides this service. The city encourages the abatement of lead-based paint hazards once a child under the age of seven is identified as having elevated blood levels. CDBG funds may be used to help the city or other organizations in developing a comprehensive approach to lead-poisoning prevention. Actions planned to reduce the number of poverty-level families The city currently has various programs and policies in place to help reduce the number of households with incomes below the poverty line. These policies and programs aim to improve coordination and collaboration among city departments; and nonprofit agencies which provide health and social services, employment training, legal assistance, and other support services for low-income persons. The city will pursue the following programs during FY 2023-24 to reduce poverty in Carlsbad: 1. Inclusionary Housing Ordinance 2. Housing Reserve Fund 3. Affordable Housing Trust Fund 4. Section 8 Vouchers 5. Village Revitalization Partnership Program 6. Economic Development Strategic Plan Actions planned to develop institutional structure There are many organizations within the County of San Diego that provide housing or supportive services to Carlsbad residents. These agencies tend to be smaller organizations with many using volunteers. The city will continue to encourage greater efforts to make use of available housing, social service and mental and other health care resources. The city can also help strengthen the housing and service delivery system by helping to educate such organizations and agencies regarding the resources that are available. Actions planned to enhance coordination between public and private housing and social service agencies The city proposes to strengthen, coordinate and integrate the governmental institution, non-profit and private delivery systems discussed in the FY 2020-25 Consolidated Plan and FY 2023-24 Action Plan through on-going "strategy and development" meetings between city staff, private developers, non- profit organizations and various financial institutions. Through these meetings, the city will continue to identify the constraints to affordable housing and develop/implement programs to mitigate them. The key to successful development of affordable housing for lower-income households in Carlsbad is communication, flexibility, and adequate funding. The city will communicate openly with private developers and service providers as well as make every effort to maintain the flexibility in policies and/or ordinances necessary to create public/private housing development partnerships. May 9, 2023 Item #8 Page 37 of 48 Annual Action Plan 2023 23 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 Approx. $519,000 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan 3. The amount of surplus funds from urban renewal settlements 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. 5. The amount of income from float-funded activities Total Program Income Approx. $519,000 Other CDBG Requirements 1. The amount of urgent need activities May 9, 2023 Item #8 Page 38 of 48 May 9, 2023 Item #8 Page 39 of 48 The Coast N ews Decreed A Legal Newspaper by the Superior Court of San Diego County. Mail all correspondence regarding public notice advertising to: The Coast News P.O. Box 232550 Encinitas, CA 92023 (760) 436-9737 Proof of Publication ST A TE OF CALIFORNIA, ss. COUNTY OF SAN DIEGO, I am a citizen of the United States and a resident of the county aforesaid. I .am over the age of eighteen years, and not a party to or interested in the above-entitled matter. I am principal clerk of the printer of T~e Coast News, a newspaper printed and published weekly and which newspa?~r has been adjudged a newspaper of general circulation fo_r !he cities_ of Carmel Valley, Del Mar, Solana Beach,,_ Encm1tas/Card1ff, Carlsbad, Oceanside, Rancho Santa Fe,, 'Vista, San Marcos, Escondido, San Diego, the County of San Diego and the ~ou~ty Judicial District by the Superior Court of the State of Cal!forma, County of San Diego (8/4/94, #677114, B2393, P396); and th~t the notice, of which the annexed is a printed copy, has been pu~hshed in, each regular and entire issue of said newsp~per and not m any supplement thereof on the following dates, to-wit: March 24. 2023 I certify under penalty of pe1jury that the foregoing is true and correct. Executed at Encinitas, County of San Diego, State of California on this 24th of March 2023. / Space above for Court Clerk's Filing Stamp CITY O.F CARLSBAD NOTICE OF PUBLIC MEETING NOTICE IS HEREBY GIVEN that the Community Development Block Grant Citizen's Advisory Committee of the City of Carlsbad will hold a public meeting at the Coun- cil Chamber, 1200 Carlsbad Village D.rive, Carlsbad, California, at 2 p.m. on Thursday, March 30, 2023. Those persons wishing to speak are cordially invited to attend the public meeting. Copies of the staff report will be available by Thursday, March 23, 2023, on the city's website: s:/ .earl badca. a ci • a mee · s-a endas/hOards-commissions/ cdbg-commission. Tiie meeting can be viewed online at https://www.carlsbadca.gov/ city-hall/meetings-agendas or on the city's cable channel. In addition, written comments may be submitted to the Housing & Homeless Services Department at or prior to the meeting via U.S. Mail to the attention of Housing & Homeless Services Department, 1200 Carlsbad Village Drive, Carlsbad, ~ 92008, or via email to housing@carlsbadca.goy. The meeting with commence at 2 p.m. or as soon thereafter as the matter can be heard. For questions or more information, please con- tact Nicole Piano-Jones, Program Manager at nicole.pianojones@carlsbadca.gov or at ( 442) 339-2191. €ITY OF CARLSBAD COMMUNITY DEVELOPMENT BLOCK GRANT CITIZEN'S ADVISORY COMMITTEE PUBLISH: Friday, March 24, 2023 03/24/2023 CN 27472 May 9, 2023 Item #8 Page 40 of 48 The Coast News Decreed A Legal Newspaper by the Superior Court of San Diego County. Mail all correspondence regarding public notice advertising to: The Coast News P.O. Box 232550 Encinitas, CA 92023 (760) 436-9737 Proof of Publication STATE OF CALIFORNIA, ss. COUNTY OF SAN DIEGO, I am a citizen of the United States and a resident of the county aforesaid. I am over the age of eighteen years, and not a party to or interested in the above-entitled matter. I am principal clerk of the printer of The Coast News, a newspaper printed and published weekly and which newspaper has been adjudged a newspaper of general circulation for the cities of Carmel Valley, Del Mar, Solana I3each, Encinitas/Cardiff, Carlsbad, Oceanside, Rancho Santa, ·Fe, Vista, San Marcos, Escondido, San Diego, the County of San Diego and the County Judicial District by the Superior Court of the State of California, County of San Diego (8/4/94, #677114, B2393, P396); and that the notice, of which the annexed is a printed copy, has been published in, each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: December 30, 2022 I certify under penalty of pe1jury that the foregoing is true and correct. Executed at Encinitas, County of San Diego, State of California on this . 0th of December 2022. iv· Space above for Court Clerk's Filing Stamp CITY OF CARLSBAD NOTICE OF PUBLIC HEARING AND FUNDING AVARABILITY 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 S 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 Devel- opment (HUD). The City of Carlsbad is an entitlement community and receives CDBG funds directly hom HUD to address local community development needs. The City of Carlsbad requests participation hom 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-haWgrants-assistance/cdbg. For FY 2023-24, the City of Carlsbad anticipates an annual grant of $476,057; of which funds are estimated to lie 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 proposals for projects, ac- tivities, and programs. Applications will be available on the city website: https://www. carlsbadca.gov/city-hall/gpmts•assistance/cdlig. Completed application packages.J in- cluding required attachments, must be submitted prior, to Feb. 22, 2023. All community organizations are encouraged to submit a proposed project, or projects, for consider- ation 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 hearing via U.S. Mail to the attention of the City Clerk, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, or via email to clerk@carisbadcagov. Copies of the staff report will be available by Fri. Jan. 6, 2023, on the city's website: bttps://www. carlsbadca.gov/city-hall/meetings-agendas The meeting can be viewed online at~ www.carlsbadca.gov/city-hall/meetings-agendas or on the citys cable channel. For questions, or to obtain a copy of the staff repoi-t:1 please contact Housing & Home- less 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 COUNCll, 12/30/2022 CN 27237 CITY OF CARLSBAD HOMELESSNESS ACTION PLAN FY 2023-24 FUNDING PLAN Category Activity Provider GF CDBG HTF PLHA* HUD* FY 23-24 TOTAL FY 22-23 TOTAL Ou t r e a c h & C a s e Mg m t . Homeless outreach and case management Interfaith Community Services $315,000 $315,000 $315,000 Outreach & Case Management $315,000 $0 $0 $0 $0 $315,000 $315,000 Sh e l t e r La Posada de Guadalupe Catholic Charities Diocese of San Diego $200,000 $200,000 $194,000 Bridge to Housing Shelter Network Alliance for Regional Solutions $40,000 $40,000 $25,000 Women’s Resource Center Women’s Resource Center $10,000 $10,000 $10,000 Emergency pet boarding Humane Society $29,825 $29,825 $29,825 Motel voucher City of Carlsbad HHS $70,000 $70,000 $70,000 Motel voucher City of Carlsbad PD $30,000 $30,000 $30,000 Shelter $139,825 $0 $40,000 $200,000 $0 $379,825 $358,825 Ho u s i n g A s s i s t a n c e Housing navigation City of Carlsbad $36,000 $36,000 $72,000 $72,000 Carlsbad Service Center Interfaith $25,000 $25,000 Included below Emergency rental assistance Interfaith Community Services $58,823 $58,823 $25,000 Emergency rental assistance Community Resource Center $23,000 $23,000 $20,000 Rapid re-housing Community Resource Center $175,000 $175,000 $350,000 $350,000 Rental assistance Brother Benno’s $10,000 $10,000 $10,073 Rapid re-housing Not Yet Under Contract $468,252 $468,252 N/A Housing Assistance $221,000 $81,823 $61,000 $175,000 $468,252 $1,007,075 $477,073 Ex h i b i t 2 Ma y 9 , 2 0 2 3 It e m # 8 P a g e 4 1 o f 4 8 Exhibit 2 CITY OF CARLSBAD HOMELESSNESS ACTION PLAN FY 2023-24 FUNDING PLAN Category Activity Provider GF CDBG HTF PLHA* HUD* FY 23-24 TOTAL FY 22-23 TOTAL Be n e f i t s & Em p l o y m e n t Carlsbad Service Center Interfaith Community Services $180,000 $180,000 $204,217 Employment & Benefits Specialist Community Resource Center $140,000 $140,000 $140,000 Benefits & Employment $320,000 $0 $0 $0 $0 $320,000 $344,217 Ci t y S e r v i c e In f r a - st r u c t u r e Encampment and abandoned trash clean up Urban Corps $100,000 $100,000 $100,000 Portable restrooms Rocket Johns $25,000 $25,000 $25,000 City service Infrastructure $125,000 $0 $0 $0 $0 $125,000 $125,000 Ci t y St a f f Homeless Outreach Team City of Carlsbad PD $2,244,593 $2,244,593 $1,929,790 Homeless Services City of Carlsbad HHS $610,428 $610,428 $664,317 City Staff $2,855,021 $0 $0 $0 $0 $2,855,021 $2,594,107 $3,975,846 $81,823 $101,000 $375,000 $468,252 $5,001,921 $4,214,222 * The state Permanent Local Housing Allocation Program, a new funding source beginning FY 2023-24 (included in draft Operating Budget). NOTE: As of the date of this report, the Finance Department was still finalizing the FY 2023-24 Preliminary Budget. There may be minor changes made to the budget scheduled to be presented for City Council consideration on May 23, 2023. Ma y 9 , 2 0 2 3 It e m # 8 P a g e 4 2 o f 4 8 COMMUNITY DEVELOPMENT BLOCK GRANT FY 2023-24 FUNDING OPTIONS Organization Activity Anticipated outcome Requested Committee recommendation Staff recommendation PUBLIC SERVICES Brother Benno Rent/Utility Assistance/Motel Vouchers/Substance Abuse 40 persons $11,000 $5,000 $0 CDBG $10,000 General Funds Catholic Charities La Posada de Guadalupe Shelter 90 sheltered men $30,000 $5,000 $0 CDBG $30,000 PLHA Funding Community Resource Services Homelessness Prevention 30 households $71,408 $13,000 $23,000 CDBG Interfaith Community Services Rental Assistance, Emergency Support, Basic Needs 220 households $71,345 $43,823 $58,823 CDBG Meals-on-Wheels Senior Meal Delivery Service 78 households $10,000 $5,000 $0 CDBG Back-up project Women’s Resource Center Alternatives to Abuse Shelter 25 persons $10,700 $10,000 $0 CDBG $10,000 General Funds Subtotal: $204,453 $81,823 CDBG $81,823 CDBG ADMINISTRATION AND FAIR HOUSING City of Carlsbad Program Administration Overall administration $86,098 $85,098 $86,098 Legal Aid Society of San Diego Fair Housing Services 146 households $23,000 $12,000 $23,000 Center for Social Advocacy Fair Housing Services 95 households $25,000 $12,000 $0 Subtotal: $134,098 $109,098 $109,098 AFFORDABLE HOUSING AND FACILITY IMPROVEMENTS City of Carlsbad Affordable Housing Fund 75 rental units repaired $354,569 $354,569 $354,569 Subtotal: $354,569 $354,569 $354,569 TOTAL: $693,120 $545,490 $545,490 Ex h i b i t 3 Ma y 9 , 2 0 2 3 It e m # 8 P a g e 4 3 o f 4 8 Priority Projects – Program Income A maximum of 15% of all program income received during FY 2023-24 will be allocated to public services activities in the following order and amount: 1. Meals on Wheels - up to $10,000 2. Women’s Resource Center - up to $10,700 3. Brother Benno - up to $11,000 4. Catholic Charities - up to $30,000 5. Community Resource Center - up to $48,408 6. Interfaith Community Services - up to $12,522 Ma y 9, 20 2 3 It e m #8 Pa g e 44 of 48 RESOLUTION NO. 2023-006 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF THE HOMELESSNESS ACTION PLAN FUNDING PLAN AND THE HOUSING TRUST FUND EXPENDITURES THEREIN Exhibit 4 WHEREAS, the Carlsbad City Council adopted an updated Homelessness Action Plan on Feb. 7, 2023;and WHEREAS, the Homelessness Action Plan is structured to include high-level policy direction and strategies with resource needs presented each year and included in the city's annual budget; and WHEREAS, the funding plan determines the most appropriate funding source for each activity to ensure the most effective use of funding and maximize the impact of the activities within the Homelessness Action Plan. WHEREAS, the Housing Trust Fund expenditures in the funding plan are allowable and appropriate; and WHEREAS, the Housing Commission makes recommendations to the City Council on housing and homeless matters and Housing Trust Fund allocations. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1.The above recitations are true and correct. 2.That based on the information provided within the Housing Commission Staff Report, the Housing Commission adopts this resolution, recommending that the Carlsbad City Council approve the Homelessness Action Plan Funding Plan and the Housing Trust Fund expenditures therein. May 9, 2023 Item #8 Page 45 of 48 May 9, 2023 Item #8 Page 46 of 48 PASSED, APPROVED AND ADOPTED at a meeting of the Housing Commission of the City of Carlsbad on the 13th day of April, 2023, by the following vote, to wit: AYES: NAYS: ABSENT: ABSTAIN: Nguyen-Cleary, Manzano, Cole. None. Cortes-Torres, Ydigoras. None. J£:fad~£R~= CARLSBAD HOUSING COMMISSION ATTEST: Mandy Mills Housing & Homeless Services Director RESOLUTION NO. 2023-001 A RESOLUTION OF THE COMMUNITY DEVELOPMENT BLOCK GRANT CITIZEN ADVISORY COMMITTEE OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL APPROVE FY 2023-24 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AS RECOMMENDED WHEREAS, the Community Development Block Grant Citizen Advisory Committee of the City of Carlsbad, California held a noticed public meeting to obtain public input and review and consider applications for Community Development Block Grant funds; and WHEREAS, on Jan. 10, 2023, the City Council met and approved Resolution No. 2023-005 authorizing staff to solicit proposals for programs and projects not to exceed the estimated FY 2023-24 Community Development Block Grant award; and WHEREAS, applications were accepted for a period of approximately six weeks; and, WHEREAS, eight applications were received for public services and fair housing for a total of $252,453, which exceeded the estimated amount available; and WHEREAS, the Community Development Block Grant Citizen Advisory Committee has taken all testimony into account. NOW, THEREFORE, BE IT RESOLVED by the Community Development Block Grant Citizen Advisory Committee of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the City Council approve the allocation of Community Development Block grant funds for the following projects: Organization Program Amount Brother Benno's Rent/Utility Assistance/Motel $5,000 Vouchers/Substance Abuse Catholic Charities La Posada de Guadalupe Shelter $5,000 Community Resource Center Homelessness Prevention Carlsbad $13,000 Residents Interfaith Community Services Public Services-Rental Assistance, $43,823 Emergency Support, Basic Needs Legal Aid Society of San Diego Legal Aid $12,000 Meals on Wheels Public Services-Senior Meal Delivery $5,000 Service Women's Resource Center Public Services-Alternatives to $10,000 Abuse Emergency Shelter Program Center for Social Advocacy Fair Housing Program & $12,000 Tenant/Owner Services Exhibit 5 May 9, 2023 Item #8 Page 47 of 48 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Community Development Block Grant Citizen Advisory Committee of the City of Carlsbad on the 30th day of March 2023, by the following vote, to wit: AYES: Gish, Neigenfind, Rangus, Manzano. NAYS: May. ABSENT: Torio, Kamenjarin. ABSTAIN: None. l_�fZ� %DJ;__o>-3 KATHRYN RANGUS, CHAIRPERSON CDBG CITIZEN ADVISORY COMMITTEE ATTEST: Program Manager May 9, 2023 Item #8 Page 48 of 48 Tammy Cloud-McMinn From: Sent: To: Cc: Subject: Robert Stonebrook <stonebrook@roadrunner.com > Monday, May 8, 2023 12:44 PM City Clerk All Receive -Agenda Item# :fs> For the Information of the: -~JJY COUNCIL Date9:1.;2...3CA ..,,-cc ~ CM .r-ACM r DCM (3) .£_ Manager Internet Email; Priya Bhat-Patel; Melanie Burkholder; Teresa Acosta; Keith Blackburn; Carolyn Luna; Chris Shilling 5/9/2023 Input on Agenda Item 8: FISCAL YEAR 2023-24 HOMELESSNESS ACTION PLAN FUNDING PLAN Good afternoon Mayor, City Council, and Staff: My comments relate to the overall Homelessness Action Plan Funding Plan and not to the CDBG Annual Action Plan. The logical question for the Council to ask about the Homelessness Action Plan Funding Plan is: what are we getting for this amount? Are we budgeting to eliminate homelessness in Carlsbad or to accept there will be 50, 100, or more people living on our streets? This is the real choice for the Council and ultimately for the citizens of Carlsbad. Homeless Services can review HMIS data and should present to the Council how many people are in the system, what are the recent trends, and what is the near-term forecast. Based on that information Homeless Services should put forward estimated costs in each of the budget categories to ensure that homelessness is "rare, brief, and one-time" in Carlsbad. This gives the Council the transparency it needs to assess the trade-offs and make a sound budgeting decision. Anything less is not only irresponsible, but further exacerbates the on-going crisis. Council should also inquire whether we are supporting the broader North County region in this area. The San Diego Union Tribune ran a timely article this weekend looking at homeless shelters https://www.sandiegouniontribune.com/news/homelessness/story/2023-05-06/shelters-opening-but-who-will-they- serve . In this article, The CEO of the Regional Task Force for Homelessness cites the need for 150 to 230 more shelter beds in North County. Additionally, Alliance for Regional Solutions estimates there are more than 1,000 unsheltered individuals in North County. Is our budget in anyway supporting those efforts? This is not to say that Carlsbad needs to fund the homelessness response for all North County but certainly Homeless Services can lead the effort to improve results for the region. Please, take the time to review with Homeless Services what is to be expected from this spending. The Homeless Action Plan has no goals and the budget is now being presented with no context for whether homelessness in Carlsbad will be improved. Thanks for your time, Robert Stonebrook Carlsbad, CA CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content i safe. 1 Tammy Cloud-McMinn From: Sent: To: Cc: Rebecca Nussbaum <RNussbaum@crcncc.org > Tuesday, May 9, 2023 1:17 PM City Clerk Nicole Piano Jones; Chris Shilling All Receive -Agenda Item# .J:?. For the Information of the: ,Slf! COUNCIL DatemJ2:, CA L CC ...-- CM ✓ACM ✓ocM (3) .....,..- Subject: Item 8-Homelessness Action Plan Funding and Annual Action Plan for the CDBG Program Attachments: Item 8_Homelessness Plan Carlsbad City Council 5.9.23(1).pdf To whom it may concern: Please accept this letter of support on behalf of Community Resource Center for Agenda No. 8 of the May 9th City Council meeting. Please let me know if you have any questions. Warmly, Rebecca Nussbaum Chief Program Officer I Community Resource Center 0. {760) 230-6318 LGBTQ & Child Safe Zone Pronouns: She/Her/Hers Providing healthy food, stable homes & safe relationships since 1979. CONFIDENTIALITY NOTICE: This electronic message, together with its attachments, if any, is intended to be viewed only by the individual to whom it is addressed. It may contain information that is privileged, confidential, protected health information and/or exempt from disclosure under applicable law. Any dissemination, distribution or copying of this communication is strictly prohibited without our prior permission. If the reader of this message is not the intended recipient or if you have received this communication in error, please notify us immediately by return e-mail and delete the original message and any copies of it from your computer system. CAUTION: Do not open attachments or click on links unless ou recognize the sender and know the content i 1 Date: To: From: Subject: Program ~CRC COMMUNITY RESOURCE CENTER May 9, 2023 Carlsbad City Council Rebecca Nussbaum, Chief Program Officer Community Resource Center 760-230-6318 rnussbaum@crcncc.org Item 8-Homelessness Action Plan Funding and Annual Action Plan for the CDBG Dear Mayor and City Councilmembers, On behalf of CRC and the people we serve, I am writing to support the FY 2023-24 Homelessness Action Funding Plan and the approval of the FY 2023-24 Community Development Block Grant Annual Action Plan with staff recommendations. With a clear goal to . reduce homelessness and its impact on the local community, the funding plan outlined addresses the programs and initiatives that are aligned with meeting that goal. Carlsbad Housing and Homelessness Services staff have been diligent and resourceful to identify and secure new funding streams (PLHA and federal rapid re-housing) that will amplify the work to address homelessness locally. This funding will allow for further collaboration and coordination of services to quickly house unsheltered Carlsbad residents. In addition, CRC is supporting the FY 2023-24 Community Development Block Grant Annual Action Plan with staff recommendations. CDBG funding is limited and heavily regulated, with weighty reporting and monitoring requirements. Funding fewer agencies from CDBG dollars will increase efficiency and reduce the reporting burden for all. I want to acknowledge the investment and the commitment of you as local leaders to reduce homelessness for Carlsbad residents and community. Thank you for your service to our . community. Warm regards, Rebecca Nussbaum Chief Program Officer 650 2nd Street, Encinitas, CA 92024 • (760) 753-1156 • crcncc.org Community Resource Center is a 501 (c)(3) charitable tax-exempt organization; Tax identification #95-3497926 Tammy Cloud-McMinn From: Sent: To: Subject: Mayor, Council, and Staff, Teri Jacobs <tjacobs86@pacbell.net> Tuesday, May 9, 2023 1 :42 PM City Clerk Agenda Item 8 Our 2022 PIT count was 118. As of February 2023 68 have been housed according to the last Homeless Action Plan. 2023 PIT count should show a dramatic decrease if we use those numbers. How many individuals are homeless in Carlsbad? How can we allocate general funds and grant monies (which are our tax dollars as well) to a problem that we cannot accurately articulate? There are always strings attached to any grants received and as we allocate funds to organizations are we confident that they are helping our homeless population in the most effective manner? Every homeless person has a story ... yet we continue to look-at the Housing First model as the only solution to solve homelessness. Regards, Teri Jacobs Carlsbad Resident Dist 1 Sent from my iPad CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 1 TO: CITY CLERK AFFIDAVIT OF MAILING NOTICE OF PUBLIC HEARING DATE OF PUBLIC HEARING : 6 / 9 u~ SUBJECT: C__1:)b G-, 1='1 dOd--3--8 i QpL,o Pla.L) LOCATION: ~00 Carlsbad Village Drive, Carlsbad, CA 92008 D Other: ------------------ . DATE POSTED TO CITY WEBSITE '-/// D / cJD ,Q 3 DATE NOTICES MAILED TO PROPERTY OWNERS: ------------ NUMBER MAILED: ·- I declare under penalty of perjury under the laws of the State of California that I ~m employed by the City of Carlsbad and the foregoing is true and correct. DEPARTMENT: [3'ci'TY CLERK'S OFFICE □OTHER_· ______ _ ,jfilm-~tVd Signature Date SENT TO FOR PUBLICATION VIA E-MAIL TO: ~ Union Tribune on ___ _ ~Coast News on tj/m PUBLICATION DATE: Union Tribune -------------- Coast News Lf/ 7/4,D;i 3, 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: G}t!TY CLERK'S OFFICE □ OTHER _______ _ Signature Date Attachments: 1) Mailing Labels 2) Notice w/ attachments NOTICE OF PUBLIC REVIEW AND PUBLIC HE~RING NOTICE IS HEREBY GIVEN, that the City Council of the City of Carlsbad will hold a public hearing at the Council Chamber located at 1200 Carlsbad Village Drive, Carlsbad, California on Tuesday, May 9, 2023, at 5 p.m. for the city's Community Development Block Grant (CDBG) program Fiscal Year (FY) 2023-24 (July 1, 2023 -June 30, 2024) Action Plan. The City of Carlsbad will release the draft FY 2023-24 Annual Action Plan for a 30-day public review period beginning on Monday, Apr. 10, 2023, and ending on May 9, 2023. 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. For FY 2023-24, the City of Carlsbad will receive an annual entitlement grant of $545,490. The draft FY 2023-24 Annual Action Plan describes the proposed projects and programs to be funded. Beginning on Monday, April 10, 2023, the draft FY 2023-24 Annual Action Plan will be available for 30-day public review on the city's website: https://www.carlsbadca.gov/city-hall/grants- assistance/cdbg. 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 hearing via U.S. Mail to the attention of the City Clerk, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, or via email to clerk@carlsbadca.gov. Copies of the staff report will be available by Friday, May 5, 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/residents/communication/city-tv- channel or on the city's cable channel. To submit comments, 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, April 7, 2023 CITY OF CARLSBAD CITY COUNCIL